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  • What Nigeria stands to gain from $3b Eurobond, by DMO chief

    •DG says offer oversubscribed by 400 per cent

    The Federal Government plans to use the proceeds of the $3 billion Eurobond Offer it issued in two tranches of $1.5 billion for 15 years and $1.5 billion for 30 years to refinane domestic debts.  The offer, issued through the Debt Management Office (DMO), was oversubscribed by 400 per cent. In this report by COLLINS NWEZE, the DMO Director-General, Ms. Patience Oniha, explains the government’s debt management strategy and the envisaged impact of the offer on the economy. THERE were high expectations within the International Capital Market (ICM) when the Federal Government announced plans to raise $5.5 billion with the backing of the Debt Management Office (DMO).

    In line with the government’s debt management strategy, the $5.5 billion has two components. The first – $2.5 billion to part-finance the 2017 Appropriation Act deficit and $3 billion Eurobond to be borrowed from external sources and proceeds targeted at repaying maturing domestic debt obligations.

    So, when the $3 billion Eurobond offer eventually came and was oversubscribed by 400 per cent, the DMO Director-General, Ms. Patience Oniha attributed the success to foreign investors’ appetite for Federal Government’s instruments. The DMO chief, who oversaw the successful issuance of the country’s first Sovereign Sukuk of N100 billion, also gave further details.

    On plans to raise $5.5 billion from the international financial markets, Ms. Oniha explained the federal government’s strategy.

    She said: “The DMO had for several years raised funds for the government largely in the domestic market through FGN Bonds and Nigerian Treasury Bills, and to a limited extent, from external sources mainly the multilaterals.

    “While this had a beneficial effect of developing the domestic debt capital market, the government became the dominant issuer to the extent that it has been regularly accused of crowding out the private sector.

    “The outcome was obviously not intentional, but to remedy the situation. The DMO deemed it fit to shift some of the borrowing activities to the international financial markets. This is also in line with its debt management strategy of achieving a portfolio mix of 60 per cent domestic and 40 per cent external.

    “Through the strategy, the share of domestic debt has been brought down from over 85 per cent to 77 per cent as at September this year.”

    Giving insights into the components the DMO director0general said: “The $5.5 billion is made up of two components, the first of which is $2.5 billion to part-finance the deficit in the 2017 Appropriation Act. The 2017 Appropriation Act included new borrowings of N1.254 trillion from the domestic market and N1.068 trillion equivalent of about $3 billion from external sources.

    “As at October 2017, only $300 million in the form of a Diaspora Bond had been raised leaving an unfunded balance of $3.2 billion. The other component of the $5.5 billion external capital raising is the $3 billion whose proceeds are to be used to repay some maturing domestic debt obligations.”

    Speaking on the benefits expected from borrowings, she said: “The DMO’s role in financing budget deficits  as provided in Annual Appropriation Acts, are to support  budget implementation and the attainment of the government’s economic targets. The $2.5 billion is specifically targeted at fulfilling the DMO’s mandate in this regard.

    “On the $3 billion for refinancing domestic debt, there are several benefits for the action. Firstly, it will reduce the crowding out effect that I earlier referred to thereby creating more space for other borrowers in the domestic market.

    “It also has the potential to bring about a reduction in lending rates which would make the cost of production of goods and services by the private sector cheaper and more price-competitive.

    “Another major benefit of raising external capital is a lower cost of borrowing to government and a moderation in debt service costs. As you know, United States (U.S.) dollar interest rates are much lower than naira interest rates. The $1.5 billion 10-year and $1.5 billion 30-year Eurobonds were issued at coupons of 6.5 per cent and 7.625 per cent per annum respectively.

    “These coupons are certainly much lower than the 15 per cent to 17 per cent that the government borrows at in the domestic market for shorter tenured funds. There is also the fact that the $3 billion is a direct accretion to Nigeria’s external reserves which are extremely useful for managing the naira exchange rate.”

    Ms. Oniha explained what accounted for the over-subscription of the Eurobonds by over $11 billion (about 400 per cent of the $3 billion that the government took) and her agency accepted less than the $5.5 billion approved by the National Assembly.

    Her words: “The demand of over $11 billion from international investors is a demonstration of their confidence in the policies and reform initiatives of President Muhammadu Buhari as well as the economic outlook of Nigeria.

