How to Manager Your Former Peers

by Amy Gallo  |   Courtesy Harvard Business Review 

Becoming the boss is an exciting transition, but it can also be a nerve-wracking one. This is especially true if you are now managing people who used to be your peers. You need to establish your credibility and authority, without acting like the promotion's gone to your head. How you walk this line will depend on your organization and your leadership style, but here are some general rules to make any transition smoother.

What the Experts Say
"If you take a typical group of mid-level executives and ask if they've ever been promoted to lead their peers, 90% of them will say yes," says Michael Watkins, the chairman of Genesis Advisers and author of The First 90 Days and Your Next Move. But being in good company doesn't make it any easier. "It's tough," says Robert Sutton, a professor of management science and engineering at Stanford University and the author of Good Boss, Bad Boss and The No Asshole Rule. "The dynamics completely change. People start to watch you more than ever before." Watkins agrees, "It combines the challenges of any promotion with the additional challenge of people having to recalibrate their relationship with you." Here's how to handle it effectively.

Signal the transition
In most companies, it's someone else's responsibility to announce your promotion. "If the organization has a good process for a formal changing of the guard, then people will know you're now in charge," says Watkins. But not all organizations do this, which means the task may fall to you. Of course you shouldn't send an email with the subject line, "I'm the boss now." But it's important to make everyone aware of the transition. Talk to your current boss or with HR about how to manage it.

Tread lightly at first
You probably have tons of ideas about how to lead the team. But don't introduce any major overhauls right away. You need to demonstrate your new authority without stepping on toes or damaging relationships. "You are walking a bit of an edge," says Watkins. "You don't want to come in as Alexander Haig and you don't want to act as a super-peer either." He suggests you identify a few small decisions you can make fairly quickly, but defer bigger ones until you've been in the role longer and have time to gather input. For example, you may set up a new schedule for team and individual meetings, or explain your new expectations for team communication.

Establish your authority
Demonstrating you're in charge doesn't mean making a show of your newfound authority. Instead take actions that establish your credibility and indicate how you'll work as a boss. One of the best ways is to meet with your team, as a group and individually, to talk about your vision. "It's fair ball to talk about your approach to leadership and how you plan to lead the group," Watkins says. "This should be consistent with how people have seen you lead in the past." In these meetings do as much listening as talking. Sutton suggests you ask, "What can I do to make you more successful?" This question shows that you're in charge, but also conveys that you're there to support your team.

Distance yourself
Both Sutton and Watkins agree that you can no longer have close, personal friendships with your former peers. "You can't continue to have relationships in the way you did before. This is a loss for everybody but it's part of the deal," says Watkins. If you do, you may appear to be playing favorites. Instead, you need to remove yourself from social interactions. When team members go out drinking, for example, it may be better to stay behind. You don't need to become aloof and unavailable, but you may want to attend fewer social gatherings. "If you're not feeling a little bit lonely and left out, that can be a sign that you're not distancing yourself enough," says Sutton.

Try out new personas
Because you need to determine new ways of interacting with your former peers, you'll likely need to try a few things out. "Nobody is going to get it right the first time," says Sutton. He suggests you try what INSEAD professor Herminia Ibarra calls "possible selves." These are subtle variations in how you lead. By experimenting with different ones, you can figure out what works and what doesn't. Sutton warns that you're not drastically changing your personality, or your leadership style, but you're prototyping to see what works for you.

Deal with the disappointed competitor
If one of your peers was in competition for the job, you have an added layer of complexity to address. "They've suffered a loss and they're going to handle that in a typical way: they'll be disappointed," Watkins says. In some cases, you might just need to let the person adjust to the new situation. But it's important to make it clear that you value him as an employee and that you plan to advocate for his development. You can say something like, "I understand you're disappointed. You're an important part of this team, and I'm going to make sure you have what you need to succeed."

Make use of the advantages
Of course, there are some upsides to being the boss of former peers. Watkins notes that "you'll know the politics of the organization better than an outsider. And, says Sutton, "you're more likely to find someone you trust to give you feedback, and pull you aside and tell you when you've screwed up." Leverage those existing relationships to ask for honest input.

Look beyond your team
During this type of transition, it's easy to become overly focused on your former peers. But "don't forget to deal with your new peers and your new boss," Watkins warns. "There will be challenges there too and you need to be aware of the relationship reshaping that needs to happen." Ask yourself how you can build credibility with new counterparts and how you can build a connection with your new boss.

Principles to Remember

Do:

• Take actions that demonstrate your credibility
• Make clear that you value any disappointed competitors and that you will support them going forward
• Ask former peers for honest feedback

Don't:

• Start any major overhauls right away 
• Maintain close, personal relationships with former peers
• Forget to connect with your new peers and your new boss

Case study #1: Get them engaged
After three years as partner in the leadership-consulting arm of the executive search firm Heidrick & Struggles, Rusty O'Kelley was elected by his peers to become managing partner when the previous one left for another company. As a result, "I didn't have to prove I was in charge," he says. But "I still had to make people feel engaged and like they had ownership over the process," he said. He started by meeting with every one of the 42 people in the practice — partners, principals, consultants, and admins — and listening to their concerns.

