The Nation Newspaper

Category: Business

  • Nigeria gets more voice in World Bank

    Nigeria gets more voice in World Bank

    Nigeria’s holding in the World Bank has been raised, paving the way for more voting powers in the affairs of the Brelton woods institution, it was learnt yesterday.

    This is coming under the Bank’s “voice reform programme” following complaints about marginalisation of the countries in sub-Saharan Africa by the World Bank.

    Minister of State Finance, Yerima Ngama disclosed this to State House Correspondents at the end of the first Federal Executive Council meeting in 2013 presided over by President Goodluck Jonathan.

    The Minister said Nigeria’s holding in the World Bank had been increased by 119 shares.

    He said the development, which is seen as recognition of the progress made in the economy, is expected to increase the country’s voice in the affairs of the bank.

    This, the minister also said, has shot the country into the League of Nations whose opinions have become relevant in major decisions of the bank.

    Besides, the minister said that the development is also expected to among other things, raise Nigeria’s foreign Direct Investment (FDI).

    Ngama, who briefed alongside Information Minister, Labaran Maku and Education Minister Ruqqayattu Rufai said: “This is certificate of good health, which will attract investors into this country, if out of 118 countries, Nigeria is among the best 16.”

    Explaining the circumstances that led to the reform in the World Bank, Ngama said there were complains that the World Bank group is dominated by the West, and this led the bank to come up with its voice reform programme by setting up a committee, which selected 180 countries out of which the final 16 including Nigeria finally emerged as a benefiting nation.

    “This selection was based on clear cut criteria; including the strength of economy, rate of growth of the economy; contributions of the country to global economic architecture and based on these criteria, Nigeria was selected amongst the 16 countries that were selected.

    “The rate at which we are implementing the transformation agenda, Nigeria will emerge one of the top 20 in develop economies of the world,” he said.

    The minister also insisted that the economy is growing, arguing:”The way we measure the growth of the economy is basically two. One is through the productivity. What we got in Nigeria is in Naira, so to compare with the size of other economy, we have to use the exchange rate and we have two choices: we can use the market base exchange rate or we can use the PPP exchange rate.”

    The Purchasing Power Parity (PPP) exchange rate, according to Ngama, gives a better comparison across countries and that is what the World Bank is using.

    He also stated that a look at PPP exchange rate shows that Nigeria is far in excess of $450 billion, adding: “If you look at market base exchange rate, we are also far in excess of $260 billion. If you use the PPP by the time we grow the Gross Domestic Product (GDP) and save up to a trillion, we may end up being number 18 or 17 in the world.

    “With what is going on, we strongly believe that in the next two to three years the growth will accelerate”

    While admitting that decay in infrastructure has affected the nation’s growth rates, he however, said the deficit is also being addressed by the Jonathan’s administration.

  • Power generation to hit 10,000mw in Dec., says govt

    Power generation to hit 10,000mw in Dec., says govt

    Nigeria plans to at-tain a power generation capacity of 10,000mega watts (megawatts) before the end of the year, Minister of State for Power, Hajiya Zainab Ibrahim Kuchi, has said.

    She disclosed this yesterday in her presentation to the Presidential Action Committee on Power – a copy of which was made available to journalists in Abuja.

    Besides, the minister said that the government has concluded plans to secure a credit facility from the African Development Bank to support power transmission but failed to disclose the value of the loan.

    She recalled  that at the close of last year, there was an average generation capacity of 6442mw, stressing that there was a peak of 4517.6mw on December 23, 2012 and additional 450mw generation capacity was added in the last quarter of 2012.

    Part of the plans, according to her, is to scale up rural access to electricity.

    The ministry she said will source funds for the power transmission project outside budgetary provisions, adding that the government would embark on diversification of energy mix to include renewables.

    The minster said that her ministry will focus on developing new policy initiatives to address post-privatization challenges.

    She also noted that there will be a stimulation of investment in the sector through bilateral relations.

    On power distribution, the minister said the 321MVA distribution from substation was added in the fourth quarter of 2012, adding that there were additional meters and a vending station at Apo.

    In terms of transmission, Kuchi noted that 239kilometers of 330KV transmission line had been completed and now ready for commissioning.

    She said 21 kilometers 330/132/33KV capacity was commissioned in the year under review.

    In his remarks, the Permanent Secretary of the ministry, Dr. Dere Awosika noted: “We are very good in calling for workshop  but there is lack of implementation of decision at the meetings.”

