The Nation Newspaper

Tag: Access

  • CBAN improves access to credit

    The Central Bank of Nigeria (CBN) and International Finance Corporation (IFC) have praised the Credit Bureau Association of Nigeria (CBAN) for their contribution towards improving access to finance in the country.

    This was disclosed at the third National Credit Reporting Conference organised by CBAN on Wednesday in Lagos.

    Speaking at the event, CBN Governor, Godwin Emefiele, who was represented by CBN Branch Controller, Lagos, James Omebere Tyari, said the success of credit reporting underpins the stability and economic development of Nigeria has the dangers of Non-Performing Loans (NPL) are a major threat to the stability of our financial system.

    “The quantum leap in data captured by private credit bureau operators has contributed in no small way to the successes recorded in improving the financial environment and access to credit, which has improved the standard of living of Nigerians.”

    IFC Lead Financial Sector Specialist, Mrs. Luz Maria Salamina, who was represented at the event by Ubong Awah stated that a well-developed credit infrastructure is critical to ending poverty and promoting shared prosperity.

    CBAN Chairman and MD/CEO of Credit Registry Services, Mrs. Jameelah Sharrieff-Ayedun expressed optimism that the contribution of the credit bureau segment of the financial services sector will have immense impact on the growth of the economy. She said: “I strongly believe we will consolidate on past successes, enhance the promotion of regulations and policies that will improve access to credit, deepen our strategic business ties and grow the credit bureau segment, financial services sector and Nigeria will get better for it.

  • Ogun Free Health Access Card

    SIR: It looked like the ATM card at a distance. I drew closer to some of the pregnant women and officials of the Ogun State Ministry of Health in order to assess it. Indeed, it was like the ATM or National Identity Card. The biometrics of the beneficiaries were captured in the cards. The poor pregnant women at the event caressed them and offered gratitude to the Governor of Ogun State, Senator Ibikunle Amosun, for a new lease of life.

    From that day, Monday, July 11, when the Araya Scale-up (Community Based Health Insurance Scheme) was launched at the June 12 Cultural Centre, Abeokuta, the card qualifies them to visit any of the designated Health Care Providers in their respective local councils and access free health care without paying a dime.

    The free health treatment covers all manner of local endemic diseases that contend with the health of pregnant women, mothers and their children. Ante natal and post-natal services are assured. They will equally not have to worry about payment for diagnostic tests as this is also covered by the scheme.

    This is the first of such scheme in the history of Ogun State. With the Ogun Araya Access Card, according to the Commissioner for Health, Dr Tunde Ipaye, the pregnant women who belong to the lower 25 per cent of the population, living on less than two dollars a day and their children under the age of five, have access to free health services without any form of payment.

    This is not a scheme in the pipeline. Many pregnant women in Abeokuta North and Abeokuta South Local Government Areas are already enjoying the free health facilities, including free drugs.

    This social insurance scheme, once again, highlights the welfarist policy of the Amosun-led administration in Ogun State. As the governor often says, we are here because of these people.

    From July till the end of the year, over 20,000 pregnant women and their Under-5 children will go to any four designated Health Care Providers (private and public) in their respective local councils with their Araya Access Cards and get free health services anytime, any day, 24/7!

    And to underscore his commitment to the free health scheme, the governor has already released in advance funds for this scheme till the end of 2016.

    The leadership of the National Health Insurance Scheme and Minister of Health, Prof Isaac Adewole, were so impressed by this innovation and practical commitment demonstrated by the state government that they pledged to collaborate with the current administration. And if they make good their promise, as we expect them to do, the 20,000 number should double by the end of 2016.

    It should be mentioned that this Community Based Health Insurance Scheme (for pregnant women and Under-5 Children) is a subset of the Ogun State Health Insurance Scheme, which will be for the entire residents of the state. Ordinarily, in any insurance scheme, participants ought to pay a premium. But for the peasant pregnant women and their U-5 children, the Amosun administration has offset the premium. Once the Ogun State Health Insurance Scheme operates full steam, the entire vulnerable community in the state is guaranteed of free health care services.

    We congratulate the governor of Ogun State for adding another feather to his cap. As it is said, a healthy nation is a wealthy nation.

     

    • Soyombo Opeyemi,

    Abeokuta, Ogun State.

  • Govt needs review of approach to energy access, says PwC

    Govt needs review of approach to energy access, says PwC

    The time is right for policymakers to reappraise their approach to accessing energy, a report from PricewaterhouseCooper (PwC) has advised.

    The report said going by the trends, two-thirds of the world’s population will be without electricity by 2030, which is the target year to achieve the newly agreed post-2015 UN Sustainable Development Goal of universal access to energy.

