₦airaland Forum

Seven suspects facing trial over the alleged kidnap of Pa Michael Obi, father of Chelsea midfielder Mikel Obi, were granted bail by a Federal High Court in Jos on Wednesday.


The suspects, Sule Ibrahim, Ndubuisi Friday, Basil Chukuma, Ifeanyi Hycinth, Jacob Zakari, Jaduwa Thlama and Victor Essien, were granted bail for N10m each with a surety each in like sum.


Presiding judge, Ambrose Allagoah, ordered that the sureties must show evidence of landed property within Jos metropolis.


He added that the addresses of such persons must also be verified by the court's registry.


Allagoah said, “Each surety must also swear to an affidavit of means and must submit two passport photograph as part of the bail conditions.”


Counsel for the accused persons, Mr. T. Pankyes, while pleading for their release on bail, argued that the offence was a bailable one.


Pankyes noted that the accused had been in detention for more than five months, arguing that it would serve the cause of justice if they were released on bail.


The prosecution counsel, Mr Ambrose Egoh, however, objected to the bail application on the premise that the offence was “very serious” and “rampant” in the country.


Egoh said, “My Lord, the suspects are likely to escape justice if granted bail. It will be in the interest of justice to refuse the applicants bail.


“It will not be prejudice if the application is refused.”

http://odili.net/news/source/2012/feb/9/800.html

FRAUDSTERS have devised new methods of dispossessing victims of their cash and valuables in Lagos State and its environs. Unlike in the past when they sweet-talked their unsuspecting victims into parting with large sums of money in the guise of either doubling it or providing contacts that would facilitate the purchase of imported electronic items at cheaper rates, they now openly threaten and even rape their victims into submission.


Though their modus operandi still remains the same, the fraudsters compliment their criminal efforts by forcefully subjecting their victims to torture after brandishing their deadly weapons.

The case of 23 year-old, Ozoemena Oko, who boarded a blue-coloured cab at Igando bus stop, Alimosho L.G.A on his way to Aspanda market, will readily suffice. He was inside the bus when one of the fraudsters raised his shirt to show him a brownie pistol. Oko had about N465,000 meant for the purchase of tyres inside his bag. After showing him the gun, the fraudster now relaxed and started lecturing him on why he should present any money with him to the group so that they would multiply the amount three times.

Remote area in Igando

In fact, while he was contemplating whether he had a choice of saying yes or no, his abductors kept on showing him the gun while moving towards a remote area in Igando. Unfortunately, when they got to a lonely spot, they dispossessed him of the money and drove off.

Oko, however, showed some sense of bravery by swiftly alerting his elder brother who promptly raced to the scene with a team of policemen attached to Rapid Response Squad, RRS. When they got to the scene, the suspects had absconded with their loot. His attackers did not just leave, they inflicted bodily injuries on him and left him in a pool of blood. RRS operatives felt helpless when they couldn't lay their hands on any of the suspects. They took the victim to Ikotun police station and reported the incident.


Many other residents of the state have been falling victims to exploits of these fraudsters. Mercy Elom, 18, from Ebonyi State, was also robbed and raped by the same gang. She was attacked when she boarded a cab at Ejigbo bus stop on her way to work. Her attackers pointed a gun at her midway into the journey and later whisked her to the same location where they earlier robbed their first victim, Oko.

Her case was a little bit different from Oko's own; she was raped when her attackers couldn't get any cash from her. They found two ATM cards in her purse and ordered two men to follow her to an ATM machine where they withdrew N56, 000 from her account. She also made her complaint at Ikotun police station. Fortunately, police detectives swung into action and succeeded in arresting an elderly landlord of the house close to where she was attacked.

Luckily, the detectives carried out further investigations after the case was transferred to the special anti-robbery squad, SARS, at the headquarters, Ikeja, and arrested their leader identified as Rotimi Adegunola (42). Three other members of the syndicate, Joseph Okoro, Joshua Adeoye and Sylvester Orji, were also arrested.

Police sources said they initially thought they were dealing with armed bandits only for them to discover after the arrests that they were fraudsters who have devised new methods of frightening victims with guns before forcefully dispossessing them of their money. They said: "Our search took us to the home of one of the most dreaded and notorious fraudsters in the State, Rotimi Adegunola who has been on the wanted list of all police formations.

"Prior to his arrest, we caught other three members of his syndicate who actually led us to him. But while we were interrogating them, they confessed that people were no longer falling prey to their style of operation hence they decided to add new methods to their trade. These could be the obvious reasons why they now use firearms in intimidating their victims into parting with their valuables."

When Crime Alert spoke with the alleged notorious leader of the syndicate, Rotimi, inside the confines of police cell, he admitted indulging in the act of fraud but denied ever using firearms in intimidating his victims. He said: "I am a business man, I am into local 419, and my office is at Alhaji Olojo's compound in Igando.

