NATIONAL CHRONICLE NEWSPAPER NAMES GOV. SHEMA MAN OF THE YEAR

NATIONAL CHRONICLE NEWSPAPER NAMES GOV. SHEMA MAN OF THE YEAR Ayodele Samuel, Lagos Governor Ibrahim Shehu Shema of Katsina State has won the National Chronicle man of the year 2011 award.  The Katsina State Chief Executive was the Newspaper's first runner-up for 2010, coming behind the eventual winner, Dr Emmanuel Uduaghan, the Executive Governor of Delta State .   A statement signed by the Editor of National Chronicle Newspaper Peretine Ikenebomeh said Governor Shema emerged the winner of the Annual award beating the Governor of River State, Rotimi Amaechi and Lagos State Governor Babatunde Raji Fashola to the second and third positions respectively.   "In a poll which was conducted through sms, phone calls, emails by the organization, the Kastina State boss pulled over six thousand votes to defeat his closest rival, the River State Governor Rotimi Amaechi who scored over two thousand and five hundred votes to come second and Lagos Governor Mr. Babatunde Raji Fashola who scored over one thousand and five hundred votes to come third out of the over ten thousand readers who participated in the poll.   "Governor Shema came first in all the areas, National Chronicle Man of the year 2011 award was based on. The governor got over 60% votes in the area of security 65% in health, 62% in infrastructure 55% in education, 70% in good governance and 86% in transparency," Peretine added.   He said the emergency of barrister Shema as the National Chronicle Man of the year 2011 did not come to readers of the popular newspaper as a surprise. "Governor Shema, the political godson of the late President Umaru Musa Yar'adua has demonstrated in all his actions and dealing that he is a man of honour, honesty, dedications and trust worthy, a role model in grassroots development. The area the people of Kastina have felt the impact of their governor includes, health education, road construction, housing, water supply, poverty eradication, market development, security amongst others.   "As rightly predicted by the National Chronicle in 2010 when he emerged as that year first runner-up that it will be easier for the head of a camel to pass through the eyes of a needle than for any candidate to defeat barrister Shema in 2011 elections, and that Governor Shema was a king awaiting coronation on a may 29, 2011. True to this prediction, the Kastina state governor won the 2011 Governorship elections for Kastina state convincingly by sending the onslaught of the C.P.C in Kastina state which incidentally happens to be the home of the CPC presidential candidate, Gen Mohammed Buhari."   This award has further confirmed that the readers of the newspapers who voted over whelming for the Kastina State Governor as the first runner-up to Governor Emmanuel Uduaghan in 2010 did not made a mistake neither was it a fluke. The award will be presented to him soon.

N100bn Textile Fund: FG, NASS under pressure to investigate disbursements, beneficiaries

The Federal Government and the National Assembly is been pressured by traders and other stakeholders in the textile sector to probe the disbursement and beneficiaries of the 100 billion textile bailout fund. Peoples Daily reliably gathered that various petitions and letters have been written to the Presidency and National Assembly by concerned stakeholders in the textile sector who lamented that four years after the disbursement of N100 billion bailout fund for the dying textile sector, the textile market is yet to ‘bubble’ with locally produced products. The textile bailout fund was established by former President Olusegun Obasanjo’s administration as a promotional facility to revive and encourage new investments in the cotton and textile sectors to boost production of textile goods in the country. Some of the groups, which included the National Association of Nigerian Traders (NANTS) and the Association of Banks, Insurance and other Financial Institutions (ASSBIFI) called for the urgent investigation of the fund which they say has be a blessing to the revival of textile industry in the country. Other stakeholders promised to continue pressurising the government to the investigate “the beneficiaries, how they emerged, how was the money spent and mode of disbursement of the fund.” The National President of ASSBIFI, Comrade Sunday Salako said, “We call on the Presidency to investigate the N80 billion intervention fund to resuscitate the prostrate textile sector, with N20 billion which was supposedly earmarked for the cotton sub-sector/farmers, N50 billion meant for textile manufacturers, while N10 billion was to be dedicated to strengthening Customs surveillance and non-state actors advocacy targeted on campaigns for Made-in-Nigeria textile products that never achieved it set target.” Also, NANTS President, Comrade Ken Ukaoha, in a petition to the Presidency said the fund, which was disbursed through the Bank of Industry (BoI) was meant to revive the textile sector but has not materialised till date. Ukaoha also called on President Jonathan to urgently save the textile sector from total collapse, saying the textile sector of the economy, if fully revived by strengthening the Nigerian textile industries, would create over 500,000 jobs. “We