He then used an all-hands conference call to share what he had learned and what he thought the firm's goals should be for the year. "I wanted to signal that I cared about everyone's opinions," he explains. Based on the input he gathered, he also made some changes to key processes. For example, he moved to a centralized staffing model in which he became the final decision-maker, and he instituted a more open process around business development.

Rusty says that his relationships with his fellow partners have changed dramatically, most notably in how often he communicates with them. In the past, he only spoke with partners when they worked on a project together. Now he consults them regularly. "There are occasions where I exercise my authority, but I always take their advice. I make it as collaborative as possible," he says.

Case study #2: Show authority through competence
Four years into his job at a government educational agency in Louisiana, Scott Norton got a huge promotion. After a significant reorganization, he was moved two levels up into a newly formed role, managing 40 people including ten of his former peers and the managers of those peers, including his former boss. He started by talking individually with the people from his former workgroup, explaining how much he valued their work, and the role they played. Then he focused on gaining the trust of the broader team by working hard. "I believe that leadership doesn't just come through position, it comes through competence," he explains. People recognized how much time he was putting in on their behalf and how dedicated he was to the division's success.

With his former boss, he took a more hands-off approach. "It was a very awkward situation," he recalls. "I tried to stay out of her way while acknowledging the expertise she brought to her role." After a short amount of time, she left the agency but not before Scott discussed the decision with her. "She said it was too difficult to stay under the circumstances and I certainly understood that."

Later in his time at the agency, Scott got another promotion, moving from the mid-level role to an executive one. This transition he handled even better, building off his first experience.

How to Manager Your Former Peers

by Amy Gallo  |   Courtesy Harvard Business Review 

Becoming the boss is an exciting transition, but it can also be a nerve-wracking one. This is especially true if you are now managing people who used to be your peers. You need to establish your credibility and authority, without acting like the promotion's gone to your head. How you walk this line will depend on your organization and your leadership style, but here are some general rules to make any transition smoother.

What the Experts Say
"If you take a typical group of mid-level executives and ask if they've ever been promoted to lead their peers, 90% of them will say yes," says Michael Watkins, the chairman of Genesis Advisers and author of The First 90 Days and Your Next Move. But being in good company doesn't make it any easier. "It's tough," says Robert Sutton, a professor of management science and engineering at Stanford University and the author of Good Boss, Bad Boss and The No Asshole Rule. "The dynamics completely change. People start to watch you more than ever before." Watkins agrees, "It combines the challenges of any promotion with the additional challenge of people having to recalibrate their relationship with you." Here's how to handle it effectively.

Signal the transition
In most companies, it's someone else's responsibility to announce your promotion. "If the organization has a good process for a formal changing of the guard, then people will know you're now in charge," says Watkins. But not all organizations do this, which means the task may fall to you. Of course you shouldn't send an email with the subject line, "I'm the boss now." But it's important to make everyone aware of the transition. Talk to your current boss or with HR about how to manage it.

Tread lightly at first
You probably have tons of ideas about how to lead the team. But don't introduce any major overhauls right away. You need to demonstrate your new authority without stepping on toes or damaging relationships. "You are walking a bit of an edge," says Watkins. "You don't want to come in as Alexander Haig and you don't want to act as a super-peer either." He suggests you identify a few small decisions you can make fairly quickly, but defer bigger ones until you've been in the role longer and have time to gather input. For example, you may set up a new schedule for team and individual meetings, or explain your new expectations for team communication.

Establish your authority
Demonstrating you're in charge doesn't mean making a show of your newfound authority. Instead take actions that establish your credibility and indicate how you'll work as a boss. One of the best ways is to meet with your team, as a group and individually, to talk about your vision. "It's fair ball to talk about your approach to leadership and how you plan to lead the group," Watkins says. "This should be consistent with how people have seen you lead in the past." In these meetings do as much listening as talking. Sutton suggests you ask, "What can I do to make you more successful?" This question shows that you're in charge, but also conveys that you're there to support your team.

Distance yourself
Both Sutton and Watkins agree that you can no longer have close, personal friendships with your former peers. "You can't continue to have relationships in the way you did before. This is a loss for everybody but it's part of the deal," says Watkins. If you do, you may appear to be playing favorites. Instead, you need to remove yourself from social interactions. When team members go out drinking, for example, it may be better to stay behind. You don't need to become aloof and unavailable, but you may want to attend fewer social gatherings. "If you're not feeling a little bit lonely and left out, that can be a sign that you're not distancing yourself enough," says Sutton.

Try out new personas
Because you need to determine new ways of interacting with your former peers, you'll likely need to try a few things out. "Nobody is going to get it right the first time," says Sutton. He suggests you try what INSEAD professor Herminia Ibarra calls "possible selves." These are subtle variations in how you lead. By experimenting with different ones, you can figure out what works and what doesn't. Sutton warns that you're not drastically changing your personality, or your leadership style, but you're prototyping to see what works for you.

Deal with the disappointed competitor
If one of your peers was in competition for the job, you have an added layer of complexity to address. "They've suffered a loss and they're going to handle that in a typical way: they'll be disappointed," Watkins says. In some cases, you might just need to let the person adjust to the new situation. But it's important to make it clear that you value him as an employee and that you plan to advocate for his development. You can say something like, "I understand you're disappointed. You're an important part of this team, and I'm going to make sure you have what you need to succeed."

