Naira strengthens against dollar in black market

The Nigerian currency which seemed poised for a run of depreciations at the parallel market following the new development in the country’s downstream oil sector, crashed further on Friday, May 13, ending the week at N360 per dollar.
Nevertheless, the currency maintained its value at the official CBN peg, exchanging at N199 to the dollar despite report on Sahara Reporters that the naira now sells for N290 and N360 at CBN.

The naira is expected to remain flat but rather stable this week ahead of the rollout of the foreign exchange policy of the Central Bank of Nigeria.

The Nigerian currency which seemed poised for a run of depreciations at the parallel market following the new development in the country’s downstream oil sector, crashed further on Friday, May 13, ending the week at N360 per dollar.





Nevertheless, the currency maintained its value at the official CBN peg, exchanging at N199 to the dollar despite report on Sahara Reporters that the naira now sells for N290 and N360 at CBN.





fact check today, May 16, shows that the naira has strengthened against the dollar and now sells for N343 to the greenback as against the N360 rate on Friday. This was disclosed by one of our Bureau de change sources.

our BDC source in Katsina said: “The naira now trades at N343 to a $1. There is rush for dollars following government’s decision to throw open permission to import and sell Petrol Motor Spirit (PMS), to any interested Nigerian entity.”

The president of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, also revealed that the pressure on the naira would continue to be strong but the value is expected to be relatively stable as the market awaits the decision of the apex bank.




He said: “There has been calm after the initial announcement which saw the naira drop to N360, which it is at now, and is expected to remain so until the CBN announces their plan.”

Meanwhile, you can check out our bureau de change market here for the most authentic forex rates.

Female NYSC member takes steps to reduce Unemployment and promote Entrepreneurship in Nigeria.

A female corps member  Bamido Idowu  is trying to solve the problem of unemployment in Nigeria and promote small and medium scale enterprises by creating a website www.bamwase.com




Bamwase serves as a market place for jobseekers, businesses, employers and customers.
Job seekers create profile that would be seen by prospective employers and recruiters and businesses create business profile that would be seen by intending customers and other businesses.


While speaking with Bamido Idowu the CEO of Bamwase she said the idea was birthed when she heard entrepreneurs complain about lack of employees and customers for their businesses and also noting how jobseekers in her circle struggle so hard to get jobs.




Bamwase seeks to correct that, as not only are jobs posted daily free of charge by intending employers   from all over Nigeria for job seekers to apply to, there is also the added advantage of getting a part time job or doing freelance jobs like running errands and doing task for a fixed fee determined by the job seeker subsequent to being fully employed.


Businesses can promote their products and services by creating a business profile that can be seen by intending customers and other businesses, contracts and tenders are posted daily by individuals, companies and government agencies for businesses to submit quotations.Bamwase also helps businesses in advertising their goods and services via social media, ad banner, bulk sms ,blog post, email marketing.



“We hope that soon Bamwase would expand outside the shores of Africa and be a known as the one stop shop for Africa’s labor market, where you can get any individual or business to do any kind of job in Africa”

Social media etiquette for Nigerian businessmen

Social media has proven to be an essential tool for numerous businessmen in Nigeria as it is changing the way customers and businesses interact. Some people have even created whole businesses solely over the internet with the help of social media and are very successful.




While most of these businessmen who find themselves in position where they have to network through sites like Facebook, LinkedIn, Twitter and Google+, do not undergo formal training on how to use the social media, they have come to realize that the way they conduct themselves on the platforms plays a key role in how they and their business if perceived.


Unfortunately, most of these businessmen are still unclear as to the best practices as well as the social media etiquette they need to imbibe to survive in the field. In that regard, Jovago.com, Africa’s No.1 online hotel booking service offers 5 social media etiquette rules to help that Nigerian businessmen navigate social media with grace.


Pick an appropriate screen name

The name that you pick for your handle must be something that represents you and your company well. The screen name serves as you identity and it is the first thing that most people who connect with you relate to. Ensure that whatever you chose send a clear message, is succinct and most importantly, relatable.  Try to avoid using nicknames, abbreviations or slangs not even remotely related to your business.  

Ensure you compose and proofread posts, updates or tweets before publishing them

As a businessman, you must understand that your activities on the social media directly reflect on your business. Ensure you check every post for grammar and spelling errors before you post them, also, make sure the information you are sending out is genuine and can be verified. Building trust and authenticity are key when relating with customers or connecting with stakeholder online.

