tag:blogger.com,1999:blog-63122950918630856092024-02-18T21:17:17.021-08:00InsightsAnonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.comBlogger53125tag:blogger.com,1999:blog-6312295091863085609.post-24955671810604511122014-01-05T07:09:00.000-08:002014-01-05T07:09:21.048-08:00Who is qualified to succeed Sanusi Lamido Sanusi as CBN Governor? <div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">As the current governor of the Central Bank of Nigeria (CBN)
prepares to take his exit by May (2014) ending, various names have come up as
potential replacement. It is important
to state that the position of a CBN governor is not a ceremonial position. It is
a position of huge significance to the wellbeing of every Nigerian. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYSz88IGKmqqvummvWooczweX4v-6az0BXjtFGM4CFDPjEk9__UgS8rpp8l1Ha4aZ9z9eJ-dldE9zHxUOMnJJbrLiUeqs6ikzjrk58gQIzGplPi-6w304kkUejBI9rQGGXPv1kipbLlGE/s1600/lamido-sanusi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYSz88IGKmqqvummvWooczweX4v-6az0BXjtFGM4CFDPjEk9__UgS8rpp8l1Ha4aZ9z9eJ-dldE9zHxUOMnJJbrLiUeqs6ikzjrk58gQIzGplPi-6w304kkUejBI9rQGGXPv1kipbLlGE/s1600/lamido-sanusi.jpg" height="320" width="208" /></a></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">The CBN governor holds the economy of the nation in his/her
hands. The President of the country is often blamed when the economy is bad,
but the man or woman that should get a good chunk of the stick for a bad
economy is the governor of the Central Bank. His or her actions and inactions
have a life and death hold on the Nigerian economy. By manipulating the cost of
money in the economy, he or she can create wealth or destroy wealth. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">In Nigeria, the governor is often (over) identified with bank
regulation than his or her core function of price stability. So it is not
surprising, that often when the position of the Central Bank governor comes up,
practicing or retired bankers are touted as the likely candidates to pick up
the position. Charles/Chukwuma Soludo seems to have been the obvious exception.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">So as President Jonathan prepares to make a decision on who
should head the CBN starting June 2014, the BIG question is what should be the
ideal qualifications of the CBN Governor? In answering this question, I have
decided to examine the profiles of the people that some countries selected recently
to lead their Central Banks in key
economies around the world. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-size: 12.0pt; line-height: 115%;">United States of
America (USA)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Last year, President Obama nominated Janet Yellen to head its
Federal Reserve Bank, which is the equivalent of Nigeria’s Central Bank.
Yellen, has a PHD in Economics. Her brief profile reads like this. </span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVFqxvPEqF9nsPg77lFCaFyI5ygwpff9gflCc5y4-MGCVLcqbdHYyPZnj70WXmtArOi8HSocJyoSYH3JLizXoNufZE8iG8NKc6oT0XJqy1ZPa8iQkyB0l3KTNiVo-e2QeCdZfNONV44Gc/s1600/Janet_Yellen_official_portrait.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVFqxvPEqF9nsPg77lFCaFyI5ygwpff9gflCc5y4-MGCVLcqbdHYyPZnj70WXmtArOi8HSocJyoSYH3JLizXoNufZE8iG8NKc6oT0XJqy1ZPa8iQkyB0l3KTNiVo-e2QeCdZfNONV44Gc/s1600/Janet_Yellen_official_portrait.jpg" height="320" width="256" /></a></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"> Born in
Brooklyn, New York, in 1946, Janet Yellen earned a bachelor's degree from Brown
University in 1967. She then went to Yale University, where she received her
Ph.D. in 1971. After completing her Ph.D., she spent several years as an
assistant professor at Harvard University, moving from there to work at the
Federal Reserve from 1977 to 1978, and then became a professor at the
University of California, Berkeley. From 1997 to 1999, she served on the White
House Council of Economic Advisers, and in 2004, she became President and CEO
of the Federal Reserve Bank of San Francisco. In 2010, Yellen was selected to
serve as vice chair of the Federal Reserve Board of Governors.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Over her lengthy career, Yellen has penned numerous papers
and publications, including some co-authored with her husband, Nobel
Prize-winning economist and UC Berkeley professor George Akerlof. She has also
received numerous accolades for her contributions to the field of economics.
She served as a Guggenheim Fellow in the mid-1980s, and received the Wilbur
Lucius Cross Medal from Yale University in 1997.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-size: 12.0pt; line-height: 115%;">Israel <o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">October 2013, Israel also appointed a woman, Dr. Karnit Flug
to head Bank of Israel which is also the equivalent of Nigeria’s Central Bank.
Flug has her doctorate at Columbia University and served as an IMF economist
before joining the Bank of Israel in the 1980's.<o:p></o:p></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgx5VzfmQ4lDSSuO1_ndvlRJn3r-_3KTRqAiqSj0SvTlLbdufHXr4JMvtBnVoSNcAkLS8Q9CdSzVW1ATUQ3eg57bz6xYW02t0h4cXA7slQA4kVdWd3ebyTnHdzpq9o8NjvFz-OyikX12Vg/s1600/Karnit-Flug-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgx5VzfmQ4lDSSuO1_ndvlRJn3r-_3KTRqAiqSj0SvTlLbdufHXr4JMvtBnVoSNcAkLS8Q9CdSzVW1ATUQ3eg57bz6xYW02t0h4cXA7slQA4kVdWd3ebyTnHdzpq9o8NjvFz-OyikX12Vg/s1600/Karnit-Flug-2.jpg" height="160" width="320" /></a></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Flug completed her doctorate at New York's Columbia
University and worked at the International Monetary Fund as an economist and
later as a senior research economist at the Inter-American Development Bank. She
was appointed director of the research department at the Bank of Israel in
2001.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-size: 12.0pt; line-height: 115%;">United Kingdom <o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">In 2013, the British government tapped a Canadian, Mark
Carney, to head the Bank of England, which is also the equivalent of Nigeria’s
Central Bank. He was actually the Governor of the Bank of Canada where he
served five years of seven term tenure before emerging the governor the of Bank
of England. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_rMH-6jlouSTuuneEtaK-3OE1J-1N4Kl3_ddQ4xkZdXQtrtUDCrpWiPDjbTWvq6OuZuylmn44n4H7W5C_eIjHg9gR_XahBYJKx3OjAe6h5JBd-kRitl_-COuz_SnThr1lyHmeU0doDmM/s1600/Mark_Carney_World_Economic_Forum_2013_(3).jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_rMH-6jlouSTuuneEtaK-3OE1J-1N4Kl3_ddQ4xkZdXQtrtUDCrpWiPDjbTWvq6OuZuylmn44n4H7W5C_eIjHg9gR_XahBYJKx3OjAe6h5JBd-kRitl_-COuz_SnThr1lyHmeU0doDmM/s1600/Mark_Carney_World_Economic_Forum_2013_(3).jpg" height="311" width="320" /></a></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Mark Carney has a Barchelors Degree in economics from Harvard
University and crowned it with a Masters Degree and Doctorate in Economics from
Oxford University. He is largely credited for protecting the Canadian economy
from the 2007 global financial crisis. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Carney has served as Chairman of the Financial Stability
Board (FSB) and as a member of the Board of Directors of the Bank for
International Settlements (BIS). He has been instrumental in leading economies
to introduce and coordinate a raft of new financial regulations. Carney is also
a member of the Group of Thirty, and of the Foundation Board of the World
Economic Forum. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-size: 12.0pt; line-height: 115%;">Ghana<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">In 2013, the Ghanaian government confirmed Dr. Henry Kofi
Wampah as head of the Central Bank, Bank of Ghana. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuWyGDOkaeinNTILfeuRThw7Fm9OPmaLvG224s6fUBlItmerhHGDuqAeP1z-96yo7tPSgbU0QsBsbaH0W3W6T7aX383NSZPAGuiiBeKY3c1ulWu8It04ejLyNL4g-aRLdQiTZEJ5MyB_Y/s1600/wampah.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuWyGDOkaeinNTILfeuRThw7Fm9OPmaLvG224s6fUBlItmerhHGDuqAeP1z-96yo7tPSgbU0QsBsbaH0W3W6T7aX383NSZPAGuiiBeKY3c1ulWu8It04ejLyNL4g-aRLdQiTZEJ5MyB_Y/s1600/wampah.jpg" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Prior to his appointment at the bank, Dr. Wampah was the
Director of the Research and Statistics Department at the West African Monetary
Institute. He also worked as the Head of the Research Department of Bank of
Ghana from February 1996 to February 2001, as well as working with the
International Monetary Fund. Dr Wampah holds a Masters Degree and a Ph.D in
Economics from McGill University, Montreal CANADA.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Common in these profiles is the strong academic
qualification in economics of all the appointees. But it is not just the qualification,
but also the extensive experience in the field of economics in and outside
academics. My take is that it is important a Central Bank Governor has a deep
understanding of economics because his or her primary duty is the economy. A
Nigerian Central Bank Governor should not be less qualified both academically
and in practical experience if we want to compete in a global world. <o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-39474127896827179852013-02-24T02:09:00.002-08:002013-02-24T02:09:57.521-08:00Where do Nigeria’s “drop out” students go? <br />
<div class="MsoNormal">
Every year about 600,000 Nigerians are born who never get
the chance to step into a classroom.
These Nigerians represent about 10% of the six million that get into the
world through the Nigerian birth route. <o:p></o:p></div>
<div class="MsoNormal">
Of the remaining that steps into the classroom many never
get the chance to walk into the four walls of a tertiary institution. The story
of these missing students in the school ladder is one of the interesting
findings in the report “Nigeria’s Human Capital Challenges: Insights from HR
Professionals” recently published by BusinessDay Research. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVTMx-hckIZ15M5FOxM7kT30-XkzkiGBUu8-ykE_D3t_DvniVnQRHNO2fNMLfbaOGpo3apoY83zZoPVrzIU-QB-BM5wgDMbebMNzuxv3trsALbCbUSkB8J-06Eu1HSMiVlk9RipPxlbsw/s1600/Ruqayyatu-Rufai.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVTMx-hckIZ15M5FOxM7kT30-XkzkiGBUu8-ykE_D3t_DvniVnQRHNO2fNMLfbaOGpo3apoY83zZoPVrzIU-QB-BM5wgDMbebMNzuxv3trsALbCbUSkB8J-06Eu1HSMiVlk9RipPxlbsw/s1600/Ruqayyatu-Rufai.jpg" height="240" width="320" /></a></div>
<div class="MsoNormal">
Ruqayyatu Ahmed Rufa'i-Minister of Education </div>
<div class="MsoNormal">
Data obtained from the National Bureau of Statistics (NBS)
shows that an average of 20 million students are enrolled in public primary
schools in any school year in Nigeria. This comes to an average of 3.3 million
students per level, knowing that we have a six year school ladder at the
primary school level. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At the secondary school level however, this figure drops
dramatically to an average of five million students enrolled or about 833,000
per level since we also have a six year school ladder at the secondary school
level. This means of the 3.3 million that enrolled at the Primary School level
in any particular year, just an average 833,000 eventually made it to the
secondary school level in any particular year implying an average drop-out rate
of about 2.47 million per annum or 75% between primary schools and secondary
schools in Nigeria. Over a six year cycle, this could translate to about 15
million students out of the school system, assuming this figures remain
unchanged. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The figures from the NBS shows that on the average only
about 700,000 students get enrolled in all Nigerian universities in any year.
Giving an average of four years study period in Nigerian universities, this
implies an average of 175,000 students at any level. Another 600,000 are enrolled in polytechnics
and colleges of education in any year. There is also an average of four year study
period in our polytechnics, so this translates to an average 150,000 students
at any level implying that of the average of 833,000 ready for tertiary
education in any year, only about 39 percent actually enrol in any tertiary
institution in any particular year. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The question then arise what happens to the about the three million
students every year that got some taste of primary and secondary school
education but never crown it with a passage through any of Nigeria’s tertiary
institutions. The first obvious choice would be for these students who drop out
of the educational system to join the vocational education system. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The challenge however is that, though the vocational
education institutions exist in Nigeria, they are poorly equipped and lack well
trained manpower. The report shows that Nigeria currently has 132 technical
colleges and 70 vocational enterprises, but most are understaffed with obsolete
facilities. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Perhaps, the strongest evidence that Nigeria’s vocational
institutions are not worth much is the fact their graduates experience the
highest unemployment rate among any group of graduates in Nigeria. The
unemployment rate for those who have attended any form of vocational school in
Nigeria stood at 28.9% in 2011, according to NBS data. This is higher than the
unemployment rate for those who never attended any form school, which stood at
22.4% and higher than those who attended primary school, which is put at a low
21.5%. This seem to indicate Nigerians who never attended any form of school or completed just
primary school, has a better chance of being employed than the Nigerian who
obtained a vocational education. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The national impact of the weak vocational education option for
Nigerians who drop out of the educational system is the low quality of
vocational and technical skills in the country. This is the reason we have auto
mechanics without mechanical skills, brick layers that cannot lay bricks,
painters that cannot paint, and many more basic skills that are lacking in the
country. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
It is the reason behind why most Nigerians would prefer
artisans from Ghana, Togo and Benin republic than artisans from Nigeria. As the
report notes, most artisans in Nigeria do not learn their trade in any formal
environment. They learn from other artisans who have also learnt from other
artisans. There is no science in the learning. It is learning by the “rule of
the thumb.” The implication is that false concepts are passed on from one
generation of artisans to another to the detriment of the consumers or
customers. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Nigeria’s “Okada” phenomenon is also largely a symptom of
these high numbers of missing students with little options. With no skill or
poor marketable skills, many of these Nigerians have had to turn to Okada
(commercial bikes) to make a living. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What emerges clearly is the need for an urgent reform of the
vocational education system in the country. Nigeria cannot continue to have
this number of its citizens just roaming the streets without the required
skills to survive in a modern world. It
has critical implication for the security situation in the country and most
importantly for economic growth. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Global trends show that increasingly, a country’s
competitive advantage does not lie in its natural resource endowment but in the
quality of its manpower. Quality manpower is able to innovate, improve
efficiency and therefore hasten economic growth. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Where the quality of a country’s manpower is low, the
country is forced to either import manpower from other countries or suffer low
productivity or even zero productivity in the sectors where it lacks manpower.
Low quality manpower also leads to high levels of unemployment due to the
general low productivity and lack of innovation that takes place in such an
economy. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Sadly, there is no evidence that the Nigerian government
realizes the sense of urgency or the magnitude of the manpower challenge it
faces. Until it realizes and makes the urgent reforms in the educational
system, manpower will remain the biggest challenge to realizing Nigeria’s
economic potential. That essentially is what the BusinessDay Research report
shows. </span><br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span>
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">This article was first published in BusinessDay. </span>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-51128216789600641462012-11-04T03:37:00.000-08:002012-11-06T03:28:01.712-08:00The political intrigues in Nigeria’s oil sector probes <br />
<div class="MsoNormal">
Ribadu's choice to head the Presidential Task force on
Petroleum Revenue was controversial as some members of the civil society felt
an unpopular President was trying to win popular support on the credibility of
the well-respected former anti-corruption fighter. Ribadu has lived up to his profile with the controversy his report has
generated, first with the way to report was leaked to the media ahead of its
release and the open disagreement among his committee members on Friday when the report
was submitted to the President. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s1600/goodluck_1636002c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s320/goodluck_1636002c.jpg" width="320" /></a></div>
<div class="MsoNormal">
President Goodluck Jonathan. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The leakage of the Ribadu report was actually what forced
President Goodluck Jonathan to personally request that the Ribadu committee
report and two other committees that have had their report ready but have been unable
to submit to the Minister of Petroleum Resources who set up the committees, hand in their reports to him personally. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The three different committees besides The Ribadu Special Task
Force on Petroleum Revenue are the Dotun Sulaiman Committee on good governance
and global best practices in the NNPC and the Kalu Idika Kalu committee on the
nation’s refineries. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The report of the three committees have been hanging in the
Minister’s office for several months
after the committees finished their reports without any clear idea of when they
will be able to submit to her officially. <o:p></o:p></div>
<div class="MsoNormal">
The Minister was apparently reluctant to receive the
reports of the three different committees set up to probe and make
recommendations on various aspects of the Nigerian petroleum industry. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
But the leakage of the Ribadu Task Force report to the media
triggered the President into damage control mode forcing him to accept the
report of the committees which high level intrigues were in process to
undermine their recommendations. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s1600/Diezani-Allison-Madueke%255B1%255D.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s320/Diezani-Allison-Madueke%255B1%255D.jpg" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
Diezani Allison Madueke, Nigeria's Minister of Petroleum Resources</div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="MsoNormal">
The expectation is that the recommendations of the
committees if implemented by the President will significantly change the
current power structure in the oil and gas industry forcing out entrenched
interests that have fed fat on the current anomalies in the sector. It is these
entrenched interests in the Ministry and the Nigerian National Petroleum
Corporation (NNPC) that are doing everything in their powers to ensure that the
committees report do not see the light of the day or are discredited.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Though the current uncertainty in the oil and gas sector is
holding back billions of dollars of new investments, entrenched interests in
the sector are basically not bothered since the uncertainty favours their continuous rape of the sector. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The current
challenges in the sector revolve mainly around the desire of the Petroleum
Minister and top executives of the NNPC to remain the power brokers in the
sector despite clear signals that the best way to go for the oil sector is less
of government interference, proper regulation of the oil sector and a clear
business plan for running the Nigerian National Petroleum Corporation (NNPC)
and its various subsidiaries. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The power play has not only stalled the outcome of the various committees
set up by the President and Minister in response to last January’s protest and
call of the reform of the Nigerian oil sector but also the Petroleum Industry Bill
(PIB) currently before the National Assembly may have fallen victim of these
intrigues. The current PIB before the National Assembly is not the same as that
prepared by the Udo Udoma committee set up by the President to draft PIB,
sources familiar with the original recommendations of the committee say. The
final report got to the national assembly without the knowledge of the
committee, sources say. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Critical recommendations of the committee, like a more
independent Department of Petroleum Resources (DPR), which would have seen the
emergence of a strong autonomous regulatory body for the oil industry was
watered down resulting in the recommendation of two weak regulatory bodies, one
for upstream and another for the downstream and stronger control by the
Minister of Petroleum Resources in the draft bill before the National Assembly.
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
“The boards of the two regulatory bodies have just been
reduced to that of budget proposal and implementation. They have no real
powers” said an oil industry source. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Also recommendations that removed most of the discretionary powers
of the Minister in the Oil and Gas sector were ignored for more discretionary
powers by the Minister. The implication
is the PIB which would have seen the emergence of a more business oriented NNPC
has not materialized in the current PIB. <o:p></o:p></div>
<div class="MsoNormal">
The second committee, the Kalu Idika Kalu committee has also seen the
Minister acting contrary to its recommendations concerning the refineries. The
committee had recommended that the way forward was for the nation’s refineries
to be sold and that if any Turnaround Maintenance (TAM) were to be done at all
before the sale, it should not cost more than $500 million, sources say. The
Minister of Petroleum Resources has however moved to repair the refineries at a
cost of $1.6 billion well above the committee’s recommendation. It is also
understood that the Minister may have delayed receiving the report of the
committee. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Sources also say the Ribadu Committee was leaked to the
media after several efforts to officially present the report to the Minister
failed. Even after the report was leaked in the media, the Minister came out
questioning sections of the report stating that the government is still
studying the report. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
A look through the Ribadu report however shows that the NNPC
and the Ministry were actively contacted throughout the process of preparing
the reports and their reaction to all the issues raised incorporated into the
report. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
A third committee, the Dotun Sulaiman Committee charged with
designing a new corporate governance codes for ensuring full transparency, good
governance and global best practices in the NNPC and other oil industry
agencies was completed months ago but
the committee was unable to officially present it to the Minister. The
committee’s recommendation will essentially see a more independent NNPC with
less control from the Minister’s office; say sources that have seen a copy of
the report. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
A common thread running through the reports of all the
committees’ set up to probe the power
sector is the needed for transparency and less government interference in the
sector, say sources that have seen the reports. This will significantly reduce
the influence of the Minister and ensure a more properly regulated oil
industry. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
“What we envisaged with the current reform in the oil industry
is a more independent regulatory role for the DPR like the National
Communication Commission (NCC) in the Telecoms sector and the Nigeria
Electricity Regulation Commission (NERC) in the electricity sector.
Unfortunately, that is not what we are getting” a second source in the oil
industry said. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The challenge with the current oil industry reforms is that
NNPC and the Ministry has been left to lead the reforms. It is like asking the
Power Holding Company of Nigeria (PHCN) to lead the reforms in the electricity
sector or asking NITEL to lead the reforms of the telecommunications sector.
They would have just used the process to entrench themselves in the sector
rather than pursuing meaningful reforms that will lead to growth of the sector.
