Saturday, May 16, 2015

Anxiety as tougher time clouds manufacturing sector in 2015

Hopes for manufacturers to have a blooming 2015 is on the bleak as experts says the crashing down of Nigeria's local currency at the international market portends a tougher 2015 for the manufacturing sector, Ayodele Samuel writes.
2015 is a significant year for Nigeria, aside been a transitional year for government, the manufacturing sector has been neglected by policymakers and politicians to battle for votes despite various challenges steering the sector in the eyes.
The recent devaluation has hiked production costs while threatening job losses and reducing competitiveness of local products in the global market, Nigeria's manufacturers are in for a tough year ahead.
But more worrisome is the fact that manufacturers have now been barred by the central bank from accessing dollars through the Retail Dutch Auction Scheme (RDAS), thus pushing them into inter-bank and parallel markets where dollar is costlier. Stakeholders say this will further balloon production costs in the New Year and could reverse all the efforts made so far to steer the sector.
Former minister for Commerce and Industry and Immediate Manufacturers Association of Nigeria MAN President, Chief Kola Jamodu expressed concerns over the outlook for 2015 especially for the manufacturing sector, stating that key investment inflows are domiciled in the capital market rather than in the real sector.
"There are a lot of challenges in 2015. Demand is extremely sluggish and with the way the currency is dangling, I will advice Nigerians to avoid dollar exposure. The volume of export is dropping and this remains a source of concern to manufacturers".
Like Jamodu, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) also predicted a tougher time ahead for manufacturers in the country based on the continued drop in the cost of crude at the international market and the devaluation of the Naira.
NACCIMA National President, Alhaji Mohammed Badaru Abubakar, said the country is beset with so many challenges arising from falling crude oil prices, which have precipitated the proposed austerity measures and devaluation of the naira while insecurity in the North-East has also remained a serious challenge.
Abubakar noted that due to a lot of pressure on the Naira as a result of high demand, the CBN devalued the Naira to an official Rate of N168 perdollar, but said the interbank exchange rate still goes as high as
N185per dollar as at December 22 while Monetary Policy Rate (MPR), he said, has gone up to 13% as against 12% in the 1st half of this year and Crude Oil price continues to fall, noting that it currently stands at $60.12 per barrel as against $102 per barrel as at August 2014.
"As can be seen, the macroeconomic fundamentals are less stable than they were in the 1st half of this year and this has serious implications on the progress of the real sector of the Nigerian economy," he said.
He also noted that there still exist a gap between the savings and lending rate, saying that the cost of funds currently hovers between 22 – 35% depending on the profile of the firms, which he said is too high for any productive venture and has significant implication on the global competitiveness of Nigerian firms and their products.
Abubakar explained that the macro-economic indicators show a disparity in the state of affairs of the nation's economy and citizens' well-being.
While the challenges abound, he noted that the country might have to depend heavily on local manufacturers that source their raw materials locally without exposure to the forex market.
"The falling price of crude oil is expected to affect the price of imported commodities like the premium motor spirit and the likes, but the real sector remains heavily affected.
"Slow-paced growth should be expected till after elections. But with early budget implementation, there is a lot to be done. The economy should not be ignored in the face of elections. The first quarter may be rough but the effect should be mitigated.
Also the Lagos Chambers of Commerce, Industry, LCCI, in annual economic review for 2014 and outlook for 2015 noted that the country's inflation rate may cross the double-digit mark in the first half of 2015 as the combined austerity measures introduced by the government and tighter monetary policy of the Central Bank of Nigeria will put additional pressure on consumer prices.
The LCCI said with the unfolding oil price slump and the consequent exchange rate depreciation, it was plausible to predict higher inflation conditions in the new year.
"There will be pressures on production and operating costs across sectors. High cost of imports will also be a major factor. As a result of the import-dependent character of the economy, the sharp declines in exchange rate will naturally push up the operating costs of enterprises in the economy. Many firms are already feeling the heat across all sectors," the LCCI said.
According to the chamber "a natural outcome of the depreciating exchange rate in an import-dependent economy is inflation. Cost-push inflation will begin to manifest in the next few weeks of 2015. This will be driven by high cost of production and high cost of imported finished goods.
"The tight monetary policy may continue into the 2015 and this will keep the interest rate high in the economy."
The group noted that in the past few weeks, the naira exchange rate had depreciated by about 11 per cent in the interbank market and over 12 per cent in the parallel market, adding that the impact of the depreciation on operating costs would be very profound in 2015.
Aside the fall in Naira , the Common External Tariff (CET) billed to begin in the new year remains another threat to the nation's manufacturing sector.
Although ECOWAS members had agreed that tariff across the 15 member countries will now be uniform to usher in a common regional market and free trade zone across the sub-region, stakeholders are of the opinion that the regime threaten Nigeria's manufacturing sector that is facing challenges due to its tough business environment.
NACCIMA National President, urged manufacturers to belt up for a challenging year in 2015, saying that production cost will go up amidst the challenges of infrastructure, porous border and the battle against cost push inflation, which is inevitable.
"Giving these scenario on the state of the nation, it becomes obvious that the ongoing socio-economic reform programmes of the Federal and State Government must be intensified and appropriate policy framework put in place through public private partnership (PPP) arrangements to drive the process towards achieving the desired growth of the economy that will positively impact on the country's realization of its Medium Term Expenditure Framework (MTEF)," Abubakar advised.
Also MAN President, Dr. Frank Jacobs on his part urge manufacturers to take cautious efforts before initiating international transactions that may expose them to the forex market, even as he urged government to give considerations to the real sector in the course of policy formulation.
Other stakeholders urge government to promote conducive business climate, such as ensuring the provision of steady electricity supply, as well as mount pressure on the banks to reduce their lending rates, saying that with cost of finance with a high interest rates and frightening COT charges on accessed funds, there is no way manufacturers can survive in their businesses in the new year.