    The PwC report titled: “Electricity beyond the grid: accelerating access to sustainable power for all”, said a new approach that better recognises the part that off-grid technology can play is needed.

    Partner and leader, Power & Utilities unit of PwC Nigeria, Pedro Omontuemhen, said: “For the millions of people, who do not currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities. There are currently 634 million people without electricity in Africa and in Nigeria. We estimate that only one in five persons has access to power from the electricity grid.  This leaves four in five people living in urban and rural communities, having to fend for themselves with makeshift and localised power solutions. Faster progress is needed, and we believe it can be achieved if national energy policies adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by stand alone renewable technology and mini-grids.”

    Current electrification strategies tend to focus on national grid extension plan, but Olumide Adeosun, Associate Director in the firm’s advisory practice, said: “It is critical that Nigerians take steps to understand and embrace the new starting points for energy provided by stand-alone renewable technology and mini-grids as discussed in this report. We believe these solutions provide a viable, bottom-up solution to the patchy availability of electricity in Nigeria.

    Some of the enablers, such as mature mobile payment platforms and data analytics capabilities are already in place.  Others will require investors and communities engaging policy makers to formulate an integrated energy access strategy, work together in their communities to accelerate momentum in the electrification of Nigeria’s urban and semi-rural locations.”

    The report foresees a major transformation of the electricity sector in the period ahead and sets out five recommendations for accelerating the increase of electrification. One of them is to develop an integrated energy access plan and map – so that everyone can plan with more certainty for either off-grid or grid extension solutions.

    Another is to create an enabling environment for off-grid development – including clearer criteria for mini-grid development, support for skills and training and more supportive regulation to allow private players to unlock the off-grid market potential.

    There is also the need, according to the report, to recognise the value of and promote the growth of mobile infrastructure, microloans and payment solutions in supporting energy access – mobile infrastructure is proving crucial in the take-up of stand-alone home systems, giving providers a low-cost channel for customer relations and an ability to automatically manage non-payment.

    Establishing an off-grid innovation and development fund – a highly visible development and innovation fund, the report said, can play an important part in spurring off-grid growth in each country.

    Also, having a high-level energy access champion that can drive results – to cut through bottlenecks and monitor results.

  • Online access to Lagos laws

    The Lagos State government yesterday  launched an online platform where lawyers, investors and the public can access its laws.

    The Attorney General and Commissioner for Justice, Adeniji Kazeem, in a statement yesterday, said the digital platform which can be accessed via www.laws.lagosstate.gov.ng, is the first of its kind and “another testimony to the tradition of excellence which Lagos is known for”.

    He said the online platform was in fulfillment of the government’s obligation to create easy access to the state’s laws, thereby promoting accountability, responsibility and enabling investors to make informed decisions about their investments.

    Kazeem said: “This project is geared towards the commitment of the administration of Governor Akinwunmi Ambode to drive governance and administration of justice through innovation and information technology.”

    The commissioner added that the online platform would enable people to search, view and download the laws anywhere in the world.

    Anther feature, according to Kazeem, is that users will not need to download all the 233 laws, but would be able to purchase and download only the laws relevant to them.

    Besides, Kazeem said payment cards, including MasterCard, Visa, Verve and Interswitch, have all been integrated to the online platform.

    Ambode at the launch of the state’s 2015 Revised Laws urged the Ministry of Justice and Law Reforms Commission to work towards making the laws  available online for easy access.

  • ‘Access to finance major threat to SME’s’

    A major threat to the growth and development of Small and Medium Enterprises (SMEs) is that of funding, the Director General, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Emmanuel Cobham, has said.

    He commended government for setting up a number of institutions  to strengthen SMEs, noting that what is required is to strengthen such institutions put in place by the government.

    “We need to implement the various policies of government and  ensure that government intervention funds actually get to the SMEs, knowing that as at date the N220 billion Federal Government  Intervention Fund for SMEs as administered by the apex  bank through the commercial banks and State Governments has not been fully utilized,” Cobham said.

    The NACCIMA DG called for an enabling environment where proper financing of SMEs’operations is taken seriously,  and where manufacturing thrives and production capacities of companies radically improved.

    “Currently we have more than enough policies and initiatives by the government for the development of the manufacturing and SMEs sector. All we need now is the harnessing and positive redirection to make the process work – we need the political will to ensure that all the initiatives work,” he said.

    On measures put in place by government to develop the non-oil sector and spur substantial development of the solid mineral sector, Cobham maintained that over dependence on one revenue source is detrimental to the economy hence the need to develop other sources of revenue.

