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6 WEDNESDAY, MAY 20, 2015 • THISDAY<br />

PAGE SIX<br />

IN RENEWED OFFENSIVES, BOKO HARAM KILLS 22 PERSONS, INJURES MANY IN ADAMAWA<br />

a bomb at the weekly cattle<br />

market in Garkida town<br />

resulting in the killing of<br />

10 persons on the spot and<br />

injuring several others who<br />

had been taken to the hospital<br />

for treatment.<br />

The eyewitness said that the<br />

bomb blast had caused serious<br />

apprehension as many feared<br />

that more of such attacks might<br />

be underway.<br />

He said he believed that the<br />

Boko Haram insurgents had<br />

regrouped and recruited a large<br />

number of suicide bombers<br />

to carry out future attacks on<br />

the state.<br />

There are however varying<br />

accounts of the attack.<br />

While some said a suicide<br />

bomber pretending to be<br />

a potential customer at the<br />

market detonated the bomb,<br />

another version had it that the<br />

bomb was actually planted at<br />

the gate of the market.<br />

Another eyewitness said that<br />

the incident took place at about<br />

2pm when the market was at<br />

the peak of activities leading<br />

to high casualties.<br />

Adama Mohammed, a<br />

resident of the town who<br />

narrowly escaped the blast,<br />

said that many of the victims<br />

including the dead and the<br />

injured had been evacuated<br />

to hospitals as activities in the<br />

market had come to a standstill.<br />

Confirming the incident, the<br />

factional Speaker of Adamawa<br />

State House of Assembly, Jerry<br />

Kumdisi, who hails from<br />

the area, noted that many<br />

persons had lost their lives<br />

in the attack.<br />

Gombi was one of the seven<br />

local government areas overrun<br />

by the Boko Haram insurgents<br />

in Adamawa State last year.<br />

It was in Gombi town that<br />

a German working with the<br />

state government's vocational<br />

school was abducted before<br />

he was finally rescued early<br />

this year.<br />

Efforts to get the Army<br />

Public Relations Officer of the<br />

23rd Army Brigade, Captain<br />

Nuhu Jafaru, proved abortive<br />

as at the time of filing this<br />

report although some military<br />

sources confirmed the attack.<br />

However, the state police<br />

command confirmed that seven<br />

people were killed from the<br />

bomb blast detonated by a<br />

suicide bomber in Garkida<br />

town.<br />

The state command's Police<br />

Public Relations Officer,<br />

Abubakar Othman, a Deputy<br />

Superintendent of Police<br />

(DSP), disclosed that a suicide<br />

bomber detonated a bomb at<br />

the Garkida cattle market in<br />

Garkida town which resulted<br />

in the death of seven persons<br />

including the suicide bomber.<br />

He said many people<br />

sustained different degrees<br />

of injuries from the blast as<br />

some of them were said to<br />

be in critical condition.<br />

And in what appears as<br />

a renewed wave of attacks,<br />

about 12 persons have been<br />

reportedly killed by the Boko<br />

Haram insurgents in Ajiya<br />

Wagga town of Madagali<br />

Local Government Area of<br />

Adamawa State.<br />

Reports indicate that the<br />

insurgents were determined<br />

to stage a comeback in their<br />

struggles to take control of<br />

the area as they continued<br />

their onslaught on villages<br />

and towns of Madagali Local<br />

Government area of the state.<br />

According to the reports, the<br />

insurgents started by launching<br />

an attack on Sabongari town of<br />

Madagali leading to the death<br />

of one person, while six women<br />

were abducted on Saturday and<br />

immediately advanced to attack<br />

Ajiya Wagga town, same night<br />

which resulted in the killing<br />

of 12 persons, while many<br />

sustained varying degrees<br />

of injury as they scampered<br />

for safety.<br />

A fleeing resident of Ajiya<br />

Wagga, Mr. Warga Sunday, said<br />

the gunmen struck the town<br />

in the middle of the night on<br />

Saturday while most of the<br />

residents had gone to bed and<br />

started shooting sporadically<br />

and in the process killing many.<br />

"I saw many dead bodies<br />

lying as I fled into nearby bush<br />

to escape from the insurgents,<br />

who were advancing in full<br />

force.<br />

"Many people are still in the<br />

bush as they fear another attack<br />

by the gunmen even as some<br />

fled to neighbouring villages,"<br />

Sunday said.<br />

He however called on<br />

government to expedite action<br />

that can crush the insurgents.<br />

He noted that many of the<br />

villagers were just returning<br />

from their place of refuge<br />