2015 Polls: Torrent of promises for manufacturing sector

2015 Polls: Torrent of promises for manufacturing sector


Buhari and JonathanAyodele Samuel writes on the various political promise made to stakeholders in the manufacturing sectors, as politicians scramble for votes.
Nigeria's Manufacturing sector has been facing hard times since the return of democratic rule in 1999.
Faced with various challenges, the sector has been neglect to rot as various companies relocates to neighboring counties due to high cost of production and unconducive business environment.
At every election years, members of the organized private sectors OPS becomes the toasts of politicians makes
The presidential candidate of the All Progressives Congress (APC), General Muhammadu Buhari (rtd), told OPS members at a meeting in Lagos that his government would effectively grow the nation's economy.
This according to the former head of state is to ensure that majority of the people feel its impact, thereby positively addressing their standard of living on a sustainable basis.
Specifically, he stressed that if voted into power, his administration would galvanise the economy to enhance productivity through improved electricity generation, transmission, and supply; empowerment of Small and Medium-scale Enterprises (SMEs); and enthronement of a regime of favourable investment climate.
Essentially, Buhari said job creation would be accorded its deserved priority, to ensure that the productive segment of the populace is positively challenged through a well-designed manpower training, development and utilisation programme.
According to him, the policies for implementing his administration's commitments would be guided "as practical as it is possible to do so" by the highest consideration of how they create jobs in the country.
To create jobs for the textile and shoemaking industries, Buhari said equipping and resourcing the nation's security personnel would not be limited to the provision of arms alone, but would include uniforms, boots and other accouterments,
He said his administration would seriously commit itself to power supply, as a means of quickly galvanising the economy back to productivity.
Although the APC supports privatisation of power utilities, Buhari said the party believes that privatisation must go further to include transmission of power.
He expressed regrets that nothing much had been achieved beyond the signing and handing over of the power assets, pointing out that after the ceremonies, which, according to him, took place a few years back, the real work of generation, transmission and distribution of power had not been done.
"The reason why the success seems elusive is that apart from the signing ceremony and handover of the power assets, the hard work to connect the various parts of the power chain, gas supply, transformer installation of substations, has not been done," he said.
Noting that based on a study carried out by the APC, the nation would need no less than 200,000 trained personnel to support the initiative to provide power and light up Nigeria, Buhari said apart from the inherent direct employment that it would give, the reduction in cost of production, and the savings from self-generation by Nigerians would reduce the burden on their disposable income.
To Buhari, such savings engendered by reliable power supply would help the average Nigerian spend his or her money on other basic necessities of life and reduce poverty.
"We will support this initiative because a local refinery means many things, including availability of jobs locally at a Nigerian refinery instead of a refinery abroad, local fuel supply and national security, reduced importation, less demand for foreign exchange and strengthening of the naira," he said.
"Road construction alone will unlock a value chain of opportunities in relevant industries for construction companies, builders, engineers, architects, quarry operators, material suppliers," he said.
"The successful opening up of Nigeria by the construction of new roads and highways will revive road transportation; truck and tyre manufacturing; engine oil and brake pad production on one hand and also create a demand for jobs for mechanics, drivers and those engaged in transport support businesses."
He reiterated that his administration would give priority to agriculture, mining and infrastructure, to provide jobs for the nation's teeming youths.
He said for the fact that majority of the youths who, he said, constitute 40 per cent of the population, are jobless is a dangerous situation.
Buhari promised that an APC government would set up industries to produce tomato puree in the country and stop its importation, adding that he would also set up facilities to preserve the tomatoes for transportation to markets across the country.
"I was shocked to hear how much was being spent in importing tomato puree, even as I observed that while driving from Kaduna to Kano, a large quantity of tomatoes wasting while awaiting being harvested and transported to markets across the country," he said.
He said those issues were interconnected with mining, agriculture, infrastructure and job creation, in the sense that not much could be achieved without security and eradication of corruption.
Nigeria, Buhari noted, is too vulnerable, considering that at this moment, the country has to import fuel to move her planes, her tanks and her men, adding, "You can see that we also have to import arms. We are vulnerable because our troops also depend on imported food."
For President Goodluck Jonathan, showing off his achievement he felt would give him OPS members votes.
Jonathan also at a meeting with sector stakeholder said his administration provided no fewer that 1.4 million jobs annually in the last three years to close the unemployment gap and had empowered many in the informal sector, such as the Nollywood.
The president said that if returned in 2015 Nigeria would be totally transform through the on-going diversification in various sectors.
Jonathan added that his administration "has partnered with the private sector and critical stakeholders to move Nigeria to the next stage," which according to him, justified the drive of his administration "to create the enabling environment and build an army of young entrepreneurs though the You Win programme."
His finance minster Dr Ngozi Okonjo-Iweala said the transformation agenda of the administration "is a diversification agenda''.
She said that Nigeria remained the largest economy in Africa which was achieved by the Jonathan administration.
She said agriculture, housing and other economic activities had been diversified to generate higher income than oil adding that the focus now was to diversify the income sector.
She said the rail transportation had been revived successfully and attempts were being made to open all rail corridors in the country for easy haulage of goods and services.
Despite all these OPS member are anxious to see improvement in the manufacturing sector, as Nigerians go to the polls.

