President Goodluck Ebele Jonathan has said the law enforcement agents were carefully investigating the House of Representatives Oil Subsidy report, to establish water-tight cases against those who may have committed offences warranting being charged to court.
President Jonathan was speaking to Nigerians resident in Belgium, Thursday, after delivering a keynote address to the 119th/120th Sessions of the World Customs Organization.
“The EFCC is working on the report, so we must give them the chance to do their job. We have to build water-tight cases if we hope to get any conviction for any wrongdoing, and the law demands proof”, he said, adding that it was better to do a good job than to lose the cases in court due to shoddy preparations.
He urged Nigerians, including the media, not to consistently run the country down. “Take a look at the USA: after September 11, 2001, all Americans came together to support their government’s fight against terrorism, regardless of their political leaning”, he said, adding that Nigerians should not play to the gallery or play politics with serious national issues.
“We will continue to ensure our freedom of speech, but we should use it to build the country, not destroy”, he advised.
President Jonathan called on Nigerians in the Diaspora to join the transformation agenda by investing in industries at home to create jobs, noting that many developed countries have reached this position because their citizens resident outside have gone back to invest there.
The President spoke on other issues, including the NHIS, economic growth, free and fair elections, electricity supply and national security.
In his brief remarks, Nigeria’s ambassador to Belgium, Mr. Felix Awankor, said the Nigerians in Belgium were well behaved.
“What happened in Kano today is yet another challenge. This situation must be checked and that is why we are working closely with all security agencies to address the situation,” stated the Governor of Kano, Malam Rabiu Kwankwaso following the attack on a Chapel inside the Bayero University [old campus] Kano by the dreaded Muslim terrorist group, the Boko Haram on April 2012. Commenting further, he added “here in Kano, we do not set aside a kobo for security votes, now, I can assure you that in our treasury today is more than N20.5 billion saved within eight months with which we are launching an accelerated development of the state.”
However information recently made available to 247ureports.com through a source close to the activities of the Kano State government indicates that the Kano State government may have acted in a manner depicting a misplaced priority. According to the information received, the Governor of Kano, Malam Kwankwaso received shipment of three [3] Armored Escalade Cadillac [Sports Utility Vehicles] at the total price of N156million excluding shipping cost.
The three [3] armored vehicles arrived to Nigeria from Texas [TAC-USA] through Tin Can Island on Sunday June 3, 2012. They were supplied by Maibiyar Motors.
[It is striking the vehicles arrived Tin Can Island on the same day multiple bombs exploded at Church buildings in Bauchi State killing and injuring numerous church goers.]
The 3 armored vehicles, as gathered, are for use by the State governor for his land transportation while in the country. The vehicles provide protection against high-power rifles such as 7.62×39, 5.56×45, 7.62×51 and M80 ball. Additional areas of armoring are the fuel tank, battery and computer module. It has anti-mine protection including DM51 grenade/fragmentation. It is a 6.2L V8 Gasoline engine and a 6-Speed Automatic transmission.
The purchase of the vehicles by Governor Kwankwaso tells the broader story of the state of insecurity in the northern state of Kano as seen through the eyes of the State governor.
The Inside
It is recalled Gov Kwankwaso had arrived to the seat of governor as the prudent administration who had come to streamline the financial management of the State away from the wastage that had plagued the state previously. But informed observers of the state administration who have become conversant with the ongoings within the Kwankwaso administration have begun to point to questions that may require clear answers by the government of Kwankwaso.
To them, the purchase of Escalade [Cadillac] SUV at the purchase price appears exorbitant and a far distance away from being prudent with Kano State resources. They point particular concern to the purchase by the governor as evidence that the Governor may have given up on the insecurity in the State.
The Chief Press Secretary to the State government, Malam Dantiye, was reached through his mobile MTN line but he declined comment. The Information Commissioner, Hon. Farouk was reached through his mobile MTN but he also declined comment.
South African Deborah Calitz, reacts as she greets a family member upon their arrival with partner Italian Bruno Pelizzari, bottom right, whilst escorted by police officers at the OR Tambo International Airport in Johannesburg, South Africa on Wednesday June 27, 2012. The South African and Italian couple were held hostage for 20 months after being kidnapped in October 2010 from a yacht by Somali pirates.
JOHANNESBURG (AP) — A South African woman and her Italian partner were handcuffed throughout the nearly two years they were held by Somali pirates, who fed them little but rice, pasta and bread, the now-freed couple said Wednesday after arriving in South Africa.
Deborah Calitz and Bruno Pelizzari, captured in late 2010 from a yacht off the coast of Tanzania, spoke to reporters at an emotional Johannesburg airport news conference. They were freed in Somalia last week and stopped in Italy to see Pelizzari’s family before coming to South Africa, where friends and relatives draped in yellow ribbon printed with the word “believe” greeted them at the airport with tears, hugs and flowers.
