The market capitalisation of Nigerian Breweries (NB) Plc will hit a new high of $7.3bn after its proposed merger with Consolidated Breweries (CB) Plc, THISDAY findings have revealed.
Although pricing details have not been provided by the companies, THISDAY analysis showed that the deal will make Nigerian Breweries the most capitalised equity on the Nigerian Stock Exchange (NSE).
Consolidated Breweries currently trades on the Over-the-Counter (OTC) market at around N77.5 per share and it has outstanding shares of around 496.1 million shares.
Its market capitalisation is at around N38.5 billion ($237 million) while Nigerian Breweries Plc’s market cap is currently around $7.0 billion.
As such, the market capitalisation of the combined entity is estimated to be around $7.3 billion. Meanwhile, experts at FBN Capital have predicted that Nigerian Breweries will offer a high enough premium on the shares of Consolidated Breweries Plc to woo shareholders to sell and prevent a repeat of GlaxoSmithKline-like saga witnessed in the capital market last year.
FBN Capital also stated that the new combined entity will have a wider product portfolio covering all the major beer segments and will give Nigerian Breweries more exposure to the value segment.
“While NB exerts dominance in the mainstream and premium beer market with its flagship product Star and others such as Heineken and Gulder, Consolidated Breweries is a strong player in the value segment of the market with products like Turbo King and 33 export lager beer.
“In terms of market share, we estimate NB’s market share at around 63 per cent of the market and around 6-7 per cent for Consolidated. As such, the combined entity should have a commanding market share of almost 70 per cent of the Nigerian beer market, “said FBN Capital.
The added: “Historically the Nigerian beer market has typically grown unit volumes by around 10 per cent y/y on average. However, since 2012, the market has come under pressure due to a combination of factors including a squeeze on consumer wallets due to the partial removal of petrol subsidies and price increases implemented by the brewers.
“In addition, the mainstream segment of the beer market has come under pressure as consumers downtrade to cheaper products. We understand that the value segment is presently growing at around 30 per cent y/y compared with the low single digits being delivered by the premium segment.
“Expected synergies from the combination include economies of scale from the joint purchasing of raw materials, but more importantly, the leveraging of established distribution channels of NB to ensure wider market penetration for CB products. We expect the market to react positively to the news this week.”
Nigerian Breweries Plc had last week, announced a proposed merger with Consolidated Breweries Plc. Both are subsidiaries of Heineken NV in which the latter holds equity stakes of 54.1 per cent and 53.85 respectively. According to information from the firm, post-merger the combined entity will remain listed as Nigerian Breweries Plc.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Caverton Offshore Support Group will list on the Nigerian Stock Exchange on 20 May 2014. Ahead of that, Mr. Aderemi Makanjuola, chairman and founder of the company, spoke to a group of journalists about why he is taking the company public, the company’s growth trajectory, and the prospects of indigenous companies in the oil and gas sector under the local content regime. Excerpts:
Your company would be the first indigenous oil and gas services company to be listed on the Nigerian Stock Exchange. This is coming after Seplat’s recent listing. How important is this record to you and what are your thoughts about the future of indigenous companies in this very important sector of our economy?
We are proud of our achievements thus far and humbled to be a reference point in such a tasking sector. The year 2010 was a major milestone for us. This was when we won the single largest contract ever awarded to an indigenous company. After the euphoria, we realised that this record also thrust an enormous responsibility on us as a company.
Essentially, we felt that we were unwittingly made ambassadors for indigenous companies in the sector and that there was a need for us to demonstrate that indigenous companies with commitment and focus could achieve the same result as foreign competitors.
In our minds, it simply meant that failure was not an option. So I would say that our listing is a follow up on that burden of responsibility. Just that this time the focus isn’t only on operational excellence and adherence to standards but more about the sustainability of our growth and the institutionalisation of the company.
I think that the oil and gas sector still has tremendous growth opportunities with enough capacity to enable the emergence of other technically sound indigenous companies, and with the right economic policies the possibilities are boundless.
You mentioned that you won the single largest contract awarded to an indigenous company in 2010. What is the value of the contract and with which company?
This was with Shell and the value was $648 million. It was a contract for five years plus two. We were to buy six helicopters to do the operation but it has been increased to seven with a fixed wing to enhance production. Apart from Shell, we also have contracts with Total, Addax, COTCO (ExxonMobil) in Cameroun. These are the major ones that we are concentrating on. We also operate Lagos State government helicopters.
Why did you decide to list the company and why now?
The decision to go public was signed-off by the board of directors as far back as 2008. We felt that given the significant opportunities in the market and our positioning, the use of debt-financing to fund our growth will be limiting and so we decided to carry out global case studies on companies with similar growth trajectories.
We decided that the equity funding route will ultimately give the best return on capital. So the journey to tapping into the Nigerian equity market began with our private placement in 2008 which culminated in the imminent listing. The timing was determined by a combination of the prevailing market conditions and the company’s current growth stage.
What do you mean by that?
The company has got to that stage where it needs to access more capital in the sense that more contracts are coming in. We also need to train more people and ensure that Nigerian engineers and pilots derive greater benefits from the evolving opportunities and that instead of hiring people from abroad and taking out the money, we can help Nigerians to acquire the necessary capacities and hire them.
Most family businesses hardly want to go public. Is it that you don’t have the anxieties that others have in terms of possible take-over or losing control?
Not in the slightest. When the company was founded there was a clear vision to establish a legacy business and that has always been the focus. In addition to this we operate in a very niche space within the oil and gas sector which requires a distinctive set of skills in the day-to-day management of such operations. So we pride ourselves as possessing these unique management skills and if a takeover were in the offing, I am pretty certain that the progenitors of the business would still be required to sit at the table.
So to answer your question, we have no anxieties about any possible takeover. And I say that with the greatest sense of humility. Moreover, going public does two things: it enables you to inject fresh blood into your company and it forces you to observe good corporate governance practices.
That was why we engaged the services of KPMG to marshal out various aspects of the regulations and rules that will control the company and also put in place a proper corporate governance structure. Also, going public will enable members of the investing public who want to be part of the company to invest and benefit from the growth opportunities and dividends provided by local content policies. It’s more of value added.
You said from the start you had a vision of establishing a legacy business. How do you mean?
Yes in the sense that most family-owned businesses mostly die with the founder or flounder after the death of the founder. My intention has always been to ensure that this company proves two things: one, that Nigerians can establish companies that will propagate proper corporate governance; and two, that Nigerians can establish companies that will outlive them. So my concern has always been if companies in other places can be in existence for hundreds of years, why not Caverton?
You started out as a banker and you decided to go into a totally different arena. Why did you choose to do that and how did you overcome the initial challenges of being in a different field?
After decades in the banking sector, as with most things, there was a yearning for change. The type of services within the oil and gas sector was a specific area of interest for me. I had a first-hand experience about the dearth of operators’ assets in the service sector and felt that the opportunity that existed could allow for a longer-term business and so the journey began.
As with most start-ups, the greatest challenge is proving that you have the competence and capability to sustain the business. In addition, I had chosen a capital-intensive line of service and so funding the capital expenses was going to be a challenge.
But with a lot of determination armed with decades of banking experience I was able to present the business in such a way that the projected cash flows and the growth feasibility were able to convince leasing companies, technical partners and the banks to commit resources and funds to bring things to fruition.
Many people heard about Caverton for the first time when Caverton Helicopters launched the intra-city shuttle in Lagos. Over time the two major companies in the Caverton group have grown tremendously. So what would you call the major milestones and critical success factors of the group?
Unknown to many people, Caverton started out as a Caverton Marine in 1998 operating a fleet of LPG and petroleum tankers as well as supplying equipment to the Nigerian Ports Authority. In 2002, Caverton Helicopters was born and we commenced the intra-city shuttle in 2004.
I will say that the major milestones and the critical success factors for the group will be inextricably linked to our commitment to safety and the frequent audits that keep us on our toes. In 2009, we passed the Shell audit which allowed us to qualify technically to tender for contracts and this opened the floodgate of opportunities.
This was essentially because the Shell audit is considered one of the most tasking in the oil industry. As such, passing it was a vote of confidence that brought Caverton into reckoning with our peers and other prospective clients.
Moreover, Caverton Marine, had been awarded contracts from Shell UK (STASCO) and our vessels MT Ashabi and MT Lolade were engaged in their petroleum transportation activities in West Africa. So they were familiar with our ethos on safety and professionalism. They were only surprised we were branching into other aspects which they found refreshing.
The two subsidiaries of Caverton were set-up before the passage of the Cabotage Act and the Local Content Act. How did you set yourself up to be able to compete in a sector that was dominated by foreign firms?
The enabling laws you mentioned are protectionist in nature and this type of laws is not unique to Nigeria. There is the Jones Act in the US, which is very similar to our cabotage law and the Gulf Cooperation Council countries in the Middle East also have similar laws to our local content law.
