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AKK gas pipeline: Arewa In need of exigent regional industrial reforms policy

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By Abdulhaleem Ishaq Ringim

On the 13th of July 2020, the BusinessDay editorial board published an editorial titled “Nigeria’s AKK-Pipeline project lacks economic viability”. In the editorial, the renowned business newspaper examined the Ajaokuta-Kaduna-Kano(AKK) Gas Pipeline project, its host region (Northern Nigeria) and the country’s economic realities and concluded that the project lacks economic viability citing challenges such as lack of industrial capacity to offtake the gas and Insecurity among others as the reasons buttressing their conclusion. 

Naturally, as passionate Northerners, and considering the timing of the report being barely a month after the official launching, we immediately debunked such a poking editorial and tagged it as another stereotypical attempt by the “Lagos Interests” to ridicule the North and stand in the region’s path towards becoming the next industrial hub of the country and experiencing unprecedented economic development. 

However, it is almost one year after and I make bold to say I have gathered enough reasons to call out The North and ask; Is economic development really part of our regional agenda? 

For context, Nigeria is endowed with enormous natural resources, the most dominant and abundant of which is GAS. Nigeria holds Africa’s largest gas reserves and stands 9th in the world largest gas reserves ranking holding about 188 trillion cubic feets of gas in its proven reserves. 

Nigeria since the discovery of crude oil in the late 60’s has maintained a mono-product economic status. But with the unsteady and unhealthy volatility of crude oil prices in the global market, there has been serious agitations for economic diversification especially towards manufacturing by aggressively pursuing industrialization options (of which GAS is a major catalyzing factor). 

It is on this basis that the government sought to develop a robust network of gas transmission (from gas reserves/production/gathering centers to Demand centers) throughout the country through the Trans-Nigerian Gas Pipeline (TNGP) project and enhance its export potential through the broader Nigeria-Algeria Gas Pipeline Project (Trans-Sahara Gas Pipeline). 

The Ajaokuta-Kaduna-Kano(AKK) Pipeline Project is a section of the TNGP with a dimension of 40-inch x 614km and a capacity of transporting about 3,500 cubic feet daily. The project was launched by President Muhammadu Buhari on the 30th of June 2020 with an expected completion period of 24 months. 

The project’s cost is about $2.8 billion, 85% of which will be financed through a sovereign guaranteed loan facility to be provided by the China Export & Credit Insurance Corporation (Sinosure) at London Interbank Offered Rate (LIBOR) interest rate plus 3.7% and a repayment period of 12years while the 15% will financed by NNPC(equity). 

This massive project is expected to stimulate, or rather rejuvenate the Northern moribund industries and usher in new ones, improve electricity generation, unlock over 3 million jobs and enhance the domestic utilization of gas as proposed by the Nigeria Gas Masterplan. 

While I still frown at the BusinessDay editorial for rendering the project economically non-viable, it is with the same passion that I would like to call the attention of Northern State governments to a statement made by Milton Friedman, one of the great economists of the 20th century that “One of the great mistakes is to judge policies and programs by their intentions rather than their results”. 

But the question is, how do we achieve reaping the expected benefits of this massive and capital-intensive project? How do we prove BusinessDay and its proponents wrong? How do we work towards getting positive results out of this project? 

The North should understand that the Gas Sector unlike the Oil sector is driven by market forces and devoid of governmental interventions especially in the downstream sector. The pipeline construction might be completed within the stipulated period but the only guarantee for gas to continually flow through those pipes is if there is consistent demand by an effective downstream sector. 

Although it is always portrayed that the natural gas resources that sit in our reserves is in excess of even our crude oil reserves, it should be understood that only 60% of the said 188 trillion cubic feet of gas is available in the short term as 40% of the reserves are said to be stranded in gas gaps and not accessible until much after oil production. This coupled with the fact that there is already a bias towards LNG export (which proves more profitable) gives investors the opportunity to choose where exactly to invest and where to push the proceeds from the currently available gas reserves. 

To be able to fully take advantage of this massive project, there is need for the constitution of a robust and sustainable gas off take portfolio and a display of commitment(to boost the suppliers’ confidence) by the different actors in the downstream sector ranging from the Strategic Domestic Sector(e.g power plants) to the Strategic Industrial Sector(e.g fertilizer and petrochemical plants) and the Commercial Sectors(industries that use GAS as fuel e.g steel, cement manufacturers, textile industries etc). 