"We defraud people with our brains; we don't intimidate them with guns. All we do is to set out to various parts of the state to get our victims and when we succeed, we engage them into conversations about some stolen money in the boot of the cab. When they fall prey to out story, we would then tell them to come for spiritual cleansing, after which we will frighten them into taking oaths that would kill them for divulging details of our dealings.

“After this we would ask the victims to bring to us all the money they have in their possession. This is all I do but I don't use guns. As the leader of the syndicate, I took over N120, 000 as my share from the Oko's loot and took N15,000 from Mercy. I don't know if my boys showed her gun as she claimed but I am sure we don't operate with gun."


http://odili.net/news/source/2012/feb/9/331.html

While I don't believe she is entitled to such an exorbitant amount, she is entitled to a whopping amount. . . say, $15-20 million. The folks that think they had the right to split this family up had no right and it is really difficult to put a price on family and integrity. This is just another classic example of the government, whom we elect and pay, sticking their Fucken noses where they don't belong. I wish I was an attorney, I would represent her in this case for a very minimal amount like 10%. Their Constitutional rights got violated. . .stomped on, the whole family got screwed and they deserve to be compensated generously.

Information minister, Labaran Maku, says that incessant attacks by Boko Haram in Kano, which is the commercial nerve center of northern Nigeria, is gradually killing the economy of the north.

Mr. Maku said this while addressing state house correspondents after the weekly meeting of the Executive Council of the Federation (FEC) at the council chamber, Aso rock villa Abuja.

The minister was reacting to the consistent threats being issued by the Boko Haram sect to attack cities in the northern part of the country and said such threats and attacks are paralyzing the economic activities of the region.

“Terrorism in places like Kano is destroying the North as it hits at the heart of the development of the region,” Mr. Maku said.

He also noted that the northern part of the country needs peace more than any other region because it lags behind in terms of infrastructural development, literacy level and industrialization.

"The attack on Kano is so significant because Kano has always been the commercial centre of western Sudan for the past 500 years, even before the evolution of Nigeria, Kano was the economic epicenter of not just northern Nigeria, but that of Niger Republic, Chad and Cameroon, so when you destabilize peace in Kano you threaten the foundation of economic and social well being of all northerners.”


This, he said, has made it imperative for Northern leaders, elders and other stakeholders in the region to rally round the government and get involved in bringing this ugly development to an end.

Mr. Maku said this explains why the Vice president met with governors from the northern region last week, while the Arewa Consultative Forum (ACF) and all major traditional rulers from the north also met to find a lasting solution to the crisis.

During these meetings, the leaders, Mr. Maku said, have agreed on certain terms such as the need for community surveillance, cooperation and integration.

The minister reiterated that the federal government is willing to engage members of the sect in a dialogue as long as they will lay down their arms and embrace peace.

"In spite of all these it is the understanding of the federal government that those involved in terror attacks are our children. Yes foreigners are involved but they do so in partnership or in collaboration with some Nigerians and because they are our citizens, we have continued to call on them to lay down their arms, whatever grievances they have can be better realized by bringing those grievances in an orderly way to the government at all levels


"But the President has turned in the olive branch. It is not a happy thing for Nigeria to deploy its military forces against some of its citizens, therefore it is not something we are doing out of choice."

Mr. Maku also said the recent threat on attack Sokoto, which is the spiritual head quarters of all Muslims in Nigeria, shows that the sect is not fighting any religious war.

"If you go and attack Sokoto for example, Sokoto is the spiritual headquarters of all Muslims in the country. The Sultan of Sokoto is officially recognized as the leader of Muslims in Nigeria. He is the Prime leader and authority of Islam, so if for example you attack Sokoto what is the benefit? And that is why we continue to say that we do not see much of religion in what is happening, because Sokoto is virtually an Islamic centre and the headquarters of the caliphate that spreads Islam to most part of Nigeria and even South-West so if you go and attack Sokoto in what way does it affect the course of Islam if it is Islam they are fighting for?”.

LWKMD!!!

Btw, that's his identity. Why would they want him to shave off his laurate beards?

This SSS should come up with something else.

^^^ :-x

Asian-Americans are an even smaller minority, yet they have their act together. "Disadvantaged" AA should watch and learn what Asians do differently from blacks so that maybe some day, the "disadvantaged" can be productive instead of a liability.

jellyloveb:
My Friend Parents were born in the united States of America; They are of mixed blood- African slave--Slave master-Cherokee Indian- Their children were born in Germany, What are they?

I would call your friend parents an American, pure and simple,  with the heritage of North American Indian, with some black from what ever source. Still they are an American!!! and their children are Americans unless they are dual citizens.

