The Nation Newspaper

Category: Business

  • Public Private Partnership, the future of housing development

    Public Private Partnership, the future of housing development

    The Director, Lagos State Ministry of Housing, Mrs Nike Animashaun, has said the future of housing development is in the partnership of the private sector and the government.

    She said for government to be able to provide affordable housing for the citizens of the country and Lagos State in particular, in order to meet the projection that the state will be among the most populated in the world by 2020, more contributions is needed from the private sector.

    Animashaun said this at the Real Estate Unite Conference, held in Lagos where she spoke on the theme ‘Jump-Starting Nigeria Real Estate for Global investments’, organised and sponsored by Growth and Employment in States Programme (GEMS).

    She said “the Lagos Housing Public Private Partnership framework  is designed to engender significant private sector interest, particularly that of strong and well-capacitated contractors and home developers and will promote joint investments between government and private sector, where government provides land and counterpart funding where necessary and private sector provides capital, construction and project management competence”.

    GEMS2 Intervention Leader, Afolabi Imoukhuede,who moderated the panel on the topic, ‘Affordable Residential Estate Development’, said, “enormous opportunities and economic prosperity of affordable housing development is available for discerning investors and government, seeking to create employment and create wealth”.

    GEMS2 is a DFID-funded technical assistance programme which facilitates Growth and Employment in the Construction and Real Estate sector sponsored

    Other panel discussants included Mr. Olujide Ojo of Mutual Benefits Homes & Properties, who explored a case study of Mutual’s housing development strategies targeted at the lower and middle market primarily “housing for the working class.”

    Ojo said property developers should have a change of mindset for a reduction in developers’ profit in order to achieve long term economic returns over a larger market share. He also canvassed that developers and housing finance practitioners look to pushing “rent-to-own” financing schemes and that home buyers be oriented towards owning flats/apartments over the traditional single family homes

    Project Director, Centre for Microenterprise Development, Mr. Magnus Adiele, shed light on the role of extensive market research and demand survey, importance of data in property planning (particularly at the project design stage) and pricing developments within the affordability limits of the target market.

  • Banking sector credit slides to N13 trillion

    Banking sector credit slides to N13 trillion

    The aggregate banking system credit to the domestic economy stood at N13.09 trillion in July 31, the Central Bank of Nigeria (CBN) Economic Report, obtained by The Nation, has shown.

    The data depicted a decline of 1.6 per cent, on month-on-month basis, in contrast to the increase of 0.5 per cent at the end of the preceding month.

    Also, banking system’s credit to the Federal Government, on month-on-month basis, fell by 26.5 per cent to negative N1.7 trillion, compared with the decline of 13.1 per cent at the end of the preceding month.

    The development was attributed, largely, to the decline in banking system’s holding of Federal Government securities.

    As at December 2011, aggregate banking system’s claims on the Federal Government fell significantly by 251.5 per cent.

    The Federal Government, however, remained a net lender to the banking system at the end of the review month.The report said banking system’s credit to the private sector rose by 1.0 per cent to N14.8 trillion, compared with 1.5 per cent recorded at the end of the preceding month, but in contrast with a decline of 0.2 in the corresponding period of 2011.

    The report said the banking system’s claims on the core private sector rose by one per cent to N14.2 trillion, above the level in the preceding month, compared with the growth of 1.5 per cent at the end of the preceding month.

    The development reflected, a 1.9 per cent rise in DMBs’ claims on the sector. Relative to the level at the end to December 2011, banking system’s credit to the private sector rose by 4.7 per cent.

    At N7.8 trillion, foreign assets of the banking system rose by 3.9 per cent at end to July 2012, in contrast to the decline of 5.8 per cent at the end of the preceding month.

    The development was attributed to the 4.5 and 1.1 per cent increase in the CBN and banks’ holdings, respectively.

    The value of money market assets outstanding at end–July 2012 was N5,950.25 billion, showing an increase of 4.5 per cent, over the level at end-June 2012. The development was attributed to the increase of 9.4 and 2.0 per cent in the value of NTBs and FGN Bonds outstanding, respectively.