    “Like those investors, we ourselves can attest to the economic improvements in Nigeria as demonstrated by higher external reserves, stable exchange rate, Gross Domestic Product (GDP) growth of 1.44 per cent in the third quarter of 2017 and improvement in the Ease of Doing Business.

    “Our intention was not to raise the $5.5 billion at once. Our first priority was to raise the $2.5 billion required for the 2017 budget while the $3 billion required for refinancing domestic debt will be in a phased manner.

    “Also, from a technical perspective, we still wanted to moderate the cost even in the International Capital Market by managing the supply of Nigeria’s Eurobonds in the market.”

    On the significance of the 30-year Eurobond being issued for the first time in the country, she said: “It is remarkable that international investors were willing to take a long term risk on Nigeria by buying the 30-year Eurobond. This feat is even more remarkable when we consider that South Africa which has a superior sovereign rating of BB- compared to Nigeria’s B+/B rating is the only sub-Saharan country that has issued a 30-year bond in the International Capital Market.

    “The other outstanding aspect of the 30-year Eurobond is its Pricing at 7.625 per cent which is lower than the coupon of 7.875 per cent on the $1.5 billion 15-year Eurobond issued earlier in the year.

    “In terms of its specific benefits to Nigeria, it provides the appropriate funds for financing infrastructure which is typically long term while also reducing the refinancing risk of the debt stock.

    “It will also serve as a benchmark for local and foreign institutions which may need to raise long term dollar funds to invest in Nigeria under various Private Public Partnership (PPP) arrangements for infrastructure as well as privatisation.”

    She said the fresh borrowings from the International Capital Market will not anyway worsen the country’s debt burden.

    The DMO chief said: “I want to re-assure Nigerians that the government’s borrowings are pre-approved by the executive and legislative arms of government and are used to finance various activities of the government as appropriated.

    “These layers of approvals ensure that the borrowings are both necessary and scrutinised before the DMO embarks on actual borrowing.    The increasing focus by the current administration of using borrowed funds for infrastructural development is a step in the right direction.

    “As borrowing is deployed to infrastructure to promote economic growth, the benefits of job creation and increased production among benefits are good for all Nigerians.

    “Besides, the debate on debt burden should therefore shift to actively supporting the government to increase revenue to levels comparable to the sub-Saharan average of 17 per cent of GDP. The other part of the argument about debt becoming a burden is the issue of Nigeria’s revenue base which at six per cent of GDP is not only low but well below that of peer countries.

    “Interestingly, government’s revenue is now being given proper attention. The measures to increase revenues are already yielding some results, and as this trajectory continues, the need for borrowing is expected to reduce while debt service will become an increasingly smaller portion of revenue.”

     

  • What Nigeria stands to gain from $3b Eurobond, by DMO chief

    What Nigeria stands to gain from $3b Eurobond, by DMO chief

    •DG says offer oversubscribed by 400 per cent

    The Federal Government plans to use the proceeds of the $3 billion Eurobond Offer it issued in two tranches of $1.5 billion for 15 years and $1.5 billion for 30 years to refinane domestic debts.  The offer, issued through the Debt Management Office (DMO) was oversubscribed by 400 per cent. In this report by COLLINS NWEZE, the DMO Director-General, Ms. Patience Oniha, explains the government’s debt management strategy and the envisaged impact of the offer on the economy. THERE were high expectations within the International Capital Market (ICM) when the Federal Government announced plans to raise $5.5 billion with the backing of the Debt Management Office (DMO).

    In line with the government’s debt management strategy, the $5.5 billion has two components. The first – $2.5 billion to part-finance the 2017 Appropriation Act deficit and $3 billion Eurobond to be borrowed from external sources and proceeds targeted at repaying maturing domestic debt obligations.

    So, when the $3 billion Eurobond offer eventually came and was oversubscribed by 400 per cent, the DMO Director-General, Ms. Patience Oniha attributed the success to foreign investors’ appetite for Federal Government’s instruments. The DMO chief, who oversaw the successful issuance of the country’s first Sovereign Sukuk of N100 billion, also gave further details.

    On plans to raise $5.5 billion from the international financial markets, Ms. Oniha explained the federal government’s strategy.

    She said: “The DMO had for several years raised funds for the government largely in the domestic market through FGN Bonds and Nigerian Treasury Bills, and to a limited extent, from external sources mainly the multilaterals.

    “While this had a beneficial effect of developing the domestic debt capital market, the government became the dominant issuer to the extent that it has been regularly accused of crowding out the private sector.