World Tobacco Day: How effective is anti–public smoking law in Lagos?

World Tobacco Day: How effective is anti–public smoking law in Lagos?

No-Smoking-SignThe World celebrated World Tobacco Day at the weekend; Ayodele Samuel, in this report, takes a look at the effectiveness of the anti-public smoking law which banned smoking in public places in Lagos, last February.
Smoking in public Smoking in public is as old as the act of smoking itself and it is a habit that smokers like Akinila Ibrahim can't stop no matter how hard he tries. "It is part of my life, it's something I have done for a very long time and I don't think I can ever stop smoking. I can't hide it, so I smoke anywhere I can," says Akinila, 35, who lives with his family in Lagos state, where smoking in public is said to be a crime punishable by law and attracts a fine of N20, 000 or three months jail term.
It will be recalled that the state government earlier in the year banned cigarette smoking in public places such as public toilets, tertiary institutions, public transport/motor parks, shopping centres, stadia, restaurants amongst others. The law also makes it a criminal offence to smoke in front of minors.
However since the signing into law of the bill, public places across the mega city are dotted with smokers who seem to be ignorant of the law just as the government appears not to be prepared about enhancing its implementation starting from the 17th of August this year.
Akinila who is not unaware of existence of the law is less worried because according to him, security agents too smoke freely in their stations, which are also public places.
"I know the government has said we should not smoke in public but who will arrest me for smoking on the street? Is it the police officers who smoke freely in their offices," he wondered.
The case of Akinila is not unique, many other Lagosians have continued to engage in the act publicly unmindful of the consequences stipulated by the law.
Bassey Friday, another tobacco addict boasted that the law cannot make him stop from doing what he derives pleasure in doing. "I know am going to quit smoking in the nearest future, but I don't know when it will be. For now, I cannot do without my cigarette, government law cannot stop anything. I will get my cigarette where I always get it from and smoke anywhere I find myself."
Visits to several public places in some parts of Lagos by Peoples Daily showed that the law only exist on paper.
Operators of such places are also showing lack of enthusiasm in enhancing the law as they do not display the "NO SMOKING" sign on their premises as required by the law, while most motor parks in the state still play host to tobacco smokers and sellers.
Chairman of the National Union of Road Transport Workers, NURTW , Ikeja chapter, Alhaji Muyiwa Okunola said its union is collaborating with the state government to enforce the anti tobacco law, while disregarding presence of tobacco sellers at their various parks, saying however, that "It is an offence to smoke while driving, smoking is totally prohibited for drivers; obviously it is not just for safety reasons it is also for health reasons because we are moving towards banning smoking in all public places.
"It is an offence to drive while drunk; if you've been taking drugs, this law provides for blood test to determine whether you have ingested drugs which are inconsistent with your ability to drive.
Traders who deal in tobacco products and local gin said the law is an attack on their source of livelihood.
"I felt a big blow, our sales had reduced earlier", said a trader who refused to disclose her name at the Ikeja motor park, but who heaved a sigh of relief that smokers are now making a comeback in a big way as they can now smoke their cigarettes without offending the government or anybody.
Tinuke Ojo, who also sells tobacco/cigarettes in Ogba area of the state showed lack of awareness about the law banning cigarette smoking in public places but recalled that her sales dropped at a point.
''There was one time people stopped buying cigarettes from me, I didn't know what happened to my customers then but everything has changed now, I am selling very well now. I get customers everyday and sell up to fifteen packs of cigarette a day''
Experts are however worried about the enforcement of the law.
President, Nigerian Medical Association, Dr Osahon Enabulele, is worried about how the public will comply given "the sub-optimal levels of public awareness and health education on the dangers associated with tobacco smoking."
"We are also worried over the absence of cigarette smoking withdrawal programs, particularly as it affects the fate of citizens who have not been prepared for the drastic withdrawal from the highly addictive and cancer inducing substances contained in cigarettes," he said.
He noted that nicotine patches and e-cigarettes that mitigate the withdrawal symptoms in smoke quitters are not readily available in Nigeria.
Also the national chairman, Association of Public Health Physicians of Nigeria (APHPN), Professor Tanimola Akande explained that non-smokers who are exposed to second hand smoking in restaurants, government buildings and health care facilities die as a result of complication arising from tobacco epidemic.
Besides, several others suffer poor quality of life sequel to tobacco related sickness.
Akande also disclosed that about 18 million children are exposed to second hand smoke in their homes while 27 million are exposed in public places.
He said that the recent Global Adult Survey (GATS) carried out in Nigeria revealed that most people were exposed to second hand smoking in public places. "Worldwide, the tobacco epidemic kills nearly six million people each year while many more suffer poor quality of life from tobacco related sicknesses.
"Not only smokers die from smoking as evidence shows that for every eight smokers who die from smoking, one non-smoker die from second hand smoke."
However Lagos State Environmental Protection Agency, LASEPA says anybody caught smoking in public places in Lagos State will be arrested and prosecuted from the 17th of August.
General Manager, LASEPA, Engr. Rasheed Shabi, said enforcement would begin on 17 August, 2014, reiterating that government did not ban smoking in Lagos, but banned smokers from smoking in public places.
He said when the smoking bill was signed into law by Governor Babatunde Fashola on 17 February, 2014, six months grace was given to enable proper sensitization to be carried out before enforcement.
"We have engaged hoteliers and told them to create a place where smokers can smoke and such places must be ventilated. Industries, event centres and others should carve out specific places where smokers can smoke but not in public places.
"We are the agency that will implement this law and enforcement will start on 17 August. Our staff will go round to ensure that people comply with this law by not smoking in public places. We are up to the task and if there is need for more staff, we will request for such," he added.
"We will unveil the non-smoking signs that will be put in public places to stop people from smoking in such places and we will be doing this sensitization in collaboration with the British Tobacco Company," he added.



