Business

Nigeria’s external reserve falls by $535m in May

2017-06-04T23:28:00.002-07:00

The nation’s external reserve recorded its second monthly decline of $535 million last month. This came as the Central Bank of Nigeria (CBN) had intervened in the foreign exchange market by selling $6.84 billion from January to last month.
According to the CBN, the external reserve fell from $30.864 billion at the end of April to $30.329 billion on May 31, translating to decline of $535 million during the month.
Analysis showed that the reserve rose steadily by $7.06 billion from $23.93 billion on October 24 last year to $30.99 billion on May 4 when it commenced its steady decline. The reserve grew by $819 million in November, $1.07 billion in December, $2.33 billion in January and by $1.47 billion in February. The reserve, however, dropped by $645 million in March, while it also grew by $573 million in April.
The decline in the reserve in May was driven by increased dollar sales by the Central Bank of Nigeria (CBN), and the slight drop in price of crude oil price from $53.69 dollars on April 12 to $48.85 per barrel on June 1st.

Investigations revealed that the CBN has intervened in the foreign exchange market by selling $6.84 billion to meet various forex needs. Last week, the apex bank sold $460 million in the interbank foreign exchange market, comprising $285.8 million for Retail Secondary Market Intervention Sale (RSMIS), $100 million for Wholesale SMIS, $52 million for SMEs and $45 million for invisibles. In addition to these, the apex bank also sold $40,000 to each of the 3,145 bureaux de change across the country, translating to injection of $125.8 million in the retail segment.
Meanwhile the naira appreciated to N375 per dollar in the parallel market due to weak demand which resulted to dollar glut. Survey revealed that the parallel market exchange rate dropped from N382 per dollar the previous week to N371 per dollar at the close of business on Friday, indicating N9 appreciation for the naira.
BDC sources said that the demand for dollars was low throughout the week. This, it was gathered prompted glut of dollar in the market with market operators refusing to buy dollars from members of the public.
A BDC chief executive who spoke on condition of anonymity said: “I am not buying dollars this week. We have to wait till next week because people are not coming to buy dollars this week. Nobody knows where the rate will be next week. You might end up having problem selling the dollars you bought this week.”
The naira also appreciated in the Investors & Exporters forex window as the exchange rate for the window fell to N378.56 per dollar from N380.22 per dollar the previous week.
The appreciation recorded by the naira will likely persist this week. According to analysts at Vetiva Capital Management Limited, a Lagos based investment firms, “We expect further CBN interventions in the coming week to continue to sustain liquidity in the foreign exchange market and possibly further prop the naira”.
Cost of funds will likely rise this week in the interbank money market as the market is expected to experience scarcity of funds. Though the market will experience inflow of N73.6 billion from matured treasury bills, this is, however, inadequate to balance the impact of outflow to fund dollar purchases from the CBN.
Last week, the market enjoyed marginal relief from liquidity pressures, owing to previous week’s inflow from statutory allocation fund of over N400 billion.
Consequently average short term cost of funds fell by 330 basis points. According to Financial Market Dealers Quote (FMDQ), interest rate on Colateralised (Open Buy Back, OBB) lending fell to 8.33 per cent from 11.6 per cent the previous week. Similarly, interest rate on Overnight lending dropped to 9.08 per cent from 12.42 per cent the previous week.
Also reflecting the liquidity relief in the market, treasury bills offered by the CBN during the week enjoyed 85 per cent over subscription. The CBN offered N162.1 billion worth of bills comprising N45 billion worth of secondary market bills and N117.1 billion worth of primary market bills. The offer recorded N299.2 billion subscription while the CBN sold N214.3 billion.
The N45 billion worth of secondary market (Open Market Operations, OMO) bills offered by the CBN attracted N97.5 billion subscription, while the apex bank sold N97.2 billion. The N117.1 billion worth of primary market bills offered by the CBN attracted N201.7 billion subscription while the apex bank sold N117.1 billion.
The CBN during the week released its Purchasing Managers Index (MPI) report for May. The report showed that the manufacturing sector expanded for the second consecutive month, while the non-manufacturing sector recorded expansion for the first time after 16 months of contraction.
This according to Afrinvest analysts indicate that the nation’s recovery from economic recession is in full swing. They said: “We believe the expansions in the Manufacturing and Non-Manufacturing sectors highlight the fact that the economic recovery is in full swing and we expect a positive feedback on Q2:2017 GDP numbers. Consequently, we forecast Q2:2017 GDP to settle at 0.7 per ent which implies that the economy will be out of recession. Interestingly, the Employment sub-index of the Manufacturing and Non- Manufacturing sectors expanded for the first time in 2017, which suggests renewed optimism of business owners on the future economic conditions. Hence, we expect that sustained improvements in FX liquidity and ease of doing business will continue to drive expansion in business activities in the interim.”
Analysts at Vetiva Capital also said that the May PMI shows that the nation’s economic recovery is continuing at healthy pace. They said: “Unsurprisingly, Nigeria’s economy is showing marginal improvement, no doubt supported by recovering oil parameters and a more liquid FX market. These will likely be aided by increased efforts to improve the ease of doing business in the country spearheaded by the Acting President.
“Recent executive orders to increase government efficiency and legislative directives to expand credit to MSMEs should support economic recovery. However, persistent inflation pressure (May forecast: 15.8 per cent) remain a worry and will continue to pressure business margins and consumer wallets. Nevertheless, reinforced by recent PMI numbers, we expect an economic rebound (2.1 per cent y/y) in Q2’17.”

Senate plans to invite central bank, other banks over high interest rates

2017-06-04T23:19:00.002-07:00

Abubakar Bukola Saraki

Senate President Bukola Saraki has said the Senate is concerned about the high interest rates on loans, stating that lawmakers will this week discuss the issue with the Central Bank of Nigeria and the Deposit Money Banks.
He stated that in an economy where workers were being retrenched and people were losing investments, it was immoral for certain sectors to be making astronomical profits.
In an interview with journalists in Ilorin, the Kwara State capital, on Sunday, the Senate President said, “They (banks) will tell you that they are doing business but in doing business, there must be social responsibility. We must be able to sit down and look at ourselves eyeball to eyeball, and we intend to do that; and I can promise Nigerians that we can find a solution. Hopefully with the stability in the forex market, we will now begin to address the high interest rate.
“There is no business that can make money if it is trying to borrow at 28 or 29 per cent. It cannot work and
if we cannot get the banks to lend to the real sector and they carry on their money to government instruments, there cannot be growth. So, we must tackle that. I can assure you that I will lead that challenge. We must sit down and discuss it.”
Saraki added, “They are in business to make money but we must look at what money is reasonable in this kind of environment. You may have to reduce that profitability to allow your country to grow. It is that balancing that we need, but in doing that, there must be some incentives. We may have to tell them, ‘Listen, we may have to limit how much you put in government security’.
“What do you do with that extra amount of money? It must go to the real sector. It must go to the business that produce made-in-Nigeria products. They may say that it is too risky to do that. In doing that, we must give them some assistance. This is the kind of negotiation we must make.”
He said the Senate would discuss with the Central Bank of Nigeria and the banks on how to address the high interest rate regime.
The Senate President urged Nigerians to patronise homemade products, adding that people should report any Ministry, Department and Agency that flouted the Senate’s directive that indigenous companies producing such commodities should be given the option of first refusal during public procurement.
On the delay in the signing of the 2017 budget into law, Saraki told Nigerians not to be apprehensive about whether the Presidency would assent to the budget or not.
He said, “There was a comment I read online where the Presidency had said it did not have an intention not to sign. I do not think that (not signing the budget) will happen; I doubt very much.
“Nigerians should not be concerned about that; I am pretty sure that the Executive will sign the bill and we will begin to implement the budget. I am confident that the Executive will sign it very soon. There should be no anxiety there.”
Saraki added that the passage of the Petroleum Industry Governance Bill was another landmark in the Senate.
He clarified that the proposed National Road Fund Bill would not lead to an increase in the current pump prices of fuel in the country.
Saraki stated, “Our roads around the country are not adequately funded. If we are banking on the appropriation process, we will not be able to adequately fund and refurbish our roads.
“Anybody that read the full report would have known that after the public hearing, which involved stakeholders from the road and transport industry, it was recommended that N5 from each litre of petrol should be channelled towards our roads.
“However, this is not going to be an additional N5, but N5 out of the present price of N145 that Nigerians are currently paying at the pump.”

