“Now that the National Assembly is making a law to create additional states for the people of Southeast, it is reasonable, fair and timely to create additional local governments for Lagos State.”
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Jaiz Bank in succession crisis as two MDs emerge
There appears to be a brewing boardroom bickering at Jaiz Bank Plc over the tenure of the current Managing Director and the appointment of a successor.
The two claimants are the current Managing Director, Mallam Hassan Usman and a new candidate, Mr. Mohammed Shaheed Khan, who was appointed by the board to succeed Usman.
It was alleged that due to COVID-19 pandemic which ravaged the bank’s board, the current MD fought back to regain his seat while a new appointment was subsisting.
Reacting to the alleged infighting among directors, a top official of the bank said there was no rift on the board of Jaiz Bank.
“In fact, the board of directors held its 34th board meeting with 100 per cent attendance on the 27th of October 2020. This was followed by a successful Extra Ordinary General Meeting (EGM) the following day which was presided over by the Chairman, Dr Umaru Mutallab,” the source said.
Regarding the offer of appointment to Khan, the source said the offer was given subject to the approval of the Central Bank of Nigeria (CBN). The apex bank approved terms different from what was offered to Khan and the board consequently decided not to proceed with the process of appointing him as managing director of the bank.
According to investigation, both the current managing director of the bank and the new candidate have been caught in the bitter boardroom politics of Jaiz Bank.
Findings confirmed that some shareholders of the bank have sharp disagreement with some directors and board members.
It was gathered that some board members took advantage of COVID-19 infection of some of their colleagues to gain upper hand to reverse the decision of the bank to hire a new Managing Director/ CEO.
The boardroom crisis may cost the bank about N2 billion being the six-month salaries of Khan at $175,000 per month.
Investigation showed that the new candidate, Khan (who is a foreigner) was offered a letter of appointment on August 3, 2020.
The Central Bank of Nigeria (CBN) also on 17th September 2020 confirmed that it has no objection to Khan’s choice.
A top source, who spoke in confidence, said: “We have a boardroom crisis at hand. The current MD/CEO, Mallam Hassan Usman, was doing well but some directors insisted on change. They asked him to proceed on retirement and set machinery in motion for the recruitment of a new MD/CEO.
“Along the line, some board members who wanted the MD to retire became ill. Some aggrieved shareholders and board members held an Emergency Board meeting to nullify the retirement notice of the current MD/CEO.
“This is the challenge at hand. We are expecting the intervention of the CBN and restoration of peace to the board.
“The new candidate has written the bank to demand N2 billion as salaries for six months at US$175,000 per month. We may be drawn into a prolonged legal battle.”
Another source in the bank said: “I think the problem at hand was borne out of mutual suspicion among board members.
“Some board members are nursing fears that they may be edged out by certain powerful shareholders. We are really in trouble. And this is the first Islamic bank in Nigeria. Business interest is overriding the fear of Allah.”
A letter to the Chairman of the board of Jaiz Bank, Alhaji (Dr) Umaru Mutallab and the CBN by Khan’s counsel, A. U. Mustapha (SAN) gave insights into how Jaiz ran into crisis.
The letter, dated 26th October, 2020, was also copied the President of the Chartered Institute of Bankers of Nigeria (CIBN) and the Secretary of Jaiz Bank.
The letter said: “Khan, who has a Fintech background, strong network and profile, was approached by Jaiz Bank because the current Managing Director was retiring, and the Bank needed transformation (both cultural and digital) to compete with other digital focused Islamic banks and incumbent banks.
”After rigorous and exhaustive interviews, Khan was offered a letter of appointment as managing Director/CEO of Jaiz Bank on the 3rd of August 2020 and the same letter was duly accepted. Thereafter, a Contract of Employment was drawn between Jaiz Bank and Khan.
”On the 7th of August 2020, Jaiz Bank wrote to the Central Bank of Nigeria (CBN) requesting for its approval to appoint Khan as its MD/CEO.
“The CBN replied by its letter dated 14th August requesting for further clarifications.