That is what the NNPC is doing, said an operator in the oil industry. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<o:p>Apparently, the reports were meant to die in the process flow but that has failed. Now that the recommendations are in the public, hopefully the President will be bold enough to implement the recommendations. </o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<o:p> A slightly different version of this article was published in <a href="http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/46962-jonathan-caught-in-oil-committees-report-web">BusinessDay </a></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-44943620684482550952012-10-09T15:24:00.002-07:002012-10-09T15:24:59.492-07:00 Nigeria: the debate should not be about an oil benchmark but fading oil power <br />
<div class="MsoNormal">
Nigeria still remains the dominant crude oil producer in the
West African region, but the country has clearly lost its monopolistic claim of
being the sole producer in the region. All around West Africa, new crude oil
reserves are being discovered almost on a monthly basis. Ghana, Ivory Coast,
Chad, Mauritania are among the few West African neighbours where crude oil in
commercial quantities have been discovered in the last few years. In 2010 and
2011, commercial quantities of crude oil were discovered in Sierra Leone,
Ghana, Niger, Cameroon, Gabon, and Angola.
<o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s1600/Diezani-Allison-Madueke%255B1%255D.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s320/Diezani-Allison-Madueke%255B1%255D.jpg" width="320" /></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Diezani Allison Madueke-Nigeria's Minister of Petroleum Resources </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Discoveries have already been confirmed in Liberia, while
explorations are on-going in Togo, Mauritania and even Benin republic. The West
African Coast has become a crude oil coast with significant discoveries and
more expected. Outside West Africa, East Africa, especially Kenya and Uganda
are all positioned to become major producers of crude oil within the next one
to two years. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
With proven crude oil reserves of about 36 billion barrels,
Nigeria is like a giant compared to its neighbours in the crude oil store but
then Nigeria also has the largest mouths to feed compared to its African
neighbours. Angola has a population of about 18 million but with proven crude
oil reserves of about 13 billion barrels, an average of 722 barrels per head.
Nigeria on the other hand has a population of about 160 million with proven
reserves of 36 billion, an average reserve of 225 barrels per head. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
So Nigeria has more reserves but it has more mouths to feed
and therefore should be prudent in managing the revenues that come from those
reserves. That, however, seem not to be the case with the constant bickering
between the National Assembly and the Presidency over an appropriate benchmark
price for crude oil revenues rather than an appropriate beyond oil strategy. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
With the increasing discovery of crude oil reserves all over
Africa, Nigeria’s proven reserves buried underground are becoming less
valuable. Simple economics teaches us that the more the quantity of any
commodity, the less the price. With increasing number of countries joining the
crude oil producing club, and most of these countries having more crude oil
than they actually need, not only does it reduce the number of countries that
Nigeria can sell crude oil to, but also increases the number of countries in
the market to sell crude oil. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The oil outlook looks even bleaker when the fact that the US
is increasingly becoming less dependent on external crude oil is thrown in. The
Energy Information Administration (EIA), the US agency which provides data on
US energy consumption notes that only 45% of petroleum consumed in the United
States were imported in 2011, the lowest since 1995. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The EIA gives different reasons for the decline in US
consumption of foreign crude oil. The reasons include, the economic downturn
after the financial crisis of 2008, improvements in efficiency, changes in
consumer behaviour and patterns of economic growth, increased use of domestic
biofuels (ethanol and biodiesel), and strong gains in domestic production of
crude oil and natural gas plant liquids, expanded domestic supplies and reduced
the need for imports. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Efficiency, changes in consumer behaviour, substitution of
petroleum products with biofuel and increased crude oil production in the US
are permanent changes that will likely see the world’s largest consumer of
crude continue reducing its consumption of the product. There are analysts who
expect the US to eventually become a net exporter of crude oil soon maybe as
early as 2013. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In 2011, Nigeria supplied just 10% of US crude oil needs
compared to an average of 20% a few years ago. China and other Asian countries
have moved in to fill the drop in demand from the US, however, with potential
supplies coming from many other sources, the natural trajectory for future
crude oil prices is a downward spiral. Many agree that tensions in the Middle
East accounts largely for current price levels. <o:p></o:p></div>
<div class="MsoNormal">
But while the dynamics of the crude oil environment is
changing fast, Nigerian leaders seem stuck in lethargic past unable to take the
necessary steps to take maximum advantage of its current crude oil resources or
diversify its economy from over dependence on a volatile product.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Nigerian leaders seem not to be reading the writing on the
wall. Current crude oil prices, which bring in 80% of government revenues, are
not sustainable in the very short term. There are analysts estimating that a
steep fall is likely very soon with projections that it may fall as low as US$
30. True. There are alternative forecasts that even see crude oil prices rising,
fuelled by demand from China and India assuming both countries sustains their
current economic growth rates. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
But the uncertainty over the future direction of crude oil
prices certainly makes it a slippery platform for Nigeria to continually benchmark
its economic future. There is an urgent need for a post oil boom strategy. Any
sustained drop in crude prices, as it happened in 2008, when prices dropped to
as low as US$ 40 per barrel, would certainly plunge the country into a
financial crisis with current external at US$41 billion reserves able to cover
export for just eight months and portfolio investments in Nigerian bonds
reaching significant levels. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The debate that Nigerian leaders should be having should not
be about an appropriate crude oil benchmark but a debate about the best
strategy to diversify the Nigerian economy from its over dependence on oil
revenues and what incentives should be in place to maximize our current crude
oil and gas reserves before they become less valuable commodities in
international trade. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
first published in BusinessDay of October 09, 2012</div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-66355702585409235052012-09-15T07:13:00.000-07:002012-09-15T07:13:12.767-07:00The lost memo on banning foreign medical trips for Nigerian public officers<br />
<div class="MsoNormal">
<span style="font-size: large;">In April, Nigeria’s Minister of Health, Professor Onyebuchi
Chukwu made a <a href="http://www.vanguardngr.com/2012/04/fg-to-ban-foreign-medical-trips/">bold announcement </a> that he is considering sending a memo to the
Federal Executive Council (FEC) meeting to ban public officers going abroad for
medical treatment. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s1600/goodluck_1636002c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s320/goodluck_1636002c.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-size: large;">President Goodluck Jonathan </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">It is not clear if this memo was ever sent to the FEC. Perhaps, next time the media meets with the
honourable Minister, they have to remind him of his lost memo. Hopefully, he
will not be embarrassed answering the question considering the President’s wife
is currently said to be on a medical trip abroad. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Obviously, despite billions spent, the health facilities in
Aso Rock are still not comparable to health facilities in Germany, Saudi Arabia
and all the other places staff and residents of Aso Rock fly to at the
slightest sign of head or belly ache. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">In the last five years, from 2008 to 2012, a total of N4.15
billion has been spent by the Presidency to provide healthcare facilities in
Aso Rock. Going by the nature and amount
of expenditure, the State House Medical Centre (SHMC) should be one of the best
equipped hospitals in the world. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Drugs and medical supplies bought for the SHMC in Aso Rock
consumed N1.69 billion in the last five years. In this year’s budget, the
Presidency made a provision of N314 million for drugs and medical supplies.
This was just 21% below the N402 million spent in 2011. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The presidency also spent N901 million purchasing different
medical equipment in the last five years. The SHMC should be one of the best equipped
medical centres for dialysis, considering the items bought in the last five
years. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">In 2008, for example, the Presidency spent about N6.8
million on the provision of a dialysis centre. It also spent N127 million on
procurement of equipment for a medical laboratory, dental laboratory,
physiotherapy, pharmacy, surgical, O&G, paediatrics, and ophthalmology. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The 2012 budget shows that the presidency spent about N93
million on a Dialog+Haemodialysis machine with an option for automatic blood
pressure measurement. It also bought a Diapact CRRT (whatever that means), an acute
dialysis machine, a modular one water reverse osmosis system (for up to 10
dialysis machine with pre-treatment) a comfort therapy dialysis chair, and a bedside
table for dialysis chair<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Presidency also spent some money on a central sterilizing
building for the State House Medical Centre and also bought a magnetic resonance
imaging machine, and converted an existing mortuary(?) into an MRI room, offices,
conveniences, medical records and common room for its medical officers. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But while the State House Medical Centre has been equipped
with the state of the art medical facilities, which unfortunately fail to meet
the medical needs of its exotic occupants, the non-exotic Nigerian on the
street is faced daily with poorly equipped hospitals plagued by strikes from
frustrated medical personal and lack of drugs. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">While rich Nigerians can afford a trip abroad to take care of
their headaches and other medical issues, the many poor die daily from commonly
preventable diseases. Life expectancy in Nigeria at 48 years ranks among the
lowest in the world, comparable only to war torn countries. The chance of a
child born in Nigeria celebrating his fifth birthday is one of the lowest in
the world. The Nigerian child is seven times more likely to die before the age
of five than an Egyptian Child and twice more likely to die than a Ghanaian
Child. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Nigerians, who can afford it, spend an average of $200 million
yearly travelling abroad to seek medical treatment. Basically, they are
spending this money to escape death. </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">However, it should be unacceptable that a public officer,
spends public money, that should have gone into providing medical facilities
locally, to go abroad for medical treatment for common ailments. This is double jeopardy for the
ordinary Nigerian. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">This is why the Minister’s memo to ban public officers
spending public funds for foreign medical treatment is important.
Unfortunately, that memo will remain lost in transit if the President, who is
to approve the memo, has his wife abroad undergoing treatment for “belly ache”
despite the state of the art medical facilities in Aso Rock. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">For an interesting piece on why Nigerians seek medical treatment abroad read <a href="http://www.ciuci.us/wp-content/uploads/2012/08/Outbound-Medical-Tourism.pdf">Outbound Medical Tourism</a></span></div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-63894044234426824452012-09-01T04:26:00.000-07:002012-09-02T13:28:35.627-07:00On Barth Nnaji’s resignation <br />
<div class="MsoNormal">
<span style="font-size: large;">I must say I am one of those who feel highly disappointed by
the forced resignation of Nigeria’s former minister of power, Barth Nnaji. I am not alone. His resignation has been a
subject on social media with a good number of people expressing disappointment at his resignation. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX4FX1Xi9Up-rL75kwMjprRibxJ868YfCaSHDOB-dimY2mryvfSGaOTgicLOvyOzzTGBw0DI52TNUwHcDbFOgqSCXNMSYJphw0epNFgL1fE3_gBqIR3ni9MaOVHfa-gSc8LWpvNES0_lk/s1600/Barth-Nnaji-Power-Minister.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX4FX1Xi9Up-rL75kwMjprRibxJ868YfCaSHDOB-dimY2mryvfSGaOTgicLOvyOzzTGBw0DI52TNUwHcDbFOgqSCXNMSYJphw0epNFgL1fE3_gBqIR3ni9MaOVHfa-gSc8LWpvNES0_lk/s320/Barth-Nnaji-Power-Minister.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Barth Nnaji-Nigeria's former Minister of Power </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The disappointment has mainly been because most Nigerians
have for the first time seen a dedicated commitment by a minister to make an
impact in the perennially underperforming power sector. The clear evidence that
he was making progress was not just the fact that most Nigerians were beginning
to experience improved power supply in their homes but the powerful labour
unions in the power sector were beginning to feel uncomfortable. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The entrenched interests in the Nigerian power sector in
collaboration with some compromised staff of PHCN who have made their fortunes
from the misfortune of Nigeria’s power situation suddenly realized that their
days were numbered with the progress Nnaji was making in the power sector.
Power was not only improving but the various timelines set for selling the
successor companies to the dissolved PHCN was being adhered to strictly. Unlike
before, it was obvious that the status quo in the power sector was about to
change permanently. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">His sudden resignation has however put the whole process
under jeopardy, no matter what the government may want to say about it not
affecting the whole exercise. Personally, I think the reason given for his
forced resignation was lame. I see nothing wrong with what has been made to
look like a wrong doing in some media. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">I have had the privilege of going through some of the best
codes of ethics and best practices from highly respected professional bodies
and in all conflict of interest situations, what is required is disclosure first
and avoidance second.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">From media reports, It was Nnaji that informed the committee
that a company that undertook a contract for his company in the past was
involved with the bid for some of the power assets and that also Geometric,
which we all know was run by Nnaji before he became power minister was part of a Eastern Nigeria Electric Company consortium bidding for the Eastern Nigeria Distribution Company. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Global best practice in this situation is disclosure of this
potential conflict of interest, which Nnaji did. There is absolutely nothing
wrong with those companies bidding for the power assets. A company that is technically
qualified and financially capable to bid for power assets does not stand
disqualified because it worked for the power minister in the past. Also, disclosing that Geometric was part of a consortium bidding for a stake in Enugu Electricity Distribution Company was the right thing to do. The other action was ensuring that he abstained from the selection process of the successful bidders for Eastern Nigeria Electricity Distribution Company which from media reports, he did. </span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;"> What was expected of the minister was not to be part of
the decision making process in the bid evaluation involving the companies that
could generate potential conflict of interest. From media reports, he also did
that when he informed the technical committee evaluating the bids that two
companies that were distantly related to him are taking part in the process and
excused himself from the process. As far
as I can see from media reports, Nnaji met all the requirements of transparency
and fairness that are supposed to be met in a process like this.</span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Wrong doing can only be ascribed in this situation if it can
be proven that he may have passed information to any of these companies that
are related to him that was not passed to other bidders and the companies have
emerged without submitting the best bids. From my reading of media, reports, I have not
seen any such accusation. In the US,
Dick Cheney was the Managing Director of Halliburton before becoming Vice
President of the US, and that did not stop Halliburton from winning contracts
from the US government while he was the Vice President. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">It is important that we do not hold public officers to
impossible standards if we want to get credible people in the private sector to
go into governance. Nnaji was not expected to close his private company down
just because he wants to work for government. He took all the right actions he
was supposed to do in such a situation by placing his shares in Geometric in a blind
trust. This could explain why he found out only at the evaluation stage that
his company was also involved in the bid. With a blind trust, he is not
supposed to know what his company was doing while he is a minister. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">It is really sad that, one of the acknowledged good hands in
the current administration has been forced to resign. I sincerely hope, his
resignation does not open the loophole for those who do not desire the success
of the whole power reform programme to compromise the process for their selfish end.
There are still critical challenges ahead for the power reform process. The greatest challenge is continuity. Bankers
who are going to ultimately provide the finance to successful bidders are already
concerned about the sustainability of the whole power reform process if it is
not concluded within the lifespan of the current administration. Most bankers
would definitely be reluctant to open their books to successful bidders if the
whole process is not concluded before the 2015 elections. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The last time Obasanjo left and Yar Adua took over, the NIPP
projects were all suspended, resulting in bad loans which created one of the excuses
the Central Bank of Nigeria (CBN) needed to take over some banks. Nigerian
banks may not want to take that risk again and the sudden resignation of Nnaji
only shows that the risks associated with Nigeria’s power reforms are very
real. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">It would really be sad if the power reforms are derailed again.
Succeeding with the power reforms may be Nigeria’s best chance to redeem its
economy and remain as a nation. </span><o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-63238991718274903592012-08-27T05:59:00.001-07:002012-08-28T07:13:44.637-07:00Does Nigeria need a N5000 note?<br />
<br />
<div class="MsoNormal">
<span style="font-size: large;">The announcement by the Central Bank of Nigeria (CBN) to introduce
N5, 000.00 notes and coin the lower denominations of N5, N10, and N20 has
received a lot of criticism from the Nigerian public already. The criticism has mainly revolved around the
fear that the higher note will cause inflation. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7yAKGL32-fbFnuxnw9OlBAzzcPtg_uswb9EAml5NdOLVdAHPDhoewVcwbSA_5FNa2uW6QG4PrmGFYXgUiXSFYim14zcyFkFUAa7_S9HJUzx13UeHHPWloEerLxLPUaBsKDON1K-NC8cQ/s1600/sanusi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="232" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7yAKGL32-fbFnuxnw9OlBAzzcPtg_uswb9EAml5NdOLVdAHPDhoewVcwbSA_5FNa2uW6QG4PrmGFYXgUiXSFYim14zcyFkFUAa7_S9HJUzx13UeHHPWloEerLxLPUaBsKDON1K-NC8cQ/s320/sanusi.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-size: large;">Cartoon by Asukwo: Source BusinessDay </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The CBN has however argued that there is no evidence that
higher denomination can cause inflation, arguing that inflation is caused by
increase in the volume of money in circulation rather than by the denomination
of the money in circulation. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">What I am going to do in this opinion piece is to look
critically at the CBN argument. Would the new CBN denomination policy cause
price increase in commodities and services in Nigeria? <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">First, as argued by the CBN, Nigeria would not be the first
to coin lower currency denominations. The CBN is proposing to coin the N5,
N10 and N20 and introduce N5000.00 notes. Denmark has coins in the same range
as being proposed by the CBN, while Japan and South Korea have coins in the
range of 50, 100 and 500. Japan and South Korea also have a 5000 and 10,000
note. So it could be argued that the CBN is not doing something that has not
been done in some other part of the world. The difference however is that these
countries also have very advanced cashless payment systems so these notes are
hardly ever seen physically. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">So are Nigerians right in being apprehensive about the
introduction of N5, N10 and N20 coins? If the characteristics of a good payment
system are taken into consideration, then Nigerians have every reason to fear
that the coinage of the lower denominations would be inflationary. A good
payment system is expected to be efficient, convenient and low cost for the
users of that payment system. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Would coining N5, N10 and N20 be efficient, convenient and low
cost for Nigerians? The answer is most likely no. As the CBN admitted during
the introduction of its cashless policy, 90% of banking transactions are below
N150, 000.00 and that Nigeria is largely cash oriented society unlike Denmark
and Japan or South Korea. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">This is largely true as most transactions in Nigeria are carried
out in the informal market, where a good proportion of individual transactions are done under N1000.00 in the open market. Most market women hold huge amount of money
in porches tied around their waist, from where they dish out money for items or
as “change” for purchased items. Coining the N5, N10, N20 notes would mean that
these women would no longer find it convenient to hold these monies in the way
they are used to holding it for ages.