    “The outcome was obviously not intentional, but to remedy the situation. The DMO deemed it fit to shift some of the borrowing activities to the international financial markets. This is also in line with its debt management strategy of achieving a portfolio mix of 60 per cent domestic and 40 per cent external.

    “Through the strategy, the share of domestic debt has been brought down from over 85 per cent to 77 per cent as at September this year.”

    Giving insights into the components the DMO director0general said: “The $5.5 billion is made up of two components, the first of which is $2.5 billion to part-finance the deficit in the 2017 Appropriation Act. The 2017 Appropriation Act included new borrowings of N1.254 trillion from the domestic market and N1.068 trillion equivalent of about $3 billion from external sources.

    “As at October 2017, only $300 million in the form of a Diaspora Bond had been raised leaving an unfunded balance of $3.2 billion. The other component of the $5.5 billion external capital raising is the $3 billion whose proceeds are to be used to repay some maturing domestic debt obligations.”

    Speaking on the benefits expected from borrowings, she said: “The DMO’s role in financing budget deficits  as provided in Annual Appropriation Acts, are to support  budget implementation and the attainment of the government’s economic targets. The $2.5 billion is specifically targeted at fulfilling the DMO’s mandate in this regard.

    “On the $3 billion for refinancing domestic debt, there are several benefits for the action. Firstly, it will reduce the crowding out effect that I earlier referred to thereby creating more space for other borrowers in the domestic market.

    “It also has the potential to bring about a reduction in lending rates which would make the cost of production of goods and services by the private sector cheaper and more price-competitive.

    “Another major benefit of raising external capital is a lower cost of borrowing to government and a moderation in debt service costs. As you know, United States (U.S.) dollar interest rates are much lower than naira interest rates. The $1.5 billion 10-year and $1.5 billion 30-year Eurobonds were issued at coupons of 6.5 per cent and 7.625 per cent per annum respectively.

    “These coupons are certainly much lower than the 15 per cent to 17 per cent that the government borrows at in the domestic market for shorter tenured funds. There is also the fact that the $3 billion is a direct accretion to Nigeria’s external reserves which are extremely useful for managing the naira exchange rate.”

    Ms. Oniha explained what accounted for the over-subscription of the Eurobonds by over $11 billion (about 400 per cent of the $3 billion that the government took) and her agency accepted less than the $5.5 billion approved by the National Assembly.

    Her words: “The demand of over $11 billion from international investors is a demonstration of their confidence in the policies and reform initiatives of President Muhammadu Buhari as well as the economic outlook of Nigeria.

    “Like those investors, we ourselves can attest to the economic improvements in Nigeria as demonstrated by higher external reserves, stable exchange rate, Gross Domestic Product (GDP) growth of 1.44 per cent in the third quarter of 2017 and improvement in the Ease of Doing Business.

    “Our intention was not to raise the $5.5 billion at once. Our first priority was to raise the $2.5 billion required for the 2017 budget while the $3 billion required for refinancing domestic debt will be in a phased manner.

    “Also, from a technical perspective, we still wanted to moderate the cost even in the International Capital Market by managing the supply of Nigeria’s Eurobonds in the market.”

    On the significance of the 30-year Eurobond being issued for the first time in the country, she said: “It is remarkable that international investors were willing to take a long term risk on Nigeria by buying the 30-year Eurobond. This feat is even more remarkable when we consider that South Africa which has a superior sovereign rating of BB- compared to Nigeria’s B+/B rating is the only sub-Saharan country that has issued a 30-year bond in the International Capital Market.

    “The other outstanding aspect of the 30-year Eurobond is its Pricing at 7.625 per cent which is lower than the coupon of 7.875 per cent on the $1.5 billion 15-year Eurobond issued earlier in the year.

    “In terms of its specific benefits to Nigeria, it provides the appropriate funds for financing infrastructure which is typically long term while also reducing the refinancing risk of the debt stock.

    “It will also serve as a benchmark for local and foreign institutions which may need to raise long term dollar funds to invest in Nigeria under various Private Public Partnership (PPP) arrangements for infrastructure as well as privatisation.”

    She said the fresh borrowings from the International Capital Market will not anyway worsen the country’s debt burden.

    The DMO chief said: “I want to re-assure Nigerians that the government’s borrowings are pre-approved by the executive and legislative arms of government and are used to finance various activities of the government as appropriated.

