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Nigerian Compass –Several  microfinace banks are anxiously awaiting the  findings of the audit of their books by Nigeria Deposit Insurance Corporation (NDIC).

When micro finance banks made their debut in 2005, managers in the institutions went into churches, mosques and other worship centres, canvassing for customers. In the process, Nigerians were ensnared by promises of quick loans, high interest payment and winning exorbitant prizes in promos among others.

Five years down the line, about 85 per cent of the banks have not only gone under, but lack the capability to fulfill these promises. They have closed down their branches, sacked their workers and are unable to pay depositors.

Few of the banks still in business visited by our correspondent revealed that business was not going on as usually as most of the staff were seen either sleeping or gossiping.

Timothy Okoro, a bread hawker and customer of one of the banks visited , said he had N80,000 in the bank but for almost two months, the bank had refuse to give him his money and this he said had affected his business.

“I have lost many of my customers because I don’t have what they want. What I have lost is my entire life savings and the bank has neither written to me nor given me any hope that my money will be paid,” he said.

Speaking with one of the managers of the bank who spoke on the ground of anonymity, on the turbulence in the bank, he said we are waiting for NDIC to come out with its audit, then we will know if we will be out or in business.

He said the audit result will go a long way to determine our performance in the next few years and no bank will want to give out fund to customers now, he said

According to him: “How soon this auditing is completed will determine the way forward for grassroots banking and the fate of investors in the troubled banks.”

Mallam Sanusi Lamido, CBN governor recently said in a public function, that microfinance banks in the country had performed at less than optimal and that CBN was carrying out a systematic review of the current microfinance policy with a view to making it add more value to the economy.

He said chief executive officers of microfinance banks in the country would be made to undergo examination in order to determine their level of professional competence, adding that those found wanting would be relieved of the positions.

Nigeria Deposit Insurance Corporation (NDIC) also expressed concern about the poor performance of the sector. Umaru Ibrahim, acting managing director and chief executive of NDIC said at a risk based supervision training for NDIC examiners held in Ijebu-Ode, that the poor corporate governance culture among operators were responsible for the dismal performance of companies in the sector.

He explained that the corporation had completed a special audit of microfinance banks in the country, adding that operators found wanting will face appropriate sanctions.

He said that the corporation had put machinery in place to resolve the crisis in the ten bailed out banks as well as the microfinance banks and Primary Mortgage Institutions (PMIs), adding that it will step up its debt recovery efforts by engaging more debt recovery agents, intensify an aggressive pursuit of court cases as well as devise better and more efficient system of reaching out to depositors and the payment of both insured and uninsured deposits.

He also called on bank examiners in the country to be more proactive in their responsibilities to ensure a safe and sound banking sector.

According to him, the risk-based approach to banking supervision training was imperative in the light of the recent developments in the industry, stating that the training would equip them with the knowledge and skills to evaluate banks’ risk profiles and risk management practices for effective assessment of banks’ safety and soundness.

He attributed the current crisis in the banking sector to jettisoning of corporate governance and paying little attention to risk management by banks, stressing that there was no way the industry could move forward if priority was not paid to risk profiles in banks.

The NDIC boss further explained that the corporation had always given priority to the training and retraining of its employees toward skill enhancement, adding that the corporation under the present dispensation had accorded priority to consolidated supervision, communication and report writing and risk management, among others.

Also speaking at the event, the Special Adviser to the CBN Governor on Banking Supervision, Mr. Kim Norris, said the risk based supervision was imperative for the sector in the light of the global financial crisis and recent developments in the industry.

He expressed satisfaction over the seriousness being extended to the consolidated risk based supervision by both regulators and banks, stating with the readiness of the examiners to learn, the industry will be better for it.

Mr Akin Odunlami an expert called on CBN to do a thorough due diligence test on the claims of all micro finance banks, adding that since a clearing-house bank and lender of last resort to Nigeria’s micro-finance banks, it should ensure sanity.

Mr Moses Obioma, a financial expert said, the CBN was yet to declare any of the microfinance banks failed, adding that the failure of the micro finance institutions in Nigeria had only been acknowledged in the financial market through personal and shared experiences. To him, the CBN was experiencing capacity problems with regard to the performance of statutory supervisory functions on the numerous licensed micro-finance banks.

“We have recommended before now that the CBN should give adequate attention to the supervision and policy guideline. Besides, there is a need for an independent statutory body other than the CBN but which may report to the apex bank,” he said.

According to him, the recommendation was necessary to change the wrong culture of microfinance banks, most of which tend to imitate commercial banks in all ramifications.

“Most times, our challenge in Nigeria is never in policy formation and promulgation but in implementation. In the light of the above, we expect the CBN to list out the affected microfinance banks for public awareness,” he suggested.

Another operator who spoke on the condition of anonymity noted that the CBN was not overlooking the CEOs of failed MFBs, but only taking its time to carry out investigations on them before taking appropriate action.

He called on CBN to allow the law to run its course as regards the managing directors of the failed microfinance banks.

“Nevertheless, it could be essential if the CBN engages the services of consultants to help build the capacity of the CBN,” he said.