The Senate President aligned with the view that the country would be out of recession in the third quarter of this year.
He stated that the Federal Government under President Muhammadu Buhari had made remarkable progress in implementing measures for Nigeria to exit recession.
Saraki said, “I believe that by the next quarter, we should technically go out of recession. I believe that efforts have been put in place to be able to revive our revenues, bring stability to the Niger Delta and restore confidence to the market.
“The Nigerian currency was undervalued when it was about N500 to $1, because people were speculating and not that it was the true value of the naira. Investors lost confidence in the market. This is the first time you see when our currency has depreciated and also appreciated significantly.
“There are investments now coming in. It is even reflected in the capital market. You can see inflows coming in. I see an upward projection in investment coming in and businesses begin to move.”
He also said it was insensitive of elected political office holders to abandon serious issues of serving their constituents and preoccupy themselves with the 2019 elections.
Saraki noted that 2019 was still a long period for serious-minded politicians to concentrate their energy on to the detriment of good governance.
He admitted that elected public office holders had not met some of the expectations of Nigerians, adding that they should rather be committed to rendering services and fulfilling their electoral promises.
Saraki stated, “The year 2019 is a long way. Any serious-minded politician, who is interested in his people, should not be talking about 2019, especially if we want to be honest with ourselves; some of the expectations of our people have not been met. I think it will be insensitive if we have left that and we are now talking about 2019. We need to work hard to make sure that we meet those expectations.
“The economy is already moving in the right direction, which is why we are addressing the issue of security, which is good. We are fighting corruption; we need to do more in that area. By the time we work tremendously over the next one year, I think we will be in a place where we can beat our chest and say we have done well.”
Saraki added that though financial autonomy for local government areas might be approved during the ongoing constitutional review, it would be more desirable for the LGAs to be adequately funded to address their statutory responsibilities.
According to him, the current allocations to the local governments in the country are not adequate to meet their needs.
He said it might be desirable to reduce the burdens of the councils such as education, which he said would be better handled by the state government.
Saraki stated that without the support of state governments, about 95 per cent of local governments in the country would not be able to pay salaries, talk less of providing infrastructure.
He said, “The finances are not just there. All the 36 states cannot be doing something wrong. I do not think there is a place where the revenues of the LGs can meet their expenditure, despite that they still have responsibilities like primary education.
“We need to review that. Maybe we will go back and look at whether state governments should truly take over primary education, because the arm of government that cannot even meet administrative expenses, you now put on it a very important sector as education.
“There must be something structurally wrong with it and we need to put our heads together and take decisions on the way forward. Maybe we need to review what kind of responsibilities they have.”

Oil resumes rise after OPEC cut

2016-12-01T01:02:00.002-08:00

Oil prices resumed their rise Thursday and held above the $50 barrier following OPEC’s decision to carry out its first output cut in eight years.
The Organization of the Petroleum Exporting Countries at a meeting in Vienna on Wednesday agreed on specific targets to enact a preliminary deal struck in September designed to ease a global crude supply glut and boost prices.
Many analysts had expected the producers’ cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
Crude futures prices surged more than 10 percent immediately after the OPEC deal.
At 0630 GMT Thursday, after a brief dip in early Asian trade, US benchmark West Texas Intermediate for January delivery was up 70 cents or 1.42 percent at $50.14, while Brent crude for February was 81 cents or 1.6 percent higher at $52.65.

“Not only had hopes of higher prices been realised, the reputation of the OPEC has also been salvaged, prompting the surge,” said Jingyi Pan, market strategist at IG in Singapore.
“Sceptics have now placed their focus on the implementation of the OPEC deal where Saudi Arabia will be shouldering the bulk of the cut.”
The 14-member OPEC agreed to lower its monthly output by 1.2 million barrels per day (bpd) to 32.5 million bpd from January 1.
Qatar’s Energy Minister Mohammed Bin Saleh Al-Sada said non-member Russia committed to reducing its output by 300,000 bpd, half of a hoped-for 600,000 bpd reduction from outside the organisation.
Prices had fallen to near 13-year lows of below $30 a barrel in February from peaks of more than $100 in June 2014 largely due to an oversupplied market outpacing demand.

Workers ground Bristow operations in Lagos, Port Harcourt, Eket

2016-12-01T00:39:00.004-08:00

Workers in the aviation sector yesterday staged a protest march that grounded operations of Bristow Helicopters in Lagos, Port Harcourt and Eket.
The employees, under the aegis of National Association of Aircraft Pilots and Engineers (NAAPE), barricaded offices of the airline in the three cities in protest of welfare and alleged plan to sack more workers.
In a swift reaction, the management blamed the development on the poor run of business in the oil and gas sector.
Recall that the company, which services the oil and gas industry, has had a dip in business since the global oil market crash. Following the downturn, Bristow, in the last 12 months, released 118 expatriate pilots and engineers as well as 21 Nigerian pilots and engineers from its payroll.
NAAPE said the shutdown of the helicopter company was due to management’s alleged redundancy
declaration of another set of 13 Nigerian engineers and 10 pilots.
The union claimed that the workers were victimised because of their crusade for pay parity with expatriate employees.
Its national president, Balami Isaac, told reporters that no operation would be carried out for the time being.
In a statement, the management said the matter was before the Federal Ministry of Labour for mediation.
“In disregard of the ongoing mediation process, NAAPE has decided to commence this action. This action is coming at a time when the global oil and gas industry is facing severe challenges and the Nigerian economy is undergoing serious disruptions with a number of clients reducing aviation logistics support services in the country,” it read in part.