The Federal Government plans to spend N3.19bn on the pensions and allowances of former Presidents, Heads of State, their deputies, former leaders of the National Assembly and their families in the year 2012.

The proposed N3.19bn represents an increase of about N2bn from what was provided for the former rulers in the 2011 Budget.
The government also earmarked a total of N141.7bn for the pensions and gratuities, of retired civil servants, that are not captured in the contributory pension scheme.

The amount contained in the 2012 budget currently before the National Assembly is under Service Wide Votes. Our correspondents report that beneficiaries under this heading will receive a total of N414.4bn for the fiscal year.

The Remuneration for former Presidents, Heads of State Act passed by the National Assembly in November 2010 provides for the remunerations of all former Presidents, Heads of State and their deputies, including the families of former leaders who are late.
Currently, those who benefit from the Act are former Heads of State Gen. Yakubu Gowon; Gen. Muhammadu Buhari; Gen. Abdulsalami Abubakar; Gen. Ibrahim Babangida; former head of the Interim National Government, Chief Ernest Shonekan; former President Shehu Shagari; former President Olusegun Obasanjo; their living deputies; and former heads of the National Assembly.


Other beneficiaries are the widow of a late former President, Dr. Nnamdi Azikiwe; the widows of a former Prime Minister, the late Sir Abubakar Tafawa Balewa; and the widows and families of former Heads of State, General Murtala Muhammed; and Gen. Sani Abacha.

When the N1.2bn bill was presented to the Senate in 2011, the Senate Committee on Federal Character and Intergovernmental Affairs queried the amount, saying that it was too high a price to pay for the comfort of former leaders who presided over the “economic retardation” of the country.
But explanations from the Office of the Secretary to the Government of the Federation showed that there were seven living former Heads of State, five Vice Presidents, six families of deceased leaders and two families of deceased Vice Presidents.


Among other benefits, the former leaders are expected to get a five bedroom housing accommodation each in any location of their choice with telephone services; at least three vehicles; and salaries of personal staff.
Also, the law provides that government should cater for the needs of the former heads of state whenever they visit Abuja, as well as pay for their use of courier services.

Reacting to the provision, Chairman of the Senate Committee on Finance, Senator Bassey Otu, said the Senate would take a look at the provision and ensure that the former leaders did not get beyond what they deserved.
He said the N3.19bn might be slashed in line with the new posture of government to reduce the cost of governance.

“Rest assured that anything that should be done to bring these budgets to their proper sizes, will be done,” he said.

But the President of Campaign for Democracy, Joe-Okei Odumakin, criticised the increase from N1.2bn to N3.19bn, saying it smacked of insensitivity.
She told one of our correspondents in a telephone interview on Sunday that voting more money for the care of former leaders suggested that the poor would remain poor while those who had misruled the country would continue to grow richer.

She said, “First and foremost, it is extremely outrageous. How can you explain an increase from N1.2bn to N3.19bn? It smacks of insensitivity to the plight of Nigerians. It is sad that this is happening when our citizens are impoverished.

“It means that all the mouthing that the regime will reduce their pay is cosmetic and hypocritical.”
Also, the All Nigeria Peoples Party said the huge budget provision was President Goodluck Jonathan’s way of preparing the ground for when he would leave office.

According to the National Publicity Secretary of the ANPP, Chief Emma Eneukwu, the government has no idea of how to move the country forward.
He said, “We keep on saying it that this government has no human face and that it does not care what happens to the people.

“It was telling Nigerians that it was going to cut expenses, yet, it went ahead to increase the budgetary provision for these leaders.
“This same government told us that the economy would collapse without the removal of petroleum subsidy. It did not tell us that the economy of individual would collapse.

“This government is proving it day-by-day that it is a government that lacks vision and cannot be trusted. Nigerians cannot be deceived forever. One day is for the thief, the rest are for the owners.”


Culled from punch Newspaper.

We Heard That Court Removed #Ole from #Bank-Ole

What in the name of Pete is going on here?

odiaero:

Lol

@ Topic, i guess she ran out of luck, am suspecting many Airlines crews to be doing this, it's just a matter of whom ran out of luck

Well said.

A lot of those stewardess are into this ish, It's just that she had a bad day and got caught.

A Federal High Court in Lagos has ordered that a Nigerian, Rasheed Mustapha, be extradited to the United States of America for allegedly stealing $798,907.62 (N125.3m) in that country.


The verdict came after a lot of drama between the Economic and Financial Crimes Commission and Mustapha, who through his counsel, Joseph Nwabike, fought the extradition order.


Nwabike had argued that the court was not competent to hear the extradition charge. He added that he could not be extradited because of the alleged offences, more so, when the offences were not against any Nigerian law.