“On the 21st of August 2020, Jaiz Bank wrote another letter to CBN where it acknowledged CBN’s letter dated 14th august 2020, stating “we will strongly request your kind consideration and approval for the appointment of Muhammed Shaheed Khan as managing Director Designate.”
“In response to the passionate request, CBN, by its letter dated 17th September 2020 CBN formally confirmed that it “has no objection to the appointment of Mohammed Shaheed Khan as Managing Director/CEO for two years from the date of his appointment.
“Following his appointment as the MD/CEO of Jaiz Bank, Khan completed all formalities and resigned from his previous job and his resignation was duly accepted by the board of his former employers.
“He withdrew his children from their current school, donated/sold his furniture, secured a smaller accommodation for his close relations and thereafter, started working remotely for Jaiz Bank.
“On the 3rd and 11th of September, Khan attended to official electronic mail from the Company Secretary “Executive Directors would like to have your input on a proposal to secure some IT infrastructure, details of which will be shared with you shortly”;
”But the current outgoing Managing Director of Jaiz Bank, Mallam Hassan Usman, on the 25th of September 2020, after an emergency board meeting, informed Khan that Jaiz allegedly cannot proceed with the appointment.
“Khan replied by claiming that he had been in contact with the Chairman and Company Secretary as the Chairman had no knowledge of the alleged termination of his appointment and that as an outgoing Managing Director, he lacks the authority to send the correspondence.
“On 30th September 2020, Khan wrote the Chairman, Board of Directors of Jaiz Bank, Alhaji (Dr) Umaru Mutallab CON, FCA, and the Company Secretary that he has completed all the formalities and as per the offer letter and he will be joining Jaiz Bank on October 2nd 2020.
On the same 30th September 2020, Alhaji (Dr) Umaru Mutallab CON, FCA, Chairman; Board of Directors of Jaiz Bank replied back “We look forward to your resumption on the 2nd of October officially as MD designate while the visa formalities are being finalized. On behalf of the Board, we look forward to seeing you soonest in person in Nigeria.”
Source: The Nation
News
National Assembly urged to create more councils for Lagos
National Assembly urged to create more councils for Lagos
National Assembly has been urged to create more local governments for Lagos State, to meet its current population, social, economic and environmental challenges.
The Red Chamber is also advised to enact laws granting the state a special status for being the country’s commercial city and economic melting pot.
Renowned socio-political activist and critic, Chief Adesunbo Onitiri, made the demands in a statement in Lagos.
The activist recalled that in 1976 when the military government created states and local governments, Lagos and Kano states had 20 councils each.
“Later, Kano State councils increased to 44, while Lagos councils remained at 20. When the Abacha government carved out Jigawa State out of Kano State, Jigawa got 27 local governments, while Kano was still having 44 councils.
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“It is an injustice for Lagos State to remain with only 20 local governments till today, despite its gigantic social, security and economic problems,” Onitiri said.
He recalled that when the then Governor of Lagos State, now Nigeria’s President, Asiwaju Bola Ahmed Tinubu, created 37 additional councils in 1999, Chief Olusegun Obasanjo, then President, seized Lagos State federal allocations for two years.
He said Lagos State through the then Attorney-General, Prof. Yemi Osinbajo, sued the Federal Government, and the state government won the case against Federal Government at the Supreme Court.
He regretted that till now, National Assembly has not done the needful to enact a law to accommodate the 37 local governments created by Lagos State Government.
News
FG warns LG chairs misusing FAAC funds will face jail term
FG warns LG chairs misusing FAAC funds will face jail term
The Federal Government has threatened jail terms for Local Government Area chairmen who tamper with Federation Accounts Allocation Committee funds.
Lateef Fagbemi (SAN), the Attorney General of the Federation and Minister of Justice, made the announcement yesterday at the Human Rights Writers Association of Nigeria’s 17th annual lecture event in Abuja.
He stated that none of the chairmen have immunity and will be imprisoned if they tamper with funds designated for the development of their areas. Fagbemi stated, “We have a situation on our hands; I know that it is still there; the conduct of elections must be done by the states.”
