Category: Business

  • Many faces of Computer Village

    Many faces of Computer Village

    For visitors and residents of Lagos, the Computer Village in Ikeja is different strokes for different folks. Oluoma Omeihe, who has been following the trend of business in the market, reports.

    When Olubunmi Akomolafe lost the power pack of her HP laptop, she was advised by her friends on the campus to visit the Computer Village, Ikeja, for a replacement any time she visited Lagos. An undergraduate of Ekiti State University,Ado Ekiti, the opportunity for Olubunmi to visit Lagos came recently, and she took it.

    Being a first-time visitor to the market, she was assailed by a horde of traders. While some operated in shops, many, especially young men and women, plied their trade at the fringes, preferring to stand by the roadside canvassing clients.

    After a long moment of indecision, she was assured of quality and a good deal for her money. She followed one of the many female ‘canvassers’ to a shop and picked a power pack. “It was tested in my presence and it worked perfectly. I paid N4,000 and left. When I got to my uncle’s house at Agege, I still used it and it worked. I was excited that, at least, I had got a replacement for my faulty power pack,” she told The Nation.

    But her joy was shortlived as the power pack packed up after two weeks. She could not return the item because it was not covered by warranty and she couldn’t risk another trip from Ado Ektiti to Lagos, about four hours drive; it was not worth the deal, especially now that the roads have become death traps. So, she resigned to fate, kept the power pack in the hope that whenever she visited the city, she would go and lodge a complaints to the person who sold it to her. “I did not have an opportunity to come back to Lagos until the end of the semester exams, that was about three months after. So, when I came, my uncle advised me not to bother myself as I was not likely to meet the person in the shop again,” she said.

    If Olubunmi’s power pack lasted for only two weeks, the handset Patrick Chukwudi bought never worked at all. According to him, he had heard so much about a firm selling handsets in the market and made up his mind to go and buy from there. When he alighted from the Danfo bus that brought him to the market, somewhere in front of Awolowo House, Ikeja, he was attracted to the stand of a group of boys who displayed phones in a container under a canopy close to Safegate Microfinance Bank Limited on Awolowo Way, Ikeja.

    “It was as if I was hynotised. When I got there, I saw very attractive handsets but they were not in their packs. They persuaded me to buy one of them, telling me the phones were all in perfect working condition and that all I needed to replace was the battery. So, I paid for one of them and left. I bought a battery and charged it for three hours when I got home. Afetr that, I tried fruitlessly to power it but to no avail,” he recounted, adding that when he got there the following day, the young man that sold the handset to him did not show up. “I cannot imagine myself leaving Itele, Ogun State, to Ikeja to go looking for somebody that, even if I see now, I can scarcely match his face with the transaction,” he said

    Olubunmi and Patrick are but a few of the thousands of unsuspecting people who have fallen to the antics of unscrupulous elements in the market in which handsets and other electronic valuables allegedly collected from their owners at gun point have been found.

    Perhaps, this development and the fact that the market community has become an embarrassment to the environment prompted the Lagos State Government to shut the gate of the market a few years ago. The situation has since improved as officials of KAI, an agency set up by the state government to enforce environmental law, now virtually has a ‘standing army’ in the market, ensuring that the place is kept clean.

    Like in every human community, Computer Village is not all about fraudsters. There are honest young men and women who, through hard work and dedication, are making the market tick.

    When Asuquo Daniel had problems with his laptop recently, he lost hope that it would ever work. A friend had introduced him to one of the engineers in the market. “I was working when the screen of my laptop suddenly went dead. I was confused because I did not immediately know what to do. So, I packed it into my bag and went home. When I discussed it with a friend, he introduced me to a young man called Rotimi in the Computer Village who fixed the problem perfectly,” he said.

    For traders at the Computer Village, doing business in the market has not been a bed of roses as their products face stiff competition from cheap ones imported from China and other Asian countries. For them to keep afloat, they must reduce the prices of their goods, which affects their profit margins. They also have to contend with power problmes as they pay heavily, running their shops on generating sets.