Closed banks: NDIC appoints 10 agent banks to collect depositors’ claims

2016-12-01T00:10:00.005-08:00

The Nigeria Deposit insurance Corporation has called on depositors who lost their money in any closed banks to file their claims through the appointed 10 agent banks nationwide.
The Managing Director of the Corporation, Alhaji Umaru Ibrahim, made the call on Wednesday in Kano at NDIC’s Special Day at the ongoing 37th Kano International Trade Fair.
According to Ibrahim, the appointed agent banks include First Bank of Nigeria Plc, United Bank of Africa, Zenith Bank and Wema Bank.
Others are Heritage Bank, Union Bank, Fidelity Bank, Skye Bank, Unity Bank and Diamond Bank.
Ibrahim said in addition, depositors could also file such claims in any of its Zonal Offices located across the country for the payment of such claims.
He said the corporation had also extended deposit insurance coverage to the subscribers of non-interest banking institutions under the Shari’ah compliant banking services to the maximum limit of N500, 000 per depositor.
In addition, Ibrahim said the corporation had developed framework on Pass-Through Deposit Insurance Scheme to protect subscribers of Mobile Money Operators with a maximum insured limit of N500,000 per
subscriber of the banking product.
He, however, noted that the activities of illegal funds managers popularly known as ‘wonder banks’ had continued to thrive in recent times.
Ibrahim said: “I wish to once again sound a note of caution to discerning members of the public to beware and avoid any contact with these fraudsters.
“This is because many unsuspecting public are still falling victims of to the mouth-watering offers of hot returns.”
Ibrahim advised members of the public to patronise only insured banking institutions that display the NDIC stickers: “Insured by NDIC,” in their banking halls or entrances.
He said NDIC had established a toll free telephone line: 080063424357 with 24-hour help desk which depositors and other stakeholders could make inquiries.
He said: “They can also lay their complaints on any sharp practices perpetrated by banks and seek redress.”

Lagos, GE pledge to boost economy through SMEs

2016-11-25T01:01:00.000-08:00

Lagos State Government and General Electric (GE) on Tuesday, pledged to boost Nigeria’s economy through the development of necessary skills that will empower Small Medium Enterprises (SMEs) to drive growth in the country.
The SME sector is seen as the country’s engine of growth, in terms of development and industrialisation, wealth creation, poverty reduction and employment creation. Majority of Nigerian entrepreneurs are SME players, who employ at least 10 people and above.
Speaking at the launch of a hub, ‘Lagos Garage’ built by GE for advanced manufacturing-based innovation, strategy development, idea generation and collaboration, experts said desired growth in Africa, particularly Nigeria is only feasible through sustained effort towards empowering SMEs
The United States multinational conglomerate, GE operations span appliances, aviation, finance, energy, healthcare, ideas, intelligent platforms, lighting, oil and gas, power.
In Nigeria, GE’s interests are mostly in power and oil and gas, in which it has entered into many contractual agreements with the Federal and some state governments. However, the company is very secretive about its
dealings with the Nigerian Government and has blatantly refused to entertain any questions regarding the projects it is executing in the country.
SMEs, currently contribute about 48 percent of Nigeria’s Gross Domestic Product (GDP), the level of activities across all sectors of the economy. Experts said the sector, which employs about 60 million people, remained crucial to the future of the nation’s economy.
The Commissioner, Ministry of Wealth Creation and Employment in Lagos State, Abdul Mustapha, said the country’s growing population and high rate of unemployment put government on the line to provide opportunities that will make entrepreneurship to strive.
A United Nations report projected that by 2050, Nigeria, which is currently the seventh most populous country in the world, will be the third just behind India and China.
Mustapha disclosed that the ministry, which was recently created under the current administration, had sealed pacts with international organisations, including Oracle, an American multinational computer technology Corporation, to bridge skill gap.
He added that the State Government is working hard to seriously address infrastructure challenges and ease business operations, noting that efforts are underway to end epileptic power supply in the state.
GE’s garage, which is co-located with the Lagos office, is expected to offer a year-round series of skills training programmes focused on building the next generation of Nigerian entrepreneurs. Participants will be trained to use the latest in advanced manufacturing technologies; 3D printers, CNC mills, and laser cutters in the first-ever fabrication lab in Nigeria, to drive innovation in the country. They will also learn how to apply the core principles of design thinking, product development, finance, marketing, sales, and customer acquisition in real-time to their ventures.

USAID, Chi Farms partner to raise 4,000 tonnes of fish

2016-11-25T00:57:00.000-08:00

United States Agency for International Development (USAID) and Chi Farms Limited have entered into a partnership to enhance capacity of small-scale farmers in the country and to add about 4,000 tonnes of catfish into the nation’s food basket yearly.
The partnership, which is part of the U.S. government’s Feed the Future initiative, aims to assist entrepreneurs to become successful catfish farmers.
Chi Farms, according to the project layout, will ensure supply of quality feed and catfish juveniles to the farmers by enhancing its feed milling and hatching capacities.
Executive Director, Chi Farms Ltd, Martin Middernacht, said that the partnership would add positively to the overall food security in Nigeria.

Middernacht said: “We are delighted that USAID has decided to support the proposed initiative of Chi Farms. At the same time, it is at the core of what we do at Chi Farms. We are convinced that working with out-growers is a step in the right direction towards sustainable economic development.”
Besides fish farmers as the first beneficiaries, the partnership will also train over 6,000 soy and maize farmers to meet the quality standards of Chi Farms. They will be closely integrated in the supply chain of the fish feed mill.
USAID director, Roland Oroh, said that the positive impact on smallholder farmers across the maize, soybean and aquaculture sectors will create a consequent impact across all the geopolitical zones in Nigeria.

NNPC bid: We’ll ensure accountability – Baru

2016-11-25T00:50:00.001-08:00

Dr Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, said the bid for the sales and purchase of Nigerian crude oil grades will be transparent.
Baru said this in Abuja on Thursday when he declared the process open. ‎
According to him, the crude oil contract tenders‎ are to ensure transparency, enshrine accountability and conduct business in line with best global practices.
Baru said: “Today’s event marks yet another turning point in our quest to further enshrine transparency and accountability, two critical core values of our Corporation.
“Our focus as a national oil company is to enhance our production volumes, ensure the best value is realised through competitive marketing of our crude grades to international refineries and traders.
“In line with this aspiration, NNPC is collaborating with key stakeholders to improve on the overall security of our production sites and to ensure the safety of our environment.

“Today, we are therefore opening this bid before the entire world in line with President Muhammadu Buhari’s drive for transparency and accountability in the conduct of government business.
“We received 224 bids as at the 12:00 noon‎ deadline today. May the best bids win.”
Earlier, Mele Kyari, Group General Manager, Crude Oil Marketing Division while giving account of the sales of the crude, dismissed reports that only China was buying Nigerian crude.‎
He said China bought one cargo but Europe remained the major buyer followed by Asia.
‎On global oil prices, he explained that the major challenge was that supply continued to exceed demand.
This, he said, would continue to affect the oil price in a couple of years to come.
SOCA oil, Bell point and Northwest were called to the stage to confirm their bids and they all confirmed it was intact.‎
This year’s number is an increase from the 218 bids the NNPC received in 2015/2016.

Naira weakens to 470 on fresh dollar scarcity

2016-11-25T00:04:00.002-08:00

The naira weakened to 470 on Thursday, from 465 on Wednesday, as fresh dollar scarcity hit the official and parallel foreign exchange markets.
The local currency had appreciated to around 450 after security agents carried out series of raids on Bureau De Change operators, who sold the greenback above the N400 stipulated by the Central Bank of Nigeria.
Security agents have been raiding the offices of the BDC operators, ordering them to sell dollar at a lower rate in a bid to break the fall of the local currency.
However, the naira started recording losses gradually again as scarcity of the greenback weighed on the forex markets.
“The clampdown on the black market operators by security agents has negatively impacted dollar supply to the market,” one Bureau de changer operator told Reuters.
Economic and currency experts have said getting security agents after the BDC operators cannot get the
ailing naira to stabilise.
At the official market, the naira closed at 305 against the dollar, the level it has closed since August.
The naira is expected to depreciate slightly further in coming weeks at both the official and parallel markets on the back of gradual increase demand for forex by small businesses stocking for the Christmas and New Year sales.
Meanwhile, on the teeming streets of Lagos, the once omnipresent money-changers are going underground.
They’ve become the latest target of security agents in a desperate move by the Federal Government to bolster the naira.
That is creating a parallel market within the black market, according to analysts at Lagos-based Afrinvest West Africa Limited.
One trader in the Lagos suburb of Surulere, who asked not to be identified as he feared arrest, said he would continue using the old rate with trusted customers and refused to sell dollars to others.
“The black market will go further underground,” an analyst at Afrinvest, Omotola Abimbola, said.
“The fact that they went as low as getting security forces on the streets shows a new level of desperation,” he added.