having been chased out of<br />

the town last year by the<br />

insurgents.<br />

Another resident, who<br />

identified himself as Musa,<br />

said many villagers have<br />

sustained various degrees of<br />

injury and are being evacuated<br />

to hospitals for proper medical<br />

attention.<br />

He noted that the insurgents<br />

stormed the village around<br />

midnight on Saturday and<br />

started killing innocent people<br />

leading to the death of about<br />

12 people.<br />

Confirming the incident, the<br />

Chairman of the local council,<br />

Maina Ularamu, called on<br />

government to provide more<br />

security in the area in order to<br />

prevent the influx of fleeing<br />

insurgents to the area.<br />

However when contacted,<br />

spokesman of the Adamawa<br />

State Police Command,<br />

Othman Mohammed, a<br />

Deputy Superintendent of<br />

Police (DSP), said the police<br />

were yet to receive an official<br />

report of the incident.<br />

The insurgents had last<br />

weekend, recaptured Marte<br />

town in northern Borno<br />

State, just as a suicide bomber<br />

detonated a bomb at the<br />

Damaturu motor park killing<br />

seven persons.<br />

The President-elect,<br />

Muhammadu Buhari, had<br />

last Monday expressed<br />

dissatisfaction that the army<br />

had not been able to crush<br />

the Boko Haram insurgency,<br />

remarking that the recent gain<br />

of routing them (terrorists) was<br />

with the aid of South African<br />

mercenaries.<br />

He declared that it is<br />

as shameful as it was<br />

unacceptable.<br />

He has nine days to assume<br />

office as the Commander-in-<br />

Chief and take charge.<br />

GOVS, OKONJO-IWEALA DISAGREE ON EXCESS CRUDE ACCOUNT<br />

This is the first joint<br />

meeting of all the governors<br />

since May 24, 2013, when<br />

the governors’ crisis broke<br />

out, following the election<br />

that produced the Rivers<br />

State Governor, Chibuike<br />

Amaechi, with 19 votes to<br />

beat Jonah Jang of Plateau<br />

State who polled 16 votes.<br />

Reading the resolution of<br />

the meeting at about 1.08 am,<br />

the Chairman of the forum,<br />

Governor Amaechi, said: "In<br />

the light of the fact that<br />

funds in the Excess Crude<br />

Account were last disbursed<br />

in May 2013, there is need<br />

for the Minister of Finance<br />

and Coordinating Minister<br />

for the Economy, Dr. Ngozi<br />

Okonjo-Iweala, to provide<br />

explanation for accruals<br />

to the account from June<br />

2013 to April 2015, which<br />

is estimated at over $20<br />

billion."<br />

The governors in the<br />

communiqué said: "We<br />

are hereby reconciled and<br />

united as a single united<br />

umbrella association of the<br />

36 state governors of Nigeria<br />

regardless of party or region."<br />

In view of this, Amaechi<br />

said in the communiqué that<br />

Governor Abdullazeez Yari<br />

of Zamfara State has been<br />

elected as the Chairman of<br />

the NGF by consensus for<br />

one year period of May 2015<br />

to May 2016.<br />

The governors also<br />

congratulated the Presidentelect,<br />

Muhammadu Buhari,<br />

and commended the outgoing<br />

President Goodluck Jonathan<br />

for conceding defeat.<br />

Amaechi announced that<br />

there would be a retreat<br />

in June for the incoming<br />

governors, adding that it<br />

is aimed at equipping the<br />

new and returning governors<br />

with knowledge of global<br />

best practices for running<br />

their offices.<br />

The communiqué further<br />

said that the NGF would<br />

establish an academy to<br />

be known as the "NGF<br />

Leadership Academy",<br />

which would be responsible<br />

for capacity building for<br />

governors and other officials<br />

holding public office. The<br />

academy will be overseen<br />

by the NGF secretariat.<br />

In her response to the<br />

demand for an explanation<br />

on the $20 billion accruals to<br />

the Excess Crude Account,<br />

Okonjo-Iweala described as<br />

strange demands by the<br />

governors for an explanation<br />

on alleged missing $20 billion<br />

from the Excess Crude<br />

Account (ECA).<br />

In a statement issued last<br />

night by her Special Adviser,<br />

Mr. Paul Nwabuikwu, the<br />

minister affirmed that the<br />

governors’ allegation was<br />

totally strange because<br />

the Federation Account<br />

Allocation Committee<br />

(FAAC) meets every month<br />

“and the ECA is discussed<br />

at every session with all<br />

the state commissioners of<br />

finance present”.<br />

“Nothing is hidden.<br />

At these meetings, the<br />

Honourable Minister of<br />

State, who is the Chair of<br />