    “These layers of approvals ensure that the borrowings are both necessary and scrutinised before the DMO embarks on actual borrowing.    The increasing focus by the current administration of using borrowed funds for infrastructural development is a step in the right direction.

    “As borrowing is deployed to infrastructure to promote economic growth, the benefits of job creation and increased production among benefits are good for all Nigerians.

    “Besides, the debate on debt burden should therefore shift to actively supporting the government to increase revenue to levels comparable to the sub-Saharan average of 17 per cent of GDP. The other part of the argument about debt becoming a burden is the issue of Nigeria’s revenue base which at six per cent of GDP is not only low but well below that of peer countries.

    “Interestingly, government’s revenue is now being given proper attention. The measures to increase revenues are already yielding some results, and as this trajectory continues, the need for borrowing is expected to reduce while debt service will become an increasingly smaller portion of revenue.”

     

  • Ex-EFCC chief: creation of special courts has vindicated me

    Ex-EFCC chief: creation of special courts has vindicated me

    Former Chairman of Economic and Financial Crimes Commission (EFCC) Mrs. Farida Waziri has lauded Chief Justice of Nigeria (CJN) Walter Onnoghen’s initiatives aimed at strengthening the war against corruption.

    Fielding questions at an event in Lagos at the weekend, Mrs. Waziri said she was happy with the CJN for setting up special courts to handle corruption cases, stressing that “this bold move has indeed vindicated me on the crusade I started for the establishment of specialised or special courts as EFCC chairman some eight years ago.”

    According to her, “the CJN is a man after my heart because great minds think alike. Finally, a Daniel has come to judgement. I remember when I began the call for special courts, I went round the leadership of the judiciary and NBA then. I took advantage of every opportunity I had to justify the need for it but many of my adversaries kicked against it because they were desperate for my downfall. But I’m glad some of them have joined the crusade today.”

    On her reaction to the shocking revelations on the volume of sleaze under the immediate past administration of President Goodluck Jonathan, the former EFCC boss said: “I’m only glad that those things didn’t happen under my watch as EFCC Chairman because it would have been too traumatic for me. And that is why if I see President Jonathan today, I will kneel down to thank him for the honour done me by removing me as EFCC Chairman at the time he did.”

    Mrs Waziri went on: “My first strong premonition of what was ahead was when I began the probe of the monumental oil subsidy fraud going on then. I came to Lagos on a vital intelligence on the subsidy scam and as soon as I arrested a key culprit, I got a call from the Presidential Villa asking me to release the suspect, because, according to their words, ‘he is our person’, but I refused to let him off and days after I was removed from office.”

  • Chief withdraws from Olubadan chieftaincy law review case

    Senator Lekan Balogun, one of the two Ibadan high chiefs who sued Oyo State Governor Abiola Ajimobi for reviewing the 1957 Olubadan Chieftaincy Declaration laws has withdrawn from the case.

    Former Governor Rashidi Ladoja and Balogun sued Ajimobi to stop the review of the laws.

    Yesterday, Balogun explained that he joined Ladoja to challenge Ajimobi’s actions  in court because of what he called “communication gap”.

    Balogun is the Otun Olubadan, was among high chiefs (excluding Ladoja) who accompanied the Olubadan of Ibadan land, Oba Saliu Adetunji, to visit Ajimobi yesterday when they endorsed the governor’s  move to review the Olubadan Chieftaincy Declaration laws.

    The governor had, on May 19, inaugurated a seven-man judicial commission of inquiry, headed by a retired High Court judge, Justice Akintunde Boade, to review the existing chieftaincy declaration and other related chieftaincies in Ibadanland.

    High Chief Lekan Balogun who was silent on the stand of his counterpart (High Chief Ladoja) said the exercise was aimed at modernizing the methods of ascension to the Olubadan throne.

    Balogun said: “Change is the only constant thing in life. There is nothing that is above change. All the furore which had resulted from government’s move was due to communication gap but that has been resolved now.

    “Life is dialectical; things must be changing and we must all be growing with it. The government is quite right to have set up machinery to look into the law and see how it can be made better.

    “We believe it is a welcome development, especially with the kind of governor we have who is keenly interested in the growth and development of Ibadan land.”

    The high chief said that the benefits inherent in the review were many, noting that the Olubadan would henceforth enjoy the company of beaded crown chiefs whenever he had any outing.

    This, he said, would raise the status of Ibadan as one of the most important cities in Yoruba land.