When marketing, use a first name



Yes. You are on the social media for business, and you

want to keep it  all professional, but you need to keep in mind that connecting with people on the social media is very different from booking office appointments or making calls. If your intent is to grab the attention of the customers and actually get them respond back to you, you need to make your connection more personable. Doing your research and using the person’s first name is a good way to start.

Connect with people with whom you have a link

The social media is open and allows most users to connect to anyone who uses the same platform, no matter their class, field or location. As a business man, this may seem like a good opportunity to reach out to as many people as possible, especially people who you may not know, but you feel can take your businesses to greater height or make a good purchase from you.. Please fight the temptation.  Do not approach strangers and ask them to be friends with you just so you can then try to sell them on your products or services. Doing so will ensure that you quickly lose credibility and that is not in any way good for business.

Do not be reactive



If you are determined to have your business succeed on the social media, you need to put a pin on your emotions and find a way to check yourself while communication with others, especially when you are locked in an argument and you see yourself getting sucked in. While it is important to address every issues or complaint relating to your product  or service, be careful the words you use as your words and actions can be saved and dredged up down the line. Also ensure that your responses are rational and constructive so that you do not develop a reputation as a hot head.


Ndem Nkem
Travel/Tech Writer

Meet Bamido Idowu whose company Bamwase is empowering jobseekers and small business owners in Nigeria

Tell us a little about yourself?

I  was born and raised in Port Harcourt, to a business man as a father and my mother is a teacher but also dabbles in business, My parents were blessed with 6 children and i am the third child and 2nd daughter. I am a legal practitioner with a law degree from the University of Abuja,

So how do you combine being a lawyer and a business woman?

Actually it has not been easy there is a popular saying  that “you can’t serve two masters soon one is going to suffer” so right now i am 100 percent dedicated on building the Bamwase brand though i  still have some outstanding legal obligation to clients 



Of all the businesses why did you decide to go into the internet business?

The internet has always been a fascinating place to escape to right from the time i knew the internet existed. The only problem my parents had with me while growing up was The internet problem in a time where the internet was an unknown to most Nigerians, i spent all my time at a cyber cafe which was far from home and i frequently get lost in that world that i lose track of time until the close of day so i kept many late nights which got me into so much trouble at home. So when the time came for me to go into business it was logical it would have something to do with the internet.

What prepared you for the world of business?

When i was 15, I was the president of the Junior Achievement of Nigeria and that prepared me for the challenges of the The business world and ever since then i have been into various business venture. The best teacher in life is experience, so for as long i can remember i have been into various ventures and i have recorded many failures and i grew from those experiences

where do you see your business in the next ten years?

In the next ten years Bamwase should be a household name from all over the world making life easier for people and empowering businesses and professionals  all over the world. 




Don't forget to visit www.Bamwase.com and register

Bamwase:bringing opportunities to your doorsteps

PHOTOS: Ark Global Publication Launch

Ark Global Publication is one of the fastest growing Printing Publication in Lagos Nigeria, registered and it's the most prominent in Yaba College of Technology established few years ago.

Owned by Ogunbanjo Michael Opeyemi  and Adeshina Remilekun Moses.

It was officially lunched on 26th of March 2016.

The company deals with any type of Printing - Offset Printing, Banners, Screen Printing, Vehicle Branding, Graphics Design, Outdoor Advertising, General Prints and much more.

For more info.:
Whatsapp: +2348181785489,       Phone: +2347086676479
E-mail: arkpublications2012@yahoo.com,ogunbanjomike2012@gmail.com
Instagram: arkglobal
Twitter: @arkglobal4

Photos Credit: Adebisi Peters and Nifemi O.

Naira Weakens Slightly Against Dollar At Parallel Market

The naira weakened slightly against the dollar at the parallel market on Friday as it exchanged at N321 to the dollar.
The News Agency of Nigeria (NAN) reports that the Nigerian currency lost N1 to the dollar from N320 rate on Wednesday.
The naira also fell against the pound sterling and the Euro on Friday to N452 and N362, respectively from their previous rates of N450 and N360.
The naira still maintained N197 to the dollar at the official CBN segment of the market.
Traders said that activities in the market were still low due to late implementation of the 2016 budget.
They said that the budget would indicate the direction of the economy in 2016. (NAN)

Sales are On! Turn Up at the Jumia Online Birthday Party

Hurray! Jumia is 4 today and we’re having an online party: we celebrate, you get the gifts!