have written President Jonathan to remind him that the textile industry used to be the most vibrant sector of our economy, employing at a time, over 500,000 people. Cotton was then in abundance in Nigeria with an average annual production of 320,000 metric tonnes or 111,000 metric tonnes lint. There were over 125 operating textile companies as well as 72 ginneries spread all over the country producing for the yearning Nigerian market. Salako, on his part said, “There were over 125 operating textile companies as well as 72 ginneries spread all over the country producing for the yearning Nigerian market, making the industry, apart from the banking sector, to be the most vibrant sector of our economy in the mid 70s, employing at a time, over 500,000 people.” According to Salako, President Jonathan’s administration may need to consider adopting a radical approach through a subtle pronouncement targeted at strongly encouraging Nigerians towards patronising Made-in-Nigeria textile products, by reviewing Nigeria’s membership and commitment to the World Trade Organisation (WTO) as its policies, which in most cases are anti-developmental in nature to the economy of Nigeria. “We critically envisage that such policy pronouncement is very critical towards generating the employment for millions of Nigerians envisaged by the nation’s development agenda- Vision 20:2020", he said. He also called on President Goodluck Jonathan to create the enabling environment, especially for the survival of the manufacturing industries to revive the textile sector.

We will sustain war against substandard - DG

The standard organization of Nigerian (SON), Director General Dr. Joseph Ikemefuna Odumodu in this interview with our business correspondent AYODELE SAMUEL, speaks on the agency plans to intensify the Zero Tolerance Campaign against substandard products in country. Could give us an overview of activities in 2011. 2011 was indeed a busy year for us. It could not have been any less given both the mandate of the Federal Government to the SON and the realty of the issue of sub-standardisation in the country. It was so endemic that there was hardly any product line that was not being sub-standardised, the details of these we have spoken about, at various interactions before now. On completion of the baseline study that revealed that over 85 percent of consumer products were substandard, we set out a 6 point agenda to drive the changes we sought in a hurry to stop the carnage and the callous de-industrialisation of Nigeria. In which way is your agency partnering with Consumers and other stakeholders? As part of the initiatives to drive home SON’s “Zero Tolerance to Substandard Products” initiative, the agency, in collaboration with the Consumer Protection Council (CPC), has met with leaders of the Electrical Dealers Association of Nigeria (EDAN) and General Electrical Dealers Association (GEDA). The aftermath of the meeting was the setting up of the first ever Consumer Help Desk which should help in Enhancing the efficiency and effectiveness of the two regulatory agencies in discharging their statutory responsibilities of ridding our markets of substandard products and protecting the consumers. We also carried out a sensitisation of operators in the steel and iron bars sector , At the meeting, we warned of the prevalence of substandard steel products in the country, declaring our resolve to check it. Some of the directives issued out to steel manufacturers and producers present at the meeting were: all steel made in or imported into the country must bear approved identification marks by SON, all manufacturers and importers were directed to ensure that their products conform to the requirements of NIS 117:2004, manufacturers were directed to ensure they acquire modern testing equipment for chemical and mechanical properties of iron rods and a task force was set up to ensure compliance by stakeholders we had a meeting with primary aluminum producers which led to the review of the Nigerian Industrial Standard for the product. At that meeting, we recalled that efforts made to sanitise the sector had been marred by fraudulent activities ranging from poor identification of products and false declarations of aluminum sizes. We also made it clear that the minimum thickness approved for the product is 0.40 millimeters. Operators were mandated to ensure compliance with the NIS specifications or risk seizure and prosecution by SON. Aluminum producers were also mandated to ensure that every sheet produced or imported by them bear appropriate identification marks from factory to the roofs maintaining that all cladding and flashing materials shall have a minimum thickness of 0.40 millimeters. Last year December, we also meet with representatives of major dealing companies in attendance, including Techno, Panasonic, Sharp and Sony, were we declared our intention to collaborate with manufacturers, and the dealers were advised to educate consumers as well as SON operatives on the unique features of brands they deal on. The need for training of dealers was underscored while the stakeholders were advised to adopt the relevant standards with available ISO or national standard marks. Operators are to collaborate with SON on capacity building for