    Nelson Ogeide, sales manager, Seaman Group of Companies, dealers in handsets and other accessories, identified ‘price war’ as a great challenge besetting his business. “We have to cut down our prices. This will eventually eat into the profit margin. The government should do something about the influx of substandard handsets into the country,” he said.

    On customers, Ogeide said the challenge his organisation has to contend with is warranty and repairs. According to him, once a customer is told that there is a year or two years warranty on the device and the device gets spoilt, they will return it, adding that in most cases, it is always a physical damage that the devices suffer. “Most of the faults do with physical damage and we try to explain to them that our warranty does not cover physical damage but factory fault problem. In such cases, the customers try to make us look like we are not living up to our responsibilities and so we have to collect such gadgets and try to repair it and if it cannot be not repaired we give them new ones in return,” he explained to The Nation.

    According to him, there was a time the firm had issues with returned goods and recorded a great loss up to N3.5b million because the goods couldn’t be returned to the importers.

    Another challenge which the firm faces is running the place on power. “Owing to the power problem in the country, we run diesel generators for up to 12 hours that is 8am-8pm daily. Diesel costs a lot of money. Coming to work during public holidays is also a challenge because of transportation problem,” he added.

    On what the state government could do to assist the traders, he said the business has got nothing to do with the government, so government funding is not possible. “The only way government can help us is hastening the repair of the main road leading to Simbiat Abiola Way so that customers will be able to park their cars in front of Seaman instead of going around Computer Village in search of parking space,” he told The Nation.

    For Sylvester Onuoha, salesman at Sultech Computers, his worry is the low patronage he faces due to cut-throat competition from the big-time computer sellers.“My major challenge is having to compete with large-scale computer sellers. Customers would prefer to go to a large scale business man to coming to my little shop to purchase computer because they are scared of buying fake computers,” he said.

    John Oboro, general secretary, Computer and Allied Products Dealer Association (CAPDAN) said the body has mechanisms in place to ensure that people who are short-changed in the course of business transaction get redress. Yes, this Computer Village is the single largest concentration of hardwares in the entire West African sub-region. Anybody that feels aggrieved in the course of doing business can report and CAPDAN will act,” he assured.

    Meanwhile, the Commissioner for Science & Technology, Mr Adebiyi Fatai Mabadeje, has assured that Computer Village will move from its present location to another befitting site. The commissioner who addressed ICT editors, said the government has been engaging stakeholders about its intention to relocate them. “Though we are engaging stakeholders, there is a legal issue to the relocation,” he said, adding that the land that was initially scheduled to accommodate the traders somewhere in Abule Egba, a suburb of the state, has been encroached upon. He promised that the government would handover a befitting ICT park to the traders. “We ate not giving up on the matter. We will move them, we have plans for that area (Computer Village),” he said.

  • Ekiti, Delta, others make case for Benin  Distribution Company

    Ekiti, Delta, others make case for Benin Distribution Company

    The battle for acquisition of the Power Holding Company of Nigeria (PHCN) assets slated for privatisation before end of the year is getting keener as states governments including Ekiti, Delta, Ondo and Edo States justified the need to own assets located in their areas.

    Representatives of the four states had urged the Federal Government through the Bureau of Public Enterprises (BPE) and National Council on Privatisation (NCP) to award the Benin Electricity Distribution Company (BEDC) to Southern Electricity Distribution Company – a consortium in which the four states have equity shares – as the preferred bidder.

    At a stakeholders’ sensitisation forum organised by the states, the Chief Press Secretary to the Ekiti State Governor, Mr. Yinka Oyebode, stressed reasons the Federal Government should give the asset to the company owned by the four states.

    He said the states made efforts to secure companies with world class technical and operational expertise that emerged the best technically qualified consortium.

    Besides, he noted that the Benin Electricity Distribution Company is located in the Niger Delta region, which has security issue and very difficult terrain. To get the best out of the privatisation, involvement of the states would help tackle such challenges, he added.

    He said: “The BEDC is located in the troubled Niger Delta region, which is one of the most challenging environments in the world, with miles and miles of river, tributaries, quick sands and swamps; angry and restive youths and communities that require a strong local knowledge and government participation to have successful. The BEDC is very large, 57,000sq km with very large rural to urban ratio of rural 80 per cent and 20 per cent.