Make use of the advantages
Of course, there are some upsides to being the boss of former peers. Watkins notes that "you'll know the politics of the organization better than an outsider. And, says Sutton, "you're more likely to find someone you trust to give you feedback, and pull you aside and tell you when you've screwed up." Leverage those existing relationships to ask for honest input.

Look beyond your team
During this type of transition, it's easy to become overly focused on your former peers. But "don't forget to deal with your new peers and your new boss," Watkins warns. "There will be challenges there too and you need to be aware of the relationship reshaping that needs to happen." Ask yourself how you can build credibility with new counterparts and how you can build a connection with your new boss.

Principles to Remember

Do:

• Take actions that demonstrate your credibility
• Make clear that you value any disappointed competitors and that you will support them going forward
• Ask former peers for honest feedback

Don't:

• Start any major overhauls right away 
• Maintain close, personal relationships with former peers
• Forget to connect with your new peers and your new boss

Case study #1: Get them engaged
After three years as partner in the leadership-consulting arm of the executive search firm Heidrick & Struggles, Rusty O'Kelley was elected by his peers to become managing partner when the previous one left for another company. As a result, "I didn't have to prove I was in charge," he says. But "I still had to make people feel engaged and like they had ownership over the process," he said. He started by meeting with every one of the 42 people in the practice — partners, principals, consultants, and admins — and listening to their concerns.

He then used an all-hands conference call to share what he had learned and what he thought the firm's goals should be for the year. "I wanted to signal that I cared about everyone's opinions," he explains. Based on the input he gathered, he also made some changes to key processes. For example, he moved to a centralized staffing model in which he became the final decision-maker, and he instituted a more open process around business development.

Rusty says that his relationships with his fellow partners have changed dramatically, most notably in how often he communicates with them. In the past, he only spoke with partners when they worked on a project together. Now he consults them regularly. "There are occasions where I exercise my authority, but I always take their advice. I make it as collaborative as possible," he says.

Case study #2: Show authority through competence
Four years into his job at a government educational agency in Louisiana, Scott Norton got a huge promotion. After a significant reorganization, he was moved two levels up into a newly formed role, managing 40 people including ten of his former peers and the managers of those peers, including his former boss. He started by talking individually with the people from his former workgroup, explaining how much he valued their work, and the role they played. Then he focused on gaining the trust of the broader team by working hard. "I believe that leadership doesn't just come through position, it comes through competence," he explains. People recognized how much time he was putting in on their behalf and how dedicated he was to the division's success.

With his former boss, he took a more hands-off approach. "It was a very awkward situation," he recalls. "I tried to stay out of her way while acknowledging the expertise she brought to her role." After a short amount of time, she left the agency but not before Scott discussed the decision with her. "She said it was too difficult to stay under the circumstances and I certainly understood that."

Later in his time at the agency, Scott got another promotion, moving from the mid-level role to an executive one. This transition he handled even better, building off his first experience.

The effective internal auditor: 7 key attributes

As the role of the internal auditor shifts, through regulatory changes or a more volatile economy, so, too, do the skills required to do the job well.

The skills shift is demonstrated by what companies expect of the internal audit function. Technical skills are a prerequisite, but those skills alone are not enough as the job’s scope broadens.

“The evolution of the skills of internal audit professionals is aligning with, or is corresponding to, the evolution of the profession itself,” said Richard Chambers, chief executive and president of the Institute of Internal Auditors (IIA).

Chambers was the co-author of a recent report, Succeeding as a 21st Century Internal Auditor: 7 Attributes of Highly Effective Internal Auditors. The report, produced by the IIA and global staffing firm Robert Half, listed these seven traits:

• Integrity: While important in any business setting, it’s especially vital in internal audit, the report says. Internal auditors need to be trustworthy but also have confidence and resilience when faced with complex problems.
• Relationship building: Credibility must be built over time, so don’t start getting to know someone right before the audit engagement. Trust and collaboration are more likely when people know each other well.
• Partnering: The ability to partner enables internal auditors to execute effectively, balancing a customer service orientation with the ability to meet regulatory requirements.
• Communication: Concise, compelling reports are part of this skill, as well as the ability to listen and to know the best format in which to present information.
• Teamwork: Working well with others is required in a collaborative environment. “I don’t want someone here if they cannot function on a team,” Karl Erhardt, senior vice president and general auditor at MetLife, said in the report.
• Diversity: Internal auditors must take on a global mind-set and be cognisant of cultural norms.
• Continuous learning: Nonstop curiosity helps even the most experienced auditors gain new insight. As business needs shift, professionals should be proactive about developing new areas of expertise. “If you want to be successful, you have to be willing to invest in yourself,” Chambers said.

These attributes mainly fall into the category of soft skills, and more and more those skills are required, not desired.

“The nontechnical skills – writing skills, solid presentation skills – have really become mandatory,” said Paul McDonald, Chambers’s co-author and a senior executive director at Robert Half. “As employees advance up the company’s org chart, the skills become more critical.”