staff and laboratory enhancement. Several other meetings were also held with other groups like Textiles Manufacturers Association (NTMA), Onitsha and Nnewi markets. What are you Targets and Programmes for 2012? We shall build on the gains of 2011 this year. Our primary target remains to achieve a further drastic reduction in the level of substandard products in the country. In 2011, our study revealed that SON achieved a total reduction of substandard products by about 25 percent. However, this reduction was reflected in the quality of products that were imported into the country between April and November 2011. In terms of awareness, we achieved only 15 percent level among consumers surveyed. Not much was however achieved in the level of substandard products on sale in various markets in Nigeria . This year, our target is a further 30 percent reduction in the penetration of substandard products in the country, both in terms of influx and circulation. Our strategy will be to build on the current collaborative efforts with other government agencies like Nigeria Customs, Consumer Protection Council, Nigeria Police and other relevant bodies to achieve the ideals of the President Goodluck Jonathan transformation agenda. We have worked out the logistics and for us, this would mean among others, the opening of more states offices and strengthening of the existing ones. It would also mean a reappraisal of our internal capacities, manpower, processes etc for greater effectiveness so that the agency would be able to meet her targets. We hear of complains in some quarters about used vehicles; what is your agency doing about this? The federal government policy for used vehicles prescribed only age restrictions. We shall not attempt to change that. However, as a result of several complaints from a cross section of Nigerians, we have elaborated standards for used vehicles where we have specified safer levels for a number of hazardous chemicals that are injurious to health and or the environment. When this new policy commences, we shall work with NESREA, NAC and Central Bank of Nigeria to ensure full compliance. All over the country, we have different kinds and grades of used vehicles with killer emission levels, and this we have to reduce at acceptable levels of safety. To some people, these emissions may seem innocuous, but when you do the chemical analysis, you find that several Nigerians are inhaling fumes of very dangerous dimensions with dire health consequences. We observe that there are critical issues of substandardisation in the manufacturing sector; could you pleas give us an update on meeting standards with regards to manufacturing? We shall review the Mandatory Conformity Assessment Programme (MANCAP) to meet with the present day reality for manufacturing for Nigeria markets. At the end of the day, it would further help in sanitising the sector and giving every genuine player opportunity of a fair playing ground. One major element of this review is to focus on the processes, input material, people skills and internal systems rather than on finished products quality. We shall facilitate collaboration to improve industrial capacity and products’ quality standards in MANCAP. We believe our initiative will assist build the capacity of the indigenous entrepreneur and help the course of the Federal Government’s economic reform programme. We just concluded the review of the SON Conformity Assessment Programme in December 2011 as part of the measure to check the incidence of substandard products. The new measures will lead to a more robust IT gateway with risk management profiling for importers and their consumer products. We shall implement the changes within the first quarter of 2012. Aside big businesses, do you have intention of helping to support small businesses in any way? One of our major projects in 2012 is to build capacity with Micro, Small and Medium Enterprises. There are well over 10 million MSMEs in Nigeria and they are essentially critical to job creation in this economy. We have discovered that most MSMEs have the genuine intention to manufacture quality products but lack the capacity to do so. SON shall identify 250 MSME’s and work very closely with them to certify them towards ISO 9001 (quality management systems) and ISO 22000 (food safety management system) at no cost. The outcome of this collaboration will be better, sustainable quality products in a system that cuts off non-value adding activities. We would be collaborating with the Nigerian Association of Small Scale Industrialists (NASSI) and the Nigerian Association of Small and Medium Enterprises (NASME) in this regard. What is the next step in the battle against substandard? We continue to intensify the Zero Tolerance Campaign against substandard products. This year, we are going to take it to the Eastern and Northern parts of the country, as well as the Middle Belt area. Is it not comforting to some degree that the average Nigerian, at least in the Lagos-West area now talks or is more conscious about the issue of substandard products in the country? In fact, at the level of consumers, some are beginning to realise that they have a responsibility to ensuring that they buy quality and can deliver on the things they promise to deliver.

