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Tag: confidence

  • New forex window triggers market confidence

    New forex window triggers market confidence

    foreign investors who exited Nigeria in the wake of the crash in crude oil prices and the subsequent currency crisis may be on their way back. The Investors’/Exporters’ Forex (FX) Window introduced by the Central Bank of Nigeria (CBN) is the attraction. The window, which offers investors the opportunity to sell dollars at rates of their choice, provided they find willing buyers, is gradually restoring confidence to the forex market. Last week’s rally in equities market and stability enjoyed by the naira in the official and parallel markets have been attributed to rising investors’ confidence in the market over the new window, writes COLLINS NWEZE.

    For two years, the Nigerian equities market and the foreign exchange (forex) market were in shambles.  The All Share Index (ALSI) was continuously shrinking and the naira weakened against other currencies, especially the dollar.

    But on April 24, the Central Bank of Nigeria (CBN) opened a special forex window for investors and exporters. The “Investors’ & Exporters’ FX Window”, CBN’s Director in charge of Financial Markets Alvan Ikoku said, would boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions by all parties.

    In this market, the FMDQ OTC Securities Exchange (FMDQ) gives a price quote based on its bi-daily survey of market rates. Many investors have welcomed the new window but not a few are concerned about the rate and the degree to which it will be allowed to truly float. So far, the feedback from the window has been positive for the market. In its first week, the rate traded between N374-380/$. The window closed at N382 on May 4.

    Group Head, Global Markets at Access Bank Plc, Dapo Olagunju, said the new window allows investors to sell dollars at any rate they choose and is expected to help bring investors’ confidence into the market.

    He said: “Investors/Exporters FX Window helps participants execute deals as based on their own market agreement. Today, both the dollar demand and supply sides are beginning to talk to each other and there is likely to be rate convergence soon,” he said.

    Continuing, he said that previously, the CBN had over $4 billion forex backlog, and found it difficult to settle ticket remittances of airlines. “Today, we are seeing customers buying Business Travel Allowances and Personal Travel Allowances with ease. It has been a difficult time for banks. We also see a regulator that is ready to sanction any bank that violates its set rules,” he said at a forex seminar organised by Access Bank in Lagos.

    Speaking on exchange rate stability, the Managing Director of Renaissance Capital (RenCap) Nigeria, Temi Popoola, described as inconsequential the naira’s exchange rate against the dollar. He said coming in and exiting without encumbrances remained the most important thing to investors.  “The argument should not be whether the naira is exchanged at N300 or N450 to the dollar. It should be whether investors will be able to come in and go out of the market at will”, he said.

     

    Forex interventions to continue

    Despite the lull in forex trading activities at the close of last week, the CBN has assured of its continued intervention in the inter-bank market.

    A reliable source at the CBN said that the bank was determined to ensure that the gains made by it in recent times, with regards to the stability of the exchange rate, are not eroded.

    Disclosing that the apex bank did not make major interventions all through the week ending May 12 because there was a surfeit of forex in the system, the source maintained the apex bank would continue to make necessary interventions to ensure the stability of the naira.

    The source further disclosed that the windows established by the CBN for Small and Medium Enterprises (SMEs) as well as for investors and exporters were yielding the desired results by providing access to forex and easing pressure on the market.

    Speaking on the issue, CBN’s Acting Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.

    The CBN had since February been involved in massive interventions in all segments of the interbank market to ensure forex liquidity and availability.

    Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the Investors’/Exporters’ Forex (FX) Window is winning the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets last week, leading to impressive appreciation in the equities market and stabilising the naira.

    He explained that renewed investor participation in equities saw the banking, consumer goods, oil & gas, industrial goods and insurance sector indices, gaining 22.3 per cent, 16.7 per cent, 8.4 per cent, 4.1 per cent and 2.7 per cent respectively since the launch of the I&E window.

    The volatility in the forex market has also subsided. The Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) rates as published by FMDQ stood at N378.87/$1 at the beginning of last week while slightly appreciating by mid-week.