NSE ends eight-day loss, 19 stocks gain

2016-11-24T02:51:00.001-08:00

Trading on the floor of the Nigerian Stock Exchange ended on a positive note on Wednesday as 19 stocks recorded gains with market capitalisation appreciating by N20bn.
The NSE All-Share Index snapped its eight-day losing streak as most key sectors traded in positive territory.
A total of 165.725 million shares valued at N1.126bn exchanged hands in 2,484 deals.
The NSE market capitalisation rose to N8.784bn from N8.764bn, while the NSE ASI closed at 25,517 basis points from 25,461.34 basis points.
The financial services sector led gains after advances in Guaranty Trust Bank Plc, United Bank for Africa Plc and Ecobank Transnational Incorporated Plc by 1.19 per cent, 1.18 per cent and 0.82 per cent, respectively.
The consumer goods and industrial goods sectors also closed higher following gains across PZ Cussons Nigeria Plc, Glaxo Smitkline Consumer Nigeria Plc, Nestle Nigeria Plc and Cap Plc by 4.90 per cent, 3.40
per cent, 1.25 per cent and 2.90 per cent, accordingly.
However, the oil and gas sector continued to underperform as Forte Oil Plc (-919bps) plunged to a fresh year low by 9.19 per cent, while Total Nigeria Plc shed 4.14 per cent.
Market breadth turned positive for the first time in 14 sessions with 19 advances and 11 declines.
On what would shape the next trading session, analysts at Vetiva Capital Management Limited, said, “We attribute today’s rebound to bargain hunting, especially on select bellwether stocks believed to have been oversold. We think the ASI could hold on to gains in the coming sessions.”
On the global front, Asian markets closed higher as commodity stocks gained, while European markets traded slightly lower despite better-than-expected Eurozone purchasing managers’ index for November, which came in at 54.1, the highest since December 2015. The United States futures pointed to a lower open ahead of the release of a slew of economic data.

W’Bank budgets N12.2bn to clear Apapa gridlock

2016-11-24T02:27:00.001-08:00

The World Bank is to support Nigeria’s maritime sector with N12.2bn ($40m) to help clear the traffic congestion that characterises most roads around the Nigerian Ports Authority in Apapa, Lagos, the Nigerian Shippers Council has said.
According to the NSC, the National Freight Information and Transport Hub, an arm of the World Bank, is working with the NPA on how the funds will be used to clear the trucks and tankers that cause heavy gridlock at Apapa, Orile, Tin Can Island and other areas around the Lagos port complex.
The Executive Secretary, NSC, Mr. Hassan Bello, told journalists in Abuja during a press briefing that the move was aimed at making the NPA more efficient, adding that it would also ensure that oil pipelines were used to transport petroleum products instead of tankers.
He said, “No matter how efficient the terminal is, if you don’t have the road to evacuate cargo, how will you move your goods out of the ports? So, there must be an intervention and in that regard, the NSC has
introduced the NAFITH to the NPA. Now, the NAFITH, an international finance corporation and an arm of the World Bank, is bringing $40m to put an end to the traffic situation in Apapa.
“The fund is meant to improve logistics around the Apapa, Tin Can and Orile areas for every time there are over 5,000 trucks on that axis. But what are they doing there? What we need is about 1,500 trucks in that Apapa vicinity logistically, but you find about 5,000. So, what are the other 3,500 trucks doing? They are doing nothing!
“So the idea is to have an electronic passage where a truck is in Apapa only when it is needed to pick or drop cargo. The tankers too don’t need to be there for the pipelines will do the transportation of products. The moment we have the pipelines pumping to Mosimi and other flow stations, then we don’t need the tankers in Apapa. So, all these things are what the World Bank is coming to do in order to solve, once and for all, the gridlock in Apapa.”
Bello noted that maritime sector was a formidable source for the diversification of the Nigerian economy.

Recession: FG plans tax relief for manufacturers – Adeosun

2016-11-24T02:19:00.003-08:00

The Federal Government, in a bid to ease the burden of the current economic recession on the manufacturing sector, is planning some form of tax relief for the sector.
The Minister of Finance, Mrs. Kemi Adeosun, dropped the hint on Wednesday in Abuja while responding to questions from journalists at the end of the Federation Account Allocation Committee meeting.
She said the tax relief was part of measures by the Federal Government to reduce the negative impact of the foreign exchange crisis on the sector.
Based on the Gross Domestic Product report for the third quarter released by the National Bureau of Statistics, the manufacturing sector’s growth rate was recorded at -2.93 per cent year-on-year.
This is lower by 1.02 percentage points than what was recorded in the second quarter of the year.
The report had blamed the decline in manufacturing activities to the continued drop in the naira to dollar exchange rate, which has made industrial inputs more expensive.

Adeosun said since the sector was one of those badly hit by the economic crisis, the Federal Government would support it with some form of incentives next year.
In addition, she said massive investments in infrastructure would be made to reduce the operating costs of the manufacturing sector.
The minister stated, “It is clear from the figures that the manufacturing sector is the one that is really challenged and the challenge in the sector is clearly that of foreign exchange availability. I think that the sector will benefit from more consistency of the foreign exchange policy.
“On the fiscal side, we are rolling out a number of measures to support the manufacturing sector in terms of tax reliefs and other measures that will allow the balance sheet of the sector to be repaired. They (manufacturers) have taken quite a hit and we will continue to try and support them through it.
“We have a fiscal road map that we will be rolling out and it includes a number of measures around revenue mobilisation, tax reliefs and the fiscal instrument, which will be issued in 2017 to get the economy back to recovery.”
Responding to a question on the position of the Central Bank of Nigeria that the Federal Government should quickly settle its indebtedness to economic agents, the minister said the issue was also affecting the fiscal stimulus objective of the government.
She said with huge debts owed local contractors, money released to the contractors through the banks for projects was not being felt.
Adeosun explained that since the contractors were also indebted to the banks, they were usually denied access to those funds released by the government.
She said while the debts had risen owing to the fact that the government changed its accounting system from cash-based to accrual-based, the ministry would work with the CBN to address the liabilities.
“We are working on a solution with the CBN that will enable us actually reflect these obligations and begin to pay them off because, indeed, they are affecting a number of sectors in the economy and the ability to get the economy growing,” Adeosun stated.
Meanwhile, the Federation Account Allocation Committee distributed a sum of N420bn among the three tiers of government for the month of October.
The minister put the gross revenue received for the month at N238.7bn, adding that this was lower by N41.03bn than the N279.74bn allocated in September.
She attributed the decrease in revenue to challenges in the oil sector caused by the activities of militants in the Niger Delta, as oil production dropped by about 950,000 barrels per day in August.