We have partnered with Verve, MTN & Air France/ KLM to bring you a birthday sale-abration to remember. Be our guest and treat yourself to our discounts of up to 80% Off, unbelievable flash sales on top brands like Samsung + Panasonic, and an exciting website Treasure Hunt sponsored by Air France/ KLM, all in the Jumia Birthday store.

From today, Tuesday, 5th until Thursday, 7th of April, 2016. 8 AM today!

Reports from our Commercial Team indicate that the Infinix Hot 2 sold out in minutes during our first flash sale. Watch out for other incredible flash sales on Samsung TVs, Infinix Hot 2, Tecno Droipad, Panasonic TVs, Asus laptops, loads of fashion items and more every 3 hours starting from 9am to 6pm.

And here comes the icing on the cake – 10 Airline tickets are up for grabs at 50% OFF to any destination that Air France & KLM flies to in the world. Here is how you play: simply look for the voucher, click on BUY NOW, and proceed to checkout. Voila! A confirmation will be sent to you.

This is not a party to miss, and rest assured that all of your favourite brands have RSVP’d ‘YES!’ and are at the party.
As part of our anniversary celebrations, we have also launched the Jumia Play for the Team Games on Social Media! The trick is to hit 5000 likes on Facebook and 1000 retweets on Twitter to force the price of an Infinix Hot Note to crash to ______! .

Hurry now! Download the Jumia app today or subscribe to our newsletter to take advantage of the Jumia birthday flash sales.

Buhari, Oil Workers Meet To Tackle Petrol Scarcity

 



President Muhammadu Buhari has held a meeting with the leaders of the NUPENG and PENGASSAN behind closed doors in the Presidential Villa, Abuja to promote peace and harmony in the oil and gas sector.
Briefing reporters after the meeting on Wednesday, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said the meeting reviewed the oil industry and looked at how to end the petrol scarcity.
He said that the President, who had headed the sector before, shared some of his thoughts and possible solutions to the challenges.


Dr Kachikwu told reporters that the government was looking to see how it could get foreign exchange input to help in cushioning the crisis of petroleum supply.


“The President and I discussed extensively this morning and we talked about how to allocate more crude because His Excellency will rather have less crude, but having individuals in the society not suffer than have more crude and have them continue to suffer.
“We are going to put a new model to enable us increase the pace and actually get measures, as part of the crude that we are entitled to, to apply some of those to bringing in more product so that the role of the NNPC will go back to what it has the capacity to do.
“If we do that, I will expect that over the next two months we should see quite frankly, an elimination of this,” he explained, referring to the petrol scarcity currently being experienced across the oil-rich nation.


“Make Nigerians Smile Again”
He further said that the government’s strategy in tackling the shortfall of supply was to reserve some refined products.
“Whatever is produced in the refinery will not go for sale. We are going to put that into strategic reserve.
“The key problem here is, because there is no reserve, anytime there is a gap in supply it hits us,” he stated.
The President is said to have tasked the workers in the oil sector to be agents of change and to ensure they take change on its head and make it happen.


The National President of Nigeria Union of Petroleum and Natural Gas (NUPENG), Igwe Aghaeze, said they discussed the issue of the petrol scarcity and the Petroleum Industry Bill at the meeting.
“We discussed how the oil sector will bounce back economically and make Nigerians smile again.
“Keenly we talked much more on the issues of the corruption in the oil and gas sector vis-a-vis the product allocations which we (NUPENG and PENGASSAN)  are trying to do together.


He said that the President assured the unions that they would be part of the restructuring that would be made to address the issues and ensure that scarcity is out of Nigeria’s fuel service stations.
On his part, the President of Petroleum and Natural Gas‎ Senior Staff Association of Nigeria (PENGASSAN), Olabode Johnson, also recognised the fact that the President was not new in the sector and expressed optimism that he was capable of introducing the magic wand that would change the ugly situation.


Nigerians will be watching and waiting to see the queues disappear completely in a country said to be one of the biggest oil producers in the world.
It is only then that they will believe that the meeting had a fruitful deliberation.