On audit embarked by NDIC, he said: “Most customers have stopped depositing money in the banks because they are waiting for the result of the auditors”, adding that on their part they had stopped borrowing to customers since this audit started.

Ngozi Nweke, a customer who borrowed from one of the MFBs said excessive charges was the greatest problem she had with the bank.

She was totally dissatisfied with services when it had to do with borrowing. “I obtained a loan from one of the banks and an offer letter was given to me detailing all the necessary charges. However, when I checked through my statement of account, I began to see different charges like repayment fees which was not contained in the original offer letter,” she said.

She called on NDIC to ensure that banks that did not meet the requirements of the corporation are closed down, adding that most of these banks that gone under had continued to make life unbearable for business men.

She noted that the initiative of the CBN and the NDIC to checkmate their activities was a welcomed development and would help to stop the loss of depositors fund in microfinance banks.

She argued that most of the MFBs that failed did not do so due to inadequate capital, but poor corporate governance and sharp practices and that what the banks needed most were quality service and good governance.

She suggested that N20 million should be adequate if MFBs practice the business the way it should, adding that those saying N20 million was not enough were not doing micro-finance, but conventional banking.

Mr Mike Okoye, a stock broker said that in Nigeria, Microfinance industry appeared to be stumbling from one crisis to another, ranging from accusations of fraud to embezzlement of depositors funds.

He said many of them were facing financial difficulty and potential liquidation and that the large proportion of the current problems being faced by the sector was as a result of lack of corporate governance in the system.

His words: “The current crisis suggests that not enough audit was undertaken except ensuring they met the minimum capital requirement. The regulations and guidelines in existence are not stringent enough to ensure the services provided were purely for those that the licenses were granted,” he said.

He said that some of the MFBs added to their problem when they took up residence in expensive business districts and paid their senior managers high salaries and attractive benefits.

While others where competing with commercial banks, others saw it as an opportunity to embezzle from the poor.

He commended the NDIC for taking on the challenge of cleaning up microfinance with some vigour, adding that fixing the problem should be viewed as a long term goal and that simply putting quick fixes will not achieve any lasting success.

He also called for adequate training of all members of staff irrespective of their position.

He said: “Requirement for CEOs of Microfinance banks to take CBN certification exams is a positive step forward, but does not go far enough. Other senior personnel in Microfinance banks should also undergo training. This will enable them know whether the role of Microfinance is well understood at every level of all MFBs.

Under the micro-finance bank policy introduced in 2006, there are two categories of MFBs -State MFBs and Unit MFBs.

The CBN recently said it had concluded plans to increase the minimum paid-up capital of Unit Micro-Finance Banks (MFBs) by 500 per cent to N100 million. It also increased that of State MFBs by 100 per cent to N2 billion.

According to the policy, Unit MFBs ( licensed to operate as Unit banks) shall be community- based banks. Such banks can operate branches and/or cash centres subject to meeting the prescribed prudential requirements and availability of free funds for opening branches/cash centres.

On the other hand, a State MFB (licensed to operate in a state) shall be authorised to operate in all parts of the state (or the Federal Capital Territory) in which they are registered, subject to meeting the prescribed prudential requirements and availability of free funds for opening branches.

Presently, the minimum paid-up capital for state MFBs is N1 billion, while for Unit MFBs, it is N20 million. Consequently, the new minimum paid-up capital represents 100 per cent increase for State MFBs and 500 per cent for Unit MFBs.

The CBN has also set the deadline for meeting the new minimum paid-up capital at December 31, 2011. The increase in minimum paid-up capital is one of the highlights of the reform package for the MFBs sub-sector soon to be announced by the CBN.

According to CBN the new dispensation, N20 million minimum paid-up capital would be retained for Unit MFBs in the rural areas. Such areas, the source said, must not be close to an urban centre.

The new N100 million minimum capital base would, however, apply to all Unit MFBs in urban centres, including all state capitals. He said the implication is that Unit MFBs located in Lagos State, Abuja, Kano, Port Harcourt and other major cities would have N100 million minimum paid-up capital.

The regulatory body for bank operations in the country also met with chief executives of MFBs three weeks ago to intimate them of the coming reforms, urging them to study the document and send their comments and observations back to the apex bank

Micro-finance banking came into being in 2005 with the launching of the micro-finance policy by the former CBN governor Professor Chukwuma Soludo.

The policy was influenced by the globally acclaimed impact of micro-finance in helping the economically active poor to exit the poverty threshold and thus leading to significant poverty reduction. Hence micro-finance banking was introduced with the expectation that over time, it would help in reducing poverty in the country.

Hence, as stated in section 4:2:1 of the micro-finance policy, the policy target includes “covering the majority of the poor but economically active population by 2020 thereby creating millions of jobs and reducing poverty.

