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Tag: Arunma Oteh

  • How to save Nigeria’s economy – Otteh

    How to save Nigeria’s economy – Otteh

    The government must diversify the economy if Nigeria is to survive falling global oil prices, World Bank Vice President and Treasurer, Arunma Otteh, said on Monday.

    She said Nigeria ranks 152 out of 188 in the Human Development Index, and ranks below the average for sub-saharan Africa.

    Otteh spoke in Lagos while delivering the inaugural Philip Asiodu Lecture Series, with the theme: “The proper role of oil in the context of accelerating growth and development in Nigeria.”

    It was organised in honour of a former diplomat and Minister of Petroleum Resources, Phillip Asiodu.

    Life expectancy in Nigeria, Otteh said, is 53 years, eight years lower than in Ghana and 21 years lower than in Brazil.

    On corruption, Otteh referred to the Transparency International’s 2015 report which placed Nigeria on 136 out of 168 most corrupt countries.

    This, she said, affects the flow of foreign direct investment (FDI) to the country.

    “Nigeria rapid GDP growth over the past decade has not translated into strong human development and competitiveness compared to the rest of the world even when compared to many of its Sub-Saharan African peers,” she said.

    Otteh said Nigeria can no longer depend only on earning from oil, which now sells for as low as $26 per barrel, and which accounts for 95 per cent of the country’s foreign exchange.

    “Given the level of price uncertainty and Nigeria’s dependence on oil, it is all the more important to diversify away from oil,” she said.

     

     

  • Arunma Oteh gets world bank appointment

    Arunma Oteh gets world bank appointment


    Arunma Oteh, former Director-General, Security Exchange Commission (SEC) has been appointed Vice President and Treasurer of the World Bank. The appointment was on Friday confirmed in a press statement issued by Jim Yong Kim, World Bank President of the World Bank. The statement reads: "I am pleased to announce the appointment of Arunma Oteh as VP and Treasurer of the World Bank. Arunma, a Nigerian national, was most recently the Director-General of the Securities and Exchange Commission of Nigeria. Appointed to a five-year term by the President of Nigeria in 2010, she led the transformation of the country’s capital markets industry into a major global presence. She was a member of the Board of the International Organization of Securities Commissions (IOSCO) and the Chairperson of the Africa Middle East Regional Committee of IOSCO. “Prior to joining the Securities and Exchange Commission (SEC) of Nigeria, Arunma was Group Vice President, Corporate Services, at the African Development Bank Group (AfDB). In this role, she oversaw a number of departments, including human resources, information and communications technology, and institutional procurement. From 2001 to 2006 she held the role of AfDB Group Treasurer, where she led AfDB’s fundraising and capital market activities across the world. Earlier roles at the AfDB, which she joined in 1992, included trading room management, investment portfolio coverage, and public sector lending. She also held other positions in capital markets and lending during the course of her career at the AfDB. Arunma began her career in 1985 at Centre Point, where she executed debt and equity offerings in the Nigerian capital markets. She earned her Bachelor of Science in Computer Science from the University of Nigeria and her Masters of Business Administration from Harvard University. As VP and Treasurer, Arunma will manage and lead a large and diverse team responsible for managing more than $150 billion in assets. Her top priorities will be to:

    • maintain the World Bank’s global reputation as a prudent and innovative borrower, investor and risk manager;
    • ) manage an extensive client advisory, transaction and asset management business for the Bank;
    • ) engage, in her capacity as one of the World Bank’s key representatives, with outside stakeholders including global private sector financial institutions, the financial media and the sovereign debt and reserve managers in client countries, as well as ratings agencies; and,
    • ) collaborate extensively with the Finance Partners throughout the WBG, including with IFC and MIGA, expanding shared approaches, in particular around innovative financing for development and for key new projects.
    Ms. Oteh was selected to this position through an international competitive search. Her appointment is effective as from September 28, 2015.

  • How Oteh’s reelection as AMERC chair’ll aid Nigeria

    How Oteh’s reelection as AMERC chair’ll aid Nigeria

    THE  reelection of the Director General, Securities and Exchange Commission (SEC), Ms. Arunma Oteh as chairperson of the African/Middle East Regional Committee (AMERC) is a further boost to Nigeria’s credentials in the international community, analysts have said.