While these laws have created the enabling environments for the emergence of indigenous companies, core competence is still a basic requirement by the clients. As such, competing in the sector for us as a company is essentially holding ourselves to a higher standard than our competitors in everything we do. This cuts across, from the conditions of service, training standards, aircraft comfort to investment in facilities that would complement our overall service offerings.
How have these protectionist laws helped the company and how have you positioned yourself to be able to take advantage of the opportunities that they provide?
Whilst these laws are there to “protect”, promote and encourage indigenous investment it is not a free pass to walk in and win any contract because you are a Nigerian company. Yes the laws and policy have helped and in a big way because when you bid for any contract one of the conditions is that your company must meet all local content requirements.
However this doesn’t stop on being Nigerian alone. As a company you must show capacity to train Nigerians and invest in Nigerian infrastructure. Plus the obvious ability to show technical competence which we have shown time and time again.
Caverton is seen as a success story of and as a champion for the local content. What are you doing as an organisation to deepen local capacity in the country?
We take pride in our achievements in terms of developing and training young Nigerian professionals. We have had over 50 Nigerian seafarers operating our vessels from cadet to chief engineers, even a captain.
We currently are planning a training and recruitment programme for seafarers in conjunction with our partners RK Offshore of Singapore. This is to enable our national staff members imbibe global best practices. As at 2009 we had 160 staff members within the group. But we are now over 700 of which 603 or 86% are Nigerians.
We have trained 58 Nigerian pilots and 40 engineers. Inclusive is the initial pilots and engineering training given to fresh graduates. We have been justifiably recognised as a poster child for national content policy.
But we dare say that even though we are proudly Nigerian, safety, quality and service efficiency are the trademarks that have brought Caverton to this junction. We actively promote the development of managerial skills of our nationals.
Some have been sent to Harvard, some to other training institutions to develop their managerial skills and we are also putting them in positions of responsibilities to sharpen their leadership skills. When we started the contract with Shell, our first contract manager was a foreigner.
But one and half years down the line, we got a Nigerian, Captain Josiah Choms, who is now the contract manager and doing such a fantastic job that Shell is very pleased with him and they saying we should train more people for such positions.
Also we are doing our best to make sure that Nigerian universities and colleges are linked to us and for us to also help develop their capacity. A case in point is the Federal University of Technology, Minna, where by 20th of June we will hand over a 500-seat lecture theatre to the university.
We are also working with the National College of Aviation Training in Zaria, Kaduna State as well to ensure that when the students finish their Private Pilot License training they don’t end up being air hostess or stewards instead of being pilots.
We also have seen hindrances that are preventing us from training more people and we are looking into that to ensure that we have the facilities that can be used to train Nigerians in our country thereby saving time, increasing productivity, and saving foreign exchange for the country.
The company is going to list by introduction. Do we expect Caverton to go to the market soon to raise capital?
Yes. The listing by introduction is a precursor to our public offer which we expect should happen between the fourth quarter of 2014 and the third quarter of 2015. We decided to list by introduction because we felt it would be expedient to ensure that the market is fully familiar with the company, its past and present performance prior to its fund-raising and also to ensure that we are seen to have a proper corporate governance culture.
What do you see as the prospect of the oil and gas support services sector as a whole and where do you see Caverton in that?
As I have said, the opportunities are there. In most cases now, the big oil companies are selling up their assets and moving further offshore. So that in itself is creating opportunities for Nigerians to be able to participate. The more the opportunities for exploration, the more there will be opportunities for those of us in logistics. So we are gearing up for that. There will also be more opportunities offshore. We are targeting that as well as part of our plans for the future.
Now that you are going to list on the market, why do you think the market and the general public should be interested in Caverton?
The market and public should be interested in Caverton because of the following reasons: we are a growing company that started from humble beginnings and we have a solid track record of operational growth, income growth and dividend history; we have a track record of safety and the highest possible international standards; and our company is representative of the indigenous oil and gas local content efforts and is a poster child for local content.
Caverton is also growing operationally with a young fleet of aircraft and marine vessels in an industry that is highly technical and we strenuously observe world-class standards as recognised by our key clientele.
Importantly, being Nigerian we are also investing in the development of infrastructure and the training and creation of local jobs and manpower, contributing our own quota to the country’s GDP. Also, we believe that given the investments that are going into the offshore and deep water, we are poised to benefit significantly from this trend and we would like Nigerians to also benefit from the actualisation of our vision to become the premier offshore support services provider in Nigeria and eventually in Africa.
You just said Caverton’s vision is to become the premier offshore support services company in Africa and not just Nigeria. What accounts for this continental vision?
Caverton’s vision to transcend Nigeria’s borders was borne out of our overall strategy to diversify geographically because of the constant demands for our services across the continent. We presently have enquiries from Morocco all the way down to Mozambique and we think it makes business sense to begin to work assiduously towards the goal.
Presently we have a nine-year contract with COTCO in Cameroun which we have been operating for the past two years. We have been invited to bid in Ghana; and we have also been invited to come for discussion in Congo. Why Africa? Well, because this is the area of specific demand today. That said, we have also received enquiries from Malaysia and you never know, Africa might just be the beginning.
Apart from possible share offer, are there other things in the pipeline?
Caverton has a number of major announcements coming up in the next few months and I will rather wait for the appropriate time to make them. I will say they are all ground-breaking and one is particularly very ground-breaking as it will be a first for sub-Saharan Africa.
Only then do you start to get to market or promote the product. Yes, it has taken time but I think it’s the right thing because now more and more people know about it. As more and more people know about it, it then has a pull effect because people are saying this is something I want to do, it is in accord with my values, in accord with my faith and I trust that it is the right thing. It will grow and I think the setup process is the right ones.
Do you think enough has been done to generate awareness about the non-interest banking in Nigeria? Specifically, what is Stanbic IBTC doing in creating awareness?
We are spending a lot of time with important scholars; we are spending a lot of time with Universities; for example, the University of Katsina (the Katsina Muslim University) and the University named after the former President, Yar Adua University in Katsina, Bayero University, and Crescent University.
These are universities that we are starting to work with. We are also spending time with some of the religious institutions and other foundations to give them a sense about non-interest banking and then obviously in our branches already, we are starting to promote the product. In my travels in Bauchi, in Jos, in Kano, Katsina, Zaria, Abuja and so on, we are promoting non-interest banking and in other parts of the bank, even here in Lagos.
We are starting to create that awareness so that people understand what it is all about. What people miss a lot about Islamic banking is that there are fundamental principles and values associated with Islamic banking. If those principles and values are not there, the structures are not there, you can’t call it Islamic banking. We want to do it right and we will promote it based on Standard Bank’s own integrity ethics, because in Standard Bank we wouldn’t do something that is not ethically right or values-based. We have to get the promotion right. I am happy with the progress we have made so far.
Standard Bank, the parent company of Stanbic IBTC, launched Sharia-compliant banking in other African markets a long time ago. What has been the experience in markets like Tanzania and Ghana, and how have you applied such experience to drive uptake in Nigeria?
Our view is that each market is unique. We are trying to make sure that we use the uniqueness of Nigeria, because even within Nigeria, each region is unique; we are trying to make sure we use that.
Some of the experience we gained from Tanzania and from other markets is relevant, but we try and always bring it back to what works in Nigeria, what works in this region and use it in line with what the central bank has approved and what is in line with our board’s decision.
It is generally accepted that non-interest banking policies as well as legal and operational frameworks are well thought out and structured. Do you share this view? Are the policies adequate to spur growth of non-interest banking in Nigeria?
Absolutely! This is the actual key essence of Islamic banking. You have to make sure that the structures are in place. You must make sure that the training is being done that each product has been approved by the board and has been approved by the central bank, only then can you market it.
Those structures are in place, the products are now in place and again, we started with day-to-day products – which are transactional products. We are now getting into the learning products and as time goes on, we’ll move to more high end products. I am happy with the progress in the way we have gone up till now.
The development and issuance of Sharia-compliant products and services appear not to have kept pace with market expectations. The issuance of Islamic bonds has not attracted any traction.
I think it’s making sure we take steps all the time. The transactional products are the first we have got right. We have got that right, they are working and we are growing that base, we are now moving into the learning products. The other investment type products like bonds and things like that will come as time goes on.
Can you give us an insight into the kind of projects or the sectors of the economy that Islamic finance can help develop in Nigeria?
I think trade is fundamental. We have to use the trade environment as key. Agriculture is very important. For me, those two stand out. The more people get to know about Islamic banking, it can affect any industry, it can apply to any of the industries but the two main ones for me that are important are trade and agriculture.
The third one in a strange way is tourism, but not tourism-in, tourism-out. It’s not tourism in the sense of tourism, but it’s in relation to the faith. For instance, people who go out to do the Hajj carry a lot of cash and that is not good for them. But we are now developing the right products, debit cards that somebody can have when they are going out to Hajj. Now, these products and their potential are some of the things that for us are exciting.