To achieve this, the CBN introduced and licensed Micro-finance banks, which replaced community banks. According to the policy, micro-finance banks are to:

*Provide diversified, affordable and dependable financial services to the active poor, in a timely and competitive manner, that would enable them to undertake and develop long-term, sustainable entrepreneurial activities; Mobilise savings for intermediation; Create employment opportunities and increase the productivity of the active poor in the country, thereby increasing their individual household income and uplifting their standard of living; Enhance organised, systematic and focussed participation of the poor in the socio-economic development and resource allocation process;

*Provide veritable avenues for the administration of the micro credit programmes of government and high net worth individuals on a non-recourse case basis. In particular, this policy ensures that state governments shall dedicate an amount of not less than one per cent of their annual budgets for the on-lending activities of micro-finance banks in favour of their residents; and Render payment services, such as salaries, gratuities, and pensions for various tiers of government.

Thus, micro-finance banks were established to help the poor and micro businesses by extending financial services to them and in the process help them grow, generate income and employment.

The policy took off smoothly and overtime especially after the expiration of the December 31, 2006 deadline given to community banks to translate to micro-finance banks (MFBs), the number of licensed micro-finance banks rose to more than 1500 by the end of 2008.

From the capital of old Eastern Region-Enugu State , Igwe Uche Nwachime in Nkanu, was abducted and later slaughtered because his relations had refused to pay ransom on time as requested by the kidnappers. Report also had it that the proprietor of Gold Riveri Hotel Enugu was kidnapped and later released upon the payment of a N5 million ransom.

In Abia State , which is fast becoming the most notorious state where kidnapping business booms, the chairman of Enyimba Football was kidnapped. Justice Awa U. Kalu was shot in a failed kidnapping bid. Some Imo State indigenes had also been kidnapped recently; they include Mr. Celestine Ngaobiwu, a member of the Imo State House of Assembly and two sons of the Speaker of the Imo House of Assembly.

Three persons were killed earlier in the year when unknown gunmen kidnapped a movie star Peter Edochie in Onitsha, the commercial nerve centre of Anambra State . According to reports, the victims were killed to facilitate Edochie’s kidnappings. The actor hit the limelight as Okonkwo in the television adaptation of Chinua Achebe’s book, “Things fall Apart.” He was kidnapped after his bodyguards were overpowered.

Few days after the Edochie incident, about six people were killed in Imo State when kidnappers reportedly invaded Orlu and Ikeduru areas of the state. Two kidnapped Indians were reportedly rescued with some of the gang members seriously injured when a team of policemen confronted the gang at Ama Nwozuzu in Ikeduru. The cases are endless.

The wide-ranging state of insecurity in the South east, security experts say, had reached a stage where practically everybody is now worried about the frightening dimension the region is headed.

Presently, hardly can people sleep with both eyes closed for fear of being kidnapped. Businessmen, politicians and other wealthy persons have taken voyage as well as with their businesses for fear of being kidnapped. In the last few years, kidnapping and hostage taking have moved from the Niger Delta creeks to Ndi-igboland.

The ogre has broadened and taken unfathomable derivation in the land where many able-bodied but unemployed youths proliferate. Within the South-east, Abia State is the epicentre followed by others in the region. Everybody is now concern. It is expected against obtainable verification that the rich government officials, traditional rulers, elected politicians and their immediate families are now the target of the men of evil.

There appears not to be hiding place for the rich, even though some of them have relocated their families outside the South-east geo-political zone or outside the country. Even Lagos that was once regarded as insecure state is now a heaven of choice for many.

Recently, the profit-making activities in Aba, the commercial nerve centre of Abia State, were crippled as banks were forced to close their doors against demanding customers after frequent violent attacks on banks. At a point, the evil men outsmarted all procedures adopted by the banks to avoid them.

“While insecurity disrupts socio-economic and political activities in the country, it also slows down the pace of economic growth and development. Many investors continue to flee the country”, an Aba based bank manager who does not want his name mentioned, told LEADERSHIP SUNDAY.

Sadly, the news the international community has about the South east is that it is most unsafe to live and do business. To be sure, the World Bank recently rated Imo State as one of the worst states in the country to do business. “Before any foreigner contemplates of coming to Nigeria, he or she would not only be calculating the high cost of investing in the country, but also the safety of his or her life”, the bank manger said.

The National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) recently expressed regret over the serious security problems in the South east region. It said that “the security challenges had worsened the already bad and unfriendly business environment that is negatively affecting the growth of businesses and socio-economic activities in the area.”

“If industries are closing shops and investors are not forthcoming because of insecurity and other attendant problems faced by businesses, then the future, particularly that of the children should agitate the minds of everybody.”

Apart from NACCIMA, the police, states in the south east and other segments of the society are worried. Recently peeved by the state of insecurity- kidnapping in Anambra, the Inspector General of Police, Mr. Ogbonna Onovo, announced the deployment of 16 units of anti-riot policemen to the area to complement the efforts of policemen attached to the state commands. But in spite of this, security experts and monitors say the level of insecurity in the region had heightened.

The chief police officer had partly blamed the high wave of crime in the country, especially in the South-east on materialism and loss of societal values. He noted that people were ready to do anything to get rich and be celebrated in the society. While also blaming the high rate of kidnapping and armed robbery in these areas on unemployment, he however said that most of the graduates of Nigerian universities are half-baked, but carry about certificates they could not even defend.