Brazil oil giant gets bribe money back

2016-11-19T00:27:00.000-08:00

Brazilian prosecutors leading a major corruption investigation have returned $60m (£49m) to state oil giant Petrobras.
The money was retrieved from senior politicians, civil servants and businessmen who agreed to cooperate with the investigation.
The kickback scheme cost Petrobras an estimated $1.8bn, said company boss Pedro Parente.
The scandal has rocked the country and led to mass street protests.
Dozens of politicians and some of Brazil’s wealthiest businessmen have been arrested as part of the inquiry, known as Operation Car Wash, over the past two years.
Under new legislation, they were allowed to tell what they knew and return some of the corruption money in exchange for shorter sentences.
Many in Brazil criticised the operation, saying it was politically motivated and targeted mostly members of the
left-wing Workers Party, including former president Luiz Inacio Lula da Silva.
But Operation Car Wash top prosecutor, Deltan Dallagnol, urged the public to support the investigation.
“We will be defeated if society is not at our side,” said Dallagnol.
The political crisis triggered by the Petrobras investigation eventually led to the impeachment of President Dilma Rousseff in September, reports the BBC.
Ms Rousseff was not directly implicated in the scandal and was dismissed for allegedly tampering with the budget.
But many politicians close to the governing coalition were arrested and charged for taking bribes from Petrobras.
Prosecutors say they were paid vast amounts in exchange for granting lucrative contracts to private companies that overcharged Petrobras.
The prosecutors had previously returned $150m (£120m) of corruption money to Petrobras.

Innoson delivers 1st indigenous vehicles to military

2016-11-19T00:03:00.003-08:00

To enhance the fight against the Boko Haram terrorists in the country, Nigeria’s foremost indigenous auto plant, Innoson Vehicle Manufacturing (IVM) Ltd, has designed and built IVM G12 series, a special purpose range of off-road light trucks, for use by the military and related security organisations.
The first indigenous military vehicle was officially handed over to the Nigerian Army in Maiduguri, Bornu State, last week to enhance the operations against insurgency.
Presenting the IVM G12 series to the Chief of Army Staff, Lt Gen Tukur Buratai, at the tactical headquarters of Operation Lafiya Dole, Maimalari Barracks in the Borno State capital, the chairman, Innoson Group, Dr Innocent Chukwuma, assured that the vehicle would be at home on the challenging terrains the army is used to in its operations.
Chief Chukwuma introduced Innoson IVM G12 series as a highly mobile and tactical pick-up van, with double reinforced shock absorbers that can show strength and ability to cope with military functions, especially in the Northeastern part of the country.
Receiving the truck, General Buratai praised Innoson’s vision of manufacturing vehicles that serve the specific
needs of the military and assured him of the military’s partnership with the plant in producing special purpose vehicles for its special operations.
Ahead of the presentation, Innoson had dispatched some units of the vehicles to the Army Chief to be test-driven on different rough terrains of the North-East axis where the armed forces are successfully mopping up the insurgents.
At the presentation of the vehicles, the military drivers who manned the vehicles during the test-drive, attested to their rugged nature, confirming their suitability for military operations across the difficult terrain and dangerous environment they operate in.
Innoson’s collaboration with the Nigerian Armed Forces started months ago when it signed a Memorandum of Understanding (MoU) with the Nigerian Air Force for the maintenance of the Nigerian Air Force Air Assets and other associated Aerospace Ground Equipment (AGE) to enable the Air Force to continuously carry out its constitutional obligations to the nation.
Innoson Group is also collaborating with the Army in the manufacture and supply of armoured and bullet-proof vehicles.

Buhari demands transparency from Boards of NNPC, NCDMB, NNRA

2016-11-19T00:01:00.002-08:00

President Buhari in a group photo with Members of Nigerian Content Development Monitoring Board (NCDMB) shortly after inaugurating Board of Parastatals in the Ministry of Petroleum Resources at the State House on 18th November 2016.Facebook/Femi Adesina

President Muhammadu Buhari yesterday inaugurated the boards of the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development Monitoring Board (NCDMB) and the Nigeria Nuclear Regulatory Authority (NNRA), with a call on the board members to uphold transparency in the management of ‎the organizations.
He also asked them to come up with new ways to overcome the present economic challenges.
Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, will chair the boards of the agencies under his ministry.
In a short remark, the president charged the members to ensure propriety in the management of the agencies.
The president noted that the boards came at a time when the global petroleum industry was going through a downturn in purchase which he said, had also translated into dwindling production by most producer nations.
He said Nigeria had been hit by the misfortunes of oil industry adding that several countries had been hit much harder.

He said: “The board, which will be chaired by the minister of state for petroleum, is composed of other well selected persons who have both the experience and knowledge to drive the NNPC into harnessing its potentials and fulfilling its expectations to the nation even at this challenging time in the oil and gas industry.
“Oil and gas industry are the country’s foreign earners therefore the importance of this boards cannot be over emphasized.
“Your job should be to ensure propriety in the management of these most important national institutions. You should advise the minister and the corporation management’s on the most effective way for Nigeria to get more money from our assets.
“My expectation from the members of these boards is for them to ensure that the NNPC charts a way to face current economic challenges.
“These will involve a careful look at the ongoing reforms design to steer the corporation to better performance and efficiency. In addition, you should explore more innovative ways to resolve the joint venture funding constraints and other investment issues.
“Since the arrival of this administration, there has been and improvement in transparency through publishing monthly operational and financial report of the corporation. This, added to the major restructuring of the corporation and the liberalization of the downstream sector, are pointers to the determination and focus of the new NNPC under this administration.
“I must mention that the task before you is enormous but I am confident that with your wealth of experience and knowledge of members of these boards, the desired growth, this government’s aspirations and indeed the aspirations of Nigerians will be achieved within a reasonable time frame.”
Kachikwu, in his comment thanked the president for the opportunity afforded the board members to serve the country.
He said: “We have heard your kind words of wisdom and the charge you have given us in terms of ensuring transparency, focus and thinking outside the box in a bid to finding solutions the problems that plagues many of these parastatals.
“We assure you that the people you have appointed are competent, experienced and nationalistic and will do the very best to reduce the burden on your shoulders in terms of the management and steer of this institutions.
“For NNPC, a lot has already been achieved but a lot still needs to be achieved and we will be working with the management through the board to try and get them to where they should be.
“For NCDMB, the challenge to grow local content is even more apparent than now when our people are out of work and the need for local contracting companies to replace foreign contracting companies and activities of the upstream and downstream sectors in the oil and gas industry is even more urgent.
“For the NNRA, as we seek alternative power sources, the challenge will be on your shoulders to ensure that we begin to seek how to power villages, our cities through alternative power sources of energy.”