FAAC announces the balance<br />

in the ECA, which is then<br />

discussed. So governors<br />

who want any information<br />

about the ECA should<br />

ask for details from their<br />

commissioners who should<br />

have the records of what was<br />

discussed and agreed upon,”<br />

Okonjo-Iweala stressed.<br />

According to her, details of<br />

the ECA are also published<br />

every month along with the<br />

allocations to the three tiers<br />

of government.<br />

“The reference to June<br />

2013 in the statement<br />

is probably because the<br />

National Economic Council<br />

last met in May 2013. But<br />

this is immaterial because<br />

the FAAC meetings during<br />

which the ECA and similar<br />

issues are discussed have<br />

generally held regularly<br />

every month.<br />

“It is interesting that<br />

Governor Rotimi Amaechi<br />

of Rivers State, who was<br />

reported to have read the<br />

communique on behalf of<br />

the governors made a similar<br />

unsubstantiated allegation<br />

in November 2013 that $5<br />

billion was missing from<br />

the ECA.<br />

“We subsequently showed<br />

with facts that not only was<br />

the amount not missing,<br />

Rivers State received N257.6<br />

billion from the Federation<br />

Account between January<br />

and October 2013, the second<br />

highest among the states,<br />

of which N56.2 billion from<br />

the Excess Crude Account<br />

was a part.<br />

“In the interest of<br />

transparency and<br />

accountability, and to throw<br />

more light on this issue, the<br />

Federal Ministry of Finance<br />

will publish details of the<br />

Continued on page 7<br />

CBN RETAINS INTEREST RATE AT 13%, HARMONISES CRR AT 31%<br />

factors were largely transient<br />

and outside the purview of<br />

monetary policy.<br />

The need to maintain<br />

uniformity caused the MPC<br />

to also harmonise the CRR of<br />

the public and private sectors.<br />

In the past, while the private<br />

sector CRR was at 20 per cent,<br />

the CRR on public sector funds<br />

was at 75 per cent. The latest<br />

MPC decision means that both<br />

CRR have been unified at 31<br />

TOP GAINERS NGN NGN %<br />

BETAGLASS 3.38 36.38 10.2<br />

SKYEBANK 0.23 2.61 9.6<br />

VONO 0.08 0.98 8.8<br />

MAYBAKER 0.10 1.78 5.9<br />

WEMABANK 0.05 1.05 4.5<br />

TOP LOSERS NGN NGN %<br />

CAVERTON 0.35 3.35 9.4<br />

AGLEVENTIS 0.08 1.54 4.9<br />

PORTPAINTS 0.17 3.47 4.6<br />

RTBRISCORP 0.04 0.88 4.3<br />

TOTAL 6.39 150.51 4.1<br />

HPE Nestle Nig Plc ₦905.02<br />

Volume: 356.234 million shares<br />

Value: N4.149 billion<br />

Deals: 4,700<br />

As at yesterday 19/05/15<br />

See details on Page 48<br />

per cent.<br />

Some economists and<br />

financial market operators<br />

anticipate that the MPC<br />

decision would help inject<br />

some liquidity back into the<br />

banking system, even as they<br />

noted that banks that are more<br />

reliant on public sector deposits<br />

would be the key beneficiaries<br />

of this additional injection of<br />

liquidity.<br />

Addressing journalists at the<br />

end MPC meeting in Abuja,<br />

Mr. Emefiele explained that<br />

the 31 per cent CRR is just a<br />

composite rate.<br />

Emefiele said the action<br />

would enable the central<br />

bank achieve the efficacy of<br />

the CRR rate regime.<br />

He said the MPC members<br />

considered that the current<br />

discriminatory CRR on public<br />

and private sector deposits<br />

had not only constrained<br />

the policy space but could<br />

inspire moral hazard by<br />

private market participants.<br />

Consequently, he said they<br />

noted that while additional<br />

tightening measures may not<br />

be appropriate now to avoid<br />

overheating the economy, the<br />

harmonisation of the CRR<br />

was imperative in order to<br />

curb abuses and improve the<br />

efficacy of monetary policy.<br />

"What we've done is to just<br />

have a composite rate so there's<br />

no need for us to have CRR for<br />

both private and public sector<br />

deposits. The 31 per cent is<br />

just a composite rate which<br />

just brings it together and<br />

there's no need for anybody to<br />

continue to wonder if they are<br />

taking CRR based on public<br />

sector or on private sector,"<br />

he said.<br />

Furthermore, the significant<br />

rising trend in credit to<br />

government was regarded<br />

as potential headwinds to<br />

growth with negative spillovers<br />

to the already elevated<br />

lending rates, credit to the<br />

private sector and aggregate<br />

domestic investment including<br />

inflationary pressures.The<br />

committee expressed deep<br />