    However, a reversal of trend saw the rates inching back to N378.87/$1, indicating a flattish week-on-week close, but the CBN’s daily forex interventions continued to keep the rates stable at the official market. The rates opened the week at N304.70/$1 and appreciated to N304.60/$1 at the close of the week. At the parallel market, rates opened the week at N390/$1 and remained unchanged on four to five trading days, save for Friday, when rates appreciated to N386/$1.

    The ALSI trended on a 10-day bullish streak, due to the improvements in the forex market. Within the last two years, the exit of foreign portfolio investors from the equities market, given the perceived mispricing of the domestic currency, accounted for the drag witnessed in the equities market.

    The benchmark index has recorded a decline on only two trading days since the launch of the window on April 24, while appreciating 11.9 per cent post launch with year-to-date return currently at +4.9 per cent.

    “Our interactions with FX traders and Afrinvest equity brokerage desk suggest that the launch of the I&E FX window on the 21st of April, 2017 was the major “game changer” as the equities market has witnessed improved participation from foreign portfolio investors, especially last week,” the investment and research firm said in an emailed report.

    It hinged the current bullish trend in the market on foreign investors’ perception of activities within the forex market, particularly the  sustainability of the newly launched I&E FX window.

    “If managed appropriately, we expect to see influx of foreign investors which could potentially spark massive rallies in the market given the comparably cheaper valuation of Nigerian equities,” it said.

    The report also said that in the last two years, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn has fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.

    The condition also lingered into this year as investors dumped equities for less risky investment opportunities in the fixed income market, especially given the current relatively high yield environment.

    “Accordingly, the negative performance of the Nigerian Bourse in 2016 (-16.9 per cent) was sustained as the year-to-date return of the benchmark index deteriorated as low as -8.5 per cent in March before marginal improvements were subsequently recorded,” it said.

    The Afrinvest report also linked the market rally to recent improvements in global oil prices above the $45/barrel benchmark, improvement in domestic production, currently above two mbpd, fiscal responsiveness – including the launch of the Economic Recovery and Growth Plan (ERGP) by the Fedweral Government.

    Other reasons also include the successful issuance of $1.5 billion Eurobond, passage of 2017 budget – as well as recent positive readings in manufacturing PMI, which suggest possible rebound in economic activities from second quarter of this year.

    The report projected that this week:  “a similar performance as the I&E FX window has brought about a new price discovery in the forex market with rates on all segments of the market starting to show a bit of convergence. Also, at the official market we expect the CBN to continue to boost market liquidity through its forex interventions while keeping rates at this segment stable”.

    The benchmark indices at the Nigerian stock market showed average week-on-week gain of 7.46 per cent, equivalent to a net capital gain of N677 billion within the five trading sessions last week. The performance of the Nigerian equities outpaced returns in the global advanced and emerging markets as well as key African markets.

    The Nigerian Stock Exchange (NSE) ALSI gained 8.74 per cent during the review period to close at 27,546.68 on May 10. Total market capitalisation closed at N9.52 trillion on May 3 – a 8.55 per cent gain from N8.77 trillion on April 19.

     

    How the new window works

    According to the CBN, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira. The CBN said, it will be a market participant at the window to promote liquidity and professional market conduct.

    As part of the operational requirements of the window, the CBN said the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties.

    The regulator also reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorized dealers shall be reported to the CBN on a daily basis.

    The approved transactions covered under the new window included invisible transactions, such as loan repayments; loan interest payments; dividends/income remittances; capital repatriation; management service fees and consultancy fees. Also on the list are: software subscription fees; technology transfer agreements; personal home remittances; bills for collection and any other trade-related payment obligations at the instance of the customer. Other eligible transactions, like ‘miscellaneous payments’ detailed under Memorandum 15 of the CBN foreign exchange manual, were covered by the new window.

    Ikoku said that transactions and bills for collection were eligible to purchase foreign currency sourced from the CBN forex window limited to secondary market intervention sales, wholesale (spot and forwards) only.