STRIKE SUSPENDTION: CSO NOT CONSULTED

NLC betrayed Nigerians – Kayemo Ayodele Samuel, Lagos Major civil societies in the anti subsidy removal struggle which include the Joint Action Front (JAF) - the pro-labour civil society partner of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) in the Labour and Civil Society Coalition (LASCO) and its allies of Nigeria Medical Association Lagos, Nigeria Bar Association Ikeja and Lagos, The Save Nigeria Group and the various Strike Action Committees yesterday dissociate themself from the declaration by the President of the NLC and TUC for the suspension of the Strike/Mass Action that commenced on January 9th saying were not consulted. JAF Secretary Comrade Abiodun Aremu in a statement said the suspension of the Strike/Mass Action as endorsed by Presidents of NLC and TUC as a betrayal of this legitimate demand by Nigerians that fuel price must revert to N65 as a condition for negotiation. He said the groups had resolved to intensify the struggle for the reversal to N65 and on other fundamental issues. “This was demonstrated with the street protest in Lagos today under the banner of JAF that was violently terminated at a point on Ikorodu road by the combined team of armed personnel that were deployed midnight across the country. “JAF reiterate its commitment to the needs and aspirations of the Nigerian people. Nigerians should not be discouraged by the abrupt and unwarranted suspension of strike by its Labour partner; neither should the militarisation of the protest centres deter Nigerians in their resolve to rid the polity of this class of looters and profiteers that are responsible for mass poverty, unemployment, social insecurity and untold hardships of the majority of Nigerians.” The Save Nigeria Group spokesman Yinka Odumakin told Peoples Daily last night that the group was not consulted before the action was taken “we are not in support of imposition of 97 on Nigerians, we are shocked by Labour action. “ We demand a reversal to the pre-Jan 1 pump price of N65 per litre as a basis for a conducive atmosphere for a national conversation on the oil sector and how to deal with the corruption that has brought this needless crisis on the 7th largest producer of crude in the world that has been made to depend on import for it's refined product consumption.” Also the Campaign for Democratic and Workers’ Rights (CDWR) said NLCagreeing to the N97 per litre when the working masses are still struggling for reversal to N65 per liter of fuel is a betrayal. CDWR Publicity Secretary Chinedu Bosah said The announcement by the TUC and NLC presidents, Peter Esele and Abdulwahed Omar respectively to the effect that they consulted with pro-people organizations/civil society organizations before agreeing to suspend the strike was a lie. “ It has shown that the labour leaders with an historical mandate to lead the suffering working masses of the country out of misery, oppression and dictatorship is shying away from this responsibility simply because they do not have an alternative socio-economic and political agenda different from neo-liberal capitalist policies.” He said the suspension of the strike by the NLC and TUC is not so much about compromise, which is not unconnected, but that these trade union centers lack the program, strategy and tactics to sustain the struggle, let alone win the struggle. Also Lagos based lawyer Festus Kayemo describe the NLC action as been unfair to Nigerians and a three step backward in the struggle to free Nigerians from the wasteful government. “It was too quick for labour to accept that position because the rot we are talking about went beyond 65 the issue is as a result of previous decay in the system, until we see have some action to address fundamental issues we should not accept the government offer”

FACTS YOU MUST KNOW: SUBSIDY MADE SIMPLE (SMS)

Pastor ‘Tunde Bakare DEFINITION To subsidise is to sell a product below the cost of production. Since the federal government has been secretive about the state of our refineries and their production capacity, we will focus on importation rather than production. So, in essence, within the Nigerian Fuel Subsidy context, to subsidise is to sell petrol below the cost of importation. 2) THE UNSUBSTANTIATED CLAIMS OF THE FEDERAL GOVERNMENT The Nigerian government claims that Nigerians consume 34 million litres of petrol per day. The government has also said publicly that N141 per litre is the unsubsidised pump price of petrol imported into Nigeria. (N131.70 kobo being the landing price and N9.30 kobo being profit.) 3) ANNUAL COST OF IMPORTATION Daily Fuel Consumption: ​​34 million litres Cost at Pump: ​​​​N141.00 No. of days in a regular year: ​​365 days Total cost of all petrol imported yearly into Nigeria: Litres Naira Days 34m x 141 x 365 = N1.75 trillion 4) COST BORNE BY THE CONSUMERS Nigerians have been paying N65 per litre for fuel, haven’t we? Therefore, cost borne by the consumers = Litres Naira Days 34m x 65 x 365 = N807 billion 5) COST OF SUBSIDY BORNE BY THE GOVERNMENT In 2011 alone, government claimed to have spent N1.3 trillion by October – the bill for the full year, assuming a constant rate of consumption is N1.56 trillion. Consequently, the true cost of subsidy borne by the government is: Total cost of importation minus total borne by consumers, i.e. N1.75 trillion minus N807 billion = N943 billion. Unexplainable difference: N617 billion The federal government of Nigeria cannot explain the difference between the amount actually disbursed for subsidy and the cost borne by Nigerians (N1.56 trillion minus N943 billion = N617 billion). 