Lagos 2015: How far can Jimi Agbaje go in PDP?

Ayodele Samuel in Lagos ex-rays the chances of Jimi Agbaje clinching the Lagos PDP ticket in the next election.
Since his entry into the Peoples Democratic Party (PDP) in Lagos political permutations have taken a new dimension. Jimi Agbaje is not new to Lagos politics; he was a staunch member of the Alliance for Democracy (AD) and Action Congress (AC) until 2007.
In 2007, Agbaje was touted to fly the ticket of the AC until the party under the control of the then Governor of Lagos state, Asiwaju Bola Tinubu decided to do otherwise. Incumbent Babatunde Fashola surprisingly emerged as the party flag bearer for that election.
Agbaje in his unrelenting desire to govern the center of excellence, took his interest to the Democratic People Alliance (DPA) where he contested the election and came second after Musiliu Obanikoro who flew the PDP kite at the 2007 poll.
Since then Agbaje has been the bride of all opposition parties in Lagos state.
Agbaje, finally decided to join the PDP after apparently being promised the party's governorship ticket by the leadership of the party at the national level.
Before finally deciding on the PDP, Agbaje had flirted with the Labour Party (LP) but apparently realizing that the party may not help his aspiration of governing Lagos state, decided on the PDP but not after serious politicking and negotiation with the leadership of the party.
Agbaje, disclosing why he chose to achieve his governorship ambition on the platform of the PDP, in 2015, described PDP as the most viable platform he needed to bring about the desired change by Lagosians.
"I decided to choose the PDP to realize my political ambition based on the common and aggregated opinion among the core of my supporters across the state that the party was the most viable platform interested in causing the change desired by Lagos people."
The decision to bring Agbaje to PDP was hatched by the trio of former National Deputy Chairman of the party, Chief Bode George; former Minister of Works, Senator Adeseye Ogunlewe; and the Chairman of the state chapter of the Subsidy Re-investment Empowerment Programme (SURE-P), Chief Bode Akindele. The trio was allegedly disturbed by the growing influence of the Minister of State for Defence, Senator Obanikoro.
With his position as the Minister, Obanikoro has automatically assumed leadership of the party in the state which has not gone down well with George, Ogunlewe and Akindele.
They therefore brought in Agbaje who they believed was the only aspirant that can face Obanikoro when the chips are down.
The trio might not be far from the truth, Agbaje, a pharmacist-turned politician since 2007 has maintained his cozy relationship with larger blocks of Afenifere, the pan Yoruba group, where he rose to prominence as an Afenifere foot soldier, serving the umbrella Yoruba socio-political group as treasurer.
Agbaje did not go into oblivion after the 2007 poll. He remains relevant in Lagos politics despite his decision not to contest against Fashola in 2011.
He was able to build a large support base among youths in the state who perceives him as a role model and mentor. Today he's seen by young people of the state as an actor without blemish and tainted pedigree. Agbaje maintained a good relationship with his supporters across the state.
Bode George and his political gladiators, several sources said; impressed it on President Goodluck Jonathan that only Agbaje can deliver Lagos for the PDP.
At the meeting with President Jonathan, Agbaje insisted that he would only join the PDP if assured of the party governorship ticket without having to go through the process of party primaries.
It was alleged that President Jonathan was not strictly positive on that but was reported to have promised a ministerial ticket even if the governorship ambition failed.
However, Bode George and his group reportedly came back to Lagos and informed the leadership that President Jonathan had approved that Agbaje be given the party's ticket on a platter of gold.
However, the party's leadership in the state smelt a rat and have thus insisted that a level playing ground primary will be organized for all aspirants to test their popularity.
The party chairman in the state, Olatunji Shelle, reportedly told Agbaje when he officially presented himself as a member of the party, that the party will organize a primary to pick its candidate.
Shelle was reported to have even sworn with a Bible on the occasion that the party will not reneged on conducting primary to pick all its candidates for the coming elections.
Also, all the aspirants of the party including Bode George's protégé, Ade Dosunmu, who was the party's candidate in the 2011 governorship election in the state, have vowed not to withdraw for Agbaje, saying he is ready to battle the new decampee.
Dosunmu, a former Director General of NIMASA said "We will all go to the field to test our popularity. Nobody will withdraw for any aspirant. Let us all go to the field.
"One thing I know clearly in this party is that there is no imposition. There is nothing like imposition in PDP. Everybody is welcome into our party. We received the news of Agbaje's defection to our party. He is welcome.
"If the present governor is ready to join the PDP, we will go and give him our membership card. In politics, I believe in the school of thought that the more the merrier. Joining a political party is one thing. Ambition is another thing. He must first join PDP. He must first belong to the party. He must first contribute to the building and development of the platform on which he wants to contest.
"But there is no discrimination in PDP. If you come in today and intend to contest, you are free as long as you meet the requirements in the constitution. So, we have no problem with anybody coming in. We will all go to the field. It is the field that will determine who wins at last.
"What the party basically needs is a credible candidate that will be able to win the governorship election. It is the primaries that will produce a candidate. It is not outside the primaries. It is the primaries that will produce a candidate just like what we all witnessed in Ekiti," he said.
Another aspirant, Adedeji Doherty, told confidants that there is no way he will step down for any aspirant as he has all it takes to win the party's ticket at a level playing primary.
The Obanikoro camp has remained quiet but it has perfected its plan to ensure that the Minister of State for Defence picks the party's ticket for the 2015 governorship election in Lagos state.
Although Agbaje's followers are skeptical about his alliance with the PDP, many of them believed it would amount to moving from frying pan to fire, if he is denied the ticket.
With these mounting oppositions on Agbaje's road to Alausa, Lagosians are waiting to see how far his passion for good governance in Lagos can go.