     

    Other forex windows

    The CBN has also opened a special forex window for SMEs. The window, which would allocate $20,000 per business per quarter, is to help the SMEs import “eligible finished and semi-finished items” needed for their businesses.

    The CBN said the bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.

    “The sum of $20,000 per SME customer per quarter can be done through telegraphic transfer, subject to completion of Form ‘M’ supported with pro forma Invoice and the importer’s Bank Verification Number (BVN),” it said.

    He added that all the processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.

    The information posted on the CBN website defines SMEs as enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.

  • Group passes confidence vote on Okorocha

    Group passes confidence vote on Okorocha

    As critics slam the leadership style of Imo State Governor Rochas Okorocha, a group Ndi Imo in Lagos whose members are indigenous to the state, has described such criticisms as mere distractions from the opposition and those who have no access to the state’s treasury to pilfer as was the case in the past.

    Rising from their monthly meeting held at the Lagos State Igbo Community Centre, Okota Lagos, members of the group noted that critics of the policies and programmes of the governor were ignorant of the impressive achievements recorded by the All Progressives Congress (APC) administration in Imo State.

    “Within few years in office, Governor Okorocha has achieved laudable, dramatic, and exhilarating changes at all levels of government, in all strata of the state and in every nook and cranny of society. The Rochas’ fame for good governance is applauded by an anonymous many even beyond his state. He has, in a positive manner, touched the lives of the common man to the chagrin of his opponents,” they said.

    The group further noted that Rochas is the man the people wanted, adding that he is fulfilling his campaign promises to the people.

    “Governor Okorocha is a man who wants to enhance the welfare of the downtrodden. Every technocrat in Imo  State had maintained that free and compulsory education is not possible but he has proved them wrong by providing free and compulsory education for the people,” they said.

    On infrastructural development, Ndi Imo in Lagos maintained that Okorocha has performed wonderfully well.

    “Consider the number of roads being opened in just few years. It’s incredible and unheard of in any state in Nigeria. People are asking where the money is coming from.  Imo State has enough money to do whatever it wants to do. The unfortunate thing is that previous administrations had been siphoning the money meant for development and taking care of the welfare of the so-called godfathers who take enormous share of the state’s funds every month.

    “Rochas has no godfathers except the Almighty God. He is really God-send because he is doing things the way the people want them done,” they said.

    The group regretted that unnecessary criticisms in Imo State against all serving and former governors of Imo State was as a result of business men in the state who indulge in partisan politics.

    In other states, the group said, business men do not indulge in partisan politics; rather they sponsor those who are interested in politics. They also stated that “Rochas Okorocha has done so well more than any other previous governor of the state which some of us have witnessed when we had visited Imo State in various times.”

    On issues of pensioners and workers owed months of salaries, the group maintained that “the impression being created that pensioners and workers were not paid was  erroneous based on our interactions with some of the workers. Pensioners have been paid and are happy for having substantial amount of money to start up tangible businesses.”

    Explaining how Governor Okorocha struck a positive deal with pensioners, the Special Assistant to Imo State Governor on Liaison/Liaison Officer Imo State Liaison Office, Lagos, Nze Steve Asimobi said: “Having considered the huge amount of money owed to pensioners by previous administrations, Governor Okorocha summoned the pensioners for a meeting where he discussed with them the possibility of giving them 40 per cent of the backlog of pension arrears owed them by previous administrations while they continue to receive their current monthly pension every month. They agreed, not out of coercion but after many meetings even at ward levels of the concerned pensioners.”

    Continuing, the Liaison Officer said: “Governor Okorocha is making giant strides to enhance the economy of the state, noting that some moribund industries have been revitalised. He also revealed that Imo Airport has been approved as an international cargo airport.

    “In the circumstances, Governor Okorocha, in his determination to ameliorate the sufferings of Southeast traders, has acquired five cargo aircraft to enable them to bring their goods straight to Imo State instead of going through other states.

    “Imo Air, he said, will be operated by Dana Air.

    “Again, the dilapidated Imo Concorde Hotel has been revived and it’s fully functional.”