    He added: “The benefits to be derived from the review are enormous. Even if we don’t want to pre-empt the future, we will wait till things are resolved fundamentally. But, we know that Olubadan will no longer be moving alone any longer.

    “Of course, there will be high chiefs with the nomenclature of Obas, the Olubadan won’t be on his own anymore. When royal majesties (in other cities) go out, they are always in company with beaded crown Obas.”

    The Olubadan of Ibadanland, Oba Saliu Adetunji, while speaking at the end of the meeting held with the governor at the Governor’s Office, said he and all his chiefs were in full support of the exercise, saying it would bring development to the ancient city.

    Olubadan said: “Our visit (to the governor) today, as you can see, is to put paid to the rumours and misgivings about the review of the Olubadan Chieftaincy declaration.

    “We have come to show our sincere support to the governor and to let him know that we are on the same page with him as the review is for the progress of Ibadan and its people.”

    Other members of the Olubadan-in-Council at the meeting were the Otun-Balogun, High Chief Olufemi Olaifa; Ashipa Olubadan, High Chief Eddy Oyewole; Osi Balogun, High Chief Tajudeen Ajibola; and Ekaarun Olubadan, High Chief Amidu Ajibade,.

    Others included, Ashipa Balogun Olubadan, High Chief Lateef Gbadamosi; Ekaarun Balogun, High Chief Kola Adegbola; and Ekerin Olubadan, High Chief Abiodun Kola-Daisi.

     

  • FRSC chief advises motorists on safety

    FRSC chief advises motorists on safety

    ‘Despite these efforts, many drivers, commuters, and others still claim they were not aware of certain traffic laws when they were arrested or prosecuted’ 

    The Badagry Unit Commander of the Federal Road Safety Corps (FRSC) Fatai Adesina Bakare has said car crashes on Nigerian roads would be drastically minimised if road users become passionate about safety measures instead of developing fears of arrests by safety officials.

    He noted that many road users nurse the fear of being arrested by traffic officials instead of developing the desire to master and obey traffic rules and regulations.

    The Unit Commander spoke while briefing reporters on the challenges in his jurisdiction.

    He said road users only behave well when they sight checkpoints, adding that there is need for them to cultivate the virtue of being good road users.

    As road users, it is expected that they obey the rules and regulations. Every road user should be disciplined, careful and considerate to others to ensure safer roads, avoid road crashes, arrest and prosecution.

    He said the Badagry Expressway is one of the roads that link Nigeria with other African countries, resulting in human and vehicular movements that create traffic snarl.

    Other challenges he highlighted were over speeding and driving rickety vehicles on the highway by smugglers, impatience and disobedience to traffic rules.

    To end this ugly trend, Bakare said he has deployed personnel to strategic points across the community to ensure free flow of traffic and to enforce traffic rules. He said the Command had always organised workshops and public enlightenment on the importance of obeying traffic rules in markets, schools, motor parks/garages and religious houses, among others.

    He regretted that despite these efforts, many drivers, commuters, and others still claim they were not aware of certain traffic laws when they were arrested or prosecuted.

    The Commander praised the Corps Marshal Boboye Oyeyemi for providing more tools for the Command in response to their requests. He requested for some operational vehicles such as patrol vans, ambulances and tow trucks from the management or individuals who are passionate about safety on our roads.

    He praised Customs officers for giving his men backups any time they were on patrol and to the Akran of Badagry, Aholu Menu-Toyi I, for his leadership role and passion for safer roads.

    He also praised some fleet owners and operators who have installed speed limiters on their vehicles. He appealed to those who are yet to do so to install the device to avoid arrest.

    Commander Bakare appealed to motorists to ensure that their vehicles have good wipers that would enable them to see clearly when it rains.

    He spoke on the need to have good tyres, saying the good ones would grip well whenever the brakes were applied.

    He said traffic pointers and headlights were also important and, therefore should be in good condition.

    FRSC chief said motorists plying the roads during the rains without good wipers and tyres were endangering their lives and those of other road users.

    He advised motorists to stop when they felt that they could not move well due to heavy rains.

    He condemned a situation where parents allowed their under aged children to drive, believing that they were making them comfortable.

  • Okoh takes over as BPE chief

    Okoh takes over as BPE chief

    The new Director-General (DG) of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, has assumed duties with a pledge to ensure that privatised enterprises service Nigerians well.

    In a statement by the Bureau’s Head, Public Communications, Alex Erons Okoh, the DG noted that the handover held at a brief ceremony attended by the management team of the BPE at his conference room.