“We were treated like untouchables” in Somalia, Calitz said. “We were treated worse than animals at times.”
The two were held captive 20 months, among the longest periods hostages have been held by Somali pirates.
Relatives have said the two were sailing on a budget after buying a used yacht several years ago to pursue a dream of traveling the world’s seas. At the time they were kidnapped, they were working for another South African yachtsman to earn money for a visit home.
The pirates originally demanded a ransom of $10 million, which relatives had said they could not pay. Their relatives in South Africa sought donations and organized concert fundraisers, and said the pirates kept changing their demand.
“Thank you for not giving up on us,” a tearful Calitz told her friends and relatives Wednesday. She also thanked the governments of South Africa, Somalia and Italy.
“We’re home! We’re safe! And we’re happy!” she said.
Calitz said Wednesday the couple did not know whether a ransom was paid. Last week, Somalia’s defense minister said Somali security forces helped secure the release. He did not describe it as a rescue, but would not say if a ransom was paid. Most such cases end with payment of multi-million dollar ransoms, which security experts say only inspires more hostage-taking.
South Africa’s foreign minister, Maite Nkoana-Mashabane, who met the couple at the airport Wednesday, told reporters the hostage-taking could only end once stability was brought to Somalia. Somalia has been beset by decades of civil war, and its last fully functioning government collapsed in 1991, allowing piracy and other crime to flourish. In more recent years, al-Qaida-linked militants have gained a foothold in the Horn of Africa nation.
Pelizzari echoed the South African foreign minister’s calls for peace.
“We’ve created a rainbow nation in South Africa,” he said, referring to the negotiated, peaceful end to white racist rule here. “We’ve got to do the same for the world.”
Governorship candidates of the political parties in Edo State [today, June 27, 2012] commended the modest efforts of the state government at repositioning the state in the areas of health care services, infrastructural development, education, employment generation and rural electrification.
They however said that they are gunning for the Osadebe Avenue because they believe they have better plans to improve on what is on ground.
On health, Prince Frank Onaivi Ukonga ofthe Social Democratic Mega Party (SDMP) said: “We are not here to run down anybody, Comrade Adams Oshiomhole has done well in the area of healthcare. He has already started well by giving free medical services to citizens of 60years and above.”
He also commended Comrade Oshiomhole for instilling discipline in the citizenry and cultivating the culture of queuing for intra-city bus services in the state.
On rural electrification, the candidate of the National Conscience Party (NCP), Mr. Paul Orunwense, while acknowledging the state Government’s effort in this area, said: “with all respect to the Comrade Governor, there is still a lot to be done”, while Mr. Roland Izebuwa of the Congress for progressive Change (CPC) said, “despite what Adams Oshiomhole has done there are still communities that need to be given light’’.
However, candidate of the Peoples Democratic Party, General Charles Airhiavbere blamed failures in the state on past leadership from 1999 to 2007, a period during which his party was in office.
Only the Labour Candidate, Mr AndrewIgwemoh was absent at the debate which will round off on July 5.
The attention of the Kaduna State Government has been drawn to a one-minute video clandestinely being circulated within Kaduna State by some faceless people.
The content of the video which shows grainy images of heap of dead bodies being handled by security forces is basically meant to deliberately tarnish the image of the state, truncate the peace building process in place and pit the adherents of our two major religions against each other
For the avoidance of doubt, it is pertinent to mention that the scene in the video was not shot in Kaduna state as can be seen from the abundance of neems trees in the background and the accent of some of the people speaking in the video is completely alien to people of Kaduna. The police Van in the background also shows that it is not from Kaduna State.
If anyone comes into contact with the video he/she should ignore it as it is a deliberate effort by certain individuals to kindle and fan the embers of religious and ethnic differences amongst inhabitants of our state.
The good citizens of Kaduna state are enjoin not to play into the hands of these people who are bent in further creating enmity and division among us for their own devilish goals.
Trying to put the crisis of the past few days behind it, the State Government and all security agencies will not tolerate any deliberate attempt to incite the people of the state against each other and are prepared to deal firmly and decisively with anybody caught fomenting unrest.
The State Government remains resolute in its attempt at entrenching sustainable peace and urge all in the state to join in the effort, remain peaceful and law-abiding.
A lesbian Episcopal priest who was recalled by a diocese in Sudan for her remarks regarding homosexuality has been invited to lead worship at a historic Virginia church.
The Rev. Lauren Stanley, who has frequently argued in favor of LGBT causes in The Episcopal Church, was invited by The Falls Church Episcopal to lead worship next Sunday.
Jeff Walton, Anglican staffer for the Institute on Religion & Democracy, told The Christian Post why the Sudanese Diocese of Renk had her recalled from her position.
