NNPC, DPR intensify clampdown on errant stations By ‘Tope Fasua A team of Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) officials, led by NNPC Group Managing Director Maikanti Baru, yesterday continued its unscheduled visits to filling stations in the Federal Capital Territory (FCT) suspected to be involved in underhand dealings.
The visits, facilitated by the operatives of the Nigerian Security and Civil Defence Corps (NSCDC), led to the clampdown on a notorious outlet in Kubwa District where petrol was being sold at N250 per litre, a price well above the approved retail price of N145/litre.
So long as a story touches a sentimental nerve in us – tribe or religion – we lap it up. We are like the warrior that goes to war with blinding tears dripping from his eyes. Perhaps that is why we often lose. The truth is that we should have by now developed barriers to stories that play up our sentiments and they should be the last that we believe, because they are often designed to mislead. Why would we be willingly misled? On social media for the past
The NNPC GMD ordered an onthe-spot dispensing of the product in the storage tank free to motorists in conformity with extant sanction for such misdemeanour . NNPC’s Group General Manager (Public Affairs) Mr. Ndu Ughamadu told reporters yesterday that Baru said with the Presidency’s directive for security agencies to
tackle smuggling of petroleum products, crossborder activities and diversion of products would be curtailed, thus allowing Nigerians to benefit from the massive injection of fuel in the last few weeks. Also yesterday, the NNPC announced the temporary suspension of products
Naira appreciates to N360.7/$ in I&E - Page 4
dispensing at its mega station on Lagos Road, Port Harcourt, due to a fire which occurred near the station. The fire resulted from a Toyota Camry car which exploded outside the station. Although the fire did not affect the station, the corporation noted that it was imperative to suspend operations to enable security agencies clear the traffic at the scene.
DECEMBER 28, 2017
VOL 04
FINANCIAL WATCH Bringing all your financial & business news
CBN suspends new clearing rules for banks- Page 8 New Policy Takes effect from January 2 CBN to maintain Settlement Account for commercial bank only By Ezekiel Enejeta
The Central Bank of Nigeria (CBN) has suspended a review settlement banking arrangement to all clearing sessions for banks and merchant banks, expected to begin January 2. In a circular to all banks and the Nigeria Interbank Settlement System (NIBSS), CBN Director, Banking and Payments System Department, ‘Dipo Fatoku, said: “Please note that the new policy on extension of settlement banking to all clearing sessions with effect from January 2, 2018 is hereby suspended until further notice.”
Foreign Trade and Exchange Guideline, says it can only maintain a Settlement Account for a commercial bank that provides clearing collateral of not less than N15 billion worth of treasury bills. The regulator said achieving the benchmark gives a bank the right to engage in clearing and settlements operations in the country. Fatokun had in an earlier circular issued last month, said it was imperative for the banks to extend the settlement banking arrangement to all the clearing sessions. Specifically, he said the settlement of settlement banks only. ...Continue on Page 8
The apexbank’s Monetary, Credit,
Oil hits approximately $67 highs on Libyan pipeline blast By Princewill Ekwujuru LAGOS—OIL prices have touched two-and-a-half year highs in light volume boosted by an explosion on a crude pipeline in Libya and voluntary Oil Producing Exporting Countries, OPEC-led supply cuts.
Being held down for years by conflict and unrest. Brent crude, the international benchmark for oil prices, has risen to $66.76 a barrel. Prices hit a session high of $66.83 a barrel.
U.S. crude climbed to $59.76 a barrel after touching a session Libya has lost around 90,000 bpd high of $59.86. of crude oil from a blast on a pipeline feeding Es Sider port, a Libyan oil source said, adding The impending restart of a key that NOC was still assessing the North Sea pipeline, Forties, damage, according to Reuters. limited the rally. A Libyan military source said earlier that armed men had planted explosives at the pipeline. The country’s output had been recovering in recent months after
The pipeline is being tested after repairs and full flows should resume in early January, its operator said. The producers have extended the supply cut agreement to cover all of 2018.
LASG pays N325m insurance benefit to beneficiaries By Cynthia Adigwe Lagos State government has paid insurance benefit of N325 million to 104 beneficiaries of deceased employees in the mainstream civil service from August 2015 till date.
Director General of Lagos State Pension Commission, LASPEC, Mrs. Folashade Onanuga, disclosed this at the presentation ceremony of retirement bond certificates to batch 46 of contributory pension scheme retirees in Lagos recently. Onanuga said, “The State, through the Commission has paid to 104 named beneficiaries of deceased employees in the mainstream civil service, insurance benefit of N325, 000,000.00 from August 2015 to date. This insured death benefit is by law to be paid to named beneficiaries to alleviate the immediate needs of the family members. From January, 2017, the responsibility of payment of the insured death benefit has been ceded over to the insurance department of the Ministry of Finance.”
Onanuga said that the state government through the Commission will not rest on its oars until an employee who retires gets his accrued pension rights almost immediately he exits from the service.
Onanuga advised retirees on the two different benefit options open to them for receipt of monthly pension, stating, “Please take time to decide which payment option between the programmed withdrawal and life annuity you would prefer before you go for it. There are different types of life annuity arrangements i.e. level or increasing annuity benefits. So request for advice from your annuity service provider if your choice is annuity plan.
For those who wish to opt for the programmed withdrawal arrangement by Pension Fund Administrators, the National Pension Commission has released the template that allows all retirees under the programmed withdrawal arrangement to be eligible for increase in pension received based on the growth in funds under management.”
Arms importation: Customs, agents trade blame over use of scanners at Apapa port By Fisayo Soyombo Amidst recent upsurge in the importation of arms and ammunition into the country, maritime industry stakeholders are in tango over usage of scanners at the nation’s seaports.
While the Tin-can Island Command of the Nigeria Customs Service, NCS, claimed that they scan between 30 and 50 containers daily, the clearing agents on the other hand said that the scanners are not being used.
The Public Relations Officer of the Command, Nkiru Nwala, who told Maritime Vanguard that the claim of abandonment of the scanners is incorrect, explained that of the two scanners available, only one is working and the use of the scanner is dependent on how many containers the terminal operators are able to position for the purpose.
She stated: “It depends on how many your terminal is able to drop a day. There are things you need to understand about the mechanisms of the work in the ports.
“For example, now in APMT, customs wants to scan 100 in a day, but that can only happen based on the number of containers that APMT can drop at the time they want it. Some it is not just a decision that customs take.” On how many containers the Command scans daily, she said, “It depends on how many containers the terminal operator is able to drop (scanning) per day. It depends on how many are at work per day. It is not like today it must be this, tomorrow it must be that. It just depends on the number of working folk-lift that they have. If it is not working for that day, they will have to
repair it as many as they can because they have to also load back the container.” Asked how many containers are scanned daily, she said “Between 30 and 50, Let us assume 50”, she concluded. Similarly, former Chairman of the National Council of Managing Directors of Licensed Customs Agents, NCMDLCA, Apapa chapter, Tanko Ibrahim, said it is not true that the Tin-Can Customs are using the scanners because they are not in good working condition. In his words, “The machines are not
Okay. If they are okay, let them use it now because they (Customs) do the maintenance. They are making money on that side and they do not want people to know that these things are not working. Okay if they are working why are they not using them?” When asked of the possibility of the Service deliberately not using the scanner because they do not want to use scanners as they prefer 100 percent examination, he said, “I disagree with that. The scanning machine is even better than the 100 percent
...Continue on Page 7
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MLF boosts more SMEs, launches social-financial media platform By Ezekiel Enejeta Many registered members of the My Liberty family ( MLF ) scheme (Libertarians) have become first time millionaires. The Chief Executive Officer of MLF Mr. Ben Adesokan, stated this in a statement on the company’s one year anniversary held in Lagos. He said, unlike other multilevel marketing scheme which empowers a few early registered members and keeps others as slaves, MLF was created to help Libertarians receive financial support from other family members (Libertarians) without enslaving any. According to him, MLF believes that poverty is not African. It also believes that Small and Medium Scale businesses (SMEs) are the country’s growth engine. Adesokan also noted that SMEs are essential providers of jobs and economic growth. ‘’World Bank reports that 95 percent of jobs in low income countries are created by SMEs. Further report shows that they account for about one third of the country’s gross domestic product, GDP. They are an essential part of private domestic private sector and are a priority in any country’s economic reform’’. He stated that although, Nigerians are known for many negative things, MLF is designed to change the perceptions of people about Nigerians. “It is a platform designed to change the way Nigerians are perceived. Nigerians are known for many bad things but some of us have proven that our country is a nation of talents and creativity. It is the first coming out of Nigeria and we believe that with the right education and opportunity, everyone can live as they wish and go where they want to go”. At the commemoration, Adesokan unveiled a social media platform ‘SeamWith’ which he described as being borne out of a strong desire to provide solution that will meet a wide range of needs for registered members and would-be members. ‘’This platform, SeamWith, is to help users feel at home and enjoy several benefits in addition to financial benefits’’. “Of what use is to have 500 friends on facebook who are of no business or financial value. But on SeamWith you can have 200 friends with whom you can discuss business and financial ideas,” Mr. Ben Adesokan said. He further explained that Joining SeamWith is free and it allows users to seam with other users. One can create ‘Seamer’s hall, akin to the web page, SeamCircle, which is the general timeline page and SeamBox which is the videosharing platform. ‘’The SeamCenter, offers a one-stop digital library for authors, publishers, developers. It also serve as a platform for advertisers where they can get maximum exposure and earn. The SeamPRO is the market place for professionals and clients to meet and transact, while the SeamChat as the name implies offers instant messaging.’’
FINANCIAL WATCH
NSE to introduce guidelines on derivatives trading
Obasanjo becomes UN envoy to Liberia
By Ezekiel Enejeta
By Haruna Magaji
The Nigerian Stock Exchange, NSE, said it would soon introduce guidelines for creation, listing and trading of derivative products on its platform.
UN Secretary-General, António Guterres, has announced that he is sending former Nigerian President Olusegun Obasanjo to Liberia to support the transfer of power peacefully to a democratically-elected president. Another Nigerian former leader, Goodluck Jonathan is at present in the country, at the head of a monitoring group.
The Exchange disclosed this in a notice signed by Tinu Awe, General Counsel/Head Regulation of the NSE. The Exchange said the framework would also regulate the activities of the trading members and other market participants in the Exchange Traded Derivatives market.
Guterres, who announced Obasanjo’s appointment as an envoy on Wednesday in New York through his spokesperson, Stephane Dujarric, also welcomed the peaceful conduct of the second round of the presidential election in Liberia.
According to the Exchange, the plan is in line with its objective of increasing the number of asset classes traded on its platform and in recognition of the need for risk management. It noted that the creation would facilitate hedging of investment risks and diversification of asset portfolios within the market. It said: “In the cash markets, investors are typically exposed to asset price risk. In the absence of short selling and the supportive securities lending options, investors are highly susceptible to significant diminution in portfolio values once there is a reversal of a bull trend. “Thus, investors engage in aggressive efforts to lock-in unrealised profits – thereby resulting in a self-reinforcing market downturn,
Liberians on Tuesday, voted in a second round of elections, deciding between Vice-President Joseph Boakai and George Weah, a politician and former soccer star.
which negatively impacts investor confidence, and trading volumes. Derivative instruments enable investors to hedge their portfolios against adverse price movements which can result in unexpected losses”. Highlighting some of the disadvantages of absence of derivatives instruments in a stock market, the Exchange said that the absence contributes to persistent inability of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices and leads to lacklustre activity in the underlying cash market, particularly in
times of stressed economic and market conditions.
This would be Liberia’s first peaceful transfer of power from one democratically-elected leader to another in more than 70 years.
The NSE added that absence of derivatives products also result in lack of confident market participants and volatility in Exchange’s revenue.