    According to Okoh, the new helmsman urged the workers to be dedicated to duty to achieve the desired goal. The BPE chief said his administration would work to sustain the positive image of the Bureau and change the negative perception held by some  about the BPE.

    Okoh promised to step up the bureau’s post-privatisation monitoring to ensure that owners of privatised enterprises live up to the deals they signed with the Bureau so that Nigerians could derive maximum benefits from the privatised enterprises.

    He thanked the former acting Director-General of the Bureau, Dr. Vincent Onome Akpotaire, for piloting the affairs of the Bureau in the last 14 months and called for synergy during the transition.

    Akpotaire said given his background as a seasoned administrator, the management and staff of the Bureau were confident that he would succeed in his new assignment and give the Bureau a new lease of life.

    On their part, members of the management team pledged to cooperate with the new DG to take the Bureau to greater heights.

    They later conducted him round the offices where he familiarised with the workers.

    Before his appointment, Okoh was the Managing Partner of Ashford & McGuire Consulting Limited, and a member of the Presidential Economic Advisory Council. He has 32 years experience, 22 of which were in  banking, where his responsibilities involved general management, leadership and organisational development.

    He was the Managing Director/Chief Executive Officer (CEO) of NNB International Bank Plc from 2001 to 2006 where he took the bank from a comatose state to a position of enhanced value for stakeholders.

    He studied Sociology at the University of Benin and holds a Master’s in Banking & Finance from the University of Ibadan. Also a graduate of Harvard Business School’s Advanced Management Programme, he has acquired international working exposure through programmes with Citibank New York, Fidelity Bank London, Swiss Banking Corporation, Zurich and Grindlays Bank, Zimbabwe. He worked for Nigeria International Bank Limited (Citibank) and United Bank for Africa Plc.

  • ‘It’s our turn to produce council chief’

    ‘It’s our turn to produce council chief’

    Chieftains of the All Progressives Congress (APC) in Ajegunle have resolved to put an end to monopoly of power by the people of Olodi by ensuring that the next chairman of Ajeromi Local Government, Lagos State, emerges from their area.

    The aggrieved members of the party visited the Lagos office of The Nation to present their case recently. Their spokesman, Mr Yunusa Olaosegba explained that Ajeromi Local Government is made up of Ajegunle and Olodi communities. He said for over 40 years, the Olodi axis has dominated political power by  producing local government chairmen, members of House of Assembly and House of Representatives to the detriment of Ajegunle community.

    To prove their case, Olaosegba  gave the names of those that held positions since 1979, all of them from Olodi axis. They are Chief Dele Fayemi, House of Representatives (1979-1983); Hon Japhet Ogunyemi, member, Lagos State House of Assembly (1979-1983); Hon Toyin Bolarinwa James, member House of Representatives (1999-2003) and Hon. Adesina Ogunkoya, member, House of Assembly (1999-2015).

    Others are Hon. Tajudeen Ajasa Oluwa, Council Chairman (1991-1993); Prince Rabiu Adio Oluwa, Council Chairman (2000-2007); Hon Kamaldeen Bayewu, Council Chairman (2008-2014)and the current Council Chairman, Mrs Danmole Fehintola Akaba.

    “We have met with the APC Senatorial Leader, Chief Rabiu Oluwa on the continued marginalisation of Ajegunle and the need to reverse the trend by conceding the party’s chairmanship candidate to us. Ajegunle deserves better treatment. It has the number of votes in the local government. Whenever there is a problem, it is Ajegunle votes that come to the rescue.

    “We have resolved to present Samshideen Arogundade, a talented young man who has empowered many youths in the community and ameliorated water problems of the people through sinking of boreholes. He has been in the struggle for the chairmanship position in the past five years.”

    Mr Bright Obaduemu, a lawyer,  corroborated Olaosegba’s views. He said the marginalisation of Ajegunle was very obvious. The fall out, he said, was the denial of infrastructural development such as good roads, potable water, drainage and waste disposal facilities, among others.

    Obaduemu, who said he was born and brought up in Ajegunle, claimed that there is no street  in Olodi that has not been tarred; they also dominate infrastructural development as if Ajegunle was not part of Ajeromi Local Government Area. This discrimination must stop, he said.

    He said: “Ajegunle is not lacking qualified candidates to hold political offices but they are not given the opportunity to get there. We have plethora of vibrant youths that are competent to be council chairman but we have settled for Arogundade because of his antecedents.