Apart from inadequate awareness campaigns to market non-interest banking in Nigeria, we understand that banks offering the service are also contending with management and manpower challenges. To what extent is this true?
I can’t comment about other banks. At Stanbic IBTC, we have been fortunate to have a very good team of people in the non-interest banking team; very good support from the team where we have a dedicated specialist who the bank hired as part of our regulatory approval, who sits in our head office, who is dedicated to Islamic banking.
On the board we have got eminent scholars, and business people. We haven’t had that problem. I can’t comment about other banks but what I know is that internally, we don’t have that difficulty at all.
One of the key objectives in launching non-interest banking in Nigeria is to enhance financial inclusion in a country where about 70 per cent of the population lack access to regular banking services and also to diversify the economy by developing alternative financial services. Has non-interest banking helped in any way to bridge the gap?
It has in the sense that there are people who hitherto were unbanked because they didn’t feel that conventional banking is there for them. Those people are now seeing an alternative in non-interest banking.
But as you can well imagine, the gap is too huge, it’s still going to take time and the more awareness, the more people that take it and the more people that get involved, then financial inclusion will improve. I have known how it can move people into the financial environment and allow them to be part of a broader economy. That’s something that I am quite passionate about.
Is non-interest banking also for non-Muslims?
Yes, although there are term differences. If you call something Islamic banking, then yes indeed, it’s focused on people of the Islamic faith. But non-interest banking is a general term where Muslims will find it appealing because of the fact that it deals with the issue of interest, which in Islam is forbidden; because it’s not allowed to charge interest.
But there are other faiths or religions who also want non-interest banking. We are working now with Catholic churches who want to work with us on non-interest banking. In that sense, it will incorporate people from other faiths. That is why we talk more of non-interest banking, because when we say non-interest banking, then it is somebody who then says that this suits my faith, my values or my religion.
If it does, then somebody will do it. When sometimes you say Islamic banking, it then becomes a challenge. If somebody doesn’t think that he fully subscribes to Islam, then such a person will say – well, I opt out. But when you say non-interest banking, then such a person will say – I think it’s all the things that I want. Catholics are starting to also want to use our non-interest banking solutions.
Back in June 2011 the Central Bank of Nigeria (CBN) expressed the desire to make Nigeria a hub for Sharia-compliant finance in Africa, competing with Senegal, Egypt and South Africa to gain a huge chunk of the $1 trillion Islamic finance industry. More than three years after, are there signs the country is close to this goal?
No, we are not close.
There is still a lot of work to be done. And I think the most important thing for us is, let’s get Nigeria right in terms of non-interest banking and the rest will follow. Nigeria is such a significant country that it is inevitable what it will become but we have got to make sure that we’ve done everything right in order for that to happen.
Stanbic IBTC Bank is generally perceived as a conventional commercial bank. What expertise or experience does it have to offer non-interest banking which is based on principles of Islamic commercial jurisprudence?
The leadership team that looks after our non-interest banking are all highly qualified, well experienced bankers who subscribe to the values and principles that are needed in Non-Interest Banking. The board that we have is also made up of eminent members.
What we follow is also regulated by the central bank and the products we serve are also the products that are approved by the central bank. That is what is important. It is not necessary to setup a separate bank, it is not necessary to setup a separate business for this, as long as that part of the bank that deals with this is well regulated, well managed and approved by the central bank and supported by communities, then we are succeeding.
The conference we are having in Kano with other eminent scholars and other banks from all over the world is starting to get access to that community; more and more people will know Standard Bank as a bank that is there for all Nigerians.
Islamic finance is the fastest growing market in ethical finance with an annual average growth of between 10 and 20 per cent. According to one account, current global Islamic finance assets stand at $800 billion and are expected to hit $1.4 trillion by 2015. How would this projection shape the global financial industry as a whole, and Nigeria in particular?
In the next few years, you will see a huge growth in this environment. The scholars that are meeting in Kano come from different parts of the world – Turkey, Middle East, Malaysia, Indonesia, and so on. And some of them already have very well developed banks that are taking this to the next level, so that the more the growth, the more financial order it will change and I think for Nigeria as well; the fact that it is only three banks that have been approved by the central bank indicate that this is going to grow.
Despite being rated the fastest growing market in ethical finance and with the potential to transform economies, Nigerian banks have largely shunned the non-interest banking platform. Does that suggest that it is not profitable?
Not at all, four banks including one micro finance bank are having the license within the first two years of the new guidelines. Other financial institutions are showing interest.
Every business has its own gestation period for profitability, ways of assessing the future potentials and opportunities. For us we believe that non-interest banking has a very bright future and Profitability potentials in Nigeria. We are providing end to end financial products and services and are complementing our offerings with non-interest banking products and services not only for the potential profitability but also to increase the options and financial inclusion.
The northern Nigerian economy is dominated by agriculture with small farm holders being in the majority. In what ways can non-interest banking and Islamic finance empower the individual and small businesses, especially the small scale farmers?
Actually, this is one of the areas where I think it can be best placed to deal with how a farmer deals with his crops, to deal with how a farmer finances his business, how he manages his products and so on. There are specific products that are dealing with that, there are specific products that will allow a farmer access to financing for any stage of the production cycle before sending products to market.
Lastly, where do you see Stanbic IBTC Bank’s non-interest banking portfolio, say in five years from now?
I think it would have grown from strength to strength. There will be huge take-up in the northern part in particular, and also in the South-West. There is a huge growth prospect we will see there, and I think that also in Lagos where people will feel it’s inevitable for them. I see a huge prospect in all businesses enabled in the bank.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Goddy Egene writes that despite the challenging operating environment, Dangote Sugar Refinery recorded an improvement in its 2013 financial results and enhanced value delivery to shareholders
When the board of Dangote Sugar Refinery (DSR) decided to employ Mr. Graham Clark last year as the managing director of the company, that decision sent one major signal to the entire sugar industry: the birth of a company that would lead the sugar industry in the entire Africa and deliver value to all stakeholders.
Clark, who has a 30-year experience in the African sugar industry, was the MD of Illovo Sugar Limited, Africa’s biggest sugar producer, with operations in six African Countries, before joining DSR last year.
Although the company is still implementing strategies that would comfortably see it dominate the industry, the company’s 2013 performance has indicated the performance what investors should expecting going forward.
Corporate Background
DSR commenced operations as a sugar refiner in March 2000, while its refining plant was inauguration in 2001, with an initial capacity of 600,000 metric tonnes per annum (MT p.a). It is one of the largest refineries in the world with a capacity of 1.44 million MT p.a.
The company employs the talo-phosphatation and ion exchange resin technologies to purify sugar to internationally accepted quality standards. Located in Lagos, at Nigeria's largest port, the Apapa Wharf, DSR controls a dominant market position in the sugar refining sub sector of the Nigerian food & Beverage Industry.
DSR has Aliko Dangote as chairman and Clark as Group Managing Director(GMD).
Abdullahi Sule is deputy GMD. Other directors are: Sani Dangote; Olakunle Alake; Bennedikter Molokwu; Konyinsola Ajayi; Uzoma Nwankwo; Abdu Dantata; Suleiman Olarinde, while Chioma Madubuko is the company Secretary/Legal Adviser.
Promise to Deliver Value
On assumption of duty, Clark assured stakeholders that he would bring his experience in sugar business to bear and deliver returns that will meet stakeholders’ expectations.
Speaking to journalists in Lagos on his plan for DSR, he said working with the board, management and other members of staff of the company, its position as a leading sugar company would be consolidated in the market.
“Our plan is to consolidate what we have and build on the plans to continue to reinforce DSR as the leading player in sugar in Nigeria. There will be exciting things taking place in the next few years. We see our sugar development story effectively moving from now through a period of five to 10 years when we will develop new sugar plantations, new sugar factories across the country.
We will embrace Nigerian farmers to join us in the production of our raw material, which is sugar cane. We will stimulate considerable economic activities in the rural communities. Employment is a major objective of the Dangote Group and we see ourselves employing many people. More 150, 000 can be employed by our sugar business and it will have a multiplier effect,” he said.
According to him, DSR will increase our capacity significantly and enables it reach its retail market easier.
“We are bringing agriculture back to rural Nigeria and be the largest commercial farmers in Africa. We will bring new skills to rural Nigeria and employ many people,” he said.
He noted that in line with the backward integration programme of DSR, the company has acquired farm machinery worth $35 million from Panafrican Equipment.
Clark said the equipment acquisition, was also in line with the Backward Integration Policy (BIP) of the Federal Government of Nigeria and National Sugar Development Council (NSDC).
“This is yet another milestone in the DSR journey as we work towards the achievement of our strategic sugar master plan to produce 1.5 million metric tonnes of sugar per annum, locally.”