concern over the lackluster<br />

performance of the external<br />

sector arising from a number<br />

of significant global shocks."<br />

Continuing, Emefiele<br />

pointed out that the continued<br />

glut in crude oil supplies<br />

amidst softening prices,<br />

anchored by sluggish global<br />

output expansion could further<br />

threaten foreign exchange<br />

earnings and accretion to<br />

external reserves over a much<br />

longer period. He noted that<br />

a near- term rally in oil prices<br />

was further undermined<br />

by the diminishing market<br />

power of the Organisation<br />

of the Petroleum Exporting<br />

Countries (OPEC).<br />

"In the light of these<br />

developments, therefore,<br />

the committee stressed the<br />

need for proactive measures<br />

to protect the reserve buffer<br />

to safeguard the value of<br />

the domestic currency and<br />

engender overall stability of<br />

the banking system. It was,<br />

however, noted that monetary<br />

policy is gradually approaching<br />

the limits of tightening and<br />

would, therefore, require<br />

complementary fiscal and<br />

structural policies," he added.<br />

Responding to questions<br />

from journalists on insinuation<br />

that the central bank had<br />

restricted forex transactions,<br />

he said: "Let me say that there<br />

isn't really any forex restriction.<br />

What we've done based on<br />

what had happened in the<br />

market in the last couple of<br />

months is to eliminate the<br />

activities of round trippers or<br />

people who are front-loading<br />

the foreign exchange demand<br />

and this has culminated in<br />

a couple of policy circulars<br />

that were released by the CBN<br />

to Nigerian banks about the<br />

way they should operate in<br />

the foreign exchange market.<br />

"Some of those measures,<br />

as I keep saying were because<br />

of the current situation which<br />

we found ourselves, and the<br />

vulnerabilities we have been<br />

exposed to as a result of the<br />

drop in crude prices, we would<br />

continue to monitor some of<br />

those policies that were put in<br />

place and as we see that things<br />

are moderating and things are<br />

getting better-naturally what<br />

we would do is to revisit them,<br />

review them so the market<br />

can operate even better than<br />

it is right now."<br />

Speaking in a telephone<br />

interview with THISDAY, an<br />

Executive Director at Diamond<br />

Bank Plc, Mr. Abdulrahman<br />

Yinusa said the harmonisation<br />

of the CRR would help in<br />

simplifying cash reserve<br />

requirement computation by<br />

banks. He however argued<br />

that the monetary policy action<br />

would "discourage private<br />

sector initiative because it<br />

doesn't matter again whether<br />

it is private or public sector<br />

fund."<br />

On her part, the Head of<br />

Research/Chief Economist<br />

Africa, at Standard Chartered<br />

Bank, Razia Khan, argued that<br />

the MPC decision would result<br />

in "an eventual tightening, the<br />

immediate impact on market<br />

liquidity will depend on the<br />

ratio of private sector to public<br />

sector deposits in the Nigerian<br />

banking system."<br />

"Our calculations – based on<br />

data available from February,<br />

suggests a rough 73:27 ratio<br />

of private sector deposits to<br />

public sector deposits. If this<br />

still holds true, (and a lot has<br />

changed since February) we<br />

expect to see the injection of<br />

some liquidity back into the<br />

banking system. Banks that<br />

are more reliant on public<br />

sector deposits will be the key<br />

beneficiaries of this additional<br />

injection of liquidity," Khan<br />

added.<br />

Also, the Chief Executive<br />

Officer, Financial Derivatives<br />

Limited, Mr. Bismarck Rwane,<br />

said the MPC members<br />

acknowledged that they<br />

had reached the peak of its<br />

monetary policy tightening.<br />

He urged the fiscal authorities,<br />

especially the incoming<br />

government to initiate policies<br />

that would engender job<br />

creation and inclusive growth<br />

necessary to complement the<br />

monetary policy stance.<br />

Similarly, the Executive<br />

Director of Sterling Bank Plc,<br />

Abubakar Suleiman, said the<br />

process of managing the cash<br />

reserves ratio previously was<br />

very confusing, adding that a<br />

unified rate makes a lot sense.<br />

He described the move as a<br />

tactical easing.<br />

He noted that the central<br />

bank had done a lot in<br />

protecting forex reserves so<br />

as to encourage foreign direct<br />

investments.

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