    Along Aba Road, he said, there are many industries that are springing up which will provide employment opportunities for Imo people.

    The group also noted that it was not correct that Governor Okorocha had sold off most of the parastastals in the state, even as they said some of the parastatals such as Imo Transport Corporation and Imo State Water Corporation were concessioned to some agencies for efficiency and they are working hard to make them efficient, even as they are paying members of their staff.

    On security, Ndi Imo in Lagos noted that Imo people can now sleep with their two eyes closed, in contradistinction to what used to be. They revealed that Governor Okorocha had put in place serious security plans that made criminals to flee the state.

    They stated that “there are still few isolated cases of kidnap and robbery, Imo Security Network has been able to checkmate the activities of criminals. Robbery and other related vices have drastically reduced.”

    The group advised Ndi Imo back home to draw a line between politicking and governance. Mingling politics and governance, they said,  should be consigned to the trash can of history in 2019.

    On the mandate for every local government to construct 15 kilometre roads, the group noted that: “If all the 27 local governments construct 15 kilometre roads, it will ensure rapid development.

    However, while one may admit that some roads in the grassroots lack quality or standards due to lack of commitment to job specifications on the part of some contractors, it is incontrovertible that no government in Imo State has opened more roads than Okorocha’s administration.

  • Whistle-blowing: Building confidence, accountability in public spending

    For the corrupt and those with itchy hands for enriching themselves with public funds, it is no longer business as usual.

    The story of the country is changing from one where the system knowingly rewards unethical behavior and punishes ethical practices to where there is no hiding place for corrupt individuals or companies, being they local or multinational firms.

    This change came after the Minister of Finance, Mrs Kemi Adeosun, initiated and began the implementation of the Federal Government-driven Whistle Blower Policy. Under her leadership, the Federal Government unveiled the Federal Ministry of Finance- Whistle, a secure, online portal through which information bordering on violation of financial regulations, mismanagement of public funds and assets, financial malpractice or fraud and theft that is deemed to be in the interest of the public can be disclosed.

    The whistle blowing policy, which came with rewards for the whistle blower, has recorded significant success in the last few months when its execution began. The objective is to broaden the attack on corruption by encouraging the general public to expose corrupt practices.

    The feedback so far is revolutionary as it is already broadening the attack on corruption by encouraging the general public to expose corrupt practices. The violations include, but are not limited to mismanagement or misappropriation of public funds and assets; financial malpractice or fraud; collecting/soliciting bribes; diversion of revenue; fraudulent and unapproved payments; and procurement fraud (notably, kickbacks and over-invoicing).

    The whistle-blower will get between 2.5 per cent (minimum) and five per cent (maximum) of the recovered loot, provided that “there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided.” Commenting on the domestic agenda to ensure significant reductions in ‘leakages’ of public funds, and improved efficiency in public expenditure, a source in the Presidency said:

    “The Federal Government is going after those who have stolen our hard-earned money. We have put in place a very successful whistle blower programme that is delivering results and allows those who report illicit activity to receive up to five per cent of any funds that we recover. We are also significantly improving our financial management controls to ensure that it is considerably more difficult for public funds to be diverted. We have to do more though.

    ” Just recently, $9.8 million cash was found in a secret bunker belonging to the former managing director of the National Nigerian Petroleum Corporation (NNPC), Andrew Yakubu. With this development, it seems that resources have been allegedly redistributed from the people into the pocket of one.

    The former aide turned whistle blower, who informed the authorities of the loot, argued that there are as many as three other bunkers – each with about the same amount of cash – that are yet to be discovered. Also, the Economic and Financial Crimes Commission stormed a residential building in the 7th Floor of a four-bedroom apartment at Osborne Towers located at 16, Osborne Road Ikoyi, Lagos, where a find of foreign currencies and naira notes to the tune of $43.4m, £27,800 and N23.2m was made.