FG To Generate Four Billion On Travel Costs

 

The Federal Ministry of Finance has revealed plans to generate four Billion Naira on travel cost.
The Ministry noted that its efficiency unit has engaged in negotiations with local and international airlines for discounts to commensurate with the large number of ticket purchases made annually by the government.
According to the Ministry, the savings generated will increase funding available to the government for capital investment.
With estimated savings of approximately four billion Naira, the Finance Ministry has asked the efficiency unit to make travel a key focus area for cost cutting and generation of savings.

Nigeria inflation hit 11.4 percent in February — Statistics bureau

Nigerians paid about 1.76 percent higher in prices of goods and services in February than what they paid in January this year​, the National Bureau of Statistics has said.

​
The latest Consumer Price Index, CPI, which measures the average rate of inflation in the prices of goods and services over a period, showed that headline inflation grew from 9.6 percent in January to 11.4 per cent during the month.

The National Bureau of Statistics​ said in its latest report published on Tuesday in Abuja that the new rate for the month of February was higher by 9.6 per cent than the corresponding period in January 2015 (year-on-year basis).

On a month-on-month basis, the headline index increased at a faster pace by 2.3 percent in February, about 1.4 percent points relative to the rates recorded in January.
The report said the speedy rise​​, which led to the overall increase in the headline index, were recorded across almost all major divisions, except the restaurants and hotels divisions, which, it noted, increased, at a slower pace.

Food prices sub-index increased at faster pace in February by 11.3 per cent, up by 0.71 per cent points from rates recorded in January after increasing at the same pace for two months, the NBS noted.

During the month, the NBS said all major food groups contributed to the food sub-index increasing at a faster pace during the month, except potatoes, yams and other tubers as well as sugar, jam, honey, chocolate and confectionery groups.

The “All Items less Farm Produce” or core sub-index, increased at a faster pace in February as imported items as well as other domestic shocks, which resulted in ripple effects across many divisions that contributed to the core inflation index.

The index increased by 11 per cent in February, about 2.2 per cent points from rates in January.

Average index consists of the Core Index and Farm Produce items.
In January, both the urban and rural indices recorded significant increases, with the former rising by 12.3 per cent (year-on-year basis) from 9.7 per cent recorded in December, while the latter increased by 10.7 per cent in February from 9.5 per cent in January.

On a month-on-month basis, both the urban and rural indices increased at a faster pace, with the former increasing by 3.0 per cent in February from 0.9 per cent in January, while the latter index rose by 1.8 per cent from 0.9 per cent in January.

The NBS said the percentage change in the average composite CPI for the 12 months period ending in February 2016 over the average CPI for the corresponding 12 months was 9.4 per cent, higher from 9.1 per cent recorded in January.

The corresponding 12 month year-on-year average percentage change for the urban index, the report said, increased from 9.2 per cent in January to 9.5 per cent in February, while the corresponding rural index also increased from 9.0 per cent in January to 9.2 per cent in February.

Central Bank Of Nigeria Suspends Deputy Governor, Directors For Fraud

One of the three deputy governors of the Central Bank of Nigeria is currently on suspension for being involved in ‘a sophisticated plot’ to defraud the bank a huge sum of money, findings by our correspondent have revealed.

Top officials of the CBN close to the development told our correspondent that two directors of the bank were also suspended over the multi-million naira scam.


The officials, who spoke on the condition of anonymity because they were not authorised to speak on the matter, said their suspension was ordered by the CBN Governor, Mr. Godwin Emefiele after preliminary findings revealed that they might be culpable.


The CBN had on Thursday night said it had uncovered what it described as a highly sophisticated plot to defraud the bank by some people.


The bank said in a statement by the Acting Director, Corporate Communications, Isaac Okoroafor, that while preliminary investigations had not revealed any accomplices within the bank, some personnel within the CBN had been placed on suspension.


The nature of the fraud was not specified in the statement.
It, however, said the need to place the officials on suspension was to allow for proper investigations by the relevant authorities.

The statement read, “A highly sophisticated plot to defraud the CBN by some criminally minded elements has been uncovered and aborted by the bank.

“Although preliminary investigations so far have not revealed any accomplices within the CBN, the management has decided to place all key personnel involved in the transaction on suspension.
“This is to ensure a full and unfettered investigation. This incidence has been reported to the relevant authorities.”

The CBN in the statement assured stakeholders in the banking sector that the security within the central bank remains intact and had not been breached.

Experts said the CBN as a regulator was being saddled with responsibilities that were related to that of commercial banking and, as such, made its system prone to corruption.