6) BOGUS CLAIM BY THE GOVERNMENT A government official has claimed that the shortfall of N617 billion is what goes to subsidising our neighbours through smuggling. This is pathetic. But let us assume (assumption being the lowest level of knowledge) that the government is unable to protect our borders and checkmate the brisk smuggling going on. Even then, the figures still don’t add up. This is because even if 50% of the petrol consumed in each of our neighbouring countries is illegally exported from Nigeria, the figures are still inaccurate. Why? WORLD BANK’S FIGURES: POPULATIONS OF WEST AFRICAN COUNTRIES NIGERIA:​​158.4 million BENIN:​​8.8 million TOGO:​​6 million CAMEROUN:​19.2 million NIGER:​​15.5 million CHAD:​​11.2 million GHANA:​​24.4 million The total population of all our six (6) neighbours is 85.5 million. Let’s do some more arithmetic: a) Rate of Petrol Consumption in Nigeria: Total consumed divided by total population: 34 million litres divided by 158.8 million people = 0.21 litres per person per day. b) Rate of Petrol Consumption in all our 6 neighbouring countries, assumed to be the same as Nigeria: 0.2 litres x 85.5 million people = 18.35 million litres per day Now, if we assume that 50% of the petrol consumed in all the six neighbouring countries comes from Nigeria, this value come to 9.18 million litres per day. 1) PATHETIC ABSURDITY There are two illogicalities flowing from this smuggling saga. a) If 9.18 million litres of petrol is truly smuggled out of our borders per day, then ours is the most porous nation in the word. This is why: The biggest fuel tankers in Nigeria have a capacity of about 36,000 litres. To smuggle 9.18 million litres of fuel, you need 254 trucks. What our government is telling us is that 254 huge tankers pass through our borders every day and they cannot do anything about it. This is not just acute incompetence, but also a serious security challenge. For if the government cannot stop 254 tanker trailers from crossing the border daily, how can they stop importation of weapons or even invasion by a foreign country? b) 2nd illogicality: Even if we believe the government and assume that about 9.18 million litres is actually taken to our neighbours by way of smuggling every day, and all this is subsidised by the Nigerian government, the figures being touted as subsidy still don’t add up. This is why: Difference between pump price before and after subsidy removal = N141.00 – N65.00 = N76.00 Total spent on subsidizing petrol to our neighbours annually = N76.00 x 9.18 million litres x 365 days = N255 billion If you take the N255 billion away from the N617 billion shortfall that the government cannot explain, there is still a shortfall of N362 billion. The government still needs to tell us what/who is eating up this N362 billion ($2.26 billion USD). 1) ILLOGICAL ASSUMPTIONS i) We have assumed that there are no working refineries in Nigeria and so no local petrol production whatsoever – yet, there is, even if the refineries are working below capacity. ii) Nigeria actually consumes 34 million litres of petrol per day. Most experts disagree and give a figure between 20 and 25 million litres per day. Yet there is still an unexplainable shortfall even if we use the exaggerated figure of the government. iii) Ghana, Togo, Benin, Cameroun, Niger, and Chad all consume the same rate as Nigeria and get 50% of their petrol illegally from Nigeria through smuggling. These figures simply show the incompetence and insincerity of our government officials. This is pure banditry. 1) FACT 9: The simplest part of the fuel subsidy arithmetic will reveal one startling fact: That the government does not need to subsidise our petrol at all if we reject corruption and sleaze as a way of life. Check this out: a) NNPC crude oil allocation for local consumption = 400,000 barrels per day (from a total of 2.450 million barrels per day). b) If our refineries work at just 30%, 280,000 barrels can be sold on the international market, leaving the rest for local production. c) Money accruing to the federal government through NNPC on the sale, using $80/bbl – a conservative figure as against the current price of $100/bbl – would be $22.4m per day. Annually this translates to $8.176bn or N1.3 trillion. d) The government does not need to subsidise our petrol imports - at leastnot from the Federation Account. The same crude that should have been refined by NNPC is simply sold on the international market (since our refineries barely work) and the money is used to buy petrol. The 400,000 barrels per day given to NNPC for local consumption can either be refined by NNPC or sold to pay for imports. This absurdity called subsidy should be funded with this money, not the regular FGN budget. If the FGN uses it regular budget for subsidising petrol, then what happens to the crude oil given to NNPC for local refining that gets sold on the international market? 