Brexit will boost UK-Nigeria business ties – Envoy

2016-11-18T23:01:00.000-08:00

British High Commissioner to Nigeria, Paul Arkwright, on Friday said the decision by the UK to exit the European Union would boost business ties between it and Nigeria.
Arkwright said this in Lagos at a roundtable organised for workers and business entrepreneurs.
He said the target of the British Government was to grow its market.
According to him, relations between Nigeria and the UK will become stronger after exiting the EU.
He added that the British Government had decided to leave the EU and it would not renege on its decision.
The envoy noted that the British Government would give priority to smooth transition that would minimise disruption and there would be no immediate changes to their relationship with the EU.
Arkwright said: “Until we exit formally, UK will remain a member of the EU with all the rights and obligations of membership.”
Arkwright said the UK was working toward encouraging more businesses in Nigeria and would invest and
encourage more inward investment into the UK from Nigeria.
He said the British Government was interested in Nigerians going to the UK to do business, study, visit families and invest in the economy.
He said: “I don’t know if it will mean more Nigerians travelling to the UK, but in 2014, 168,000 people applied for visas to the UK.
“Seventy per cent of those applications were successful and the visas granted within seven to 15 days from the date of application.
“Most people for some reason doubt this, but it is true.”
Arkwright then commended the Federal Government of Nigeria’s efforts to diversify the economy from dependence on oil and gas to other areas.
He said the price of oil may increase, but the industry alone would not be able to support the need for jobs that Nigerians require.
He said: “And that is why the UK Department for International Development is helping with the immediate needs of those in desperate circumstances in the North East.
“We are also helping to diversify Nigeria’s industrial base and encourage entrepreneurship through improved education and skills training.”

NNPC set to commence production of aviation fueI in Port Harcourt refinery

2016-11-18T22:58:00.003-08:00

As part of the management of Port Harcourt Refining Company (PHRC) has announced its readiness to commence the production of Aviation Turbine Kerosene (ATK) popularly known as aviation fuel.
This part of efforts the Nigerian National Petroleum Corporation (NNPC), to reposition company for profitability in line with the 12-point agenda.
The Managing Director of PHRC, Dr. Bafred Enjugu, who disclosed this in a presentation made to the Group Managing Director of NNPC, Dr. Maikanti Baru, during an official tour of the 210, 000 barrels per day facility, said the refinery has met all the international parameters for the production of aviation fuel.
“The good news from our stand point is that we have scored 24 out of the 24 parameters for the production of aviation fuel and I must say that this is made possible because of the never-give-up attitude of workers of the great PHRC,” he said.
Dr. Enjugu said the refinery has successfully blended ATK and was only waiting for appropriate conditions to commence full scale production of the product in response to demand of the aviation sector.

Speaking at the event, Dr. Baru described PHRC as the nation’s flagship refining company, noting that the Corporation would do everything possible to ensure that the refinery was not just in operation but also operating profitably and contributing effectively to meeting local demand for petroleum products in line with its vision and mission.
“We cannot under-estimate the importance of refining because that is our identity and we shall do whatever it takes to ensure that your two plants are running at all times and work to tackle whatever could militate against your achieving set targets and objectives,” he said at a town hall meeting with staff members of the refinery.

PENGASSAN may declare strike over job losses in oil sector

2016-11-15T02:14:00.002-08:00

There are indications that the Petroleum and Natural Gas Senior staff Association of Nigeria (PENGASSAN) may begin industrial action soon if the job losses in the oil and gas sector are not halted.
The President of the union, Olabode Johnson, who said this in Abuja, berated oil companies for reneging on the agreement reached over pathways to halting job losses and paying sacked workers their entitlements in full.
“What is very sad in this country is that high-level meetings are held at the ministerial level and decisions arrived at are not taken seriously by the International Oil Companies (IOCs) and other oil companies on issues that have to do with the welfare of workers. We now have a situation where the oil companies are now reneging on the agreement. This is a slap on the face of the Federal Government of Nigeria.
“We have said times without number that these IOCs cannot do what they are doing in Nigeria in their countries of origin. If they find it difficult to obey our laws here, then they should pack their equipment and
leave our country. Nigeria will survive after their exit. There is no need for anybody or any company to hold a whole country to ransom,” he explained.
Johnson, who sounded optimistic about the speedy resolution of the crisis, hinted that meetings have been scheduled for the next few weeks to resolve the crisis.
He added that the unions in the oil and gas sector would, within the next few days, summon relevant organs to examine the progress achieved so far or lack of it and take appropriate steps in the protection of the interests of their members.
Speaking on the reemergence of bombing of oil installations in the Niger Delta, Johnson blamed the lackadaisical attitude of the Federal Government for the development.
His words: “The resurgence of militancy in the Niger Delta would have been nipped in the bud before it escalated to the present state if the declaration of the state of emergency in the oil and gas sector was declared as canvassed when the present administration came into office last year June.
“We called for the declaration of state of emergency in the oil and gas sector immediately this administration came to power but that call was ignored. We believe that the issues such as pipeline vandalism, oil theft, and job loss would have been solved before they get to this worrying level.”
The PENGASSAN boss also stressed the opposition of the union to fuel price increment at this point, saying, “for us at the PENGASSAN, any increase in the pump price now will be very unfair to Nigerians. We cannot anchor a general increase on the increment of the NNPC owned filling stations, which moved their price to the maximum band of N145 per litre.
“While government is trying to resolve the dollar parity, we are opposed to any price increase now especially in the face of the prevailing economic hardship. We also think that all the stakeholders would be summoned to examine the merit or otherwise of any planned increase, which has not happened.”

Trump plan to boost oil, coal could send prices lower

2016-11-15T01:34:00.001-08:00

President-elect Donald Trump has pledged to boost the oil and gas sector and bring back coal, reversing President Barack Obama’s efforts to encourage renewable energy and cut dependence on fossil fuels.
But analysts say Trump’s policies could serve to worsen the global energy glut, which would reduce prices while doing little to revive the fortunes of “Big Coal.”
Trump has made no secret of his support for fossil fuels. His policy advisors include top oil industry lobbyists, fracking king Harold Hamm, and oil-rich North Dakota’s congressman Kevin Cramer.
Trump has promised to eliminate regulations restricting fracking; support oil and gas pipeline construction, including the Keystone XL project blocked by the Obama administration; open now-restricted federal lands and offshore areas, for exploration, including Alaska; and end Obama’s 2015 Clean Power Plan, which
aimed to cut back coal-fired power generation.
“Producing more American energy is a central part of my plan to making America wealthy again,” Trump told a fracking conference in September.
“I’m going to lift the restrictions on American energy and allow this wealth to pour into our communities.”
– Adding to the oil glut –
But analysts say his plans could exacerbate the global oversupply. Oil prices collapsed in 2014 principally due to the rapid build in US output that came from the revolution in fracking technology, which allowed drillers to tap difficult-to-access shale-based reserves.
US crude output shot up to 9.6 million barrels a day by July 2015, nearly doubling from 5.5 million in 2010. This allowed the country to sharply cut back oil imports, and global prices sank.
Since then US output has fallen by about one million barrels, but prices remain depressed due to higher production from Iraq, Libya, Saudi Arabia and Iran.
Opening up more areas to exploration would add to that supply. Though there are benefits to maintaining US production capacity for the long run, any added capacity in the short- and medium-term would hurt prices.
That leaves analysts dubious Trump can achieve his goal of energy independence.
“Most of the big factors impacting the energy industry have really been market-driven. The shale oil boom put an incredible amount of new oil in the market,” said Sam Ori, executive director of the Energy Policy Institute at the University of Chicago.
“The big challenge facing the oil industry is oil prices.”
Oil analyst Carl Larry of Frost & Sullivan said the only way to increase domestic production would be to cut back imports by taxing them.
“Unless you find a way to stop imports, American oil production doesn’t have a great future,” he said.
Reviving the coal industry, meanwhile, faces a similar dynamic: fracking also opened up huge supplies of cleaner, easier-to-transport natural gas, making coal less desirable.
Independent from Obama’s policies, coal has fallen from more than one-half to just one-third of US power generation. Cleaner natural gas is preferred not only by federal but also by state and local policies.
US coal production actually remains quite high, to supply existing coal-fired power plants. The 100,000 lost mining jobs Trump promises to restore are almost all in the eastern Appalachian coal region, where mining costs are 10 times those of Wyoming, which has cleaner, more easily mined coal, and where the industry is highly mechanized.
At best, said Ori, you can only slow the coal industry’s decline.
“Nothing a Trump administration does is going to change that,” he said.
– Wind, solar under threat? –
Trump’s stance has worried many over the plight of energy renewables like wind and solar, which have for years benefitted from substantial subsidies.
But experts say that equipment prices have fallen so much that renewables are now competitive on their own. For example, without particular support, Texas, the capital of the US oil industry, now relies heavily on wind and solar energy for electricity.
“The renewables sector is really competing on a cost basis and doing so effectively, said Greg Wetstone, president of the American Council on Renewable Energy. “None of that changes with the election.”
The threat, he cautions, is a further fall in natural gas prices which would make it more competitive against renewable sources. But the Trump administration needs to understand that the renewables industry employs 300,000 people.
“This is mainstream business and there’s no reason to undermine growth and jobs.”