Economic and financial services expert, Mr. David Adonri, who is also Chief  Executive Officer of Highcap Securities, said, “The CBN is a banker to the Federal Government; it is also in charge of the foreign exchange market; it is also in charge of regulating the banks.

“In some countries, those functions are separated. The CBN is allocating forex to banks. There have been lots of cries that some are favourerd while others are not favoured. This is something that can breed corruption. There are two ways to allocate scarce resources, namely administration and market. That of administration is not always effective in allocating scarce resources. It is only the market that can do a good job.”

He also said, “With the implementation of the Treasury Single Account, the CBN is now more of a banker than a regulator. That is another thing that can breed corruption. The CBN is being saddled with more responsibilities that have to do with banking rather than being a regulator.

“The attempted fraud allegation is very disappointing, discouraging and is not expected to be coming from the regulator. This is what happens when the regulator also plays the role of a player.”

A top ex-banker and Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chukwu,  commended the CBN for having what he described as a robust internal control system to intercept the fraud.
He said, ‘The fraud attempt was unsuccessful, so it is a plus and indicates that the CBN has a robust internal control process. It shows the level of desperation of people to make money. This kind of thing usually happens in the financial services sector, but the key thing is to ensure there is robust system to intercept it.”

The CBN spokersperson, Okoroafor, refused to disclose the names of the suspended officials.
He said, “I am in a meeting in Calabar. Investigations are ongoing. Some key personnel of the bank have been placed on suspension not because they are the perpetrators. We need to have a full and unfettered investigation. Please note that the perpetrators are from outside. Two of them have been arrested, and no accomplice has been found within the CBN so far.

MTN Entrepreneurship Challenge: 1st Place wins $40, 000

MTN Entrepreneurship Challenge for graduates and undergraduates from over 60 universities across 13 African countries.

MTN Entrepreneurship Challenge powered by Jumia is organizing an innovative competition run by the Graduate School of Business at the University of Cape Town and Africa Internet Group. The competition spans across 13 African Countries (Botswana, Egypt, Ghana, Ivory Coast, Kenya, Morocco, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Zambia and Zimbabwe).
The competition will run in 4 phases as follows:
Phase 1: Current students and recent graduates of African universities submit their applications until Sunday, March 27, 2016.
Phase 2: Live pitches-Top 10-15 applicants in each country present their business to panel of judges
Phase 3: Selection Committee- Selects 3 Finalists across Africa
Phase 4: Entrepreneurship Festival-Finalists fly to Cape Town for Entrepreneurship Festival and pitch their business to an audience of International investors and successful business people.
The winner of the MTN Entrepreneurship Challenge will win a cash prize of $25 000 towards their start-up, and will receive a yearlong partnership with Jumia, where they will have the opportunity to work from any of Jumia’s offices across Africa.
The winner will also have access to a Facebook Start Programme to the value of $15 000, which includes tools and services needed to build mobile applications. In addition, they will have the opportunity to work from the MTN Solution Space at the University of Cape Town’s Graduate School of Business. The two runners-up will each receive $5 000 towards their projects.
Applications for the first round of the multi-phased competition are open and will close on 27 March.
Aspiring entrepreneurs can enter in teams by logging onto http://www.gsb.uct.ac.za/MTNECbyjumia.

Forex crisis won’t derail financial obligations, says CBN

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has assured that Nigeria will continue to meet matured financial obligations to foreign investors and her international trading partners.

Speaking to visiting members of the German business delegation in Abuja, Emefiee said that Nigeria has been going through economic crisis due mainly to shocks arising from falling global oil prices, pointing out that the effect has been a severe shortfall in foreign exchange revenues.

He told the visitors that given the development, the country is left with no option than to diversify the nation’s economic production base and curtail frivolous importation.

The apex bank’s sued for their understanding on the regulator’s policies, which he said are meant to conserve foreign exchange, assuring them of the CBN’s effort to meet demands within the available forex resources.

Earlier, the leader of the visiting team, Vice Minister and Member of Parliament, Uwe Beckmeyer of the German Federal Ministry for Economic Affairs and Energy, said the essence of the visit was to familiarise themselves with developments in Nigeria’s financial sector and to devise means of articulating business relationships between the German business firms and their Nigerian counterparts.

He said that members of his team, with interests in such areas as power generation, light machines for Small and Medium Enterprises, were having some challenges in sourcing inputs for their production as well as the issue of double taxation.