The office of the Attorney-General of the Federation, which filed the extradition order on behalf of the EFCC, had explained in the order that, “,  a request has been made to Nigeria by a diplomatic representative of the Embassy of the United States of America, Abuja, for the surrender of Rasheed Abayomi Mustapha who is jointly a subject of a superceding indictment in the United States District Court for the District of New Jersey, Case Number: 08-CR-429 and filed on the 31st day of October, 2011.”


Some of the charges against Mustapha in the USA include, “Conspiracy to violate the laws of the United States, in violation of Title 18, United States code, Section 1349, namely mail fraud, which carries a maximum penalty of five years' imprisonment. Mail fraud, in violation of Title 18, United States Code, Section 1341 and Title 18, United States Code, Section 2.”


The letter had added that each count was punishable by a maximum penalty of 20 years imprisonment.


In her ruling, Justice Patricia Ajoku dismissed the preliminary objections, stating that based on the Nigerian constitution, the court was competent to decide the extradition of the accused person.


She subsequently said the accused person should be extradited to the US to face the charges. Ajoku also faulted the accused person's argument that the offences were not known to the Nigerian laws.


EFFC Acting Head of Media, Mr. Wilson Uwujaren, said from the commission's investigation, Mustapha and his collaborators conspired to steal $798,907.62 in distribution cheques.


He said, “Of that amount, $750,651.48 was actually issued and deposited into bank accounts controlled by members of the syndicate. The sum of $500,000 was withdrawn and distributed between Mustapha and his group.


“Mustapha, 37, had returned to Nigeria after allegedly committing the crime in the United States. However, collaboration between the EFCC and the FBI led to his arrest by the operatives of the EFCC in May last year.”

http://odili.net/news/source/2012/feb/2/817.html

They should have used their Shoes on him.

If he is really arrested, Hope he will not cause M. D. Abubakar his job.

Killz, you obviously a victim of severe cretinism,  clueless dunce. You need to upgrade your brain, seriously! Which world are living? 20million is common in the world you live in?

You must be arrogant, vacuous,  gluttonous and generally apathetic to the environment you live in  by virtue of not having to think much since everything is provided/done for you.

No offense!

^^^

Correct yarn bros.

DaShyGuy:
I actually underestimated your dumbness.

I give up!

He is more dumber than i thought

There is too many twinkle toed-hand holding-historical revisionists troweling out the prattle of the Rockefeler Steak-tartare crowd while believing that they are being anti-establishment. If you are reading "Godfather Politics" you had meat and potato's last night for dinner just like me, not the rich-elitist tid-bits consumed by Romney, Dole, Coulter, and "the Boahner." Romney can afford to buy the GOP nomination assisted by every RINO in the US Congress, but Romney who is funded by the Mormon Bank, Bain Capitol, and numerous off-shore accounts cannot beat the media oligarchy. Once they (the establishment) are sure Romney has the nomination, his religion will become the issue, and it is a huge issue.

1. Treatment of women.
2. Treatment of people of color.
3. Collection of data on individuals not members of the Mormon Church.
4. Baptizing Jews postmortem.
5. Child abuse on both boys and girls.
6. Excommunication
7. Secretiveness of the Mormon society.
8. Treatment of homosexuals
9. "Oath of vengeance against the United States" for killing the "prophets."
10. 43% of Americans "will not vote for a Mormon for President of the United States"

Republicans cannot raise these issues because the first person to do so will be labeled intolerant - the DNC combined with the national press, and every university professor, will use it then and they are preparing for it now. Romney is absolutely NOT going to be President of the United States.

[color=Black]Benin President New Chair of African Union
[/color]

The gory activities of the Islamic extremists group, Boko Haram on Sunday stopped President Goodluck Jonathan from clinching chairmanship position of African Union (AU).

Against expectations that the Nigerian president will emerge Chairman of the Africa's largest body, President of the Republic of Benin, Boni Yayi has been elected the new chairman of the African Union for the period of 12 Months.

Leadership gathered that news of insecurity and the mass protests both home and abroad that trailed the removal of fuel subsidy played major roles in turning down the choice of Jonathan as AU Chairman.

The newly elected chairman who is himself an economist in his acceptance speech, however, promised support for jonathan and Nigeria in tackling the terrorism problem which the country currently faces.

"I want to congratulate the new chairman of the African Union,  Boni Yayi," said Obiang, the outgoing chairman, speaking after the official announcement at the AU summit meeting in the Ethiopian capital.

"I have no doubt that with your great leadership ,  you will conduct the work of our Union towards our agenda of peace and prosperity. I wish you all success in your efforts," Obiang added.

Yayi, an economist who took office six years ago of the small West African nation, said he accepted the post with humility for the "high responsibility."