1) TACTICAL BLUNDER The federal government is making the deregulation issue a revenue problem. Nigerians are not against deregulation. We have seen deregulation in the telecom sector and Nigerians are better for it, as even the poor have access to telephones now right before the eyes of those who think it is not for them. What is happening presently is not deregulation but an all-time high fuel pump increase, unprecedented in the history of our nation by a government that has gone broke due to excessive and reckless spending largely on themselves. If the excesses of all the three tiers of government are seriously curbed, that would free enough money for infrastructural development without unduly punishing the poor citizens of this country. Let me just cite, in closing, the example of National Assembly excesses and misplaced spending as contained in the 2012 budget proposal: 1. Number of Senators​​​​​​109 2. Number of Members of the House of Representatives​​360 3. Total Number of Legislators​​​​​469 4. 2012 Budget Proposal for the National Assembly ​​N150 billion 5. Average Cost of Maintaining Each Member​​​N320 million 6. Average Cost of Maintaining Each Member in USD​​$2.1 million/year Time has come for the citizens of this country to hold the government accountable and demand the prosecution of those bleeding our nation to death. Until this government downsizes, cuts down its profligacy and leads by example in modesty and moderation, the poor people of this country will not and must not subsidise the excesses of the oil sector fat cats and the immorality cum fiscal scandal of the self-centred and indulgent lifestyles of those in government. Here is a hidden treasure of wisdom for those in power while there is still time to make amends: PROVERBS 21:6&7 “Getting treasures by a lying tongue is the fleeting fantasy of those who seek death. The violence of the wicked will destroy them because they refuse to do just.” A word of counsel for those who voted for such soulishly indulgent leadership: “Never trust a man who once had no shoes, or you may end up losing your legs.” This is the conclusion of the matter on subsidy removal: i) “If a ruler pays attention to lies, all his servants become wicked.”(Proverbs 29:12) ii) “The Righteous God wisely considers the house of the wicked, overthrowing the wicked for their wickedness. Whoever shuts his ears to the cry of the poor will also cry himself and will not be heard.” (Proverbs 21:12&13) Thanks for your attention. God bless you all. Pastor ‘Tunde Bakare Sunday, January 15, 2012

OIL CRISIS IN NIGERIA : SHORTAGE OF “KPAYO” IN BENIN

By Ayodele SAMUEL in Lagos and Ablawa BOKO in Cotonou The price of gasoline adulterated commonly called “kpayo” tripled in Republic of Benin following price increase in neighboring Nigeria . The kpayo (the fuel sold in informal sector brought from Nigeria to Benin ) sold usually between 250 and 300 francs (Cfa) per liter, increased to 400 francs on Saturday. Since then, the price of gasoline has climbed. Currently, it is sold at 700 francs per liter. “At the wholesale level, the container purchased 8000 CFA before, is sold today to retailers at 14,000 CFA francs”, said Razack, selling fuel in Cotonou . Within days, the price of kpayo has soared across Benin . This has an effect on people whose main source of fuel is the informal sector. The shortage was related to the recent increase in PMS in border country Nigeria . "Every increase in pump price in Nigeria affects , the distribution of kpayo knows some disruption." said Ernest, fuel seller at Gbégamey ( Cotonou ). Raphael, a client, is surprised that this has lasted as long. "Usually, this crisis comes at the holiday season, and just after, the trend is the opposite," he said. Except that this year, the crisis seems very deep and there are many reasons to worry. The removal of subsidies on fuel prices in Nigeria is the cause. THE GIANT OF AFRICA COUGHS, BENIN CATCHES COLD The Nigerian government announcement on last Sunday has resulted in increase prices at the pump. Nigeria is the first oil producer in West Africa and the only supplier of fuel to the biggest sector of fuel selling in Benin , the informal sector. Because of the removal of subsidies on fuel prices and this oil crisis in Nigeria , the customer begins to feel it very difficult to get fuel. The sellers are speculative and prices vary from one seller to another. Some sellers of kpayo had to store their tables and bottles to engage in other activities. In the ranks of motorcycle taxi drivers called “Zémidjan”, prices are revised upwards. For a distance, a week ago to 100 CFA francs, now it costs more and sometimes twice. The price of travel from one place to another have also increased. Taxi drivers in the international destination of Burkina Faso , Cote d'Ivoire and Togo have also revised their tariff. Some