This could be done through the development of a Northern Regional industrial policy that will seek to explore our industrial and manufacturing comparative advantages 

and coordinate the private sector into setting up the necessary gas offtake industries (and rejuvenating existing ones) around those advantages that will guarantee consistent demand for the gas. This will surely boost the confidence of the gas suppliers to be able to commit to a consistent supply of gas through the AKK corridor. 

It is sad to learn that almost one year from the commencement of the project, no single investor has indicated interest in setting up a gas plant along the AKK corridor by submitting a Final Investment Decision(FID). And only Kano and Kaduna State out of all the Northern states that are potential beneficiaries have set up mechanisms to effectively leverage on such a massive opportunity. Kano State Government have set up the Kano State Gas Pipeline Project Delivery and Gas Industrialisation Committee while Kaduna State Government have stated its commitments during the KADINVEST 5.0 Summit titled “Infrastructure, Industrialization and Innovation”. 

The Northern Governors’ Forum and other relevant stakeholders should see ample reasons why there is need for “Arewa Manufacturing and Industrialization Summit” that will aim at converging all relevant stakeholders in one room to brainstorm issues around Northern Nigeria’s industrialization potential and develop an Industrial Policy for the region that will ensure effective transformation of our potential into reality. Arewa should pursue conscious political economics that will make an industrial hub out of the region and sustain it. 

We should start seeing independent power plants, fertilizer producing industries, petrochemical industries, textile industries etc indicating genuine interest through the submission of FIDs. We cannot afford to lose this opportunity for it has the potential of partly solving some of the deep rooted challenges facing us including poverty, unemployment, insecurity etc. With an effectively utilized AKK pipeline, the North will surely become Nigeria’s next industrial hub and would experience whirlwinds of unprecedented economic development. 

Abdulhaleem Ishaq Ringim is a Political and Public affairs analyst, he writes from Zaria and can be reached through haleemabdul1999@gmail.com

Gorillas at San Diego Zoo in US test positive for COVID

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By Ismail Auwal

Several gorillas at the San Diego Zoo Safari Park have tested positive for the coronavirus in what are believed to be the first known cases among apes in the United States and possibly the world.

The gorillas’ fecal matter was tested after two of them began coughing and exhibiting “other mild symptoms” on January 6, the zoo said in a press release. The tests came back positive on January 8 and were confirmed by the USDA’s National Veterinary Services Laboratories on January 11.

The park’s executive director, Lisa Peterson, told The Associated Press news agency on Monday that eight gorillas that live together at the park are believed to have the virus and several have been coughing.

It appears the infection came from a member of the park’s wildlife care team, who also tested positive for the virus but was asymptomatic and had worn a mask at all times around the gorillas.

The park has been closed to the public since December 6 as part of the state of California’s lockdown efforts to curb coronavirus cases.

At least two of the gorillas began coughing last week, while a third is showing symptoms.

Positive test results were confirmed by the US Department of Agriculture National Veterinary Services Laboratories in three gorillas. Faeces from all eight in the troop are being taken for testing.

Government policies on university education: A case of “enemy of state”.

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By Abdelghaffar Amoka Abdelmalik, PhD

According to the founders of the American Philosophical Society, universities are concerned to create and transmit “useful knowledge”. Boulton et al. in their article titled: what are universities for, published in Chinese Science Bulletin in 2011, defines the useful knowledge as partly what is practically useful; what serves the broadest purpose of rendering the human condition and the world we live in coherent to us; and the preparation of what we do not yet known to be useful knowledge.

Stefan Collini, a Professor of English Literature and Intellectual History at the University of Cambridge states that one way to begin to think about the distinctiveness of universities is to see them as institutions primarily devoted to extending and deepening human understanding. He opines that no other institutions have this as their primary purpose. He thinks that university is beyond an institution that just ‘contributing to economic growth’.

Universities generate a wide range of outputs. They create new possibilities from research and shape new people through teaching. The combination of these two produce the ideas and the personnel that see to our timely needs as well as shaping the future that is yet unknown. Policy-driven demands are placed on the universities. That is why contemporary governments and societies that know their onions pay an unalloyed attention to their universities.