He emphasised that DSR is actively pursuing a backward integration master plan with a target of producing a total of 1.5 million tons of sugar locally per annum. The subsidiary, Savannah Sugar Company Limited, Numan, Adamawa State is geared to meet this target.
Savannah Sugar is located on 32,000 hectares of land with a 50,000 MT/PA sugar production capacity. Currently, the company has 5,000 hectares on cane which is now being harvested for sugar production.
2013 Financial Results
DSR’s audited results for the year ended December 31, 2013, at company level, showed a revenue of N102.467 billion compared with N106.8 billion, while gross profit rose by 16 per cent from N23.228 billion to N26.969 billion. Profit before tax by 23 per cent from N16.331 billion to N20.1 billion, while profit after tax grew by 25 per cent from N10.79 billion to N13.537 billion.
The directors recommended a dividend of 60 kobo per share, up 20 per cent from 50 kobo to 60 kobo. A further analysis of the performance indicators showed northward climb.
For instance, gross margin grew from 21.7 per cent to 26.3 per cent in 2013. Earnings before interest and taxes (EBIT) margin improved from 15.2 per cent in 2012 to 19.6 per cent in 2013. Similarly, PBT margin stood at 15.2 per cent compared to 19.6 per cent in 2012, while PAT margin grew from 10.1 per cent to 13.2 per cent. Return on average equity was 27 per cent, as against 25.2 per cent.
Similarly, return on average asset grew from 13.8 per cent to 15.9 per cent. Earnings per share improved from 90 kobo to 113 kobo.
Analysts Assessment
Reviewing the performance of the DSR, analysts at Cordros Capital Limited, an investment bank, said DSR reported revenue contraction in 2013 financial year as the management continued to enforce its strategy of price reduction in pursuit of volume growth.
They noted that despite the decline in sales income, a considerable moderation in cost of sales and a huge growth in investment/other lent support to earnings which grew in double-digits.
According to them, Savannah Sugar Company Limited was in a state of rehabilitation, and therefore contributed less to revenue and more to the cost line. Note that in order to avoid comparing unlike items, hence their analysis focused only on DSR as a company and not as a group.
“2013 revenue of N102.47billion , a 4.1 per cent decline is on the back of the management’s strategy of deliberately lowering its refined sugar prices in an effort to ramp up volumes and control market share. This strategy came into play in 2012 and has been a major game-changer in the company’s operation, as global raw sugar prices remained overwhelmed by supplies,” they said.
They added that the group revenue of N103.15 billion is only 0.7 per cent higher than the number reported by the company, coming as a clear confirmation that Savannah Sugar Company (Savannah) was practically in a state of rehabilitation.
Profit Growth amid Contracted Revenue
The analysts said despite the contraction in revenue, gross profit rose by 16.1 per cent to N26.79billion, leveraging on the support from decline in cost of goods sold (COGS).
According to them, COGS fell by 9.7 per cent to N75.5billion in 2013 after losing 8.3 per cent in 2012.
“ Aside other cost-saving measures such as a reduction in mechanical downtime and the conversion of energy source to natural gas, a major softener of input costs came from the downward trend in raw sugar prices in the commodities market, as global production continued to exceed consumption,” they said.
Double-digit Earnings Growth
The analysts said the impact of higher operating expenses was absorbed by a stronger growth in investment and other income, resulting in an operating profit of N20.1billion and a constituent margin of 19.6 per cent.
“Earnings on bank deposits and insurance claims (from the 2012 fire accident) constituted the investment/other income. There were no financial liabilities in the company account (hence no provision for finance charge), but a finance charge of N67.16million was reported for the group, reflecting interest rate on N536.09million short term debts attributable to Savannah,” they said.
They added that “applying a tax rate of 32.7 per cent (33.9 per cent in 2012) to the pre-tax profit produced a profit after tax of N13.54billion for the company, a 23.4 per cent growth from N10.8billion in 2012. PAT margin rose by 311bps to 13.2 per cent while RoAE (27.1 per cent) and RoAA (15.9 per cent) improved by 177bps and 206bps respectively.”
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Many professionals and firms rendering services to clients, particularly operators in the healthcare sector, are carrying huge liabilities as a result of claims associated with negligence and wrong advice given to clients. Nnamdi Duru writes that professional indemnity insurance could help mitigate their burden
Professional Indemnity
Professional Indemnity (PI) insurance, commonly known as Errors & Omissions (E&O) in the United States, is an insurance policy that protects professionals who sell their knowledge and skills from damaging claims from clients who may not be pleased or satisfied with the services provided.
Professionals in various fields and corporations offering certain services do, at one time or the other, have disagreements with their clients who may accuse them of providing substandard services, withholding information or outright negligence.
If found wanting with regard to the quality of service rendered, the professional or corporation is liable and could be asked by the court to pay huge sums of money as damages to aggrieved clients.
Therefore, in order not to be liquidated by such liabilities, the professional or firm takes steps to protect self by seeking professional indemnity insurance, transferring financial liabilities arising in such circumstances to a licensed insurance company.
An insurance professional, Mr. Onyekwere Iwuagwu said professional indemnity insurance applies to individuals and organisations involved in providing services based extensively on personal knowledge and skills. It protects the business against claims for losses by a client or a third party if it makes mistakes or found to have been negligent.
In other words, it is an insurance cover that protects a professional or business from financially crippling and reputation damaging claims by dissatisfied clients.
Benefits
The benefit of professional indemnity insurance is in three folds. It guarantees peace of mind for the policyholder, provides cover for damages, as well as cover for legal costs.
Having professional indemnity insurance in place means that as a professional one will have peace of mind in terms of his financial future. This cover means that one is not left worrying about what will happen financially if and when a claim for damages is filed against him.
The cover also ensures that damages awarded to clients who filed claims are covered subject to maximum limits and as such, a professional does not have to worry about the cost of damages in the event of a claim.
Also, under the contract, legal costs which at times could be very huge are also covered translating to additional financial security for the policyholder.
Professional indemnity insurance takes care of claims brought against the policyholder as the insurer is expected to conduct the necessary investigations to ascertain the level of culpability of client before accepting liability.
It also sets professionals free from legal responsibilities in a negligence lawsuit as well as keeps lawsuits down enabling the policyholder to save cost.
Who Needs PI Cover
Professionals and companies rendering services to various clients across the globe definitely need professional indemnity cover. They include accountants, architects, surveyors, solicitors, business and management consultants, engineers and estate agents.
The others are doctors, pharmacists and nurses, as well as information technology experts, marketer, advertising and media practitioners, photographers, recruitment and employment agencies, immigration consultants and many more.
Also, many self employed people are buying professional indemnity covers to protect them where they provide advice, support or contract auditing
Extent of Cover
Professional indemnity insurance covers claims against an individual or firm for breach of professional duty but depending on the policy, cover could be extended to misleading and deceptive conduct, defamation of character, infringement on intellectual property rights, damages arising from fraud and defense costs associated with claims.
Insured amounts could vary depending on the level of risk to which the policyholder is exposed. If you think of some project disasters, these sums are not unreasonable.
An individual or firm needs professional liability insurance simply to ensure that claims for damages do not result in liquidation, distress or serious financial stress. Such claims may go beyond the payment of damages to legal costs.
Professional Indemnity for Healthcare Operators
Between 1987 and 2004, 56 insurance products were made compulsory by means of statutory provisions in the country. One of these is the professional indemnity for healthcare services providers.
Section 45 of the National Health Insurance Scheme (NHIS) Act, 1999 provided that “a healthcare provider (medical centre, institution, professional) shall be required to take a professional indemnity cover from an insurance company approved by the council.”
The Federal Government reasoned that being humans, health professionals may make costly mistakes innocently or negligently in the course of diagnosing ailments, prescribing and administering drugs on patients, carrying out surgery and other treatments. When this happens, the patient may suffer irreversible damages to his health and in severe cases lose their lives.
If this happens, the victim or his relatives may drag the professional who handled the case to court demanding huge sums of money as damages. In most cases, it is either the individual or his organisation may not be in a position to pay the damage or may be distressed financially after paying off the liability.
No matter the situation, the victim should not be denied compensation for the pain, sufferings and loss of vital organs inflicted on him as a result of the error committed by a health professional.
Unfortunately, this aspect of the NHIS enabling law is the most violated by stakeholders in healtcare services across the country. Many healthcare operators under the scheme are not even aware of this aspect of the law which made it compulsory for them to be insured on duty.
That is why the National Insurance Commission (NAICOM) decided to enforce this aspect of the NHIS law alongside four other compulsory insurances under it Market Development and Restructuring Initiative (MDRI).
An insurance expert, Mr. Lanre Laoshe, confirmed that the insurance regulator is currently enforcing the compulsory professional indemnity insurance for health management organisation (HMOs) under NHIS.