    “We also came out as the most technically qualified consortium of all the bids for Benin. We are the only bidder in Benin with a technical partner who has experience of the size of the Benin DisCo, current operation of 50,000sq km, containing over 4800 villages and 450 towns.

    “Our technical partner Uttar Gujarat Vij Company Limited (UGVCL), was voted 2011 Gold medallist of utilities operations excellence in India and also named best Rural electricity distribution company for several years. Currently the company has the lowest Aggregated Technical and Commercial and Collection Loss (ATC & C Loss) record in India, 6.6 per cent in 2010 and 10.12 per cent in 2011.”

    He said that comparatively other firms that submitted bids for BEDC have no rural distribution experience and only operate in urban areas, which are less than one per cent of the size of Benin DisCo, 527sq km and 495sq km respectively.

    He said that UGVCL, an Indian state owned firm has a customer base of 2,780,000; BEDC has 676,688, while the technical partners of other competitors for the asset, though from India, are private owned companies and have very low customer base.

    Other investors that submitted bids for the Benin asset include Vigeo Power Consortium, Cable and Rods Company Nigeria Limited; Copper Belt Consortium; Rockson Engineering Company Limited; Rensmart Power Limited and Duncan Freeman Company/Draytom Energy Limited.

    Besides, SEDC, Oyebode added, has clear transformational and social responsibility programme that have outlined definite performance improvement strategies to be implemented in 18 months after acquisition and beyond. The company he said also seeks to create an environmentally friendly company that prioritises employees’ health and safety.

    Vigeo Power, which was the management operator for the National Pre-Payment Metering Programme (NPPMP) in the Benin Electricity Distribution Company (BEDC) covering Edo, Delta, Ondo and Ekiti States, also showcased competence. Its promoters including Vigeo Holdings Limited, Global Utilities Management Company Limited, African Finance Corporation; and its technical partners; TATA Power Delhi Distribution Limited, Calcutta Electric Supply Corporation Limited (‘CESC’) and Global Utilities Management Company Limited (GUMCO), have been providing technical Services to Benin and Ikeja Electricity Distribution Company. They also know the terrains very well.

    Vigeo Holdings Limited in the past 25 years have been operating in the oil and gas, power, shipping, steel, commercial and financial services and has track record, extensive client network and stable State-of-the-art infrastructure.

    Its technical partner, North Delhi Power Limited (NDPL), a joint venture of the Tata Power Company Limited, has market capitalisation of approximately US$ 100 billion. Tata Power holds the majority stake (51 per cent) and control, with the balance 49 per cent equity stake being held by the Government of Delhi through its Holding Company, Delhi Power Company Limited (DPCL). The Company has a registered consumer base of 1.1 million across an area of 510 sq.km with a peak load of around 1250 MW. NDPL has reduced the Aggregate Technical and Commercial (AT&C) losses in its licensed area from 53 per cent in July 2002 to 14.47 per cent at the end of March 2010.

    The same applies to Calcutta Electric Supply Corporation (India) Limited another of its technical partner. The Company holds a license to supply electricity in the cities of Kolkata and Howrah and in the adjoining areas. The Company is currently the only distributor of electricity within an area of 567 sq km. In the year ended March 31, 2010, it sold electricity to approximately 2.38 million consumers including domestic, industrial and commercial users.

     

  • Naira trades flat against dollar

    The naira traded flat against the U.S. dollar on the interbank yesterday as expectations of dollar inflows from energy companies and offshore investors buying local debt provided forex liquidity, dealers said.

    The naira closed at N157.10 to the dollar, the same level it closed on Tuesday.

    Dealers according to Reuters, said the naira initially weakened to N157.30 intraday but firmed after dollar sales by the local unit of Addax petroleum and some lenders selling hard currency to keep within the stipulated Central Bank of Nigeria (CBN) open limit position for banks.

    “We saw growing demand in the market initially because of cheaper rate at the interbank, which saw the naira testing N157.25/157.30 level, but later closed firmer as some banks sold down their positions,” one dealer said.