He pleaded that German companies doing business in Nigeria would appreciate being assured of the certainty in areas of currency control as it affects profit remittances.

Naira now stands at 320-332/dollar on parallel market

In spite of the uncertainties surrounding the new rates of the Nigerian currency against the dollar, the week has ended on a much improved note compared to last week.

At the beginning of the week, the naira leapt from N400/dollar (the rate from last weekend) to a strong N375/dollar on the parallel market, a situation which threw the Bureau De Change (BDC) operators into a state of pandemonium as it was unprecedented.

The naira remained unstable against the dollar this week but is still better than what was obtainable last week.
In fact, speculators had been shocked by the consecutive rise on February 23, as they had predicted an all-time rise from the initial N400 (an all time low) to about 450/500 in the coming days.

But as if it was a planned work, the naira firmed up further against the dollar in the next two days, as it eventually fell to a massive N290/dollar which all but calmed a lot of nerves among Nigerians who are into foreign exchange business.

At the start of the week, Ifeanyi Ubah, the chairman of Capital Oil and Gas, had bragged about being able to turn the fortunes of the naira against the dollar and reduce it to about N20 0, adding that President Muhammadu Buhari should make him his financial stability consultant.

And like a script in a movie, the naira continued to firm up against the American dollar after Ubah’s statement, a situation which made many think he probably made true his intention to ensure the continuous growth of the Nigerian currency.

The dollar may not be able to stand against the naira if the current trend continues.

However, with the demand for the foreign currency on the rise again, BDC operators confirmed that it suddenly became scarce as many of their agents decided to hold back what they had, this resulted in another rise of the dollar in the last 24 hours.

As it stands, the naira is exchanged for between N320 and N332 on the parallel market.

The News Agency of Nigeria (NAN) reports that the naira remains at N320, however, Naij.com’s sources at the BDC noted emphatically that, “presently, people are reluctant to sell because they are expecting it to rise further. But, right now, it is goes for about N332 to one dollar.”

Although it is quite disappointing for Nigerians who had started jubilating following the recent rise of the naira, they will take solace in the fact that it is no longer at N400/dollar that the week started with.

And with President Buhari insisting that he would not devalue the naira, especially in the wake of the International Monetary Fund (IMF) asking him to lift the ban on forex, Nigerians may soon heave a sigh of relief with the state of the economy.

Economist Points Out Real Issues In Nigeria’s 2016 Budget

An economist, Bismarck Rewane, has identified real issues in the 2016 budget that Nigerians and the parliamentarians must focus on and address in good time.

Mr Rewane stressed the need for the lawmakers to accelerate the budget debate and passage to stimulate the Nigerian economy, saying that there was “no time to be wasted playing around with the budget document”.

He made the comments on Wednesday while giving his opinion on the budget debate and shift of the time of passage by the National Assembly.

“Nigerians and the parliamentarians must understand the difference between what is important and what is urgent.

“There is no pure budget document.

“Approve those things that you are comfortable with and the things that you are not comfortable with, throw them back to the ministries to do what they have to do. We cannot afford to wait.

“You have to stimulate this economy into growth,” the economist stressed.

He agreed that some of the details of the budget could be frivolous, but emphasised that the real issues should be the focus of the government.

“The debate at this time should be; is $38 a reasonable and realistic oil benchmark? Is it possible that we can produce 2.2 million barrels of oil per day when our quota is 1.7 and our actual production is 1.8 million? That is almost a 20 per cent deviation from the estimate.

“Is the deficit going to be 2.2 trillion Naira when the price of oil has dropped and our revenue has dropped by 30 per cent? How are we going to fill the gap? Are we going to borrow? If we are going to borrow almost 2.3 trillion, where is the shortfall going to come from? These are the things we should be talking about,” Mr Rewane questioned, pointing out the contentious areas in the budget.

The spokesman for the House of Representatives, Abdulrazak Namdas, said that the National Assembly would do its best to ensure that the budget that would be passed would be acceptable to all Nigerians.

He said that timing was not much an issue, explaining that the National Assembly had amended the appropriation of 2015 for the capital expenditure to run till March 31, 2015.

“Even if this budget is passed on 25 February, it will not take effect until first of April. I think we still have time on our hands and we are going to work on that very well.

“On Friday, the session with MDAs [Ministries Department and Agencies] will end and committees will start to meet with the appropriation committee and see how this thing will work,” the lawmaker stated.