"I wish to express my gratitude with respect and appreciation to the heads of state we have here for the confidence they have in my regard," Yayi said after the vote.

"We shall continue to work hand in glove to ensure that we consolidate all that we have achieved so far," he added.

Obiang, summing up his year in office, accused "external powers that wish to perpetuate their influence" of manipulating Africa.

"Africa should not remain indifferent to external interference. Africa should not be questioned with regards to democracy, human rights, governance and transparency in public administration," he declared.

http://allafrica.com/stories/201201290031.html

Our Nations is in Shambles. . . .

In another development, Borno Elders and Leaders of Thought (BELT), on Monday, called on the Federal Government to urgently initiate a genuine process of dialogue as soon as possible with the Boko Haram sect, because the security situation in the country is worsening with the continued serial killings and bombings that claimed over 450 lives this month alone.

The elders and leaders of thought also warned President Goodluck Jonathan against a defence pact and security surveillance with the United States in protecting the country against terrorism.

The calls and warnings were made in a press statement signed by an elder statesman and former Minister for Steel and Petroleum Resources in the First Republic, Alhaji Shettima Ali Monguno, and made available to newsmen in Maiduguri, the Borno State capital.

The statement read: "It is only when the real sect embraces peace that we shall identify those who are hijacking the process of violence to pursue their criminal agenda," adding that the people of Borno were never known for aggression against other ethnic or religious groups, "while the compatriots from other parts of the country that live with us could bear witness."

On the dangers of defence pact with the US, Monguno, in the statement said: "it is unconstitutional to deploy foreign troops in Nigeria; it would certainly be to the detriment of Nigeria to do so. Let our own forces truthfully, sincerely, humanly handle our security challenges.

"They should be told that human life, moreso of the innocent, is sacred and the cry of the blood of the innocent is an additional doom for the country."

The statement further said: "To the best of our knowledge Nigeria has never entered a defence pact with any nation. Nigeria does not need any defence pact, to protect her. Our Armed Forces and the police, who did serve wonderfully well in various peacekeeping operations, are very much capable of protecting our country.

"If they are sincere and truthful in discharging their responsibilities, we have no doubt in our minds that they can effectively handle any situation confronting the nation. Unfortunately, their rules of engagement seem to give them away. They seem to be losing the love, confidence and support of the people, because of the way and manner they execute their operations, i.e. the amount of killings either by hanging, starving and or shooting of innocent citizens in the so-called interrogation centres."


http://tribune.com.ng/index.php/front-page-news/34833-police-discover-another-8-bomb-laden-cars-in-kano-recover-300-canned-bombs-boko-haram-gunman-kills-court-registrar-as-jtf-kills-4-suspected-sect-members-borno-elders-warn-jonathan-on-security-pact-with-us

Nobel laureate, Prof. Wole Soyinka, has described the legislative arm of government as the apex of corruption in Nigeria.




Soyinka, who used 'hydra' and 'octopus' as images to define the kind of graft confronting the country, said the National Assembly was the pinnacle of what he described as “hydro-pus” corruption.


The renowned playwright spoke in Lagos on Monday at the Town Hall meeting organised by the Save Nigeria Group and its allies with the theme 'Endemic Corruption: The Bane of Good Governance.'


He said, “The Nigerian legislative system is hydro-pus. There is no way you can fight corruption without changing the legislature. Here, the more corrupt a person is, the more chieftaincy he will get.


“We need a complete systemic transformation. Why should there be full-time legislation. Corruption is right at the top and percolates down. Like the Greeks, Nigerians are saying we know where the money went through don't punish us for your greed.”


He also appealed to Nigerians not allow themselves to be pushed into reprisals by the bombings by Boko Haram.


Soyinka said, “They want to push patience to a limitation. They have embarked on a programme to push neighbour to neighbour. We must not accept the agenda of Boko Haram. Don't even for a moment consider reprisals. Protect your neighbour.”


The playwright, who called for a Sovereign National Conference to address the problems bedevilling the country, commended Nigerians for their stand against the removal of fuel subsidy.


He, however, noted that such an action before now was “often sadly lacking.”


He said, “It was very refreshing and very stimulating. The spontaneity and organisation is something that people in other countries appreciate.”


Soyinka also said it was dishonourable for some people to ascribe ethnic colouration to the protests.


He said, “Never mind the complaints of betrayals. If you don't believe in a cause, stay away from it rather than give it an ethnic sectarian trust. It is dishonest and dishonourable. Don't depress the rest of us simply because you think if you support a cause it will reduce your revenue. I hope that is the last we will hear of that.”


In his speech, 'Understanding How Power Works', the Convener of SNG, Pastor Tunde Bakare, said the power of a leader was the one given by the people.