    Activities on the Nigerian Stock Exchange (NSE) in July 2012 were mixed.The report said gross federally-collected revenue in July 2012 was estimated at N985.80 billion, showing an increase of 28.6 and 22.1 per cent above the receipts in the preceding month and the 2012 provisional monthly budget estimate, respectively.

    At N632.58 billion, gross oil receipts exceeded both the receipts in the preceding month and the provisional monthly budget estimate.

    This was attributed largely to the rise in receipts from royalties.Also, non-oil receipts, at N353.22 billion (35.8 per cent of the gross federally collected revenue), was 89.2 and 38.7 per cent higher than the receipts in the preceding month and the provisional monthly budget estimates, respectively.

  • Investment in ICT key to development

    Investment in ICT key to development

    The Commissioner for Science and Technology in Lagos State, Mr Adebiyi Mabadeje, has advocated the need to accelerate measures in the country towards providing access to Information and Communication Technology services to millions of Nigerians.

    Speaking at the 2012 edition of the annual Nigerian Telecoms Development Lecture organised by Logica Media Group in Lagos recently, Mabadeje said though telecoms sector in Nigeria has witnessed progress in more than a decade, much still needed to be done to increase ICT penetration.

    According to him, “We are today the fastest growing telecoms market in Africa, but while celebrating the growth and substantial achievements of the telecoms sector in Nigeria, it is important for us to be conscious of the digital divide that still exists in our country.”Mabadeje contended that there were still millions of Nigerians with limited or no access to ICT services.

    ”It is therefore my opinion that stakeholders in the country will fashion out a plan that will assist in bridging the gap between the urban and rural Nigerians,” he said.

    While explaining ICT initiatives being undertaken in Lagos State, the commissioner said the State Governor, Mr. Babatunde Fashola, had been supportive in ensuring that “we leverage on ICT as a tool for economic development and social change in delivering good government.”

    He said: “We have put in place, well-structured ICT services in virtually every sector of the economy including land documentation and processing, Electronic document management, automated Electronic Tax Clearance Certificate (e-tcc) and the success of our autoreg platform cannot be over-emphasised.”

    According to him, transaction businesses with agencies of government in Lagos State were gradually becoming less paper-dependent.

    ”Our accounting and treasury units have been computerised, paying your taxes, levies and dues are now, to a large extent, done electronically.

    Because we believe that our citizens are our clients and the more efficient and transparent our services are, the more we enjoy their support and patronage.

    ”To this end, therefore, our reforms are on-going to ensure that our businesses are done in a manner that honesty and integrity become the watchword,” he said.

    The commissioner has described investment in ICT as key in the country’s planning for future economic and social development.

    Ajiboye added that ICT has far-reaching positive effect on any economy that pays priority to its deployment to drive activities both in the private and public sectors.

  • Budget 2013: House rejects Oct. 4 presentation

    Budget 2013: House rejects Oct. 4 presentation

    President Goodluck Jonathan would not be presenting the 2013 budget on October 4 as earlier scheduled before the joint session of the National Assembly, it emerged yesterday.

    Speaker of the House of Representatives Aminu Tambuwal had onTuesday read a letter from President Jonathan conveying his intention to present the 2013 budget at a joint session on October 4.

    The lawmakers maintained that it was impossible for them to consider the acceptance of the presentation of the 2013 budget while the 2012 budget is having issues as the President was yet to convince Nigerians on the implementation of the current budget.

    The House of Representatives said it would not be able to complete the scrutiny of the 2013-2015 Medium Term Expenditure Framework and Fiscal Strategy  (MTEFF) paper as well as engage relevant government agencies concerned with the document before the said date.

    According to the Chairman, House Committee on Information and Public Affairs, Zakari Mohammed, (PDP, Kwara), the House has  also suspended plenary for next week to conduct oversight  on physical inspection of infrastructural projects nationwide.

    The indication of the imminent postponement  was dropped by the Chairman, House Committee on Finance,  Abudmumin Jibrin (PDP, Kano), who also doubled as the  Chairman of the Joint Committee saddled with the responsibility of scrutinising the document at the plenary yesterday.