    They said this appointment is not just a good commendation, but speaks volume of how Nigeria is being perceived out there by discerning publics, and is a testament to the fact that the country’s leadership potential is overwhelming.

    Ms. Oteh was reelected unopposed at the 39th annual conference of the International Organisation of Securities Commissions (IOSCO) held in Rio de Janeiro, Brazil, based on the experience that she has garnnered, as well as the quality leadership Nigeria has provided over the years.She is to head AMERC for the next two years.

    By this election, Oteh is to serve on the Executive Committee, the highest decision making organ of the global body for the next two years. Saudi Arabia was re elected and Egypt was elected for two years.

    In her acceptance speech,  said her election as AMERC chair is a demonstration of the confidence on her, her team at SEC and Nigeria as a whole. She pledged to be a loud voice representing the Region’s interest and commitment, assuring that the Region will do its best to uphold the goals and ideals of the global body.

    She said: “We believe that our work is very important to IOSCO and that it is very important to the market. One of the things we have achieved in the last two years, has been greater inclusion and cohesion. This has not come from the work of the executive alone, but by the work of all of us.

    “I am excited about the opportunity given us to lead this Committee again for the next two years, and we will continue to ensure that our committee is the best in IOSCO.”

    Oteh disclosed that there is an increasing focus on the capital market away from banking and finance, as banks are still dealing with the challenges of the global financial crisis, adding that the challenge for the regulators is to raise an enabling environment that would not increase risk for the investors and operators.

    She said capital markets are very critical to the economy of every nation. The capital market is really the answer, as it does not only provide financing but creates the environment where the right products are available. We come together to support each other in enforcement, share information because we believe the world is global

    Ms. Oteh, said IOSCO has succeeded so far because of co-operation between countries, adding that in AMERC, “we can focus on the things that are most important to us and it is heartwarming that we are making progress in our respective countries,” Oteh added.

    She stated that her priority would be to build capacity among AMERC- member countries and promote the integrity of the securities’ markets to engender investor confidence which are critical to the development of the AMERC capital markets and economies.

    Her words: “I will do my best and will continue to rely on your support to ensure that AMERC continues to grow stronger and stronger. We will embrace global best practices to ensure that our markets are world class markets.”

    Ms. Oteh described the regional meetings as very critical because it is a forum for all members to share lessons and address some of the issues that are most pertinent for the Region.

    She described the theme of this year’s meeting: ‘Market based financing for global growth, A forward looking approach,’ as apt at a time when there is greater recognition in the countries and globally about the value of capital markets, notably for job creation through funding, SMEs or large companies through fostering economic inclusion and also to meet the huge infrastructure financing requirement.

    In his remarks, Chairman of IOSCO Board, Greg Medcraft, said  the organisation is determined to build on the changes and the good work it has done in the past to ensure that markets can fund the real economy and drive economic growth globally which in turn he said, would improve standard of living.

    Medcraft also emphasised the ongoing innovation driven complexities in production, markets and technology adding “we are living in a digital world and we have to stay above the game by recognising the risks early and putting measures in place to nip it early.

    “Digital disruptions to business models is a serious challenge and it is important that we as regulators understand how to mitigate risks.”

    Medcraft disclosed that there are great opportunities in the global capital markets, but added that regulators need to set their priorities right in order to access such opportunities.

    As a first step, he said IOSCO is committed to supporting members by designing a funding a sustainable capacity building programmes which actually meets their needs and also continue to focus on system information of principles and standards.

    IOSCO was established in 1983 as the standard setter for the securities industry worldwide and currently has over one hundred ordinary members. IOSCO is recognised as the leading international policy forum for securities regulators. The organisation’s membership regulates more than 95% of the world’s securities markets in over 100 jurisdictions and its membership is steadily growing.

  • Job opportunities for financial planners

    Job opportunities for financial planners

    From the pure to applied social sciences, planning is a common denominator. For graduates in the financial services discipline and qualified chartered accountants and administrators, opportunities exist to earn a living as financial planners and advisors, reports Taofik Salako.

    Financial planning is widely regarded as the livewire of every system-corporate or personal. In institutions, the roles of the accounts department mainly revolve around financial planning, to ensure proper cash-flow and liquidity to allow for the continuous operations of the institution, while simultaneously optimising and protecting the financial assets of the institution.