Nigeria’s Minister of Police Affairs Minister, Alhaji Adamu Waziri, has warned that proliferation, circulation and trafficking in small arms and light weapons in Nigeria and the African sub-region, if not decisively addressed, will sustain political violence, kidnapping, trafficking, smuggling and other related crimes.

Waziri, who identified political violence, kidnapping, international terrorism as serious challenges to the development of the country warned that these criminal activities must be tackled head-on by all the nation’s security agencies. He said the federal government was resuscitating specialised police training programmes in counter terrorism, crime detection and border policing to enable them rise to the situation.

Speaking at a Security Conference 2010 titled “Emerging Security Trends in Nigeria,” the minister noted that in view of the critical role of the police in this regard, the federal government had embarked on the transformation of the force into an effective, efficient, responsive, transparent, proactive and people-friendly organisation.

He added that the ministry was providing the “committed and focused leadership for the realisation of the vision.

As a pointer in this regard, he said, a six-year Police Reformation Programme designed to fundamentally change the orientation and operational efficiency of the Nigeria Police to enable it meet the challenges and public expectation in the 21st century had been put in place.

Some components of the programme, according to Waziri include the need to address the institutional and individual weaknesses of the Police by embarking on capacity building, procurement of modern policing equipment and ensuring attitudinal changes of officers and men with the view to enhancing the operational efficiency of the police.

Waziri noted that the six-year programme which will be funded by the three tiers of government and the private sector, is an addition to introduction of the Safe Cities Project of the Federal Government and the creation of Community Safety Partnership in Police Divisions. The Safe Cities Project which identified seven cities namely Abuja, Lagos , Kano , Onitsha , Port Harcourt , Ibadan and Maiduguri is designed to bring crime to a manageable level there.

Earlier in her address, one of the organisers of the event, Mrs. Victoria Ekhomu, regretted that the nation “is beset with myriad of security challenges, such as kidnapping, terrorism, civil disturbances, political violence, fraud, assassination, armed robbery – a fact which necessitated the conference where workable solutions would be proffered.”

She said insecurity fuels capital flight, as some businessmen have taken flight from the country along with their businesses for fear of being kidnapped, “even some expatriates have already been kidnapped, others now avoid assignments to our country.” The insecurity has disrupted socio-economic and political activities in Nigeria , to the extent that most credible and respected personalities are scared off politics, a development she said should be discontinued through workable security policy and a synergy among security agencies.

By John Alechenu
A 1.2m Euros project to tackle Human trafficking  between Europe and Africa have been inaugurated by the European Union The project which is being financed by the EU is to be implemented by the International Labour Organization and the Department for Equal Opportunities, Counter Trafficking Commission, Italy. This was contained in a statement by the Press and Information Officer of the Delegation of the EU to Nigeria, Mr. Kelechi Onyemaobi, and made available to our correspondent in Abuja, on Sunday. The statement said the project will be inaugurated in Abuja, on Tuesday. According to the statement, the EU and the ILO view with serious concern the increasing volume and complexity of human trafficking, especially in women and children, worldwide. Both bodies said it was imperative to address this menace at national, regional and global levels by promoting bilateral, regional and multilateral cooperation. They also observed that trafficking in persons from Nigeria to Europe has posed serious challenges to people and governments of both countries. The statement read in part: “This project, funded by the European Union is worth €1.2m (about N220m). “The objective is to progressively reduce human trafficking through better cooperation between Nigeria and Italy in the prosecution of traffickers, protection and re-integration of victims, as well as prevention of trafficking through awareness creation. “The project will be implemented from Nigeria and Italy during the next 24 months. “The institutional and implementing partners of the project are: the Federal Ministries of Labour and Productivity, Foreign Affairs, Women Affairs, Education, “Justice, and Youth and Social Welfare, as well as the National Agency for Prohibition of Trafficking in Persons, Nigerian Police, Immigration, Customs, employers’ and workers’ organisations, relevant NGOs and ECOWAS.”

// The National Chairman of the Peoples Dem-ocratic Party (PDP), Dr. Okwesilize Nwodo, left Nigeria yesterday to attend a two-day conference on Nigeria’s Golden Jubilee  holding in London on Monday and Tuesday. According to a statement signed by the Special Assistant, Media, to the PDP Chairman, Mr. Ike Abonyi, President Goodluck Jonathan is expected to deliver a keynote speech at the summit. But THISDAY learnt last night that the President  may not be attending the summit because he was scheduled to use the opportunity to see the Bristish Prime Minister whom he had already seen during the G8 summit in Canada. The summit will also be attended by about 18 state governors and over a dozen ministers as well as strategic chief executives of agencies and commissions in the country. The statement said issues expected to be discussed at the conference included power, infrastructure, corruption, health, education and agriculture. Jonathan has come under attack for allegedly jacking up the N600million proposed for the golden jubilee celebration by the late President Umaru Musa Yar’Adua regime to N10 billion. But denying the accusation, Information and Communications Minister, Prof. Dora Akunyuli, had said the committee for the celebration put together by the late President Yar’Adua had proposed the sum of N10 billion. She, however, did not say how much President Jonathan had approved for the celebration. According to the statement,  Nwodo is scheduled to have interaction with a cross-section of members of PDP in London where he is expected to intimate them with his reform agenda for the party particularly the new registration policy being put together to sanitize the party. The PDP chairman is expected back in the country by weekend.