Related CGMA Magazine content:

“Budget, Staff Projected to Rise for Internal Audit Departments”: A fall 2012 survey by the IIA shows that most companies plan to maintain or increase staff and budgets for internal audit. The report also listed the top risk categories audit executives planned to focus on in 2013.

“Internal Audit: The Importance of Being ‘Soft’ ”: Companies are increasingly turning to internal auditors to identify operational risks, provide business advice and analyse information at the speed of light. With so much on internal auditors’ plates, effective communication can easily be overlooked.

“Internal Auditors Must Focus More Attention on Strategy”: While contingency planning for macroeconomic events remains a concern for internal auditors, another hot spot is strategy creation and execution. Research by the Corporate Executive Board detailed the top areas of concern for 2013.

—Neil Amato (namato@aicpa.org) is a CGMA Magazine senior editor.

Eight ways to get out of a career rut

People sometimes feel that they’re going nowhere at work or that they lack direction. This is usually due to a combination of factors, such as inertia, disengagement, a lack of clarity about goals and a lack of opportunities. But how do you get your career back on track? Here are eight tips on getting out of a career rut:

1. Look for happiness at work. Think about what makes you happy in what you do. People who are happy at work tend to be engaged, work harder and progress faster. Many people do not actually expect to find happiness in their work, but there’s plenty to like. Work offers friendships, shared experiences, stimulating conversation, challenges and rewards.

2. Think big. It’s well known that feeling that you’re part of something bigger is very motivating, no matter what level you work at. It can also help if you think about who actually benefits from the work you do and how you make a difference to them. For instance, if you’ve saved money for clients, you might consider how you’re helping them to create jobs and safeguard their business’s future.

3. Think small. In terms of day-to-day motivation, there’s a lot to be said for completing little tasks and breaking big tasks down into manageable chunks. It can be as simple as making a daily “to-do” list and crossing things off when you finish them. Small good deeds, such as helping those you work with and giving yourself rewards to look forward to, such as lunch with a friend, can provide mini boosts. These incremental actions may seem trivial, but they really do help you stay engaged and drive you forward.

4. Set goals. Often, as the saying goes, we are so busy with our jobs that we neglect our careers. But not taking time out to think about long-term strategy and goals is exactly what gets many people in the career doldrums in the first place. Having clearly defined goals gives you something to shoot for – the very act of focusing on and clarifying what you want often forces you to take stock of where you are and begin to reshape your role. Goals should be specific, measurable and broken up into the short-, medium- and long-range.

5. Make opportunities. If you find your job unsatisfying, ask your boss if you can expand it or be given extra responsibilities. If this isn’t possible, look at what else is available in the organisation. This could be anything from formal training and qualifications to putting yourself forward to sit on committees, or involving yourself in the business’s corporate social responsibility side. Volunteering for your organisation’s charitable activities is likely to make you feel satisfied, raise your profile and introduce you to new contacts and opportunities. People tend to assume that if they hang around they’ll get noticed, but you need to work at it and put yourself out there. Fortunately, large organisations usually make this very easy to do.

6. Look outside work. Feeling motivated and engaged in other areas of your life can spill back into your work. This could be anything from sport to amateur dramatics to donating your time and skills to charitable organisations. In a related sphere, physical and mental inertia are often sides of the same coin, so taking up cycling to work could help get you back in the saddle, literally and metaphorically.

7. Avoid negative groupthink. If you’re feeling directionless and demotivated, colleagues and friends can be an enormous source of support, and may bring opportunities your way. But if you belong to a group in which everyone moans about similar problems, the reverse is likely to be true, and you may end up magnifying and perpetuating each other’s problems. You need to get out and find people who want to solve problems, not people who want to dwell on them.

8. Know when to move on. Sometimes the rut is the company, not the job – and this can be particularly true of smaller organisations that offer limited opportunities. If, after everything, you decide that your goals are unlikely to be achieved within your organisation, then you may need to look elsewhere. But even if you’re unsure, the act of looking elsewhere can be positive as it makes you aware of the options that are available.

—Rhymer Rigby is the author of The Careerist: Over 100 Ways to Get Ahead at Work and writes a weekly careers column for the Financial Times

 aware of the options that are available.

—Rhymer Rigby is the author of The Careerist: Over 100 Ways to Get Ahead at Work and writes a weekly careers column for the Financial Times.

EU, Germany to invest N5.3bn in power sector

From DENNIS MERNYI, Abuja

Nigeria power sector has received a boost, with the European Union (EU) and the government of Germany promising to invest€€24.5 million (about N5.3 billion) in the Nigerian power sector. Germany and EU are to route the fund through the Nigerian Energy Support Programme (NESP) launched by the Federal Ministry of Power, in collaboration with German International Corporation (GIZ).

The director of development cooperation, German Embassy, Mr. Schulz, disclosed this yesterday at Nigerian-German Energy Support Programme workshop in Abuja. Mr. V. Mitzlaff in a presentation entitled Objectives, Co-operation structure and challenges of the NESP said already, €9 million has been committed while €15.5 million would be advanced before the end of 2013.

“The total is €24.5 million, so €9 million is already committed, €15.5 million will wait for the final commitment from Brussels later this year,” he said. Speaking at the opening of the workshop, Minister of power, Professor Chinedu Nebo, described the Nigerian-German Technical Co-operation Support programme as a welcome relief as federal government encourages such bilateral and multilateral co-operations and relationship in its drive to effectively develop the power sector.