“Archbishop Daniel Deng Bul Yak specifically told then-Virginia Bishop Peter Lee to recall her because of her statements at Diocesan Council insisting that the Sudanese didn’t care about same-sex relations,” said Walton.
“The Episcopal Church of Sudan has been very clear that they adhere to orthodox teaching and are against the normalization of same-sex unions in the Anglican Communion.”
The Falls Church Episcopal is a “continuing congregation” of The Episcopal Diocese of Virginia. Earlier this year, the Virginia Diocese won a years-long legal battle against the departing Falls Church Anglican congregation over possession of the church property.
Falls Church Anglican had broken away from The Episcopal Church over its increasingly liberal theology, namely its growing acceptance of homosexuality. The Falls Church Episcopal congregation is the smaller remnant of the congregation that remained with the Episcopal Diocese.
After years of court battles, the property of it as well as six other breakaway congregations were given to the diocese. Falls Church Anglican, led by the Rev. Dr. John Yates, celebrated its last Sunday on the property in May.
The Rev. Canon Phil Ashey, Chief Operating Officer of the American Anglican Council, told CP that the move to invite Stanley was an insult to those who were removed from The Falls Church property.
“The Rev. Dr. John Yates graciously expressed the hope that The Falls Church would continue to be a place where biblical, orthodox Anglicanism would be preached and taught,” said Ashey.
“If Bishop Shannon Johnston really wanted to honor that hope and build bridges with departing Anglicans, he would not have permitted such a divisive person to come and preach. This is nothing short of a poke in the eye to departing Anglicans.”
Regarding the property legal matters, Walton of IRD told CP that there still remains the question of the approximately $2.8 million in The Falls Church’s bank accounts.
“The money is currently held in escrow by the court pending the outcome of the appeal. TFCA argues that the funds were earmarked by donors to not go to the diocese or Episcopal Church,” said Walton.
“Most pledges at TFC were ‘restricted’ at least since 2003, meaning the donors instructed that none of their money be forwarded on to the diocese or national church.”
The Falls Church Episcopal congregation did not comment by press time.
President Goodluck Jonathan had once again showed that hecan bite and this time around the victim was Andrew Azazi, his erstwhileNational Security Adviser. President Jonathan understands Southerners so wellthat when he slowly delivers a killer punch, his victim will know that ‘Warsaw saw war’. However, he is yet to master the secret of striking at Northerners.
The first Southern Nigerian casualty of Jonathan biting exercise was BolaTinubu, the National leader of ACN. The Code of Conduct Bureau dragged Tinubu to court formaintaining foreign account barely three months after both of them were winingand dining in Lagos and negotiating how to prevent Buhari and Ribadu from making any impact in the 2011 presidential election.
The next casualty was opposition parties like APGA, LabourParty and others who sold their presidential ambitions to the PDP with the hope of being incorporated into his government. By the time he threw them out of thewindow, those party chieftains dreaming of being appointed cabinet ministers were leftin the cold waiting for the next election.
His next bite victim was the subsidy protesters especiallyfrom the Lagos axis. When he sent fierce looking soldiers to the streetsof Lagos to harass protesters and teargas some elder statesmen, Soyinka, Bakare, Falana, Agbakoba and other leaders of the popular Occupy Nigeria protest knewthat there is fire on the mountain.
Still basking in the euphoria of his defeat of these NADECO chieftains fabled to have pressurized Head of State Abacha to his graveyard, President Jonathan turned his full attention on Sylva and finished the suffocation project he earlier initiated.This Governor of his home state of Bayelsa had earlier threatened to snuff life out of his lame duck presidential kinsman and for that his second term governorship ambition was snuffed off despite all the pastors, bishops and seers hired to send fire in the direction of rampaging Jonathan.
This time around it was the turn of Azazi to receive thebite from Jonathan. He was sacked without the courtesy of priorinformation. Jonathan was obviously fed up with Azazi. Azazi’s fate was sealedduring the long holiday that preceded the May 29 Democracy day celebrations. Thepublic protests that greeted the Mauling of Unilag delayed the announcement ofAzazi’s sack. The delay enabled Azazi to get enough intelligenceinformation that Gusau is being drafted to replace him and a worried Azazi madeefforts to save his position. He spoke with both the President and some leadersof South South over the issue and was given the impression that the matter has been suspended.
Azazi’s problem with Jonathan had to do with the tactics ofarresting the security situation. Azazi believes that the sponsors of BokoHaram should be fished out and prosecuted for terrorism while Jonathan believesthat the names involved are too weighty that a political backlash could occurwhich is capable of affecting permutations for 2015.There is a reasoning that some of those involved may be handy in the next election. The names that frequently pop up in every security reports as sponsors of BokoHaram included a few from opposition party and majority from the ruling party.