I was in Norway in December 2012 for an interview. After the interview one of the Professors offered to drop me at the City Centre to get the bus to the airport. In the chatting that ensued on our way to the City Centre, the Norwegian Professor told me that when oil was found in Norway and subsea exploration became one of the major activities in the country, the research activities of the university then got tailored towards subsea among other things and providing R&D support to oil companies and the subsidiaries. The Electric Power Engineering Department of their university was involved in DC power substations, subsea power stations, power electronics for subsea oil and gas exploration, etc. From my observations during my postdoc, there were several collaborations between the universities and the industrial partners. In the project that I worked on between 2013 and 2015, there were about 5 companies involved in the project.

The operation of universities in Norway seems to fit into the European Union’s promotion of a “modernisation agenda” for university reform “as a core condition for the success of the broader Lisbon Strategy to make the European Union “the most dynamic and competitive knowledge-based economy in the world”. In the strategy, the role of universities was designed and shaped to exploit the popular “knowledge triangle of research, education, and innovation”.

Governments around the world see universities as important sources of new knowledge and innovative thinking, as providers of skilled personnel, agents of innovation, attractors of international talents, agents of social justice, etc. But what is the idea of universities to Nigerian government? Providers of skilled personnel and agents of innovation or just a clearinghouse? What is the role of universities in the Nigerian government’s policy drive? Just onlookers? The ideas of the government on Nigerian universities became obvious when President Muhammadu Buhari’s administration on 15th November, 2017, approved the appointment of Malaysian consultants for 458 million naira to help conduct a study for 13 weeks in the country that would aid the implementation of the government’s Economic Recovery and Growth Plan (ERGP). The government could not find any Economist or a Professor in the Economics departments of any of our universities to do the job at even a much lower cost but from Malaysia.

But why would the government place policy-driven demands on a people whose opinion do not even matter on policies that affects them. They for example, refused to listen to the argument that IPPIS policy is against the University Autonomy Act and that it will destroy what the university stands for. They dragged the IPPIS issue for 9 months and were eventually forced to drop it. If the opinion of the people in the university had matters to the government and they listen to them, ASUU would not have gone on the warning strike before the 9 unbelievable months of strike.

Universities are acknowledged worldwide to hold the key to innovative ideas but not to the Nigerian government. So, where do they source for innovative ideas? Black market? Could that be responsible for the trial and error policies that have created more problems than solutions? A government that will allow the universities to be shut for 9 months over issues that ordinarily don’t deserve a 2-weeks warning strike does not possibly need innovative ideas from the universities.

The universities are attractors of international talent. While we are supposed to be improving on the system to attract international talents, the government attempted to send away the few expatriates in our universities. The handlers of government policies are possibly not aware that there are still few international scholars in Nigerian universities, else they won’t attempt to force on public universities a policy that will close doors to international scholars to come to Nigeria. That is the level Nigeria government has placed Nigerian universities.

What then is the role of Nigerian universities in economic growth and nation-building aside graduating students every year to join the labour market? Unfortunately, we run a purposeless system. Hiring in MDAs, including the universities is purposely. There are people in the university that have got no business with the university. It is possibly just a meal ticket to them pending when they will get another job that pays better. When I was hired for a postdoc job, I was told on arrival and after orientation that at the end of the 2 years contract, I am expected to produce at least 1 IEEE journal paper and 1 IEEE conference paper. I was given all that I needed to make me comfortable to work and I started working to achieve the set target. I eventually produced 3 IEEE journal papers and 1 IEEE conference paper, something above their target and they were very excited with the output. Consequently, earning me a nice send-off lunch with the Professors in the company of my 6 months old daughter and handshakes before I left back to Nigeria.

What policy-driven demands has the government placed on our universities? What is the strategic plan and vision of the universities? What is the set target for the workers? None, except the target you set for yourself. Have we got all that it takes to achieve that target, including welfare package? People, including Mr. Chukwuemeka Nwajiuba, a career Nigerian politician and the current Nigerian Minister of state for education, say Lecturers should leave the job or go for alternative income to supplement their salary rather than complaining of low pay. Going into farming or possibly combine it with lecturing was even suggested. I trembled for their ignorance as they don’t know the implications of such statements. University academic work is a full-time job and 24 hours a day is not enough if you want to do it as it should. And the Minister of state for education said on International TV that: “We need more farmers than Lecturers”.