This will affect the millions of informal market women who will suddenly
find that holding this amount of money is no longer convenient. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">These informal market participants would be forced to adopt
the next higher currency note, N50 in order to restore the convenience that
has been denied them with the lower coins. This would lead to price increases. No amount of education as planned by the CBN
would make Nigerians adopt the massive use of these coins because it is
inconvenient, the informal market is huge and significant amount of
transactions still take place with these lower end currencies. Coins are meant
for low value transactions so where higher currency values are forced into this
bracket, the most likely result will be avoidance of transactions that would
create the inconvenience of using coins. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">At the other end of introducing N5, 000.00 notes, there is a
chance that pricing of commodities and services would be adopted to suit the
higher denomination. This may be done by merchants to encourage convenience in
paying for goods and services and to avoid the issue of having to give change
for the higher denomination. The most
likely pricing strategy would be to migrate all prices that are closer to N5000.00
say within the N3000 to N4500 range to N5000.00 to avoid the inconvenience of
having to give “change.”<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">There is also the strong argument of the higher denomination
being against the cashless policy of the CBN. Higher denominations would
encourage users to demand it for higher value transactions. It is however
possible that the high cost of transactions for cash withdrawal by the CBN may
discourage this trend. So the question is, why is the CBN introducing a higher
denomination currency if there are already policies in place to discourage its
use? <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The argument that it would lower cash processing cost by
banks is also lame since the cost of printing and processing coins is far
higher than that of notes. The implication is that the CBN will spend more to
introduce a set of currency with low demand. That would amount to waste of
funds and increase cost and inconvenience for banks. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Perhaps, the most important issue that the CBN would have to
deal with when it introduces the N5, 000.00 notes will be counterfeiting. In a
largely informal economy like Nigeria, it would not be surprising if the N5,
000.00 note becomes the counterfeiters gold. There is a real possibility that
the N5, 000.00 notes are counterfeited and circulated widely in the informal
economy since the cost of counterfeiting would be less than the value that
would be derived from circulating the fake currency. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The whole idea of the CBN currency restructuring exercise is
against its own cashless policy which it has pursued vigorously since the
beginning of the year. It would have made more sense if the CBN had continued
to fine tune the cashless policy, make it more acceptable and workable, as that
is the global trend, than derail its own policy with its latest initiative. </span><o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com1tag:blogger.com,1999:blog-6312295091863085609.post-49982578861701854162012-07-16T05:58:00.001-07:002012-07-16T05:58:34.157-07:00Boko Haram: The Devil's Alternative<br />
<div class="MsoNormal">
<span style="font-size: large;">There is a current call for the Federal Government to
negotiate with Boko Haram, a sect that has made the killing of other Nigerians a call to duty. </span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s1600/goodluck_1636002c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s320/goodluck_1636002c.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-size: large;"> Goodluck Jonathan, President Federal Republic of Nigeria. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">On the basis of this call for dialogue, the new NSA is said to making moves to
start a dialogue process with Boko Haram. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The premise for negotiating with Boko Haram seems to be the
fact that when Niger Delta militants carried out a series of violent attacks
against the Nigerian state, dialogue was eventually used to resolve it. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But, perhaps, the very faulty resolution option adopted by
the Federal government for the Niger Delta crisis may be blamed for the Boko
Haram monster the nation is currently facing. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">When a government makes it a policy to reward violence, the
natural response is more violence. It is
called positive reinforcement. When a positive action is rewarded, it creates a
tendency for more positive actions, when negative action is negatively rewarded,
it deters negative action but when the negative action is positively rewarded,
it creates more negative action. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The creation of a punishment system for negative behaviour
in any society is as hold as humanity itself. This will not be changed in
Nigeria. Unfortunately, the Nigerian government, since 1999 seem to have adopted a policy to reward insurgency with lucrative concessions to those who dare to rebel against the state. Asari Dokubo, Gani Adams, Government Tompolo are just a few Nigerians who have made fortunes from carrying guns against the state. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Niger Delta militants carried guns against the Nigerian
state, the government rewarded them with a very expensive peace plan that is
costing the nation billions and is not sustainable in the long run. We all know
it is a peace built like castles in the air, existing only because of the
thriving bunkering business in the region, the monthly unearned income being
paid out to former militants and the lucrative contracts to a few warlords that
should be chilling in Nigerian prisons. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Now we are talking of similar “peace” with Boko Haram. First,
it is not possible to dialogue with Boko Haram. Their demand is not contiguous
with the existence of Nigeria as a nation. Boko haram demand that “for Christians in
Nigeria to know peace, they must accept Islam as the only true religion” rules
out the possibility of coexistence with a large proportion of other Nigerians who
do not share that faith and with a rightful claim to existence in Nigeria. You
cannot negotiate away the faith of this other Nigerians or dilute their faith
to make Boko Haram happy. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoxnKZZjxfEgG8hwfsuyFby7uKCIerP78PP3cZ30zC0lqOYfeppdC5TP74GnfSOgySx-bZzXbvtdTmAuKfqjX4dNa-MbuV65DcHnuajj_7SmFF7QqBNUpxm6HQdTq-tphZRchU3Rt3Q8s/s1600/Boko-Haram.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoxnKZZjxfEgG8hwfsuyFby7uKCIerP78PP3cZ30zC0lqOYfeppdC5TP74GnfSOgySx-bZzXbvtdTmAuKfqjX4dNa-MbuV65DcHnuajj_7SmFF7QqBNUpxm6HQdTq-tphZRchU3Rt3Q8s/s320/Boko-Haram.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-size: large;">Destruction from a Boko Haram attack</span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Even more so, Boko Haram seems to practice a form of Islam
that does not accommodate even other Muslims. The close shave of the Shehu of
Bornu with death by bombs as practiced by Boko Haram on Friday is further
evidence that Boko Haram simply has no respect for life. If they have a
religion, it is a religion that worships death, not God. Many Muslims have
equally died from the bombing campaign of Boko Haram as have Christians who
they claim to be fighting against. The only dialogue that may suit Boko Haram
therefore may be the death of every Nigerian and the creation of a Boko Haram
Empire for them to live in peace with their bombs just because there is no one else
to bomb. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But even then, an enclave for Boko Haram will not give
Nigeria peace. This is seen in places like Afghanistan, Somalia, and Pakistan
where the existence of an enclave for fundamentalists have not stopped
attacks on the neighbouring countries. The enclave becomes a safe haven for attacks
and the breeding ground for fundamentalist who cannot tolerate the existence of
alternative thinking. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The logical conclusion that arises out of this situation is
the painful acceptance that the only option available to the Federal Government
is the defeat of Boko Haram in this fight against the Nigerian state. I said
painful option, because it will mean the loss of more lives and the destruction
of public property. Terrorism anywhere
in the world is never easily defeated. The NATO with all its powers and modern
ammunition has not been able to stop terrorism in Afghanistan. US ran out of
Iraq and Somalia. Terrorists are a tough bunch to defeat. I do not see it being
different in Nigeria that before now, even basic crimes were difficult to
crack. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">However, the truth is that the government cannot continue to
reward violence and expect to have peace. The earlier the Federal government
realizes that there is no alternative B in this fight against insurgency, the
earlier it would concentrate its resources in defeating this evil that has arisen
among us. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But maybe there is alternative B after all. This is for the
Federal Government to accept that the task of maintaining the internal peace
and the territorial integrity of Nigeria is now beyond its control. This will
mean calling for a national conference and discussing the best way to
restructure the nation or dissolve the Federation into more manageable parts. This
is the devils alternative. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-65360338246429558222012-07-08T06:27:00.001-07:002012-07-08T06:27:38.651-07:00The God Particle and Nigeria<br />
<div class="MsoNormal">
<span style="font-size: large;">The news of the week in the international media was the discovery
of the “God Particle” by scientists. Also referred to as the Higgs Boson particle,
this particle is said to give other particles their mass, hence its reference
as the “God Particle.”<o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjERqtEN0rZuVeTGBBQbikM9AWeZjD0hGQfdCxHzfPvJQ6sae7Hmg2J1okqEqaClF-5zcMtDRguq7ZSCC9aKZ9hxSwBWrL-aIUGMnNzpT1fcd_11hIMkS-XVnnvTLDQbsiXGn4QDcnZZI/s1600/god-particle-050712.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjERqtEN0rZuVeTGBBQbikM9AWeZjD0hGQfdCxHzfPvJQ6sae7Hmg2J1okqEqaClF-5zcMtDRguq7ZSCC9aKZ9hxSwBWrL-aIUGMnNzpT1fcd_11hIMkS-XVnnvTLDQbsiXGn4QDcnZZI/s320/god-particle-050712.jpg" width="320" /></a></div>
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<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">To discover this god particle, scientists have had to build
what is called the Large Hadron Collider (LHC), which is estimated to have costs
£6.6 billion (N1.65 trillion). The LHC works by smashing protons, particles
found inside atoms, to produce temperatures as high as four trillion Celsius,
250,000 times hotter that the centre of the Sun. The collision of the protons
produces debris, which was then examined for the Higgs Boson particle. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">So on 4th. of July, why Americans were preparing to
celebrate their independence, Scientists came out with the historic
announcement that they have found the “God Particle” 50 years after Peter
Higgs, a professor at Edinburgh University first proposed the existence of the
particle. Interestingly, he was there to listen to the announcement. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<span style="font-size: large;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/0CugLD9HF94?feature=player_embedded' frameborder='0'></iframe></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">According to the Telegraph, London, “The Higgs boson is the
final piece of the Standard Model of Particle Physics, a theoretical model
which describes the fundamental particles and forces that control our Universe.”
<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Finding the Higgs boson proves the existence of the Higgs
Field, a force which provides fundamental particles - the building blocks of
the Universe - with their mass. Without mass they would simply zip around the
cosmos at the speed of light and never form into stars and planets. It is also
the last missing cornerstone of the Standard Model of Physics, which explains
what the Universe is composed of, according to the Telegraph. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Professor John Womersley, chief executive of the Science and
technology Facilities Council, told reporters at a briefing in London:
"They have discovered a particle consistent with the Higgs boson.
“Discovery is the important word. That is confirmed. It's a momentous day for
science." <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Science discoveries usually make the news in the Western
media. But the announcement of the discovery of the Higgs Boson had a celebrity
touch. Perhaps, this is due to the huge amount involved in the experiment
leading to the discovery and also the significance of the discovery. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Interestingly, Scientists are still very unclear about the
practical implications of the discovery of the Higgs Boson particle. The
Telegraph quotes Higgs as saying “It’s around for a very short time. “It’s
probably about a millionth of a millionth of a millionth of a millionth of a
second. I don’t know how you apply that to anything useful.<o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<span style="font-size: large;"><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/2cycLnBGqp8?feature=player_embedded' frameborder='0'></iframe></span></div>
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<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"> “How you could have
an application of this thing which is very short lived, I have no idea.”<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But the Telegraph quotes Alan Walker, a colleague from the Edinburgh
University School of physics and astronomy, as saying there had been the same
uncertainty when the electron was discovered. So it may just be a matter of
time before the discovery of the God Particle leads to new practical
applications that change the way we live. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The news that made dominated the headlines in Nigeria; the
same week the discovery of the Higgs Boson was being announced in London was
the $3 million bribery scandal involving Nigeria’s House of Representatives.
This news fought for front page attention with the usual news about the campaign
of bombing being carried out in Northern Nigeria by the Boko Haram anarchists. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Less prominent was the news about the dwindling interest in
Science by Nigerian students as reported by the Nigerian Guardian in a short
story July 8, 2012. This story reported the lamentation by the Vice Chancellor
of the Nnamdi Azikiwe University in Eastern Nigeria. The VC disclosed shockingly
that of the 52,000 candidates that applied to the University for Admission,
only 76 candidates offered to read Mathematics.
Also more than half of the 52,000 applicants offered to read courses in
the Arts and Humanities. Most likely, a
good proportion of the remainder; will offer to read courses in the Business
and Social Sciences leaving just a small fraction to read the sciences. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<span style="font-size: large;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/qUnWDgEMDa8?feature=player_embedded' frameborder='0'></iframe></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The pattern of student preferences is not surprising. Most
students are responding to expected job market demands. We all know who gets
the high paying jobs after University. Besides, it is also a factor of how well
students feel prepared to tackle the challenges of studying science at the
University. We all know most public secondary schools science labs are poorly equipped.
It is not much different at the University level. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">A survey among secondary school students in Nigeria may show that surprisingly a large proportion would have loved to read the
sciences. So the obvious challenge is the lack of institutional encouragement
and poor post study demand for those who read sciences in Nigeria. The marketing
departments of most banks have a significant representation of graduates who
made first class and second class uppers in sciences. For lack of good jobs
that can give them living wages in their preferred fields, they now hawk
financial services on the streets, a vocation that demands little intelligence.
<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-size: large;"><br /></span></span></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-size: large;">There is the challenge of poor funding for public education and the reluctance and inability of parents to also pay higher fees for higher quality education. Quality education is expensive, a reality both the government and Nigerians are yet to accept. This does not necessarily mean that higher cost education is equal to higher quality education but good quality education is definitely not cheap. Well equipped laboratories are expensive. Quality teachers and lecturers will not accept non living wages. </span></span></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-size: large;"><br /></span></span></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-size: large;">There are also lack of incentives to encourage science education. There are no scholarships and government backed student loans are also non existent. It is not also clear how research activities in Nigerian public universities are linked to their public funding. How well linked is the promotion of lecturers to their achievements in research? </span></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The media also needs to play a critical role. What prominence does the Nigerian media give to scientific achievements in our universities? The media is quick to report sexual harassment, cultism and the politics of appointing vice chancellors in Nigerian universities. How well does the media give equal coverage to scientific discoveries in the universities? </span></div>
<div class="MsoNormal">
<span style="background-color: white;"><span style="font-size: large;"><br /></span></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Does Nigeria need science education? Most definitely.
Sciences of the God Particle may sound farfetched for the daily struggles of
the average Nigerian. The science of the
Western world has moved to space exploration, but Nigeria still need the science
that helps it conquer high levels of poverty. For example, there are still many tropical
diseases that western drugs have no precise answers yet or have overly
expensive remedies. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The immediate question is how do change the culture of consumer worship to the worship of knowledge and understanding? We may not need to discover another God Particle; but we need to discover the science to conquer our immediate challenges. For example, how well do we understand the science of Nigerian corruption? <o:p></o:p></span></div>
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<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<br /></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-89221945954579008142012-06-06T06:15:00.000-07:002012-06-07T04:22:07.070-07:00Still on amending the Central Bank of Nigeria Act<br />
<div class="MsoNormal">
<span style="font-size: large;">The decision to amend the CBN Act by Nigeria’s house of
assembly has been received with a lot of criticisms from the media. In my reading
however, I have seen little or no attempt by the media to actually put before
the public how Central Banks in other countries operate. So in the next few paragraphs, I write on how
the Central Banks of the United States of America (USA), Canada and Germany
operate in relation to their financial systems. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD27ekCcGrJXlU8rUD3O8FLyoIQQ7oi1C3X-ChwuF9k1RIzVXAZpa-cCoXUDwQqypxgccJODvz4XHaoRzpsTWqDG1sD4s1viEwPIqCTMYZ4Q_gCUL866yuBoYhZfnIfI8TgcIqjJWosG0/s1600/5689608229_f3d86c7fa8.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD27ekCcGrJXlU8rUD3O8FLyoIQQ7oi1C3X-ChwuF9k1RIzVXAZpa-cCoXUDwQqypxgccJODvz4XHaoRzpsTWqDG1sD4s1viEwPIqCTMYZ4Q_gCUL866yuBoYhZfnIfI8TgcIqjJWosG0/s320/5689608229_f3d86c7fa8.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-size: x-small;">Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria</span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The equivalent of Nigeria’s Central Bank is the Federal
Reserve Bank in the USA. Like Nigeria’s Central Bank, the Federal Reserve Bank
is in charge of monetary policy in the US but unlike Nigeria’s Central Bank, it
is not solely in charge of bank regulation in the US. It is usually referred to as the Federal
Reserve System because there are 12 other regional reserve banks in the US in
charge of regulating banks within their regions. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Federal Reserve Bank, commonly referred to as the “Fed”
is responsible for regulating the US monetary system and monitoring the
operations of Bank holding companies. The Fed is controlled by a seven man
board chaired by the Ben Bernanke, who can be referred as the Governor of the
Fed. The Board also has a Vice Chairman. The Seven members of the board are
appointed by the President and confirmed by the US Congress. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Chairman of the board is also required to brief congress
twice yearly on its conduct of monetary policy and economic developments and
prospects for the future. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Chairman of the board is also required to appear before
the Banking and Financial services committee of Congress on scheduled dates to
brief it on key issues about the economy as well as submit a detailed report on
the economy to congress before its appearance. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Congress also sets the salaries of the board members of
the Federal Reserve System. For 2012, the Chairman's annual salary is $199,700.
The annual salary of the other Board members (including the Vice Chairman) is
$179,700.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Federal Open Market Committee (FOMC) is the monetary arm
of the Fed. It is made of the seven members of the Fed Board and additional
five members selected from the Presidents of the 12 regional Feds who rotate
their positions on a yearly basis except the Present of the New York Fed who is
a permanent member of the FOMC. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The US Department of Treasury, the same as Nigeria’s
Ministry of Finance, also has regulatory powers over the US banking system
through the operations of two agencies it oversees, the Office of the
Comptroller of the Currency (OCC) and the Office of Thrift Supervision, which
regulate banks and savings and loans.
The Fed can also only offer financial support to failing banks with the
collaboration of the Department of Treasury. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The OCC is responsible for licensing all U.S. banks and,
more broadly, for ensuring the stability of the banking system while the Office
of Thrift Supervision (OTS) is charged with supervising federally-licensed
savings and loan associations, also known as "thrifts. The Federal Deposit
Insurance Corporation (FDIC), with similar functions as Nigeria’s Deposit
Insurance Corporation (NDIC) also has regulatory powers over the financial
system while the Securities and Exchange Commission (SEC) regulates securities
trading. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Canada.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;">In Canada, the Bank of Canada does not have supervisory
powers over banks. Instead, it acts as a lender of last resort, supplier of
emergency liquidity to banks in distress, fiscal agent to the Canadian
government and issuer of currency. The Bank of Canada is thus mainly in charge
of monetary policy and financial stability. The actual regulation of banks is
the function of the Office of the Superintendent of Financial Institutions (OSFI)
and the Financial Consumer Agency of Canada (FCAC).</span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The highest financial regulatory organ in Canada is the
Financial Institutions Supervisory Committee (FISC) comprising the
Superintendent of the OSFI, Governor of the Bank of Canada (equivalent of Nigeria’s
Central Bank Governor), Chair of the Canadian Deposit Insurance Corporation,
Commission of the FCAC and the Deputy Minister of Finance. The FISC is chaired
by the Superintendent of the OSFI, meets quarterly and reports directly to the
Minister of Finance. It is also interesting that the Minister of Finance has
the power to set the monetary policy of Bank of Canada with the approval of the
Canadian Parliament. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The German Bundesbank</span></div>
<div class="MsoNormal">
<span style="font-size: large;">The Executive Board governs and manages the Bundesbank. It
comprises the President (equivalent of the Central Bank Governor), the Deputy
President and at four other members. The members of the Executive Board are
appointed by the President of the Federal Republic of Germany. The President,
the Vice-President and one other member are nominated by the Federal
Government; the other three members are nominated by the Bundesrat (the upper
house of Parliament representing the Federal States) in agreement with the
Federal Government.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Banking supervisory functions of the German Central Bank is
jointly shared between it and the German Financial Supervisory Authority
(Bafin) which is under the supervision of the Ministry of Finance. Bafin is an integrated regulatory body with
supervisory powers over insurance and securities trading. The Bundesbank audits
the banks but has to take its findings to the Bafin which takes the final
decision on the outcome of the audits. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">A look at most regulatory models around the world shows that
it is a close collaboration between the Ministry of Finance, the Central Bank,
other regulatory bodies with the parliament offering oversight and accountability. Most Central
Bank’s independence is more restricted to carrying out monetary policy
decisions but not necessarily in non-monetary functions like bank supervision
and regulation. It is important that
this distinction is made in the current debate about the autonomy enjoyed by
the Central Bank of Nigeria. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">But as I noted in an earlier <a href="http://osae-brown-insights.blogspot.co.uk/2012_05_01_archive.html">post</a>, the debate should go
beyond amending the CBN Act to how the financial sector is regulated in
Nigeria. </span><o:p></o:p></div>
<div class="MsoNormal">
<br />
Watch a sceptics view of Central Banking<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/Sq3B3B--j4g?feature=player_embedded' frameborder='0'></iframe></div>
Alan Greenspan speaks on monetary and fiscal policy<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/gq0TDyCe6Cc?feature=player_embedded' frameborder='0'></iframe></div>
<br /></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com1tag:blogger.com,1999:blog-6312295091863085609.post-45304949144834109242012-06-03T07:04:00.000-07:002012-06-03T07:04:06.432-07:00Ben Bernanke’s Speech on Central Bank's Independence<br />
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">As Nigerians continue the debate on the amendment of the Central Bank of Nigeria Act, Ben Bernanke Chairman of the Federal Reserve System
delivered a speech in 2010 defining the scope of Central Bank independence.</span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpbNzXx8TyfZyi59PNWykzk8hm7BpODLc6hJMnzH5dwiuSAujeclPcaW5_HXbZxBmJDMn9LCEUuN3gxJ9Z_1M1J0ve-DE7BugBnqH3cskbX18QOBqt9ixVnCgu1GiHLiTIorFNRHFwNzo/s1600/Ben-Bernanke.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpbNzXx8TyfZyi59PNWykzk8hm7BpODLc6hJMnzH5dwiuSAujeclPcaW5_HXbZxBmJDMn9LCEUuN3gxJ9Z_1M1J0ve-DE7BugBnqH3cskbX18QOBqt9ixVnCgu1GiHLiTIorFNRHFwNzo/s320/Ben-Bernanke.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-size: x-small;">Ben Bernanke, Chairman of the Board of the Federal Reserve System</span></div>
<div class="MsoNormal">
<span style="font-size: large;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">See the link to the speech <a href="http://www.federalreserve.gov/newsevents/speech/bernanke20100525a.htm">here</a><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: large;">For those who may not have time to read the full speech,
here is a brief on what he said about Central Bank’s independence.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Central Banks were largely able to deal with the financial
crisis because they were able to make monetary policy decisions based on what
is good for the economy in the longer run, independent of short-term political
considerations. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Central bankers must be fully accountable to the public for
their decisions, but both theory and experience strongly support the
proposition that insulating monetary policy from short-term political pressures
helps foster desirable macroeconomic outcomes and financial stability. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Transparency and accountability must go along with Central
Bank independence <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">There exists a broad consensus among policymakers,
academics, and other informed observers around the world that the goals of
monetary policy should be established by the political authorities, but that
the conduct of monetary policy in pursuit of those goals should be free from
political control.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Political interference in monetary policy can generate
undesirable boom-bust cycles that ultimately lead to both a less stable economy
and higher inflation.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">He emphasizes however that he is “by no means advocating
unconditional independence for central banks. First, for its policy
independence to be democratically legitimate, the central bank must be
accountable to the public for its actions”<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Then he states that “the independence afforded central banks
for the making of monetary policy should not be presumed to extend without
qualification to its nonmonetary functions” <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">He lists some of the nonmonetary functions to include,
oversight functions over the banking system.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">In the conduct of its regulatory and supervisory activities,
the central bank should enjoy a degree of independence that is not greater and
not less than that of other agencies engaged in the same activities; there
should be no "spillover" from monetary policy independence to
independence in other spheres of activity.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Bernanke lists the range of activities that covers Central
Bank’s monetary policy decisions that requires independence to include “Conventional
monetary policy, which involves setting targets for short-term interest rates
or the growth rates of monetary aggregates, the central bank's discount-window and lender-of-last-resort
activities” </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">These activities involve the
provision of short-term, fully collateralized loans to the financial system as
a means of meeting temporary liquidity needs, reducing market dysfunctions, or
calming financial panics.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Democratic principles demand that, as an agent of the
government, a central bank must be accountable in the pursuit of its mandated
goals, responsive to the public and its elected representatives, and
transparent in its policies.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">He list the ways in which the Federal Reserve has maintained
transparency and accountability to the US Congress and public to include; <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Frequent speeches and testimonies before congress on the
economic situation and on the prospects for policy, submission of extensive
reports to Congress twice each year on the economy and monetary policy<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Also the Monetary policy committee of the Federal Reserve publishes
a statement after each of its meetings that explains the Committee's policy
decision and reports the vote on that decision. The FOMC also publishes the
minutes of each meeting just three weeks after the meeting occurs and provides,
with a lag, full meeting transcripts. </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">In addition, the FOMC has begun providing
the public a quarterly summary of Committee participants' forecasts of key
economic variables and, more recently, their assessments of the longer-run
values to which these variables would be expected to converge over time. </span><o:p></o:p></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com2tag:blogger.com,1999:blog-6312295091863085609.post-52494842569791157212012-06-01T05:04:00.000-07:002012-06-01T11:22:28.068-07:00I no longer wish to be called Goodluck Ebele Azikiwe Jonathan<br />
<div class="MsoNormal">
<span style="font-size: large;">His Excellency Sir, we have received your request for a
change of name, that you no longer wish to be known and called <b>Goodluck Ebele Azikiwe Jonathan</b>, but now
wish to be called <b>Obama Otueke</b>, in honour
of the first black President of the United States of America and the first
village in Africa where a child once walked shoeless but is now the President
of the biggest black nation on Earth. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s1600/goodluck_1636002c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s320/goodluck_1636002c.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: x-small;">Goodluck Ebele Azikiwe Jonathan, President Federal Republic of Nigeria. </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Your Excellency, in line with your request on May 29, 2012
we immediately moved to make the requested change. We are writing this mail to intimate
you of how we have progressed so far to ensure that all your past records align
with your new name. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">First, we have had to visit your primary school at Oloibiri,
St Stephens and St Michael’s primary school which you left in 1969. We are
sorry to tell you that the school could not trace your records. They claim that
they do not have a very good record system and so it was almost impossible to
trace your records and note your name change against it for the sake of future
enquiries. The danger of not doing this is that when people make enquiries
about you in future, you may not be recognised and this could be a tool in the
hands of your political enemies who may say you never attended these schools. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">We also visited your former Secondary School, Mate Dei High
School, Imiringi. We had some luck here; they were able to trace your
certificate and marked your new name against it. But you may need to visit this
school, they would appreciate some generous donation from an illustrious alumni
like you. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">They, however, advised that you have to contact the West
African Examination Council (Waec) to inform them of your name change. This is
to ensure that your records with the examination body tallies with your new
name. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"> We visited the
University of Port Harcourt where you had all your three degrees. They spent
some time looking for your transcripts in the records office which was stacked
full with files upon files. But they eventually traced all your transcripts and
have noted your new name against it. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">The difficult part of this assignment was in telling your
parents about your change of name. We are afraid to say they did not take it
kindly. Your Dad threatened to commit suicide if you give up the name that he
has brought you up with, the family name that has brought you so much
greatness. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">This is the name, he insists, that has taken you from being
shoeless to now having so many shoes. He refused to listen to reason and said
that he will rather die than see you answer a new name. Your Mother’s case was quite different. She
was just silent as she shook her head repeatedly. All she said as we were
leaving was that her enemies will not succeed. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">We had to break the news to your dear Wife. She did not take
kindly to it either. How can you wake up and suddenly dump a name that has
brought you so much good luck, she asked. She even said that she is sure that the witches in the opposition party have confused your mind. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">She raised several issues. What happens to her marriage
certificate? What does she tell her friends? How is going to tell them that she
is no longer Mrs Goodluck, that she is now Mrs Otueke? Assuming she loses all the good luck that has
come to her since she married Mr Goodluck, she wondered. God Forbid, she said. If there is
any change of name, she will assume she is now a widow. She insists that her
marriage certificate reads Mrs Goodluck and the contract says “till death do us
part.” So any change of name means Goodluck is late and she is now a
widow. His Excellency, we are afraid to
tell you that we did not make any progress with Her Excellency on this issue. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Finally, we had to let INEC and your party into your change
of name initiative. INEC simply advised that the name on the ballot paper when you
contested was Goodluck Ebele Azikiwe Jonathan and that is the name they
recognise. That if you have to change
your name, then you may have to contest a new election based on your new name.