Azazi had sought permission to quiz people like Buhari, Babangida, Ciroma, some serving and retiredsenators, ministers and governors who have links with Boko Haram but most ofthese people were those who helped Jonathan one way or the other in the past. Jonathanwants his NSA to tackle the footsoldiers of Boko Haram and leave the sponsorsalone. This position of President Jonathan was a source of frustration for Azaziand he used the occasion of the South South summit in Asaba to vent his frustration.
The security chiefs were finding it difficultcutting off the terrorists because the more they are arrested or killed, themore others join the group, and the sect has fragmented in such a manner thatthey have numerous recruitment, training and logistics centre and more centresare being opened up daily. Though the insurgents looks disorganised, it isobvious that the there are high level coordination of their operations even intheir fragmented cells. Malam Shekau, leader of the terrorists haveescaped arrest on four occasions in matters of minutes in amanner that evokes suspicion even when his territory was cordoned off by security agents. While some blamed Azazi for poor analysis of real time operations, others still believe that high level sabotage leaked information to the sect leader.
However, President Jonathan believes that with all thebillions budgeted for defence, the security agents have enough to rootout members of Boko Haram without touching any elite linked to them.There is fear within PDP that if their culpable members were arrested, theycould point embarrassing accusing fingers the manner Senator Ali Ndume recently did inhis affidavit before the Federal High Court in Abuja told the court that ” the Vice President of the Federal Republic of Nigeria, His Excellency Namadi Sambo is also aware that he was in contact with Jammatul Sunna -Walid Jihad-Boko Haram” This will attract public opprobrium to the party.
President Jonathan had always maintained a chummyrelationship with Aliyu Gusau despite the fact that Gusau was one of hisopponents in the PDP presidential elections. The president believes that Gusauhad a sort of magic wand which broke the security strangehold of the cabal that wanted to deny him the full exercise of his constitutional duties when late president Yaradua was sick. Gusau, athree time NSA was one of the few political appointees who wanted to save thecareer of late Senate President, Chuba Okadigbo when Obasanjo received reportsthat the former wanted to contest forpresidency in 2003, and thus marked Okadigbo out for victimization. Thisattempt to help Okadigbo earned Gusau a reprimand from his boss.
The appointment of Sambo Dasuki was a fast dribble on those who were waiting to crucify President Jonathan in the event of reappointment of Gusau. In addition to Dasuki being an in-law to Gusau, it was the later whoinfluenced his rehabilitation with the position of Chairman of Nigerian Security Printing and Minting Company in 2002. Gusau does not defer to Babangida, in fact he is never known for pretentions and has always engaged in frank discussions with all the military leaders he served in the past including Obasanjo. His relationship withthem was more of mutual respect than servitude. Therefore, if Dasuki were toswitch loyalty to Babangida, whom heserved as ADC, it would not diminish Gusau’s influence over his life.
The ouster of Azazi and replacement with Dasuki, was a clashof tactics on how best to curtail the insurgency. The changes would have been more sweeping but the political think tanks wanted to gauge the opinion of stakeholders before any further action. The president had alreadycharged the new NSA to reign in his people who are trying to destabilizehis government or a break up will ensue. Intelligence strategiescould differ but the bottom line is result. Dasuki, being a Sokoto prince is expected to use his knowledge of fellow northerners and muslims to analyse security reports and bring in strategies capable of checkmating the terrorists.
Those who still believe in Nigeria are hoping that the new helmsman comes up with fresh ideas to prevent another civil war. This is a narrow escape for Boko Haram sponsors because it is most likely they will never be named nor prosecuted but it may not be so for the footsoldiers because someone who knows them is coming for their head and the north will not blame Jonathan again for not doing enough to protect their region.
Mr. Godwin Ehigiamusoe is the Managing Director and Chief Executive Officer of LAPO, a leading development and microfinance organization with operations in Nigeria and Sierra Leone. An experienced microfinance practitioner and author, Ehigiamusoe who began his career as a rural cooperative officer has won several local and international awards among which are the Model Entrepreneur Award – Nigeria in 2008 and the Schwab Foundation’s Outstanding Social Entrepreneur for Africa Award in 2010. In this interview with Head of LAPO Corporate Communications, James-Wisdom Abhulimen, he speaks about the progressive growth and development of LAPO over the years, milestones, challenges and issues concerning microfinancing in Nigeria.
Excerpts.
What factors contributed to the establishment of LAPO?