Meanwhile, if I should combine a supplementary job with lecturing, the attention will surely be divided with likelihood of more attention on that supplementary source of income, especially if the supplementary is bringing in more money than the primary (lecturing). In that case, the primary job inadvertently becomes a secondary job. And what is going to happen? The students will suffer and the Nigerian system will be at the receiving end. Let’s keep swimming in our river of ignorance.

Does it mean that they don’t know the role of universities in economic development and nation-building? Of course, they do, else they won’t send their kids to study in universities in Europe. They don’t just see the need in bridging the gap by investing in the education of the masses but deliberately decided to underfund public education. Does it mean that they don’t know the role of intellectuals in nation-building? Of course, your guess is as good as mine. Else they won’t approve the invitation of Malaysian Economic Consultants to Nigeria to conduct a study that our Economists can do even much better at relatively lower cost.

Universities have a great role to play in nation-building. Treating the people that made the university what it is and hold the key to innovative ideas, like they are nobody is prolonging the time it will take the nation to grow. There have been a series of trial and error policies since 2015. I want to believe that would have changed if policy-driven demands are placed on our universities and the intellectuals are involved in policy development and implementation.

They are always quick to agree that a nation cannot grow beyond the education of its citizens yet the education of Nigerians is never seen as a priority. There is always no money to properly fund Education, Healthcare delivery, and maintain a sound policing outfit in Nigeria. They hold the money (our national resources) and dictates how and where to spend it irrespective of the needs of the people. According to Mr. Chukwuemeka Nwajiuba, the Nigerian Minister of state for education, “you don’t dictate to the person that holds the money”. That is the mindset. The hold the money and the money (our money) is spent at their discretion irrespective of the critical needs of the society.

Our country needed money that seems not to be there for the basics but always there are billions for our politicians to spend on what can be avoided (cosmetics). Why can’t we go unicameral and scrap the Nigerian Senate, reduce the number of Nigerian House of Representative members, and make it less attractive by converting the legislative arm to part-time job: a job for serious minded people who have something to offer and for not career politicians. People that have excelled in their fields and are fully employed. Remuneration will be based on sitting allowance. The 128 billion naira allocated to NASS in the 2021 budget and money saved from other unnecessary expenses will go a long way in fixing these critical sectors.

The future of an economy that is based on oil is not very bright going forward with the market of electric cars growing worldwide. As we can see with Elon Musk, the owner of Tesla Electric Car emerged as the World richest man. He attained that peak position by the sales of his electric cars. The government of President Buhari has put a lot of emphasis on diversification but ironically education is not part of it. Many governments worldwide, such as UK, US, Malaysia, etc., have invested massively on universities and they are serving as sources of earning foreign exchange. How do we make our universities attractive to the rest of the world for it to generate foreign exchange without proper investment in them? How do we make our university programs attractive to international scholars without proper funding and facilities? An average Professor in Nigerian university earn less than 1,000 USD (average of N380,000) per month. How do you make them produce innovative ideas without a good welfare package? How do you attract international talents with such ridiculous net salary? How are we also going to create a dynamic and competitive knowledge-based economy like the rest of the world? How do we position our universities to exploit the so-called “knowledge triangle of research, education, and innovation”?

There are still people within the universities doing what they can do against all odds to create an environment for research, education and innovation. I am fortunate to have worked with some of them. I am also fortunate to have belonged to a group of relatively young academics that have struggled to develop a lab that worth at least 50 million naira. But how far can we go with the government’s attitude towards education? Is it time to give up on these “our idea of universities” and move elsewhere? What is the future of a country without a functional public education system?

Our idea of a university system in Nigeria where the government has to be forced by the ASUU with strikes and other industrial actions before funds are injected into the university like the recent 9 months of the strike is definitely not the global idea of a university system. Our idea of the university system in Nigeria is surely not the global idea of the university system where contemporary governments and societies pay so much attention to the universities.

Mall. Adamu Adamu, the Minister of Education at FEC special retreat on education in 2017 requested that “state of emergency be declared on education”. It has remained just a request since then. The people in the government should drop their pride and ego and bring together the stakeholders in the education sector with all sincerity to clearly define the kind of education (from primary to tertiary) that we want for economic development and nation-building, and develop a road map towards sincere and conscious implementation, else we’ll keep swimming in our pathetic idea of education and university system in Nigeria.