Amnesty International writes on the menance of Oil Spills and its effects on the environment in Nigeria’s Niger Delta.

The Niger Delta has suffered for decades from oil spills, which occur both on land and offshore.

Oil spills on land destroy crops and damage the quality and productivity of soil that communities use for farming. Oil in water damages fisheries and contaminates water that people use for drinking and other domestic purposes.

There are a number of reasons why oil spills happen so frequently in the Niger Delta. Spills result from corrosion of oil pipes, poor maintenance of infrastructure, spills or leaks during processing at refineries, human error and as a consequence of deliberate vandalism or theft of oil.

In the 1990s corrosion was acknowledged as a major problem with oil infrastructure in the Niger Delta. Infrastructure was old, and many pipes were above ground. In 1995 SPCD admitted that its infrastructure needed work and that corrosion

was responsible for 50 per of oil spills. The company began a program of upgrading oil pipes and infrastructure (see page 59 for further discussion on SPDC’s action to address oil pollution).

However, today companies increasingly maintain that the majority of oil spills are caused by sabotage and not by their poor infrastructure or operational problems. Communities, and many NGOs,

strongly disagree over the number of spills that are attributed to sabotage, and accuse companies of designating controllable spills as sabotage in order to avoid liability for compensation.

There is no doubt that sabotage, vandalism of oil infrastructure and theft of oil are serious problems in the Niger Delta, although the scale of the problem is unclear. Sabotage ranges from vandalism by community members to theft of oil and deliberate attacks by criminal groups.

Some people damage pipes while trying to steal small quantities of oil for sale at local markets or for personal use. Others damage pipes and installations to extort compensation payments or clean-up contracts from companies.

The increase in community sabotage activities (as opposed to organised theft, described above) is a reflection of wider problems that exist in oil-affected areas of the Niger Delta.

For some people, causing an oil spill and getting a clean-up contract or compensation44 is the only way they can access any benefit from the oil operations.

Establishing the Scale of Oil Spillages

The amount of oil spilt since oil production began in 1958 is not known with any certainty. As far as Amnesty International could ascertain, there has been no published study that looks specifically at the scale of oil spills in the Niger Del ta.

The scale of the problem can, however, be inferred from three pieces of data: Figures that are available for oil discharged on land and at sea. Figures on the number of sites needing remediation (these are sites that have been affected by oil pollution in the past and which are considered to need rehabilitation of some sort). Expert testimony of environmental and oil experts who have lived and/or worked in the Niger Delta.

Oil spill figures vary considerably depending on sources, and figures are contested. Only SPDC reports publicly, from year to year, on the number of spills in its operations. Between 1989 and 1994 the company reported an average of 221 spills per year involving some 7,350 barrels of oil per year

The Department of Petroleum Resources (DPR) has reported that 4,835 oil spill incidents were recorded between 1976 and 1996, with a loss of 1.8 million barrels of oil to the environment.49 These data are based mainly on what companies report to the DPR.

According to UNDP, more than 6,800 spills were recorded between 1976 and 2001, with a loss of approximately 3 million barrels of oil.

Both local and international environmental experts claim that the system for reporting of oil spills in the Niger Delta has been completely dysfunctional for decades, and that the figures provided by the companies and reported by DPR do not reflect the full scale of oil spillage.

Drawing on available data, a group of independent environmental and oil experts visiting the Niger Delta in 2006 put the figure for oil spilt,

onshore and offshore, at 9 to 13 million barrels of oil over the past 50 years. The experts took into consideration all sources of oil discharged into the environment, including oil in process water,

oil discharges from tanker washing, oil in gas flares, oil spills from vehicle and road tanker accidents and used oil dumped in the Delta, as well as spills during the Biafran war, when many oil installations were either bombed or sabotaged.

To put this into perspective, people living in the Niger Delta have experienced oil spills on par with the Exxon Valdez every year over the last 50 years.

Despite this, the government and the companies have not taken effective measures over these 50 years to prevent oil spills from recurring, or to properly address the impacts of oil spills.

Pollution-affected Sites Needing Rehabilitation

Under Nigerian oil industry regulations, oil spill sites should be rehabilitated.

This means that the soil and/or water at those sites should be treated to deal with the impacts of pollution and restore them as far as possible to their normal state.

The National Oil Spill Detection and Response Agency (NOSDRA) – which was established in 2006 – has tried to identify all sites needing remediation in the Niger Delta. As of April 2008 it had identified approximately 2,000 sites. The majority of these sites were apparently SPDC sites.

Although neither NOSDRA nor the oil companies would provide any information on the size or location of the sites, or the level of pollution,the fact that some 2,000 sites needed rehabilitation in 2008 gives an indication of the widespread nature of the problem. NOSDRA told Amnesty International that some of these sites had been polluted more than once.