    Saying that though the preliminary  process of detail examination of the document has commenced, Abudmumin Jubrin informed the floor that “Knowing the implication and importance of the document to the presentation of the budget by Mr. president, it is practically impossible to engage all the relevant government agencies involved with the document.

    “We have to invite agencies like the Ministry of Finance, Nigerian National Petroleum Corporation (NNPC), Nigerian Customs Service (NCS), Asset Management Corporation of Nigeria (AMCON) and several others”.

    Jibrin stressed that considering the limited time interval before the Presidential presentation, more time would be needed by the Committee in order to be able to do a thorough job on the document.

    The Speaker, Aminu Tambuwal asked the Committee to continue with it’s work on the basis that the passage of the MTEF  is a prerequisite for the presentation of the Budget by the President.

    The House Spokesman, at the weekly media interaction said the importance of the oversight function cannot be overemphasized, while  pointing  out that the stance of the lower chamber was not a muscle flexing against the executive.

    “The question of Mr. President coming to present the budget on 4th is ruled out because by next week  we are not going to be available. Also, the MTEF must definitely be looked into first, by law and convention before the budget for the incoming year is considered.

    “These are issues of law, it is not about the House trying to flex muscles. Maybe later, a letter of convenient  day would be fixed for Mr. President to come and present the budget.

    “We are considering an aspect of the 2012 budget and not yet completed, yet another one is coming. 4th October is just not realistic, we are going on the oversight and be back  on 9th,” he said.

  • Sanusi, ex-minister to lawmakers: don’t tamper with CBN’s autonomy

    Sanusi, ex-minister to lawmakers: don’t tamper with CBN’s autonomy

    Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi and former Information Minister, Frank Nweke (Jr), yesterday urged the National Assembly not to tamper with the apex bank’s autonomy.

    Sanusi, who spoke at the 2012 Annual Public Lecture organised by the law firm of J-K Gadzama & Partners LLP, said if politicians are allowed unfettered control of the CBN, it would not effectively achieve its regulatory mandate.

    “Politicians and even the executive think short term. The CBN thinks long term. If you allow politicians to control the CBN, we’ll not achieve anything. Politicians will never allow us to manage inflation, interest rate simply because they want to win election.”

    Sanusi, who chaired the event, was represented by the CBN Deputy Governor, Corporate Services, Alhaji Suleiman Barau.

    The lecture, which had the theme: “Nigeria in the Year 2012: The Vision of a Cashless Economy,” was delivered by Nweke.

    Sanusi was reacting to a comment by former Chairman, Senate Committee on Banking, Senator Nkechi Nwogwu, who was a guest at the event.

    She said some CBN policies must be subjected to legislative approvals, first, arguing that while CBN should have complete independence in its regulatory functions, some of its policies, such as the proposed introduction of the N5000 banknote, (now suspended), should be subjected to legislative review.

    She said: “I don’t think the Senate has ever said the independence of the CBN should be curtailed. We never said so. The intervention of the CBN in distressed banks and the like is within its purview.

    “But there’s no agency that is an Island. We’re saying that there are some of its projects, which need democratic review. Certain monetary policies must be brought before the legislature for a review. That’s what we’re concerned about. We’re not at loggerheads with CBN at all. All we’re saying is that they should consider the opinions of Nigerians.”

    Senator Nwogwu, also criticised the suspended new banknote policy, saying it contradicts the ‘cash-less’ policy “because in my handbag I can carry N20million.”

    However, Sanusi defended the N5000 banknote, saying it is consistent with the cash-less policy.

    He said the cost of printing a single N100 note is almost the same as printing N5000 note because they are printed on the same paper.

    N5000 note, he said, would therefore reduce the cost of printing, moving and destroying cash.

  • Naira gains as dollar supply, oil advance

    Naira gains as dollar supply, oil advance

    The naira appreciated for a third day as the Central Bank of Nigeria (CBN) increased the amount of dollars sold at its twice-weekly auctions and as oil, the nation’s key export, advanced.