Education is arguably the most critical element in building a nation. It is only an enemy of the state that will not prioritize the proper funding of public education but send his kids to private schools or schools abroad to study.

Abdelghaffar Amoka Abdelmalik, PhD.
Ahmadu Bello University
Zaria.

DSS alerts Nigerians on plan to incite religious crisis

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By Abba Gwale

The Department of State Services (DSS) has said that some unpatriotic citizens conniving with external forces are planning to create religious violence in some States.

In a statement signed by DSS spokesperson, Peter Afunanya, said the targeted States are Kano, Sokoto Kaduna, Plateau, Rivers, Oyo, Lagos and states in the south-east

“The DSS wishes to alert the public about plans by some elements working with external forces to incite religious violence across the country,” the statement read.

“Targeted States include Sokoto, Kano, Kaduna, Plateau, Rivers, Oyo, Lagos and those in the South East.

“Part of the plans is to cause inter-religious conflicts as well as use their foot soldiers to attack some worship centres, religious leaders, personalities, key and vulnerable points.

“Consequently, Nigerians are advised to be wary of these antics and shun all divisive tendencies aimed at inciting or setting them against one another.

“While the Service pledges to collaborate with sister agencies to ensure that public order is maintained, those hatching these plots are warned to desist from such in the interest of peace, security and development of the country.

“However, law abiding citizens (and residents) are encouraged to report suspected breaches of peace around them to the nearest security agencies.”

He however urged Nigerian to shun anything that would create division in the country.

FG signs $1.959bn Kano-Maradi railway project

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By Abba Gwale

The Federal Government has signed a Memorandum of Understanding (MoU) with Mota-Engil Group for the construction of Kano-Maradi standard gauge railway line worth US$1.959 billion naira.

A statement signed by the Director, Press and Public Relations, Ministry of Transportation, Eric Ojiekwe, noted that the 283.750-kilometre rail line besides developing freight and passenger transport will be integrated with road transport to make a great contribution to the local economy as well as an important development in the social sector.

The Minister of Transportation, Rotimi Amaechi signed on the project on behalf of the President Muhammad Buhari while the Managing Director, Mota- Engil, Antonio Gvoea signed on behalf of the contracting company.

The project duration is for 36 months and is to be located in Kano, Jigawa and Katsina states in the North and through Maradi, Niger Republic.

Other cities to benefit directly from the passage of the rail route are, Danbatta local government in Kano, Kazaure in Jigawa state and Daura, Mashi, Katsina and Jibiya in Katsina State.

Those in attendance during the signing event are Permanent Secretary, Federal Ministry of Transportation, Dr Magdalene Ajani; Director, Legal Services, Pius Oteh; Managing Director, Mota-Engil Group, Antonio Gvoea; Head of Legal, Mota- Engil Group, Cameron Beverley; Magajin Garin Kano, Muhammad Wada; Director, Mota-Engil Group, Kola Abdulkarim; Vice President, Mota-Engil Group, Mohammed Abdul-Razaq; Nigerian Ambassador to Germany, Yusuf Tuggar; Managing Director, Nigerian Ports Authority, Hadiza Bala-Usman among others.

Breaking: Schools may not resume January 18 as FG mulls postponement

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By Ismail Auwal

The Federal Government is considering another date for school resumption against the January 18th announced earlier, following rising COVID cases across the country.

The presidential task force on COVID-19 had instructed all schools in the country to remain closed until January 18, 2021.

But at a briefing on Monday, Minister of Education, Adamu Adamu, expressed concerns about the scheduled date.

“It (January 18th date of school reopening) is not sacrosanct. When we decided on that date it was just a target towards what we were working on,” he said.

Adamu added that, “Of course, we are keeping it in view and looking at what is happening in the society and then it is supposed to be subject to constant review. Even today at the PTF meeting we looked at the rising figures and thought about if we should probably take another look at it.”

“On January 18th resumption, we are reviewing it, we are going to review it… tomorrow the Ministry is going to take it up.”

Dangote to expand cement plants in 5 more African countries

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By Ismail Auwal

The president of Dangote Industries Ltd, Aliko Dangote, is set to commission five cement plants in five countries, aiming at opening new trade routes for Nigeria under the Africa Continental Free Trade Area (AfCFTA).