Billionaire Warren Buffett invests in 3 big US airlines

2016-11-15T01:13:00.002-08:00

Billionaire investor Warren Buffett has taken stakes in three large US airlines, in a $1.3 billion bet that marks a sharp U-turn of his antagonistic views on the sector.
Buffett’s Berkshire Hathaway Inc. invested $797 million in American Airlines, $249 million in Delta Air Lines and $237 million in United Continental Holdings, according to a regulatory filing reviewed Monday by AFP.
Berkshire Hathaway also took a stake in Southwest Airlines, CNBC television network reported Monday.

The financial guru was known for his dislike of the airline industry after his disastrous bet on preferred shares of US Airways in 1989, calling the sector a “death trap.”
The surprise Berkshire news pushed airline shares sharply higher in after-market trades. American Airlines jumped 3.5 percent, Delta was up 2.9 percent and United Continental, parent of United Airlines, gained 2.6 percent.
Buffett, the head of the massive Berkshire Hathaway conglomerate, is the world’s third wealthiest person.

NNPC appoints, redeploys management staff

2016-11-15T01:07:00.001-08:00

The Nigerian National Petroleum Corporation, NNPC, has announced the appointment and redeployment of top Management staff across board in a major exercise said to be designed to reflect operational realities and ensure sustained performance and profitability.
In a podcast to the staff, Group Managing Director of the Corporation, Dr. Maikanti Baru, said that the changes were informed by the desire to consolidate on the restructuring exercise through realigning jobs with requisite competences and experiences in line with international best practices, while taking deliberate measures to ensure fairness and equity as well as the capacity to deliver.
“As you might have heard, His Excellency Mr. President has approved the High Level Organogram of the Corporation and appointment of Staff into various positions. Most importantly, the changes were done in the
spirit of entrenching professionalism and accountability which is a cardinal principle of our 12 Business Focus Areas which are hinged on the slogan moving NNPC Forward…Together,” he said
While calling on staff members to support the ongoing restructuring efforts, the GMD noted that NNPC has made some progress in the implementation of the 12 Business Focus Areas.
“We can now deliver crude to our refineries, we have stabilized fuel supply across the country, Frontier Exploration Services and Integrated Data Services Limited have mobilized to the Benue trough and will soon resume activities in the Chad basin,’’ he said.
In all, 109 Management staff were promoted while 24 were redeployed in the exercise which saw the return of veteran journalist, Ndu Ughamadu as Group General Manager, Group Public Affairs Division.
He takes over from Garba Deen Muhammad.

FG yet to take decision on NNPC’s NSE listing

2016-11-15T00:45:00.002-08:00

The federal government has not taken a precise decision on the proposed listing of the stocks of the Nigerian National Petroleum Corporation (NNPC) on the Nigerian Stock Exchange (NSE) or any other stock exchange, it was learnt on Monday in Abuja.
According to authoritative sources within the ministry of petroleum resources, the proposal to list the stocks of NNPC on the exchange after its restructuring as contained in a new draft national oil policy has not yet been approved by the government.
The draft policy document was released last week by the ministry of petroleum resources. It indicated that parts of the stocks of the NNPC would be listed for trading at the NSE or other exchanges after its restructuring and corporation.
According to it: “The NNPC will be made autonomous from the state, it will relinquish all its policy making
and regulatory activities, and it will be treated on an equal basis with private sector operators for projects.”
The document also said the corporatisation and restructuring of NNPC will involve separating NNPC into five independent autonomous units or profit centre subsidiaries which will be operationally independent, self-accounting and will hold funds in their own right.
It explained that there will be a new parent holding company to be called the National Oil Company of Nigeria (NOCN) which will replace NNPC as a statutory corporation and legal entity.
“NOCN will be incorporated as a limited liability company, NOCN will be governed according to the governance rules of the Nigerian Stock Exchange prior to the listing of its shares, and by the rules of any bourse where its shares are eventually listed,” it stated.
One of the sources, however, said on the status of the proposal, that it has not been approved by the government, and that it was still a work-in-progress.
“It is important to note that since 2009, the PIB (petroleum industry bill) in its different versions including the latest in 2014 has always prescribed that the holding company (hold-co) would list a minority stake in the Nigerian Stock Exchange to provide a pathway for funding of the National Oil Company thereby improving its governance and funding for effective returns to its shareholders.
“In spite of the fact that this is the position adopted in the Petroleum Industry Governance Bill, the issue of the funding of NNPC going forward is still under consideration of the government,” said the source.
He further explained: “This clarifies that the government has not taken a position on the issues raised in the petroleum and gas policies which are still a work in progress and are for consultation at this juncture. It is ultimately for the government to decide on a final position on the issues after the consultative process with industry.”

AfreximBank reiterates need for knowledge, trade in development

2016-11-15T00:43:00.000-08:00

The urgency for focus on the economic benefits of knowledge and the role of trade in the development processes of the continent has again been brought to the fore by the African Export-Import Bank (AfreximBank).
The imperatives of the identified development catalysts formed a major part of the book titled: “Foundations of Structured Trade Finance,” by the President of AfreximBank, Dr. Benedict Oramah.
Oramah told his guests that it was the lack of appreciation of the power of knowledge that led to Africa being left behind in the race for development.
“While South East Asian economies realised back in the 1970s that it was a knowledge economy that could be trade–led and that it was a trade-led economy that could innovate and be competitive, African economies lost focus, consumed by commodity illusion and defensive import substitution strategies,” he lamented.
Consequently, Africa, which was well ahead of developing Asia, including China, in the 1960s and early
1970s in terms of per capita income, size of exports, share of global trade and economic growth rates, was swiftly overtaken in the 1980s.
According to him, it was to address that challenge that the book was written- to share knowledge about the innovative approach that made it possible to lend into areas previously considered risky by splitting the risks in trade transactions and allocating them to parties best able to bear them.
“Through self-liquidating financing arrangements,” Dr. Oramah explained, structured trade finance “converted country risk, a key concern to lending into crisis hit countries, into performance risk and transferred payment risks away from those jurisdictions, enabling international banks to gradually return to such lendings with limited risk of cumulative exposures,” he said.
He said that on inception, Afreximbank had adopted that concept, enabling it to make important contributions to its evolution, including stretching its application from raw commodities to value-added exports and commoditised revenue flows, he said.
Given that the field had evolved from practice and no textbooks existed and does not feature on the curriculum of universities offering finance, economics or business, except for special courses in some universities in Europe, the book would fill that knowledge gap.
However, the Nigeria’s Minister of Industry, Trade and Investments, Dr. Okechukwu Enelamah, said that despite the economic setbacks that had befallen the continent, Africa could be the engine of global growth in the coming years.
Enelamah, represented by his Special Adviser on Investments, Dara Owoyemi, said that Africans now need to trade more with each other in order to spur the eluded growth, with that same commitment going beyond sound bites to concrete actions.
He noted that the government had begun a refocusing process that would enhance trade diversification and exports through a series of actions, including raising knowledge about regulations and export markets, improving quality standards and introducing a single window for exporters.