    Traders said the naira is seen trading within the present band for the rest of the week because of anticipated dollar inflows from offshore investors buying local debt and from state-owned energy company Nigeria National Petroleum Corporation (NNPC).

    The apex bank sold $50 million at N155.74 to the dollar at its twice weekly auction yestersday, compared with $43.5 million sold at 155.76 to the dollar on Monday.

    Traders said more importers now preferred to buy dollars at the interbank market because it was cheaper than the effective rate at the CBN window because the apex bank charges one per cent commission on every dollar sold at its auction.

  • HP: Our products are of global standard

    Hewlett-Pachard (HP) has said its products are manufactured for consumers after carrying out a thorough research and development (R&D).

    Rita Amuchienwa, channel development manager, Nigeria and English West Africa, HP Nigeria, who spoke with The Nation at the launch of the firm’s range of printers in Lagos, said the firm did not engage in the production of goods targeted at a specific market by compromising on quality.

    “It is true that there are products for particular markets, the printers we are launching today are universal products. That is, they are the same everywhere in terms of quality.

    “As an industry leader, all HP products are of the highest quality and we keep to our high standard of reliability and durability. HP’s series of Ink Advantage products are available not just in Nigeria but in more than 80 countries and regions around the world. The markets that offer the Ink Advantage products have demonstrated a demand for a new way of everyday, quality reliable printing at a much lower price,” she said.

    According to her, the printers all have the advantage of the new peinters is that they can do better than what the old ones used to do. “On the colour printer, you can get about 300 pages while you can get about 200 pages on the black spend the same amount of money in buying the old ink,” she said, adding that printers can be deployed to personal use in the office and can also meet the demand of small and medium scale enterprises. She said the printers too were capable of printing pictures with high resolution that last a lifetime.

    The printers are web-enabled that can just be connected to the Internet through an ethernet cable or over Wi-Fi –working without requiring a computer and installation of any device drivers.

    Every printer is assigned a unique email address through which Office documents, pictures or PDFs could be sent and it will get printed. Since the email message is the new Ctrl+P, you can use the printer to print stuff from any device that is capable of sending email be it a mobile phone, a gaming console, an old PDA, Internet-enabled TV or an iPad.

    Apps that can pull web pages and other content directly from the Internet could also be downloaded or installed on the printers.

  • Bridges and road  crashes

    Bridges and road crashes

    Dynamism or situational management is a very vital key in every sphere of life. As it was in the beginning, so it is now and so shall it be forever, is a divine order because every work of God is perfectly done, needing no amendment in any form.

    However, in the case of the works of human beings, there is a need for regular evaluation to know the areas that need to be adjusted to prevent avoidable consequences.

    I took a fact-finding trip on the Shagamu – Benin road recently to assess the road safety situation. My findings were disheartening.

    I saw 16 road accident cases on this same road alone. Eight of the accidents resulted from over-speeding on slippery road because of the rainfall of that day. Three cases were caused by wrong overtaking because of road diversions.

    Four of the cases happened the previous night as a result of the factors associated with night driving.

    The last and most pathetic case which is the reason for this article was caused by construction lapses. An articulated vehicle had a head – on collision with a passenger bus on a bridge. The bus somersaulted and hung in between the bridge and the river thereby emptying virtually all the passengers and luggages into the river. I could not ascertain if any of the passengers that fell into the river survived.

    Taking a look at the bridge, the side rails are no more there not because they were removed by vandals but because of incessant accidents on the bridge which has destroyed the rails.

    The main cause of the accident was the unevenness of the road at the beginning and the end of the bridge which always throw up vehicles that pass the road with speed.

    This usually result to a loss of control of vehicles. The side rails are tiny pipes, not concrete. These two vehicles in this case drove in the opposite direction on the same lane because of diversion. The uneven part of the bridge threw up the bus thereby making the driver to lose control of the vehicle and hit the on – coming articulated vehicle which pushed the bus to the weak side rails which was not strong enough to prevent the bus from falling into the river.

    There are many bridges on the shagamu – Benin road without rails at all. The case of the four Igbinedion university lecturers whose vehicle fell into river is still very fresh.