Simply, you have to resign now and handover to the Vice President and contest
the next election based on your new name. They insist that they have it on good
record that a lot of Nigerians voted for you based on the Goodluck in your name.
Without it, you would not have won the election, they insist. We advise that
you may have to challenge their decision at the Supreme Court. </span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><o:p></o:p>The position of your party was not that much different from
that of INEC. They also insist that what sold you to them was the Goodluck in
your name, that your new name cannot win an election. They would therefore be
reluctant to field you in the next election if you chose to go ahead with your
new name. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Your Excellency, so this is how far we have gone with the
request for change of name. We are yet to contact all Nigerian embassies
abroad, all other country embassies, all other foreign head of states and all
international bodies like the UN, African Union, ECOWAS and all others that
have known you by your old name of your decision to change your name. They will
also have to effect changes in their records to that effect. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: large;">Your Excellency, changing your name at the age of 55 is not
an easy task to accomplish. Considering all you have achieved in such a short
life. We have attached a detailed budget of the financial implication of this
name change. However, we kindly advise that dealing with the human implication
is beyond our capacity. So we advise that you talk with your wife, parents,
children, friends, INEC and your party. Hopefully, you will be able to convince
them about your intention. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-67923008463360954832012-05-28T03:03:00.001-07:002012-05-28T03:03:46.364-07:00Beyond amending the CBN Act<br />
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Following the opening of a public debate on the autonomy of
Nigeria’s Central Bank, I will like to do a follow up on my earlier blog post
that touched on the autonomy of the Central Bank of Nigeria (CBN). </span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">You may read
the earlier blog post <a href="http://osae-brown-insights.blogspot.co.uk/2012/02/is-sanusi-lamido-sanusi-nigerias-most.html">here</a><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">In that blog post I had argued essentially that in the name
of granting autonomy to the CBN, we may have inadvertently placed too many
powers in the hands of governor. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD27ekCcGrJXlU8rUD3O8FLyoIQQ7oi1C3X-ChwuF9k1RIzVXAZpa-cCoXUDwQqypxgccJODvz4XHaoRzpsTWqDG1sD4s1viEwPIqCTMYZ4Q_gCUL866yuBoYhZfnIfI8TgcIqjJWosG0/s1600/5689608229_f3d86c7fa8.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><img border="0" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD27ekCcGrJXlU8rUD3O8FLyoIQQ7oi1C3X-ChwuF9k1RIzVXAZpa-cCoXUDwQqypxgccJODvz4XHaoRzpsTWqDG1sD4s1viEwPIqCTMYZ4Q_gCUL866yuBoYhZfnIfI8TgcIqjJWosG0/s320/5689608229_f3d86c7fa8.jpg" width="320" /></span></a></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria. </span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Globally, there have been a lot of regulatory reforms in
response to the global financial crisis. These reforms have been on how
financial institutions operate and how financial regulators regulate. </span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">In
Nigeria, there has been more of a reform of how financial institutions operate
with little on how financial regulators regulate. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The current move by the house to amend the CBN act, if that
is all it is about, then will fall far short of what the Nigerian financial
system needs. The challenge with the Nigerian financial system goes beyond a
cosmetic amendment of the CBN act. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">There are critical questions about the Nigerian financial
system that need to be addressed. These questions include asking if the current
highly fragmented regulatory system is really working for the Nigerian
financial system? Why is the Shadow banking system in coma despite the existence
of several licensed operators in the sector? Why is the insurance sector in
coma and why is it that the only time the insurance industry showed some
promise was when banks went into the insurance business? Why are banks thriving
why all other financial institutions are not? How do you harness the whole
financial system, banks and non-banks for the benefit of the economy? <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The single act of just amending the CBN Act will not deal
with the bigger issues faced by the Nigerian financial system. What we need is
complete approach to reforming the Nigerian financial sector. This would
involve reforms that include transparency in financial services,
accountability, consumer protection and efficient competition in the financial
system. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">In the raging debate over the proposed CBN amendment act,
there has been the consistent argument that it would interfere with the
independence of the CBN. However, if the purpose of the bill is to balance
independence with accountability and transparency in the operations of the CBN,
then the proposed amendment could actually enhance the capacity of the CBN to
efficiently manage the Nigerian economy but not enough to make the Nigerian
financial system work for the Nigerian economy. So far media reports have not
revealed the full details of the reform other than argue that it is meant
curtail the independence of the Central Bank of Nigeria.</span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">But a look at the UK financial regulatory system shows
that even the Bank of England (BoE) does not have complete autonomy.</span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The Governor of the Bank of England (BoE) which is
equivalent of Nigeria’s Central Bank Governor reports to a supervisory body for
the BoE called the Court of Directors (CoD) chaired by an independent chairman
different from the governor of the BoE appointed by the Chancellor of the
Exchequer, equivalent to Nigeria’s Finance Minister. The CoD is responsible for managing the day to
day activities of the BoE except the formulation of monetary policy. The CoD
delegates its functions to the Governor
of the BoE which has to give account of its operations to the CoD. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The CoD is made of 12 members appointed by
the HM Treasury, and includes the governor of the BoE, two deputy governors and
nine non-executive directors appointed for three year tenure each. The nine
executive directors are appointed from different sectors of the economy
including the banking industry. To
ensure, the accountability of the board, they are subject to an effectiveness
review by an independent external body on an annual basis. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The CoD operate through different committees one of which is
the Committee of the court (Nedco) made mainly of the Chairman of CoD and the
non-executive directors of the committee and its main role is to review the
performance of the BoE against its objectives and strategy. The bank also has
the Financial Stability Committee (FSC) made up of the Governor of the BoE, two
deputy governors and four non-executive directors of the CoD and a
representative of the HM treasury. The committee is saddled with considering
and approving all actions that are needed to preserve financial stability. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Other committees of the CoD include the Financial Policy
Committee (FPC), Remuneration Committee and the Audit and Risk Committee. The
new Bank act 2009 and a proposed new Financial Services Bill put the BoE
effectively in charge of ensuring financial stability of the UK Financial
system. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">However, there are still specific areas like bank resolution
options that involve the use of public funds that the 2009 UK banking act ensures that
BoE can only act with the express collaboration of the HM Treasury equivalent
to Nigeria’s ministry of finance. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">In terms of direct accountability to the parliament, the BoE
annual reports are first presented to the UK parliament before they are
presented to the public. Also BoE has to attend the UK House of Commons
Committee on the Treasury, equivalent to Nigeria’s House Committee on Finance, regular
hearings on its inflation and financial stability report. This helps the
committee members to question the BoE rational for arriving at its monetary
policy decisions. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">The House Commons committee also organises hearings for new
member appointment into the MPC and the FPC though it has no power to reject
the appointments. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">Most readers may ask if it is possible to replicate this
elaborate system of controls and balances in Nigeria, monitored by politicians
without it being abused for personal gains. The answer lies in a quotation from
the UK House Treasury Committee report which states that “accountability
processes for monetary policy, built around published minutes, individual
votes, regular evidence sections at the Treasury committee and pre-appointment
hearings show that it is possible to create effective accountability structures
while at the same time removing politicians from day to day decisions” <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">In essence, it is possible as along as the process is made transparent through mandatory disclosures of all processes. </span><o:p></o:p></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">However, amending just the CBN act is not enough. There need to be a debate on the regulation of the whole financial system and whether the current fragmented regulation is appropriate for the Nigerian economy. The amendment of the CBN act can be the trigger for such a debate. By the way, the UK financial services bill will put the regulation of the insurance sector and other financial services under the BoE. </span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">For more on the governance structure of the BoE click <a href="http://www.bankofengland.co.uk/about/Pages/governance/default.aspx">here</a></span></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-76195085424189589962012-05-19T06:47:00.001-07:002012-05-19T06:51:54.673-07:00The year of the hoodie<br />
<div class="MsoNormal">
This is the year of the hoodie. At no time has a dress sense
raised so much mixed emotions. It started when Geraldo Rivera, a Fox TV host
said Trayvon Martin, a 17 year old teenager, killed while walking home with a Can
of Ice Tea, was killed because of the hoodie he was wearing. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
He was killed by George Zimmerman, a 28 year old man who had
earlier called the police to say that Martin was acting suspicious. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Watch Geraldo Rivera blaming the hoodie for Martin’s death. <o:p></o:p></div>
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/1ZEiGM6KuHU?feature=player_embedded' frameborder='0'></iframe></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
This sparked a backlash in the US which led to the Million Hoodie
Match in tribute to Trayvon Martin, with thousands of people walking the
streets of New York wearing hoodies.<o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/XUPApk0ICJE?feature=player_embedded' frameborder='0'></iframe><br />
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
US Congressman Bobby Rush famously joined the push against
the negative hoodie branding when he wore a hoodie to the floors of the US
Congress. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/YH4eXxLvuik?feature=player_embedded' frameborder='0'></iframe></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Mark Zuckerberg’s appearance at an investor road show
wearing a hoodie while planning for one of the biggest IPO’s in US history may however
have crowned 2012 as the year the hoodie left the gangster street for the
boardroom. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Mark Zuckerberg’s appearance at the investor road wearing a
hoodie drew many criticisms. <o:p></o:p></div>
<div class="MsoNormal">
“He’s actually showing investors he doesn't care that much;
he's going to be him," analyst Michael Pachter told Bloomberg TV. "I
think that's a mark of immaturity." <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/ZV5tdXYTYJw?feature=player_embedded' frameborder='0'></iframe></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The Wall Street suit guys were obviously shocked that Mark
did not care about their suit culture. <o:p></o:p></div>
<div class="MsoNormal">
Interestingly, Mark Zuckerberg who walked to Wall Street, and
raised $16 billion in the second biggest IPO in US history, putting his company's value at about $104 billion, is the same age as 28 year old George
Zimmerman, the man who pulled the trigger that killed 17 year old Trayvon
Martin, allegedly because he was wearing a hoodie. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The listing of the Facebook IPO was also the crowning of the
hoodie. NASDAQ for the first time in its history presented a hoodie to a
listing company’s Chief Executive. And guess what, Mark was still wearing his
hoodie and so were good number of Facebook staff. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/rrfuOrQXvqc?feature=player_embedded' frameborder='0'></iframe></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Facebook's success may have announced the arrival of the corporate hoodie fashion. The corporate three-piece suit may just be on its way out as the dominant fashion in the corporate world. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The hoodie is the new business model represented by
Facebook, Google, Zynga, Linkedln and many more, started by youths on their Laptops,
Car boots and Garages. This is not the typical business environment for the
suit wearing traditional business executive.Suit wearing may actually stifle the creativity that
represents this new business model than promote it. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The knowledge economy is fast changing the traditional business models. The knowledge economy
is driven by creativity. Hoodie is
synonymous with the creative music industry. It has shifted to the creative
tech industry. <o:p></o:p></div>
<div class="MsoNormal">
Those who understand this shift are already building a
bridge across the fashion gap. Welcome to the world of the pinstripe hoodie. <o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8y4zvkwjxp1Vw437qO-PR4Kwqd4YTAoDjNkFtl4bMg8tx3dmRNMlLgYmMWU9vKkkc9OL-cGi_7QzQ5Wz9xc2MCaDkBr7oRQh-bztn-WL2BaxD3LewloXMUoitgOjjNOCxXnYz5421AK4/s1600/m_fw12_techml_quantum_hood_ibsc66d34_1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8y4zvkwjxp1Vw437qO-PR4Kwqd4YTAoDjNkFtl4bMg8tx3dmRNMlLgYmMWU9vKkkc9OL-cGi_7QzQ5Wz9xc2MCaDkBr7oRQh-bztn-WL2BaxD3LewloXMUoitgOjjNOCxXnYz5421AK4/s320/m_fw12_techml_quantum_hood_ibsc66d34_1.jpg" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
Perhaps, time to order your pinstripe hoodie. </div>
<div class="MsoNormal">
<br /></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-59759249605215263242012-05-18T10:36:00.000-07:002012-05-18T10:36:19.391-07:00First few minutes of the Facebook listing<br />
<div class="MsoNormal">
I am sitting in front of the TV watching as the airwaves and
the social media stream get taken over with the Facebook mania. The Facebook
IPO has turned out to be the biggest media event today May 18, 2012. I am watching
Bloomberg TV now and the presenters are all Facebook as they wait for FB to
start trading on NASDAQ. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisE-0Hw-miQeZxJzFOySPiFhuNce3yNaL6TGhp10GZIbSTf0djQb7P_msiaOh6nolKlDrcwYqFNDxe3LsstJAUl0Fpv6Dx0GbUTDPfYZkKVoGNOreEYHDFKzK4bQvTOE6tMReDIriG8Xg/s1600/Mark-Zuckerberg.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisE-0Hw-miQeZxJzFOySPiFhuNce3yNaL6TGhp10GZIbSTf0djQb7P_msiaOh6nolKlDrcwYqFNDxe3LsstJAUl0Fpv6Dx0GbUTDPfYZkKVoGNOreEYHDFKzK4bQvTOE6tMReDIriG8Xg/s320/Mark-Zuckerberg.jpg" width="320" /></a></div>
<div class="MsoNormal">
Mark Zuckerberg</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The pre-trading banter from the presenters are full of
speculation on what the FB price will open at. A $70 price was mentioned based
on the report that a trader in France was getting demand from retail investors
that were ready to buy at that price. On retail stocks trading platforms like
Markets.com, FB quoted prices rose above $100 per share. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The touch of drama and tension were further intensified by
delays experienced by NASDAQ in opening trade on the FB stock. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.15 pm (London Time) Bloomberg announced that NASDAQ was
experiencing delays in opening trade on FB stock. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
This delay resulted in a fall in NASDAQ share price
and added to the tension of investors waiting for FB stock to start trading. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The news was that the opening trading volume of about 72 million was what was stalling opening the trade on the FB shares. Bloomberg
also announced that NASDAQ said the massive demand was coming from retail
investors. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Meanwhile, an analyst is speaking on Bloomberg TV on the FB
stock and says that he gets sceptical when he hears of “frenzy” and “mania”, and
advises that investors should be cautious. <o:p></o:p></div>
<div class="MsoNormal">
Watch <a href="http://www.youtube.com/watch?v=yxhgM9x1xdI">Mark Zuckerberg ringing the opening bell on NASDAQ</a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Another analyst says he can justify a price target of $70
and price of $10 for FB based on the inputs into the forecast data. Basically, saying optimistic forecasts about FB share price should be taken with a pinch of salt. Another notes that there was a lot of insider selling which should be of
concern. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.29pm Bloomberg finally announced that trade is
expected to open at 11.30 am US time <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.30 pm FB starts trading at $42.05 at exactly 11.30 am
US time <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.33 pm FB drops to $41.00 <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.34 pm FB drops to $40.36<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.36 pm it drops to $40.06<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
An analyst speaking on Bloomberg TV says FB has made
fantastic hires which can help it drive its business. That fact was not just driving stocks right now. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.37 pm FB is
selling at $40.02 <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.39 pm FB drops to $40 and then briefly flirts with
$39.99<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.44 pm Bloomberg announced that the share prices of
technology stocks like Zynga, Linkedln, Groupon and the major underwriters of
FB shares are also falling. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.45 pm, FB shares seem to have settled at about $40 per
share, flirts with $38.99 briefly then stays for a few more seconds at $39.95 <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.48 Bloomberg informed viewers that global stock
markets have lost $4 trillion this month <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.49 pm FB share price drops to $38.18 <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.51 FB flirts with $37.96 dropping below the IPO offer
price for the first time. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At 16.57 pm, Bloomberg TV live coverage of the opening
trade of the historic FB IPO comes to an end and FB is selling at $38.40<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In the opening few minutes, FB never neared the optimistic
price of $70 per share. Rather, it has settled below its opening price. Would
it ever go near the $70 price? <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Watch <a href="http://www.youtube.com/watch?v=f9MtttXI2q8&feature=fvst" target="_blank">this video</a> of Mark Zukerberg meeting My Space founder</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What do you think? <o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-22123822922149618392012-05-08T03:28:00.000-07:002012-05-08T03:33:49.322-07:00Barrels for guns and dollars<br />
<div align="center" class="MsoNormal" style="text-align: center;">
<span class="MsoHyperlink"><b><span style="color: windowtext; font-size: 12pt; line-height: 115%;">-an inside look at the stolen crude oil trade in Nigeria’s
Niger Delta<o:p></o:p></span></b></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span class="MsoHyperlink"><b><span style="color: windowtext; font-size: 12pt; line-height: 115%;"><br /></span></b></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span class="MsoHyperlink"></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">In the creeks of Nigeria’s Niger
Delta, home to the world’s third largest wetland, more than two million barrels
of crude oil are pumped and exported daily, but</span></span><span class="MsoHyperlink"><span style="color: red; line-height: 150%;"> </span></span><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">an estimated 30,000 to 300,000
barrels are also stolen. The Niger Delta is home to about 31 million people,
belonging to 40 different ethnic groups, bound by fishing, farming and hunting.