Caveat
It is very important to stress that the insurer will only respond to claims made while the policy is live. This means the service provider must be insured both at the time the liability arose (when the advice was provided) and at the time of the claim.
The implication of this is that if problems arise long time after services were rendered, the policy holder may run into trouble if he is no longer under cover. It also means that the policyholder should also consider renewing the policy long into his retirement and when changing his insurer, he needs to ensure that the new insurer agrees to carry liabilities that arose before it takes on the risk.
Also, professional indemnity insurance does not cover the full range of risks to which a business may be exposed and as such, the professional needs to seek advice from qualified and experienced insurance agent or broker to ensure he gets the right cover.
Before Shopping for Cover
Every professional should ask himself if he can afford to pay the premium for the professional indemnity insurance or better still ask himself if he can afford not to buy it.
Iwuagwu advised professional to consider their finances before searching for a professional indemnity cover to enable him work out his budget and determine the maximum cost of premium he can pay. Having done that, he should limit himself to insurance plans that are affordable within his budget and of high quality.
The professional should also ensure that he is happy with the features and details of any plan he chooses because one should not sacrifice the quality of cover just because it is affordable.
Also, the policyholder should see the cost of professional indemnity insurance not as an expense but as an investment in the financial security and future of your business.
However, professionals must not give clients reasons to make claims against them by keeping up to date with current requirements, especially legal ones, in the fields where they provide services.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Nume Ekeghe writes on the need to strengthen the Nigeria Deposit Insurance Corporation in order to enhance confidence in the banking system
Globally, the deposit insurance corporation of any country plays an important role of contributing to financial stability and engendering confidence in the system.
They always carry this role mostly in conjunction with the central bank.
That is also the situation in Nigeria, where the Nigeria Deposit Insurance Corporation (NDIC) has over the years continued to collaborate with the Central Bank of Nigeria (CBN) in protecting bank customers and also in ensuring the safety of the banking system.
Nevertheless, experts have noted that the proposed amendment of the corporation’s enabling Act would provide a robust legal framework that will empower it in the discharge of its responsibilities.
The NDIC Managing Director/Chief Executive, Alhaji Umaru Ibrahim had identified some of the weaknesses in the corporation’s Act to include excessive litigations on its role as liquidator of failed banks, lack of proper understanding of the distinction in the legal status of the NDIC as a corporate entity and its role as liquidator, execution of court judgements against the assets of the Corporation for the liabilities of failed banks and difficulties associated with the recovery of judgments on debts owed to failed banks.
Roles of NDIC
The primary function of NDIC, is to provide depositors insurance. It also plays the regulatory and supervisory role with the central bank while reporting to the Ministry of Finance.
Furthermore it advises the CBN on liquidation of distressed banks and manages distressed banks' assets until they are fully liquidated. It was recently appointed to manage and liquidate microfinance financed banks whose licences were revoked.
According to the NDIC, in the event of the revocation of the operating licence of a bank or other deposit taking financial institution, “each depositor is insured up to N500, 000 for deposit money banks and N200,000 for micro finance banks/primary mortgage banks.”
Securing Depositors
To the Head of Research and Intelligence, BGL Securities Limited, Mr. Femi Ademola, the role of the corporation is to secure depositors such that when any bank has any issue, people are able to collect their money back to a large extent.
He however noted that “if you look at the amount of money you can get back if a bank fails, you probably won’t be happy, you would feel it is too low.
“What it tells you is that you can actually spread your money across banks. It is too small compared to amount of money made available in the United Kingdom and in the United States. You have to £85,000 and in the US, about $250,000.
“However, because in recent time, we have not had an issue where any bank fails and they cannot collect their deposit so you would say they are doing well.”
When asked if it was important to review the maximum payment, Ademola said: “If I would have more than N500,000 in my account in any bank at any point in time and because of that if this bank goes down and out of my money the only thing I am assured of getting back is maybe N500, 000 would it make me happy?
“I’m not sure that amount of money is bad because there must be an amount and formula they use to arrive at the amount of money they would pay as the maximum insurance.”
Continuing, he said: “Imagine if Alhaji Aliko Dangote has a personal account in a bank and the bank unfortunately goes down, and you tell him the only thing he can get is N500,000?”
Also, the President, Finance Houses Association of Nigeria (FHAN), Mr. Samuel Durojaiye stressed the need to strengthen the NDIC in order to boost its operations.
He however pointed out that with the recent reforms as well as measures taken by the CBN to protect depositors, the probability of a bank going under is low.
Durojaiye added: “The reforms CBN has been turning out in the last few years, I would say that depositors funds are well secured for now and don’t forget that the CBN carried out tests and inspections on these banks like every other quarter and they also have resident inspectors monitoring these banks by the instruction of CBN is now risk base.
They also come out with the Basel 1 and 11 capital risk adjustment, where banks are expected to raise their capital as their risk is increasing. So for now I would say the security of depositors funds are well secured in our banks.”
Also a senior analyst who preferred to remain anonymous said: “I think giving the stance of the CBN, it is unlikely you would find a bank going under. You should take the example of what happened with the likes of Oceanic, Afribank and all those other banks, what the CBN did was essentially to move all those assets into new entities.
“If we take what CBN has done recently I would say that the risk of a bank being allowed to go under is low or it is not high. Because the view of the CBN is that the industry has to be protected rather than allowing a bank to fail they would try and recapitalise the bank and then offer the bank up for sale.”
financial services to all Nigerians, and that is the commitment that was given.
In Standard Bank are committed to making sure that Islamic banking actually succeeds in Nigeria and grows from strength to strength.
Nigeria’s muslim population is estimated at half of the country’s 160 million people, bringing it to over 200 million muslims when the West African sub-region is included.
One would have expected that non-interest banking, which was introduced in the region, Nigeria inclusive, a couple of years ago would have gained significant traction, but that does not appear to be the case. What could be responsible for the slow uptake of non-interest banking?
I think what is important is that we make sure that we do things right. The central bank did the right thing by laying down very clear ground rules, very clear regulatory standards and very clear criteria for approving any bank to do Islamic banking or non-interest banking.
When the regulator did that, it allowed banks to then apply for getting the license. And with God’s help, we are one of the banks, the first bank to get the license. Getting the license was the first step; then you have to make sure that internally we have all the right processes in place.
We have to setup the right structure to supervise in line with Islamic banking; you have to make sure that the products are approved by your board and then approved by the central bank. After that, we had to consult religious leaders and other stakeholders in the Muslim community to give them a sense of what it is that we do.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
It was a day of anguish and tears yesterday when parents of the kidnapped schoolgirls and their classmates converged on the Government House, Maiduguri, Borno State, to identify the girls who were shown in a video released by Boko Haram on Monday.
The exercise which was painstaking and lasted throughout the day and last night, however, yielded some results, as parents, girls from Chibok secondary school and Borno State Government officials, were able to identify 77 of the abducted girls who featured in the video.
Shortly after the terror sect released the video, the Borno State Governor, Kashim Shettima, had directed that it should be reproduced and distributed so that the parents of the girls could identify their daughters.
But for other parents who could not identify their daughters, the pain and sorrow continued, with speculation rising that some of the girls who appeared in the video may have been kidnapped before April 14 from other communities in Borno.
The leader of the terrorist group, Boko Haram, Abubakar Shekau, had released a video on Monday showing over a hundred of the kidnapped girls who are believed to have been abducted from their secondary school in Chibok, Borno State, a month ago.
He had said that the girls, all dressed in the Muslim hijab and reciting verses of the Qu’ran, would only be released if the federal government accepts to exchange them for members of his sect who have been in government detention facilities for years.
But the United States Government, Senate President David Mark and Nigeria-Americans resident in the US rejected the prisoner exchange deal offered by Shekau for the return of the schoolgirls.
The US, however, said it would respect the wishes of the federal government if it elects to go ahead to negotiate for the release of the girls.
Mark, on the other hand, rejected it outright, saying negotiating with the terrorists would not serve any purpose and would give them room to wreak more havoc on both the country and its people.
But the lack of consensus in government circles, which was evident on Monday when the video was released, continued yesterday when the Minister of Special Duties and Chairman of the presidential committee on reconciliation with Boko Haram, Alhaji Tanimu Turaki, said the government was ready to negotiate with the terrorists on the release of the schoolgirls.
The minister said if Shekau is sincere, he should send representatives for talks, adding: “He should send people he trusts to meet the standing committee on reconciliation.”
Notwithstanding the mixed signals from government, the rescue effort for the girls gathered pace with the deployment of manned surveillance aircraft to the North-east.
Also, a meeting between the Commander of United States African Command (US-AFRICOM), Lieutenant General David Rodriguez, who arrived the country Monday, and the Chief of Defence Staff (CDS), Air Chief Marshal Alex Badeh and other military top brass, took place yesterday to discuss wide-ranging security issues, with particular reference to the kidnapped students.