Buhari campaign: A carnival for change in Lagos

Despite the early shower of the first rain in the year 2015 in Lagos State, last Friday would continue to remain memorable in the political heart of members and supporters of All Progressives Congress (APC) who filled the Teslim Balogun Stadium, Surulere to its brim, for what it called carnival for charge. Ayodele Samuel was there.
They defied the heavy traffic that took over all roads leading to the stadium; they thronged out in their thousands, with pomp and pageantry to receive the All Progressives Party (APC) presidential candidate, General Muhammadu Buhari who had came to inform them of his plan if elected into office.
At about 8:10am, party members arrived the venue with various party branded attire waving their brooms and dancing to live music supplied by King of Fuji music, Wasiu Ayinde (Kwam 1) and other musicians who delighted supporters in the drizzling rain.
The crowds were also entertained by comedians, Nollywood artists, including Adebayo Salami, Jide Kosoko, Yinka Quadri, Davido, Olaminde, Mevins Crew, Fathia Balogun, Femi Adebayo Afonja Sanyeri among who also endorsed the APC candidates.
Food hawkers, petty traders also made brisk businesses at the venue as they sold food, drinks ,brooms, T shirts and APC branded hats to party members and supporters.
Not missing in action were representatives of the physically challenged persons who expressed displeasure over none signing of the physically challenged bill into law by President Goodluck Jonathan.
Their message reads: "Nigerians should vote Buhari and Osinbajo because Jonathan refused to assist us on the physically challenged bill. Adding that they went to Abuja twice but the president did not assist them on the bill to be passed into law."
Kick starting the rally, Director General of the APC Presidential Campaign and governor of Rivers State, Rotimi Amaechi lampooned the Peoples Democratic Party (PDP) of being afraid of going to the election because the APC is fully ready, insisting that election must hold on February 14th. He said Nigerians will defend their votes.
"Any governor or president that cannot show what he has done for people should not be allowed to come back. PDP is afraid of election. They have seen that the people are with us, if they rig the election, we will stand by our election without leaving the polling unit. Our prayer is that Jonathan should not come back.
"When the President came to Rivers, he admitted that did not do anything in the state. When he comes, he should point out one thing he has done and I would point out many things that I have done. He made a promise to the people of Rivers in 2011 and he failed. We don't want a man who cannot fulfill his promises and that is why he cannot return as president," Amaechi told the crowd.
In his speech, a former governor of Lagos and the national leader of the APC, Bola Tinubu said that Buhari was chosen as the candidate of the party because he has been very consistent.
According to him, "Gen Buhari would have chosen to sit back and relax at home and not bother about what is happening in the country, but it is patriotism that has made him to agree to contest. It is about the future of the country so we should not play the politics and tribe of religion. Buhari was chosen not because I was not interested in becoming the president. I am very capable, intelligent, honest and richer. But Buhari was chosen because he has remained consistent and he is the change that Nigeria needs right now.
"In the past 16 years of democracy, we have seen all sorts of political games, but Buhari has remained steadfast and consistent. He is an advocate of change and a voice for the poor. I pray that those who talk about his age will live as old as he is.
"We are in great crisis in this country and we have faced a lot of challenges and we need someone with the will to effect change. When South Africa was about to disintegrate, Nelson Mandela, who was 75 years old was called to rescue it. When America was in crisis, they called a 70 years old Ronald Reagan to come and rescue America.
"When Britain was in crisis, they didn't call a man who is in the parliament, they called Winston Churchill who was 75 years old then and who was a retired general to rescue it.
"When we started the APC, people thought that the merger would not work, but I told them that there was a storm coming and we have appealed to Buhari to step in and rescue the country."
"One man that has been consistent and steadfast, courageous and advocate of the poor is Buhari". Tinubu said that he knows Nigeria will get better with his kind of leadership.
Osun State Governor, Ogbeni Rauf Aregbesola, on his part, stressed the need to create a producing industry rather than consuming what is not produced in the country.
"Jobs cannot be created by wrong policies. We need to revive the industries, to ensure that we begin to produce and not consume alone. Rather than creating jobs, they created fraud. It is time to bring in the trusted person. For us to fight corruption, we need someone who hadn't stolen before."
However Rochas Okorocha, the Imo State Governor, in his own words, said politics should not be based on religion or tribe. "We must not play politics of religion and tribal issues."
Chief John Oyegun, national chairman of the APC, admonished that people should go and collect their PVCs, without which they may not be able to vote leaders of their choice.
"I have seen people's sweat of change. My prayer is that no one should be stupid enough to ignore this momentum of change. I urged you to obtain your PVC."
Not taking the back stage, Mrs Aisha Buhari, wife of the APC presidential candidate, said the electorate must be educated on how to thumb print. "As we are all yearning for change, and for change to be actualized, we must educate the electorate on how to thumb print," she said.
On his part, General Buhari however stressed that his party has identified three major problems to tackle if elected, saying that the issues identified are insecurity, the dwindling economy, bribery and corruption, while promising that the issue of the dwindling economy and the devaluation of the naira will soon be a thing of the past.
The former Head of state said "my party has identified three major aspects in dire need of solutions which are insecurity, the dwindling economy, bribery and corruption. When I become president, these things will become a thing of the past.
"What is happening in the North-eastern part of the country is unacceptable. I know that the Nigerian Police and the military are capable of restoring peace in the country and it is very important that they are well equipped to do that.
"In terms of corruption, whatever my administration is able to save when all the leaking holes are plugged will be diverted to the building and equipping of schools.
"The Nigerian Airways is no more, our railway system is moribund and the level of power supply we have is not more than what was inherited in 1999, so we need to vote the PDP out for the change we need to take place," Buhari said.