    As part of strategy to make a success of the non-oil sector of the economy, the NACCIMA chief urged the Federal Ministry of Agriculture to evolve a systemic policy aimed at deliberately reducing the number of peasant farmers through aggressive empowerment.

    “Government should increase the budget for agriculture to at least 10 percent of the national budget; evolve a policy frame work that would encourage commercial farming in order to have an easy transition from peasant farming to commercial farming,” he advised.

    He also said government should encourage farmers by buying their farm produce to reduce the attendant waste associated with that level of production. He said under  this proposed arrangement, buyers would be compelled to buy directly from the government or its agency.

    Cobham also encouraged the adoption of the One-State-One mineral policy earlier adopted by the Ministry of Solid Minerals. He said this will increase the generation capacity to cushion the nation’s foreign exchange needs and address salient export trade mechanisms.

    He said government can also help the sector by giving special directives to banks to finance this sector; supply equipments, and guarantee the income of the farmers by buying directly from them.

    On the issue of  high interest rate for manufacturers, he said: “There is no denying the fact that currently many businesses are groaning under the high cost of doing business in the country and this coupled with the issue of high interest rate gives a very wrong signal to the local business man. I believe that tough times call for extra precautionary measures.

    “Given that most businesses are financed by bank loan, equity and the active involvement of most financial institutions at an agreeable interest rate which presently hovers between 18-30 per cent, what we need to do therefore, is join hands with the regulatory agencies to strengthen the Naira as against other international currencies, increase our export for better foreign exchange earnings, and reduce our import of commodities that have local substitutes. “

  • Group seeks new approach to boost energy access

    Nigeria needs to explore a new market arrangement to boost access to energy, Nigerian Association of Energy Economics president Prof Wumi Iledare, has said.

    He said there was inequity in energy access based on levels of income, and location in the country.

    This situation, he said, means that 52 per cent of Nigeria’s population doesn’t have access to modern energy.

    Prof Iledare, who spoke at a press conference to mark this year’s World Energy Day in Abuja, added that 25 per cent of Nigeria’s population of over 170 million had regular access to electricity.

    The remaining 75 per cent, he said, make do with little or no electricity, adding that 45 per cent of the population was connected to the national grid.

    He said: “This is very vital for our nation because despite the importance of energy to economic development, a large proportion of Nigerians have no access at all to modern energy, in particular, electricity, and for those with access, availability and quality remains a major concern.

    “There is obvious inequity in energy access based on levels of income, and location. Access is nearly 100 per cent in developed countries, compared to 60 per cent in the developing countries. In 2011 alone, the IEA (International Energy Agency) estimated that about 68 per cent of the people in sub-Saharan Africa were without access to modern energy and 52 per cent of Nigeria’s population falls in this category.

    “Using electricity as an example, less than 25 per cent of the total population of over 170 million has regular access to electricity. The remaining 75 per cent make do with little or no electricity. Although 45 per cent of the population is connected to the national grid.”

  • ’97m Nigerians don’t access grid electricity’

    No fewer than 97 million out of 175 million Nigerians have no access to grid electricity.  The remaining 78 million people who are connected to the grid face substantial power interruptions, the Energy Savers Nigeria, a non-governmental organisation (NGO) has said.

    In a paper titled: “The Nigerian Power Sector, A Performance Appraisal under the Buhari Administration” Moses Nasamu, a  member of Board of Trustees of Energy Savers Nigeria, said about 56 per cent of the population are connected to the grid, while 44 per cent  are not.

    He said an estimated 41  per cent of Nigerian businesses generate their own power supply to augment supply from the grid, in line  with the recent World Bank report on electricity situations in Nigeria, adding that the problem was caused by poor generation and distribution system and other systemic issues in the sector.

    It said Nigeria lags behind other developing nations in terms of grid- based electricity consumption with 126 kilowatts hour(kwh) per capita, stressing that electricity consumption is expected to be five times higher than what it is today in Nigeria, if we  consider the country’s Gross Domestic Product( GDP) alongside other countries globally.

    The paper said 25 per cent of Nigeria’s 12, 522 megawatts (Mw) of electricity installed reach the end user. “Widespread inefficiency means that only 3, 879Mw of this capacity is operational, with 3,600Mw transmitted and 3,100 distributed. Most of the shortfalls, which were about 5,381Mw, is capacity that is unavailable due to obsolete equipment and poor maintenance or due to ongoing maintenance and repair activities at existing power plants. Also, about 3,262Mw of electricity is non-operational primarily due to gas, water, high frequency, and transmission line constraints.”