Shettima: 77 Girls Have Been Identified
Speaking on the abducted students, the Borno State governor yesterday confirmed that the girls shown in the video released by the terrorists, comprise some of those who were forcibly taken away from the Government Secondary School, Chibok on April 14.
In a statement issued by his media aide, Isa Gusau, Shettima said: “Fifty-four of the girls in the video were identified by their names in an exercise that involved some parents of the girls, fellow students that include escapees from abduction, some teachers, security men and some officials of the Borno State Government led by the Chief of Staff to the Government House, Abubakar Kyari.”
He said the parents and students were conveyed to the Government House in Maiduguri to make for an open identification exercise.
The governor, who spoke after a peaceful procession by a coalition of civil society bodies and activists under the #BringBackOurGirls campaign in Abuja, also expressed confidence that the figure of those identified by their names was climbing, as the exercise was ongoing at the Government House, Maiduguri.
Shettima said he was being briefed every 30 minutes, and that initial findings confirmed 36 names, but a second exercise confirmed the names of 54 girls.
The following names of schoolgirls were verified from the video: Agnes Gafane, Saraya Stober, Hauwa Bitrus, Hajara Isa, Na’omi Philimun, Hauwa Abdu (the first girl that spoke in the video recording), Magret Yama, Shitta Abdu, Jummai Muta, Ladi Paul, Roda Peter, Filo Dauda, Godiya Bitrus, Saratu Tauji (the second girl shown speaking in the video) and Rose Daniel.
Other names were Hauwa Ali, Hajara Isa (Amira speaking third girl in the video), Luba Afga, Na’omi Luka, Saraya Emos Ali, Bilkisu Abdullahi, Mairama Ali, Maryam Ali Maiyanga, Dabora Abbas, Kabu Mala, Halima Ali and Yana Bukar.
In addition, the names of Solomi Pugu, Lydia Emmar, Luba Sanda, Saraya Samuel, Comfort Habila, Rejoice Shanki, Gloria Yaga, Mary Nkeki, Moda Baba, Hauwa Isuwa, Patient Jacob, Ladi Jajel, Abigel Bukar, Fanta Lawan, Zainabu Yaga and Aisha Lawan Zanna, were identified by either their parents or officials of Borno State Government.
Other girls’ names included Dokas Yakubu, Kabu Mala, Maryama Bashir, Hauwa M. Maina, Mary G. Dauda, Susana Yakubu, Maryam Abbas, Laraba John, Hanatu Nuhu, Na’omi Bukar and Rifkatu Galang.
The statement from the governor said the names of those identified were being compared with school records as well as names published a few days ago to ensure accuracy.
“The exercise continues at the Government House and it is hoped that more names will be established by parents, students and teachers as well as management of the affected school,” it added.
By press time, the Borno State Government issued another statement confirming that 23 more girls had been identified by their parents, officials of the state and Chibok school officials, bringing the total number of identified girls on the list to 77.
Although the state government did not release the names of the 23 new names, it said an update on the identification exercise of all the girls in the video as well as verification with school records would continue throughout the night and an update would be released today.
US, Mark, Moro, Others Reject Boko Haram Offer
But as the Borno State Government tried to establish the identity of the girls in the video, the US, the senate president and Nigeria-Americans resident in the US rejected the prisoner exchange deal offered by Shekau for the return of the schoolgirls.
The US, however, said it would respect the wishes of the federal government if it elects to go ahead to negotiate for the release of the girls.
Speaking in Washington DC, Ms. Jen Psaki, spokesperson for the State Department, condemned the swap offer, stressing that the United States’ policy was to deny kidnappers the benefits of their criminal acts, including ransoms or concessions.
Her words: “In terms of the question you had about the reports of a trade offer, as you know, Nigeria is in the lead. We are simply supporting their efforts.
“We, as you know also, our policy is to deny. The United States’ policy, I should say, is to deny kidnappers the benefits of their criminal acts, including ransoms or concessions.”
However, adopting a more hawkish stance than the US, Mark said yesterday in Beijing, the Chinese capital, that Nigeria would not negotiate with Boko Haram or any other terrorist group.
The senate president, who spoke to journalists, said the federal government would ensure the safe return of the girls.
“Nigeria will not negotiate with terrorists under any circumstance. If we negotiate with them, they will get a few more people and then we begin to negotiate again.
“You do not negotiate with criminals; you do not negotiate with terrorists. We are going to bring the girls back safe and sound, every effort will be made to rescue them.
“For a criminal to parade himself and be asking for negotiations, I think that is the height of insult on any nation,” he was reported by the News Agency of Nigeria (NAN) as stating.
Mark said the insurgency had persisted because government had initially taken the insurgents for granted.
“We had assumed that they were just Nigerians and so we treated them with kid’s gloves. We perhaps didn’t realise on time that they had international connections.
“It is clear to everyone now that they are not just restricted to Nigeria.”
He reiterated that since the terrorists had declared war on Nigeria, no effort should be spared in dealing with them.
He promised that the National Assembly would review the Anti-terrorism Act with a view to tightening and strengthening weak areas.
Mark called on Nigerians to brace up and join government in the fight to end the insurgency in the country.
“Nigerians must see this insurgency as a battle and a war on Nigeria, and they must not leave it to only those in uniforms.
“Whether you are in Chibok or Lagos or Sokoto, it is clear that all of us must get involved and we must fight it with all our might and strength,’’ he charged.
He said he was delighted that the Chinese government had said it was ready to cooperate with and support Nigeria to fight the insurgents.
Mark, who is on a two-day visit to China, rounded up the visit with a ride on one of the country’s high speed trains to Tianjin province.
Marks position was re-echoed by the Minister of Interior, Abba Moro, who reiterated his stance on Monday that the federal government would not negotiate with Boko Haram.
He told the BBC that the government would not agree to any kind of exchange. “As far as this government is concerned, the option of [the] swap of innocent citizens with people who have taken arms against the country… is not on the table,” he said.
Similarly, Nigerian-Americans yesterday rejected the exchange of detained Boko Haram terrorists for the abducted schoolgirls.
However, while the Council of Ogoni Professionals (COP International, USA) and the Christian Association of Nigerian-Americans (CANAN) rejected Shekau’s offer, the Association of Nigerian Women Academic Doctors (ANWAD) asked the federal government to liaise with intelligence experts to what was necessary to ensure that the girls are rescued and reunited with their parents.
According to CANAN, “We are not opposed to political settlement. CANAN supports whatever it takes to get these girls back safely and alive to their families. The safety of the girls is the most vital issue at hand now.
“What benefit would negotiations with Boko Haram confer? It is well known that democratic governments do not negotiate with terrorists, as this will be deemed a reward for their evil. Rewarding evil is a misnomer and wherever and whenever it is done, it can never last.”
ANWAD President Henrietta Okoro, an associate professor in a Maryland-based university, said: “ANWAD is imploring the federal government of Nigeria and the international community to do what it takes to get these girls back safely and alive to their families.
“The safety of the girls is the most vital issue at hand now. ANWAD is imploring the federal government of Nigeria and the international community to seek the services of military intelligence experts across the world on this very urgent issue and “#BringBackOurGirls.”
Anslem John-Miller, who also spoke to THISDAY on behalf Ogoni professional in the US, said while the council supports the release of the girls, “the body of Ogoni professionals appeals to the Nigerian government not to negotiate with the terrorist, Abubakar Shekau and his terrorist organisation Boko Haram because doing so will embolden this group that has committed heinous crimes against humanity”.
John-Miller expressed sadness that a terrorist group that had inflicted so much harm on Nigerians was coming through the backdoor for negotiations.
US Deploys Manned Planes
But as the Nigerian government decides on the strategy of going forward, the US has revealed that it is flying manned surveillance missions over Nigeria to try to find the 200 plus schoolgirls.
The US is also sharing commercial satellite imagery with the Nigerian government, officials said.
“We have shared commercial satellite imagery with the Nigerians and are flying manned ISR (intelligence, surveillance and reconnaissance) assets over Nigeria with the government's permission,” said a senior administration official, who declined to be named.
A team of about 30 US experts – members of the FBI and defence and state departments – is in Nigeria to help with the search.
The BBC reported that the types of aircraft deployed have not been revealed, but the US has sophisticated planes that can listen into a wide range of mobile phone and telecommunications traffic.
Other officials, quoted by Reuters, said the US was also considering deploying unmanned “drone” aircraft to aid the search.
Psaki said earlier on Monday that intelligence experts were closely examining the Boko Haram video for clues that might help locate the girls.
General Rodriguez Meets with Badeh
In furtherance of the rescue bid, the Commander of US-AFRICOM held a meeting yesterday with the CDS and other military top brass to discuss wide-ranging security issues, with particular reference to the abducted girls.