<o:p></o:p></span></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Since 1958 however, the people of the
Niger Delta have also been bound by the misery of crude oil exploration. Farmlands have been destroyed and water ways
overtaken by thick slicks of crude oil. Amnesty International estimates that nine
million barrels of crude oil has been spilled in the region since the first oil
well was dug. <o:p></o:p></span></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEKIXDkbxzwWgwHGvgz84ofb7LnQMqvmTk4AsFQeS_xKqbEsFAser7z1SieZ-q4bCtXs8DORiuwCxnz6Wonz0OUlGrc_cbVFhxQWSF5NaKB8vsQYo21ixtEfFlY-pHH6jDmjS8b9TkwPs/s1600/oil+bunkering+in+progress.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEKIXDkbxzwWgwHGvgz84ofb7LnQMqvmTk4AsFQeS_xKqbEsFAser7z1SieZ-q4bCtXs8DORiuwCxnz6Wonz0OUlGrc_cbVFhxQWSF5NaKB8vsQYo21ixtEfFlY-pHH6jDmjS8b9TkwPs/s320/oil+bunkering+in+progress.png" width="320" /></span></a></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;">An oil bunkering scene in the Niger Delta</span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The degradation of the Niger Delta
environment was revealed in a 2011 study by the United Nation Environmental
Programme (UNEP). <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“In some areas of the Niger Delta,
there was heavy contamination present, 40 years after an oil spill occurred”<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Surface water throughout the Niger
Delta creeks contain hydrocarbons with floating layers of crude oil varying
from thick black oil to thin sheets, according to the UNEP study. It cites community
actually drinking water from a well that is contaminated with benzene, “a known
carcinogen, at levels 900 times above the World Health Organisation (WHO)
guidelines. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Life in the Niger Delta is no longer
the same. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Forced out of their traditional way
of life, the people of the Niger Delta have found a new way to survive. Under
the cover of darkness, in the midst of the forests, a trade is booming. Wooden
Canoes once used for fishing have become transport vehicles for barrels of stolen
crude oil. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Crisscrossing the wetlands of the
Niger Delta are long pipelines carrying millions of barrels of crude oil. These
pipelines tap into a fraction of the 34 billion in proven crude oil reserves in
the Niger Delta. The region also holds another 186 trillion cubic feet of gas
reserves, the eight largest in the world.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">The exposed pipelines are</span></span><span class="MsoHyperlink"><span style="color: red; line-height: 150%;"> </span></span><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">the source of stolen crude oil. A copy of a report obtained by this reporter, describes how crude oil is stolen
from the exposed pipelines. Hacksaws are used to damage to pipelines. This
forces the oil company to shut down oil flow on the affected pipeline to reduce the
impact of any oil spill on the environment. As soon as this is done, the oil
thieves install bunkering points on the hacked portion of the exposed pipes and
attach hoses and suction instruments to the pipes. As soon as oil starts
flowing on the pipelines again, they
siphon the flowing crude to waiting locally made barges; said to be able to
store up to 40,000 barrels of crude oil at a time and large canoes called
“Cotonu boats”. <o:p></o:p></span></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The oil thieves have two markets for
their stolen oil, the local refineries in the creeks and offshore large tankers
waiting patiently for such cargoes. The report confirms that the portion that is sold to the local
refineries in the creeks is refined into diesel, transferred to a storage depot
and then sold in the local Nigerian market. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">A local journalist familiar with the
Niger Delta says the stolen and locally refined diesel is sold at about N150
(59 pence) per litre compared to the official price of N190 (75 pence) per
litre for the imported none locally refined diesel. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“In this region, if you want to be a
small-time bunkering baron, you raise N10m (£39,000) and pay to a syndicate,
then you get supplies as your share. Many people in the big dark jeeps you see
here are in it. People introduce themselves as being in 'oil' business. That is
it. It is no big deal here.” <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Corrupt security agents are behind
the trade, he says, explaining how large barges of stolen crude oil are able to
move around the creeks unchallenged. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“If you go to Bonny Island, some
soldiers lodge N3m (£12,000) daily in their accounts. My bank source tells me
that some top brigade commanders get N25m (£98,000) lodgements at a time. There
is piecemeal payment to security operatives and also one time pay-offs. Has government agencies questioned the source
of money?” <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The exact number of barrels of crude
oil stolen is not certain. But various reports put it between 30,000 to 300,000
barrels of crude oil every day. Ian Craig, Shell’s director for Sub Saharan
Africa told an oil and gas conference in Abuja in December 2011 that Nigeria
could be losing as much as 150,000 barrels of crude oil a day to the oil
thieves. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Tony Attah, Vice President at Shell
in Nigeria in an emailed response to this reporter’s enquiry disclosed that the
“theft of equipment or leaks caused by crude oil thieves drilling into
pipelines or opening up wellheads to steal oil, accounted for 74% of all oil
spill incidents and 73% of all oil volume spilled from our facilities in the
delta between 2007 and 2011.”<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">He puts the estimated cost of oil
theft at “around $4.5bn a year to the Nigerian state and operators in lost
revenue” <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: Times, 'Times New Roman', serif; font-size: large;"><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">A special report by the</span></span><span class="MsoHyperlink"><span style="color: red; line-height: 150%;"> </span></span><span class="MsoHyperlink"><span style="color: windowtext; line-height: 150%;">United States Institute of Peace
(USIP) titled “Blood Oil in the Niger Delta” estimates that the loss to the
Nigerian economy from stolen crude oil between 2003 to 2008 could be as high as
$100 billion. <o:p></o:p></span></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Despite the significant loss of
revenue to the Nigerian state, the government seem reluctant to deal with the
massive theft of crude oil taking place in the creeks. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Andrew Walker explains the reason for
the Nigerian government reluctance, in a report in 2009 for the BBC titled
“Blood Oil dripping from Nigeria” quoting a source close to the Nigeria’s
former president Olusegun Obasanjo as saying that “This is an industry that
makes £30m ($60m) a day, they'd kill you, me, anyone, in order to protect it” <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">"If the president goes after
them, they could destabilise the country, cause a coup, a civil war. They are
that powerful, they could bring the state down." <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Toyin Akinosho, a previous employee
of Chevron and publisher of “Nigeria Oil and Gas” confirmed the fears expressed
by the BBC source in a phone chat with this reporter. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“It is not unusual to hear militants
in the Niger Delta boasts that they will make the government uncomfortable if
they are prevented from stealing crude oil. They always threaten that they will
blow up the pipelines.”<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Nigeria earns 90% of its revenues
from crude oil exports. So blowing up the pipelines could collapse the
government. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">But the inability of the government
to deal with the situation could also be traced to top level political
involvement in the oil theft trade. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Top level involvement in the stolen
crude oil business may explain how in 2004 a detained Russian Ship carrying an
estimated $2.6 million in stolen crude oil vanished. The Nigerian Navy detained
the ship and claimed they handed it over to the Nigerian police. The Nigerian
police claimed that they never received any ship from the Navy. The Nigerian
legislature launched an investigation into the missing the ship. The report of
the investigation was never made public.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Since then, several more ship detainments
have been reported in the media. In 2011, security agencies are said to have
arrested 145 people and seized among others 18 tankers, 22 vehicles, 16 barges,
and 35 locally made boats. Sources familiar with the stolen crude oil trade
however say these arrests target just the foot soldiers fronting for local and
international financiers. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">There is evidence of well-established
international syndicates facilitating the stolen crude oil trade in Nigeria.
The route to the international markets for Nigeria’s stolen crude oil is a
collaborative effort between the foot soldiers in the creeks, the communities
hosting the oil wells and pipelines, the Nigerian Navy and security agencies,
and an international syndicate of oil thieves that finance the whole process. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The international syndicate involves
well established players in markets for stolen Nigeria crude oil in West African
countries like Sao Tome, Liberia, Senegal, Cote d’Ivoir, Gambia supported by
Moroccan, Venezuelan, Lebanese, French and Dutch Financiers. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The stolen oil is usually exchanged
for cash, illegal drugs and weapons from the ships lurking out at seas waiting
for the stolen oil to be delivered. The large tankers that buy the stolen crude
oil take them directly to spot markets like Rotterdam or directly to refineries
in places like Cote d’Ivoire a neighbouring West African country. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“There are large international
syndicates involved in this operation, which also handle the money laundry for
the international players” according to the USIP report mentioned earlier. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The report notes that the players in
the creeks are just the front end of a complex international trade in stolen
crude oil.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“While the Niger Delta youth may
handle the local tapping and loading, international players from Eastern
Europe, Russia, Australia, Lebanon, The Netherlands and France all play roles
in financing, transporting, and laundering the money associated with blood oil.
One money trail followed a path from Senegal and Cote d’Ivoir, through French
banks and French credit agencies to Syria and Lebanon.” The USIP report
revealed. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The report reveals deep involvement
in the stolen oil trade of Nigerian Lebanese (those of Lebanese descent, born
or naturalized in Nigeria) “especially those with good political connections” <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">Attah, Shell’s Vice President says
only international collaboration can stop the booming trade in stolen crude oil
from Nigeria. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;"><br /></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">“Nigeria needs the cooperation of the
international community to checkmate the organised crime syndicates engaged in
crude theft. Buyers can demand assurance
that the oil they buy comes from a legitimate source.”<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span class="MsoHyperlink"><span style="color: windowtext; font-family: Times, 'Times New Roman', serif; font-size: large; line-height: 150%;">The Nigerian state may be too compromised
to stop the massive oil theft taking place, unless as Attah suggests, the
international community intervenes. <o:p></o:p></span></span></div>
<br />Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-17192398994739407982012-04-23T17:04:00.000-07:002012-04-23T17:05:49.196-07:00The brotherhood of greed and profits -how UK banks help Politicians to loot Nigeria (II)<br />
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<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Joshua Dariye another fugitive governor loved by UK banks <o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Joshua Dariye is another governor
who use of British banks to launder money was revealed in the Global Witness
report. The former governor of crisis prone Plateau State is said to have
brought into the UK £2.85 million (N741 million) of suspected stolen funds
through two banks, NatWest and Barclays. Following his arrest in 2003, Police
also recovered £80,000 (N21 million) in cash from his London home. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s1600/goodluck_1636002c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC8aUkV97uHYqrlIp9ihMjq4Af8dlnX9E_fzSjN7wS9_0h0a11Tp-Xo6WJtR_yDxPXGyOiheJCuS1xcsGx9qZqNtFdOQnkhyaFRuElAVnnv7Yyirgpkx6MntiHDkeQDfZ4c_zfbci7X3A/s320/goodluck_1636002c.jpg" width="320" /></span></a></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Goodluck Jonathan-Nigeria's President</span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWK4lm7hTWPdA2rs3S1OQLWWj_WuJuo-NJTPS6VCW36yEM0UxnC2sfHvy3Ocr51Wv_rEVU0wm9MLx2ED9MKfBXf1HoxLvyTGnBilfPEV1M4nZVSLXtjqoOZPH42RWcPy75OJ_p7rf1GAo/s1600/David-Cameron_1801517c.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWK4lm7hTWPdA2rs3S1OQLWWj_WuJuo-NJTPS6VCW36yEM0UxnC2sfHvy3Ocr51Wv_rEVU0wm9MLx2ED9MKfBXf1HoxLvyTGnBilfPEV1M4nZVSLXtjqoOZPH42RWcPy75OJ_p7rf1GAo/s320/David-Cameron_1801517c.jpg" width="320" /></span></a></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">David Cameron-Prime Minister-UK </span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The report revealed that about £1.17
million (N304 million) of the £2.85 million funnelled into the UK by Dariye was
done through the accounts of one Joyce Oyebanjo at NatWest Bank. From July 2003 to March 2004, Dariye made seven payments into
Oyenbanjo’s NatWest Account in different instalments that came to about £1.17
million or £1.48 million (N385 million) including interest. At the time of
Dariye and Oyebanjo’s arrest only £198,045 (N385 million) remained in the
account. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">As the money was transferred to
Oyebanjo’s account, she issued several cheques to Dariye on his frequent visits
to London. Her account thus became a convenient conduit for Dariye to get money
into the UK. In April 2007, Oyebanjo was convicted for money laundry charges
and sentenced to three years in prison. Dariye remains in Nigeria a free man
after fleeing from justice in UK. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Abacha was another top Nigerian
leader known to have used UK banks to launder millions of pounds. According to
an FSA report, Abacha used 23 different London Banks to launder about £900
million. A report by the Financial Times identified three of the banks to be
Barclays, NatWest and UBS. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">An African banker, working in the
London financial district, who prefers to remain anonymous, said he was marvelled
at the complicity of UK banks in helping launder money despite all the checks
that are in place to prevent it from happening. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“One question I need to ask is
what the UK police and anti-fraud officials did at the onset of this
scheme.”</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> “Since the end 2001 and early 2002, there has
been anti-terrorist financing laws in the financial world and financial firms
have been mandated to report unusual cash transactions and systems are supposed
to be in place to alert officials, so where were they, did they look the other
way thinking that it will stop? Did they not act because they were afraid of
others finding out and as such damaging the image of London as a financial centre?”<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Speaking on the Ibori case he
said “To think that Ibori could go to Barclays at Knightsbridge and deposit
£1.5m in cash is just extraordinary. How did Barclays accept that? But if I
travel with more than £2,000 on me, I will be questioned for money laundering and
possibly the cash ceased. Is this not double standard depending on your status?
<o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“But Coming to think of it, he
was smart enough to have gone to Knightsbridge branch of Barclays where –almost
certainly – anyone who opens an account with that branch is likely to be a rich
person. He would have been turned away and the cops called had he ventured into
any Barclays four miles south in Clapham or Brixton. Makes you wonder if
Barclays anti money laundering procedure is tight.”<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“Ibori’s case raises serious
questions about the due diligence that Barclays and the other banks carried out
on Ibori and his associates. What checks did these banks do to ensure that the
funds they were handling were not the proceeds of corruption?”<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“It is sad what African leaders
are doing to us and our unborn children, it is a shame.” <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">He narrated an experience he had. “I was at a lunch meeting with some officials
from Luxembourg and a convoy of cars drove by, the guy I was at launch with told
me that the convoy belonged to an African head of state who came to Luxembourg
with his army of ministers to beg money but the funny thing was that the
authorities had a dossier of the president and his convoy and how much money
they have stashed all over the world which is far more than what they have come
to beg for.” <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Another banker who also works in
the London Financial district however explained why UK banks are so eager to
take stolen money from Africa’s political looters with little or no questions
asked. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> “We know how this works, any stolen money
moving from one bank to another will lose at least 5%, that coupled with broker
and lawyer fees will at least attract another 15% charge and the asset
manager’s initial fee of at least 5% tells us that any money taken illegally
away will automatically loose at least 25%. This is money we are giving people
richer than our people, what are we doing to ourselves” He asked. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">However, the Financial Services
Authority (FSA), the UK bank regulator, is already taking some action to reduce
money laundry in UK banks. They carried a review in 2011 which showed that
British banks were systematically failing to carry out the required anti-money
laundering checks especially when dealing with senior foreign politicians. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Nigerian banks are the other side of a bad coin.<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Analysts however say that the
British Banks are just one side of a bad coin. The other side of the bad coin
are Nigerian banks. Most of the money that end up in British banks is first
passed through Nigerian banks who are supposed to know the status of the
governors. For example, the Global Witness Report discloses that of the £2.7
million held in RBS bank account by Alams in 2005, £1.6 million (N416 million)
was transferred into that account by now defunct Bond Bank, one of the banks
that collapsed into the Skye Bank Group during the 2006 bank mergers and
acquisitions in Nigeria.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The Financial Action Task Force
(FATF) last February classified Nigeria among countries with strategic Anti
Money Laundry/Combating Terrorism Financing deficiencies that have not made
sufficient progress in combating those deficiencies or have not committed to an
action plan to working with the FATF address these deficiencies.<o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglcGf5s4xRAy0xFW-dXOs64gHOPkY7luaavpsqT44CfvoExuo5jy3U4mw7v6talu3oCAtEMyDeqm2Pw9VfRqvGycyyF4PhoP3FUaDwM4duW8D6XA9b4kYAwN6OhV2xZEzCyNMxJeU6uHY/s1600/lamido_sanusi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglcGf5s4xRAy0xFW-dXOs64gHOPkY7luaavpsqT44CfvoExuo5jy3U4mw7v6talu3oCAtEMyDeqm2Pw9VfRqvGycyyF4PhoP3FUaDwM4duW8D6XA9b4kYAwN6OhV2xZEzCyNMxJeU6uHY/s320/lamido_sanusi.jpg" width="212" /></a></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: x-small;">Sanusi Lamido Sanusi-Governor, Central Bank of Nigeria</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Insiders in the Nigerian banking
industry however note that competition for government deposits is a facilitator
of political corruption in Nigeria. Most banks in Nigeria will do anything to
get a state government’s account which usually runs into several billions of
cash inflows every month as crude oil revenue is shared. To get this state
government account, bank managements usually have to incentivise the governors
by agreeing to secret terms that ensures that they keep these accounts from
competitors. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Some of the bargains reached with
the governors who are the ones who decide where these account should be kept
include agreeing to facilitate these transfers even when they know it is State
funds that are being transferred illegally. The sad part insiders say, is that,
the banks also fund the States corruption with loans which costs are then borne
by ordinary Nigerians. Most State governments are known to committed their states to significant debts from private banks most of which are transferred into their personal accounts
abroad. Most State governments are known to be significantly indebted to banks
without the citizens knowing what the money borrowed from the banks were used
for. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“The banks just lend the
governors money without asking questions. Money is learnt to governors for all
sorts of things and at the end of the day, no one accounts for how this money
is spent. Yet the State’s future allocations and tax revenues are tied to the
repayment of these loans. A good number of States have mortgaged the future
and welfare of their citizens to satisfy their present greed. And they are
doing these with the active collaboration of Nigerian banks” an insider who
prefers to be anonymous said. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Analysts insist that if the governors
have to be stopped from stealing their states blind, Nigerian banks and the
Central Bank of Nigeria (CBN) has to enforce more stringent anti money laundry
legislations. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">However, the increased scrutiny
from Britain has forced Nigeria’s political looters to start diverting funds to
places like China, Brazil, India and other parts of the world where there is
less scrutiny. Dubai and other friendly Gulf states in the Middle East have
also become a major destination of stolen funds from Nigeria. Top Nigerian politicians are said to be very
active in the Dubai property market where they are said to prefer paying cash for properties while living in the most expensive hotels. Taxi drivers on the
streets of Dubai are most likely to talk about the escapades of Nigeria's money
bags once you identify yourself as a Nigerian in Dubai. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Those who know say that the
increased scrutiny is also driving stolen funds into the local Nigerian
property market and the over the counter securities trading market in Nigeria. A
top Nigerian telecom firm’s over the counter shares is said to be a preferred
investment choice for Nigerian politicians because of its high cost and good
returns. Its high cost means that politicians can use it to stash away millions
of Naira without raising too much interest. It is even more attractive since it
is traded over the counter with little scrutiny. Private equity funds are also
said to be getting some of these stolen funds from Nigerian politicians who are
doing everything to hide their loot in the face of increased scrutiny. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> The UK however still remains a preferred destination by Nigeria's political looters, most of whom cannot resist the assumed prestige
of owning a property in London and sending their children to UK schools. This means that Nigerian political
looters still want to launder money in the UK. For financial regulators in Nigeria and the
UK, the challenge will remain how to break this brotherhood of the banks and
Nigeria’s political looters, oiled by profits and greed, which will endure as
long as there are banks to help them cover their tracks for a
share of the loot. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-1954965033635876452012-04-21T10:54:00.000-07:002012-04-21T10:54:30.604-07:00The brotherhood of greed and profits -how UK banks help Politicians to loot Nigeria (I)<br />
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In the dock on Tuesday in cold and rainy London, James
Ibori, former Governor of Nigeria’s oil rich Delta State stood alone. “His
Excellency”, stood humbly before a judge at Southwark Crown Court. Ibori waited
with racing heart for the judge to tell him how long he was going to stay in a
cold lonely UK jail. He was eventually told 13 years though likely to serve
four and half years. <o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnxS3eyqi-A65fghj2RkMZdjXpih1MMR-aGp8OH3ZEVGjPqGk94Q-gT_MbRkQN1oVoRUF_N4LDQ3aKwBKJo4SWswZLfA0lcGJTnDXTBeedl5rN5BPUbVmP2aSCO9VCvjXJNTlYi1NgUJM/s1600/James+Ibori.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnxS3eyqi-A65fghj2RkMZdjXpih1MMR-aGp8OH3ZEVGjPqGk94Q-gT_MbRkQN1oVoRUF_N4LDQ3aKwBKJo4SWswZLfA0lcGJTnDXTBeedl5rN5BPUbVmP2aSCO9VCvjXJNTlYi1NgUJM/s320/James+Ibori.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In jail, Ibori is not going to be alone. He will be with his
wife, mistress, sister and even lawyer all serving different jail terms ranging
from five to ten years for helping Ibori launder millions of pounds stolen when
he was governor of Delta State between 1999 and 2007. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The only partners in crime that Ibori will miss in jail are
his bankers. While all close acquaintances that helped Ibori launder the
millions he stole as Delta State governor are behind bars, his bankers who
facilitated the process are walking free. Yet, they made millions from helping
Ibori move the funds around. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The leading prosecutor in Ibori’s case Sasha Wass QC, revealed
in court how Ibori used multiple accounts at Barclays, HSBC, Citibank and Abbey
National to launder the millions he stole. The prosecutor revealed that these
banks helped pass around millions of pounds, some of which were used to
purchase expensive properties in London and South Africa. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> Giving insights into
how the money moved around between the banks, the prosecutor revealed how US$4.8
million (N1.25 billion) was transferred from a Barclays account belonging to a
company in which Ibori was formerly a director to another account at Barclays
controlled by Ibori’s lawyer, Badhresh Gohil who is currently serving a 10 year
jail sentence for helping Ibori launder money. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The Prosecutor revealed that the funds were passed through
two Swiss accounts, including one at a branch of Schroders in Zurich, a global
asset management company which manages about £187 billion on behalf of global
clients. This money was used as part payment for a private jet for Ibori. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The prosecutor also revealed how Ibori had numerous Barclay’s
accounts. They described how in one case between 1999 and 2006 Ibori deposited
£1.5 million (N390 million) in cash in a Knightsbridge branch of Barclays. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Also Ibori had two bank accounts in America at Citibank and
was said to have ran up a $920,000 (N143 million) American Express credit bill
between 2003 and 2006. He bought a $1.8 million (N279 million) house in
Houston, as well as moving at least $500,000 (N78 million) through his lawyer’s
client account at now liquidated AIDT bank in Denver, Colorado.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Among the properties that Ibori splashed money include a
house in Hampstead, North London, for £2.2m (N572 million), a property in
Shaftesbury, Dorset, for £311,000 (N81 million), a £3.2m (N832 million) mansion
in Sandton, near Johannesburg, South Africa, a fleet of armoured Range Rovers
valued at £600,000 (N156 million), £120,000(N31 million) Bentley, and Mercedes
Maybach for 407,000 euros (N69 million) that was shipped directly to his
mansion in South Africa. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Though the value of the fraud that Ibori was charged with in
court was put at £50 million (N13 billion), but the judge admitted that the
actual money stolen by Ibori is unquantifiable and could be as much as £200
million (N52 billion). <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">UK banks love affair
with Nigeria’s political looters <o:p></o:p></span></b></div>
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<div class="MsoNormal">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: x-small;">Goodluck Jonathan-President, Federal Republic of Nigeria</span></b></div>
<div class="MsoNormal">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></b></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Interestingly, in the past many of the banks now named in
Ibori’s case were also involved in laundering money on behalf of former
Nigerian governors. It would be recalled that Alamieyeiaseigha, (Alams for
short) who was former governor of Bayelsa state, had to jump bail and escape
from the UK when he was arrested in September 2005 on money laundering charges
by the metropolitan police. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Global Witness, an NGO which campaigns for transparency in resource
rich countries, in October 2010 released a report titled “<b>International Thief Thief</b>” revealing the details of how UK banks
helped Alams launder millions of pounds in the UK when he was governor. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> The accounts used by
Alams in UK to launder millions as a governor include two different bank
account in UBS one with £306,000 (N80 million) as at December 2005 and another
with £1.05 million (N273 million) as at the same date. He also had three
different accounts with HSBC. One of the accounts had £420,000 (N109 million)
as at December 2001, another had £110,948 (N29 million) and third one had
$178,947.50 (N47 million) as at February 2003. Alams also had £2.65 million
(N689 million) as at November 2004 in Royal Bank of Scotland (RBS), which is
currently majority owned by the British government. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">He had two different accounts with Barclays Bank, one with
£205,376 (N53.3 million) as at March 2005 and another with Barclays Cyprus with
£3 million(N780 million) (held in six different accounts) as at September 2005.