  • RenCap places ‘buy’ on UBA shares

    RenCap places ‘buy’ on UBA shares

    Renaissance Capital (RenCap) has placed a ‘buy’ rating on United Bank for Africa (UBA) shares after the lender adopted a Holding Company (HoldCo) structure.

    In an emailed report, the investment and research firm also forecast a target price of N7.50 kobo per share for the bank’s share.

    It explained that post the restructuring, existing UBA shareholders will be holders of four entities namely: UBA Plc, comprising the Nigeria bank, all the 18 African banking subsidiaries; UBA Pension Custodians, UBA FX Mart and UBA Capital Europe.

    Other are UBA Capital Plc, comprising UBA Asset Management, UBA Trustees, UBA Metropolitan Insurance, UBA Stockbrokers, UBA Insurance Brokers and UBA Nominees. Also included are African Prudential Registrars Plc and Afriland Properties Plc.

    RenCap explained that for every 33 shares held in UBA Plc, eligible shareholders will receive four shares in UBA Capital Plc and one in Africa Prudential Registrars Plc. These are expected to list on the Nigeria Stock Exchange (NSE) tomorrow. Additionally, shareholders will receive one share in Afriland Properties, which is planned to be listed some time in the future.

    It said the capital implications are largely neutral and that out of the N170 billion of capital in UBA in fiscal year 2011, N3.31 billion will be redistributed to UBA Capital and N2.5 billion to Afriland Properties Plc.

  • Benue protests closure of Dangote Gboko Plant

    The people and the government of Benue State have protested the closure of Gboko plant of Dangote Cement, which was temporary shut down as a result of cement glut occasioned by massive importation of the product into the area.

    Chairman, Gboko Local Government of Benue State, Mr Nahan Zinda, according to a statement, decried the closure of the Dangote Plant, saying his local government has lost about N15million in weeks.

    He said: “Since the company was closed, cement price has gone up.  Our people have been jobless and suffering. It may also lead to anti-social behaviours. Our women who are doing petty businesses outside the gate are also complaining bitterly.”

    He called on the Federal Government to expedite action by doing all it takes for the factory to be reopened.

    Chairman of the Quarry Community, Mr. Donald Tser, also regretted that the closure of the factory has halted all commercial activities in Gboko Local Government.

    He said: “We are afraid that our children may resort to anti-social behaviour and this is dangerous for Nigeria. We are calling on the government to hasten the process of re-opening the plant.”

    Mrs Grace John, who spoke on behalf of women traders in Gboko, said social and commercial activities have virtually come to a halt and life is becoming difficult. She appealed for the quick reopening of the plant in the interest of women traders.

  • FAAN inaugurates task force on abandoned aircraft

    The Management of the Federal Airports Author

    ity of Nigeria (FAAN)has inaugurated a task force on the disposal of abandoned aircraft in all airports across the country.

    This task force according to a statement from FAAN, has become necessary because the aircraft constitute a safety hazard on the airside as some of them have been abandoned for about 10 years.

    At the inaugural meeting, the task force called on owners of such abandoned aircraft to evacuate them immediately because of the danger they posed. The task force according to the statement, noted that some owners have responded to earlier appeals by the Authority and are already making arrangement to evacuate them.

    Several appeals had been made in the past to remove its abandoned aircraft by the Authority, including meetings with the owners and publication of paid notices in various newspapers in the past five years.

  • HP’s Windows 8 PC Portfolio out

    HP’s Windows 8 PC Portfolio out

    HP, world’s leading technology company has announced availability and pricing details for its new lineup of consumer and business PCs designed to work with Windows 8.

    The new HP products, ranging from stylish notebooks and desktops to a tablet, leverage premium materials and a purposeful design philosophy to deliver a distinct HP look and feel.

    Unique form factors—including a hybrid PC with a detachable screen, a business tablet with functionality-boosting HP Smart Jackets and an ultrathin all-in-one (AiO) desktop—enable users to take advantage of Windows 8 along with HP innovations such as HP TouchSmart technology.

    “HP’s portfolio of ultrathin notebooks, sleek all-in-ones and high-performance business PCs is designed to meet the needs of customers anticipating the release of the Windows 8 OS,” said James Mouton, senior vice president and general manager, Personal Computer Global Business Unit, HP.

    “Consumers and organisations now can choose from a broad range of HP PCs featuring multitouch displays, versatile form factors, sleek designs or customisable solutions that address their needs,” Mouton said.