Agonies of Nigeria’s pre-paid meters manufacturers


quantum key prepayment electric meter, paying for electricity as you use itFor Nigerians who invested in the local production of pre-paid meter, these might be a very bad time, as continuous importation of the products threaten to keep them off the market in a very short while, Ayodele Samuel writes.
Although the Federal Government has directed all the electricity distribution companies in the country to patronize local manufacturers in line with the policies put in place by government, designed to ensure the accelerated development of the industrial sector, local manufacturers of pre-paid meters are still wallowing in poor patronage.
Even though they needs about 50 percent market share to break even, most DISCOs still derived pleasure in importing pre-paid meters.
They believe halting the importation of meters into the country will promote growth in local content by supporting local manufacturers, which will in turn, spur improvement in quality and job creation for the teeming unemployed youths in the country.
Like Unistar Hi-Tech Systems Limited, a local pre-paid meter manufacturing company, it has retrenched more than 70 per cent of its workforce due to low patronage of its products by electricity distribution companies in the country.
According to the Vice-Chairman of the company, Atilade Bolarinwa, the situation followed the low patronage from investors in the distribution segment of the national electricity sector.
He lamented that the situation had made the company to stop production, saying that the already produced meters were now kept in a warehouse.
"Presently, the Ikeja and Eko Electricity Distribution Companies have not bought a single pre-paid meter from the company since they were privatized but we thank God the Ibadan Electricity Distribution Company (IBEDC) is trying. They have so far bought five thousand meters from the company since inception and we have over 200,000 meters on ground and we can't produce again until we sell the ones in the warehouse," Bolarinwa said
Unistar Hi-Teck System Ltd, Project Manager Mr Oludotun Taiwo, collaborated his boss that lack of patronage by distribution companies might force the company to close down.
Taiwo said that the firm now operates at less than 10 per cent of its installed capacity due to poor patronage.
"The company has the capacity to produce more than three million pre-paid meters in a year, but currently under producing due to low patronage, we have produced over 150,000 pre-paid meters which government nor any firm had applied for.
"We had staff strength of 100 workers apart from expatriates when we started in 2004, but most of the Chinese hands have left due to low patronage, we have been forced to reduce our staff strength to 40 and our product is of high standard when compared to the imported ones," Taiwo lamented.
In Momas Meter Manufacturing Company Limited (MOMCOL) the story of poor patronage is the same.
MOMCOL Chairman Engr. Kola Balogun in an interview with Peoples Daily said that the low patronage was stifling the growth of local industries.
"The story of poor patronage is still the same in meter manufacturing where foreign firms are better patronized and recognized by government agencies. I can confidently say that we local manufacturers of meters can meet our supply needs.
"I feel it important that Nigeria should stop importing electricity meters so that we can migrate from importing meters to manufacturing of meters of various types in Nigeria.
"In MEMMOL alone, we have a production capacity of 50,000 to 100,000 meters monthly, not to mention the production capacity of other companies in the same business,'' Balogun said.
"I can tell you that our company has 100 per cent local content in the manufacture of meters, even all our operations and the production processes are managed by Nigerians." He added.