    An otherwise “buoyant” and “healthy” company could become bankrupt overnight due to poor financial planning. This may orchestrate terminal distress and liquidation.

    For individuals, personal financial planning is the key to sustainable living. Hallman and Rosenbloom (2003), define personal financial planning as the development and implementation of total coordinated plans for achieving one’s overall financial objectives.

    Oftentimes, private wealth management is used inter-changeably with personal financial planning to underline the peculiarities of each individual planning for his/her peculiar situation.

    While people’s financial objectives may differ due to their peculiarities, there are common threads that usually run through and these include, protection against risks, such as premature death, unemployment and disability; building up of strong capital base to meet current and future needs, tax and liability management, generational transfer of financial assets and sustainable management and investment of assets.

    Personal financial planning cuts across cadres-from the poor to the rich, young and old, and thus is a sort of unending preoccupation of the people. That is why it is a selling topic, irrespective of the economy, population or location.

    Unfortunately, people usually lack adequate knowledge of financial planning. While companies employ professionals and consulting firms to help with financial planning, personal financial planning remains detached, or alien to some, if not most people.

    The question is, how many people really understand their pension plans?

    How many people know their taxes and benefits, or how many people know about financial assets?

    The knowledge and participation in most variety of financial instruments used in personal financial planning, such as shares, bonds, mutual funds, insurance, certificate of deposits, bank accounts, personal trusts and real estates, remain low.

    For instance, SEC indicates that only 200,000 Nigerians out of a total population of about 170 million participate in mutual funds, otherwise known as collective investment schemes, while only some five million people participate in the capital market, less than three per cent of the population. Therein lies the opportunity for personal financial planners.

    Securities and Exchange Commission (SEC), the apex capital market regulator, is spearheading a short conversion programme for graduates of various disciplines to train as personal financial planners. Just like the proverbial washman, this has the dual-benefit of cleaning off the personal ignorance and serving as sustainable source of personal source of incomes.

    SEC is working through the Nigerian Capital Market Institute, its training subsidiary, and the Financial Planning Association to train graduates, certify them and attach them to fund investment management companies to serve as out-growers for the investment management industry and the capital market, in general.

    Director-General, SEC, Ms. Arunma Oteh, said the commission believes that a short-term course in financial planning can make several graduates to be able to earn their living and reduce the excruciating search for paid jobs.

    “We can train young people to become financial planners, may be those graduates from Law School, in economics among others, we can put them through a Booth-Camp programme and then prepare them to affiliate with some of these Fund Managers and to sell their products to investors. That is something that we are very keen to do because we think it will also help the job situation in Nigeria,” Ms.Oteh said.

    According to her, training and working as a Financial Planner is a viable source of livelihood as investing and personal financial planning, are critical.

    “First and foremost, what I tell everyone is that investing is very critical. If you are going to invest, you must have some level of familiarity on what you are going to invest in. Even if you have an expert that is helping you, you must be able to ask the right questions. So, my advice to people is to focus on building their knowledge because it is a skill that you will need through your life because saving and investing help you to raise your standard of living, to save for your retirement, to save for any health challenge you may face or to save for the education of your children. So it is a skill that people should learn about,” Oteh said.

    She said there is enough potential for personal financial planners in the gap between the investing public and the Nigerian population as well as the depth and participation in the collective investment scheme (CIS) or mutual funds industry.

    “Today, we have less than 200,000 who are leveraging into CIS funds to save and invest. There is clearly room for more to be done. We have about $1 billion of funds under management; that is very small for a country of 167 million people. So the potential is enormous,” Oteh said.

    She said participation in mutual funds can be a way for Nigerians to leverage their incomes and build up a strong base against the waves of ups and downs that come with changing market situations.

    “We are recommending mutual funds. Mutual funds allow you to invest a small amount, but to have the opportunity of investing that amount in several companies or several types of products. So, if you have N5, 000, you can buy a money market bond fund and that fund can invest in various treasury bills. Also, if for example you bought mutual funds that invest in companies, the funds can invest in banks, fast moving consumer good, construction companies, in an oil and gas company and so on, so that when there is a problem in one sector, the problem from that sector is balanced by the benefit that you are getting from another sector. That is what a mutual fund does for you; it allows you to reduce your risk by spreading it over several companies. If it is a mutual fund that invests in equity, it allows you to use a small amount and tap benefits in several areas. So, my guidance is that use mutual funds, you also take the benefit of financial experts. We have a number of such funds, about 44 of them and there is still opportunity for many more to come to be,” Oteh said.