“The Secretary-General hopes that the will of the Liberian electorate will be respected and that a seamless transfer of power will take place within constitutional timelines,” the statement said.
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes and stocks.
Guterres had requested Mr Obasanjo, who is a member of the Secretary-General’s HighLevel Advisory Board on Mediation, to travel to the capital, Monrovia, from Thursday, Dec. 28 to Saturday, Dec. 30 Dec.
MTN Foundation lauded on skills empowerments By Haruna Magaji Friends of The Disabled (FOTD) Vocational and Educational Centre have lauded MTN Foundation for having empowered 96 youths with disabilities in the past four years to establish their own businesses.
The centre trains people with disabilities in different skills in shoemaking, sewing, catering, fish farming, among others Speaking during the graduation ceremony of skilled and empowered youths with disabilities, at the Oja-Oba Vocational Centres Lagos Island, Mrs Christy OrduhED/Founder Friends of the Disables (FOTD) said: “FOTD was established to develop the talents of youths with disabilities in order to make them valued and useful adults in the society.
“We appreciate MTN foundation who took the bold steps to train about 96 of our students here in four years.” According to her, the beneficiaries have conquered the challenges of depending on others and of being idle through the skill you have learnt. “You have gotten enough training and advices that can make you establish your own business. We are here for consultations and activities that rehabilitate you. Two of you have been consulted as instructors, and one other as sign language teacher. Let us know where you are and how you are adjusting to the society. FOTD also remain grateful to National Directorate of Employment, NDE, which gave the organisation the first start-up equipment and tools and have collaborated with us to date.
“We thank Lagos Island Local Government for their support, SNEPCO, Society of Petroleum Engineers (SPE), Individual Partners, UBEC, Women Affairs, Sage Foundation Nigeria, Nigeria Institute of Oceanography and Main Research, Victoria Island, small world Nigeria and other sponsors,” she said.
She explained that the focus of the centre now is not only empowerment but also rehabilitation with jobs that can fetch them income with what they have learned. “Two of our ex-students have recently been rehabilitated. One is into continuing education here and features as a tailor too while the other works with a bone craft centre for income generation,” she added.
The first round of elections in the west African country was held in October. A runoff was originally scheduled for November, but was delayed due to allegations of voter irregularities by a third candidate. Obasanjo is one of 18 global leaders, senior officials and experts on the high-level board created earlier this year to advise the Secretary-General on mediation and back those efforts around the world. The former President of Nigeria was involved in mediation efforts in Angola, Burundi, Mozambique, Namibia and South Africa, among others. The high-level board is part of the SecretaryGeneral’s pledge for the UN to embark on a “surge in diplomacy for peace.” The idea, according to Tarja Halonen, former President of Finland and also a high-level board member, is to prevent wars by “hybrid peace-building.” Speaking at the UN General Assembly in September, outgoing Liberian President Ellen Johnson Sirleaf, said that the polls would signal an “irreversible course” towards democracy in the country. Sirleaf, the first woman elected as head of an African country, took office in 2006, ending a civil war that erupted under the leadership of her predecessor, Charles Taylor.
SEC, Journalists to partner on investor education By Ezekiel Enejeta The Securities and Exchange Commission (SEC) has pledged to work with Finance Correspondents to ensure proper reportage of the capital market and properly educate the investing public.
problem of unclaimed dividends and also ensure that investors receive the benefits of their investments in the capital market timely. “We also have the direct cash settlement, dematerialisation, Nigerian Capital Market Development Fund (NCMDF), National Investors Protection Fund (NIPF) among others.
Dr Abdul Zubair, the Acting Director-General of SEC, said this in a statement on Wednesday in Abuja. Zubair made the pledge when a group of Abujabased newsmen visited him in Abuja. He commended the journalists for their assistance so far in propagating the initiatives of the commission while enjoining them to continue to support the SEC in its quest to educate the investing public. He named some of the initiatives by the SEC to include direct cash settlement, dematerialisation, consolidation of multiple accounts and e-Dividend Mandate Management System. He said that the initiatives had helped to promote transparency, protect and enhance investors’ confidence in the capital market. “We have rolled out a number of initiatives among which is the e-dividend campaign where investors will now be paid their dividends directly to their bank accounts. ” E- dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors.
“All in consonance with the present administration’s economic strategy, focused on deepening the capital market as a vehicle for encouraging a private sector-led economy with enhanced productivity,” the director-general said. Zubair therefore enjoined shareholders to take advantage of the initiatives introduced in the capital market aimed
primarily at strengthening the market and accelerating economic development. Earlier, leader of the delegation, Nduka Chiejina, pledged the support of his colleagues in assisting the commission to inform, educate and enlighten investors on the benefits of the Nigerian Capital Market.
Abuja motorists get more free fuel as NNPC, DPR, seal stations By Haruna Magaji Some motorists in Abuja on Wednesday got more free petrol as the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) sealed more stations. The team had sealed the Khalif Civic Centre and Investment Limited at Kubwa, a suburb of Abuja on Tuesday.
refurbished tanks and could take more than 300 litres, thereby depriving other motorists the oportunity to fuel on time and ration available product. ”They go and siphon the tank and come back. The civil defence has arrested several and will continue to do so. ”Those who are in the habit of instaling extra tanks should beware.
”This is an effort of government to continue to identify all those who are a hindrance to the supply of petroleum products.
”As at noon, we have gotten 110 trucks distributed to Abuja and environs,” he said.
”Incidentally, this filling station is owned by the same perpetrator of yesterday and to our dismay, not only is he selling to people at N250 per litre, but he’s also under-dispensing at half the volume as testified by one of the motorists.
He said about 24 marketers that had diverted products had been apprehended and it would be a continuous exercise.
”DPR confirmed yesterday that he did not have licence and they have handed over the station to civil defence for appropriate action.
“Rather than send it by post, Registrars will just wire it to the investor’s bank account directly.
”Today, this one has more volume about 15,000 litres so we are dispensing 5 litres to every motorcycle and 20 to every car and this will continue,” Maikanti Baru, NNPC boss, said.
“This will help in no small measure, reduce the
He said there were also vehicles that had
December 28, 2017
The Abuja Zonal Operations Controller, DPR, Mr Mohammed Abba, advised that the station should be demolished. ”We have advised the civil defence to apprehend him, they have put that in motion but he is in hiding. ”If you look at this station, it is an illegal station, there is no way we will give licence to a station within a community because it has not satisfied all the
requirements. ”Look at the power lines and high tension cables all around. Moreover, when we spoke yesterday we gave him a concession but I think the owner of this filling station does not need pity from any government. ”The way he situated this, if there is any accident, the amount of lives that would be lost would be massive. ”We advise that instead of giving this fuel free, the station should be demolished, it should not exist at all. ”Under no circumstance should the station be allowed to exist within this community because it is very dangerous.
” We call on development control that its Certificate of Occupancy should be revoked. Mr Aminu Abdullahi, Assistant Commandant-General, Operations of the Nigerian Security and Civil Defence Corps told newsmen appropriate action was being taken against illegal dealers.
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FINANCIAL WATCH
DECEMBER 28, 2017
NEWS
Edo develops CSR evaluation framework to foster peace in oil producing communities By Ezekiel Enejeta The Edo State Government has said that its Corporate Social Responsibility (CSR) evaluation framework has helped in sustaining peace and cordial relationship between host communities and oil and gas companies in the state, noting that the state remains the most peaceful in the Niger Delta region. Commissioner for Solid Minerals, Oil and Gas, Hon. Joseph Ugheoke, disclosed this in a chat with Journalists in the State capital, Benin City, adding that this was achieved by a comprehensive community relations evaluation template. According to Hon. Ugheoke, “the state government appreciates the relative peace enjoyed by states in the region, especially as it concerns the long existing peace in communities hosting companies in the solid minerals, oil and gas sector.” He said the government has developed a document that will allow her improve standard of evaluating the CSR programmes of companies and investors that operate in the state. The document, he explained, “serves as a reference point for the communities and companies, as it is no longer fashionable for communities to sign agreement with companies and await crisis points before consulting government institutions, on the way out.” Ugheoke added that the communities are already making contributions to finetune the framework, noting that efforts are underway to present the bill to the State House of Assembly for a law. “In the first quarter of 2018, the state executive will present the document before the state House of Assembly as a bill, to allow the state regulate the relations between companies and host communities.” He added that the state government intends to have a legal document that will spell out the number of persons from host communities to be employed by oil companies, both at the junior and management staff levels.
Naira appreciates to N360.7/$ in I&E By Ezekiel Enejeta
The naira, Wednesday, appreciated to N360.7 per The naira yesterday appreciated to N360.7 per dollar in the Investors and Exporters (I&E) window, in spite 36 percent decline in volume of dollars traded.
Data from the Financial Market Dealers Quote (FMDQ) revealed that the indicative exchange rate for the window dropped to N360.7 per dollar yesterday from N361.11 per dollar yesterday last week Friday.
Further analysis revealed that the volume of dollars traded in the window dropped to $74.38 million from $116.3 million last week.
The improved fortune of the naira was extended to the parallel market, were it appreciated by N1 as the parallel market exchange rate dropped to N364 per dollar from N365 per dollar last week
FINANCIAL WATCH
Fuel scarcity: Niger gets only a truck in 2 days By Haruna Magaji Minna – The lingering petrol scarcity continues on Wednesday across Niger State as only one truck was allocated to the state in the past two days. Mr Sunday Senchi, Head of Department of Petroleum Resources operations (DPR) disclosed this in an interview shortly after inspecting some filling stations in Minna metropolis. He said that only three filling stations dispensed petrol on Tuesday. Senchi explained that as at 12 noon on Wednesday no allocation has been sent to the state. The DPR official said that the state needs an allocation of about 30 to 40 trucks daily to end the scarcity. He explained that the department is monitoring filling stations to ensure that those with petroleum products dispense to motorists. The Niger State has two NNPC depots in Minna and Suleja towns. Senchi warned that the department would not hesitate to dispense products free to motorists from any filling station caught hoarding. According to him, the department will also ensure that no filling station sell above the government approved prices of N145 per litre. At the Maitumbi area of Minna, stations such as Muhabat, First Ja’az Global Resources limited and Mutmusa Nig limited were selling above pump price when NAN correspondent visited the area on Wednesday.
NNPC Mega station, which is the only one selling at N145 per litre. Kabiru Abdullahi, a resident of Sauka Kahuta, said that he spent two nights to get the product at the NNPC Mega station. He said that the scarcity was affecting the daily activities of residents. Abdullahi called on the Federal Government to constitute a mobile courts to prosecute those found hoarding and selling the product above official pump price. ”If you go to Tunga, Bosso, Old Airport and Maitumbi in the metropolis, you see children selling the product openly.
”Government should investigate how the product got to the hands of black marketers.” Malam Bashir Musa of Maitumbi told NAN that ”all the filling stations in Maitumbi have the product but are selling at N400 per litres. ”It’s really business for the black marketers as they are making brisk profit at the expense of motorists.” Musa called on the task force set up by the Nigeria Security and Civil Defense Corps (NSCDC) to investigate how the product was diverted to black markets. Ishaku Idris, a commercial driver, said that he slept for two days at the NNPC filling station and pays extra money to petrol
attendants to buy the product. NAN reports that many petroleum marketers in Minna metropolis closed their stations, while the few that opened, sold the product at official pump price but collect extra money before selling. Hawkers were seen around filling stations making brisk business as five litres of petrol was sold at N3,500 to N 4,000 depending on the location. Abdulkarim Bello of Ahmadu Bello way told NAN that the task force set up by the NSCDC should redouble their efforts at ending scarcity. He also called on the state government to continue to monitor the products distribution to end diversion by marketers.
Meanwhile, investigation by NAN indicates that motorists spend days at the
”I just bought a four litres fuel for N2,500.