    Reports in the Punch Newspaper September 11, 2012 revealed that on the next day after my research trip on shagamu – Benin expressway (Sunday), 11 people died in two auto crashes.

    The main reason for writing this report is to recommend that the construction companies should know that the volume of traffic on roads today is by far different from what it used to be in the 70s and in the 80’s when these bridges were constructed. They should also know that some vandals have discovered alternative use of the aluminum rails which has rendered its use in road construction unnecessary in Nigeria.

    Rather, concrete walls should be used to replace the aluminum rails on bridges. They are stronger and will not be tampered with by the vandals.

    Government ministries and agencies responsible for road construction and monitoring should also take into cognizance the relevance of durable road and furnitures. The existing bridges should be properly fortified against road crashes. More attention should be paid to prevention rather than waiting for the harm to be done before embarking on fire brigade system.

    There should also be adequate and appropriate traffic signs and road markings to warn the drivers of the impending dangers on the roads.

    It is also expedient that drivers must always adjust their speed according to the conditions of the road. Drivers must slow down when approaching a bridge.

    All stakeholders must take appropriate and selfless actions to drastically stem the rising rate of road crashes.

    Prevention is better and cheaper than cure.

     

  • FDIs drop by 53 %, says CBN

    FOREIGN Direct Investments (FDIs) in the country have dropped by more than 53 per cent, a Central Bank of Nigeria (CBN) report has said.

    In a document entitled: Developments in the external sector, the CBN said FDI inflows went down from $1.72 billion in the first quarter to $0.80 billion in the second quarter of the year.

    The aggregate foreign capital inflows also dropped by 37.79 per cent and 13.78 per cent to $3.44 billion, compared with the preceding quarter and the corresponding quarter of last year.

    Of the total capital inflows, FDI accounted for 23.22 per cent, portfolio investment, 76.78 per cent. CBN traced the decline in FDI inflows to insecurity and slow pace of global economic recovery. However, the continued dominance of portfolio investment in the aggregate capital flows reflected the attractiveness of the domestic financial assets.

    Also, portfolio investment inflows dropped from $3.82 billion recorded in the preceding quarter to $2.64 billion.

    Available data indicated that foreign exchange inflows dropped by 2.44 per cent from $28.19 billion in the first quarter to $27.50 billion in second quartrer. However, total outflows increased marginally by 0.32 per cent from $10. 09 billion in quarter one to $10.11 billion. Consequently, a net inflow of $17.38 billion was recorded in quarter two as against $18.10 billion in quarter one.

    Further analysis revealed that the inflow through the CBN declined by 17.07 per cent from $12.11 billion in the preceding quarter to $10.05 billion in the review period. Similarly, outflow through the bank, declined marginally, by 1.70 per cent, from $9.76 billion in quarter one to $9.59 billion in quarter two.

    Total foreign exchange transactions through the apex bank resulted in a substantially lower net inflow of $0.46 billion in the review period. This was reflected in the marginal accretion to the stock of external reserves registered in the review period.

    However, Nigeria’s trade balance declined to $6.85 billion in quarter two from $10.34 billion recorded in quarter one following the contraction in merchandise exports and expansion in imports.

    Aggregate exports declined by 9.80 per cent from $24.97 billion quarter one to $22.53 billion, while aggregate imports on the other hand, increased by 7.57 per cent to $14.49 billion.

    Meanwhile, the Canadian High Commissioner to Nigeria, Chris Cooter has said his country was working on strategies aimed at increasing its FDI in Nigeria.

    At a meeting with the Minister of Trade and Investment, Dr. Olusegun Aganga, in Abuja, Cooter said his country was planning to increase its investment within the next few years and had confidence in the economy.

    The envoy said as part of efforts to strengthen trade and investment relationship between the two countries, more Canadian firms had indicated their willingness to invest in infrastructure in the country.

    He explained that the move was a follow-up to the Nigeria-Canada Bi-National Commission meeting in Abuja with Nigeria’s Ministers of Foreign Affairs and Trade and Investment and their Canadian Foreign Affairs counterpart.

    “Two weeks ago, the Nigeria–Canada Bi-National Commission met in Abuja and the centre-piece of that Bi-National Commission was how to build and strengthen economic relationships between Nigeria and Canada.