While briefing the press, Rodriguez stated that he was at the Defence Headquarters (DHQ), Abuja, to discuss modalities on the US’ assistance to the Nigerian military aimed at ending the insurgency.
In his remarks, Badeh described the relationship between Nigeria and the US as mutual and strategic in the counter-insurgency and counter-terrorism efforts.
According to the CDS, “The Nigerian military has over time benefitted immensely from the bilateral relationship between the two countries, particularly in the area of training, military hardware and recently surveillance.”
On the activities of terrorists in Nigeria, Badeh welcomed the international support for the counter insurgency operation, stressing that it would complement ongoing efforts by the Nigerian military to find and rescue the missing Chibok girls.
He revealed that the “Nigerian military is already re-strategising its operational doctrines to match the emerging trends of asymmetrical warfare currently confronting the nation”.
The defence chief also thanked the US on behalf of the federal government for responding positively to the calls for assistance in the search and rescue of the girls.
APC Condemns Forced Conversion to Islam
Meanwhile, the All Progressives Congress (APC) has described as utterly barbaric, the action of the Boko Haram insurgents forcing the abducted Chibok girls to make statements against their personal convictions.
The party said it strongly condemned the reported conversion to Islam of the Christians among the girls who were abducted by the Boko Haram terror group four weeks ago, describing the development as totally unacceptable and downright unconstitutional.
In the statement issued by its interim Publicity Secretary, Alhaji Lai Muhammed, the party reminded the abductors that Nigeria is a secular state and that the country’s constitution recognises the rights of the citizens to any religion of their choice, “hence it is patently wrong and unconscionable to force any citizen to convert from one religion to another”.
“This whole abduction saga has hit at the very soul of our nation. But just when we felt we had all witnessed the worst atrocity by the primitive and brutal group called Boko Haram, we are confronted with a totally repulsive scene of teenage girls, literally with guns to their heads, being forced to say they have converted to Islam.
“This is appalling, distasteful and unacceptable under any circumstance and we condemn it with all the strength we can muster,” APC said.
The party urged the government to critically study the latest video from Shekau to see what other measures could be added to the ongoing international efforts to find and rescue the girls.
“We have consistently said some form of negotiation cannot and should not be ruled out to pry our nation from the grip of these terrorists and ensure the safety and security of our citizens.
“In this regard, we consider as prudent the government's reaction that ‘all options are on the table’ to safely reunite our girls with their families,'' it said.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
In a much awaited ruling on the various preliminary objections filed by Chevron and other defendants, including Seplat Petroleum Development Company against the suit instituted by Brittania-U Nigeria Limited over the assignment of Chevron’s 40 per cent participating interest in Oil Mining Leases (OMLs) 52, 53 and 55, the presiding judge at the Federal High Court, Lagos, Justice M. N Yunusa, yesterday ruled in favour of Brittania-U and struck out all the objections of the defendants.
Before Tuesday’s ruling, the objections by the defendants against the suit, which was instituted by Brittania-U in December 2013, had earlier been argued on March 20, 2014.
The defendants had argued that the Federal High Court lacked the jurisdiction to hear the case because the dispute pertained to a simple contract that ought to be tried at a state high court.
Overruling the objection, the court held that assignment of oil leases and control of interest over such leases is a right primarily vested in Section 44 of the constitution and that the Minister of Petroleum Resouces is given statutory powers to grant or revoke such leases.
Furthermore, the court held that no holder of an oil lease can deal or dispose of such interest without the prior approval of the minister by virtue of Regulation 8 in the schedule to the Petroleum Act.
“Any such claim of dispute cannot be a mere simple contract because it will involves the prior consent of the minister and compliance with the relevant provisions of the constitution and the Petroleum Act,” the judge ruled.
Accordingly, the claim by Brittania-U was held to fall within the subject matter under which the Federal High Court has exclusive jurisdiction under S.251(1)(n) (p) (q) and (r) as well as S.7(1) of the Federal High Court Act, the judge said.
He added: “There can be no determination of the dispute without having to pronounce on the statutory role of the minister and the interpretation of Section 44 of the constitution.”
The court accordingly dismissed the preliminary objection to its jurisdiction.
On whether the suit disclosed a reasonable cause of action, the court agreed with the counsels to Brittania-U, Mr. Rickey Tarfa (SAN) and Abiodun Owonikoko (SAN), that the objections of Chevron and Seplat merely raised issues as to whether the case could succeed at the trial for being weak.
The court held that at the stage of the preliminary objection, it was not permitted to determine or prejudge the merit of the case.
The court also held that having gone through the statement of claims, there was a triable dispute as to why the highest bidder for the leases was not announced, the transparency of the bid process and whether Chevron arbitrarily or whimsically terminated the bid allegedly won by Brittania-U, as pleaded by the plaintiff in its claims.
The court further held that the fact that some of the defendants joined were agents of the disclosed principal was not a matter of jurisdiction.
According to the court, “A misjoinder of parties cannot defeat a suit once there is a competent suit to be determined as between the parties before the court; and furthermore, since allegations were made in the pleading against the agents, the law is settled that any party against whom allegations were made must be made a party.”
Finally, on the contention that the case ought to be referred to arbitration under the confidentiality agreement, the court held that the claims were not arbitrable because it will be against public policy to refer the dispute to arbitration when the ultimate decision and control on the transaction is exclusively within the power of the minister under the Petroleum Act, and the minister is not a party to the arbitration agreement.
The court directed parties to take the necessary steps by responding to all pending applications, in particular the motion to join the Minister of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) and to amend the statement of claims.
The matter was adjourned to May 23, 2014 for hearing of the pending applications.
Brittania-U is claiming specific performance of the assignment of the three OMLs or $10billion damages for wrongful repudiation of the contract.
Speaking to THISDAY on the significance of the suit, Tarfa said the case was significant not only for Nigeria but to the international community because it borders on transparency and corruption.
“It concerns the issue of corruption. Fundamentally, that is the root of it and for an international company to be involved in such matter, it is quite important for the Nigerian people to see how things are being done and whether all the allegations against Nigerians really; whether it is right or wrong, having regards to what happens in the international community,” he explained.
“We seek to take a cue from what happens internationally and it is also important for the court to establish the rightness or wrongness, if there are issues of corruption in the dealings as pleaded by the plaintiff,” he added.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
With a tinge of relief in seeing and identifying some of their children and wards, families and friends of the abducted schoolgirls of Government Secondary School, Chibok yesterday said they were not concerned with strategy used in freeing the students held by the notorious Boko Haram sect, stressing that all that mattered to them was the safe return of their daughters.
The parents and schoolmates of the remaining abducted girls, who answered questions from THISDAY after identifying some of the girls shown in a video released Monday by the Boko Haram sect, explained that they were not interested in the means by which the girls are recovered from their captors as long as they are brought back home alive.
The parents of the abducted girls and six of the girls who escaped gave the names of some of the girls in the video reciting a verse of the Qu’ran as Rose Daniel, Sarah Samuel, Ajara Isah, Aisha Zannah, Saraya Amos Ali, Hauwal Abdul, Ruth Bitrus, Awwal Ali, Saratu Thlauja, Rifkatu Gala, Mariam Ali, Susannah Yakubu and Jummai.
They revealed that most of the girls in the video were Christians and there was no way they could have converted to Islam except by coercion.
One of them pointing at the television screen said: "I know four of the girls.
The girls I know are all Christians. It is sad that they have been forced to become Muslims.”
A father of one of the girls in the video, Lawan Zannah who identified his daughter as Aisha Zannah said my daughter is a Muslim, adding: "I do not know how someone could kidnap girls and compel them to change their faith. In Islam, there is no compulsion in faith, I do not believe this abductors are Muslims for they do not act as one.”
He said: “I saw my daughter and her friend and they are emaciated, meaning they have not been handling them well."
Zannah, however, expressed joy that his daughter was still alive, saying, “I am happy that she is still alive but I want her back. We are just happy to see our children but we want them back. The government should be able to do everything to bring them back."
Godiya Simon, who escaped from the Sambisa forest, the stronghold of the sect, said there is no doubt that many of the girls "I see in the video are from our school.
All I want is to get reunited with them.”
However, it could not be ascertained if all the girls in the video were abducted on April 14 from the Chibok school.
Meanwhile, the global effort to rescue the girls got a boost yesterday when education activist, Malala Yousafzai, said she will donate all the proceeds from the sale of a portrait to help the search for the schoolgirls.
Yousafzai, who was shot in the head by Taliban militants in Pakistan for advocating girls' right to education, said she was shocked and saddened when she learned that more than 200 Nigerian schoolgirls had been kidnapped from their school by the terror group Boko Haram.
“I am very concerned about these innocent girls – my sisters – whose only crime was going to school and learning,” the 16-year-old said.
The statement said the Malala Fund, a charity set up to support the fight for girls’ right to education, will donate all the proceeds from the sale of a Jonathan Yeo portrait of Yousafzai.