According to the minister, government seeks to provide adequate and reliable power by implementing generation, transmission and distribution projects as well as facilitating the emergence of a private sector-led competitive and efficient electric power industry. He said government recognises the need for assistance to drive the implementation of the Vision 20-2020, in which about 40,000 megawatts of electricity is targeted. “The power remains a veritable market and opportunity for those who want to invest in power.

The Nigerian government recognises that a range of assistance is needed to drive and support the implementation of vision 20, 20, in which we target a generation capacity of 40,000 megawatts,” he said. Nebo noted that the foundation of the co-operation would encourage private sector investments in renewable energy in the coming years, with policy regulations, enhancements of renewable energy efficiency issues through support for rural electrification and cross-cutting training. .

Man Rapes Daughters, 15-Month-Old Granddaughter

Mr. Sylvester Ehijere

By Chiemelie Ezeobi

It is perhaps the worst degree of incest for a man to serially sleep with his daughters and worse still, with a 15-month-old granddaughter. 

It all looked like a tale from a movie  when seven-year-old yesterday recounted how her father had repeatedly had carnal knowledge of her.

THISDAY gathered that the suspect, Mr. Sylvester Ehijere, 49, had continually had carnal knowledge of his two daughters, including 23-year-old Favour, who he had been raping since she was 17, as well as the granddaughter.

The traumatised girl said her father slept with her for the first time last year, and had continued to do so, even when the act regularly became a source of discord and friction in the family.

"He covered my mouth with his big hand so that I wouldn't shout and then put his manhood inside me. It was painful. I was crying and begging him to stop but he refused.

"When he finished, he told me that he would pluck out my eyes and those of my mother and brothers and sisters if I tell anyone what he did to me. He also promised to buy me cars, biscuits, sweets, clothes and shoes but he did not buy it," the seven-year-old girl told THISDAY.

She continued, "He always targets when my mother goes out and then he will first put his finger into my private part before he will use his organ. Whenever my mother tried to ask him what he did, he beat her up. Now he has done the same thing to my small niece.

"The day he slept with her, he pursued my brother, Kingsley, and I outside and locked the door. I knew what he was doing to her but I couldn't tell anyone because my mother was not around. When he came out, he was sweating all over."
Confirming the incident, the state Police Public Relations Officer, Ngozi  Braide, a Deputy Superintendent of Police, said the man would  soon be charged to court on charges of defilement, which is punishable under the law with life imprisonment.

She said: "The suspect is in the habit of sleeping with his daughters and now his granddaughter has joined the equation. We have the doctor's report,  which shows that the girls have been defiled and are no longer virgins.

"Their hymens were brutally torn and the doctor who established that they were defiled advised for them to be taken for Human Immune Virus (HIV) tests.  The wife who was fed up with his act reported the case to the Ejigbo Divisional Police Officer, Oliver Inoma-Abbey, a Chief Superintendent of Police."

For the suspect's wife, Mrs. Margaret Ehijere, the last straw that broke the camel's back was when the suspect raped her granddaughter.
She told THISDAY that she had been married to the suspect for over 23 years.

She said, "I am a professional caterer and in 2006 I went to Abuja for a catering job. At about 1am, my first daughter hysterically called me on the phone. She said her father had raped her that night. I lost that job because I had to go back to Lagos in the morning to be with my daughter.

"When I confronted him, he beat me up and I had no choice but to report him to his mother who also accused me of framing up her son.  I left him when I was fed up of him sleeping with our daughters and me. And he cannot accuse me of ignoring his bedtime requests, as I was always available for him."

Margaret later moved out of the matrimonial home with her six children. But in 2011, her husband’s family went to appeal to her to forgive him and take him back. She did, “after he swore to keep off my daughters.”
"I really thought he had changed; but in August last year, I caught him in a compromising situation with our last daughter. I called her out and she narrated how her father had been abusing her. Again, I confronted him and he beat me up.”

Ever since then, Margaret had started keeping her daughters away from her husband.

On how she found out that he had defiled their granddaughter, she said: "Because my daughter works, we decided to put her daughter at a day care in Ejigbo. I have always been the only one that brings her back at 6pm everyday from the day care.”

He later violated the baby after sending the elder children on an errand. “And my granddaughter was screaming till I came back in the evening," she added

Although the suspect had earlier denied the allegations, he couldn't repeat his denials before his wife.

FG Restates Plan to Withdraw Petrol Subsidy

President Goodluck Jonathan

Muhammad Bello
For the second time in 24 hours, the federal government has reiterated its plan to deregulate the downstream oil sector despite the huge outcry that necessitated its suspension last year when it withdrew the subsidy on petrol.

Minister of Information, Labaran Maku, who briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting presided over by President Goodluck Jonathan Wednesday, said that the issue was its first major challenge last year but the president had to put it on hold because of the many calls that were made on him not to implement the policy.

Maku’s statement came on the heels of a similar statement made by the president during The Economist magazine’s 2013 Nigeria Summit held in Lagos on Tuesday.

At the summit, Jonathan had said the federal government was still planning to fully deregulate the petroleum downstream sector, but only after holding consultations with Nigerians on how to go about the implementation of the policy.