NEPZA Licences Three New Free Trade Zones
‘N20b fraud’: EFCC quizzes ex-UBEC boss Dikko, others
By Samson Gabriel
The Nigeria Export Processing Zones Authority (NEPZA) has licensed three new Free Trade Zones (FTZs). This announcement was made wednesday by its Managing Director, Emmanuel Jime. In a statement signed by the Head, Corporate Communications of the agency, Simon Imobo-Tswam, NEPZA said it had secured for the country over $2.751billion in Foreign Direct Investments. (FDIs) The new FTZs are Quit Aviation Services, Nasco Town FTZ and Tomaro FTZ. Jime said apart from the juicy FDI in flows, about 50,000 direct jobs will be provided by the three FTZs. “Under my stewardship, we have so far been able to licence three new industrial parks i.e. Nasco Town Free Zone, which is valued $2,086billion. It is estimated, at completion, to be able to provide 50,000 direct jobs. “The second is Quit Aviation Services Free Zone, valued at $215million, and is estimated to provide jobs in their thousands. And there is: Tomaro Industrial Park, in Lagos, valued at $450million. It would also provide jobs running into the thousands,” the statement said. Jime said when he resumed office, he met staff who were low in morale in addition to other challenges including, inter-agency rivalry, delayed promotions and poor investor-confidence. According to him, with the cooperative support of his management team, he had succeeded in making appreciable impact. He similarly described as false the claims that the authority padded its 2018 budget estimates, saying that NEPZA has neither padded her budget proposal nor inflated its personnel cost. “It is true that the Personnel Cost in NEPZA’s 2017 budget is N638million and the proposed budget for 2018 is N710million, but it is grossly incorrect to insinuate or suggest that the budget was over bloated or state that ‘there is a N205million surplus discovered in the 2018 budget estimates of NEPZA. The statement clarified that Authority’s gross monthly salary figure is over N53million while staff pensions, PAYE, NHIS and other deductions are made at source at the Office of the AccountantGeneral of the Federation (AGF).
By Ezekiel Enejeta Economic and Financial Crimes Commission (EFCC) detectives have quizzed a former Executive Secretary of the Universal Basic Education Commission (UBEC), Mallam Suleiman Dikko, for alleged N20billion fraud. Also grilled were contractors and top directors of UBEC, including those in charge of Finance and Procurement. Dikko’s and some contractors’ passports have been impounded “to ensure unhindered investigation”. The probe, said a source, who pleaded not to be named, is to unravel how funds meant for primary education and Unity Schools were either diverted or converted to private use. “The fraud involves over N20 billion, allegedly siphoned through the purchase of science and technical equipment and MDGs’ books for some 104 Unity Schools between September 2012 and 2014.” The Principals of the “beneficiary schools” denied receiving the books and equipment listed against their schools, it was learnt.
between 20 to 30 per cent of the equipment and books purportedly delivered to their schools, whereas the contractors were paid in full,” the source said.
by some members of the National Assembly.“ Some of these projects have been traced to a principal officer of the House of Representatives.”
Some former executive secretaries and directors of the commission have The projects in UBEC are: One block been quizzed. of three classrooms at Eru Primary School, Igbide (N9,180,835.45); one There are indications that the block of three classrooms at Ivori N20billion contract scam is part of Primary School, Isoko (N9,887,778); the cases for which the anti-graft construction of three classrooms at commission is investigating Dikko. Egburie Primary School, Ozoro; and construction of six classrooms on Another source said: “The ongoing January 21, 2016 at Olordo Primary probe of UBEC has many School, Ozoro (N9, 300,000). dimensions. We have also discovered many contracts duly paid for but abandoned between 2012 and 2014. The others are: supply of customised Some fake contracts were awarded in library equipment to selected schools order to acquire slush funds for in Isoko North Local Government purposes known only to the former Area at N16,050,000; Supply of UBEC Secretary and the accomplice instructional materials in Isoko North directors. /South Federal Constituency(N14, 650,000); supply of customised “There were also reckless awards of equipment to selected schools in Isoko contracts under the guise of Federal Constituency(N15, 950,000); constituency projects between 2012 rehabilitation of six classrooms at and 2014. Egware Primary School, Ozoro (N9,200,928,90); and construction of “For instance, many unexecuted six classrooms and toilets as well as constituency projects were awarded supply of furniture at Itebighe by UBEC to some companies owned Primary School (N12, 988.099.23).
“They claimed that they only received
MSMEs reckon 2017 as Year of better access to funding, forex access By Samson Gabriel OPERATORS in the Micro, Small and Medium Enterprises (MSMEs) have reckoned 2017 as the “Year of better access to funding and foreign exchange.” In a review of the outgoing year, and outlook for 2018, Kuti George, President Lagos Chapter of Nigerian Association of Small Scale Industries, NASSI, said: “2017 is a turbulent year and things can only get better; the stability of the naira is good even though we are expecting it to improve, but it is not as volatile as before. “The Lagos State Employment Trust Fund, LSETF, has helped small businesses in the area of funding and the Bank of Industry, BoI, is also doing its job.
December 28, 2017
“We are not yet there but it will get better. We are moving in the right direction now.”
Is not being felt by the common-man; there are still signs of the recession everywhere; if things continue this way, it will be very difficult for business owners to survive.
According to him, more awareness is being created about Made-in-Nigeria products and more and more people are looking inward “We are also looking up to the government to now. continue to promote the ease of doing business which in the long run will help the MSMEs to Femi Egbesola, National President thrive better. Those are the things we are Association of Small Business Owners, looking forward to, come 2018,” he concluded. ASBON, also noted: “2017 is one of the toughest and most challenging years for the Also, the Small and Medium Industries (SMI) MSMEs sector in Nigeria. Group of Manufacturers Association of Nigeria “A lot of business had closed shops because of the harsh economic situation in the country but we are hopeful that it will improve; we are looking forward to a situation where power supply will improve. “We are also looking forward to a situation whereby the recession will leave our system. We are told that the recession has left but that
(MAN) looked back at the year in review and said 2017 was better in terms of the Federal Government series of intervention programmes introduced to improve the performance of the sector. Frank Jacobs, MAN President, stated: “Obviously, 2017 was much better than last year.
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DECEMBER 27, 2017
NEWS Afreximbank, ICD sign $100m agreement for SMEs By Ezekiel Enejeta The African Export-Import Bank ( Afreximbank ) says it has signed a $100 million financing agreement with the Islamic Corporation for the Development of the Private sector ( ICD ) to promote SMEs in Shariahcompliant countries. A statement by the bank on Wednesday in Lagos said that the facility being provided by ICD was for small and mediumsized enterprises ( SMEs ) in ICD-member countries. The statement quoted Mr Khaled Al Aboodi, Chief Executive Officer of ICD, as saying that the financing facility was a token in support of private sector businesses in ICDmember countries. According to Aboodi, the facility is for SMEs in the industrial, communication, technology, healthcare, construction and agricultural sectors. Mr. Amr Kamel, Executive Vice President at Afreximbank, said, “this facility will give a boost to our effort to implement our current strategy which prioritises intra-African trade, intra-African investments and export manufacturing of the labour intensive type. “It will also promote our knowledge in Islamic finance and provide us with additional manoeuvring capacity in terms of product offerings to our
clients. “We are delighted that ICD has chosen to partner with us in the pursuit of Africa’s trade development.
2017 Calabar's bikers carnival in Photos
“This collaboration will contribute to the objective of fostering sustainable economic growth in the member countries of our two institutions leading to job creation, contribution to export and Islamic finance development, among others.” ICD is a multilateral organisation and a member of the Islamic Development Bank ( IDB ) Group. The mandate of ICD is to support economic development and promote the development of the private sector in member countries through providing financing facilities and/or investments which are in accordance with the principles of Shari’ah. ICD also provides advice to governments and private organisations to encourage the establishment, expansion and modernisation of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s. Afreximbank, on the other hand, is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extraAfrican trade. The bank has it headquarters in Cairo.
Private refinery vows to end fuel scarcity By Cynthia Adigwe Bayelsa industrial businessman, Dr. Azibapu Eruani has rekindled hope in Nigerians that the hydraheaded malaise of fuel scarcity and acute unemployment would be reduced to its barest minimum, if not eradicated as licensed privately owned refineries commences operation. Eruani, President of the Azikel Group, conglomerate comprising Azikel Petroleum, Azikel Dredging, Azikel Power and Azikel Air said this while speaking with journalists in Yenagoa. Decrying the yearly fuel scarcity debacle, particularly during festive periods in the country, he pointed that this challenge has become embarrassing and biting, as it has virtually crippled economic activities in the country. The company disclosed this in a statement on Wednesday. Accordingly, Eruani noted that the challenge persists in the country because the efficiency level of existing refineries is low to satisfy consumers demand; just as the nation depends solely on the importation of fuel for local consumption. The Azikel Group President averred that the present administration led by President Muhammadu Buhari took a pragmatic step to redress low supply, importation of fuel and price hike, by issuing licenses to privately own refineries to Nigerian businessmen, Azikel Group inclusive. He noted that Azikel Petroleum has achieved 65% completion; and that it would soon begin operation, even as he noted that when all licensed privately owned refineries begin to dispense fuel it would shore up production capacity and fuel scarcity and insufficiency would be outlawed, and Nigeria would be like other countries where availability of petroleum product would no longer be an issue. Said he ‘’Azikel Petroleum refinery, phase 1, 12, 000 bpsd hydro-skimming refinery would produce, premium motor spirit, liquefied Petroleum gas, heavy fuel oil, Kerosene and diesel, which is scalable as it will increase geometrically in the phase 2 level of production with over 50,000 bpsd. ‘’Azikel Group is irrevocably committed to bridging the industrial deficit in Bayelsa, we are on a fast lane of making history, building the first hydro FINANCIAL WATCH
-skimming privately owned refinery in the state and the Niger Delta, and as we pioneer this course others would follow,” Eruani submitted. ‘’it might be difficult yesterday, but we have move beyond the point of difficulty to success, and we believe that fuel scarcity in Nigeria would be a thing of the past soon. He dismissed the erroneous impression that Bayelsa is a militant state, stressing that the people are enterprising and a whole lots of small and medium business is also thriving in the state. Eruani alluded that the multiplier effect of adequate supply of petroleum product in the country would drastically reduce the problem of unemployment, which is responsible for brain drain, illegal means to greener pasture, particularly the Libya returnees, as well as other in pathetic conditions faced by young Nigerians in other countries. He shared the optimism that synergy between the private sector and government at all levels is needed to advance technology driven industrialization to absorb graduates from our universities, as a well as create room for middle and low class manpower. The Azikel Group President noted that subsidiaries under the group have created industrialization in Bayelsa and the Niger Delta, stressing that with over 1000 employees from the six geopolitical zones and still counting, we have reduced unemployment challenge in the state, Niger Delta and in the country. ‘’We do not want Bayelsans, Niger Delta youths and Nigerians to be idle, we don’t want them to become illegal migrant begging for jobs and been lured into abominable social vices, such as prostitution and drug addict, cultist and robbery. To this end, Eruani noted that an industrialised state and nation is the cardinal key to stable economic prosperity, which would in turn create institutions that would stamp out unemployment, even as he pointed that Azikel Group is on a mission to create the right values towards industrial growth, bring unemployment to its lowest ebb and promote financial freedom among all Nigerians.
December 28, 2017
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DECEMBER 28, 2017
NEWS
Germany based Nigerian engineer tasks FG on energy conservation By Ezekiel Enejeta Leading environmental expert and Germany based Nigerian engineer, Victor Aruwah, has called on the Nigerian government through the ministry of environment to adopt new ways of ensuring an increase in awareness and action towards energy conservation in Nigeria. He made the call in Germany after he successfully led some students to implement an energy saving initiative at the the US Army Department of Public Works in Germany. The initiative, called the Green Boot competition, according to a report on US Army website, was to encourage staff implement the best daily practices to conserve energy.