Let me begin from the socio-economic background even before the beginning of LAPO. The prompting for the establishment of Lift Above Poverty Organization (LAPO) could be ascribed to a number of factors. First, was my ideological orientation as a young man. My years in the university in late 1970s coincided with the period of national enthusiasm and the desire to make Nigeria the greatest nation. At the beginning of the decade we came out of the civil war strong. In 1975, we had a very charismatic leader in the person of Murtala Mohammed and Nigeria was at the forefront of the final de-colonialization of Africa with massive support for liberation movements in Southern Africa. Nigerians were excited and universities were centres of movements for better Nigeria. This was the time I was in the university. In conjunction with others, I devoted much time beyond my studies to sensitize the students who were obviously potential elites on how to make the nation greater through adequate attention to the condition of life of the poor. The second factor was my involvement in the co-operative movement. My exposure to the cooperative movement began with my vacation job at the Cooperative Department in Benin City in 1980. I instantly believed as I still do that properly organized, cooperative societies are veritable institutional structures to improve the condition of members of low-income households particularly in rural communities. The final and perhaps the immediate factor was the economic crisis in the early 1980s which culminated in the implementation of the Structural Adjustment Programme (SAP) in 1986. The effect of the programme was harsh on the people. That was the setting when LAPO was initiated as a non-profit organization in late 1980s in Ogwashi-Uku, now in Delta State.
How did it begin?
LAPO began as a simple act. In the parish where I worshipped, I gave N100 each to three women, Felicia Monye, Monica Igwubuike and Obiageli Nwoko, a young lady. In the evening of every Afor market day, a major market in Ogwashi-Uku, I would move round to collect repayment of N10 per installment. It grew steadily. With steady repayment, a loan capital of N300 reached more women within few Afor days. The pace of development and the essential features of LAPO were influenced by my contact with the Grameen Bank of Bangladesh in 1989.
How did you get in touch with Grameen Bank?
It was quite interesting. I read about Grameen Bank in Business Times, a Nigerian business paper which I doubt is still on the newsstands. Reading about Grameen Bank doing what I was doing was quite fascinating. I wrote a few lines to Dr Muhammad Yunus as he was then known, highlighting what I was doing. There was a problem with posting the letter. In the features article on the bank in the Business Times, there was no street address. I simply addressed the letter to Dr. Muhammad Yunus, Dhaka, Bangladesh. Fortunately, a month or so later, I received a response with pamphlets and local newspaper cuttings on Grameen Bank. I was requested to forward a photocopy of the features article on the bank as published in the Nigerian business paper which I did. In addition, I wrote to thank Professor Yunus for the response and documents and requested for funding support. The letter was published in one of the early editions of Grameen Dialogue, a newsletter of Grameen Bank. Fortunately for me, a Programme Officer at the West Africa office of the Ford Foundation, Frank Hicks subscribed to the newsletter. He read the letter and requested for a meeting in Lagos. That was how the Ford Foundation provided the first external support for LAPO in July 1991. When LAPO won the Grameen Foundation’s Award for Excellence in Microfinance in 2006, we felt it was fitting to dedicate it to the Ford Foundation and we gladly did.
How were the early years?
Early years of the organization were challenging and equally exciting. Here was I, a young idealistic man, brimming with ideas and with grant support to implement the ideas. I felt it was the best thing that could ever happen to me. In addition, I had the fortune of attracting hardworking young men and women who with little skills in microfinance (none had any in Nigeria then anyway) were fantastic and highly committed. We made our mistakes, we corrected them and here we are today. The unique thing about LAPO is that it did not start as a project of any international development agency. Perhaps LAPO is one of the very few microfinance institutions, if not the only one in Africa which was not an international project but successfully scaled up to be what and where it is today.
Many people know LAPO as a non-profit organization. When did the institution transform into a microfinance bank?
Let me correct one issue. LAPO as a pro-poor development organization did not transform into a microfinance bank. What happened was that in 2010, the organization set up a microfinance bank and transferred the bulk of its microfinance operations to the new institutional vehicle. LAPO as a non-profit organization is still involved in the provision of a range of social and economic empowerment services particularly in rural communities. We came under regulation because we are convinced that the future and development of microfinance is in an appropriate and enabling regulatory environment. There were some misconceptions in a particular case, mischievousness about borrowers making deposits into the loan fund from which they take loans. This was and is a feature of traditional and non-profit thrift and credit schemes in rural Nigeria and indeed West Africa.
Let us look at the performance of LAPO. What will you consider are the achievements of LAPO?
The achievements of microfinance institutions like any poverty-reduction interventions are usually at two levels. In terms of service delivery such as how many people are benefiting and the volume of services delivered and second is the impact on the beneficiaries.
In terms of outreach and services, we have succeeded in creating a sustainable and regulated financial institution which provides a range of flexible financial services to a large number of people. LAPO’s client base rose from 355, 502 in 2010 to 518,187 in 2011, an annual growth rate of 46% which is remarkable in a challenging environment especially at a time when most microfinance institutions globally are recording negative growth. The client base rose to 593,111 in May 2012. The volume of loans disbursed to clients has also grown remarkably. LAPO disbursed N13 billion, about USD 83 million, in 2009. This rose to N21.9 billion in 2010 and N31.58 billion in 2011. This is an average growth rate of 56.5%. We target N50 billion as disbursement in the current financial year. This is an achievement when one considers the fact that the average loan size does not exceed N50, 000. As a regulated financial institution, we also provide savings opportunities for our clients.