He said: “We cannot continue to waste resources meant for a greater number of Nigerians to subsidise the affluent middle class, who are the main beneficiaries.”

The federal government on January 1 2012, had deregulated the price of petrol, but the policy was resisted by the generality of the public culminating in a week-long strike, which forced the government to reverse the policy on full deregulation of the downstream oil sector.

Since the incident, the official price of petrol has been fixed at N97.00 per litre while that of kerosene was pegged at N50.00 per litre.

According to Maku, despite the criticism of the policy by some Nigerians, the overwhelming majority are now satisfied that its implementation is crucial to the scaling up of the oil and gas sector so as to curtail corruption and develop the nation.

He lamented that the federal government was currently losing a lot of money to the payment of subsidy, while Nigerians continue to suffer from lack of infrastructure and paying extra to avail themselves of services from the oil and gas sector.

“Without deregulation,” Maku insisted, “there will be no deregulated downstream sector. Currently the government is losing, the people are losing, because we cannot generate jobs.

“The potential that the oil and gas sector could have unleashed on the country is completely truncated. But the effort is continuous, as the government will not relent on its effort to convince Nigerians so as to reverse the trend of Nigerians suffering as a result of the subsidy on fuel.”

On the spate of insecurity occasioned by the activities of the Islamist insurgent sect, Boko Haram, the minister said his ministry has done a lot to create awareness among Nigerians.

He explained that following a meeting of the National Security Council last year, a template on security awareness was been embarked upon by all states.

“The overall objective of terrorism is to bring down government and scare Nigerians. The agenda of the group is anti-Islamic. People everywhere in the North are suffering.

“But our efforts have shown Nigerians the impact of terror on the northern economy. That has exposed terror for what it is today and most stakeholders in the North are joining the debate,” he stated.

He added: “Today, Christians and Muslims are not fighting as government has de-escalated terrorism. Most of the fight against terror, particularly in Kano, involves people of the community.

“The ministry also did a little campaign in the communities between Dadin Kowa and Bokkos in Plateau State. Now both Christians and Muslims are working against elements of terror.”

Speaking on the National Good Governance Tour, Maku noted that it was a huge success, saying no single state has rejected it.
“The ministry went round to Abuja, Niger, Plateau, Nassarawa, Benue and other states. What is crucial is that the tour has generated competition among states.

“This heavy competition is promoting development within states and even within ministries, departments and agencies (MDAs),” he stated.
Another feature of the post-FEC briefing yesterday was the stewardship given by the Ministry of Housing and Urban Development on its programmes in 2012.

The minister, Ms. Ama Pepple, who was represented by the Permanent Secretary, Alhaji Muhammad Mahe; Director of Architectural Services in the ministry, Mr. Sani Gidado; and the Managing Director of the Federal Housing Authority (FHA), Mr. Terver Gemade, highlighted some of the ministry’s achievements, including the delivery of 8,069 houses in 2012.
According to Mahe, under the ministry’s prototype housing scheme, 256 houses were built in three cities.
He said the ministry also entered into partnership with private companies to build houses in Taraba, Gombe, Kano and other states, just as more houses were built and sold through banks and the Federal Mortgage Bank of Nigeria (FMBN).

“The ministry has created a PPP unit to work in partnership with the private sector to deliver houses to the people while 720,228 jobs were created in the housing sector with the aim of making housing availability more efficient,” Mahe said.

He also listed the major problem being faced by the ministry as land procurement, observing that approximately N2 billion was needed last year for that purpose, but the appropriation in the budget for the purpose was slightly above N100 million. “We hope that there will be an improvement this year,” he noted.

Other problems he listed were poverty, shortage of houses and proliferation of slums that needed to be upgraded, implementation of the Land Use Act and multiple charges levied on prospective land owners in the process of acquiring title deeds like Certificates of Occupancy (C of O).

FIFA Job: Lagos SWAN Congratulates Oliseh

Sunday Oliseh

The Sports Writers Association of Nigeria (SWAN), Lagos Chapter, has congratulated Nigeria's former captain, Sunday Oliseh, on his appointment into the Technical Study Group of the World football governing body, FIFA.

Chairman of Lagos SWAN, Fred Edoreh, described Oliseh's appointment as a clear recognition of his brilliance, not only as a player that successfully captained the Super Eagles for years but also as a well trained coach.

"Lagos SWAN heartily congratulates Nigeria's former captain, Sunday Oliseh, on his appointment into the FIFA Technical Study Group" Edoreh said in a statement Monday.

"The appointment has further proved that Nigeria has great potentials in football development resource" the Lagos SWAN Chairman remarked.

"We are proud of Oliseh and we urge the Nigeria Football Federation (NFF) to take optimum advantage of the appointment" the statement further read.

Privatisation: FG Nets $156.50m from PHCN Successor Firms James Emejo

 PHCN office

The federal government has so far received the sum of $156.50 million from the five preferred bidders for the successor firms of the Power Holding Company of Nigeria (PHCN) as part of the mandatory 25 per cent of the bid value of the   respective assets.