have parked their cars and waiting for the return of the situation to normal. Traffic is more fluid. Clients reconnect with products Sonacop A 800 Francs per liter, the kpayo is very expensive, more expensive than the pump. " The sellers of adulterated gasoline stormed the stations where they refueled to go sell it. Note also that the stations were not prepared for such a crowd" left hear a station manager of the place. According to Ernest, the kpayo was firmly rooted in the habits in Benin . It's like a reflex, people do not ask too many questions. For this purpose they are hopeful that the crisis will be resolved very quickly. Otherwise, the purchasing power of the Benin risks becoming weak. " With a few differences, prices at the stations of Sonacop (national society of marketing of petroleum products) are currently below than those charged by sellers of kpayo. In Sonacop stations, gasoline is sold at 570 FCFA. The rush to these places begins to increase and once daily sales begin to improve. Some students were forced to park their bike at home. They prefer to walk or seek the services of their comrade. SUBSIDIES PRODUCT FROM NIGERIA FIND ITS WAY TO BENIN Large quantity of Nigeria’s PMS are daily smuggled into the Republic of Benin through its Badagry/ Seme porous border after the Nigeria government has subsidies the product for its citizen. In spite of the removal of petrol subsidy by the Federal Government, smuggling of the product into neighboring Benin Republic persists because of price differential. The border towns of Owode and Kpogidi in the Seme-Badagry area of Lagos state, showed that though the removal of the subsidy has increased the price per litre in Nigeria to about N140, the same litre was N250, officially, in Benin Republic . Though the black market price of a litre of smuggled Nigeria petrol in Benin Republic has been increased to N200, it was still cheaper than buying from filling stations there at N250. Until the January 1 deregulation which raised the pump price of petrol from N65 to about N140, smuggled Nigeria petrol was sold at N100 per litre in Benin Republic, while it was N200 a litre at the filling stations in the Francophone country. Residents of Kpogidi (a border town )hardly patronised the filling stations that sold at the official pump price of N250 per litre. the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido had said most of the products claimed to have been imported found their way to neighbouring countries through unscrupulous marketers. For further information on this report contact, Ayodele Samuel in Lagos , Nigeria is a reporter with Peoples Daily Newspaper could be contact on gtms06@yahoo.com Ablawa BOKO in Cotonou , Republic of Benin , is a reporter with Tamtam-afrik newspapers: contact address nadbok@yahoo.fra

2011: Industrial sector still comatose as more firms close shop

From Ayodele Samuel, Lagos The 2011 is gradually ticking its way to history, but bruises it afflicts on corporate organizations, especially the manufacturing sector can’t be wished way. Worthy of note of course is the ever present unfavorable business climate which 2011 calendar year inherited from 2010. The dilapidating infrastructures, a harsh business environment; unstable power, absence of security and host of other obstacles continually beset 2011 without succor. The Federal government under President Goodluck Jonathan had raised hope of infusing fresh air that would jump-start the comatose manufacturing sector mid-year when he was sworn in for his fresh mandate having successfully, completed his joint ticket with late Umaru Shehu Musa Yar’adua. The re-christening of former Ministry of commerce and Industry as Trade and Investment Ministry man by former Minister of Finance, Olusegun Aganga raised positive expectation but it turned out the usual dashed hope with virtually no significant improvement recorded. The view of Chairman, Manufacturers Association of Nigeria MAN, Ikeja branch Isaac Agoye captures it all. He lamented that the 2011 like years before it, never give expected impetus to manufacturing sector. 2011, as MAN scribe further lamented leaves the sector in throes of bad shape as many struggling businesses got wiped out. “The capacity utilisation has nosedived from 70 per cent in the 1980s to 45 percent in 2010. The ever busy industrial estates have now become shadows of their past glories and what government at all levels keep saying indirectly is that they need more funds and the manufacturing sector must provide it without a commensurate provision of the required enabling environment,” Agoye added. Nigeria has lost what used to be industrial estates. In 2011, the remnants of what used to industries at once thriving Ikeja industrial estate in Lagos have closed shop and in their ashes, spring up churches, event centers and relaxation spots. They closed shops not because the plot housing them has vanished, but primarily due to unbearable hostile, very challenging business atmosphere. The key being absence of power and secondly lack of security. Though government managed to unveiled power sector road map to resuscitate and