    Besides, such training in investment and financial planning also provides opportunity for others to earn additional incomes alongside their other jobs.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Ariyo Olushekun, said there is opportunity for non-finance professionals to participate in the investment market.

    Managing Director, GTI Securities Limited, Mr Tunde Oyekunle, added that the market has enormous potential that remain untapped.

    Oyekunle, whose firm has built Nigeria’s first private trading floor, said ambitious young graduates can find opportunities in the ongoing innovations at the market.

     

  • Stockbrokers kick against NSE’s demutualisation

    Stockbrokers kick against NSE’s demutualisation

    Stockbrokers have kicked against the decision of the National Council of the Nigerian Stock Exchange (NSE) to proceed with the demutualisation of the Exchange without a resolution to that effect from a general meeting of owner-members of the Exchange.

    A cross section of leading stockbrokers, who spoke to The Nation, said it was against the Memorandum and Articles of Association of the NSE and good corporate governance practice for the NSE to initiate any process of demutualisation without the consent of the owners of the Exchange, who are mainly stockbrokers.

    The criticism comes on the heels of announcement by the National Council of the NSE seeking to engage the services of a consortium of two financial advisers in preparation for the commencement of the demutualisation.

    The advertisement titled “Invitation for Expressions of Interest (EOIs) for Financial Advisory Services towards the Demutualization of the Nigerian Stock Exchange” indicated that the invitation was in “furtherance of the efforts of NSE to commence its demutualisation” and that the consortium of two financial advisers will advise the NSE through the process of demutualisation.

    Industry leaders, who preferred anonymity for the meantime in order not to aggravate brewing crisis of confidence at the Exchange, said the advertisement and the purported mindset on demutualisation were like putting the cart before the horse.

    The NSE has not responded to request for comment on the brewing crisis of confidence.

    While stockbrokers generally appear to be in support of the demutualisation, they said the process appeared to be under a tele-guide to achieve predetermined objective.

    “The decision to demutualise should come from the owners of the NSE, the broker-dealers. Has there been an annual general meeting (AGM) or Extraordinary General Meeting (EGM) where such decision was taken?” a leader of the industry practice regulatory group queried.

    Stockbrokers appeared to be unanimous about the absence of a valid resolution or an AGM or EGM on such issue as demutualisation.

    “That is a valid point, before anything can be done, there has to be the consent of the owners, it has to go through an EGM,” another leader of a trade group for active brokers responded when told about the concerns of other brokers.

    Stockbrokers said they suspected foul play in the manner that the council and management of the NSE have been handling the demutualisation claiming that the process might short-change the members of the Exchange who had laboured to build the platform to what it is today.

    They said by failing to organize an AGM or EGM, which would have determined the real owners with the right to vote on the affairs of the NSE; the Exchange may be working with a wrong list of members.

    “In taking a decision on demutualisation, there is the need to identify the owners, there is need for the owners to be told in clear terms what they are doing, and we all have to agree on the list of the owners. They have admitted some ordinary members in questionable circumstance in recent time, we need to determine their status because we feel that it is not right that when some people want to benefit from their sweat, then some people just pop in from nowhere,” one of the stockbrokers’ leaders said.

    Demutualisation is the process of changing a member-owned stock exchange, otherwise known as mutual exchange, to a corporate entity owned by shareholders. Established as Lagos Stock Exchange (LSE) in 1960, the NSE was conceptualized as a limited by guarantee not-for-profit organisation thriving on the goodwill, reputation and integrity of its members.

    The NSE is currently owned by its members, mainly stockbrokers and some high networth individuals and institutions. At the last count, the NSE has some 350 individual and institutional members including some 255 active dealing members. Alhaji Aliko Dangote, president of the Dangote Group, which has four listed companies including Dangote Cement, the most capitalised company on the NSE; is the president of the National Council of the NSE while Mr Oscar Onyema is the chief executive officer.

    The Securities and Exchange Commission (SEC) had two weeks ago confirmed that the Federal Government is currently reviewing the guidelines for the demutualisation of the NSE.