The leadership crisis in the Nigeria Communications Commission has attracted the attention of the House Committee on Communications, with its chairman, Dave Salako saying is not healthy for the commission.

The All Nigeria Peoples Party yesterday said it will not put forward any Presidential candidate for the 2011 elections until the he ruling Peoples Democratic Party’s announces its choice for the election Addressing a press conference yesterday in Abuja on the 2011 presidential election, the party’s National Chairman, Ume-Ezeoke said: “when PDP comes up with its candidate for the presidential election, then we shall come up with our candidate and this will shake the entire country.” Prodded to give hindsights to who shall become the ANPP presidential candidate, he said, “just wait and see what will happen.” Some of the candidates who have indicated interest in taking over from Ume-Ezeoke are the former governor of Edo State, John Oyegun; former chairman, Board of Trustees (BoT) of the party, Harry Akande and the former National Secretary of the party, George Moghalu.Others include the incumbent National Publicity Secretary of the party, Emma Eneukwu; and the current Chairman of the party’s BoT, Gambo Mogaji. THISDAY gathered that the odds favour Akande and Oyegun from the South-west and South-south respectively. This is because the vice presidential candidate of the party may emerge from the south-east. A source further confirmed that the next chairman of the party would be a straight fight between Akande and Oyegun. The party’s National Executive Committee meeting which took place in Maidugiri last month had ordered a national convention for July 17 to elect a new set of members for the Central Working Committee. Ume-Ezeoke and his team were elected in August 2006 for a four-year tenure

In this interview with  Sunday Sun, King Alfred Papapreye Diete-Spiff, the Amanyanabo of Twon Brass Kingdom  speaks on the state of the nation, and why President Goodluck Jonathan should contest the 2011 election  Excerpts…

You are a monarch, which presupposes that you are engaged in some form of active service. But how would you describe your life as a retired naval officer and former military governor of Rivers State?
It has been interesting. I retired (from the Navy) 35 years ago. It is like yesterday because I have been very involved in trying to solve some of the problems encountered even while in Government House; the same recurring problems.

For instance, during my first visit to Twon Brass in December 1968, the welcome address was talking about foreshore protection; that the ocean was encroaching and forcing it to denudate the foreshore. I told them then that even if we used all the money in the state budget, it would not solve the problem. As we speak, we still have that problem.

That is about 35 years after you left office
Yes. From 1975 to 2010 is 35 years. But when you consider that I visited Twon Brass in 1968, it is almost 42 years after.

You became military governor of a newly created state then at the age of 24. How did you tackle the challenges of that office, considering that you were very young?
Actually, I had commanded naval ships a few years before I was appointed governor. Naval training is not erratic. So one had leadership qualities imbued in him already and I saw my appointment as being the captain of a ship of state.

Luckily, we had quite a few young graduates who at best could be assistant secretaries and administrative officers. We had to make them acting permanent secretaries.

We also had quite a few seasoned administrators like the (then) Attorney-General, the first SAN (Senior Advocate of Nigeria), Graham-Douglas, his brother, Melford Douglas, who was the Permanent Secretary for Health.

We also had Mr B.G Charles, who was already a Principal Assistant Secretary in a federal ministry before coming to the state, and, of course, Pikibo Daniel-Kalio, who was our permanent secretary in the West until Adebayo released him to become our secretary to government, that is the SSG.

As a young state, the challenges were a matter of how to train and retrain and getting the young graduates to learn faster to be able to accept responsibility.

But some of them thought that as acting permanent secretaries they had all the knowledge and did not want to learn. So things were not done when they were supposed to be done. But I had to come down on them heavily to make them move.

That was what we did and today you have a truly viable civil service. Of course, the soldiers were there and they had taken over virtually all the houses in Port Harcourt, the GRAs and were spread all over the place, enjoying themselves.

So the government could not take control of the houses. But there were other houses of displaced persons and we had to come up with an abandoned property edict to try and manage those houses.

That too was a challenge because when the war ended, the owners came back and wanted to take back their houses whereas they were part of the mob that destroyed Rivers peoples’ houses when the state was created.

How do you reconcile that, when somebody who destroyed your house and you are now living in his house because he burnt down your house, wants you to leave so that you become homeless? How can government now ask you to move out of his house so that he can take it back?

But these houses were predominantly owned by people from a particular section of the country. Was that not discriminatory?
When they came back, they expected the government to throw the Rivers people out and give them back their houses. So we had to put that edict in place to protect the Rivers people from being thrown out in the streets. Even my mother’s house was burnt down.

Looking back and considering the furore the abandoned property issue generated, would you still take such decision if you were governor of the state?
I’m telling you what I did. It is not a matter of if I was governor. Graham-Douglas is a Rivers man. His house was burnt down. My mother’s house in Borokiri was also burnt down by the same people who abandoned their houses and they were not wearing mask.

What was the motive for burning your mother’s house?
Because her son had been made governor; (Yakubu) Gowon’s governor. So the mob came to do that because they felt they were making Biafra great. They brought out my mother’s property and made a bonfire of it before pulling down the house.

The same thing happened to several other Rivers people’s houses. Mind you, these people were not wearing masks. Later some of those whose houses were burnt began to live in the houses of those who burnt theirs.