In his analysis, engineer Victor Aruwah showed the students that he had installed meters in each building which measured consumption levels prior to the Green Boot competition, without staff knowing, so that he could get an accurate baseline measurement. “In comparison, consumption levels during the Green Boot competition decreased in both the garrison building and the Department of Public Works building —
Drastically in the latter”, Aruwah said.
environmental preservation consciousness in the minds and hearts of young people of school In his statement following the age in Nigeria. He said “while I am successful implementation of the doing this here, I am also thinking energy saving and about how similar initiative can be environmental awareness implemented in Nigeria. I strongly program, engineer Victor believe this kind of program will Aruwah called on the Nigerian help our young people understand Ministry of the Environment and their role in preserving energy and others concerned to look at the in keeping the planet safe”. He possibility of putting in place called on environmental agencies similar initiative in Nigeria with and other relevant bodies in a view to instilling Nigeria to see the possibility of
SEC restates commitment to investor education
And to implement the program, seven student experts from Ramstein High School Environmental Club in Germany were invited to examine the two sections of the Department of Public Works building and provide feedback on energy saving levels within the period of the competition.
By Cynthia Adigwe The Securities and Exchange Commission has pledged to work with the media to ensure proper reporting of the capital market in order to enlighten and educate the investing public.
The Ramstein High School Environmental Club, according to the report, achieved Green Boot certification in 2016 after reducing energy consumption at their school building by five percent over the course of one school year, saving thousands of dollars in the process. With energy reduction and awareness as its primary focus areas, the environmental club has already continued its energy reduction efforts in 2017 by initiating a plastic water bottle reduction campaign, encouraging students and teachers to recycle their plastic water bottles and switch to reusable ones.
The Acting Director-General, SEC, Dr. Abdul Zubair, stated this while addressing financial journalists in Abuja. Zubair commended the media for their assistance so far in propagating the initiatives of the commission and enjoined them to continue to support SEC in its quest to educate and enlighten the investing public, as means of further deepening the market.
According to the organizers of the competition, to further contribute to energy conversation outside of their school environment, the student were tasked to bring their experience and expertise to the US Army garrison and were required to inspect the two buildings competing in the challenge, accompanied by the Department of Public Works Senior Facility Engineer Gregory Williams and engineers Konstantin Gross and Engineer Victor Aruwah.
Some of the initiatives, he stated, included direct cash settlement, dematerialisation, consolidation of multiple accounts and e-dividend Mandate Management System; as they promote transparency, protect and enhance investors’ confidence in the capital market. Zubair said, “We have rolled out a number of initiatives among which is the e-dividend campaign where investors will now be paid their dividends directly to their bank accounts. E- dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors. Rather than send it by post, registrars will just wire it to the investor’s bank account.’’
During the inspection, the students made suggestions about how staff of the Department of Public Works could better conserve energy. Some of the suggestions included unplugging appliances such as toasters and microwaves when not in use, turning off or reducing the lights in a room when natural light is coming in through the windows and turning off monitors at vacant desks.
“This will help in no small measure, reduce the problem of unclaimed dividends and also ensure that investors receive the benefits of their investments in the capital market timely.
Police Parade 30 Inter-State Robbers, Kidnap Suspects In Lokoja
“We also have the direct cash settlement, dematerialisation, Nigerian Capital Market Development Fund, National Investors Protection Fund, among others, which are all in consonance with the present administration’s economic strategy focused on deepening the capital market as a vehicle for encouraging a private sector-led economy with enhanced productivity.”
By Samson Gabriel The Police on Wednesday in Lokoja paraded 30 interstate armed robbery and kidnap suspects terrorising Kogi and the neighbouring states. Parading the suspects, the Force Public Relations Officer, Jimoh Moshood (CSP) said those arrested included some who allegedly kidnapped and killed an expatriate engineer with Dangote Cement Company.
The SEC boss, therefore, enjoined all shareholders to take advantage of the initiatives introduced in the capital market, which are aimed primarily at strengthening the market and accelerating economic development.
Moshood said at the Kogi Police Command headquarters that the arrests were in response to the InspectorGeneral of Police (IGP) Ibrahim Idris’ directive to rid the nation of crime.
Ecobank CEO praises Okpekpe road race upgrade
“The IGP directed the Commissioner of Police in the state, Ali Said Hangs to quickly address armed robbery, kidnapping, social miscreants, cattle rustling, cultism on Auchi-Okene-Lokoja, Lokoja-Ajaokuta-Anyigba, KabbaOshokoshoko-Obajana highways.
By Ezekiel Enejeta
The Managing Director/CEO, Ecobank Nigeria Limited, Charles Kie, has commended Pamodzi Sports Marketing, organisers of 10 kilometre Okpekpe International Road Race on the recent upgrade of the Road Race to silver Labe. The upgrade was done by International Association of Athletics Federations (IAAF).
“Effort of the commissioner and his team through vigour, dedication, utmost professionalism and passion for the job, led to the arrest of the 30 suspected criminals and recovery of several weapons, he said. He said four of the suspects were alleged to have on Oct. 23, kidnapped an expatriate, Mr Jose Machada, a construction engineer with Dangote Cement Company, Obajana.
He said the elevation does not only lend credence to the standard and popularity of the Race, but also represents a milestone in the development of sports in Nigeria.
Moshood said that the suspects killed the expatriate when the ransom they demanded was not forthcoming.
Kie said the upgrade further justifies Ecobank’s consistent support to the annual event. He reiterated that the Okpekpe’s vision of a top quality competition that affords top athletes from across Africa the opportunity to compete and socialize ties with the bank’s panAfrican posture.
“Police operatives attached to Special Anti-Robbery Squad, Kogi State Command, in synergy with the DSS promptly swung into action and arrested the four suspects,’’ he said. He said one of the suspects killed a senior staff of Dangote Group of Companies, Istifanus Bello, for allegedly trying to shortchange his kidnap gang.
He maintained that the bank supports and encourages creativity and excellence among Africans, especially the young people, who are the future of the continent.
The company worker was said to have been killed for paying them N5 million instead of N7 million ransom for the release of another staff earlier abducted by the suspect and his gang.
In his words “we are delighted to be a strong part of the success story of the Okpekpe Road Race, especially on this latest elevation to the Silver Label Race, which is the first to be so recognised in West Africa”.
The police image maker said two other suspects were arrested on Kano road, Idah, for terrorising the residents through cultism while another was arrested in Okene for kidnapping and cattle rustling. He noted that during interrogation the suspects confessed to participating in the killing one Haruna Baso, a resident of Achoze, and carting away the cattle of the deceased.
The annual Okpekpe international 10km Road Race has had Ecobank Nigeria as its major banking partner. The Road Race is the first and only road race in Nigeria that has been granted full membership of Association of International Marathons and Distance Races (AIMS) and recognised as one of the prestigious road races in the world.
Moshood listed items recovered from them to include, 11 AK-47 rifles, two Beretta pistols, two Revolver pistols, 334 rounds of AK-47 live ammunition, a dagger, a cutlass and military camouflage uniforms. The force public relations officer said the suspects would soon be prosecuted and called on parents to monitor their wards.
FINANCIAL WATCH
providing energy saving education and need to increase environmental awareness among school children in both private and public schools. environmental preservation consciousness in the minds and hearts of young people of school age in Nigeria. He said “while I am doing this here, I am also thinking about how similar initiative can be implemented in Nigeria. I strongly believe this kind of program will help our young people understand their role in preserving energy and in keeping the planet safe”. He called on environmental agencies and other relevant bodies in Nigeria to see the possibility of providing energy saving education and need to increase environmental awareness among school children in both private and public schools.
December 28, 2017
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...Cont’d from page 1 examination because they do not have equipment to do the examination. “The question here is that if they do not want to use it, why did they made provision for scanning. We do not need to know why they do not want to use it but they do not want to use it because they are not good. Let them prove that they are good, we will now ask them why they are not using it.” On claims by the Nwala that they are good and that they scan about 50 containers a day, he said “That is a bloody lie.” Efforts to speak with APMT Communications Manager, Austin Fischer, proved abortive as he could not be reached on phone neither did he respond to a text message sent to him.
Ogun civil servants urged to embrace agribusiness By Tosin Adesoji The Ogun State civil servants have been urged to explore the advantages of agribusiness to improve their living standard rather than depend solely on personal emoluments. Commissioner in the State Civil Service Commission, Alhaji Surajudeen Olusesi, gave the admonition at OkeMosan, Abeokuta, at a quarterly training organised by the State Civil Service Commission for civil servants with the theme, “Agribusiness: A Way of Contributing to the Economy.’’ Olusesi said civil servants in the state constituted a large population and have the tendency to boost the economy if they strategically engage in agribusiness as alternative means of generating income aside from their official pay. In his contributions, Director of Planning, Research and Statistics from the Ministry of Rural Development, Mr. Adekunle Oyesanwo, described agribusiness as the sum total of all operations that entail the production and distribution of farm produce. He said the role of government was to formulate policies and provide enabling environment that would promote the development of agribusiness enterprises through the provision of inputs, export and general trading. Adekunle maintained that the success of any agricultural venture depends on the individual contemplating on establishing an agribusiness venture and how well the business is coordinated. Responding, one of the participants, Mr. Oduntan Ibikunola, from Ogun State Management and MultiPurpose Credit Agency (OSAMCA), appreciated the Ogun State Civil Service Commission for putting in place such training, adding that he has benefited a lot from it. Another participant, Tokunbo Salami, from Ogun State Road Management Agency (OGROMA), said he was happy to be part of the training, describing it as an eye opener to huge potential of agribusiness in the country.
NB wins Sectoral Leadership Award By Gabriel Samson Nigerian Breweries Plc has been honoured for its outstanding performance in the Consumer Goods Sector of the Nigerian economy at the 2017 Pearl Awards. The company was presented with the 2017 Sectoral Leadership Award in the Consumer Goods Category (Breweries) at the event, which held at the Grand Ball Room, Eko Hotel and Suites, Victoria Island, Lagos. While commenting on the award, Corporate Affairs Adviser, Nigerian Breweries, Kufre Ekanem, stated: “We view this award as a recognition of our previous performances and as our call to duty to keep delivering value. As Nigeria’s foremost brewer, our commitment to our shareholders and other stakeholders drives our passion for high performance and delivery of quality, not just in our product offering, but also in all our interactions with Nigeria. We remain committed to these values.” Ekanem thanked the organisers of the award for the recognition and congratulated them for sustaining the initiative in the last 22 years. Nigerian Breweries emerged winner in the Consumer Goods (Breweries) category which Guinness Nigeria Plc and International Breweries Plc were also nominated for.
NIMASA to release maritime industry forecast in Q1 By Ezekiel Enejeta As part of the initiative to reposition the maritime sector for greater efficiency in line with International best practices, the Nigerian Maritime Administration and Safety Agency (NIMASA) will release the empirical forecast that will determine the outlook of the industry in Nigeria by the first quarter of 2018. The Director General of NIMASA, Dr. Dakuku Peterside, who disclosed this in Lagos recently further stated that the Nigeria forecast would deal with how developments on the international scene affects the industry in Nigeria, which would also serve as a guide for investors and stakeholders in the maritime sector. Peterside noted that the forecast would be released from a holistic perspective in order to know areas of advantage that will be of immense benefit to stakeholders and industry players, both locally and internationally. “On the positive side, it will look at where the opportunities will be in 2018 and 2019; will greater investment in oil and gas translate to more demand for offshore support vessels? What are the industry perspectives? What government and its agencies should do to attract more investment in the industry, among other salient issues,” he said.