    Director General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, said that the guidelines for the demutualization are currently undergoing the scrutiny of the Ministry of Finance to ensure they serve the best interest of the country.

    According to her, SEC had developed a framework for the demutualization of the NSE and future securities exchanges based on the work of the technical committee and inputs from Nigerian and international experts and stakeholders and submitted this to the government for review and consent.

    Oteh said the public interest is paramount in the demutualization of the NSE given the symbolic importance of the Exchange as the only equities’ Exchange in Nigeria and the historic role the government played in setting up the Exchange.

    She said the guidelines would serve the immediate purpose of the demutualization of the NSE and future demutualization of other exchanges noting that “it is guidelines for anytime that there is any demutualization exercise and not just focused on the Nigerian Stock Exchange”.

    She added that SEC was also concerned that the current owners of the NSE should get more value from the demutualization noting that the NSE has gained significant value now than it was in 2010.

    The Securities and Exchange Commission (SEC) had in 2011 set up a technical committee on the demutualisation of the NSE, which submitted a comprehensive report on the alternative processes for the demutualisation of the NSE in line with international best practices. The committee examined regulatory policies, management, operation, governance and financial issues in demutualisation of NSE as well as various demutualisation models and experience including valuation model for demutualization.

     

     

     

     

     

     

     

  • SEC calls for inclusive financial access for women

    SEC calls for inclusive financial access for women

    Securities and Exchange Commission (SEC) has stressed the importance of financial access to women as a major catalyst for national development.

    Speaking during the SEC Learning Series’ programme in commemoration of the International Women Day, director general, Securities and Exchange Commission (SEC), Ms Arunma Oteh underscored the importance of financial literacy and saving and investment among women.

    She noted that the United Nation’s theme for this year’s celebration-”Inspiring Change” gives reason to be really proud of the great Nigerian women who have inspired change in the nation and have led various efforts for the country’s development

    According to her, SEC is determined to see women achieve economic empowerment but more importantly, it wants to celebrate the critical role of the woman in nurturing children and giving them the best of love and attention.

    She pointed out that women all over the world are faced with societal realities that threaten to limit their achievements and prevent them from attaining their economic potentials.

    “But of the many realities that women face, there is perhaps none as disenfranchising as poor access to finance. A recent study by the IFC showed that women-owned SMEs are particularly a financially undeserved segment. They are not only less likely to obtain formal financing; they also often get charged higher interest rates,” Oteh said.

    Citing a World Bank report on “Investment Climate in Nigeria”, she noted that about 76 per cent of women rely on informal sources of funds and savings in sharp contrast to only about one per cent that obtained capital from the formal sector.

    “Many other surveys have reported women being denied bank loans in high numbers. In addition to limited access to finance, women face discriminatory customary and other practices in inheriting land and property. In Nigeria, although women make up between 60 to 79 percent of rural workforce, they are five times less likely to own land than men,” Oteh noted.

    She pointed out that another reason for women’s economic exclusion is the disparities in earnings as in almost all parts of the world, women earn less than men.

    She said a study by the DFID revealed that when the incomes of men and women with the same educational levels were compared, women at every educational level earned at least 20 per cent less than their male counterparts and men with less education in some cases earn more than more educated female peers.

     

  • HomeVida 2013: Elvis Chuks, Oby Edozien, Kalejaiye Paul shine

    HomeVida 2013: Elvis Chuks, Oby Edozien, Kalejaiye Paul shine

    IT was a glitzy evening on Tuesday, December 10, when the fourth edition of the Nigeria Integrity Film Awards (HomeVida), an initiative of the Public and Private Development Centre (PPDC), held with pomp and circumstance at the MUSON Centre, Onikan, Lagos.

    For Mr. Chibuzo Ekwekwuo, coordinator of the PPDC, it was time again to celebrate and reward excellence in Nollywood, while calling on practitioners to deploy their creative energies to produce films that can engender socio-cultural change.

    Themed “Providing incentive for Nigeria filmmakers to mainstream integrity value in their films”, the 2013 HomeVida started with a cocktail where some stakeholders, after being welcomed by Ekwekwuo, met minds on burning issues in the industry.