    “Therefore, we are looking at areas where Canadian companies can invest in Nigeria and how they can form partnerships in Nigeria in line with the Nigeria-Canada Bi-National Commission,” Cooter said.

    Aganga said the Federal Government would partner with genuine investors who were willing to invest in critical sectors of the economy.

    The sectors, he said, include infrastructure, mining, petro-chemical and agri-business.

    “We have a big infrastructure deficit in Nigeria and that is why the Federal Government is concerned and determined to bridge the gap by developing the critical infrastructure required to drive our industrial development.

    “Especially in those areas where we have comparative and competitive advantage such as mining, petrochemical, agribusiness and even the Small and Medium Enterprises sector.

    “We are ready to work with foreign investors who are interested in investing in infrastructure projects. For those who are interested in public-private partnership in infrastructure development.

    “We will link them up with key government agencies, such as the Infrastructure Concession and Regulation Commission and other ministries or agencies for the necessary action,” Aganga said.

  • CIBN partners regulators, banks on professionalism

    CIBN partners regulators, banks on professionalism

    The Chartered Institute of Bankers of Nigeria (CIBN), is partnering with key stakeholders and institutions in the country to ensure that the Nigerian banking sector attains the highest level of professionalism.

    A statement from the Institute said it would continue to partner with the Central Bank of Nigeria (CBN), the Economic and Financial Crime Commission (EFCC) to ensure that bankers carry out their work diligently.

    The institute also said that it was partnering with Unity Bank Plc and other government and private bodies within and outside the country with a view to taking the Institute and the banking profession to greater heights.

    The President/Chairman of Council of the Institute, Mr. Segun Aina, stressed the need to partner with relevant stakeholders on capacity building and training of staff in the banking industry as well as other sectors of the economy in order to enable the country realise her millennium goals aspiration. Mr. Aina stated this during the Institute’s dialogue with key stakeholders held in Abuja.

    He encouraged EFCC, CBN and Unity Bank to engage the services of the CIBN Practice Licence holders and other well experienced professional bankers for their consultancy services, debt recovery, forensic audit, training and other services.

    He urged EFCC to support the establishment of Commercial Courts to fast-track cases involving banks and their customers as well as enforce the Dud Cheque offences Act to checkmate incidences of dud cheque crimes in banks.

     

     

     

    “EFCC should collaborate with the Institute on the enforcement of the Dud cheque Act and the Commission should ensure that banks get timely feedback on their returns to the regulatory agencies,” it added.

    While noting the Institute’s proposals, The Chairman of EFCC Mr. Ibrahim Lamorde, observed that the banking profession has improved tremendously. “The banks have done a lot in the area of know your customer (KYC) and there is need for them to also improve in other areas in other to sustain confidence in the industry”, he said.

    CBN Governor, Sanusi Lamido Sanusi, said both parties should work closely by harmonising ideas and efforts in order to ensure that the industry is not divided on approach on issues affecting it and the economy.

    “There is the need to bring in people with sound knowledge on critical financial market issues”, Sanusi said.

    On the other hand, the Managing Director/Chief Executive of Unity Bank Plc, Mr. Ado Wanka, noted that the Institute’s initiatives, especially capacity building, staff training and competency framework would go a long way in closing the gaps in the banking industry. “It will make the industry more responsive and competent for the good of the economy, said Wanka.

  • FBN Capital backs CBN’s credit ban on debtors

    FBN Capital backs CBN’s credit ban on debtors

    The decision taken by Central Bank of Nigeria (CBN) to restrain debtors owing Asset Management Corporation of Nigeria (AMCON) from further access to credit is plausible, FBN Capital, an investment and research firm has said.

    The CBN had in a circular issued last on September 17, barred banks from extending credit to more than 100 companies, which owed the AMCON. This, FBN Capital said, was relevant because the full list, published in the local media, includes some members of successful consortia bidding for power plants.

    The investment firm said that AMCON, which acquired the debts under its bond exchanges, has suggested that the power sector bids will not be derailed as a result.