He said that the parliament had decided to amend the timing and extend it to March 31 in view of the time that the 2015 appropriation would elapse.

Don’t take World Bank loan – Falana tells FG

A Lagos-based lawyer, Mr. Femi Falana (SAN), has warned the Federal Government against obtaining loan from the World Bank to finance the 2016 budget.

The Federal Government had disclosed plan to borrow $2.5bn from the World Bank and another $1bn from the African Development Bank.

But Falana, who wrote to the Minister of Finance, Mrs. Kemi Adeosun, on Friday, argued that there was no need to obtain $3.5bn loan to finance the budget when the Federal Government could recover about $66.5bn it was being owed.

The lawyer urged the Federal Government to drop its proposition to obtain World Bank loan, noting that it required the endorsement of the International Monetary Fund, which he said, usually imposed stringent conditions on borrowing countries.

He lamented that the debt profile of the country had now grown to $64bn after it took much effort in 2005 for the country to exit the London/Paris Club after struggling to repay a loan of $12.4bn.

Falana urged the Federal Government to make effort to recover the over $66.5bn accruable to it, rather than obtain loan to finance the budget.

According to him, part of the said $66.5bn was the sum of $20.2bn in form of underpayment/underassessment of taxes, royalties, levies and rents, which a former Executive Secretary of the National Extractive Industries Transparency Initiative, Mrs. Zainab Ahmed, called on the Federal Government to recover.

Falana also recalled that there was about $11bn which the Central Bank of Nigeria injected into the banking industry between 2006 and 2008 as bailout to commercial banks, which had yet to be recovered.

Besides these, Falana also recalled that the Federal Government had on September 6, 2015 announced that the management of the Nigerian National Petroleum Corporation was in the process of recovering the sum of $9.6bn in “over deducted tax benefits from joint venture partners on major capital projects and the legacy OPA/SWAP oil contracts.”

He also made reference to the $750m of the late Gen. Sani Abacha’s loot, which the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN), said arrangements had been concluded on it to recover.

Finally, he also recalled that the a recent probe by the Senate revealed that the Asset Management Corporation of Nigeria had accumulated about $25bn which, according to AMCON’s Managing Director, Ahmed Kuru, was owed by “big men who fly in private jets, live in big mansions and they have taken money and they are not paying back.”

Falana said, “From the foregoing, you will agree with us that the hapless Nigerian people should not be made to pay for the gross mismanagement of the national economy by the Federal Government and the profligacy of the pampered members of the ruling class.

“Instead of taking a loan of $2.5bn with dangerous conditionalities from the World Bank, the Federal Government should recover the aforesaid loans and revenues of not less than $66.5bn with the assistance of the anti-graft agencies.

“While acknowledging the concerted efforts to recover the looted wealth of the nation through the anti-graft agencies and the Arms Procurement Panel, the Buhari Administration should embark on the immediate recovery of the aforesaid loans and accrued revenues with a view to financing the 2016 budget and the infrastructural development of the nation.”
[Punch]

Budget 2016: N1.8tn Investment Will Trigger Economic Turnaround, Says

The Minister of Finance, Mrs. Kemi Adeosun yesterday assured the nation and the international community that the proposed N1.8 trillion capital investments in the 2016 budget would be crucial for stimulating economic growth in the country.

She also said the 2016 budget would finance investments in key infrastructure particularly in transport, power, health, housing and education and boost job creation among other things.

Adeosun who addressed participants at the KPMG in Nigeria’s CFO Forum and Survey Launch in Lagos yesterday stated that to reflate the economy and avoid recession, a spending stimulus was needed.

The Minister, in her keynote address, further explained the current administration’s plans to reposition the economy, noting that the planned "investments would create jobs with the various contractors that would execute the projects.

She explained that public investment would attract further investments from the private sector and that investments in power and transport would further increase the competitive position of Nigerian businesses.

Adeosun, in a statement issued by her Special Adviser on Media Matters, Mr. Festus Akanbi, cited the case of Ethiopia, which is now seen as a model for African economy which had diversified from a single product, coffee to a multi-product with exports of flowers providing $3.5bn of earnings as well as leather goods and other products.

She said that to attain that level of growth, the Ethiopian government had invested up to 60 per cent of its budget in capital projects, pointing out that this threshold contrasted with the Nigerian situation, where in 2015, Nigeria’s capital expenditure was just 10 per cent of the total budget.