    At the colourful event anchored by handsome Joseph Benjamin, an actor and master of ceremonies, Ms. Patricia Bala, Director-General, National Films and Video Censors Board (NFVCB), said, “Through those years, HomeVida has responded positively and embraced the Federal Government’s private public partnership initiative to good effect.”

    According to her, the programme has also provided film development assistance to several young and emerging filmmakers in Nigeria, while also playing a significant role in the war against social menace such as poverty, drugs and corruption.

    Also, in her goodwill message on the occasion, the Director-General, Securities and Exchange Commission( SEC), Ms. Arunma Oteh, said, “Since 2010, HomeVida has served as a unique platform for the promotion of creative excellence, especially among young people, while advancing the positive image of our dear Nollywood, internationally.”

    Arunma, who was represented by Cynthia Ogodo, expressed the readiness of the Commission to continue to partner with the Nigerian film industry “in furtherance of our financial literacy and financial inclusion goals.”

    For Mr. Charles Abugre Akelyira, Regional Director, Africa, United Nations Millennium Campaign, the 2013 HomeVida was unique in the sense that it featured the introduction of a unique partnership between UNMC and PPDC/ HomeVida, a situation that was responsible for the Campaign to endow a prize for the film that best promotes the value of human development and the Millennium Development Goals (MDGs).

    Speaking through Mr. Hilary Ogbonna, UNMC Country Representative, he said, “Today, Nigerian movies are not only entertaining the continent and Africans in the Diaspora, they are also shaping our values and telling our unique stories to the entire globe. It is this attribute of the African movie industry exemplified by Nollywood that UNMC is working with PPDC and HomeVida to promote movies that project values of human development.”

    The event, which was spiced with electrifying music interlude by award-winning act, M1, began to climax first with the premier of short films made from winning entries in the HomeVida 2013 Short Script Competition and presentation of prizes to winners. Immediately after, all eyes turned to Frances Okeke, who won in the Public Probity Film category with her script titled “The Aviation Man”. After she left the podium, it was the turn of Ebuka Njoku whose creativity was acknowledged with her work, Bola’s Dirge, which won in the Human Development Value endowed by the United Nations Millennium Campaign. Interestingly, when Ogbomwen Adeyinka Edward was called up to receive his prize as the winner in the Investment Market Film with his work, Mutual Benefit, the hall also saluted his creativity. Each of the winners went home with a cash prize of N100, 000(One hundred thousand naira only).

    It appeared the audience was on the edge of their seats during the announcement of winning entries and presentation of HomeVida 2013 Feature Films awards. The short-listed feature films in the Human Development Film Prize category was hotly contested for by producers of Cindy’s Notes and Victims of the Society. But the tiara was adjudged to fit only the head of Kelvin Chuks, the producer of Victims of the Society. In the Family Friendly Film category, the shortlisted films were Two Brides and A Baby and Married but Living Single. However, Kalejaiye Adeboye Paul (KAP) the producer of Married but Living Single clinched the coveted prize. Also, in the Faith Film category, two movies were shortlisted: A wish and Save Our Souls. It was, however, Oby Edozien-Alex O’s day of glory as her movie, Save Our Souls was adjudged the winner.

    Each of the winners in this category was rewarded with one million cash prize by the organizers.

    “HomeVida, according to the initiator, “is a film award platform driving creative messaging on integrity and value change through FILM to Nigerian and African audiences. The platform also provides incentives for talented Nigerian filmmakers to mainstream integrity values in their films. HomeVida hopes to expand to capture filmmakers across Africa.”