     

  • Fed Govt to pay 23 oil marketers N94b, says Okonjo-Iweala

    Fed Govt to pay 23 oil marketers N94b, says Okonjo-Iweala

    TWENTY-THREE oil marketers are to be paid N94 billion, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said yesterday. The cash is part of the N161 billion approved by the National Assembly.

    The 23 oil marketers will be paid ”in the next few days.”

    Addressing journalists in Abuja yesterday, Mrs. Okonjo-Iweala, said the government was “committed to paying all companies which deserve to get subsidy payments just as we will not pay undeserving firms.”

    For the balance however, the government is “waiting for the others to come and complete their paper work to complete their balance. That is the mandate we have from the President.” Dr Okonjo-Iweala said.

    She said payment was being carried out according to transactions, so some marketers (23) that have cleared their paper work on some of their transactions would be paid from the N94 billion.

    However, Mrs Okonjo-Iweala noted that they may come back again with additional transactions, “but as of now, 23 marketers have done their paper work.They may still have outstanding claims because we do them in batches through the Petroleum Products Pricing and Regulatory Agency (PPPRA) and the Debt Management Office (DMO).

    “I have a list of 27 marketers for the remainder of the money, but some of them have already featured under this 23 and they may have to come back,” she said.

    Mrs. Okonjo-Iweala stated that her ministry has made the N161.6 billion supplementary budget for subsidy payments which has been approved by the National Assembly and made available to the Central Bank of Nigeria since December 31, 2012, adding that the payments “are presently going through the CBN’s processes which include the conversion of the dollar equivalent from the foreign Excess Crude Account to the domestic Excess Crude Account, and that will be concluded soon.

    “We have to authenticate the amount and this process normally takes five days and a week between the CBN and the ministry.The Central Bank is very strict by trying to have all the documentation,” she added.

    “The process is on, the money has been released and is being converted into naira by the CBN and I don’t think there is any issue with this.”

    At present, the money, she explained,“is being credited to the account now by the Accountant- General of the Federation. The conversion is being done and marketers who said they have not been able to access should go now to get their money. It is not something that takes months,” Mrs Okonjo-Iweala said.

     

  • CBN defers rollout of cash-less banking nationwide

    CBN defers rollout of cash-less banking nationwide

    • Lagos scheme under review

    The Central Bank of Nigeria(CBN) has explained why cash-less banking did not take-off in other parts of the country on January 1 as proposed.

    It said the change in plan is to provide opportunity for assessment of the Lagos scheme by stakeholders.

    CBN Spokesman Ugochukwu Okoroafor told The Nation that though there is substantial progress in promoting e-payment initiatives in the country, there is no system that does not have its challenges.

    “Some of those challenges experienced in promoting the initiative in Lagos have to be discussed and addressed before the nationwide rollout,” he said.

    Chairman, House of Representatives’ Committee on Banking and Currency Mr Jones Onyereri, said the rollout should start after 80 per cent success rate is achieved in Lagos.

    Speaking at the African Chartered Institute of Bankers (ACIB) induction in Lagos, he said the cash-less policy would lead to a reduction in bank charges to accelerate financial inclusion.

    Last year, 90 per cent of banking transactions conducted in Lagos State were still cash-based, according to data obtained from the Financial Derivatives Company Limited. For instance, despite the high penetration of mobile phones in the country, the use of mobile banking is yet to gain momentum.

    According to Okoroafor, structures are in place to address complaints that may arise from the use of Automated Teller Machines (ATMs), Point of Sale (PoS) terminals and online transfers.

    These structures, made it possible for them to correct any anomaly, during transactions. He promised that where such hitches become rampant, the CBN would intervene.

    “The CBN is studying feedback on Lagos Pilot before nationwide rollout of cashless banking policy to accommodate stakeholders’ observations. We will go ahead with nationwide rollout after studying their feedbacks. There have been lessons learnt,” he said.

    Analysts insist that the CBN has to address issues relating to e-payment fraud, power failure during the use of ATMs and PoS, delayed credit to PoS merchants accounts and debiting of customers’ accounts without payment.

    On fraud, the CBN in collaboration with Nigeria Electronic Fraud Forum (NeFF) and Nigeria Interbank Settlement System (NIBSS) have set up fraud detection portal to enable banks to share fraud data information. The CBN has also mandated banks to resolve ATM-related complaints within 72 hours or be sanctioned among other initiatives.

    The apex bank said it is on top of the situation of combating electronic fraud.