    “I have the privilege of relating with Samshideen Arogundade; he has demonstrated penchant  for philanthropy; he takes youths of Ajegunle abroad for education empowerment in United Arab Emirate (U.A.E.). He has a registered foundation dedicated to the development of the youth and to assist the orphans, elderly and physically-challenged people. His respect for elders stands him out among the youth.

    “He‘s ably armed with ideas; he has been on ground; his international exposure will enhance the development of Ajegunle”.

    A representative of Arewa community in Ajegunle, Alhaji Mohammed Bashir Yusuf appealed to the leadership of the APC in Lagos State to prevail on the  APC leaders in Ajeromi Local Government Area “to  please allow Ajegunle to present chairmanship candidate”.

    Yusuf said conceding the office to Ajegunle will create a sense of belonging and as well ensure equity, fairness and justice.

    He said the people of Ajegunle are very loyal to the APC. “We have never disappointed the party when it comes to election; we want the party to compensate us this time around by conceding council chairmanship position to Ajegunle,” he stated.

    For Mr Nelson Ibebunjo, Ajegunle will develop if the people of the community are allowed to hold political offices.  Ajegunle is a slum. Arogundade has what it takes to develop it. For five years now, we have been struggling for chairmanship position. We are appealing to the APC  national leader, Asiwaju Bola Ahmed Tinubu to come to our rescue.

    The women representative, Mrs Blessing Eze said women in Ajegunle have endorsed Arogundade’s aspiration for the chairmanship position. “All women stand with him;  we believe there will be development in Ajegunle if he becomes Chairman of Ajeromi Local Government Area”, she said.

  • Council chief to embark on aggressive revenue drive

    The newly sworn-in-caretaker, Chairperson for Okitipupa Local Government Area (LGA), Mrs Morenike Alaka, has promised to embark on aggressive and legitimate revenue drive to put the council on a sound footing.

    She said this in Okitipupa while speaking with journalists.

    According to her, “Now that the allocation from the Federal Government has dwindled owing to the recession in the country, our major task is to embark on legitimate revenue drive just as Governor, Oluwarotimi Akeredolu has implored us to make positive impart in the lives of our people at the grassroots.”

    She said there is enough abundant natural and human resources to develop the council.

    “The natural resources are the fertile land which can be used for agriculture and the large chunk of the youth is the human resources who would work on the farmland to generate revenue for government,” she said.

  • Bank directors owe N740b, says NDIC chief

    Bank directors owe N740b, says NDIC chief

    Bank directors owe commercial banks N740 billion, representing 40 per cent of N18.3 trillion non-performing loans in the banking industry, NDIC Managing Director/Chief Executive Umaru Ibrahim has said.

    He said the debt constituted insider/directors related loans and was far above regulatory threshold of five per cent for commercial banks.

    The NDIC boss raised alarm over what it called rising tide of Non Performing Loans in Nigeria’s banking industry. He spoke when members of the House of Representatives Committee on Insurance and Actuarial Matters visited the Corporation as part of its oversight function in Abuja.

    The NDIC boss stressed that “while the banking industry indicated strong fundamentals in regulatory assessment and rating, regulators were concerned about the rising tide of non performing loans (NPLs) in the banking system.

    He informed the legislators that as at December 2016, the 25 Deposit Money Banks (DMBs) had total loans portfolio of N18.53 trillion out of which N1.85 trillion or 10 per cent were NPLs.

    In other banking subsectors like the microfinance banks, (MFBs), Ibrahim noted that “there were 978 MFBs in existence as at December, 2016 with total deposits liabilities of N158 billion and total loans and advances amounting to N195 billion out of which N87.75 billion or 45 per cent were NPLs where N68.25 billion or 35 per cent constituted Insider related/Directors loans.”

    The NPLs he said “indicated a classic case of over-lending, accumulated interests charges and poor corporate governance.”

    By extension, the existing 42 primary mortgage banks (PMBs) Ibrahim said “had total deposits liabilities of N69 billion but with total loans portfolio of N94 billion, which indicated another case of over-lending, accumulated interests, poor corporate governance and high ratio of NPLs which stood at N51.7 billion or 55 per cent out of which N42.3 billion or 45 per cent were Insider related/Directors loans.”

    The resultant effects of this negative trend the NDIC boss warned “would be poor earnings and erosion of shareholders fund.

    The NDIC boss observed that this development had posed serious issues bordering on corporate governance which were capable of eroding public confidence in the banking system.