According to her, “No economy has ever grown by underinvesting in infrastructure."

Nevertheless, Adeosun said ongoing ”fiscal housekeeping”, which included sanitising the payroll, which to date, had unveiled over 23,000 possible ghost workers and the creation of the Efficiency Unit was a key strategy in managing recurrent expenditure, adding that the focus on improving non-oil revenue collections was an important strategic objective.

She noted that this was essential in ensuring that the planned government borrowings were channeled to capital projects rather than being spent on recurrent items.
On the proposed borrowing to finance the 2016 budget deficit, the Minister explained that Government was seeking the lowest cost funds and was therefore consulting with the multilateral agencies, which offered concessional rates of interest as low as 1.5 per cent before looking at the commercial Eurobond Market.

She said that the financing strategy was to restructure much of the existing debts, which has short maturity and align it with the investment plans of the government in line with its Medium Term Expenditure Framework.

She further assured that government was ensuring that projects to be undertaken would create direct and indirect revenues, which would be used to repay the obligations.

The Minister said that for the medium term, the outlook for the economy was strong and that if the planned investments in capital were undertaken then the GDP growth projections showed that Nigeria would become a leading global economy.

She said that government would work to ensure that consumption from our huge population would drive internal growth across a number of key sectors.

She also assured the audience that if the disciplined implementation of the plans could be attained then Nigeria would finally be able to diversify, ending a situation where the entire nation is dependent on the oil price.

Nigeria to benefit from $200bn foreign investment

A group of international investors, under the aegis of Greenstone Capital International Africa and Tacnero Global, have disclosed plans to invest $200bn in five African countries, including Nigeria.

The group’s legal adviser, Greg Anumenechi, said in a statement on Thursday that the investors’ target sectors were agriculture, aviation, medicals, solid minerals, marine, power and petroleum.

According to him, the investment plan tagged: AMPLE, will also be extended into real estate, industrial, Information Technology, parks, education and the development of Nigeria’s version of the Silicon Valley.

To benefit alongside Nigeria in the $200bn investment plan are Ghana, Democratic Republic of Congo, Somalia and South Africa.

Anumenechi explained that the foreign investors planned to warehouse the bulk of the fund in a consortium of banks as proof of funds for government-related concession capital projects in Nigeria.

Already, he said the investors had succeeded in getting the approval for a Silicon Valley university in Lagos State, adding that they were also investing in the development of alternative energy for the entire country in addition to building an ultra-modern modular refinery for oil and gas development.

Anumenechi said, “It is expected that the injection of such massive funds into Nigeria and the other African countries for business development will generate over two million employment opportunities in Africa, with Nigeria taking the chunk because of its enormous potential.

“Some of the projects already earmarked and approved for Nigeria include the construction of massive housing schemes in Festac and Ibeju-Lekki areas of Lagos; agriculture development projects in Osun and Ogun states; an international airline and a world-class pharmaceutical industry also in Osun State.”

[Punch]

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Economist Says Monetary Policy Inconsistency Unsettles People, Business

An economist, Austin Nweze, has criticised the recent decision of the Federal Government of Nigeria on the monetary policy of the nation.



This follows the recent decision of the Central Bank of Nigeria (CBN) to discontinue its sales of foreign exchange to the Bureau de Change operators and allowing banks to accept foreign currency cash deposits from their customers.

Mr Nweze said the inconsistency of the monetary policy had unsettled people and businesses.

“Companies are waiting, hoping that the CBN will reverse itself. Some companies I know have left the country because of this kind of policy,” he said.

The economist urged policy makers to make policies that will forecast future complications from the start.

“They should be far thinking to know the implication from the beginning; to know the implication to the economy, to the people before you engage yourself in this kind of policy.”

Mr Nweze, however, believes that the Central Bank Governor, Godwin Emefiele, wants to develop the manufacturing sector, but expresses worries that the capacity to take risk is not there.

“His comments shows that he wants the manufacturing sector to thrive in this country but doesn’t want to take a risk or maybe he doesn’t have the peril to take that kind of risk.”

The economist suggested that the CBN should meet with other stakeholders to deliberate on the type of economy on ground and what they want to achieve.

He also criticised the method being used in the anti-corruption fight, saying the government should focus on other things.

“All we see is expose. The institutions should be allowed to fight this thing and the government should focus on other things,” Nweze said.

He added that ‘all problem is not really corruption, all corruption lies in education’.