The oil painting is estimated to be worth $60,000 to $80,000 and was given to the fund by the artist. The painting was auctioned yesterday at Christie’s in New York.
“I hope the painting reflects the slight paradox of someone with enormous power yet vulnerable and young at the same time,” Yeo, the artist, said in a statement.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
For the third time, President Goodluck Jonathan Tuesday extended emergency rule in the three North-east states of Borno, Adamawa and Yobe States and asked the National Assembly to expeditiously approve the extension.
The president in letters addressed to Senate President David Mark and the Speaker of the House of Representatives Hon. Aminu Tambuwal, said extending the emergency rule was an option to consider because the security situation in the affected states had not improved.
According to him, the security situation in the three states remained daunting in view of persistent attacks by members of the Boko Haram sect, whom he said, had continued to unleash terror on both the civilians and the military.
The letter read: “May I respectfully draw your attention to the state of emergency proclamation 2013, in respect of Adamawa, Borno and Yobe States, which was approved by the National Assembly. By virtue of the provisions of Section 305(6)(c) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, the proclamation aforementioned would have elapsed after six months from the date of approval of the National Assembly.
“However, after due consideration of the representations made to the Senate/House of Representatives of the Federal Republic of Nigeria to the effect that, while substantial progress had been made to contain the situation and restore normalcy in the affected states, the security situation that necessitated the proclamation of a state of emergency is yet to abate.
“It would be recalled that the Senate of the Federal Republic of Nigeria had upon consideration of the realities of the security situation in the affected states that had been placed before it, graciously approved by resolution, the extension of the state of emergency for a further term of six months from the date of expiration of the subsisting period.
“Distinguished senators, the security situation in the three states remains daunting, albeit to varying degrees, in the face of persistent attacks by members of the Boko Haram sect on civilian and military targets with alarming casuality rates.
“In view of the foregoing, I most respectfully request the distinguished senators to consider and approve by resolution, the extension of the proclamation of the state of emergency in Adamawa, Borno and Yobe States by a further term of six months from the date of expiration of the current term.
“I look foward, Distinguished Senate President, to the usual kind of expeditious consideration of this request by the Senate of the Federal Republic of Nigeria. Please accept, as always, the assurances of my highest consideration and esteem.”
In the House, after the Speaker read out the president’s letter, he said the lower chamber would debate the request today.
Meanwhile in reaction to the president’s request to extend emergency rule in the three states, the Yobe State Governor, Alhaji Ibrahim Gaidam, rejected it, saying that this was not the solution to the protracted Boko Haram menace in the area.
The governor communicated his displeasure in a statement issued by his Special Adviser, Press Affairs and Information, Mallam Bego Abdullahi.
The statement read: “It has come to the notice of Governor Ibrahim Gaidam that President Goodluck Jonathan, has written to the National Assembly asking for yet another extension of emergency rule in Borno, Yobe and Adamawa States, as the current emergency rule expires in the next few days.
“The Yobe State Government, under the leadership of Governor Gaidam, takes very strong exception to this move by the president. We believe that extending emergency rule is not the answer to the prevailing security challenges in the three affected states, in view of the apparent failure of the same measure over the last 12 months.”
The governor went further to state that in May 2013, he had supported the first emergency declaration made by the president.
“He did so because he believed a more heightened effort was needed to deal with the escalating security challenges at the time. Six months on, emergency rule was a mixed-bag that was marked more by failure than by success.
“So when the president went back to the National Assembly in November 2013 to ask for an extension, Governor Gaidam was among many leaders across the country who expressed reservations and asked for a change of strategy.
“For instance, over the six months of emergency rule and later over the second, we have seen some of the worst attacks by Boko Haram in Yobe State.
“From GSS Damaturu to GSS Mamudo to College of Agriculture Gujba and FGC Buni Yadi, more than 120 students were killed by insurgents. There were many other attacks in Gujba and Damaturu local governments.
“Although the security forces on the ground have done and continue to do their best under the circumstances, insurgents and criminals have always carried out attacks when they wanted to and have almost always got away with their barbarous and despicable acts.
“As the president now asks for another extension, it is time to ask whether any lesson has been learnt over the previous 12 months and whether the very patriotic suggestions made by the Yobe State government, other affected state governments and Nigerians generally, have been taken into account in the ongoing effort to deal with Boko Haram insurgency,” the governor said.
Gaidam recalled that he and his Borno and Adamawa State counterparts had suggested that the military and security forces deployed in the area needed to be fully and properly kitted with superior weaponry and advanced communications equipment.
“The governor has particularly stressed the need for more technology-driven intelligence gathering and surveillance procedures to be able to detect and prevent attacks.
“Second, the governor had stressed the need to carry the people of the affected states on board in the fight against the insurgency. This suggestion was borne out of the fact that the very doctrine of counter-insurgency, as propounded by US military generals in Afghanistan and Iraq, was conceived as a means of winning the support of local, affected populations as much as scoring a military victory against insurgents.
“We have seen over this period, however, that the federal government has neither provided the advanced weaponry and communications gear needed to defeat Boko Haram nor worked to build and sustain the confidence of the people in the affected states,” the governor lamented.
He insisted that from Izge to Konduga and from Buni-Yadi to Chibok, thousands of people have been affected in the most gruesome manner, pointing out that the president never even found it worthy to pay a sympathy visit to any of the affected areas.
“We also note that the problem of insecurity is now more of a national problem than an issue restricted to Yobe, Borno and Adamawa States alone.
“There are security challenges in Plateau, Nasarawa, Benue, Taraba and Kaduna States and even the Federal Capital Territory. Yet, in all these places, the military and other security forces have continued to do their work of trying to restore order without emergency rule being declared by the president.
“It is therefore our considered opinion that a new approach is needed by the federal government to defeat Boko Haram, restore peace and stability, and rebuild the livelihoods that have been lost.
“This approach should look at the prevailing challenges in the three affected states as a security challenge rather than a political one and should build on the suggestions already made by the governments and people of these states.
“It is our considered opinion that the military and other security forces can remain on the ground in the affected states and do their work until Boko Haram is defeated or made to surrender. In fact, we request that more boots should be deployed to accelerate the pace of effort against Boko Haram. We believe, however, that this can be done without the imposition of a state of emergency.
“We also believe that the federal government needs to evaluate its military strategy regularly, provide additional and superior weaponry to the security forces and use the endowments of advanced communications and satellite technology to be several steps ahead of the insurgents,” added Gaidam.
He noted that his suggestions along with confidence-building measures that see and regard the hapless and distraught people of the affected states as partners in the search for peace, would ultimately be the elixir for the security challenges the states face.
“The issue therefore is not another extension of emergency rule. The issue is whether the federal government can summon the courage to try these suggestions and to explore new ways to bring the insurgency to an end without repeating a stale and sterile measure. which has failed over the last 12 months,” he said.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The federal government has placed terror fugitive, Aminu Sadiq Ogwuche, who was declared wanted in connection with the April 14 Nyayan bus station bombing on Interpol red alert.
This was announced by the Force Public Relations Officer, CSP Frank Mba, at the national briefing centre on security yesterday in Abuja.
This came as the Director of Defence Information, Major General Chris Olukolade, disclosed that foreign allies were yet to carry out any security surveillance, adding that it was inappropriate to discuss technical details of the rescue efforts.
“We will let you know when actual surveillance starts, I still see that within the realm of speculation. But we are not supposed to disclose details of operations with our allies,” Olukolade said.
Mba explained that the Interpol red alert represented an international warrant of arrest to the 190 member countries and consequent extradition of anyone placed on the red alert to the issuing country.
“Interpol red alert is an international request for cooperation. It is usually issues by the National Bureau of any of the member states and in this case, it is being issued at the instance of the Nigerian National Bureau of Interpol. Interpol red alert operates as an international warrant of arrest and consequently mandates security forces in its current 190 member states to join in the search and possible arrest of the fugitive who has been so cited in the Interpol red alert notice. We therefore believe that with this, Interpol will galvanise security forces worldwide to join in the search and consequent arrest and perhaps extradition of the fugitive who has been declared wanted by the DSS,” he said.
Also, the federal government has appealed to religious leaders in the country not to allow their members reduce the ongoing security challenge to a religious issue.
Director General of the National Orientation Agency (NOA), Mr. Mike Omeri, at the briefing urged religious leaders to restrain their members from being misled to believe the country’s security challenge is a religious war.
“The federal government strongly appeals to religious leaders, especially the Christian Association of Nigerian (CAN), and the Jamaatul Nasril Islam (JNI), to restrain their members from being misled by unscrupulous persons into reducing the current situation into religious conflicts. Government is still monitoring issues and will do everything possible to rescue the girls alive,” he said.
Omeri stated further that some suspects apprehended by the DSS had made useful confessions which would help the security agencies in their operations, adding that details of the operation will be made public.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