In terms of social performance, how has LAPO fared?
LAPO has established people. It began as peoples’ organization. The organization has always been committed to finance-plus approach even before the current commendable focus on social performance management and standards. First, it was natural for LAPO to endorse the client protection principles. We have gone further to identify and implement specific steps to put the principles into effect. For example, the elements of LAPO pricing are printed and displayed across our branches. Our price is the lowest in the Nigerian microfinance market. This can be verified easily. As a part of the re-orientation of our credit officers, the training modules for new and existing staff have been reviewed to include client relationship management. In 2010, we changed the official designation of our Credit Officers (COs) to Client Support Officers (CSOs). In 2007, that is even before the discussion about social performance and client protection, LAPO as an NGO established a Client Relations Unit with regional client relationship officers appointed in 2011. To effectively address the concerns and grievances of clients, the telephone numbers of client relationship unit and top management are printed on the cover of client passbooks. In 2011, LAPO introduced In Touch programme whereby every member of the Management Team is required to work out of the branch office five days in a quarter. This has been very helpful in keeping touch with activities at the field level including how our client support officers relate with clients. These initiatives have been acknowledged and regarded as pacesetting even by our competitors. On transparency, LAPO obtained the services of Microfinance Transparency to determine its actual interest rates.
To enhance our reach to low-income households and effectively measure the impact of our services, LAPO has commenced the implementation of PPI which is a tool for measuring clients’ progress out of poverty.
One of the criticisms of microfinance is in the area of pricing. How do you rate LAPO on pricing?
It is natural for pricing to stir up emotions when low-income people are involved. Like most microfinance institutions, LAPO has received its fair share of criticisms on pricing. However, LAPO offers the cheapest loans in the Nigerian microfinance industry today. As I said earlier this can be verified easily. We have also developed a road map for a further reduction of our rates in the second half of this year and in 2013. We can do so because LAPO will progressively reap the benefit of scale and therefore plans to pass the benefits to our clients in form of lower interest rates.
I need to also highlight the fact that as a non-profit and even now as a regulated for-profit organization, the profits of LAPO have never been appropriated by anyone as dividends, This explains in part why LAPO has been able to scale up and expand services to many clients and also to provide vital social services such as scholarship awards to children of our clients. Speaking in general term, one understands the emotion attached to pricing in microfinance but what is not helpful is the tendency to demonize institutions and operators. How else does one explain why one journalist was quick to categorize all payments including savings under interest payment and used the figure to compute the rate of interest! She realized her error later. Good, but much harm had been done.
Are there other non-financial services LAPO offers?
As I noted earlier, LAPO is basically a finance-plus institution. We offer health and social empowerment services to our clients in collaboration with other institutions. We support the education of their children. In 2010, LAPO began to collaborate with a major insurance company to deliver microinsurance services to clients. Let me give details. In 2006, LAPO won the Grameen Foundation Excellence in Microfinance Award. The award came with a cash prize of $10,000. LAPO used the amount to set up a scholarship fund. Annually, LAPO makes contributions to the fund. The scholarship awards cover secondary education. We focus on secondary education because it is a known fact that children from low-income households drop out of the education system at that level. A total of 704 children have so far benefitted from the scholarship scheme managed by a Board led by Professor Christiana Okojie. In my over two decades of involvement in supporting women, I have come to realize that the greatest concern or aspiration of an average poor woman is the future of her children, which invariably means the education of her children. This is so because poor women believe and rightly too that they are poor because they did not have access to formal education.
In LAPO, we have come across numerous forms of injustice arising from customs and traditions which poor women suffer. A common one relates to property inheritance. LAPO in collaboration with LAPO NGO operates a Legal Aid Unit which has been helpful in supporting clients in distress.
Another area is the provision of insurance cover. Besides life insurance, our clients are provided with insurance for fire in the market place, a risk they usually face. Another policy that has excited and helped our clients is the medical cover for complications arising at child birth. Many poor women have been abandoned by their husbands in hospital maternity wards for lack of funds to meet medical expenses. LAPO has taken this burden away from them and they are very happy about it.
What factors do you ascribe to LAPO’s institutional strength?
There are several factors, First is our drive for excellence. We seek to learn. As I noted earlier, LAPO was not established as a project of an international development agency. We never had a well formulated business plan at the beginning. We grew through learning. While we learn, we innovate greatly as well. Periodically we do institutional review and renewal to address emerging challenges. For instance the quality of our Board is good. In diversity of skills and experience, it is superb. This was noted in the Central Bank of Nigeria’s comprehensive examination report in September 2011. We have in twenty years built strong service delivery systems and structures.