  • IFC, AfDB plan $2.5b Naira bonds

    IFC, AfDB plan $2.5b Naira bonds

    -Fed Govt to float Diaspora, depository bonds

    The International Finance Corporation (IFC) and African Development Bank (AfDB) have started arrangements to issue Naira-denominated bonds worth $2.5 billion, about N400 billion, in landmark bond issues that will further redefine the Nigerian domestic debt market.
    Securities and Exchange Commission (SEC) Sunday  confirmed the bond issuance plans by the two multilateral financial institutions. The Debt Management Office (DMO) also confirmed plans by the Federal Government to raise funds from remittances of Nigerians in Diaspora and other investors through the issuance of Diaspora bond and Global Depository Notes (GDN) bond.
    Director General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, who spoke at a two-day training workshop organized by the Capital Market Correspondents Association of Nigeria (CAMCAN)  in Badagry, Lagos State, said both the IFC and AfDB were interested in raising medium term note (MTN) bonds.
    According to her, IFC has already approached the apex capital market regulator for a medium term note (MTN) programme for a naira-denominated bond worth about $1 billion while the AfDB has also filed for similar instrument of about $1.5 billion.
    Oteh, whose address was presented by her communication adviser, Mr. Obi Adindu, said the new issues by the multilateral bodies will not have any lifespan of a shelf programme, indicating that they can continuously raise the funds as long as they want.
    She noted that allowing shelf registration for bonds is an important step in spurring activity from issuers pointing out that the Commission had started with an initial lifespan of two years for shelf programmes but recently the board of the SEC did away with the time limitation implying that shelf programme can now enjoy an unlimited lifespan.
    “The Nigerian bond market is certainly on the verge of a revolution buoyed an improved, competitive and conducive environment that attracts issuers and investors alike. The yield curve of the FGN bonds which has been extended to 20 years provides a good benchmark for issuers of all stripes to leverage the bond market to attract capital, both foreign and local. The market will continue to attract significant amounts of capital internationally since the FGN bond attracted inclusion into the emerging markets indices of Barclays and JP Morgan,” Oteh said.
    She outlined that since 2010, State Governments have issued bonds worth over N421 billion and the amount of corporate bonds raised from 2010 to date is more than two and half times all the bonds issued by corporations from 1960 to 2009 in nominal terms.
    The DMO also  confirmed the plan by the Federal Government to raise new funds from the international market through the issuance of Diaspora Bond and FGN Bonds in Global Depository Notes (GDN).
    It should be recalled that the Federal Government had in 2011 made its debut in the international capital market with $500 million 10-year 6.75 per cent Sovereign Eurobond. Nigeria returned to the international capital market in July 2013 and successfully raised $1.0 billion in two tranches.
    Director General, Debt Management Office (DMO), Dr Abraham Nwankwo, said government had sourced N544.06 billion through domestic bond issues to finance about 61 per cent of 2013’s fiscal deficit of N887 billion.
    Nwankwo, who was represented by Head, Policy, Strategy & Risk Management, Mr Joe Ugoala, noted the gradual decline in fiscal deficit financing from N1.36 trillion in 2010 to N852 trillion in 2011 and N744.44 trillion in 2012.
    He added that four banks including Guaranty Trust Bank, First Bank of Nigeria, Access Bank and Fidelity Bank have also raised $1.85 billion, about N287 billion, between January 2011 and November 2013.
  • Why budget presentation was shifted

    Why budget presentation was shifted

    President Goodluck Jonathan will no longer present today the 2014 Appropriation Bill – no thanks to differences between the lawmakers and the Presidency.

    The issues are being discussed for their resolution ahead of next Tuesday’s presentation of the proposal before a joint sitting of the National Assembly by the President.

    Though no reason was given for the sudden postponement, our correspondents gathered that part of the reasons is the non approval of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) by the House of Representatives.

    A senator noted that there was “no way Mr. President will present the 2014 Appropriation Bill when the House of Representatives is yet to pass the MTEF and the FSP”.

    The Chairman, Senate Committee on Information, Media and Public Affairs, Senator Enyinnaya Abaribe, said: “I have just been told. I don’t really know the reason, but since both sides have agreed, it must be for good reason.”

    Another reason for the postponement, it was gathered, was the argument of lawmakers that the Executive failed woefully in the implementation of the 2013 budget, which they put at below 40 per cent.

    The House of Representatives is also unhappy that the Presidency snubbed its recommendation that the Director- General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, should be removed.

    These were two of the caveats in the 2013 budget, which, according to representatives, President Jonathan had failed to honour.

    The House is also yet to debate the MTEF and take a position on the benchmark for oil price, among other parameters.

    The planned protest to disrupt the presentation of the budget today by the National Assembly chapter of the Parliamentary Staff Association of Nigeria (PASAN) was also partially responsible for the shift.

    The workers were planning to disrupt the budget presentation to drive home their grievances over the inclusion of some questionable employees in the Staff Welfare Committee by the NASS management.

    Though the protest was called off yesterday, the association’s spokesman, who signed the protest notice, Odo Chris, said a congress would be convened shortly to chart the way forward, adding that the shelving of the protest was due to attempts by the management to address the “raging staff welfare issue”.