President, Campaign for Democracy, Dr. Joe Okei-Odumakin, who lamented the level of poverty in the country, also frowned on the affluent lifestyle of its political leadership.


She also criticised the deployment of soldiers to quell protests against fuel subsidy removal in Lagos, saying no intimidation could silence a people committed to a genuine cause.


Afrobeat musicians, Femi Kuti and Dede Mabiaku, in their speeches said the majority of Nigerians continued to suffer in the country.


Femi said, “Anytime you see Ibrahim Babangida, Bola Tinubu, James Ibori and Dimeji Bankole ask them, where is our money.”


Earlier, an ecomomist and monetary analyst, Mr. Henry Boyo, in a paper titled, 'Save the Naira, Save Nigerians,' stressed the need to make the naira stronger.


He explained that a stronger Naira would bring about cheaper fuel price, lower machinery/material cost, low production cost, cheaper products, lower inflation, increasing demand, higher employment, improved security and reduction of debt.


http://odili.net/news/source/2012/jan/24/834.html

jellyloveb:
I 'll go for option 4, I wll use his money to make him handsome.  

@ Jellyloveb, u wil use his money 2 make him handsome but u seem 2 4get dat some or perhaps all ur kids could take after their dad, so how do u deal wit dat?

[quote author=Mr, Cork link=topic=854188.msg10038826#msg10038826 date=1327428176]tyson55 . bro you look ugly and caring (no oofeinse) [/quote]@Mr, Cork, bro you look Dumb and impotent (no oofeinse)

Jenny20:
None of the above.

Frankly, my kind of husband is not on the list. It is better to be a nun than be married and unhappy!Shikena!

@Jenny20, Thanx for telling the truth, :-)

Insightful.

Where is the part 2?

mikeansy:
^^^^^^

U still dont get it. The structure of Nigeria and how it works breeds corruption by default.
Having a central government paying money to state governments is the fundamental reason why we will never tackle corruption, it is the reason why we will never have a proper census, it is responsible for biased election, it is responsible for our failed immigration policy, failed policing, the cost of running the huge fedral government is also unsustainable.

We can run in circles all we like, but if Nigeria continues in its current structure it will never work!

+1

sexkillz:
[color=#000030]Hypocritical Nairalanders! Why isnt anyone calling the OP "Insecure". . .Smh!

OP, that attitude is so whack mahn! It's rude and unacceptable! And you are still tolerating it? She'll keep doing it! If you want really it to stop, talk to her about it, and how it annoys you and how she's supposed to consider you too in her activities as her bf blah blah! if she continues and you really really want it to stop, anytime you are in the middle of a very important boyfriend girlfriend conversation, and her phone rings and she dares pick it, grab it and smash it! Apologize and buy her another one! She'll get the message!
[/color]

Sexkillz, I 'm with you on this!!

@OP, Time for a new girlfriend as this one's in a full time relationship with her phone.


Tell if she does not turn the GD phone off when she goes to bed you will throw her out of your life like a cheap sheet of toilet paper. Then smash her phone against the wall. The world does not need her reproducing and raising children like her. Save us all while you still can.

"Norwich and Swansea in the top half, what a breath of fresh air! Two real teams, no primadonnas. Best of luck to them."

[color=Black]Arithmetic of Fuel Subsidy by Wale Majaro[/color]

As I write this, Nigeria has been paralyzed by a labour strike for the whole of this week. On New Year's day, the government removed government subsidies on petrol, the price went from N65 to N141. Arguments rage about whether or not removing the subsidies is a good idea. A friend of mine has analysed the problem scientifically, please read his excellent piece below:

Arithmetic of Fuel Subsidy (by Wale Majaro)

The Nigerian government claims that Nigerians consume 34million L of petrol per day. Most experts disagree and give a figure between 20ML and 25ML per day. For this write up, I will use the government figure. The government has also said that N141/L is the unsubsidized pump price of petrol imported into Nigeria, with N131.7 the landing price and N9.3 as profit.

Now, the government has made claims of the refineries working between 30% and 60%, depending on whom you listen to. For the sake of argument, I will assume that our refineries don’t work at all (i.e. 0% Production). Thus, my calculation is based on 100% of petrol used in Nigeria being imported, the worst case scenario. If the refineries actually work at 60% as the government claims, they should be processing 270,000 bbl/day of crude. Each barrel of crude produces 75L of petrol. So, if the government is to be believed, the refineries produce 19.5 million L of petrol a day and we should therefore only import 14.5million L a day. My analysis will ignore this completely.