Asked if the local manufacturers are enjoying government support, Balogun said "we have not received enough support from the government sector. Why should we import when there is a company that produces pre-paid meters here in Nigeria? We understand that the market is there, but the level of patronage has been discouragingly low. We need about 50% of the market to break even."
Secretary, Electricity Meters Manufacturers Association of Nigeria (EMMAN), Mr. Muideen Adebayo noted that his members out of sheer patriotism and numerous challenges confronting manufacturers had undertaken undaunted risk with borrowed funds on high interest rate to established world class factories adding that local manufacturers has production capacity of 1.2 million meters per annum with room for future expansion.
He urged government to create and make available at two per cent special intervention fund in form of soft loans to the local electricity meter manufacturers in order to create more jobs for Nigerians, boost the annual revenue earnings of Nigeria and curb capital flight to their counterparts from China.
For Raed Hassaniel ,Managing Director Elsewedy Electric, he wants the federal government to ensure that their businesses survives extremely harsh conditions by enacting protectionist law.
"Every year, Nigeria import in excess of 10,000 transformers from different countries yet, the manufacturers of transformers in Nigeria are struggling to survive. Energy meters are also skewed in favour of foreign companies despite the fact that there are capable manufacturers in the country".
However Chairman of the Ikeja Electricity Distribution Company Abiodun Ajifowobaje said the DISCOs are says willing to partner with any company that met its standard.
Ajisofobaje said that the company must also meet specifications of the Nigeria Electricity Regulatory Commission (NERC).
Aganga however, confirmed that his Ministry has received series of complaints on non-patronage and the influx of meters and transformers into the country by local manufacturers of these items
According to Aganga, "the misconception by Nigerians, that locally made products are of sub standard even when it is obvious that imported ones are inferior needs to be addressed using procurement regime as a tool to develop local patronage. Let us collectively ensure that we use local patronage as anchor to improve standards of Nigerian goods and services"
He added that for Nigerian Industry to thrive, we need to support a strong and growing local demand. It is essential to know that our local market provides a strong base, from which Nigerian products can refine their standards, build a strong base, and then subsequently proceed into the global export markets. Aganga stressed.
Commending the efforts of the local manufacturers for their commitment and resilience, Aganga urged them not to relent in producing quality products as government is all out to provide extensive infrastructure to ameliorate their challenges.
He noted that both the manufacturers and the Distribution companies must collaborate with each other to strive to make meter/transformer subsector a prosperous industry in the Country.


Oil Spillage: the daily battle in Niger Delta

Nigeria Oil Rich, Niger Delta region communities  helplessly  battles oil spillage daily, Ayodele Samuel writes

Freeborn Roland lives in Ikarama community with his family, two of whom are twins less than four months old.
Ikarama, an Ijaw-speaking community along the Taylor Creek in Okordia Clan ,Yenagoa Local Government Area of Bayelsa State, of Nigeria oil rich Niger Delta region
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In 2011, Roland house was gut fire after an oil spill site near his plank building was set ablaze, he lost some of his belongings, money and his children suffered serious health complications, his fears remains as the spill is coming back in 2013.
 