    According to the paper, the sector has recorded some operational improvements, mainly driven by increased availability of gas since May 29th, 2015, when the Buhari/Osinbajo led government started.

    The paper stated that in August 2015, Nigeria hits historical highs as both peak generation and total energy generated across the system stood at 4,811Mw and 4,213 megawatts hour (mwh) respectively. It said transmission losses fell by 10 per cent between June and August 2015, compared to the first four months of the year.

    “Nigerians would recall that at the commencement of Buhari/Osinbajo’s administration in May this year, the sector was plagued with challenges,  which included under-utilisation of generating plants partly due to insufficient gas availability occasioned by  frequent vandalism of gas distribution assets, inadequate transmission infrastructure, high distribution losses, liquidity problem, among others,” the group added.

    They said electricity generation and distribution has improved relatively, despite the fact that the problems still exist in the sector. “The Buhari government has helped in restoring confidence in the sector through its decision to fast-track execution of the first set of World Bank partial risk guarantees, and granting of sovereign immunity waiver which aimed at increasing the rate of growth of the first tranche of project-financed Independent Power Projects (IPPs) and the interim execution of the contracts undertaken by the management of Transmission Company of Nigeria (TCN).

    On solution, the group urged the successor distribution companies to improve on their revenues in order to enable them fund what they described as ‘Wholesale Obligations,’ cater for their operating expenditure requirements,  invest in new and modern capacity, and ensure cost- effective tariff is provided for the teeming consumers of electricity in Nigeria.  They said when these measures are well implemented, power supply would improve and industrial activities will improve also.

  • Access Bank launches product for importers

    Access Bank launches product for importers

    Access Bank has launched a new product to relieve importers of logistics and financial difficulties associated with importation business.

    Addressing importers at the weekend in Abuja, on the scheme known as FLOWS, the bank’s Chief Executive Officer, Mr. Herbert Wigwe represented by Adeyemi Olusanya, Group Head, Business Banking, Lagos, said this scheme was developed with the interest of importers in mind.

    Olusanya told the importers that “once you open your Form M and submit everything we take over from there and your goods will be delivered at the designated warehouse also it makes it accessible for you to access the kind of lending you hitherto could not with this.”

    Access Bank he said has “control of the entire process, it means that we can give you money without collateral and when the goods come, as you pay, you start collecting your goods so maybe you are doing N5 million before it means you can do N10 million and more importantly because it is a product that we developed for Small and Medium Enterprises (SMEs) even with the unavailability of FX and people taking different steps to secure FX, in Access bank as long as you come under this product, those issues will not arise.”

    Justifying the need for the scheme, Olusanya said it was not by accident that Access Bank is focusing on SMEs, stressing that “it’s a deliberate focus for us at Access Bank because we believe that serving this segment of the economy will provide us the opportunity in achieving economic growth across the African continent and it will also put us in good stead to contribute to the development of Nigeria.”

    Access Bank he said is making deliberate attempts and putting structures in place to support this sector. “We recognise the fact that the sector has issues, there are a lot of risks that bedevil this sector but we believe that if we have put proper structures that will start derisking the sector without the anticipated aspect of default.”

  • Afren Plc owes Zenith, Access, Stanbic banks N37b

    Afren Plc owes Zenith, Access, Stanbic banks N37b

    Afren Plc’s  debt to Zenith Bank Plc, Access Bank Plc and Stanbic IBTC Bank Limited stands at N37 billion ($185 million) says Renaissance Capital (RenCap).

    A report released yesterday by RenCap, an investment and research firm,  showed that the three lenders have at least N37 billion principal exposure to Afren, which is currently in administration, with “little likelihood that it can  continue as a going concern”.

    RenCap analysts concluded that   as far as the loan is concerned,  Zenith Bank is in the most comfortable position, followed by Access Bank, and then Stanbic IBTC.

    Afren Plc is an independent oil and gas company listed on the Main Market of the London Stock Exchange, with a diversified portfolio of production, development and exploration assets.

    RenCap,  quoting  Afren documents, said Zenith Bank has $100 millon to Oil Mining Licence (OML) 26 and $5 million to Ebok; Access Bank has $50 million to Okwok/OML113 (Aje), $5 million to Ebok; and Stanbic IBTC Bank has $25 million to Ebok.

    “From our discussions with Zenith management and Renaissance Capital’s oil & gas analysts, we believe that of all the banks with credit exposure to Afren, Zenith is in the most comfortable position,” it said.

    RenCap said the asset is producing, located onshore, and has low operating costs – which imply that its production economics still make some sense at currently low oil prices.