According to a statement from the Bureau of Public Enterprises (BPE), which was made available to THISDAY Monday, a breakdown of the total remittances showed that Amperion Power Company Limited, the preferred bidder for Geregu Power Plc had paid $33 million; Integrated Energy Distribution & Marketing Company, which won the bid  for Ibadan and Yola Distribution Companies paid $42.25 million and USD$14.75 million respectively while NEDC/KEPCO, the preferred bidder   for Ikeja Distribution Company, paid $32.75 million.

Others include West Power and Gas, the preferred bidder for Eko Distribution Company which paid $33.75 million.

The payment came ahead of the Thursday, March 21 deadline for all the bidders to make the mandatory 25 per cent payment in line with the Share Purchase Agreement for the transactions.

However, payments were still being awaited from other bidders including 4Power Consortium (Port-Harcourt Disco); Aura Energy Limited (Jos Disco); Interstate Electrics Limited (Enugu Disco); KANN Consortium Utility Company Limited (Abuja Disco), Sahelian Power SPV Limited (Kano Disco), Vigeo Consortium(Benin Disco); Transcorp Consortium (Ughelli Power Plc); CMEC/EUAFRIC Energy JV  (Sapele Power Plc); Mainstream Energy Solutions Limited (Kainji Power Plc); and North-South Power Company (Shiroro Power Plc).

The National Council on Privatisation (NCP) had on October 23, 2012 given the final approval of the preferred bidders to advance into the next stage of the privatisation exercise.

The Nigerian electricity industry had been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investments into the Nigerian power sector to ensure economic and reliable electricity supply

Yusufu, Convicted Pension Director, Gets Bail

John Yahaya Yusufu,

Tobi Soniyi
The convicted pension thief, John Yahaya Yusufu, who slumped in court last Monday while standing trial for alleged false declaration of assets involving the sum of N290 million, has been granted bail by a Federal High Court in Abuja.

He was granted bail in the sum of N10 million with one surety in like sum.
The trial judge, Justice Adamu Bello,  ordered that the surety must be a Director in the Federal Civil Service who must be owner of a landed property in Abuja and must submit the title documents of the property to the court’s registrar.

Yusufu was also directed to deposit his international passport with the court and was ordered not to travel outside the country without the permission of the court.

The court observed that the accused was remanded in prison custody since January 30 in a bid to save him from the public anger that trailed his sentencing by another court which tried him for stealing the sum of N29 billion from the Police Pension Office where he was a deputy director.
The judge noted that reminding him in prison was not meant to punish him as he had not been found guilty of the present charge.

Yusufu is standing trial for not disclosing his interest in a N250 million fixed deposit which was fixed in the name of a company known as SY-A Global Services Limited, incorporated by him and solely owned by him and members of his immediate family at Zenith Bank Plc.

He was also alleged to have a N10 million fixed deposit in an account his company maintains at First Bank of Nigeria Plc and another N29 million fixed through one Mr. Danjuma Mele, who is also scheduled to testify as a witness in the trial.

The Economic and Financial Crimes Commission, (EFCC) had opposed Yusufu’s bail application and had invited the court to take into cognisance the recent conviction of the accused on charge of criminal breach of trust.
The prosecution also told the court being a convict, the court ought not to exercise its discretion in his favour.

The anti-graft agency pointed out that Yusufu did not deny his previous conviction on criminal breach of trust in the affidavit he filed in support of his application for bail and urged the court to consider the gravity of his present offence, a felony and an offence punishable with imprisonment term of five years, as the proof of evidence filed alongside the charge, and to deny him bail.

The court had commenced Yusufu’s trial having allowed the EFCC to call its first witness, a civil servant working with the Asset Forfeiture and Tax Investigation Unit of the agency, Mr. Mustapha Sani.

No sooner had the witness commenced his testimony than Yusufu, who had been standing in the dock, started shaking violently.

His lawyer pleaded with the court to allow the accused person to sit down, a request that was promptly granted by the court but as the accused made to sit down on the seat inside the dock, he slumped forward across the wooden dock.

His lawyer and prison officials who had brought him to court from Kuje prison rushed to him and assisted him to sit on the seat.
At this point, the court indicated that the accused was not fit to continue with the trial and adjourned the trial to April 22.

FG Permits Dana Air to Resume Operations

Dana Air

Chinedu Eze
The federal government has asked Dana Air, whose operations were suspended on Saturday, to resume services immediately, but has ordered that its aircraft which had technical problems should remain grounded until it is satisfied with the airworthiness of the aircraft by its manufacturer, Boeing.

In a statement signed by the Special Adviser (Media) to the Minister of Aviation, Joe Obi, the ministry said yesterday that its officials  and those of the Nigerian Civil Aviation Authority (NCAA) met with officials of the airline and deliberated on safety issues and Dana’s operations.

Dana Air on Saturday had an incident involving one of its aircraft which recorded emergency landing in Abuja fully laden with passengers when its battery power exhausted, a situation that would have cut off all the electrical system in the aircraft.

Annoyed by the incident, the Minister of Aviation, Stella Oduah ordered the airline to suspend flight operation.

But Obi said: “Officials of the Ministry of Aviation and the Nigerian Civil Aviation Authority (NCAA) met with the management team from Dana Airlines today (yesterday) in Abuja and deliberated on some safety issues in connection with the operations of the airline.