As a government, am I to throw those people out because the others had come back? So that edict was meant to protect the new occupiers of those houses until we were able to rebuild their houses and rehabilitate them.

But I must say that the abandoned property issue has been settled and I really do not want to talk about it. It’s a sore point and we could just start another snowball. Let sleeping dogs lie.

How did you navigate the transition from being governor of a state to becoming king and paramount ruler of Twon Brass Kingdom?
My father was a prince and my mother a princess. I still remember my mother telling me that I must go to school and me asking her why I should because I felt I was alright. She insisted because, according to her, there is no royal way of learning other than going to school and passing your exams.

Was it that you didn’t like schooling?
It was not that I didn’t want to go to school. But as the last child of my mother’s seven children, I just felt I could do without going to school. One of my fears was that the teachers used cane and the environment was not too comfortable.

It didn’t occur to me then what my mother meant by ‘there was no royal way of learning.’ But later I knew that all she was saying was that being a Prince does not mean you could get everything without working for it.

So I learnt to do things and competed with the ‘ordinary’ children. I like challenges. Even when I play golf, I prefer to play for competition. When I went to North Carolina, I had to write the exams. When I went for training as a mediator, I had to subject myself to the written exams. In anything I do, I try to do it like an ordinary man.

Can you recall some of your childhood pranks?
Well, I went to school very early, say about the age of five. I started school in 1947. I still remember we were using slate and slate pencils. One of the incentives I got from my mother was that I got a new slate pencil every day and I could afford to use it up because I knew I would get a fresh one the next day.

But the other children in class with me didn’t come from my kind of background, so they were being frugal with their pencils. One day one of the children in my class saw my stumpy pencil and said your pencil was short and his was long. And I said, yes, mine may be short but it is stronger.

He argued that his was stronger and I said let us have a pencil fight. So I stuck out my pencil for him to hit it, which he foolishly did and his own splintered. I knew that would happen although I didn’t know what would happen next.

So the boy screamed as if something had hit him on the head. Our teacher came only to find out that it was just our slate pencils that had a combat and he was told not to disturb the class.

Between being governor and traditional ruler, which do you consider more enjoyable?
There is no enjoyment in this thing. Like one of the acting governors said then, we used to suffer in Government House because when you asked for water they gave you champagne.

Frankly, there is no enjoyment per se. This was a great responsibility. You are there to take care of the welfare of the people. For instance, if you are the captain of a ship with about 20 officers and sailors, you are responsible for their welfare.

Now, if you have to look after a state of a million people, it is a greater responsibility. You must see yourself as being responsible for the chiefs, the elders, women and children all the way down to the truck pusher.

There is really no comparison between being governor and traditional ruler. As governor you are taking care of a population of about three million but as traditional ruler, you take care of a population of about 300,000. Being a traditional ruler is less tedious.

Being a journalist, I find an incident that occurred during your period as Rivers governor quite curious. This had to do with a purported order to shave the hair of a journalist who allegedly reported something you found displeasing. What actually happened?
You are talking about the journalist Amachree. You see all these were just distractions. Journalists like to write what they like to write, and some of these things are inciting and instigating.

What actually happened was that he was invited to Government House. Unfortunately, it was my birthday and I was playing golf. So when he came, the guards said, “so na you write this yeye report?” and they got him shaved.

So you were not the one who ordered that his hair be shaved?
Amachree is married to a Spiff. He is my son-in-law, so why would I brutalize him?

What was your reaction when you learnt that your guards had detained him?
As soon as I came he was released and he went back to Benin, where he worked for The Observer. But from then The Observer started attacking my government. They said it was my ADC who gave the order to keep him in the guard house. So the soldiers on duty dealt with him. But what we did when the paper kept attacking us was to maintain a dignified silence.

You are in America primarily for the Isaac Boro Day organized by the Ijaw in the Diaspora to celebrate a man regarded as a hero…
(Cuts in) I had promised the organizers that I would be here because I’m a member of the Boro Foundation. I try as much as possible to keep a date with them every year. I’m happy that I could make it; as you realized I came in a day late.

But it is good I was able to listen to some of the discussions as well as offered some words of advice. It is a worthwhile thing and the Ijaw National Alliance of the Americas should also exchange visits with the home front and go on fact-finding tour back home.

But some people say Boro has not been properly immortalized by the government. Do you agree?
There is an Isaac Boro Park in Port Harcourt. I think we should have more of such structures named after him. For instance, in the Niger Delta University, we could have a Boro hostel or other endowments in his name. We also have to take care of his former colleagues like (Sam) Owonaro and his (Boro’s) children. Without doubt, he is not just an Ijaw hero. Boro should become a national hero.

Apparently, the issue of immortalizing him has been politicized over the years because some people in government feel the circumstances surrounding his death were controversial…
I don’t agree. What makes it controversial? He was a soldier in the Nigerian Army and he died as a soldier and was buried with military honour.