    The naira gained 0.1 per cent to N157.25 a dollar as of 2:10 p.m. in Lagos, according to data compiled by Bloomberg.

    The apex bank sold $450 million at its two auctions this week, the highest in seven, according to data on its website. Oil rebounded from the lowest close in almost two months and extended gains on speculation that China will take measures to stimulate its economy. Nigerian benchmark Bonny Light crude climbed 0.62 per cent to $111.47 a barrel.

    “Naira is appreciating largely due to sufficient dollar supplies from the CBN,” Kunle Ezun and Kenneth Asenime, Lagos-based strategists at Ecobank Transnational Inc., wrote in a note to clients yesterday.

    The apex bank kept its benchmark interest rate unchanged at a record 12 per cent on Sept. 18 to control inflation and bolster the naira, Governor Lamido Sanusi said. The inflation rate slowed to 11.7 per cent in August from 12.8 percent the previous month, the lowest this year, the statistics agency said Sept. 16.

    The yield on Nigeria’s 16 per cent domestic bonds due June 2019 rose two basis points to 13.37 per cent, according to yesterday’s data on the Financial Markets Dealers Association website.

  • NCC arrests four for sim card racketeering

    NCC arrests four for sim card racketeering

    The Nigerian Communication Commission (NCC) yesterday arrested four persons in connection with mass registration of sim cards under one name, which were being sold to the public.

    In its nationwide crack down on illegal registration of sim cards, the Commission, led security operatives to some dealers’ premises in Abuja and sealed off those that failed to produce the suspects and the machines being used for the illegal registrations.

    While two persons were arrested at Glovic Communications in Yashua Plaza, by AP Plaza in Wuse 2, one person was arrested at the Correspondence Nigeria Limited in Prime Plaza at Wuse 2. The last person was arrested at Wuse Shopping Plaza.

    The office of Glovic Communications in Wuse 2 was sealed off yesterday until the Chairman of the company produced the suspects involved and the machines being used for the illegal registration.

    Speaking on the issue, the NCC Head of Media and Public Affairs, Reuben Muoka said: “The arrest is in continuation of the campaign to rid the streets of pre-registered sim card.

    “We’ve been able to arrest quite a number across the country,” he added.

  • ‘Why govt raises stake in oil blocks’

    The Minister of Petroleum Resources and Chairperson of the Board of the Nigerian National Petroleum Corporation (NNPC), Mrs. Diezani Alison-Madueke, said the increase in government’s stake in the Deep Offshore blocks from 61 per cent to 73 per cent, was necessitated by the prevailing realities in the global oil and gas sector.

    She disclosed this on Wednesday in New York at the 3rd Nigeria Investment Summit under the auspices of the African Business Roundtable. The minister explained that the Federal Government is proposing a review of the fiscal terms in the Production Sharing Contracts for deep water fields in the draft Petroleum Industry Bill currently before the National Assembly for consideration.

    In a statement yesterday, NNPC’s Acting Group General Manager, Group Public Affairs Division, Fidel Pepple, quoted the minister as saying the proposed increase of government’s stake “is not only competitive, but considerate, when we look at the scale of other entities around the world like Norway, Indonesia and even Angola with even higher government’s stake.”

    She said based on prevailing realities in the global oil industry, it was only natural to review the terms of the PSC to reflect the current trend.

    She stated that the novel 1993 PSC agreement was based on $20 per barrel price for crude oil real time, adding that records indicated that since the start of production in the PSC fields, crude prices have been on the upward swing, thus the consensus to have a review of the terms.

    She said the new PIB provides for a refreshing fiscal regime which has strong incentives for enhanced exploration of new frontiers, especially in the Inland Sedimentary Basins as well as providing strong support base for the complete activation of the Gas Master Plan.

    Mrs. Alison-Maduake, said under the new arrangement, fiscal regime is anchored on royalty and tax which is now predicated on production as opposed to terrain and investment as was previously done.

    She explained that Royalty by production as outlined in the bill, is designed to capture the output of companies as opposed to their location, and create a fair balance between small and big operators in the same terrain, thus giving operators the opportunity to make fair returns during field decline.