“At the end of the meeting, the suspension of operations of the airline which took effect last Saturday was lifted. The airline is to resume normal operations immediately. However, the particular aircraft which had a snag over the weekend is to remain grounded until after its airworthiness has been re-certified by Boeing, the manufacturer of the aircraft.”

Also Dana Air, in a statement signed by its head of communications, Tony Usidamen, said: “We are pleased to announce that the airline has been given approval to resume flight operations with immediate effect following the temporary suspension of our operations on Saturday, March 16 2013.

“Scheduled flights will now commence on Tuesday 19th March, 2013 on the Lagos-Abuja-Lagos route. Once again, thank you for your patience and understanding and we look forward to having the pleasure of welcoming you on-board.”

Many in the industry were concerned over what would happen to domestic travel if Dana and Aero stopped operations simultaneously, leaving only three airlines in service, which many industry observers said could lead to a hike in air fares.

Tips to help you review your finances

An illustration
| credits:

Financial experts say it is important for people to analyse their financial standing regularly to ensure they do not lose sight of their goals. In this article, SIMON EJEMBI provides tips to help you in that regard

Many people have not really taken time of their schedule to review their finances for years. They just take each day as it comes, spending their earnings on what they perceive to be the most pressing need at the time the get paid. According to financial experts, such people have no clue about how close or far they are from their financial goals. This is because they never try to put everything in perspective; a habit which is likely to delay or deny them financial freedom.

Experts say it is important for people to review their finances regularly; at least once in a year, if they can do it every quarter or month. Doing this will help individuals to evaluate their financial standing with regard to their goals in life. This, according to experts, is sure to help them make needed changes in order to achieve financial freedom. They insist that just as people need regular check-ups, so also do they need to check their finances regularly, to determine whether they are making progress or retrogressing.

In reviewing your finances, the following steps will be helpful.

 Get to know your goals

To review your finances, you first need to know where they ought to stand in the first place. What do you want to achieve this year? How close are you to achieving it? What is holding you back from achieving it? What would it take for you to achieve it? These are questions you need to answer. Without knowing what you want to achieve or how much you require in order to achieve your goal, for instance, you will not be able to determine how your finances truly stand. For example, if your plan is to buy a house for N5m in May, and by March you have N200, 000 as savings, you will sense that something has got to give if you are to achieve that. But when you have not goal, you may not be able to react appropriately, whether your savings is N1m or N200, 000.

You are therefore advised to know your goals as that will guide you in determining what progress you have made in the course of the period being reviewed.

Analyse your cash flow and assets

It is also important to determine how you are faring in terms of cash flow. Are you earning enough to meet your needs? Or is your expenditure much more than your income? To be in good shape financially, experts say your earnings have to be more than your expenditure.

By carrying out a cash flow analysis, you will be able to determine whether your expenses surpass your income; a situation which will require you to reduce your expenses in order for you to achieve financial freedom. Also, it is important to review your investments. Are they making the expected returns? If not, what is the reason for this? Do you need to take your investment somewhere else?

Apart from your cash flow, experts say it is equally important that you review your assets as well as your lifestyle. They say it is important that you note changes in your life, especially how those changes are likely to affect your expenses and goals. If you were working in Gombe State, for example, and you are transferred to the Federal Capital Territory, Abuja, you will be required to make many adjustments to your financial plans because your expenses are bound to be higher. Failure to make these changes will only leave you frustrated as your goals may not be achieved, especially as some cost-saving opportunities will be missed.

If your earnings are below your expenses and you have little to know investments, it is likely that you will be in debt. Determine how much you owe and if your repayment plan is effective. Consider viable alternatives if your findings are negative.

Consider inflation, stick to budget

In Nigeria today, the inflation rate is in two-digits. And while experts expect it to decline to a single-digit figure that has not happen. Some even believe it could rise. This means that at any point in time your purchasing power can become less and your income will become inadequate. In such times, you will be required to make a lot of budgetary adjustments and will require additional income streams to get by. What has your experience been like? Do you consider this in your financial plan? Experts say it is important that you do so to ensure that you stay on course to achieve your goals as stipulated in your financial plan.

Determine how prepared you are for emergencies

According to experts, it is important for people to have some form of emergency fund and to be prepared for emergencies. In this regard, it is important to determine whether you have your angles covered. Do you have adequate insurance cover? Have you prepared a will? etc. Is there money somewhere that is meant for a rainy day? Without all these or a clear plan towards achieving them, it means that you have some work to do to be financially independent.

According to experts, it is important that the amount you will need to achieve each of your financial goals is not only determined, but also provided for based on how important they are.

In world today, risks abound and at any time, a risk can backfire and cost you a lot of money or your source of livelihood. It is therefore important that at all times, there is a clear plan to bail you or your family out in such times.

 Ensure your retirement plan is in order

Reviewing your finances is not just about your short-term goals. Long-term goals such as retirement plans are expected to be considered during every review. It is important to ensure that your retirement savings are intact and that they are never ignored. It is also important to ensure that the savings plan properly captures your likely retirement expenses and needs.

While there are many more tips that can help you in reviewing your finances and ensuring that you achieve your financial goals, those listed above are sure to provide you with a big push in the right direction if you consider them.