FINANCIAL WATCH
DECEMBER 28, 2017
Motorists decry crisis as illegal vendors make fortune in FCT DPR closes two filling stations in C’River By Haruna Magaji As the effects of the lingering fuel scarcity bite harder on the citizenry, some unpatriotic Nigerians have made and still making huge fortunes from this unsavoury situation by vending the product at very exorbitant rates in the Federal Capital Territory. While motorists groan over the unavailability of petrol in filling stations, illegal vendors, popularly known in the local parlance as black marketers, have swooped on the streets of Abuja dispensing the product between N400 and N500 per litre to the already weary citizens. By implication, they are becoming the gainers of the crisis, smiling to the banks with good fortunes.There were also indications yesterday that attendants were equally getting gratification as high as N1000 before selling to people with jerry cans. The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, recently accused the illegal vendors of sabotaging efforts to end the crisis, saying most of the peddlers permanently put their vehicles in queues at petrol stations, procure product, discharge content in containers and later rejoin the queues. Curiously, motorists and residents of the FCT are accusing the security agencies and concerned authorities of aiding and abetting perpetrators of the illicit business. According to them, the ubiquity of the black marketers remains an eyesore. A motorist, who identified himself as Shola Babatunde, decried that the product which was nonexistent in filling stations was readily available at street corners within the city. A commercial transporter, Wasiu Sulyman, described the situation as unfortunate, stressing that the sabotage would continue if government refuses to act timely.Another motorist, Edwin Uche, blamed government for alleged shabby handling of the entire crisis. However, Department of Petroleum Resources (DPR) has shot two fuel stations in Calabar for selling above the N145 official pump price. The affected facilities were reportedly dispensing the product at the rate of N190 to N205 per litre.The Controller of DPR in Cross River, Bassey Nkanga, told reporters that the big hammer was wielded due to infraction.
United States to sell A29 Super Tucano aircraft to Nigeria
Banks’ borrowing from CBN increases by 52% in December By Ezekiel Enejeta Liquidity challenges in the economy made the amount of money that commercial banks borrowed from the Central Bank of Nigeria to increase by 52 per cent in the first three weeks of December, data obtained from the CBN website showed on Monday. The CBN Standing Lending Facility window data revealed that the Deposit Money Banks in the country borrowed N2.305tn from the regulator to cover their cash shortfall positions between December 1 and 22, 2017. This represents a 52 per cent increase over the N1.515tn the nation’s lenders borrowed from the apex bank to cover their positions between November 1 and 22, 2017. Commercial banks use the CBN’s SLF to support their liquidity shortfalls and meet trading obligations on short-term basis. The DMBs borrowed N1.019the, N671bn and N614bn through the CBN’s SLF window during the first, second and third week of December respectively, the central bank data showed. While the N614bn borrowed last week was eight per cent lower than the N671bn loan obtained the penultimate week, the latter was 34 per cent lower than the N1.019tn the banks borrowed from the CBN three weeks ago. The CBN SLF data showed that banks borrowed N231.92bn, N217.08bn, N228.26bn, N178.28bn, and N164bn, respectively from the central bank between December 4 and 8, 2017. Between December 11 and 15, the amounts borrowed were N178.02bn, N135.3bn, N123.77bn, N116.73bn and N117.64bn, respectively.
The United States (U.S.) has accepted to sell one of its A29 Super Tucano aircraft to the Federal Government to boost the ongoing counterinsurgency operations in the North East. The U.S. Ambassador to Nigeria, Stuart Symington, presented the Letters of Offer and Acceptance (LOA) to the Chief of Air Staff, Air Marshal Sadique Abubakar on behalf of the Federal Government. A statement signed by NAF’s Spokesman, Air Vice Marshal Olatokunbo Adesanya in Abuja, yesterday said the LOA represents the official U.S. Government offer to sell U.S. defence articles and services to the Nigerian government. While presenting the LOA to Abubakar, at NAF Headquarters in Abuja, the U.S. Ambassador noted that peaceful existence in Nigeria was strategic to the security of the entire West African sub-region in particular and the entire world at large. Ambassador Symington expressed the commitment of the U.S. government to helping Nigeria completely defeat the Boko Haram terrorists and also eliminate all forms of terrorism from its territory.He, however, conveyed the U.S. Government’s belief that the capacity of the NAF could greatly be enhanced by the acquisition of the Super Tucano Aircraft, adding that “the U.S. would therefore continue to support the NAF in its capacity building efforts, including the timely supply of needed aircraft spares.”
Some analysts attributed the trend to liquidity squeeze and banks’ demand for funds to participate in the special foreign exchange auctions conducted by the regulator. In November, the commercial banks borrowed N2.77tn with an average amount of N154bn. The highest and lowest amounts the lenders borrowed from the central bank last month were N260bn and N108bn, respectively. Economic and financial experts said that the CBN’s lending to banks had increased in recent times on the back of liquidity issues in the economy. Banks with liquidity challenges are often seen more on the CBN SLF window than others. For example, Skye Bank Plc was said to be more frequent on the CBN SLF window months before the CBN sacked its board and appointed a new one. The apex bank, which is described as a lender of last resort, has been accused of lending more to the Federal Government in recent months. A member of the CBN Monetary Policy Committee, Dr. Doyin Salami, had recently accused the central bank of acting like a “piggy bank” with its funding of the government. Salami said he was struggling to understand the apex bank’s economic rationale for such action. Monetary data showed a sharp rise in the CBN’s financing of the government deficit this year, Salami said after the MPC meeting some months ago. He stated that the CBN’s claims on the government had risen 20-fold to N814bn from the end of 2016, while its purchases of government treasury bills increased by 30 per cent to N454bn.
Between December 18 and 22, the banks borrowed N119.836bn, N132.651bn, N163.135bn, N110739bn, and N87.892bn, respectively.
“It is clear that the CBN has provided piggy-bank services to the Federal government. While I still wonder what the underlying economics is, I sincerely hope it works,” Salami added.
During the last week of October and November, the CBN data showed
The Federal Government is struggling to raise enough revenue amid economic challenges.
Christmas tragedy: Policeman CSCS canvasses strong financial market infrastructure shoots colleague dead in Yenagoa By Haruna Magaji The Central Securities Clearing System has stressed the need for a strong financial market infrastructure, saying it will contribute to the stability and growth of the financial system as a whole.
By Samson Gabriel
That the banks’ borrowing from the apex bank rose significantly.
It likened a well functioning financial market infrastructure to the human backbone, explaining that it would ensure fast and smooth movements, channel relevant information-settlement information, protect the channels for the transmission and reduce risk. Problems in the financial market infrastructure, the CSCS said, could lead to dysfunctions in the financial market, which meant lack of options for transactions; misleading information and disturbed information channel; and systemic risk. It listed financial market infrastructure to include payment system (sets of instruments, infrastructure, procedures, and rules for the transfer of funds; central securities depository (providing securities accounts, central safe keeping services, and asset services); securities settlement system (enabling securities to be transferred and settled by book entry according to a set of predetermined multilateral rules). According to the firm, it also involves central counterparties (which interposes itself between counterparties and contracts traded in one or more financial markets through innovation; therefore ensuring the performance of open contracts); and trade repository (an entity that maintains a centralized electronic record of transactional data). The CSCS, this year, said it would increase automation and improve efficiency in the Nigerian capital market with the deployment of the TCS BaNCS, a world-class multi-asset class solution for securities depository, clearing and settlement. The solution replaced the NASDAQ Equator which had been in use since inception of the company in 1997. The solution change, according to CSCS, is core to the company’s business transformation initiatives which aim at improving efficiency in depository, clearing and settlement services.
December 28, 2017
By Cynthia Adigwe A police officer in Yenagoa was inadvertently shot and killed by a fellow policeman during a gun duel between the police and suspected cultists. An eyewitness who preferred anonymity said on Tuesday that the incident occurred on Christmas day at Obele Area of Ovom in Yenagoa, leaving residents in apprehension. According to the eyewitness, trouble started when a misunderstanding among some members of a cult group cultists degenerated to a fight, resulting in gunshots which eventually attracted a police patrol team to the area. The Police Command Spokesman, DSP Asinim Butswat, who confirmed the incident, said the killing was shocking. “Yes, the incident was between cultists but as the police went to find out what was going on, the cultists started shooting and one of the policemen mistakenly shot an officer. “Though, we are yet to get the full details because some of our men, who were at the scene, are supposed to brief us on the matter. “Nevertheless, the Police are intensifying efforts to ensure a crime-free environment for people in Bayelsa this period of Christmas celebration; we deployed over 4,000 personnel for patrol. “We adopted some strategies like ‘Cordon and Search’; I must tell you, our men and women are fully on operations to safeguard lives and property,” Butswat said. The spokesman urged the residents to continue with their lawful endeavours and support the police by providing timely and credible information on criminal activities.
“I also urge them to continue to enjoy the Christmas celebration and steer clear of every criminal activity,” he said.
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of net clearing obligations from Central Securities Clearing System (CSCS), cheques, cards Automated Clearing House (ACH), NIBSS Instant Payment (NIP), National Electronic Funds Transfer (NEFT) and other clearing instruments shall be through the account Besides, such a Settlement Bank, will have the ability to offer agency facilities to other banks and settle on their behalf, nationwide. It will equally have a branch network in all the CBN locations even as the guidelines will be reviewed from time to time. It said that banks that meet the specified criteria will continue to be designated as “Settlement Banks”. This implies that non-settlement banks, called “Clearing Banks” will continue to carry out clearing operations through the settlement banks under agency arrangement. In the circular titled: Extension of Settlement Banking Arrangement to all Clearing Sessions’, Fatokun recalled that the CBN introduced settlement banking framework on April 1, 2014. “The framework categorised deposit money banks into settlement and non-settlement banks. The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during sessions 1 and 2.” He said that non-settlement banks should going forward, enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly. “The aforementioned framework has been working well and contributed to the relative stability in the net settlement operations for settlement of clearing sessions 1 and 2 on the Real-time Gross Settlement System (RTGS),” he said. “In view of this, it has become imperative for the bank to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018. Specifically, the settlement of net clearing obligations from CSCS, cheques, cards ACH, NIP, NEFT and other clearing instruments shall be through the account of settlement banks only”. The CBN advised settlement banks to update the agency agreements with their respective nonsettlement banks. “Merchant banks that do not have settlement banks should appoint a settlement bank and inform the CBN Director, Banking and Payments System Department on or before December 15, 2017 with a copy of the letter from the settlement bank, accepting to settle for them,” it said.
Tokyo stocks close lower on profit-taking By Ezekiel Enejeta Tokyo stocks fell Tuesday on late profit-taking, with investors keeping to the sidelines as major global markets remained closed for the Christmas holidays. “As trading has gotten thinner with a lack of fresh trading factors, investors appear (to be) cashing in on their recent gains,” said Hikaru Sato, senior technical analyst at Daiwa Securities. “Sluggish trading is expected to continue for now as the market is in holiday mode,” Sato told AFP. The benchmark Nikkei 225 lost 0.20 percent, or 46.49 points, to close at 22,892.69 while the broader Topix index was down 0.27 percent, or 4.92 points, at 1,827.01. “It is difficult to see a clear direction in the market as foreign investors are absent from trade with transaction volumes low,” Okasan Online Securities said in a commentary. Investors are awaiting the release Thursday of minutes from the Bank of Japan’s policy meeting last week, it said. The dollar changed hands at 113.29 yen, almost unchanged from 113.25 yen in Tokyo late Monday.