    The high level investment roundtable with the theme: ‘Nigeria-Africa’s Frontier in the Global Economy,’ was declared open by President Goodluck Jonathan, with former British Prime Minister, Tony Blair and erstwhile US Secretary of State, Dr. Condoleezza Rice, as special guests.

    Earlier in his presentation, Mr. Blair commended the gGovernment for the recent initiatives embarked upon to ensure that the Nigerian economy is open to sustainable growth and effective foreign participation.

  • Sacked Air Nigeria staff sue Ibrahim

    Sacked Air Nigeria staff sue Ibrahim

    Workers of the grounded Air Nigeria have dragged its Chairman, Jimoh Ibrahim and the Chief Executive Officer, Kinfe Kanssaye to the National Industrial Court  in Lagos. They are questioning the illegal and wrongful termination of their employments, non-payment of salaries and non remittance of their 7.5 per cent pension scheme contributions.

    In a suit filed by the workers’ solicitors; Muhmad Adesina ESQ, and Ogunsany & Ogunsany against the firm and other two defendants, the workers said they were employed by the Virgin Nigeria Airways Limited via their respective letters of employment, but that on December 31, 2010, Virgin Nigeria Airways Limited was changed to Air Nigeria Development Limited and all business related and liabilities of Virgin Nigeria Airways Limited were transferred to Air Nigeria.

    The workers through their solicitors, also averred that the letter notifying them of the change was communicated by Ibrahim through the Chief Executive Officer of the airline, Kinfe Kanssaye, who also signed the letters.

    The workers contended that on September 5, 2012, Air Nigeria terminated their employment unilaterally and compulsorily retired them, adding that the termination of their appointments was communicated to them through the media. This they said, did not follow due process as contained in the employment hand book. They argued that the workers did not withdraw their respective services to Air Nigeria Development Limited as they did not write any letter to the company.

    They averred that prior to the termination of their appointments, the airline owed workers arrears of salaries; from May to August, 2012 and that some were paid for the month of May only, while others were not.

    The workers in their suit, claimed that prior to the wrongful termination of their appointments, they had contributed 7.5 per cent of their salaries to the Pension Contributory Scheme, while the company contributed 7.5 per cent, but that despite deducting this amount from the salaries of the workers, the company has not been remitting same to the pension scheme as agreed upon by employer and employees.

    The workers also claimed that the money deducted from their salaries under the Pay As You Earn(PAYE) up till the moment of their wrongful dismissal, could not be accounted for, as there were no evidence of payments to the appropriates authority.

  • SON gets Reps’ nod to try fake products’ importers

    SON gets Reps’ nod to try fake products’ importers

    The House of Representatives has said it would pass a bill empowering the Standards Organisation of Nigeria (SON) to prosecute importers and manufacturers of substandard goods.

    The Chairman , House Committee on Industries, Alhaji Mohammed Onawo, who led members of the Committee to SON’s office, yesterday, in Lagos, said the House is ready to give SON all the needed legislative backing in its crusade against production and circulation of substandard products in the country.

    “ There is a bill before the House from SON. It has to do with empowering the agency to prosecute those dealing with fake products. Now that we have seen the good work of SON, we will be delighted to pass it. We have no option now than to pass it,” Onawo said.

    He urged the organisation to embark on awareness campaigns to educate consumers, saying the measure would enable consumers to identify and avoid substandard products.

    “ There is no doubt that there is a big task before you which you have set. We will help you to achieve the goals. We know there are lots of challenge, but with determination and courage, we know that a lot will be achieved.

    “We have visited some of your laboratories and we are not encouraged with what we’ve seen. We have identified this as one of your challenges. We want to assure you that we are going to give you every support you need to deliver on your mandate, “Onawo said.

    The Director-General of SON, Dr.Joseph Odumodu, said the agency is compelled to sanitise the country from the influx of substandard and fake products, adding that SON is ready to take further steps to get rid of fake products in the country.

    He noted that lack of a strong legal structure has hindered the agency from prosecuting the manufacturers, importers or distributors of fake and substandard products in the country.