Fraudsters target 63.7m banks accounts, e-payment channels

2016-11-15T00:22:00.000-08:00

Fraudsters have continued to get unauthorised access to bank accounts and other electronic payments platforms .
Statistics from the Nigeria Inter Bank Settlement Scheme (NIBSS) indicate there are 93 million bank accounts in the country with 63.7 million of them being active. As at September 2016, operators of current accounts in the country stood at 25.4 million, with savings account having 65.4 million holders while there were 2.48 million other accounts users in the country.
It was learnt that the introduction of the Bank Verification Number (BVN) by the Central Bank of Nigeria (CBN) in collaboration with the banks in 2015 showed that there are about 28 million unique identity accounts in the country.
With cybercriminals on the prowl, checks showed that customers of some top commercial banks in the country are currently being bombarded with suspicious phishing mails targeted at their daily Internet banking transactions.

It was learnt through a cyber security expert, who preferred anonymity, that some of these attackers (fraudsters) are based in the United States, United Kingdom, UAE, Russia and South Africa among others, trying to break into accounts in Nigeria because of the open Internet gateway.
A 2014 NIBSS report showed that there were 1, 461 cases of fraud in 2013 involving N7.7 billion-attempted value, but that about N6.2 billion was actually lost to e-fraud.
The fraud is projected to come through several scam mails, technically called phishing, which are being received on a daily basis by customers of some of the banks. Phishing emails try to trick the user into revealing some personal information. The emails look like they are from a legitimate source, such as a bank, Google or Yahoo, but they’re not. They attempt to lure unsuspecting bank customers by asking them to open a link to either update their online banking profile or change their Personal Identification Numbers (PINs).
The President of Cyber Security Experts Association of Nigeria (CSEAN), Remi Afon, who revealed that 89 per cent of breaches had a financial or espionage motive, noted that phishing accounted for 83 per cent of cybercrimes. According to him, it usually takes 146 days before a successful breach is detected, while 84 per cent of breaches are against the application layer.
Some of the phishing emails, which were purportedly sent by a bank, through an online medium reads: “Dear customer, we got a request to reset your password and if you did not make this request, kindly follow the below link (provided in the email) to cancel the password request on your online account.” Also, the customers receiving the scam emails are told: “If you made this request, kindly follow the below link to proceed with the password request on your online account.”
Another email purportedly sent by the bank reads: “Dear customer, this is a confirmation that the password for your online account has just been changed. If you didn’t request or make this password change, kindly follow the secured link https://ibank…bankplc.com/RetailBank/ for security purpose.
“If you made this password change kindly follow this link to review your account information https://ibank…bankplc.com/RetailBank/.”
In an email from another bank’s online platform, customers were told that a beneficiary had been added to their online account and that they should click a link if they had not authorised such a beneficiary.
The scammers will thus provide a Universal Resource Locator (URL) link, which the unsuspecting customers are implored to click to go and ‘de-activate the beneficiary.’
A similar phishing email will ask bank customers to update their online banking profiles. Another scam message sent to a customer via a mobile phone, reads: “Dear customer, due to system upgrade and BVN link your ATM card has been deactivated. To activate, call customer care line on 0810…”
A senior official of a bank, who preferred anonymity, said that the bank was not the one sending such emails, but online scammers, with the intent to defraud their unsuspecting targets.
She said the bank, like the other ones, would not advise the customers to change their PIN online or reveal some vital information in the cloud.
The Google West Africa’s Communications and Public Affairs Manager, Taiwo Kola-Ogunlade, in an interview said phishing emails tried to trick people into revealing personal information.
Ogunlade said through phishing, the type of information targeted from customers include the demographics and those that are personally identifiable (those that can be used to identify, contact, or locate a person or can be used with other sources to uniquely identify a single individual, including name, address, phone number, social security, birthday, birthplace, credit card information, account numbers).Others relate to behaviour (purchasing habits, websites visited, credit card transactions).

NCC to sanction 13 operators over unsolicited telemarketing

2016-11-14T04:22:00.000-08:00

The Nigerian Communications Commission (NCC) on Monday said it would sanction 13 telecommunications operators for failing to comply with the ‘2442 Do Not Disturb (DND)’ directive on unsolicited telemarketing.
According to a statement signed by the NCC’s Director of Public Affairs, Mr Tony Ojobo, the directive was issued on April 20, 2016.
Ojobo said that the 13 operators included: Airtel Network Ltd., MTN Nigeria, Globacom Nigeria, Smile Communication, Visafone Communications, Ntel, Etisalat, Multi-Links, Starcomms, Danjay Telecoms, Gamjitel Ltd., Megatech Engineering Ltd. and Gicell Wireless.
According to him, the service providers have been given another one-week ultimatum, from Monday, Nov. 14, 2016, to remedy the situation or face the sanctions enshrined in the directive.
“Worried by the non-compliance by the operators, occasioned by a deluge of complaints by subscribers
across Nigeria, the NCC inaugurated an eight-member committee to look into the matter.
“After several meetings, including those it held with the network providers, it became necessary to issue the latest ultimatum to redress the menace of incessant unsolicited text messages and phone calls for telemarketing via the various networks,’’ he said.
Ojobo said the commission had written to the providers on whose networks it had received series of complaints from subscribers regarding the efficacy of DND.
He said the phrase ‘Network-Generated SMS’ referred to in Part (d) of the directive shall be taken to mean messages and calls, with respect to only information on emergencies.
According to him, the information on emergencies, include: national security, fire, notifications on network maintenance programmes down times and notification regarding subscribers’ bundle usage and service renewals.
“Other text messages and voice calls informing subscribers of new products and service offerings are not regarded as ‘Network-Generated’ and, therefore, regarded as “unsolicited marketing messages’’.
“NCC has therefore, asked these network providers to ensure that information on the Do Not Disturb service should be disseminated after every revenue-generating activity via the End of Call Notification (EOCN).
“For the period not less than 45 days, within the hours of 8 a.m. to 8 p.m. daily, from the receipt of the latest letter on the subject.
“The operators are also admonished to deploy this information through all their channels of communications, including websites, social media platforms, billboards, flash messages, text messages, Interactive Voice Response platform, radio jingles, newspapers advertisements and television commercials,’’ he said.
The director said that this notice served as a pre-enforcement notice, adding that failure to comply with it would attract appropriate sanctions.
He said the menace of unsolicited text messages had been a nightmare to subscribers.
Ojobo said that the commission could no longer accept further excuses from network providers.