DECEMBER 28, 2017
Sack those responsible for ongoing hardship, petrol scarcity: Nigerians tell Buhari By Cynthia Adigwe Nigerian have called on President Muhammadu Buhari to deal decisively with those responsible for the current scarcity of petrol. Some of the Nigerian who took to their twitter handles prayed the President to punish those who by their actions or inaction, caused the ongoing scarcity. Replying to a Christmas Day message from President Muhammadu Buhari on his twitter handle @MBuhari, some of them particularly called on the President to sack any of his appointees responsible for the ongoing hardship. President Buhari on Christmas Day wrote on his handle: “I wish all Nigerians Happy Christmas celebrations. “As I noted yesterday, the fuel scarcity that has caused many of you to spend this period on fuel queues is deeply regretted.All relevant agencies of Government are working round-the-clock to bring relief to you. But his message was greeted with negative replies, some calling for his resignation as Petroleum Minister and others urging him to reshuffle his cabinet and take on more productive ministers. They urged President Buhari to quickly do something to redeem his government and the ruling All Progressives Congress (APC) in line with all its campaign promises.
A twitter user, Victor Lawal, with handle @Vlawal, said that the President should stop apologising for the long queue ocassioned by petrol scarcity and sack non-performing appointees. “Oga please stop giving excuse. Who have you fired? The #FuelScarcity is primarily a failure of your government and until heads roll, I have stopped taking you serious. No difference between you and previous governments.
For Charles Ameh, with twitter handle @engrameh, he believed that the only solution to the problem of scarcity of petrol was for there to be consequences for failures.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, climbed 0.43 percent, or 8.13 points, to 1,892.02. “The markets regained some of the ground lost in previous sessions but it is hard to predict if they will maintain steam as the end of year approaches,” said Zhang Yanbing, an analyst with Zheshang Securities. South Korean shares closed down 0.54 percent on profittaking by investors following last week’s rally.
FINANCIAL WATCH
By Haruna Magaji
By Cynthia Adigwe
The Rivers State Government and Shell Nigeria Gas (SNG,have signed a Memorandum of Understanding (MoU) for the distribution of gas to industries in the Greater Port Harcourt area and its environs.
Information and Culture Minister Alhaji Lai Mohammed has shed light on the approval of $1 billion by the Nigerian Governors’ Forum (NGF) to fight insecurity nationwide.
MoU sets out broad terms and conditions to guide cooperation between the two parties in the development of new gas distribution opportunities in the Greater Port Harcourt area and its environs, in addition to its existing gas distribution network in the State.
He said the money was approved to assist the military in tackling serious security challenges, including the Boko Haram insurgency, illegal oil bunkering, kidnaping and cattle rustling.
“The agreement is key to government’s efforts aimed at boosting industrialisation in Rivers State,” said Richard Hart, Permanent Secretary, Ministry of Energy and Natural Resources, who signed for the government. He said: “We believe that the agreed terms in the MoU will lead to the signing of the “Build-OperateOwn-and Transfer” (BOOT) agreement early next year, so businesses can begin to reap the benefits of a steady source of energy.” SNG Managing Director, Ed Ubong, who also signed for hiscompany, said the partnership was an opportunity to further promote gas as a more reliable, cleaner and cost-effective alternative to liquid fuels in the Niger Delta. “Gas is the key to boosting industrialization. It is no coincidence that states that currently do well on internal revenue generation have also encouraged the use of gas to boost industrial output, which in turn provides employment and improved livelihood, Obong said, adding that SNG is grateful to the Rivers State government for the foresight and co-operation in signing the MoU, and will reciprocate the gesture by taking every step to fulfill its obligations in the agreement. In his comment, Country Chair, Shell Companies in Nigeria, Osagie Okunbor harped on the leadership role of Shell in the domestic gas market, saying, “for more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge resources and it is good to see SNG continuing in the tradition to grow the domestic gas market and also help to improve lives and earnings in Rivers State.”
Access Bank gets CBN’s sustainable banking awards By Ezekiel Enejeta
Access Bank Plc
Access Bank Plc has received top honours at the inaugural Nigeria Sustainable Banking Awards.
For another user Oluwatobi John, he prayed the President to make the agencies work by setting up effective rewards and punishment systems.
The bank won in four categories during the award presentation in Lagos.
Guinness lifts small businesses, creates 13 millionaires
The categories are: Sustainable Bank of the Year, Sustainable Transaction of the Year (Oil and Gas Sector), Sustainable Transaction of the Year (Agriculture) and Excellence in Women Economic Empowerment. The awards were conferred by the Central Bank of Nigeria (CBN) in recognition of Access bank’s outstanding success and leadership in Nigeria’s sustainable banking development.
By Ezekiel Enejeta
Guinness Nigeria Plc said it has created 13 millionaires through its just ended, ‘Go Get It’promo aimed at helping the growth of small-scale businesses.
The idea of the promo, according to the company, is to help consumers who have business ideas but required some capital to start. Aside from the millionaires, other consumers were rewarded with N100, 000, N5, 000 and millions of airtime.
Access Bank’s Group Managing Director/CEO, Herbert Wigwe, said: “We are truly honoured to have been selected as the overall winner in all the categories of this prestigious award. Sustainability is embedded into every aspect of our business operations. It is simply a way of life for us at Access Bank. It is inspiring to receive recognition for our longstanding success in adhering to sustainable banking principles.”
Brand Manager Malta Guinness, Ifeoma Agu, said: “This is such an exciting time for Malta Guinness in Nigeria.
These honours cap-off a year during which the bank has received 14 awards across various categories. Some of these awards are the Most Sustainable Bank of the Year Award by World Finance for the seventh time; the Most Outstanding Business Sustainability Award by Karlsruhe Sustainable Finance Awards for the second consecutive time; five awards presented at the recently-concluded Sustainability, Enterprise and Responsibility Awards (SERAs) including Most Responsible Company of the Year Africa (Overall Winner), Best Company in CSR/Sustainability in West Africa.
Coming straight off the back of an incredible promotion where we were able to give away millions in naira cash prizes, this new set of activity from Malta Guinness will blow the minds of Nigerian consumers.
Wigwe said added: “While we are delighted by the numerous accolades, this level of recognition from our regulators is, particularly, significant because it serves as validation that our tireless efforts are essential to the development of Nigeria’s sustainability journey.”
The company said that through its Malt drink ‘Goodness to Greatness’ campaign, which, aims at celebrating Nigerians who use their positive can-do attitude to turn goodness into greatness.
To the minister, $1 billion is not too much for the military to fight insecurity. Security of lives and property is at the core of the government’s existence, he said. He said while Boko Haram had been largely degraded, as claimed by the critics, fighting such an asymmetric war is costlier than fighting a conventional war. The minister reminded the critics that the war against terror had never been fought with budgetary provisions. Mohammed spoke with reporters in Lagos on the motivation for approving the cash and its anticipated impact on the capacity of the military to frontally confront the multi-dimensional security challenges. Justifying the financial assistance to the military, the minister said it had played a dominant role in in resolving the various security problems across the federation. Mohammed said: “The annual budgetary allocation to the military is not commensurate with the internal security challenges we face, for which we have had to continuously rely on the military to assist the police and the Civil Defence Corps. When insurgents take over a chunk of our nation’s territory, we turn to the military. When the farmers/herders clash escalates, we turn to the military. “When kidnappers up their game, we turn to the military; when illegal bunkerers and pipeline vandals are seeking to overwhelm our oil production and export, we turn to the military; when ethno-religious clashes occur, we turn to the military. But when it is time to give the military the resources it needs to function, we say it is a waste of scarce resources; we come up with spurious reasons to deny the military its due.”
Mohammed said: “The aircraft being used for the war, including fighter jets and helicopters, altogether, consume 64,021.08 litres of fuel per day. With the aircraft flying a total of about 30 sorties a day, and at N275 per litre, it costs a total of N15,153,428.25 daily to fuel the aircraft.
Another user who goes by the name Process Advocate on twitter also reiterated that there was need for non-performing employees and appointees of the president to be sacked.
She wrote: Baba we voted for you to change the way things are done in NIG. You have indolent and incompetent array of staff, but can’t change them. Your appointees mess your govt up but it’s ok by you. No price for incalculable damage they do. We can no longer defend these.
Mohammed took exception to the criticisms of the approval by the opposition, saying that they were unnecessary, uninformed and in bad faith.
“The scriptures say to whom much is given, much is expected. That also presupposes that to whom much is expected, much is given. The Nigeria Governors Forum acted wisely in approving the withdrawal of 1 billion dollars from the Excess Crude Account (ECA) to fight Boko Haram and other security challenges in the country.”
“Under your government, the consequence for failure is to keep the job and keep failing. This is shameful.
Chinese stocks ended higher on Tuesday, led by heavyweight banking and gas-related shares. The benchmark Shanghai Composite Index advanced 0.78 percent, or 25.66 points, to close at 3,306.12.
Facts about $1b security vote distorted, says Federal Govt
She wrote: “How can the country move forward when there is never consequence for failure and ineptitude? How many Ministers have really delivered in their role?
Some blue-chip shares were lower, with Nintendo losing 1.60 percent at 41,680 yen and Canon trading down 0.47 percent at 4,398 yen. Mitsubishi UFJ Financial was down 0.45 percent at 836 yen while its rival Sumitomo Mitsui Financial slipped 0.67 percent to 4,884 yen.
Rivers, Shell sign MoU on gas supply
December 28, 2017
“The spares for the aircraft from January to November 2017 cost N20,019,513,739.88, while consumables for the aircraft, and here I am talking of engine oil, and plugs amounted to N3,863,600 monthly and N46,363,200.00 yearly. What about the cost of ammunition? Just for 42 days, from 5th November to 17 December, the cost of ammunition was over 5 million dollars. “Since we are using the Air Force as a reference point here, what about the cost of acquiring Air Force platforms? For example, the 12 Super Tuscano aircraft recently approved for sale to Nigeria by the US Government costs a whopping 490 million dollars, yet this is government to government contract, and the costs of spares, munitions and other consumables are not included. “The costs stated above are for the air force alone and restricted to operations in the Northeast alone. We have not even talked of the army or the navy, which are also fully involved in tackling internal security challenges. Nor have we included the operating cost of the Nigerian Air Force in the Niger Delta to curb pipeline vandalism, in the Northwest to contain cattle rustlers, in the Northcentral to curtail herdsmen and farmers clashes or kidnapping, armed robberies and separatism in other parts of the country.”
Noting that the opposition has the right to offer constructive criticism, Mohammed said that such a right was not a liberty to distort facts, engage in crass sensationalism and play politics with national security.
He chided those viewing the security fund from the prism of partisanship for wrong perception, pointing out that the military, as a national institution, serves all Nigerians, irrespective of their religion, ethnicity or political party. Mohammed said if the military had been better equipped to tackle Boko Haram in the early days of the insurgency, thousands of lives, including service men’s, could have been saved and the war would have ended long time ago. He added: “If the funds meant to equip the military have not been diverted into private pockets, there may be no need today to withdraw any money from the ECA for that purpose.”
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FINANCIAL WATCH
NBS: Expect worse unemployment figures from Q4 By Ezekiel Enejeta
DECEMBER 28, 2017
‘Tackling youth unemployment key to improving our economy’ By Haruna Magaji
The National Bureau of Statistics (NBS) says the number of unemployed people in Nigeria will increase in the fourth quarter of 2017. The bureau made this prediction in the third quarter unemployment report, which was recently released on its website. “An economic recession is consistent with an increase in unemployment as jobs are lost and new jobs creation is stalled. The unemployment rate, induced by a recession, typically peaks about 15-18 months after the beginning of a recession or four-eight months after the end of a recession before it returns to its pre-recession trend,” the report read.