    He advocated for strict compliance with the existing code of ethics for bank directors and a review of the existing laws and regulations to proffer stiffer sanctions for Directors who exploit their positions and default in the payment of their credit facilities while still occupying directorship positions in the banks.

    He called the attention of the legislators to the delay in the approval of 2016 budget which he said “contributed to the modest execution of the budget.

    He restated the Corporations commitment to performance based budgeting system (PBBS) the essence of which is to ensure efficient allocation of resources to enable the Corporation achieve its strategic mandate.

  • Our plans for local content devt, by NCDMB chief

    Our plans for local content devt, by NCDMB chief

    Nigerian Content Development and Monitoring Board (NCDMB) Executive Secretary Simbi Wabote, an engineer, who has just marked 100 days in office, unveils the Board’s plan to maximise  local content development. EMEKA UGWUANYI reports.

    Simbi Wabote was appointed  the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) on September 26, 2016 by President Muhammadu Buhari, after spending 26 years in the Shell Group of companies in Nigeria and abroad. He held various positions in engineering services, contracting & procurement, local content management, external and community affairs.

    He said he was committed to running an open and transparent organisation, and to be upfront with information on the activities, programmes and challenges of the NCDMB.

    “I am determined to remove opaqueness, rumours and insinuations often associated with oil and gas establishments,” he said.

    He noted that with the crash in crude oil prices since 2014, there have been very few activities as operators and the government were finding it difficult to fund new projects while existing contracts were being renegotiated downwards. “But without ongoing and new projects, there hardly can be Nigerian Content. These challenges notwithstanding, I took on this job with the conviction that the low-price regime presents the Board and the entire industry with a wonderful opportunity to find ways of doing things differently and better,” he said.

     

    Achievements and future plans

    Baseline study – the Board with the support of its consultants, he said, has started conducting a baseline study on Nigerian Content implementation, to review how well its act have been implemented in the past six years. “It is to review where we made progress and where we need to up the game. Also we have developed a Community Content guideline, which provides pragmatic steps for incorporating and engaging community contractors as a critical delivery point for Nigerian content development,” he said.

    “This guideline,” he continued: “was borne out of the necessity to boost peace and security in the Niger-Delta and address the lingering squabbles between host communities and service companies over participation in oil and gas activities.”

    Sections 25, 26, 27 and 28 (1) & (2) of the Nigerian Content Act provides for the operator to maintain a level of presence in communities where projects are located. The sections also mandate participation of community entrepreneurs in activities of operations throughout projects life cycle.

    President Muhammadu Buhari launched the Petroleum Industry Roadmap on October 27, 2016 to revitalise the oil and gas industry. “A key component of the Roadmap is to “deploy 30 per cent of business opportunities from operating companies to communities. The Board’s Community Content Guideline sets out strategies to realise this target. Our Capacity Development Initiatives are in aligment with Roadmap,” he stated.

     

    Contracting Cycle

    He said: “On resumption, I took on the lingering issue of protracted contracting cycle in the industry. With support from my team we have put in place internal performance measures to fast-track the contract processing time from NCDMB’s end. We have committed to specific timelines for review of Nigerian Content plans, technical & commercial evaluation and issuance of Nigerian Content certificates. It is my believe that other agencies involved in the contracting cycle are working on their internal processes so that we can collectively work together to reduce the protracted contracting cycle, which has been identified as the main cause of the high cost per barrel of Nigerian crude in comparison to other OPEC countries.”

    Others measures according to him, include fast-tracking implementation of the Nigerian Oil and Gas Parks Scheme (NOGAPS), Polaku Pipemill and accelerated disbursement of the Nigerian Content Development Fund (NCDF), which is nearly $700 million to deserving oil and gas service companies as well as the reconstitution of the joint committee with the Nigerian Maritime Administration and Safety Agency (NIMASA) on local content development in shipbuilding.

    “The Board also has concluded HR process review and institute performance driven work, set clear targets such as develop 5-year strategic road map,  developing Oil and Gas Parks in Ogbia, Bayelsa State; Oguta in Imo State; Okoyong in Cross Rivers State and Ikwe-Odio in Akwa Ibom. Each of these five parks is expected to create about 2,000 direct and indirect jobs and link community entrepreneurs to the oil and gas supply chain. The Board will also hold Nigerian Content Opportunities Fair, Research & Development Fair, and expand compliance oversight to midstream and downstream,” he said.