Finally, Alams also had another £290,000(N75 million) in Natwest Bank as at
August 2005. All the accounts were opened by him between 1999 and 2003 when he
was still the governor of Bayelsa State and he was barred from opening foreign
banks accounts. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In the detailed report, the Global Witness describes how UBS
helped Alams launder millions of pounds in UK. It shows that Alams started
stealing money from the accounts of Bayelsa State just three months after
becoming a governor when he approached UBS to open an account at its Mayfair
Offices on Curzon Street, London. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Shortly after opening the account, Alams is said to have
told UBS staff that “he anticipated a sharp rise in his deposits from $35,000
(N9.1 million) to $1.5 million (N390 million). Alams is said to have filled a
form stating that before he became governor, he was a financier and fertilizer
magnate who made his money before he became governor. He said that he had never
held accounts outside Nigeria before but because of rising tension in the
country, he seeks to safeguard his vast wealth by transferring money outside
the country. <o:p></o:p></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-EflnHarCqEp6i3jxcfyJUGFFbhqDAxHdKs3dYeaviBpg9EE5Q7pWCMhyphenhyphenN5NUSadHpXS4UEeE7iZg-rArow8xEWfB6JXlhw80LYdO81orbKlK2WsDhiCwi_izLdZ3_62DkESohQgV6AY/s1600/Diepreye+Alamieyeseigha.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-EflnHarCqEp6i3jxcfyJUGFFbhqDAxHdKs3dYeaviBpg9EE5Q7pWCMhyphenhyphenN5NUSadHpXS4UEeE7iZg-rArow8xEWfB6JXlhw80LYdO81orbKlK2WsDhiCwi_izLdZ3_62DkESohQgV6AY/s1600/Diepreye+Alamieyeseigha.jpg" /></a></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: x-small;">Diepreye Alamieyeseigha-laundered billions through UK banks </span></div>
<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: x-small;"><br /></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Following the opening of the account, in early 2001 one
Aliyu Abubakar, identified in court documents simply as Aliyu, who was said to
have been given a £19 million (N4.9bn) contract to construct the Bayelsa State
government lodge paid $1.5 million into Alams UBS account. These payments were
said to have been made at the same time, Aliyu was also arranging to buy a £1.4
million (N364 million) house in Kilburn area of London for Alams. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Also Alams is said to have told UBS, when asked for the
sources of these funds that he sold a palace he owned in Abuja to Aliyu who
Alams described as an oil businessman. Yet, when Alams made his asset
declaration forms in 1999, he declared his total assets to be worth just
£210,000 (N55 million) and he had no property in Abuja in his asset declaration
forms. Later, when Alams tried to
prevent the forfeiture of his money in UBS accounts to the Nigerian government,
he is said to have claimed that the money were donations from his close friends
towards the education of his children. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The Global Witness Report states that “By December 2005,
Alams account in UBS had a balance of $1.8 million (N279 million) in an account
that was in the name of a trust named Falcon while in another account in his
personal name, he had $535,000(N83 million). This was despite declaring in his
2003 asset declaration form that he was worth only £485,400 (N126 million) with
an expect income of £22,680 (N6 million). <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In 2001, Aliyu was said to have facilitated the purchase of
£1.4 million (N364 millin) property on 14, Mapesbury Road, in Kilburn in North
West London for Alams using his account with HSBC. The house was bought in the
name of a British Virgin Island registered Shell company called Salomon and
Peters which was wholly owned by Alams. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Also eight months after Aliyu bought a property for Alams, he
is said to have approached HSBC to open an account with the bank with an
opening balance of £420,000(N109 million) paid in by Aliyu. In total, Alams is
said to have opened six different accounts with HSBC between December 2001 and
2003, all at the same branch. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Alams taste for London properties grew more expensive the
longer he stayed as governor. The Global Witness report shows that in December
1999, few months after becoming a governor, he bought flat 202 at Jubilee Heights in Cricklewood,
northwest London in the name of his company, Salomon and Peters and paid for by
one Mr Soberekon “who had received a contract to repair and overhaul two gas
turbines in Bayelsa State” The payment was made through London Trust Bank Plc.
Interestingly though London Trust Bank describes itself as non-bank financial
institution registered with the HM Revenue and Customs, the company is also
listed by the UK Financial Services Authority (FSA), which regulates the
financial system in UK as a “unauthorised internet bank”<o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Also in July 2003, Alams bought a fourth London property for
£1.75 million (N455 million), a luxury penthouse apartment, 247 The Water
Gardens in the heart of London’s West End. This was the house that Alams was
arrested and when searched, the metropolitan police recovered £1.0 million
(N260 million) in cash. <o:p></o:p></span></div>
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<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Another Bank that received bribes on behalf of Alams was the
Royal Bank of Scotland (RBS) which received £1.5 million(N390 million) paid
into an RBS account held in the name of another offshore Shell company
registered owned by Alams called Santolina. Alams was the sole shareholder and
director of Santolina. Between January
2004 when the Santolina Account was opened and March 2005, the account received
26 deposits totalling £2.7 million (N702 million). On 1 November 2004, a transfer
of £949,000 (N247 million) was made out of this account to pay for a penthouse
apartment in the upscale Waterfront development in Cape Town. <o:p></o:p></span></div>
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<div class="MsoNormal">
<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Alams in 2007 pleaded to six counts of corruption in
Nigeria. He was sentenced to two years in imprisonment on each count but spent
just a few days in prison on the excuse that he had served part of the time
already. His stolen assets were sold and the money returned to Bayelsa State
government. Though the Bayelsa state government claimed that the money will be
used to build what it called a Transparency Plaza in the state, it is not clear
if this plaza was ever built. <o:p></o:p></span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Please, is there anyone reading this blog, who is sure what
this recovered loot from Alams was ever done with in Bayelsa State? Your
comment will be appreciated. It is also interesting that Timipre Sylva, the
last governor of Bayelsa State is also now facing a six count charge of
stealing N2.6 billion (£10 million) from the State. <o:p></o:p></span></div>
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<div class="MsoNormal">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Read the second part
of this post tomorrow on how UK banks helped Joshua Dariye and Abacha launder money
in UK and the role played by Nigerian banks. <o:p></o:p></span></b></div>
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<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br /></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Why do you think
corruption is so endemic in Nigeria? Please share your comments below.. </span><o:p></o:p></b></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-70354663193817113622012-04-09T12:35:00.002-07:002012-04-09T12:38:09.199-07:00What does Boko Haram really want?<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">It is usual to hear that Nigeria’s deadly Boko Haram sect wants the implementation of sharia in Nigeria. In the past one year, the group has launched a bloody campaign that has claimed the lives of about 1000 Nigerians. <o:p></o:p></span><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrnjOCC2cEQawW45YyAzQbw_fqerNddHRUVuOGlRcfmKmaNJKvYYW-ASmL60vfhSa6op3B0LkrW4jRb5_oU06wlqra8fRORlDJqXHzhglcyqt60jrgmDb_Omz3QZVI1knWI26tT-XgIis/s1600/Kano-Multiple-Bomb-Blasts.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrnjOCC2cEQawW45YyAzQbw_fqerNddHRUVuOGlRcfmKmaNJKvYYW-ASmL60vfhSa6op3B0LkrW4jRb5_oU06wlqra8fRORlDJqXHzhglcyqt60jrgmDb_Omz3QZVI1knWI26tT-XgIis/s320/Kano-Multiple-Bomb-Blasts.jpg" width="320" /></a></div><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Interestingly, if a critical break down of the lives claimed by Boko Haram attacks is done, it may surprise many to know that more Muslims may have died from Boko Haram attacks than Christians. Yet the common assumption is that Boko Haram is fighting for an Islamic state in Nigeria. If that is the case, then the group must be defeating its own fight by killing the same people it is claims to be fighting for. <o:p></o:p></span></div><div class="MsoNormal"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixw6SkBURvlPNCvJnTtWHh2S0nG-ChB_KEu7ydpz6iHeS4_USuHhh5RuZKfgWLs9n04qlQMJk9xx9F7HhdsHusl0ikT-ArxkGMzTSDnVZ5XuriY419KNyczaz3YuQTpsO2uTO1oTBr4Xg/s1600/117936-boko-haram.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="195" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixw6SkBURvlPNCvJnTtWHh2S0nG-ChB_KEu7ydpz6iHeS4_USuHhh5RuZKfgWLs9n04qlQMJk9xx9F7HhdsHusl0ikT-ArxkGMzTSDnVZ5XuriY419KNyczaz3YuQTpsO2uTO1oTBr4Xg/s320/117936-boko-haram.jpg" width="320" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7vWoRkq00rfa0ULRMWQZexnMzVhf0DcEl6Ww3PRbdcSOPwRvlQZ9DSPbGzaf1gA142dbhsBqK7GI_USDsTWmo13oG3oT7bQfiu8xYfiOUvWdYs_AcAJlBZpkm6rMqR4XfyqZyb-VO3k8/s1600/boko-haram1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7vWoRkq00rfa0ULRMWQZexnMzVhf0DcEl6Ww3PRbdcSOPwRvlQZ9DSPbGzaf1gA142dbhsBqK7GI_USDsTWmo13oG3oT7bQfiu8xYfiOUvWdYs_AcAJlBZpkm6rMqR4XfyqZyb-VO3k8/s320/boko-haram1.jpg" width="320" /></a></div><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">It is usual to see in media reports that Boko Haram demands the adoption of Islamic law or Sharia in Nigeria. This statement seems to lack merit. Is it the media that is not getting right the demand of Boko Haram or Boko Haram that is not sure of what exactly it wants from Nigeria and Nigerians? <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">My confusion about Boko Haram’s demand for Sharia implementation in Nigeria is because Sharia law is already implemented in Nigeria. As at last count, 12 states are already implementing Sharia law. Nine of these states implement Sharia law in full. These States are Zamfara which kicked off the implementation of Sharia law as far back as 2000. The other states that implement sharia fully in Nigeria are Kano, Sokoto, Katsina, Bauchi, Borno, Jigawa, Kebbi and Yobe State. Three other States have imposed Sharia law in parts of their States because of the large segments of non-Muslims in parts of their states. These States are Kaduna, Niger and Gombe State. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Most of these states have been implementing Sharia law for several years now. These States are predominantly Muslim states and have chosen to do so. It is therefore confusing if Boko Haram will be said to be fighting for the implementation of Sharia law. Where else do they want Sharia Law? All over Nigeria? Will that be fair considering that there is a predominance of Christians in other parts of the country? Would it be fair if Christians were demanding that all Muslims become Christians even if they did not want to? <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Then there is these other claim in the media that Boko Haram hates western education and wants it abolished. This demand by Boko Haram, if true is also confusing. This demand is confusing because all over the North, Koranic schools are run concurrently with western schools. There are parents who voluntarily choose to send their children to only Koranic schools or Western Schools or both? What is wrong in having a choice to decide what form of education or knowledge to pursue? Is it not true the mathematics, the foundation of western education has Arabic origins? Why would such valuable knowledge that has benefitted the West be a taboo to those that gave it to the world? <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">It is regrettable that an initial effort at dialoguing with Boko Haram was discontinued because it was leaked to the Press. In as much as it was regrettable that the negotiation process was leaked, it is even more regrettable that it was abandoned because of the leak. Now more people are dead. Families are being destroyed, business activities in Northern Nigeria are at standstill and the violence is taking a heavy toll on the economy and social activities in the North. No one is safe any longer in Northern Nigeria, not even Muslims who are equally being attacked by Boko Haram. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">As I am writing this, a day after Easter Sunday when Boko Haram detonated a car bomb that has claimed 38 lives, most of whom were poor Okada riders and taxi drivers, Reuters report that in Yobe state, where Sharia law is already in operation, suspected members of Boko Haram on Sunday stormed the home of local policeman Hassan Isa and shot dead his 6-year old daughter, injuring two of Isa's other children, a police spokesman there told Reuters. Even Children yet to understand what Boko Haram stands for, are now in the line of fire. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> The BIG question for Boko Haram is if the killing of fellow Nigerians is the best way they prefer to advertise their ideology or beliefs? Is the best advertisement of their beliefs the blowing into pieces innocent Okada riders, worshipers and gunning down people walking on the streets of Northern Nigeria struggling to make a living in a country that has offered them little or nothing since they were born? When will the killing stop? Is it when no one can walk safely in any city in Northern Nigeria or when they have killed everyone that does not agree with the Boko Haram ideology? Is killing the Boko Haram answer to the inability to convince others of the righteousness of their ways? <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Definitely, blowing up and shooting down unarmed civilians is a poor advertisement of any ideology that Boko Haram stands for. Whatever BoKo Haram demands may eventually be, that demand will only make sense when they realize that other Nigerians have a right to life, just the same way they do and that blowing up innocent Nigerians leaves them with no Nigerian to support their cause, whatever that may be. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-10153948574236412322012-04-06T09:11:00.000-07:002012-04-06T09:11:10.027-07:00World Bank Presidency-Okonjo-Iweala’s Challenge<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Ngozi Okonjo-Iweala wish to emerge the President of the World Bank, a job with $420,920 per annum pay package excluding a lucrative pension package, is really much like the proverbial camel attempting a passage through the eye of the needle. Standing tall against her ambition is America’s might and Obama’s pride as well as long years of tradition. <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZCb7C5x5ZdsY1gJb01qqLybNo3G3_8lM_G2gj7sl_zFl463qR5UTv7SeN1Y7PPyj-k5wEEGRnXEi01SG5x7u7KEWVEyNpYUF34MWON1TZJ9ad9MFmFOUvkElY55L5o2BIH_kvIrCoSeo/s1600/a86bd_ngozi-Okonjo-iweala.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZCb7C5x5ZdsY1gJb01qqLybNo3G3_8lM_G2gj7sl_zFl463qR5UTv7SeN1Y7PPyj-k5wEEGRnXEi01SG5x7u7KEWVEyNpYUF34MWON1TZJ9ad9MFmFOUvkElY55L5o2BIH_kvIrCoSeo/s320/a86bd_ngozi-Okonjo-iweala.jpg" width="259" /></span></a></div><div class="separator" style="clear: both; text-align: center;"><b><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Ngozi Okonjo-Iweala</span></b></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The tradition has always been for America to nominate the President of the World Bank while Europe nominates the Managing Director of the International Monetary Fund. This tradition has been maintained for decades despite the fact that as at when it was put in place, the World Bank and IMF’s membership were nowhere near its current 187 member countries. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The tradition of America and Europe maintaining their traditional leadership of both world bodies is maintained by the voting structures in place. The World Bank President is elected by the 25 member <a href="http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/BODEXT/0,,contentMDK:22494475~menuPK:64020004~pagePK:64020054~piPK:64020408~theSitePK:278036,00.html" target="_blank">Executive Directors</a> of the World Bank which represent its 187 member states. The United States, Germany, Japan, United Kingdom and France are each allowed to nominate a member of the Executive Board of the World Bank. Recently, also Russia and China and Saudi Arabia have joined the countries that nominate a member to the Executive Board. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The remaining 180 members of the World Bank are then allowed to elect the remaining 17 members to the Executive Board of the World Bank with each member representing several countries. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><a href="http://siteresources.worldbank.org/BODINT/Resources/278027-1215524804501/IBRDEDsVotingTable.pdf" target="_blank">Voting</a> among the Executive Board for the President is not also done by one man one vote or by one country, one vote. Voting power is distributed among member states according to the financial contribution of each member state to the capital of the World Bank. In this wise, the US has the largest votes among the Executive directors followed by each of the European Countries and Japan that are allowed to select an Executive Director. The United States, Germany, Japan, United Kingdom and France, between these five countries hold 35% to 45% of the votes at the World Bank Group. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Europe will most certainly vote for the US nominee for the World Bank President. It is a tradition and also pay back time since the US also will always support the European nominee for Managing Director of the IMF. Japan will traditionally vote with the US as a traditional ally and besides the US nominee is originally from a neighbouring country in Asia. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Okonjo-Iweala may have had a chance if all emerging countries were to back her up. However, with the backing of Russia, which is also represented by a single member at the Executive Board, other emerging economies have put forward <a href="http://www.project-syndicate.org/commentary/what-should-the-world-bank-do-" target="_blank">Jose Anthonio Ocampo</a>, a well-respected economist from Brazil as their nominee for President of the World Bank. Jose was recently endorsed as the best candidate for the job by 100 economists even as Ngozi has been endorsed for the job by former staff of the World Bank, the Financial Times and The Economist all respected publications. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Even without another candidate dividing the votes of the emerging markets, it would have been an uphill task for Okonjo-Iweala to emerge World Bank President purely based on the merit of her position. The truth is that the moment Obama nominated <a href="http://www.carnegieendowment.org/2012/04/03/dr.-kim-comes-to-world-bank/a67z" target="_blank">Jim Yong Kim</a> for the World Bank job, any other person seeking that job effectively was non-starter. The large voting power held by the US in the other multilateral institutions of the World Bank ensures that the US has a strong leverage on other member countries of the world bank who may desire favours in future in other institutions of the World Bank. <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgq3e-UVpAyzNv0zrHLLsqxbwJzba1iALbdpG14E238CC2yXdJ9vT7dBy312rWQSrKwkAB6JJsQsj8hvQSWg2ZfScxexD0W0Hsl0uzsT52uB84-9e64_kMNhLxUj3SZBBOTDwmKBTmAWdc/s1600/Obama+Nominee.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="173" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgq3e-UVpAyzNv0zrHLLsqxbwJzba1iALbdpG14E238CC2yXdJ9vT7dBy312rWQSrKwkAB6JJsQsj8hvQSWg2ZfScxexD0W0Hsl0uzsT52uB84-9e64_kMNhLxUj3SZBBOTDwmKBTmAWdc/s320/Obama+Nominee.png" width="320" /></a></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: x-small;">Secretary of State Clinton and Kim and President Obama (Pic from Carnegie Council Website) </span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The only way the US nominee will lose in this race is if the US voluntarily withdraws its candidate from the World Bank job. The chances of that happening in an election year, most US commentators say, is zero. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Nonetheless, Okonjo-Iweala’s and Jose Ocampo’s entry into the World Bank race is a strong signal to the developed world that it is no longer business as usual in the multilateral institutions. It is no longer permissible for citizens of any country to be denied a global job just be because he is not from the US or Europe despite the fact that he is well qualified for the job. Emerging economies may just be forced to float parallel organisations if they are continually treated as second citizens in the existing global institutions. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-20592905149371136572012-03-26T12:23:00.000-07:002012-03-26T12:23:04.959-07:00Patrice Muamba, Samuel Okwaraji and Nigeria<div class="MsoNormal"><span style="font-size: large;">Below is an edited version of a passionate conversation between some of my friends (Prof, Mr O and Mr A) on the miraculous recovery of Patrice Muamba. For those who do not know Samuel Okawaraji, he is a Nigerian footballer that collapsed on the field of play but eventually died just the same way that Patrice collapsed on the field but has survived. The conversation below raises several interesting issues about Nigeria, hence I am sharing it. Enjoy the conversation. <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaZYBIQ4TWqn5pxW9tXs-F6IOk0um10OS7ni5vZA1T_DcBDuJtB0BlqNoQPHbbiNXK_KlgOBA-nepIQfLxAxAGJrOW73imtOa-HQbg32QlMuH2-pWpb-qYG4ewf-iQAeWIC8xq1OC1VQ8/s1600/Patrice+Muamba.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaZYBIQ4TWqn5pxW9tXs-F6IOk0um10OS7ni5vZA1T_DcBDuJtB0BlqNoQPHbbiNXK_KlgOBA-nepIQfLxAxAGJrOW73imtOa-HQbg32QlMuH2-pWpb-qYG4ewf-iQAeWIC8xq1OC1VQ8/s1600/Patrice+Muamba.jpg" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoHTyJWtrrQ5kENyG_lOMG71UfTETe8Lzeyk9EZ16jDDfimMgZm8Mo3igQOJIO-smyyH6Prj31KIW_r-cz1flSt4A_kpzW17w3L0UXG4o4U5nBHuDBUOFOaDpPoNYjP1hlkiHDJnFkSDw/s1600/Samuel+Okwaraji.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoHTyJWtrrQ5kENyG_lOMG71UfTETe8Lzeyk9EZ16jDDfimMgZm8Mo3igQOJIO-smyyH6Prj31KIW_r-cz1flSt4A_kpzW17w3L0UXG4o4U5nBHuDBUOFOaDpPoNYjP1hlkiHDJnFkSDw/s1600/Samuel+Okwaraji.jpg" /></a></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Prof<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">Oyinbo chop winch! You mean that Fabrice Mulumba boy survived? You know when I called you as soon as it happened, I told you he is gone, I have seen such a thing happen before. Imagine how Okwaraji died on the pitch in Lagos? What was the difference? I will tell you, he was in Africa and the other guy was in Oyinbo man's land. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Yet, I wondered why it took them so long to take him to the hospital. To imagine that his heart stopped pumping for 2 hours and they were still able to pluck him back from the wind, tells a lot. Imagine the Nigerian medical team. The doctor don tire, no NEPA for house, his wife still stuck in traffic on her way to market. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"> The medical room in the stadium nko, no drugs, if there are, the emergency oxygen supply is not working, no spares to effect repairs...the defibrators abi wetindem de call am again? They are not working well because no one ever tested them ever since one links man of a Nigerian who had been hanging out in Europe for years hanging on to contacts in Abuja arranged for the transaction of some made in Hungary ones, paid for in Vienna and shipped from Lisbon to be bought by the Football Association. I tell you, we never start for that country.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Mr A<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">I still wonder. It was a surreal moment. 2 hours of no heart and he is now talking and moving his limbs within with 48 hours. Why it took them so long? A Spurs fan jumped out of the East Stand to coordinate the whole process. He is a consultant cardiologist at the London Chest Hospital in East London and he insisted they took him there and he is one of the people treating Muamba now. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">He is the sort of person who is easily a hooligan over the weekend – drinking and fighting – and then lifesaver another time. Why they took so long on the pitch? They had to try and restart his heart and when it was taking long, they decided to take him to the hospital whilst doing it on the way. The Spurs and Bolton doctors knew what they were doing, but there is always someone who knows a little bit better – in the form of this cardiologist – and these fine margins are crucial. The fans were amazing. They were trying to “wake him up” with their chants. You know how they say you need to talk to a person who is passing out or dying to try and get them out of that unconsciousness. But Prof, you can’t compare Okwariji’s death in the 80s to this case. First of all, medicine has advanced. Secondly, procedures have changed.</span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;"><o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">Mr O<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"> I am so moved to tears as I read Muamba’s story. You see this is what we are saying. How easily can you find a specialist of that calibre in our stadia during live matches between two local league teams? Followers of good football prefer to watch EPL Saturdays and Sundays in the comfort of their sitting rooms. The old practice of going to sports bars has gradually died down as these places have become safe haven for all manners of people who would prefer to bring all sort of cigarettes (both banned and unbanned) into the air conditioned tightly packed rooms. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;"> I disagree with this excuse that Okwaraji's misfortune happened in the 80s. I tell you most solemnly that the state of medical preparedness, the number of qualified experts and the level of patriotism in the 80s is higher than what we have today. Presently, as a nation we are down on all indices of human assessment. Whereas I agree that if Okwaraji had gotten to LUTH alive he could have survived. Now a very healthy person can develop a heart attack and die inside a teaching hospital in Nigeria. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Prof again <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">In certain ways, you are right. But I hold on to one of your statements here that is "conditions have changed". Truly, they have, inversely, in my country, vis-a-vis, what I saw human beings do in that stadium on Saturday. Let me tell you this, and make no bone about it. If that match was played in any stadium in Nigeria, including the sports facility in Aso Rock, even if Muamba's name was Goodluck Jonathan, we would be reading his ode by now. As sure as the sun will shine tomorrow, Muamba's body would be in a mortuary vault by now, assuming there's electric power in that mortuary facility, otherwise, as my wise Islamic brothers do, his body would have been committed to mother earth by now. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Let's get this straight and let's get this right, development has little to do with the passage of time, nor the availability of technology. It has got everything to do with what Kwame Nkrumah once said - "the ability to judge conditions in your environment right, and to proffer appropriate and effective solutions to specific challenge” What we saw on Saturday was the entire stadium, rising as one man, reading a situation appropriately, proffering effective solutions and acting with reason, discipline and resolve. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Thus, a departed soul was plucked from the wind. Who says Oyinbo man no fit make somebody, sooner or later? Let us look at a typical response of my people to such an experience. First, the witch catchers go enter, then prayer warriors go step in, burning and casting out the demons that want to take the man's soul away. The little oxygen going down his pipeline go kuku seize. Then someone go see the hand of Boko Haram inside, in no time, katakata go follow. Then read the papers the following day, you go hear Pastor Joshua and Primate Olubayo own for inside, and you will be shocked to discover that the Cardiologist you talk about de plan to go for some miracle session for G.O Church that evening, in which case, he would have half-heartedly been involved in efforts to revive the departing soul. Hospital, let's not even come to that.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">We know little of the modern age, we do not even believe in science and technology. Give us all the modern innovations and know how in medical field, that footballer would still have died.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Mr A again<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">Agreed Prof. Even if we have all the equipment and do not have the mentality to apply it, then, what’s the point? My mum used to complain – before she retired – that quite a few people died at the hospital she used to work and they got the blame for a lot of them. The anger was, the sick people were usually in the priest’s house for prayers till it get too late and then they bring them to the hospital for their inevitable death. I have never understood that. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">I cannot help but think that – just like you were suggesting – that if this had happened in Africa, prayers would have been the first thing instead of medication. It also depends of your luck, in terms of the mentality of those around when this happens. And if the person had survived through the quick thinking of someone around, trust that some priests would have claimed credit for their prayers. This will then lead to people thinking that’s the only way forward. When Muamba fell, the players straight away called for medical assistance, before Van Der Vaart, Gallas, and Tuncay started praying on the field. The sought medical help first. Combine both, but seek medication first. Like I always say here, it’s our upbringing.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Prof again<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;">In fact, given all the dangers around, I wonder why people still play football at all in Nigeria. Whenever I visit Nigeria these days, I find it difficult to rouse myself - to go out. I have seen accidents happen in streets. Those who should know better about first aid, just drive away, not wanting unforeseen problems in trying to be a Good Samaritan. The first people in an accident scene in that country are often the uneducated and bad mouthed area boys, who when not scheming how to make away with the victim's possession, know next to nothing about first aid, they nevertheless go ahead to administer.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;"> I have seen an accident victim losing blood and furiously asking for water, given a satchet of pure water to drink, when even a teenager in his first "first aid training day" knows the last thing to do to anyone losing blood is give him water to drink. You would imagine the police should know better whenever they arrive the scene.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"> My brother, pray nothing should happen to you or anyone you know in Nigeria. The police will first of all try to secure the place, from who, ask me, when a man is on the ground dying. Then, they will run helter skelter, with loaded AK 47s dangling on their shoulder, trying to commandeer a vehicle. And when one is somehow manoeuvred through the traffic of busy body well-wishers who will do next to nothing other than well wish, the victim will be bundled, double over into it, not minding if there was some spinal injury waiting for a bad handler to worsen it. To cut short a long story, that country hosts a failed society. It's a nut house....a crank pot. And to imagine they have a minister of tourism, one of health, and another of international commerce, lol.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-size: large;">Join the conversation. What do you think? Are things as bad as it is being painted here or even worse? Share your views in the comment box below. </span></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com1tag:blogger.com,1999:blog-6312295091863085609.post-58201395222880617562012-03-19T00:21:00.000-07:002012-03-19T00:21:23.271-07:00KONY 2012-Africa should not wait for Garvin to grow up<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“The next 27 minutes are an experiment but in order for it to work, you have to pay attention”<o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTw4Z0IBeAQ0lYPEg7jphyucWIKxOyP4ooDv0qpxvZWFiuMOA82WKu83inrXIvW4jiLsOqoHDrlphE9dTqg473RV0ugb2MaykoQLy1-VLgk-j7xvOmFq9Qy1DXYQGGtUP4-rKLLRAyDSk/s1600/kony-2012.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTw4Z0IBeAQ0lYPEg7jphyucWIKxOyP4ooDv0qpxvZWFiuMOA82WKu83inrXIvW4jiLsOqoHDrlphE9dTqg473RV0ugb2MaykoQLy1-VLgk-j7xvOmFq9Qy1DXYQGGtUP4-rKLLRAyDSk/s320/kony-2012.jpg" width="320" /></a></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">These are the words of the narrator one minute thirty six seconds into the new record breaking You Tube documentary video titled <a href="http://www.youtube.com/watch?v=Y4MnpzG5Sqc" target="_blank">KONY 2012</a>. The first few seconds have been devoted to telling the viewer how the world has changed with the advent of instant communication and feedback by the web. The video lets you know that “The rules of the game have changed” <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">I am not sure what the final aim of the KONY 2012 video makers is about? If the aim was to get people to view the video, then it has been more than successful. Over 100 million viewers have so far seen the KONY 2012. I just checked this morning on You Tube and it has been viewed by over 82 million people on You Tube alone so far. This makes it the most watched video ever on planet earth. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The fact that this record was achieved in so short a time only confirms KONY 2012 producers’ statement that the world has changed. As the narrator says “There are more people on Facebook today than they were on planet earth 200 years ago” Most significantly, the population of the earth on Facebook are connectable and connected with a click. Definitely “The rules of the game have changed” and you better understand those rules. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">For the fact that KONY 2012 has been such a successful online product in so short a time may just be the proof that the makers of the KONY 2012 understand the new rules of the game. I have looked around the web and have seen more touching videos on KONY made by other organisations like <a href="http://www.youtube.com/watch?v=JpEjdE7UjPM&feature=fvst" target="_blank">this </a> . As you can see, this video to date has had just 1,134 views compared to KONY 2012 over a 100 million views, yet it was uploaded on the web almost a year ago. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">KONY 2012 has also been successful as a commercial product for its makers. As part of the video, the makers of KONY 2012 have also produced souvenirs branded the KONY 2012 KIT. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> I checked producers’ website this morning (<a href="http://invisiblechildrenstore.myshopify.com/products/kony-kit" target="_blank">here</a>) the KONY 2012 KIT which cost US$30 per kit were already sold out. The kit contains a T-shirt, KONY bracelet, Action guide, Stickers, Button and Posters. The bracelet alone goes for US$10. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">For me, this looks like one of the most successful fund raising ever done. I am not sure how many packs of the kits were made but imagine if just five per cent of the people who watched the KONY video were persuaded to buy the kits for $30 each, which could be a potential windfall of $150 million. And it could be the fastest money raised in so short a time with so little effort further emphasizing the fact that “The rules of the game have changed” <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">But while the video has been a run-away success, it seems to have turned a PR disaster for its makers. It has drawn critical attention to the video makers” Invisible Children” so much attention that the founder of Invisible Children is reported to have been <a href="http://news.nationalpost.com/2012/03/16/jason-russell-arrested/" target="_blank">arrested</a> which has resulted in several funny videos <a href="http://www.youtube.com/watch?v=Kjiy4koHg2s" target="_blank">including this. </a> </span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The organisations finances has come under critical scrutiny showing that only about 31% of the funds raised by it is spent in Uganda where it carries out its charity work. In fact a look at the finances shows that Invisible Children spends almost every penny it raises on itself except funds that are specifically raised and tied to causes in Uganda. See the organisations finances <a href="http://c2052482.r82.cf0.rackcdn.com/images/895/original/AR11_small_final2.pdf?1325722694" target="_blank">here</a></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Also the video says that the rules of the game have changed, but the portrayal of Africa as the begging continent did not change in the movie. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">“I am gonna be like you dad, when I grow up. I am gonna come with you to Africa”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">These are the final words in the KONY Video from the video maker’s son Garvin who is also the central character in the video. Obviously, he wants to be a “hero” like his dad working in the "dark" continent of Africa to save children from monsters like KONY. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Thus Africa remains the land where those who want to feel good about saving the world come. However, the movie is not really about Africa. It is about Uganda, just one of the 56 countries in Africa. Yet, often in the narration of the movie, Uganda is used interchangeably with Africa as if Uganda is Africa and Africa is Uganda. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Yet “Africa is the world's second-largest and second-most-populous continent, after Asia. At about 30.2 million km² (11.7 million sq mi) including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area.[2] With 1.0 billion people (as of 2009, see table), it accounts for about 14.72% of the world's human population” taking a direct quote from <a href="http://en.wikipedia.org/wiki/Africa" target="_blank">Wikipedia</a><o:p></o:p></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Here is Uganda on map of Africa</span> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhldzwqhlsk6TcsYhlzfjmYY6wQZaXYHrJaIbiqhZsfz5qRS4dCjgK99LQt7s_QqeX4NMzwMH7qxFHjT12Ar6ALr4IUyKldOcW1choVIFfVq_eQCYWfIty2vcAp5GD1_W_LMzF6nMQgO0k/s1600/map-Uganda-in-Africa.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhldzwqhlsk6TcsYhlzfjmYY6wQZaXYHrJaIbiqhZsfz5qRS4dCjgK99LQt7s_QqeX4NMzwMH7qxFHjT12Ar6ALr4IUyKldOcW1choVIFfVq_eQCYWfIty2vcAp5GD1_W_LMzF6nMQgO0k/s320/map-Uganda-in-Africa.jpg" width="310" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">KONY is in Africa, but he is in Uganda and a small part of Uganda for that matter not roaming the African continent as if the Africa is a small Island. Actually, he is even said to have left Uganda six years ago, possibly dead or hiding in the bushes between Uganda and its neighbouring countries. He is no longer a factor in the life of Ugandans. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">KONY 2012 also seems to have turned KONY into a hero rather than a villain. This is a man accused of the most heinous crimes against humanity yet Bracelets and T-Shirts are being branded in his name. It is difficult to reconcile beautifully branded T-Shirts and bracelets with the evil that KONY represents. Imagine wearing a T-Shirt or bracelet with “Hitler” written on it. <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPEjxVoktK2VlePtFbn_O4AYK9kcizJrGpqXYnQ2MjAnYVPQuNZFVD6VOMN7k_iTf2ECIppiAYlIHsUBGvGSSaQXdKHsQlPGuzDpwO8jEKJOPdd2s06ZmRwf2YYyJZ0Y1fGmOVcE71am8/s1600/KONY+2012.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPEjxVoktK2VlePtFbn_O4AYK9kcizJrGpqXYnQ2MjAnYVPQuNZFVD6VOMN7k_iTf2ECIppiAYlIHsUBGvGSSaQXdKHsQlPGuzDpwO8jEKJOPdd2s06ZmRwf2YYyJZ0Y1fGmOVcE71am8/s320/KONY+2012.jpg" width="240" /></a></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
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</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">But maybe KONY 2012 is also a wakeup call to Africans generally. There is no doubt that there has been a significant improvement on the continent. We have more democratic and more responsible governments than we have ever had. Our economies are growing faster than we have ever had. Poverty is reducing faster on the continent than we have ever had. There is plenty of good news about Africa that the world is not hearing about. Imagine, if KONY 2012 was a video about the many good things happening in different countries in Africa and not about some monster who vanished six years ago?<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">So perhaps, before Garvin grows up and starts packing his bags to Africa, we should mobilize and tell the world that people like KONY are in our past. We must tell our story and let the world know that our Invisible Children are no longer invisible. They are also visibly online and they are conquering global challenges just like any kid in the world. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Africa should not wait for Garvin to grow up before we start sharing the good news about Africa. Yes, we have our challenges like any other part of the continent, but we are making significant progress. The cup is not half empty, it is half full. </span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">What do you think? Share your thoughts with a comment below. Also please share the article either on Facebook or twitter or any of the social any networks you are on. Do not be Invisible. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com1tag:blogger.com,1999:blog-6312295091863085609.post-24995702931547406882012-03-11T14:44:00.000-07:002012-03-11T14:44:34.314-07:00Nigeria Oil licence bid round-How Emeka Offor made $35 million<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Global Witness, a UK based NGO which campaigns for transparency in the global oil industry has revealed in its latest report how Emeka Offor’s owned <a href="http://starcrestng.com/abt.htm" target="_blank">Starcrest Nigeria Energy Limited</a> acquired an oil license in the May 2006 oil licence bid round and sold a part of it a few months later for $35 million to Canadian Swiss firm <a href="http://www.addaxpetroleum.com/" target="_blank">Addax Petroleum</a>. Interestingly Addax also paid for the signature bonus fee of $55 million. In essence, Starcrest pocketed $35 million with little or no investment. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">As Nigeria prepares another bid round this year, this story provides an insight into the behind the scene deals that goes on in Nigeria oil license bid rounds.. The report also shows how a company owned by Lee Maeba, who was at the time chairman of the House Committee on Petroleum Resources also got an oil licence in partnership with Conoil. The story as written in the Global witness report is reproduced below. The full report can be found <a href="http://www.globalwitness.org/sites/default/files/library/RIGGED%20The%20Scramble%20for%20Africa's%20oil,%20gas%20and%20minerals%20.pdf" target="_blank">here</a>.<o:p></o:p></span></div><span style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><b><br />
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: large;"><b><i>Easiest $35 million ever made</i> ?</b></span><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s1600/Diezani-Allison-Madueke%255B1%255D.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s320/Diezani-Allison-Madueke%255B1%255D.jpg" width="320" /></a></div><span style="font-family: Arial, Helvetica, sans-serif;"><b><span style="font-size: x-small;">Diezani Allison-Madueke, Nigeria's Minister of Petroleum Resources</span><span style="font-size: large;"> </span></b></span><br />