Lagos State is set to undertake new investments to boost youth employment. In this interview with Daniel Essiet, Commissioner for Wealth Creation and Employment, Babatunde Durosinmi-Etti, gives an insight into government’s programmes aimed at reducing unemployment. How is Lagos tackling youth unemployment? As you are aware, rapid urbanisation comes with its attendant problem of high youth unemployment. This is expected, Lagos being the commercial and economic nerve centre of Nigeria. While the Lagos boasts of high potential for growth of small businesses, it battles the negative effect of development which is high youth unemployment. Bearing this in mind, Governor Akinwumi Ambode on assumption of office, decided to set up the Ministry of Wealth Creation and Employment, first of its kind in the entire federation that will address these issues. He reasoned that if the state is to grow small businesses, it must create an enabling environment for them to operate, with access to finance and market . When they grow, they will be able to employ more people. On the other hand, a lot of youths have problems of employability skills. We have lots of unemployed graduates. The question is, are they unemployed because there are not jobs? We need to look at the causes of under employment, to find out whether the situation is structural, or are there jobs the people cannot fill?
We discovered also among youths that the spirit of volunteerism is no longer there. When you volunteer, you are learning something.
It would be recalled also that following the establishment of banks along the Assumpta Avenue, some residents, including commercial motorcyclists, started calling part of the Avenue, Bank Road.
A young graduate lawyer will leave school with the mindset of getting a job with an established law firm. With the situation in the economy, he might stay home for three years without getting his dream job.
A staff of one of the banks, who spoke to Vanguard on strict grounds of anonymity, said that most of the banks bear Assumpta Avenue as their official address.
Rather than stay home without a job, it will pay him to volunteer with a legal firm. If he continues to stay home, he will become rusty.
He stressed that “it is this Avenue that Governor Rochas Okorocha has sadly changed to Muhammadu Buhari Road”.
If he decides to volunteer with a legal firm, he will not only learn something, he will be considered when there is a vacancy within the firm. He may not earn a salary, but he gains experience.
Another resident of Owerri, Bro Ikay, equally lamented that Okorocha has changed the names of other major roads in Owerri.
We are trying to reorient our youths about volunteerism, to go out and volunteer if they want to get jobs. What about school leavers? We also have school leavers who couldn’t advance because of family financial difficulties. How do we address it? There are two things we are trying to achieve through the school system. While in school, we want the system to produce students who can be employed or can become entrepreneurs. They can come out to work for people or set up their businesses. We are going back to schools to campaign to inculcate entrepreneurship skills in students. That is why we are working with Lagos State Technical and Vocational Education Board (LASTVEB) to create youth entrepreneurs clubs in technical and vocational colleges in the state.
“Wetheral Road is now Sam Mbakwe Road, while Okigwe Road has been renamed Nnamdi Azikiwe Road”, Bro Ikay said. Continuing, Bro Ikay recalled that Okorocha had earlier renamed Douglas Road after the 10-year old boy, Somtochukwu Ibeanusi, who was shot dead, during the destruction of Ekeukwu Owerri market. Reacting also online, Agunwa Emeka Nzeribe, who claimed to be a chieftain of All Progressives Congress, APC, and a Catholic faithful from Oguta, said that the action of Okorocha in renaming the Assumpta Avenue is unacceptable, but quickly added that “we must treat it with caution”. He wondered why Governor Okorocha should not have opened an entirely new road and name it after the President, like the former Governor, Chief Ikedi Ohakim did on Musa Yar’Adua Road. “He is no longer loved by Imo people and he is playing to the gallery to ensure that he wins the favour of the Presidency to enable him install a preferred candidate as his successor. We should ask ourselves what made him stop the unveiling of the remaining statues moulded in New Owerri,” Nzeribe said.
How do they get the jobs they are trained for ? What strategy have you adopted to address the problem?
“This, in the case of Nigeria, will be a peak in Q4 2017, which means we will only expect unemployment to return to its normal trend in 2018. The length of the lag depends on how deep and long the recession was.” The report had said the number of people in fulltime employment reduced from 52.7 million in the second quarter to 51.1 million in the third quarter.
Lots of government programmes have been created in the past to address this challenge. Right from Operation Feed the Nation (OFN), National Directorate of Employment (NDE) and National Poverty Eradication Programme (NAPEP), these were all run by the government.
According to the report, the number of unemployed people within the labour force (15-64 years) increased from 13.6 million to 17.7 million while the number of underemployed people increased from 15.9 million to 18 million. The people captured in the unemployed bracket are those who recently lost their jobs and those who just joined the labour force either by age or completion of the pursuit of an educational degree.
Consequently, we decided that the best strategy was to put in place an initiative to enable small businesses.
Taking a realistic view, we believe that government does not create jobs. Only the private sector can create jobs.
That is why we are reaching out to private organisations that know the industry skills’ needs. We have reached out to companies such as General Electric, Sterling Bank and quite a number of others. We sat down with them and say, let us work together and solve the problem because it affects all of us.The responses have been good and gradual. Of course we are expecting more. The important thing is that we are involving the private sector. The private sector knows the kind of skills they need.
It stated that the approval has made it possible for the company to make final investment decision (FID) by awarding the engineering, procurement, construction and installation of the LPG extraction plant to PCC-LAMBDA Consortium, formed between Nigeria indigenous companies and a Chinese company, Peiyang Chemical Equipment Co. Ltd (PCC), which is the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with the project. The company’s Director of Legal and Corporate Services, Mr. Olusegun Ilori, explained that the gas utilisation programme involves the use of the lean gas to power the 12MW gas generator at Otakikpo field out of which 5MW would be dedicated to the host communities in line with its MoU with the government while the LPG and propane would be bottled and sold. Part of the LPG shall be for domestic use within Otakikpo communities to support small scale industries. He said the LPG plant, which is expected to be completed within 12 months would be a booster for Nigeria’s drive toward utilisation of gas resources for domestic gas. The company recently delivered 6MW gas generator to the community while the other batches will arrive in the new year. FINANCIAL WATCH
IST demands increased funding for operational efficiency The Investments and Securities Tribunal, IST, has requested for increased funding in order to effectively cope with expansion in its operational responsibilities. Chairman of the Investment & Securities Tribunal (IST), Isaiah Idoko-Akor, made this request when members of the Tribunal visited the Acting Director General of SEC, Dr. Abdul Zubair in Abuja. He said: “IST is serving the market, it is very important to the market and that is why we commend SEC for its support to the IST.
By Haruna Magaji
The company, which began production last February, said it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation.
“As his days are numbered, I implore all Imolites to tarry awhile in order not to jeopardize chances of desired change Imo people are yearning for in 2019”, Nzeribe pleaded.
By Ezekiel Enejeta
FG approves LPG extraction plant for Green Energy
Green Energy International Limited, the operator of the Otakikpo marginal field in OML 11, has secured the Federal Government’s nod for the establishment of a Liquefied Petroleum Gas (LPG ) extraction plant at Ikuru Town, Rivers State. The License To Establish (LTE) of the 12MMSCFD capacity plant was issued to the company by the Department of Petroleum Resources (DPR) as the company moves to fulfil its obligations as a pilot project approved by government for zero gas flares operation in the Niger Delta.
Continuing, this Catholic faithful recalled that everybody in Imo State knows this road as Assumpta Avenue, until recently when banks took over both sides of the road, from Douglas Road Junction, which became known as Bank Road.
Lagos State Commissioner for Wealth Creation and Employment, Babatunde Durosinmi-Etti How did we do this? The state government decided to set up the Employment Trust Fund. The government allocated N6.25 billion every year to small and micro businesses as small loans. The loans range from N250, 000 to N5milion. The fund is easy to access but at the same time, there are eligibility criteria. In the past, such funds were run by government. In this case, we are dealing with tax payers. In line with Governor Ambode policy of inclusion, the government decided that all the stakeholders affected in the ecosystem, the young entrepreneurs, the civil society organisations, gender groups, young people should be part of the machinery that will set the criteria and methodologies on how to run the fund to get to the right people. Today, the fund is managed by nine people, out of them, only two of them are government officials, my self and the Commissioner for Finance. The trust fund is being run independently by this group of eminent citizens of Lagos and Nigeria. That is why the programme is a success. How about employability challenges? We examined three layers of those that are unemployed. In our study of the factors that have led to low employability skills, we discovered that there are jobs that our youths lack the orientation to contest for them. From my experience, some of the youths don’t know where the jobs are. Then, there is the issue of cognitive skills’ building institutions. The challenge is that the youths are not exploring those institutions that can help them build their cognitive skills. We are talking about groups and social institutions, such a Boys Scout, Girls Guild, Red Cross andDebating societies. All these groups are vital in building employability skills. These days ,we don’t have active extra curriculum activities in schools. These activities go a long way in helpling youths to build employability skills.
We have also reached out to international development partners ,such as Ford Foundation, Mercy Corps and the United Nations Development Programme(UNDP). We work with them on our problems. We know our problems. We seek for areas of synergy. What about the informal sector? At the informal sector, we have artisans and trade associations. We have welders, mechanics, painters and others. All these are jobs. They are part of small businesses.They can also access the ETF and grow their businesses. We keep saying that Togolese and artisans from neighbouring countries are stealing our jobs. Do we know our artisans are now doing better. To address this, we have created a compendium of registered artisans and tradesmen. The compendium provides details on 20,000 registered artisans.
“However, IST needs to be strengthened to be able to carry out its functions effectively. As the market is expanding, we also need funds to expand our operations to be able to serve better” he said. Akor, while commending the SEC on the various initiatives it has rolled out, also called for increased enlightenment and sensitisation of the investing public especially as it relates to seeking redress on issues relating to the capital market. Speaking earlier, Zubair said that the Commission will partner with the IST in its quest to ensure zero tolerance on infractions in Nigeria’s capital market and to ensure that perpetrators of fraudulent acts are brought to book. He said: “SEC has zero tolerance on infractions adding that anyone that flouts the rules will be made to face the consequences of such actions.
Every artisan on the compendium has a unique identification number, and an identity card. Apart from these, the artisan will be given a unique ATM card that is linked with Ibile Micro Finance Bank for loans. The other benefits is access to the state’s health insurance scheme.Those on compendium will be listed on the market place where they can advertise their businesses.
Tension in Owerri over renaming of Maria Assumpta Avenue as Buhari Road By Cynthia Adigwe OWERRI—Uneasy calm has enveloped Owerri, following the renaming of Assumpta Avenue by Governor Rochas Okorocha, to Muhammadu Buhari Road.
Zubiar told the IST team that the SEC has been embarking on a number of initiatives to protect investors in the market and ensure that they reap the benefits of their investments.
The Road which was named after the magnificent Maria Assumpta Catholic Cathedral, Owerri, several decades ago, had remained so until it was renamed by Okorocha.
“SEC has rolled out a number of initiatives and campaigns which have been yielding results. These initiatives are to ensure that investors are aware of what to do to protect their investments
Rrecall that Assumpta Avenue, with the Zip Code 460211, stretched from the old Library Roundabout, Okigwe/Wetheral Roads, to Assumpta Cathedral, Control Post.
“The e-dividend is one of such campaigns and we enjoin investors to key-in so that they can reap the benefits of their investments” he added.
December 28, 2017
Page 9
FINANCIAL WATCH
DECEMBER 28, 2017
NEWS Profit-taking drags equities to N225b loss By Haruna Magaji Nigerian equities reopened yesterday with a tinge of bearishness as profit-taking transactions on many large-cap stocks dragged the overall market position to a net loss of N225 billion. The two main value-based indices at the Nigerian Stock Exchange (NSE) closed on the negative, underlining that the decline was due to price depreciation. The All Share Index (ASI) dropped by 1.64 per cent to close at 37,889.57 points. The market capitalisation of all quoted equities declined by N225 billion to close at N13.484 trillion. The downtrend was due to widespread profittaking transactions, especially losses recorded by large-cap stocks such as Dangote Cement, Nigerian Breweries, Okomu Oil, Presco and PZ Cussons Nigeria.