    “The February 2014 facility, is primarily secured by a charge over Afren’s interest (via FHN 26 – the SPV) in OML26, and its cash flows. According to Zenith management, other Afren creditors do not have claim to OML26. We do not think Afren plans to sell this asset and our oil & gas analysts believe that its cash flows should be sufficient to repay the loan, valuing the asset at $114 million,” the report said.

    Further analysis of the assets showed that Access Bank’s $50 million to Okwok/OML113 (Aje), according to the bank’s management, showed it has a first-ranking lien on both, but some of the bank’s claims are subject to counterparty consent.

    “Both assets are offshore and not producing. While most of the $50 million was spent developing Okwok, Aje is expected to produce first, by late 2015; Okwok production could happen in 2016/2017. At $50 per barrel, our oil & gas analysts value Okwok negatively at ($161 million) and Aje at $45 million, implying 90 per cent potential credit recovery for Access (facility recovery value largely dependent on Aje),” it said.

    Ebok is located offshore and is Afren’s largest producing field. Afren has a $300 million syndicated facility from a series of local and international banks on this asset. While the loan was originally secured using Ebok reserves, cash flows and material contracts, the creditors’ rights were relegated via an inter-creditor agreement on 30 April 2015, when Afren secured life-saving interim funding of $200 million.

    RenCap analysts concluded that there are legal and contractual technicalities that could cause significant losses with regard to the lenders’ exposure to Afren.

  • Access vs. quality

    •The Federal Government should not interfere in varsity admissions

    The Federal Government’s decision to overrule a recent directive of the Joint Admissions and Matriculations Board (JAMB) does little to help resolve the admissions crisis currently facing the country’s universities, in spite of its avowed good intentions.

    In an attempt to streamline the near-chaotic situation in popular universities which regularly attract far more candidates than they can possibly admit, JAMB had, at its 2015 Combined Policy Meeting, directed that applicants for the Unified Tertiary Matriculation Examinations (UTME) would be reassigned to other universities with lower numbers of applicants.

    Based on that decision, schools like the universities of Ibadan, Ilorin, Lagos, Calabar and Benin, as well as Obafemi Awolowo University (OAU), Ile-Ife, and Ahmadu Bello University, Zaria, were sent lists of candidates which excluded those who had been assigned to other schools which were not their first-choice institutions. In addition, the University of Lagos took the opportunity to raise its cut-off marks for the post-UTME to 250 from the 180-mark minimum approved by JAMB as a means of further reducing the pool of candidates to manageable levels.

    These measures have led to protests by parents, students and other stakeholders who argue that it is unjust to ostensibly change the rules in the middle of the game. It was apparently in response to this outcry that the Federal Government overruled JAMB.

    While government may have acted from the best of motives, it must be realised that intervening in the actions of a government agency with a specific mandate is not the best thing to do.  JAMB’s measures were aimed at partially resolving the so-called crisis of access that has continued to bedevil tertiary education. About 1.475 million students sat the UTME in 2015. There are places for only about 30 per cent of that number; in the 2012-2013 academic session, the nation’s then -128 universities admitted just 520,000 candidates out of the 1.735 million who sought admission.

    Government’s intervention does nothing to solve this recurring problem. Several schools have been swamped by far more candidates than they have the capacity to admit. About 85,495 UTME applicants sought admission to University of Ilorin; University of Benin got 60,020 applicants. Even if they exceed their admission quotas as they are known to do, none of these schools will admit up to 10,000 candidates each.

    It is clear that the issues are much more fundamental than just those of admission. Universities are by definition competitive entities reserved for those who have the intellectual ability to secure entry to them. The huge numbers seeking admission are indicative of an institutional anomaly characterised by the lack of viable alternatives like sound vocational education, the widespread disregard for other forms of tertiary education and the overwhelming preference for white-collar jobs.

    By compelling universities to reopen their gates to students who met the minimum cut-off marks initially specified by JAMB, government has simply reinstituted the problem without solving it. Once again, universities are going to witness chaotic scenes as post-UTME venues are forced to accommodate more candidates than they can cater for. Fraudsters and other criminals will have a field day ripping off desperate parents and applicants. Candidates who never had a realistic chance of getting into their preferred schools will see their hopes frustrated for yet another year.

    Nigeria can no longer afford to turn its annual university admission process into a mad rush in which thousands of hapless candidates suffer needlessly. Rather than interfere in the work of JAMB, government should simply scrap it and permit universities to set their own admission criteria. It should focus its energies on offering workable alternatives in vocational education, upgrade qualified monotechnics and polytechnics to universities, and expand the scope of other forms of tertiary education. Only then will the country no longer have to make the false choice between access and quality.