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<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The Nigeria oil license bid round which took place in May 2006, known as the “mini-round”, raises questions about the role of indigenous companies and the transparency of bidding processes. This bid round was much smaller than its predecessor and the bidders were mostly companies from China, India and other foreign countries which had pledged investments in Nigeria’s infrastructure in return for being granted oil licences. One case that later attracted controversy in the media was the case of Starcrest Energy Limited.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Starcrest Energy Limited is an international offshore company registered in the Republic of Seychelles and controlled by Emeka Offor, a Nigerian businessman who was described by the Office of the Attorney General of Sao Tome and Principe, a country which neighbours Nigeria, as a “known confidante and campaign supporter of President Obasanjo” and by Chatham House as “a key financier of the ruling party [in Nigeria].”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> In 2006, it appears that a local subsidiary of Starcrest Energy Limited, Starcrest Nigeria Energy acquired oil block OPL 291 by swapping it with another block (OPL 294) that it had won during an earlier bidding process. Soon after, it entered into a Production Sharing Agreement in relation to OPL 291 and was paid US$35 million by a foreign investor while retaining a large minority stake in the licence.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Questions over Starcrest’s acquisition of OPL 291 were first raised in October 2006 by the Financial Times, which noted that “Starcrest [is] a company … which industry sources say has strong political connections.” The situation led to three government investigations, two of which ultimately absolved Starcrest of any wrongdoing and one of which was discontinued.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">However, the facts presented below suggest a need for clarity as to how an obscure company, reported to have strong political connections, was able to win an oil licence after the initial bidding process and realise a substantial profit on it within a matter of months. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">One of the oil blocks on offer in the mini-round of May 2006 was OPL 291. According to a letter to the Nigerian EITI from the Ministry of Petroleum Resources (hereafter the MPR Letter), Starcrest took part in the auction on 19th May 2006 and bid for and won oil blocks 226 and 294 after paying the requisite fees and taking part in the public bidding process.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">An Indian consortium had a right of first refusal on OPL 291, but did not exercise it and their right of refusal duly lapsed.At a reconvened session at the MPR, Starcrest and another company, Transnational Corporation (Transcorp) appealed to be allowed to swap the blocks that they had won for OPL 291. Transcorp was given the initial opportunity by MPR officials to swap an oil block for OPL 291. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The MPR’s letter says that there were “numerous meetings” with Transcorp’s representatives between May and August 2006 “to meet the terms of the award of the OPL 291, including the identification of a suitable deep-water operator and payment of Signature Bonus.”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Ultimately, Transcorp failed to pay the signature bonus and did not acquire the licence. After the bidding rounds, Transcorp became a subject of controversy due to media reports that former President Obasanjo himself owned shares in it. According to an Associated Press article from September 2006, Obasanjo confirmed that his private company owned 200 million shares in Transcorp.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">However, the trustees of the company reported that there was no conflict of interest because the President would have had no knowledge of the company’s shares in Transcorp or other investments because they were held in a blind trust. Global Witness wrote to Obasanjo and Transcorp and asked them to comment on these reports. We did not receive a response from either party.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Once Transcorp did not acquire OPL 291, the relevant Nigerian oil and gas regulatory authorities gave permission to Starcrest to swap its previously obtained oil block OPL 294 for oil block OPL 291.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Due to the withdrawal of its initial technical partner, Starcrest sought and obtained the approval of the MPR to partner with Addax Oil and Gas Limited, a Canadian Swiss Oil firm. Starcrest entered into a Production Sharing Agreement with Addax in respect of OPL 291. Addax paid the US$55 million signature bonus to the Nigerian Government.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The Addax deal was highly favourable to Starcrest. Not only did Addax pay the signature bonus owed to the government, but it agreed to pay Starcrest a farm-in fee of US$35 million to acquire an interest in OPL 291. In reply to our letter regarding OPL 291, Addax stated that they paid a farm-in fee as “there was no other manner for Addax Petroleum to obtain an interest in OPL 291” since “they were not eligible to participate in the bidding round as the prevailing government policy of the time required indigenous Nigerian companies to bid.”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In response to question regarding the farm-in fee, Addax state that the “farm-in was fully transparent, disclosed publicly at the time, and represented a good commercial opportunity for Addax Petroleum and its shareholders. The payment of a farm-in fee is standard practice in the industry.”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">According to the MPR Letter: “there is nothing irregular about the transactions between Addax Petroleum/Starcrest as reassignments of oil licences are normal industry practice. It is also pertinent to note that farm-out payments between third parties are not normally brought to the attention of government, as government is not privy to such transactions and does not benefit from the same.”</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> This may have been an accurate account of oil industry practices. Nevertheless, from the MPR letter it appears likely that, with the full agreement of the Nigerian government, Starcrest did not obtain OPL 291 in the bidding round which took place on 19th May 2006 but through a series of negotiations and correspondence with the MPR and the Minister of State for Petroleum Resources.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">This process seems to have taken place over several months and involved Transcorp but does not appear to have involved the other companies that had taken part in the bidding round in May 2006. It also appears, based on a Global Witness survey of media reports between May 2006 and October 2007, that the award of OPL 291 to Starcrest and Addax only became public knowledge in October 2006, when Addax reported that it had farmed into the licence. Starcrest, however, denies this account.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Following petitions from a competitor, three investigations into the circumstances of the allocation of OPL 291 were launched by the Inspector General of the Nigerian Police, the Ministry of Petroleum Resources and the Economic and Financial Crimes Commission (EFCC) respectively. After a petition from Starcrest to President Yar’Adua, the President asked the Minister of State for Energy (Petroleum) to provide him with a report on the matter.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In 2008, the ministry stated that there was no wrongdoing or breach of procedure in the processes leading to the award of OPL 291. The President then issued a directive, on the basis of which the Ministry of Justice instructed the EFCC to stop the investigation, “as any further action to the contrary would amount to a violation of the directives of Mr. President as well as disregard for the Hon. Minister of State for Energy (Petroleum) who investigated the matter.”<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">In March 2008, a letter from a staff officer of the Inspector-General of Police to Starcrest informed them of the outcome of the investigation carried out by the MPR, which had found that Starcrest and Addax had “validly acquired the partnership interest apportioned to them in the production sharing contract on OPL 291.” Consequently the Inspector-General of Police’s investigation was closed. We understand that the EFCC investigation was later discontinued.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Legal representatives of Emeka Offor told Global Witness that all investigations, including by the EFCC had “absolved Starcrest of any wrongdoing” and given “Starcrest a clean bill of health.” In response to Global Witness’ questions regarding the relationship between Obasanjo and Offor, the representatives clarified that “President Obasanjo, though a good friend of our client, never influenced (nor did any Nigerian government official), the award of OPL291 to Starcrest.” They also stated that none of the fees paid to Starcrest Nigeria Energy were diverted to political recipients.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">None of the above facts amount to evidence of illegality in the obtaining of OPL 291. However, it has not been fully explained why the government, which was committed to a policy of transparency and open bidding, authorised particular companies to swap the licences in negotiations that lasted several months after the date of the bidding itself.<o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">It is also hard to see what services Starcrest Nigeria Energy could have performed to justify making sucha large profit on OPL 291 in a matter of months. If the licence was worth an extra US$35 million in farm-in fees, this begs the question as to why the government did not give this licence a higher value estimate in the first place. Starcrest responded to our questions about the value they added by stating that they “made significant investment in exploring or developing the licence” and that it is “most unreasonable” to suspect that they had no intention of developing the licence in their own right.</span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-54238687580747267352012-03-07T08:47:00.000-08:002012-03-07T08:47:40.516-08:00Ten shocking inefficiencies in NNPC as revealed by the KPMG report<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">As the Ribadu led Petroleum Revenue Special Task Force gets down to business on unveiling the mystery of the Nigeria petroleum industry, here are ten shocking revelations contained in the yet to be published <a href="http://resourcedat.com/2012/01/download-kpmg-report-on-nnpc/" target="_blank">KPMG report</a> on <a href="http://www.nnpcgroup.com/" target="_blank">NNPC</a> that will help make their job easier. <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s1600/Diezani-Allison-Madueke%255B1%255D.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1uGIt2ZQ6xf-GBolCffB02rTtuQLM9IhOrEuztKtwUmcpPK3UGAt4eS6ZBVZd1U28CFxKTKKvi_OjR0S2ecgoL6dIozKizs2lSlOv7GZ14kFX222HBYLltTVKW1MzjKgzaW4yF4Wbbr0/s320/Diezani-Allison-Madueke%255B1%255D.jpg" width="320" /></span></a></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Diezani Alison-Madueke, Minister of Petroleum Resources </span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">1. <!--[endif]-->The Nigeria National Petroleum Corporation (NNPC) has no centralized means of storing electronic copies historical production and allocation data. Individual staff store these files on their computers which means that when a staff computer crashes or alternatively he or she leaves NNPC, the data may not be recoverable. It also means if you need historical production and allocation data from NNPC, you may have to talk to as many staff as possible that have it on their computer to get the information <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinic8sr4ACdbQH05tzzBZyaSYYyKwc4JNeQEcGGl2AXoLlYNN24HaebzpWLFwll-rDQqnbJnJf9smg6nSW57UwhQq9k6f3bqInI2mQ6QyLCVvXLQsjOi-1eRuO5u-6-S1BJB3CpT9nBPE/s1600/nuhu-ribadu1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinic8sr4ACdbQH05tzzBZyaSYYyKwc4JNeQEcGGl2AXoLlYNN24HaebzpWLFwll-rDQqnbJnJf9smg6nSW57UwhQq9k6f3bqInI2mQ6QyLCVvXLQsjOi-1eRuO5u-6-S1BJB3CpT9nBPE/s320/nuhu-ribadu1.jpg" width="320" /></span></a></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoListParagraphCxSpMiddle"><o:p><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Nuhu Ribadu, Chair Petroleum Revenue Special Task Force </span></o:p></div><div class="MsoListParagraphCxSpMiddle"><o:p><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></o:p></div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">2. <!--[endif]-->NNPC buys crude oil for domestic consumption in dollars from the Federal Government but pays in Naira. KPMG however found out that the exchange rate at which the NNPC pay for domestic Crude Oil in Naira was lower than what the CBN published on the same date. This resulted in NNPC underpaying the Federal Government by N86.2 billion in three years from 2007 to 2009. Shockingly, the NNPC says it got the exchange rate on which it made its payments by phone from the Central Bank of Nigeria (CBN). However, it does not have records of such phone calls. Interesting. Right? <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXFKB09JMoEaskdhhjp3eiUljxTp8ZSBk0EixIqvpWX5PeuhmbsE3VXAQ2l8EF5JVJz2LfxzBbDbH6HKZ4xbHEKterumkZGrK_i6-_kkBq7FWltQ2w-lqfDXhUUK_aTm7NWFFcRPCwIKU/s1600/Austen_Oniwon_New_GMD_NNPC_copy_2442466221.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXFKB09JMoEaskdhhjp3eiUljxTp8ZSBk0EixIqvpWX5PeuhmbsE3VXAQ2l8EF5JVJz2LfxzBbDbH6HKZ4xbHEKterumkZGrK_i6-_kkBq7FWltQ2w-lqfDXhUUK_aTm7NWFFcRPCwIKU/s320/Austen_Oniwon_New_GMD_NNPC_copy_2442466221.jpg" width="252" /></span></a></div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><o:p><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> Austen Oniwon Group Managing Director, NNPC </span></o:p></div><div class="MsoNormal"><o:p><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></o:p></div><div class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">3. <!--[endif]-->There is no stated criteria on how NNPC selects companies that lift Nigeria’s crude oil despite the fact the NNPC reviews the contract for lifting crude on an annual basis. KPMG states that NNPC claims the renewal of lifting contracts for Nigeria’s crude oil on a yearly basis is based on performance of the lifters yet NNPC was not able to define the basis and criteria for determining performance. KPMG was able to observe instances where NNPC allocated crude oil lifting contracts to off takers even when they were not on the approved list. Ovals trading, for example lifted almost four million barrels of crude in 2007 and 2008 without being on the approved list. Other companies that lifted crude without being on the approved list include Petrojam (2.8 million barrels in 2007), Oil fields (950,166 barrels in 2007) Zenon (906,000 barrels in 2008)<o:p></o:p></span></div><div class="MsoNormal"><br />
</div><div class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">4. <!--[endif]-->Shocking instances where the KPMG discovered the invoiced amount of crude oil lifted was lower than the value of crude oil actually lifted. There was the case where KPMG discovered an invoice that stated that the amount of oil lifted was $85,000,000 whereas the actual value of crude oil cargo lifted was $95,396,587 representing a significant difference of $10,396,587 or N1.63 billion at current exchange rate. <o:p></o:p></span></div><div class="MsoNormal"><br />
</div><div class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">5. <!--[endif]-->Crude oil and sales and collection are not captured in NNPC accounting system until two months after the deal is done. Payment for domestic crude by NPPC to the Federation account takes an average of 110 to 120 days (three months) <o:p></o:p></span></div><div class="MsoNormal"><br />
</div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">6. <!--[endif]-->Process of selecting suppliers of imported products is done at Management discretion. Documented procedures are ignored by management. Instances of petroleum product import contracts awarded to companies not on approved pre-qualification list. In the fourth quarter of 2008, three companies not on the approved prequalification list were allowed to bring in imported petroleum products. The companies are Astana Oil Corporate Limited, Natural Energy and Oando. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><br />
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</div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">7. <!--[endif]-->NNPC incurred demurrage cost of $198 million (N31 billion) from January 2008 to June 2010 due to delays in discharge of imported petroleum products at the Ports. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">8. <!--[endif]-->Capacity utilization of Nigeria’s refineries ranged from a low of 11.2% to a high of 25.3% in the review period from 2008 to 2009. Also, the processing fees paid by NNPC to local refineries for refining crude is not enough to cover the operating cost of the refineries. The last time the processing fees were reviewed was in 2005. This is why the refineries are operating at loss and also contributing significantly to their inefficiency. They are set up to fail. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">9. <!--[endif]-->Fuel subsidy payments are based on products imported into the country rather than products actually sold in the country leading to possibility of subsidy being paid on products not sold in the country. KPMG found out the shocking fact that DPK tanks with total storage capacity of 18,000 cubic metres at PPMC depots were not utilized for storing DPK in the last three years despite the fact they were in good condition. Instead, third party facilities were being hired for the same purpose. <o:p></o:p></span></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">10. <!--[endif]-->NNPC shockingly has no proper system of filing. KPMG found instances where documents were stacked in bags instead of being properly filed. Add to this the fact that other electronic data are not also centrally stored in an electronic data base and you get a nightmare situation of trying to find out what really goes on at NNPC. It is therefore not surprising that the corporations operation has always remained a mystery to the uninitiated. </span></div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Watch You Tube video <a href="http://www.youtube.com/watch?v=NoG-c1CfMLA" target="_blank">here</a> on Nigeria's House of Representatives probe of management of fuel subsidy. </span></div><div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
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</span></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0tag:blogger.com,1999:blog-6312295091863085609.post-2505498555654209582012-03-04T17:36:00.001-08:002012-03-04T17:42:02.028-08:00MEND in Nigeria’s Niger Delta-Is this the resurrection of Jomo Gbomo? <span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The last time the Nigerian media got an e-mail from Jomo Gbomo, the spokesperson of the Movement for the Emancipation of the Niger Delta (<a href="http://en.wikipedia.org/wiki/Movement_for_the_Emancipation_of_the_Niger_Delta" target="_blank">MEND</a>) was in October 2010. This was after bombs exploded at the independence day celebrations in Abuja (<a href="http://www.reuters.com/article/2010/10/01/us-nigeria-idUSTRE6901Y320101001" target="_blank">here</a>). Jomo Gbomo had as usual issued a statement saying MEND was responsible.</span><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3kRjn2Il3xAX2Qs69gokg7GUljc7ETTGAx_uZY4ZfdmJhGV2NSTp8QuiayU9pmV5C12M_jm63qNvXY0gQ0Ss3AkZaJY7R3p6Qqqa0bPteUEqyS9ZvpJ36IKPnG2NAcKTgJ_wy_7cknZ4/s1600/mend_water2_ap_main.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3kRjn2Il3xAX2Qs69gokg7GUljc7ETTGAx_uZY4ZfdmJhGV2NSTp8QuiayU9pmV5C12M_jm63qNvXY0gQ0Ss3AkZaJY7R3p6Qqqa0bPteUEqyS9ZvpJ36IKPnG2NAcKTgJ_wy_7cknZ4/s320/mend_water2_ap_main.jpg" width="320" /></a></div><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
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<div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">This was at a time most known militants of MEND were laying down their arms after a popular amnesty offer from the Nigerian government. Soon after the Independence Day bombs, Charles Okah, brother to Henry Okah, the alleged leader of MEND, was picked up. He was said to be Jomo Gbomo. After being picked up, a few more mails came from Jomo Gbomo, until the mail trail went dry as the amnesty programme and the emergence of Goodluck Jonathan, an indigene of the Niger Delta as the Nigerian president seemed to have finally calmed nerves in the Niger Delta. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Thursday last week however saw the killing of the highest ranking military officer in the Niger Delta by militants and it also seem to have finally confirmed the resurrection of Jomo Gbomo (read <a href="http://www.vanguardngr.com/2012/03/militants-open-up-on-bayelsa-killings-why-we-killed-colonel-others/" target="_blank">here </a>for reasons why militants say they struck).</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"> Once more the Jomo Gbomo e-mail trail is active just as the guns and bombs have started exploding in the Niger Delta. Jomo Gbomo has resurrected despite the fact that Henry Okah remains in a South African jail and Charles Okah remains in jail in Nigeria. <o:p></o:p></span></div><div class="MsoNormal"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYrEA4mWEcJTIRVLg8ZSyMfj4vimiT2HiIC2OV7lJ4qzLLuVKF-rK7HPrnUoqh0na0j8GmXtvqlTD7hOtP4Pz_St9eu-ClPYTypLM7RfCsCErgn2cGkzJ3FmdGrMJAXixORbQD-wqcx0I/s1600/2470864584_6be1452073.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYrEA4mWEcJTIRVLg8ZSyMfj4vimiT2HiIC2OV7lJ4qzLLuVKF-rK7HPrnUoqh0na0j8GmXtvqlTD7hOtP4Pz_St9eu-ClPYTypLM7RfCsCErgn2cGkzJ3FmdGrMJAXixORbQD-wqcx0I/s320/2470864584_6be1452073.jpg" width="320" /></a></div><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Is this the ghost of Jomo Gbomo, is he an impersonator or is he real? If he is real, where has he and MEND been all the while and why are they suddenly resurrecting at this time when an indigene of the Niger Delta still remains the president. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The attacks by MEND are coming at a time of allegations that the Niger Delta region is getting an unfair share of national revenues and development projects under a Niger Delta president. Thousands of youths who embraced the amnesty programme of the Federal government are now in various countries around the world undergoing different training programmes. A good number of ex-militants are still getting monthly allowance from the Federal Government. So what would make MEND pick up the guns again? <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The rift between President Jonathan and Timipre Sylva the former governor of the President’s Home State of Bayelsa is the first reason that those familiar with the region are putting their hands on for the resurrection of MEND. The former governor has been politically outmanoeuvred by the President to ensure he does not get a second term as a governor of the state. It was in the heat of the political battle between the President and his governor, that the bombs started exploding again in the Niger Delta (<a href="http://saharareporters.com/news-page/nigeria-bomb-explosion-rocks-bayelsa-political-rally" target="_blank">here</a>). The governor lost the political battle and is rumoured to have fled to country even as the Economic and Financial Crimes Commission slammed corruption charges against him. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">It is not yet clear if the resurrection of MEND is direct fall out of this political battle. There is the other view that the current hostilities is being carried out by disgruntled militants left out of the monthly payments from the Federal government and who want to be recognised. This is the John Togo faction that feels aggrieved over the spoils of the amnesty programme. <o:p></o:p></span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">(Watch <a href="http://www.youtube.com/watch?v=oyhD5g8YvpI" target="_blank">here</a> ex-militants allegedly protesting over non payment of amnesty allowance) </span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">However, the resurrected Jomo Gbomo claims that they used the period of silence to rearm MEND. It is early days yet to be exactly clear if the latest hostility from MEND is flash in the pan or a return to the old bad days of kidnappings, pipeline sabotages and explosions. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">What is clear is that the new MEND seems to be deadlier than the former MEND. The first MEND was a bit reluctant to kill. This MEND seems to have no qualms about killing. <o:p></o:p></span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;"><br />
</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The current MEND also seems to have a taste for piracy which has been on the rise in Nigerian waters (<a href="http://www.guardian.co.uk/world/2011/aug/12/piracy-west-africa-increase-somalia" target="_blank">here</a>). </span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Jomo Gbomo is quoted to have warned ships that try manoeuvres to prevent their ships from being boarded by MEND will have rockets launched at their ships and set on fire when boarded. Already a ship captain has been killed in one of the suspected MEND piracy attacks (<a href="http://www.vanguardngr.com/2012/02/pirates-kill-captain-engineer-in-attack-off-nigeria-waters-imb/" target="_blank">here</a>). <o:p></o:p></span><br />
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</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">Piracy seems to be increasing with the advent of this new MEND. They are yet to state their demands. Unlike the former MEND that wanted increased resource allocation, it is not clear what this MEND want since the country already has a Niger Delta President and increased allocation. <o:p></o:p></span><br />
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</span></div><div class="MsoNormal"><span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">The current threat from MEND is coming at a bad time. The Nigerian security forces are already tackling Boko Haram activities in the North; No doubt the security forces will be stretched if they have to start tackling another major insurgence in the South South of Nigeria. </span><o:p></o:p></div>Anonymoushttp://www.blogger.com/profile/01833137615417947489noreply@blogger.com0