    CBN Deputy Governor, Operations, Tunde Lemo, explained during an e-payment forum in Lagos, that the CBN “has set up an industry-wide Nigeria e-Fraud Forum, which will serve as an official body to represent the industry on fraud-related issues, while enabling a forum for payment of stakeholders to share data on fraud attempts and tackle these issues, to minimise fraud attempts and limiting losses”.

    Despite challenges facing the initiative, CBN said there has been an increase in the payment channels to meet the targeted growth for the industry.

    It said PoS channels have been increasing in tandem with the aspirations of the financial regulator to promote the cashless banking initiatives.

    The apex bank said the number of ATMs has increased in the industry compared with what it was a few years ago. It said the emphasis is on the payment platforms to foster the growth of cashless banking and further made more people have access banking services.

  • House insists on Oteh’s probe

    House insists on Oteh’s probe

    The House of Representatives has said its probe of the administration of the Director-General (DG) of Securities and Exchange Commission (SEC), Ms Arunma Oteh, should not be confined to the allegation levelled against the chairman of the probe panel during the public hearing.

    Deputy Chairman of the House Committee on Media, Hon. Afam Ogene, said the decision of the House not to appropriate funds to SEC for the 2013 fiscal year was not a vendetta against Ms. Oteh.

    Speaking at the weekend, Ogene said members of the House and the director-general have been embroiled in a long-drawn battle since the probe of the commission by the lower chamber about one year ago, during which the DG accused the probe committee of demanding bribe from SEC.

    The probe ended with a reprimand of Oteh by the Federal Government, but the lower chamber has maintained since then that Oteh must go.

    He said: “The House had already begun investigations into the activities of SEC before the DG’s allegations against then – Chairman, Hernan Hembe, and the probe could just not be halted because of the allegation.

    “Which one came first?” Ogene asked. “This same House was already having a public hearing on SEC when Oteh made her allegations. That an issue arose midway during an investigation shouldn’t abort a process that was already ongoing.

    “During this process, issues had been raised regarding Oteh’s competence, regarding some resources of SEC that were paid into private accounts, issues bordering on corporate governance, whereby staff were recruited from outside the system and issues regarding indecorous working relationship with key commissioners in SEC.”

    He added that the issues were already on top of the committee’s work before Oteh made her allegations.

    “Up till now, they are still mere allegations because the parties involved are still in court,” he said.

    “So, until Oteh proves her allegations, they remain mere allegations. So, the above issues had been established long before Oteh made her allegations,” he added.

  • Experts predict improved consumer price index

    Experts predict improved consumer price index

    The Consumer Price Index(CPI) will improve this year if the government reviews its macroeconomic policies, experts have said.

    According to the experts, the CPI fluctuated last year because of the government‘s misplaced priorities.

    CPI measures average changes in the prices of goods and services consumed by people daily. It is a major determinant of the rate of inflation. Usually, when the CPI is high, it has a corresponding effect on the rate of inflation.

    The experts said the CPI of 11.3 per cent and 11.7 per cent in August and September last year, as provided by the National Bureau of Statistics (NBS), can be improved once the government provides a stable and favourable interest rate regime, and enhance productivity.

    Former Institute of Chartered Accountants of Nigeria (ICAN) President Mr Emmanuel Ijewere said the economy was not productive last year because of huge interest rates occasioned by the fixing of Monetary Policy Rate (MPR) at 12 per cent. This, he said, affected productivity, resulting in constant variations in the prices of goods and services.

    He said: “The huge interest rates have crowded out the private sector operators, resulting in low productivity. Once this happens, it would be difficult to moderate the prices of goods and services in the country. The banks can no longer advance credit to the critical sector of the economy. They are moving and concentrating on fixed-income instruments such as Treasury Bills.“

    Ijewere advised the government to improve agriculture and food price index in particular. Noting that the food price index is a subset of consumer price index, he explained that the two can go together.

    “Agriculture is now being put forward as the major driver of employment in the country. The government must not relax if it wants to achieve food sufficiency, stabilises the prices of foodstuffs, and foster economy growth.

    Former Director of Budget and Research, Central Bank of Nigeria (CBN) Mr Titus Okunronmu, said CPI would improve when the government provides friendly and growth enhanced policies.

    He said the government has focused more in checking inflationary rates to the detriment of productive sectors such as manufacturing and agriculture.

    Mr Okunronmu said there should be a price control mechanisms in Nigeria, arguing that this would check the surge in the price of commodities. He said the government can provide stable inflationary rates, consumer price index, among other economy barometers, once there are no infrastructural challenges.