“But the distinction is this: don’t forget, the governors have immunity, the local government council chairmen or councillors, they have no immunity, so they have to choose between dealing with the funds of the local government as they like and risking going to jail. The choice is theirs (LG chairmen).
“If they want to tamper with these funds and end up in jail, it is their choice. If they want to write their names in letters of gold, activities like construction or road upgrades must be returned to the local government. They don’t all have to come to Abuja.
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“If they stay at the local government, we will be able to reduce the level of insecurity that we have in Nigeria today. What obtains offshore is that the security agents are able to perform optimally because of information that comes to them from members of the public and usually it is from the grassroots.”
The minister said the federal government opted to use the supreme court to achieve local government autonomy due to the challenges it will face at state assemblies, stressing that any speaker who would have supported the cause will not survive the tenure or lose his reelection.
The Minister stated that for over two decades, local government administration in the country has been in comatose with state governments not remitting funds meant for the local governments.
Fagbemi, who urged security agents in the country to stop keeping suspects in detention beyond the period allowed by the constitution, added that detention without any court order will no longer be tolerated as appropriate sanctions will be applied to those found guilty of contravening the law of the land.
On his part, the National coordinator of HURIWA, Comrade Emmanuel Onwubiko, urged the federal government to cut down on the cost of governance.
He blamed corruption for the insecurity and high unemployment rate in the country, which is responsible for impending protests in the country.
FG warns LG chairs misusing FAAC funds will face jail term
News
FG rolls out fresh plans to revive local manufacturing, create 4.4 million jobs
FG rolls out fresh plans to revive local manufacturing, create 4.4 million jobs
The Federal Government has unveiled plans to create 4.4 million jobs by implementing Nigeria’s National Strategy for Competitiveness in Raw Material and Product Development.
This announcement was made by the Minister of Innovation, Science, and Technology, Chief Uche Geoffrey Nnaji, during the National Consultative Committee on Global Competitiveness in Raw Materials and Product Development conference in Abuja on Thursday.
According to a statement on the official X (formerly Twitter) account of the Federal Ministry of Information and National Orientation, the strategy will generate employment and enhance local content in manufacturing.
This boost in local content will ensure the global acceptance of Nigerian raw materials, products, and services, thereby improving the country’s global competitiveness, the statement also noted.
“Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, has said that the Federal Government will create 4.4 million jobs through the implementation of the National strategy for competitiveness in Raw Material and Products Development in Nigeria.
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“Nnaji stated that the implementation of the National strategy will not only enhance the creation of employment, our quest for economic diversification but will also, boost local content in manufacturing to 50% and 80% respectively, for global acceptance of made-in-Nigeria raw materials, products and services which will ensure global competitiveness in the country,” the statement read in part.
The Minister further stated that global competitiveness is essential for producing goods and services that meet international standards. Nnaji emphasized that Nigeria must leverage innovation, science, and technology to achieve this.
The statement further noted that the Permanent Secretary, Mrs. Esuabana Nko Asanye, represented by Mrs. Salamatu Mohammed, highlighted the Conference as a crucial forum for discussing the National Strategy on Global Competitiveness in Raw Materials and Products Development. She emphasized the theme’s relevance to the current national development priorities.
Prof. Nnanyelugo Martin Ike-Muonso, Director-General of RMRDC, welcomed guests, stressing that the successful implementation of the home-grown strategy, driven by innovation, science, and technology, will significantly reduce raw material imports. He noted that the technical workshop would address key issues, ranging from competitiveness and advocacy to the commercialization of R&D breakthroughs.
Dr. Henry Emejo from the Organized Private Sector urged stakeholders and Nigerians to collaborate for the country’s socio-economic development.
Additionally, Sir Henry Eteama, Project Manager of SITU, emphasized the importance of clearly defined stakeholder roles in policy, legal frameworks, and R&D outputs. He called for collective efforts and commitment to ensure the project’s success and achieve the nation’s goals.
FG rolls out fresh plans to revive local manufacturing, create 4.4 million jobs
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