The new plants soon to be ready for commissioning are in Niger, Benin, Ghana, Cote D ‘Ivoire and Togo.

AfCFTA is aimed at creating a single market, for the movement of capital, goods, people and investments to further deepen the economic integration of the continent. It took off on January 1st.

The business mogul in a statement said that the company is targeting an expanded entity in Cameroon in addition to its 29.3 million tonnes per annum capacity factory in Nigeria.

Dangote stressed the need for Africa to deliberately improve its per capita consumption of cement to aid infrastructure development by stimulating further demand and forcing down the cost of the commodity.

He said that the “Desire for Africa’s self-sufficiency in cement production informed the signing of a $4.34 billion contract with Sinoma International Engineering Company Ltd., a Chinese construction company for the construction of 11 new cement plants in 10 African countries, and Nepal in Asia.”

“For Dangote Industries Ltd., moving goods like cement by road from Nigeria where they are manufactured to Ghana, where there is a big market, is unviable, hence the need for new plants that will open multiple trade routes,” he said.

Richard Branson loses mum to COVID-19

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By Ismail Auwal

Richard Branson’s mum has died at the age of 96 after battling with coronavirus.

Richard broke the news of his mum’s death to his 12.5million fans on Twitter on Monday.

The entrepreneur, 70, celebrated his mother’s “wonderful life” and the “joy” she brought in his loving tribute.

He tweeted: “I’m sorry to share that, sadly like a lot of people’s mums and dads right now in these days of Covid, my mum Eve has also passed away.

“Rather than mourn her loss, I wanted to celebrate her wonderful life & the joy she brought to so many.”

Eve is survived by three children, 11 grandchildren and 10 great-grandchildren.

Turkish Author, Harun Yahya sentenced to 1000 years imprisonment

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By Ismail Auwal

Adnan Oktar, popularly known as Harun Yahya was on Monday jailed for 1,000 years for sex crimes, local media reported.

The 64-year-old was detained in June 2018 as part of a crackdown on his group by the financial crimes unit of the Istanbul police.
He was sentenced to 1,075 years for crimes including sexual assault, sexual abuse of minors, fraud, and attempted political and military espionage, the private NTV broadcaster reported.

In December, Oktar told a presiding judge he had close to 1,000 girlfriends.
“There is an overflowing of love in my heart for women. Love is a human quality. It is a quality of a Muslim,” he said in another hearing in October.
He added on another occasion: “I am extraordinarily potent.”
Oktar first came to public attention in the 1990s when he was the leader of a sect that was caught up in multiple sex scandals.

His online A9 television channel began broadcasting in 2011, drawing denunciations from Turkey’s religious leaders.

One of the women at his trial, identified only as CC, told the court that Oktar had repeatedly sexually abused her and other women.
Some of the women he had raped were forced to take contraceptive pills, CC told the court.

Asked about 69,000 contraception pills found in his home by the police, Oktar said they were used to treat skin disorders and menstrual irregularities.

He also dismissed any link to a group led by US-based Muslim preacher Fethullah Gulen, whom Turkish authorities accuse of orchestrating a coup attempt in 2016.

Oktar is a creationist who rejects the Darwinian theory of evolution and has written a 770-page book called “The Atlas of Creation” under the pen name, Harun Yahya.

I stand by my Fatwa on Kannywood divorce- Dr. Bashir

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By Ismail Auwal

The Chief Imam of Alfurqan Mosque in Kano State, Dr. Bashir Aliyu Umar, has reaffirmed his position that any film actor that divorces an actress acting as his fictitious wife in a movie scene, his actual wife stands divorced.

Dr. Bashir, in a phone interview with Sahelian Times, said that, when an actor pronounces divorce in movie set to an actress who plays a role of his wife in the movie, then Islam rules that the pronouncement has direct implementation on his actual wife, provided he has any.

The Imam insisted that the issue of Islamic jurisprudence is not for every ordinary person to delve into, and thus should be left for Islamic scholars to interpret.

A video had earlier gone viral on the internet, showing Dr. Bashir issuing a fatwa that both marriage and divorce can’t be done in a fiction, because Islamically they will be treated as real.

The fatwa generated a lot of reactions on social media, with many people condemning the proposition.