So why has the government not given him his proper due?
Canonization of saints or a Reverend Father, for instance, is not a one day thing. Presentations would have to be made to the Holy See before they get beatified and later canonized. In the same vein, if the people of Bayelsa, which is his home state, now recognize and honour him, the next stage would be to make recommendation to the federal government to also honour him. Rivers State, which used to be Rivers and Bayelsa, had named a park after him. So it is a matter of somebody initiating it now for the Bayelsa government to do same.

Those in the Diaspora after meetings like this could go on a courtesy visit to the governor to initiate such things. After this stage, they can then take it to the President to say Boro should be recognized as a national hero. After all, he did not fight for the Niger Delta alone. If that is acceptable, the government can then name a street in Abuja, for instance, after him.

Do you support the clamour for constitutionally defined role for traditional rulers in Nigeria?
I support it totally. Left to me, Nigeria should be practising the parliamentary system of government, which we started off with at independence. The House of Lords was the house for the traditional rulers. But in the American system, which we later adopted, the Senate takes over that function. But there is no reason we cannot have an expanded Senate where we can have traditional rulers from each state serving.

So instead of three senators from each state you can have four, of which the fourth should be the traditional ruler. This however requires constitutional amendment and we have made presentations to the National Assembly. At the moment, there is provision for traditional rulers to serve in the National Council of State.

What is your take on the state of the nation with regards to the heat over the 2011 presidential election?
As a nation, we are slowly getting to the stage where the best person should be considered for holding the highest position in government, that is, the presidency. Under the present arrangement, the President and his Vice are on the same ticket. Following the sad demise of President Umaru Yar’Adua, Dr Goodluck Jonathan is now carrying on their agenda because this is a joint ticket. It is like passing on the baton to carry on with the good work Yar’Adua started. So Jonathan should be allowed to finish that mandate.

Are you of the opinion that Jonathan contest for the presidency in 2011?
This depends on him and his party. Becoming a flag bearer of his party is not an automatic thing. But the incumbent president is entitled to go for the primaries and if the convention endorses him in preference to other aspirants, then he should run. Then it would not matter whether some people feel short-changed or not. You recall when Obasanjo was going for a second term, it was just Obasanjo, Obasanjo and Obasanjo (at the PDP convention). He had to compete against other aspirants even though he was the incumbent President.
But some people, including former Vice President Atiku Abubakar, have said Nigeria would break up if Jonathan contests

Break into what? Into oil producing or non-oil producing states?
That is their opinion. I don’t think we should bellyache over that. Does it change the fact that Jonathan is eligible, suitable or willing?

If traditional rulers were to meet the President at this time, what advice would you give to him?
We want good governance, and he is doing a good job. He should not jettison the Yar’Adua agenda.

Daughter of Late Chief M.KO, Abiola, winner of the annuled June 12 1993 elections in Nigeria, Mrs. Hafsat Abiola-Costello, has described Nigeria’s former military dictator, General Ibrahim Badamosi Babangida, as a case study of policy and administrative inconsistencies. Abiola-Costello  recalled that IBB’s eight years of administration between 1985-1993 was marred by betrayal of public interests. She spoke in an interview with our correspondent in Calabar, Cross River State during an ongoing training programme organised by KIND to sensitise women in politics ahead of the 2011 elections. She observed that IBB messed up an eight-year opportunity he had to make a difference in people’s lives and to contribute in promoting the quest for democracy in Nigeria. According to her, IBB’s presidential ambition in 2011 should be considered against the backdrop of political treachery and unpatriotic moves that characterised his administration. Abiola-Costello said, “IBB was blessed with eight years when he governed Nigeria. He had a big opportunity and when he had the opportunity it was remarkable to watch him. For example, he would launch the debate on Structural Adjustment Programme. Nigerians would debate and come out with conclusion, but IBB would take another course of action. “Then he would launch Mass Mobilisation for Self-Reliance, Social Justice and Economic Recovery which was about preparing the public for a free and fair election. People would go to the villages to mobilise others. In fact, government agencies were all at work on this. From there, he constituted an electoral commission which conducted the freest and fairest election in Nigerian history. But, the electoral results were still being announced when he changed course. “So, I don’t think that the issue is not whether or not he can run next year. As a citizen of Nigeria, all Nigerians obviously have the legal rights to run. What we should be looking at is, what was IBB’s problem at the time he was governing Nigeria for eight years, such that when he would be doing what seemed good for the country at the last minute he would change course.” She opined that IBB’s behaviour could suggest a fundamental psychological problem, adding “I am sorry to be so blunt, but when I analysed the issue carefully, I don’t see any other possible conclusion.” Abiola-Costello whose mother, Alhaja Kudirat Abiola, was assassinated on June 4, 1996, wondered what could have made IBB to drag Nigerians through seemingly laudable programmes only for him to abandon the course. “Is it that he does not respect the Nigerian country and the Nigerian people? Or is it that there is a mental default that makes it difficult for him to follow through on his action?” she queried. She added, “Whatever conclusion this analysis is, should then determine for him how he should continue in 2011. If the conclusion is that there is a mental defect, clearly, he should go for psychiatric help and if the conclusion is that he does not take the country seriously, then he should not even be considering running. Either way, I don’t see how he should consider running.”