His new home is now surrounded by crude oil; with his family living helplessly in danger of  its hazard.
 'see what these people (oil companies) have done to my kids'' he said while expressing concern of the impact of the spillage on his family, especially his new born twins.
 
Ikarama community blessed with oil facilities which  include wellheads, manifold and pipelines belonging to the Nigerian Agip Oil Company [NAOC] and Shell Petroleum Development Company [SPDC] , fishing, farming, hunting and weaving are some of the traditional means of livelihood of the people but spillage of crude oil remains a nightmare in the community.
 Oil spillage is a regular occurrence in oil producing communities in the Niger Delta region, sometimes very close to living homes like the Roland's residents.
This time its fresh crude oil spilling from Shell's Okordia/Rumuekpe Trunk line of Ikarama community.
Although Roland's family is closest to the affected swamp, other families also live in close proximity.
 Apart from the swamp, the gutter around the environment is flooded with crude oil and flowing across to another swampy communities with the help of heavy rains.
Apart from the crude oil spreading to cover farmlands, ponds, lakes and even the Taylor Creek, Environmental Activists says oil companies often pay youths to set fire to the area where the spill has occurred.
This can reduce the spread of the oil but has other detrimental effects on the environment and residents.
 
Its spillage
  
 "The first sign of the spill was when we perceived the smell of fresh crude oil in the air, early Tuesday, 4th June, 2013. And, because of past experiences and strong current of the smell, we [with her husband] tried to trace and we later discovered that the spill had just occurred along the pipeline near us. Crude was just oozing out from the ground and flowing into the swamp around," Freeborn Roland wife,  Patience said.
 
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"As you can see now, the crude oil has spread all over the swamp. We that are living so close will suffer the consequence again; you are aware how my children fell sick last time. Even now they have not fully recovered. My twins are just about three months of age and, you can imagine the risk of living within this immediate environment highly impacted by crude oil again. We pray that this time around they don't set fire on the impacted site and that Shell will mop up the crude oil as soon as possible."
 
Angry Community blames Shell
 
Residents of Ikarama condemned officials of Shell Petroleum for their poor and nonchalant response to oil spills in the Niger Delta.
 
Washington Odoyibo the Public Relations Officer of Ikarama Community Development Committee is also angry at the spill but blamed  Shell and third party activities.
"I was annoyed after I got to the spill site and saw that some persons must have tampered with the oil pipeline. It was very obvious; some newly dug mud was around the spot that was spewing crude oil. My anger stems from the fact that our community will not benefit any positive outcome from such spills occasioned by third party activity. "Again, our environment has suffered severely from the negative impacts of countless spills we have experienced. I was in Yenagoa when I heard of the spill on 4th June, 2013 and, I visited the site within hours of that information. It is very unfortunate. The swamp that the crude oil flowed into is in my family land and, this is about the 3rd or 4th time that swamp is being impacted; wasted.
 
"We used to fish in that swamp from time to time. But these oil spills would not allow us to use it anymore. I just hope Shell will mobilize to site and contain the situation. But again, Shell should be held accountable for negligence because SPDC was informed on the 4th about this incident but the company delayed action until Friday, 7th June, 2013. They came to clamp it on Friday but they couldn't conclude and they only succeeded in doing so on Saturday, 8th June, 2013. Now, due to the fact that Shell failed to act promptly, the crude oil has spread all over the swamp. May be that is what Shell wants; those who sponsored the spill. Coming to spread boom in the swamp after the crude has covered everywhere is hypocritical of Shell."
 Asked the cause of spill, the Odoyibo indicated sabotage. "Like I said before, I do not have quarrels with the cause because it was obvious; my concern is Shell's response to the spill."
 
Right Groups demand actions
Amnesty International (AI) recently slam Shell over claims that sabotage was responsible for oil spills in Nigeria, insisting that the oil giant is to be blamed for the spills in Nigeria's oil rich Niger Delta region.
Also Nigeria leading  Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) called on Shell to immediately mop up, clean up and remediate the impacted community.
The group urged  relevant agencies of  Nigeria government to step in to ensure that the impacted environment is properly mopped up and cleaned.
While calling on Shell to look inwards to identify staff and contractors that sponsor sabotage and bring an end to the series of spills in Ikarama and environs, ERA/FoEN advised Community dwellers to resist temptation to engage in acts of sabotage and save themselves and their environment pollution.
 
No spill is acceptable- Shell
 
 "We work hard to reduce the number and volume of operational spills" Shell says on its official website.
A report on the spill obtained from Shell's website estimated the volume of crude that spilled into the creeks 447 barrels. The company estimated that 379 barrels of the spilled crude oil remained in the environment while 67 barrels had evaporated.
"Over the past five years, from 2008 to 2012, just under a quarter of the oil that escaped from SPDC facilities was due to operational causes such as human error or equipment failure. In the case of operational spills the company negotiates compensation with the landowner. It may also help by providing clean water and food, No spill is acceptable and SPDC is working to improve its performance in this area," Shell said.