rejuvenate the sector, the reforms is yet to impact positively as PHCN staff have given conditions that must be met if power reforms must be carried out. However, a novel idea of Public Private Partnerships (PPP) was given considerable vent during the year. The government realising that it can’t do it all alone is partnering with private sector to execute some key projects in a form of partnership. The construction sector was virtually in comatose as its key ingredient component, cement witnessed price tumbling severally. Beginning January 2011, cement price had risen from 2,600 to N3, 000 with disastrous effect on the quality of blocks and prices of other building materials leading to unprecedented rise in accommodation cost. It took President Jonathan intervention to get a firm commitment from cement manufacturers to peg the price at N2, 000. Nigeria is virtually a dumping ground for import items without a corresponding export making Nigeria to maintain export deficit. A report obtained from the National Bureau of Statistics (NBS) showed imports in the second quarter of the year were also 175.5 percent higher than the N1.22 trillion recorded in the corresponding period in 2010. According to the Executive Director of the Nigerian Export Promotion Council (NEPC), Mr. David Adulugba, the agency disbursed a whopping N45 billion in the second quarter of 2011 under the Export Expansion Grant (EEG) scheme designed to induce performance of non oil exporters in the country. The initiative certainly paid off as many local manufacturers attested to the fact that they were part of the grant which definitely saw their business kicking off to another new level but not including the Leather and Allied Products Manufacturers Association of Nigeria (LAPAN) kicked against the total implementation of the Scheme. LAPAN President Alhaji Mustapha Nabegu, said the EEG scheme has weakened the capacity of the nation’s manufacturing sector to create jobs and drive economic growth. On the battle for standard, The Standards Organisation of Nigeria (SON) seems to be the most active government agency in the sector. It set up in mid-year, a consumer compliant desks in major markets across the country to check substandard products. The agency decided to take proactive steps to drastically reduce the influx of substandard products into the country, by destroying several containers loaded with substandard products worth millions naira. Another highlight of the agency that attracted divergent views include a claim by the agency to have spent about N20 million to destroy more than three million fake and sub-standard tyres nationwide. Experts say hope for active industrial sector may not totally be lost after all. The government, they say just have to rise to the occasion and be sincere in implementing experts’ recommendations. The government will have to genuinely tackle the poor electricity issue, it will have to create tax holiday and abolishing multiple taxes; it has to wake up to contain the security challenges that has make investment elusive and finally show sign of commitment to tackle corruption. The Nigerian textile industry was the second largest in Africa after Egypt’s in 1997, with over 250 vibrant factories operating above 50 per cent capacity utilization. Then, the local textile market had a share of about 20 per cent of Nigeria’s textile products with the balance of 80 per cent being imported. As at 1980, the textile industry in the country could boast of over 175 textile factories, but today only about 25 are still producing, as most of them have closed shop. For instance, Afprint, once a household name in Nigeria had since diverted to other businesses. The company is now selling cars and edible oil. Undoubtedly, the textile industry had its unfair share of the country’s penchant for foreign goods, smuggling, faking and counterfeiting. The recent spate of closure in the industry was driven largely by smuggling at the borders, failed government policies, high operating cost arising from prohibitive raw materials, energy cost and sheer lack of political commitment to industrialisation by Nigerian politicians. At its prime, textile factories in Kaduna and other cities were the second largest employer of labour after the government . But for over a decade now, the closure of these factories and the low capacity utilization of existing ones have become a very disturbing feature in the Northern states and the succeeding governments could not do much to redress. The workers that were laid off had since joined the unemployment market,while taxes in billions derived by governments from these factories had become a thing of the past. In his mission to industrialise the North, the late Sardauna of Sokoto and Premier of the defunct Northern Region, Sir Ahmadu Bello started by establishing textile factories to use the large quantity of cotton grown by farmers in the North. Thus, the Kano Textile factory in Gwammaja and the Kaduna Textile Mill (KTL) were established , transforming the two cities into textile marketing cities with other related factories such as weaving and spinning springing up.