Our institutional performances are reflective of our operating systems. In the last examination by the Central Bank of Nigeria, LAPO scored 84 points on CAMEL assessment. This shows clearly that LAPO is an outstanding financial institution. We settled for Deloitte Akintola Williams as our external auditors. Looking ahead, we have just completed a 5-year strategy formulation process facilitated by Roland Berger, a renowned international strategy consulting firm. The pillars of the strategy are People, Technology, Products and Performance management.
What have been the challenges along the way?
Of course, there have been challenges
Such as?
There was the challenge of enforcing credit discipline. Rightly or wrongly, this is a prevalence of poor loan repayment culture in our environment. We were able to address this about twelve years ago.
Perhaps the most challenging issue was around getting the right Information Management systems. Most microfinance institutions have also tasted the bitter pill of automating data processing and reporting systems. At a point when we tried to acquire software, there were few untried ones in market. We did not also get the right technical support. The worst part of it was that one of the guys we turned to assist in this regards used this particular challenge to hurt us. Very mischievous.
Let us look at the microfinance industry in Nigeria. How is the industry faring?
Like in most countries, growing a microfinance sector could be very challenging. The challenges are usually regarding policy and regulation, operating capacity and funding. Nigerian microfinance sector has had its fare share of these challenges. The good news however is that all stakeholders particularly the regulators and the operators have shown sufficient commitment to addressing the challenges. For instance, there is the certification programme which seeks to address skills gap in the industry. Hopefully, the proposed re-financing facility will address the challenge of funding. As I have always said, I am optimistic. I see a vibrant sector emerging in the next few years. Here is a nation with over 160 million exceptionally enterprising people. This is a fertile ground for micro-lending to thrive. To grow the sector, I strongly feel that commercial banks must show some commitment not in the form of establishing microfinance banks. No! It should be in the form of building mutually beneficial linkages with microfinance banks. In some other nations, for example, India, there is a statutory requirement which makes it mandatory for commercial banks to allocate certain percentage of their loan assets to the rural economy. Since most commercial banks do not have the appropriate structures to do this, they rely on strong microfinance entities through on-lending and agency arrangement. This approach is required in Nigeria if we are to achieve meaningful financial inclusion.
Global microfinance has experienced some challenges in recent years. What is your perspective on this?
To understand the current state of microfinance and its apparent challenges requires an explanation of its history and issues which defined its growth. I am of the sense that the challenge in microfinance has its root in its target; the poor if you like. Two is what I may call its over promise and lastly but most importantly is the commercialization of microfinance which began at the turn of the century. Anything around the poor invokes a great deal of emotions and sentiments. When you mention the poor, people readily think of charity. So providing financial services to the poor on terms which ensure institutional sustainability is bound to stir up emotions. We have seen that in some parts of Asia with the often exaggerated stories about microfinance-induced suicide cases. Other institutions globally have received some punches as well. It is comforting to know of new studies which indicate that suicide incidences are even higher among non-microfinance clients in some parts of India. Even with such scientific conclusions, people will still be sentimental about microfinance. Second, I think that in the celebration of power of microfinance as a poverty alleviation tool, the impression was created that microfinance would end poverty. Many people are therefore looking forward to end of poverty instead of assessing the enormous impact microfinance has made on poverty reduction. Lastly is the increasing commercialization of microfinance. This is ironical. Those who argued for taking microfinance away from the realm of charity pointed at the fact that if microfinance were to make adequate impact on poverty, grants from donor agencies would be insufficient. They argued that only commercial funds would be adequate. Today key performance indicators are now financial sustainability indicators. The good news however is that global microfinance leaders and institutions are taking steps to ensure that financially sustainable microfinance banks and institutions work for the poor. Recently, key stakeholders in microfinance launched what have been termed ‘Universal Social Performance Standards’ which if complied with, will refocus microfinance on clients and their welfare.
Are you excited over the success of LAPO?
No. Not exactly in the manner you think. It is understandable. I have been a part of the organization right from the beginning. I have seen it grow gradually over the years. It is therefore impossible for me to see the spectacular growth or success which others usually see. However, I am glad to see my colleagues, young Nigerians, traverse rural communities and urban slums to improve the lives of fellow Nigerians with our services. It thrills me.
What is the future of LAPO?
As I said earlier, we have just concluded a growth strategy which is comprehensive and formulated around a number of pillars. We seek to reach a larger number of low-income Nigerians with a wide range of innovative financial services.
Information recently made available to 247ureports.com indicates that the attack on Kano yesterday night was a “coordinated and well planned attack” that was meant to look like the January 2012 attack. The communities selected by the suspected Boko Haram group saw the skies light up in fire as the men of Boko Haram and the Joint Task Force exchanged gun fire through the night yesterday. They also witnessed over 20 explosions.