So here is the arithmetic, using the government’s own figures:

Daily fuel consumption/importation: 34million L
Cost at pump: N141
No of days in a year: 365
Total cost of all petrol imported into Nigeria = 34Mx141x365 = N1.75 trillion

Now, Nigerians have been paying N 65/L for fuel, haven’t we? Therefore, cost borne by the consumers = 34Mx65x365 = N807 billion

Cost of the subsidy borne by the government is:

Subsidy = Total cost of import – cost borne by consumers
= N1.75 trillion – N807 billion
= N943 billion

So, even if we believe the claim that we consume 34million L/day and we assume that the refineries don’t work, the government should still not have spent up to N 1 trillion on the subsidy in 2011. How did they manage to spend N1.3 trillion by October? Since N1.3 trillion was spent by October, then the bill for the full year 2011 (assuming a constant rate of consumption) is: N1.56 trillion!

What accounts for the difference between N943 billion and N1.56 trillion? This is a difference of N617 billion that the government cannot explain. Did I hear a government official claim that the difference is what goes to subsidize our neighbours through smuggling? Time for more arithmetic.

Using figures from Okonjo-Iweala’s World Bank, here are the populations of West African countries:

Nigeria: 158.4 million
Benin: 8.8 million
Togo: 6 million
Cameroun: 19.6 million
Niger: 15.5 million
Chad: 11.2 million
Ghana: 24.4 million
The total population of all our neighbours: 85.5 million

Now, let us assume that fully 50% of the petrol consumed in each of these countries is illegally exported from Nigeria. Let us also assume that each of these countries consumes petrol at the same rate the Nigerian government claims petrol is consumed in Nigeria. I have deliberately ignored the ff facts which show that petrol consumption in these countries will necessarily be considerably lower than consumption in Nigeria:

Some of these countries have stable electricity (eg Ghana) and thus do not depend on petrol-driven generators for power.
Ghana, Togo and Benin are much smaller than Nigeria, thus traveling distances will be smaller.
Niger and Chad are mostly desert and cross-desert transportation of goods/people is mostly by diesel-consuming trucks, not petrol-consuming cars.
Apart from Ghana, the car density in each of these countries is much, much lower than the car density in Nigeria. In Nigeria, there are 31 cars for every 1000 citizens. In Togo and Chad, you have less than 10 cars for 1000 people.
Ghana has started to produce oil and will very likely rely less and less on refined products smuggled from Nigeria, once the Ghanaian local refining capacity is built up.

Rate of petrol consumption in Nigeria = Total consumed/total population
= 34ML/158.8M people
= 0.21L/person/day

Rate of petrol consumption in neighbouring countries is assumed to be same as Nigeria = 0.21L/person/day

Petrol consumption by our neighbours = Rate of consumption x total population
= 0.21x85.5M
= 18.35ML per day

Now, we have assumed that 50% of the petrol consumed in each of these countries comes from Nigeria. This value comes to: 9.18 millionL per day.

Let’s pause here. Think about it again. Is it possible for 9.18 million L of petrol to be smuggled out of our borders and the government cannot do anything about it? The biggest fuel tankers in Nigeria have a capacity of about 36,000L. How many of these trucks do you need to smuggle 9.18 ML of fuel? 254! Our government is telling us that over 250 huge tankers pass through our borders everyday and they cannot do anything about it! Wow! Talk about incompetence! This in itself is an urgent security challenge – if you cannot stop 250 tanker trailers from crossing the borders daily, how can you stop importation of weapons or even an invasion by a foreign army?

But that is not all.

Let’s believe the government and assume that about 9.18ML is actually taken to our neighbours everyday and this is all subsidized by the Nigerian government.

How much will this translate to?

Difference between pump price before and after subsidy removal = N141-N65 = N76
Total spent on subsidizing petrol to our neighbours annually = N76 x 9.18ML x 365
= N255 billion

I have assumed that:

There are no working refineries in Nigeria.
Nigeria actually consumes 34ML of petrol per day.
Ghana, Togo, Benin, Cameroun, Niger, Chad all get 50% of their petrol illegally, from Nigeria.
Ghana, Togo, Benin, Cameroun, Niger, Chad all consume petrol at the same rate as Nigeria.

Yet, the government’s figures still don’t add up! There is N362 billion missing. This is the difference between N943 billion and N1.56 trillion, assuming N255 billion is wasted through subsidizing the rest of West Africa. The government should tell us what/who eats up this N362 billion ($2.26 billion).

These figures simply show the incompetence and insincerity of our government officials. The simplest part of the arithmetic is laid down below:

NNPC crude oil allocation for local consumption: 400,000 barrels per day
Assuming refineries work at 30%, 280,000 barrels can be sold on the international market. (Remember that I assumed that refineries don’t work in calculating our consumption, to give an absolute worst case scenario).
Money accruing to FGN, through NNPC on the sale, using $80/bbl: $22.4m a day. Note that the true price is higher, as oil currently sells for $100/bbl and Nigerian crude sells at a premium to the benchmark Brent crude.
Annually, this translates to: $8.176bn or N1.3trillion.