Airlines count losses as bad weather disrupts flights nationwide By Ezekiel Enejeta Inclement weather occasioned by the harmattan haze has forced many domestic carriers to cancel flights from the Lagos Airport into Port Harcourt, Enugu, Calabar, Uyo, Benin, Warri, Asaba , Ibadan and Ilorin. The harmattan haze resulting in poor visibility is preventing airlines from operating flights into airports less than 800 meters approved weather minima by aviation regulatory agencies. Airports in South South and South East are worst hit by the inclement weather. Airlines are losing revenue. Air Peace and Arik Air, the biggest operators by volume of flights, are hugely affected.
complicated its schedules with the attendant revenue loss and fidelity to on time performance. He said most passengers have refused to show understanding that the delays and cancellations are beyond the airlines but forces of nature. He said :” The inclement weather is seriously affected our operations . We have no choice but to either delay or cancel some flights because we will not fly into any airport below the approved weather minima. “This is forcing us to lose money and our name because passengers will not understand . This could even force some passengers to attack our staff, we think the relevant security agencies should provide security for our workers and equipment .
Air Peace Corporate Communications Manager Mr Christian Iwarah told The Nation that the airline was badly affected by the weather; it cancelled six flights on Wednesday.
“Whatever has happened, we are Lodi g h eavily on all sides. How do we handle the backlog of passengers, issues about refund and other challenges.”
Iwarah said the cancellation of flights into Benin, Calabar, Uyo, Enugu, Port Harcourt and Akure has hugely
He said airline only operated flights today into Lagos , Accra, Owerri, Abuja and Port Harcourt.
On his part, Arik spokesman, Ola Adebanji said the airline could not operate flights into Asaba, Benin, Warri , Ilorin and Ibadan. He said :” This poor visibility is impacting negatively on our flights because the airline is loosing revenue.” DANA Air spokesman Kingsley Ezenwa said though the airline operated flights , but it had to monitor the prevailing weather that it meets the prescribed minima. He said: “Though DANA Air did not cancel any flights, but we experienced a lot of delays .” Investigations reveal that many passengers remain stranded at airports waiting airlines to announce boarding for flights. Some domestic and international airlines yesterday delayed or cancelled flights at the Nnamdi Azikiwe International Airport, Abuja, due to adverse weather conditions. The News Agency of Nigeria (NAN)
reports that the affected flights involved Air Peace, Dana Air, Arik Air, Azman and Air France. NAN reports that the affected cities are Port Harcourt, Owerri, Enugu and where both out-bound and inbound passengers are currently stranded nationwide. The Nigerian Meteorological Agency (NiMet) had on Tuesday predicted that dust haze weather conditions in horizontal visibility range of one to three kilometres would prevail over most parts of the county on Wednesday. NiMet also predicted a reduced localised visibility of less than 1000m over many cities throughout the forecast period. When NAN visited the airport yesterday, there were series of flight announcements on either cancellation or delay of different flights. At about 10 a.m. it was announced that Dana flight to Port Harcourt had been cancelled due to prevailing bad weather conditions across the country.
There were nearly two losers for every gainer with 14 gainers and 24 losers. Cadbury Nigeria recorded the highest gain, in percentage terms, with 9.91 per cent to close at N15.75 per share. 11, formerly Mobil Oil Nigeria, gained 4.89 per cent to close at N178.31. Fidelity Bank appreciated by 4.62 per cent to close at N2.49 per share. Law Union and Rocks Insurance went up by 4.23 per cent to close at 74 kobo while NEM Insurance appreciated by four per cent to close at N1.56 per share. On the negative side, Okomu Oil led the losers’ chart by five per cent to close at N67.69 per share. Omoluwabi Micro Finance Bank shed 4.88 per cent to close at 78 kobo. Presco depreciated by 4.86 per cent to close at N68.50 per share. MC Nichols dropped by 4.76 per cent to close at N1.20 while Nigerian Breweries declined by 4.26 per cent to close at N134.04 per share. The momentum of activities however improved as total volume traded appreciated by 103.9 per cent to 425.96 million shares worth N2.12 billion in 2,937 deals. Transactions in the shares of Transnational Corporation of Nigeria topped the activity chart with 107.1 million shares valued at N154.77 million. Fidelity Bank followed with 94 million shares worth N220.75 million while Skye Bank traded 51.65 million shares valued at N25.82 million. Analysts at Afrinvest Securities Limited said they remained optimistic on the outlook for equities. “Given the significant rise in oil prices in recent times and the broadly bullish outlook for commodity prices for 2018, we maintain our positive short- to medium-term perspective for equities,” Afrinvest Securities stated.
Bitcoin slumps through $15,000 after biggest rally By Cynthia Adigwe
be zero or $1m or anything in between.”
The bitcoin fell below $15,000 after the cryptocurrency’s biggest rally in two weeks ended a rout that wiped more than $9,000 off the price.
For skeptics doubting whether individuals and businesses will truly start using bitcoin as a medium of exchange — as opposed to some officially backed digital currency — the short-lived
Cryptocurrencies including the bitcoin have become a subject of controversy in Nigeria and the Central Bank of Nigeria has said it is studying the situation. The largest digital coin dropped 6.5 per cent to $14,874 at 11:44 a.m.in New York on Wednesday, having earlier climbed as much as 3.6 per cent. Among rival digital currencies, ripple rose by eight per cent, while ethereum and litecoin fell, according to data compiled by Bloomberg. The relatively quiet day for bitcoin came on the heels of a five-day slump that reached 44 per cent at its depths and took the coin below $11,000 on Friday. Just four days earlier, it rose within striking distance of $20,000 after a torrid advance that started in early December. Investors continued to snap up shares in companies often seen as a safer alternative to investing directly in cryptocurrency itself. Digital Power rose in early trading after saying it was boosting its computing infrastructure to mine digital coins. On Track Innovation also advanced. Bitcoin futures on the CME Group exchange slipped by 3.6 per cent. Bitcoin’s volatility is adding to an ongoing debate about how to value the digital coin which has surged about 1,600 per cent this year. “Nobody knows the ultimate value of this underlying asset,” the President of the American Institute for Economic Research, a Massachusetts-based research group, Edward Stringham, said on Bloomberg Television. “We cannot predict whether it’s going to FINANCIAL WATCH
Bloomberg Television. Rebound from the past week’s selloff portends further declines. “It’s much more likely once you’ve made a big downward movement like the one we made last week that you have a bigger and more complex correction,” a Sydney-based analyst at CMC Markets, Ric Spooner, told
“Once a market like this one locks into those patterns it becomes pretty good” to follow via chartbased analysis, he said. Spooner said it was possible bitcoin could drop to $5,700 or $8,700 in coming months.
Investors sell off shares after Yuletide celebration By Haruna Magaji As businesses opened on Wednesday after the Yuletide holiday on Monday and Tuesday, investors in the Nigerian equities market started the week on a negative note as share sell-offs characterised trading. The Nigeria Stock Exchange market capitalisation dropped by N225bn to close at N13.483tn from N13.708tn recorded on Friday. A total of 425.959 million shares worth N2.121bn exchanged hands in 2,937 deals. The equities market recorded a 1.6 per cent decline at the end of trading on Wednesday to buck a three-day gaining streak; thus, paring the benchmark index year-to-date return to 41 per cent. Dangote Cement Plc was the major drag to performance after it shed 3.9 per cent; although selling pressure were also observed in large-cap stocks within the consumer goods, banking and agriculture sectors. However, activity level waxed stronger as volume and value rose by 103.9 per cent and 37.9 per cent to N416.9bn and N2.1bn, respectively. Sector performance was mixed as three of the five major NSE indices closed in the red. The industrial goods index led the losers chart, plunging by 2.6 per cent on account of sell-offs in Dangote Cement while the consumer goods index trailed, closing 1.2 per cent lower, following price depreciation in Nigerian Breweries Plc, which declined by 4.3 per cent.
Similarly, the banking index lost 0.3 per cent — pressured by Ecobank Transnational Incorporated and United Bank for Africa Plc, which shed 2.8 per cent and 0.8 per cent, accordingly. On the other hand, the insurance index closed one per cent higher as investors positioned in NEM Insurance Nigeria Plc and Axa Mansard Insurance Plc, which gained four per cent and 0.5 per cent, accordingly, while the oil/gas index gained 0.5 per cent, solely on account of Mobil Nigeria Plc, which appreciated by 4.9 per cent.
Bullish investor sentiment also prevailed in the Treasury bills space, as the average T-Bills yield declined by 0.44 per cent to settle at 13.86 per cent. Yield declines were recorded on the one-month, three-month and sixmonth tenors, while the nine-month and 12-month tenors recorded respective yield advancements of 0.39 per cent and 0.57 per cent. The average money market rate shed 0.63 per cent to settle at 5.38 per cent as the open buy-back and overnight rates declined by 0.67 per cent and 0.58 per cent, respectively.
Investor sentiment weakened as indicated by market breadth which retreated as 14 stocks gained while 23 declined. Cadbury Nigeria Plc, Mobil Nigeria Plc and Fidelity Bank Plc topped the gainers’ chart, appreciating by 9.9 per cent, 4.9 per cent and 4.6 per cent, respectively while Okomu Oil Palm Plc, Presco Plc and Nigerian Breweries led the losers’ chart, sliding by five per cent, 4.9 per cent and 4.3 per cent, respectively. “Given the significant rise in oil prices in recent times and the broadly bullish outlook for commodity prices for 2018, we maintain our positive short — to mediumterm perspective for equities,” analysts at Afrinvest Securities said in a draft. In the Treasury bonds space, the average yield declined marginally by 0.009 per cent to close at 14.06 per cent. Yield advancements were recorded on two tenors as yields on five tenors declined while all others traded flat.
December 28, 2017
Heritage Bank, Group partner on pageant By Ezekiel Enejeta Heritage Bank Plc has partnered with Folio Media Group, publishers of the Daily Times, to organise the 60th anniversary of Miss Nigeria and the 2017 edition of the beauty pageant. Miss Ehiguese Mildred Peace, representing Adamawa State, emerged Miss Nigeria at the grand finale of the beauty pageant held at Eko Convention Centre in Lagos. Miss Rita Chinedu, representing Delta State and Miss Benjamin Anne Ufuomanefe, (Ondo State) were first and second runners-up. Miss Cross River, Ana Victoria Lawrence emerged as Miss Emerald Queen, after winning the task organised by Heritage Bank, which centred on assessing the contestants on their knowledge, complement, fluency, articulation, appearance based on ingenuity and creativity of the Nigerian contemporary hairstyles. Whilst,
Miss Ifidon Sarah representing Edo State Miss Onyeabo Amarachi representing Abia State, emerged first and second runner ups, respectively. The award given to her, which was an artefact (African queen bronze head in a moulded box), speaks of African culture and symbolic of the Bank’s pride of its heritage. Miss Nigeria focuses on issues that affect Nigerian women; she is an ambassador of culture, of purpose, of the environment. The ambition of the new beauty queen is to provide medical and psychological help for women who are victims of rape as well as empower them. Speaking with journalists immediately after the crowning of the new pageant queen, Fela Ibidapo, Head of Corporate Communications of Heritage Bank said, “We are partnering with Folio Group to empower women”, adding that this is what the Daily Times used to be known for and we wants to help them to revive it. “Our involvement in this is not because of beauty per se, it’s primarily to empower ladies and women generally; to encourage them to always put in their best in whatever they do to make a living.” Ibidapo agreed that the impact of the initiative might not be so visible in the short-term period, but he was so optimistic that it would impact positively on their contributions to the nation-building process in the long run. Also speaking, chairman of Folio Media Group, Mr. Fidelis Anosike said the group would use the Miss Nigeria pageant to create a strong female platform, remarking that the group has signed a partnership deal with the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) over the next five years to tackle the scourge of human trafficking.
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