    The Nation learnt that there were two meetings last weekend on the budget. One was between Senators and House members. The other was with the Presidency.

    At the meeting between leaders of the two chambers, efforts were said to have been made to arrive at a common position on what should be the oil price benchmark.

    While the Senate adopted $76.5 during its deliberation on Medium Term Expenditure Framework (MTEF) presented to the National Assembly by the President, the preponderance of opinion from members of the House (which is yet to deliberate on the MTEF) was that the benchmark should be $80 per barrel.

    To this end, the National Assembly leaders were said to have told the President to put his house in order before bringing the budget before the National Assembly.

    “Though a new date – Tuesday – has been set, other factors may still push the date out of contention, if no solid agreement is reached between the National Assembly and the Executive as the House gets set to debate the MTEF this week,” a source said.

    Ali Madaki (PDP, Kano) who last Thursday moved a motion to stop the President from making the presentation of the budget today, said the latest development had vindicated his position.

    The lawmaker said adherence to the constitution by Nigerians on the street and those in authority was the motive behind his opposition to today’s planned presentation.

    According to him, the basic prerequisites of presenting the budget were not met and it is a concern that should be addressed.

    “Has the Medium Term Expenditure Framework (MTEF) been approved by the House? Has the President complied with the Appropriation Act? Though not a constitutional matter, but do we have a National Assembly Presidential Liaison Officer that is supposed to transmit Mr President’s correspondences to us? No.

    “If we act with emotion rather than in consonance with the provisions of the constitution, the effort can end up in futility because somebody can wake up one day and decide to challenge our action.

    “I raised an objection that the presentation could not hold yet because an agreement between the House leadership and the members on the eve of the passage of the 2013 budget was breached.

    “For instance, as contained in the 2013 Appropriation Act, the Securities and Exchange Commission (SEC) has zero allocation but the DG, Aruma Oteh, has been making expenditure in contravention of the Act. As we speak, Oteh is still the DG and spending money without appropriation.

    “That is another area of the breach of the Act by the Executive. So, it is not a personal matter but due diligence.”

    Saying that lawmakers should not be seen as condoning budget presentation as an annual ritual that stops after its dramatic presentation, Madaki urged his colleagues to remember that “any budget passed by the National Assembly becomes an Act that must be respected with all seriousness”.

  • SEC, stakeholders to brainstorm on capital market financing

    SEC, stakeholders to brainstorm on capital market financing

    The Securities and Exchange Commission has said it will collaborate with the National Planning Commission to host an infrastructure roundtable aimed at finding remedy for Nigeria’s inadequate infrastructural stock.

    A statement by the Communications Adviser to the Director-General, SEC, Obi Adindu, said the roundtable would highlight the role of the capital market in Nigeria’s development and how to raise $360bn needed to solve the infrastructural deficit.

    According to the statement, the roundtable, scheduled to take place from August 5 to 6 in Lagos, will involve professionals from the public and private sectors.

    The Director-General, SEC, Ms. Arunma Oteh; the Minister of National Planning, Dr. Shamsudeen Usman; the Minister of Works, Mr. Mike Onolememen; the Minister of Transport, Senator Idris Umar; the Minister of Housing and Urban Development, Ms. Ama Pepple, and the Director-General, Bureau for Public Enterprises, Mr. Benjamin Dikki, as well as the Lagos State Commissioner for Economic Planning, Mr. Ben Akabueze, are all expected to speak at the event.

    While Usman will present the National infrastructure master plan at the event, the roundtable is also expected to witness a review of comparative global trends in resolving infrastructure challenge.

    The statement read in part, “The relevance of the capital markets in providing sustainable funding for the infrastructure needs which would have been given definition by the infrastructure ministers will be examined by a panel featuring largely principal officers of multilateral financial institutions such as the African Development Bank and International Finance Corporation.

    “Participants on this panel will include a representative each of the Rand Merchant Bank, Infrastructure Concessions Regulatory Commission, ARM Infrastructure Fund and Perchstone and Gray, an infrastructure finance specialist law firm.”

    In addition to this, capital market operators are also scheduled to discuss climatic and environmental factors which would encourage investment in infrastructure.

    The SEC added that the event would review legal issues and structuring and financing options.