What does this mean? The government does not subsidize our petrol imports, at least not 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/day given to NNPC for local consumption can either be refined by NNPC or sold to pay for imports. The “subsidy” should be funded with this money, not the regular FGN budget. If the government uses its regular budget for subsidizing petrol, then what happens to the crude given to NNPC for local refining, but gets sold on the international market?

Conclusion

Now that the petrol pump price has been hiked by over 100% and resulted in 100-200% increases in the price of transportation, personal electricity generation and foodstuff, what do I advise the government to do?

Revise the petrol price, not to N65, but to an amount which takes inflation into consideration. Cumulative inflation from 2008 to 2011 is about 27%. A new petrol price of N88 should be a reasonable sacrifice for Nigerians, while the government tries to build trust by sorting out the real issues of the midstream/downstream oil industry and cutting down the cost of governance.
Partner with the International Oil Companies (IOCs) operating in the upstream oil sector to carry out the deregulation of the midstream/downstream oil sectors. Refineries are not very profitable compared to other areas in the oil industry; with profit margins ranging from 0-15% (this is why we don’t see companies queuing up to set up refineries). The government needs to give incentives to these companies to set up refineries in Nigeria, in the form of tax breaks, duty exemptions, crude price guarantees, etc. All agreements should be in place, with an enabling law, by September 2012.
The government has already shown and admitted that it cannot manage refineries. All new Greenfield refineries should use the NLNG model, where government owns enough equity to influence strategy in favour of the Nigerian people, but is not involved in the routine management of the company. This is the best way to get the best out of these refineries while protecting the national interest. The new refineries should come on stream by end of 2014.
Sell the existing refineries to the IOCs and stop spending taxpayers’ money trying to revamp them within the current structure. The IOCs have built and currently operate hundreds of refineries across the world, so refining is their bread and butter. ExxonMobil’s Torrance Refinery is over 80 years old, Total’s Port Arthur Refinery is about 100 years old – these companies know how to manage refineries.
The sale of the refineries should be carried out by September 2012. I know the refineries have been very poorly managed, so we should not expect to make tons of cash from selling them. The main advantages of the existing refineries to a buyer are the existing Brownfield facilities (roads, utilities, power), an existing pipeline distribution system and a skilled workforce. The IOCs should be mandated to revamp these new refineries to 70% nameplate production by January 2014 and 95% by January 2015.
Incorporate PPPRA into DPR by December 2012, with an appropriate legislation (I’m not sure whether this is already included in the PIB). Let us have one strong agency to monitor all activities, including product pricing in the downstream oil industry.
Balkanize PPMC and sell it off to private investors, again with the government retaining a non-controlling stake in the new entities. This should be done by September 2012, in parallel with the sale of refineries.
Increase the fuel price in Jan 2014, not by simply jacking up the prices, but by introducing a tax on imported products. The tax should be deducted at source when making “subsidy” payments to the importers. Jan 2014 is chosen because I expect the output from local refineries to improve to at least 70% within 1 year of operations by IOCs.
Introduce a law that any company that will be licensed to import petroleum products from July 2013 must either be currently running a refinery in Nigeria or be in the process of building a refinery in Nigeria (i.e. project has passed FID stage and execution contracts are signed). The total products each individual company can import must not be more than 20% of the company’s total refining capacity (existing + in construction) in Nigeria. This is the only way to break the importation “cabal”.
Immediately, start prosecuting all companies and individuals suspected of involvement in the royal mess that the fuel importation segment has become. Use the same vigour (or more) that was used in the 2009-2010 reform of the banking sector. Also, all companies and individuals suspected of involvement in the refinery TAM contract scams should be prosecuted.
Immediately, tighten the borders to minimize smuggling of petroleum products to neighbouring countries and sack/prosecute the relevant officials if smuggling remains a major issue. Our petrol will always be cheaper than that of our neighbours, especially if/when local refining reaches/surpasses local consumption. As every economist knows, products will always be cheaper in the source location than other places.
Set up petroleum product trading agreements for surplus products in Nigeria to be sold to neighbouring countries in a legal and transparent manner. All agreements should be in place by July 2013, well in advance of additional capacity coming on stream. These agreements will assure companies building refineries that there is an available regional market for them to legally sell products refined in Nigeria.

With all the above, “subsidy” will disappear by Dec 2014, but in a gradual process, ensuring no price shocks (such as the 100% increase of Jan 2012) re-occur and ensuring that the industry is actually sanitized. Of course, the government also needs to keep to its several promises of improving the power sector and revamping rail lines, two critical developments which will reduce our consumption of petroleum products significantly.