Residents of the communities state that the attack brought back fears of the last January 2012 black Friday attack to the fore. They added that the attack was well coordinated and planned. The Joint Task Force [JTF] were over matched by the superior and/or sophisticated firepower of the Boko Haram. Some of the residents living within Goron Dutse lamented that they saw some of the JTF operatives in apprehension as the intensity of gun battle heightened. “It was clear the Boho Haram boys were smarter and more couragious“, stated aone of the residents who went on to say that nearly all of the attackers escaped before the security men arrived.
The police denies it was outsmarted by the Boko Haram.
OPERATIONAL VEHICLES OF THE EXTREMISTS
According to Police Commissioner Ibrahim Idris “the places attacked includes; Dala Police Division, Jakara Police Barracks, Goron Dutse Prison Yard, 52 Squadron Challawa, Junior Secondary School Sabuwar Doka Ungogo LGA. While he also asserts that 17 Boko Haram members were killed, 3 arrested, 5 assault rifles recovered, 14 IEDs defused, 220 live ammunition recovered, 5 motor vehicles recovered, 3 motor cycles recovered. Other things according to the Police Commissioner which was recovered includes N100,000 cash recovered, large quantity of drugs and syringes recovered and according to him the terrorists were numbered about 30,” the Police Commissioner said.
The Police Commissioner also said that one police Corporal was killed at Goron Dutse.
Meanwhile the JTF in their Press Release this moring has narrated their own story.
According to the JTF: “At about 1810Hrs yesterday, 26 June 2012, multiple Improvised Explosive Devices were detonated by members of the terrorist sect at Goron Dutse and Dala general areas of Kano akin to the 20 January 2012 attacks in the state. The terrorist elements eventually gained access to the Dala Police Division outpost were they killed a Police Corporal and were about to loot the arms store of the Police division before the swift response of security forces.
On sighting operatives of the Joint Task Force (JTF), the terrorists attempted to flee the area but were engaged by troops of the JTF. After the intense gun battle, seven of the terrorists were killed and several wounded. Arms and ammunitions were recovered from them as well as IEDs which as at this moment are still being discovered and detonated by the Police Anti Explosive Ordinance Unit safely. Area search is still on going to apprehend those with gunshot wounds as well as other unexploded IEDs. The JTF appeals to members of the public to report immediately, any person seen with any form of wound or any suspicious package for prompt action.”
Meanwhile, two explosionswere heard in Nasarawa Local government this morning. A security source pegged the explosion “a controlled detonation” by security agents.
The attention of the general public is hereby drawn to the latest desperate and despicable antics employed by members of the terrorist sect aimed at causing public disorder to erode the peace and calm of Kano State. At about 1810Hrs yesterday, 26 June 2012, multiple Improvised Explosive Devices were detonated by members of the terrorist sect at Goron Dutse and Dala general areas of Kano akin to the 20 January 2012 attacks in the state. The terrorist elements eventually gained access to the Dala Police Division outpost were they killed a Police Corporal and were about to loot the arms store of the Police division before the swift response of security forces.
On sighting operatives of the Joint Task Force (JTF), the terrorists attempted to flee the area but were engaged by troops of the JTF. After the intense gun battle, seven of the terrorists were killed and several wounded. Arms and ammunitions were recovered from them as well as IEDs which as at this moment are still being discovered and detonated by the Police Anti Explosive Ordinance Unit safely. Area search is still on going to apprehend those with gunshot wounds as well as other unexploded IEDs. The JTF appeals to members of the public to report immediately, any person seen with any form of wound or any suspicious package for prompt action.
Gentlemen of the press, you would recollect that a couple of days ago, members of the terrorist sect staged a prison break in Damaturu, the capital of Yobe State were about forty inmates were freed. As efforts are on to track the fleeing inmates, another situation was averted by the swift response of the JTF in Kano yesterday as the JTF believes that the intent of the terrorists was to first destabilize the closest reinforcement to the Goron Dutse prisons and then storm the prison for a possible prison break. This attempt was frustrated by the JTF.
ABANDON OPERATIONAL VEHICLES BY THE TERRORIST
This latest incidence once again reveals that members of the terrorist’s sect would stop at nothing to destabilize the peace of the state and commercial activities which are slowly picking up. All efforts must collectively be on deck to root out these terrorists. The JTF once again thanks the good people of Kano state for the cooperation it has been receiving from them. The JTF urges the general public to continue to cooperate with it in the area of providing information on suspicious persons within the communities and to remain vigilant to apprehend terrorists who may be lurking around to drop IEDs. It will be recalled that the same terrorist gangs having failed in their attempt to destabilize Kano earlier went and planted IED in a mosque in Fagge just before last Friday’s prayers with an intent to invoke religious conflicts among the adherents of the two major religions thereby achieving their aim of destabilizing the state. The JTF will continue to treat all information given with the utmost confidentiality.