    It said that the National Council on Privatisation (NCP) has already indicated that the preferred bidders for five power generation companies (GENCOs) for sale offered a total of N110 billion.

    According to the report, a cursory look at the lists of successful bidding consortia reveals household names in the Nigerian banking, oil and gas, and conglomerate sectors as well as one state government and a state owned Chinese electricity utility.

    However, it observed that the preferred bids are still subject to due diligence by five public bodies and a final go-ahead by the NCP. They then have 15 business days after signing the appropriate concession agreement to pay 25 per cent of the total consideration.

    It recalled the unsuccessful privatisation of NITEL where one approved bidder paid the deposit but failed to produce the balance while another failed to make any payments and so forfeited its bid. However, the firm insisted that the strength and reputation of the consortia bidding for the GENCOs suggest this is an unlikely outcome.

    “There have already been delays in the sale of the GENCOs and more may follow. That said, we would stress that the process has attracted bids from consortia with technical expertise and financial clout. The exercise was never fiscal in nature but was designed to deliver power to the population,” it said.

    On the Excess Crude Account (ECA), it said the accounting treatment may still be affected by the dispute between the state governors and the Federal Government over ECA and the Sovereign Wealth Fund (SWF).

    It said the governors are now arguing that signature bonuses and dividends from Nigeria Liquefied Natural Gas (NLNG) should be paid into the federation account, adding that the governors may also broaden their demands as negotiations unfold.

    Besides, the research firm noted that analysis of the draft 2013 budget has shown that only N10 billion earnings are targeted from asset sales.

    The firm said that although the Bureau of Public Enterprises (BPE) suggested a figure of N200 billion in June, the N10 billion appears more plausible, given that bids for the electricity distribution companies (DISCOs) will not be opened until 16 October.

  • NASU welcomes new retirement age

    Non-Academic Staff Union of Educational and Associated Institutions (NASU) has praised President Goodluck Jonathan for signing into law the Act that raised the retirement age of non-academic staff of universities, polytechnics and colleges of education at 65 years.

    The union’s National President, Comrade Ladi Iliya, who spoke at the union’s National Executive Council (NEC) meeting in Asaba, Delta State, called on the government to make the same applicable to staff of research institutes and colleges of agriculture; in line with the agreement it reached with the Joint Research and Allied Institutions Sector Unions in 2009/2010.

    He urged the government to set in motion the necessary machinery to commence negotiation of all the 2009/2010 Collective Agreement signed with the universities, polytechnics, colleges of education and teaching hospitals unions, as enshrined in the agreements.

    NASU said the government must bear in mind that it is these collective agreements that have brought peace to the educational sector. He, however, observed that once in a while, the peace is broken as a result of government’s non implementation of the agreements.

    Agreeing with government on suspension of the N5000 note, Mrs Iliya stated that the policy would only aggravate the situation of the impoverished masses, adding that what it would cost to print the notes is enough to address sensitive sectors of the economy.

    “The policy will only achieve one thing. It would make stealing easier. It is not my intention to talk about everything that touches us as workers in order not to heat up the polity, Mrs Iliya, said.

     

  • Nigeria may close oil fields to curb gas flaring

    Nigeria may shut down oil fields as it tries to clamp down on gas flaring. This could be done even if it means a loss of revenue, the petroleum industry’s chief regulator said yesterday.

    Africa’s top oil producer and holder of the world’s seventh largest natural gas reserves, is considered to be among the top two gas flarers in the world, burning off unwanted gas, after Russia.

    “One of the things we are doing is to do some analysis for government, to such an extent that it will even mean a proposal to shut down fields to avert huge gas flaring,” Osten Olorunsola, Director, Department of Petroleum Resources, told Reuters, adding, “we will probably make that position known to government very soon.”

    Despite a noticeable dip in flaring of associated petroleum gas, produced as a by-product of crude extraction, Olorunsula said the government was unhappy with the pace of decline.

    He said Nigeria currently routinely flared between 1.3 and 1.4 billion cubic feet (bcf) of gas a day, down from roughly 2.5 bcf about one and a half years ago.

    Russia flares around 20 billion cubic metres of associated gas each year, or approximately one-third of the total amount extracted at the country’s oilfields.