    The EFCC announced on Facebook that they had received a whistleblower’s tip that someone had been moving bags in and out of the apartment. Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said in an emailed report that these stories are just a tip of the iceberg compared to the many other cases of corrupt and unethical practices that go on in this country and which are rewarded if you have the good and common chance of not getting caught.

    “A major challenge to ethical decision-making is cognitive bias. Most people pride themselves on their ‘ethical and moral’ views on life and business without factoring human bias that may contaminate ethical behaviour and practices and produce unintended consequences.

    Overconfidence is a very important factor to consider as we get caught up on internal traits and incentives such as ‘I’m honest’ or ‘I can never steal’ and do not factor in the fact that when push comes to shove, human beings are capable of committing acts that are not first nature to them,” Rewane said. He therefore praised the whistle blowing policy of the Federal Government, adding that it is paying off positively.

    He said that situational influences may skew ethical behaviour of people except there is ready punishment for defaulters. “For example, in government, a civil servant might be inclined towards unethical behaviour if everyone in his ministry is engaging in unethical practices. Undue influence from his bosses and peers might push him to go against his own ethical principles,” he said. Rewane said the key word here is trust.

    “I am less inclined to do business with someone in Rangpur Bangladesh who I’m not familiar with and might not easily have access to inspections and tests. The major force that propels me to incur the risk associated with international transactions such as this one is trust.

    What fosters trust is a solid ethical culture and framework irrespective of the location of the market and the product offerings in these markets,” he said. Explaining further, Rewane said: “If you give an average manager of a Small and Medium Enterprises (SME), who has be conditioned to the ‘Nigerian way’ of doing things, the decision between doing the right thing or ‘saving’ your business from undue attention from regulator, the latter is the go to option.

    Doing the right thing will go a long way in ensuring longevity of the business. However, it may come with certain consequences that might be painful to the business in the short term. It ensures that the manager is free from any practices that may be used against him or his company in the future”. Michael Obinna, a Lagos-based civil servant, also commended the Federal Government on the whistle blower policy, adding that it will help businesses and civil servants to build an ethically-aware culture of conducting business that ultimately fosters trust in the sector as a whole.

    He said that previously, the Nigerian system allows those elected to office and those in charge of serving the public to fail their most important stakeholders, the Nigerian population because of loopholes in public expenditure. He however, said that Adeosun is fixing these gaps and that the whistle blowing policy are keeping all public officials on their toes. According to him, whistleblowers are encouraged and offered protection from harassment or intimidation by their bosses or employers.

    “The hope is that more looted funds will be recovered through the encouragement of voluntary information about corrupt practices,” he said. He said the policy selling points include the possibility of increased accountability and transparency in the management of public funds. It is also expected to ensure that more funds would be recovered that could be deployed in financing Nigeria’s infrastructural deficit.

    The channels for reporting information and the type of information to be reported indicated that anyone with “authentic information about violation, misconduct, or improper activity which can impact negatively on the Nigerian people and government” should report it through SMS text message and email. In the final analysis, it is hoped that the more accountable the government becomes, the higher will be Nigeria’s ranking on the indicators of openness and ease of doing business.

    The ultimate goal is to develop a corruption-free society and attract more and more foreign investors.

    •Ewulu, a financial consultant, works with Lagos-based Angelstege Advisory Services Ltd

  • ‘Confidence in delivery services dips’

    • moov.com,ng  to rescue

    The founder and Country Manager, Moov Nigeria, Mr. Larry Chinekezi, has said customers’ confidence in delivery services has continued to wane due to dishonesty among some operators in the sector.
    Speaking ahead the launch of Moov.com.ng, a cargo bidding platform in Lagos, he said the deployment of innovative technology would solve all the problems confronting the sector.
    He said: “Today, most customers seem to have lost confidence in the delivery service, because whether you choose to use the transporters, courier company or person-to-person delivery, they all have issues and limitations, particularly with pilfering, dumping of mails or damages.
    “They come back telling the customers stories; therefore, the customer is the loser. In some occasions, people have missed annual general meetings, weddings and other functions just because the parcel conveying message to them was delivered late. Even during trade shows you see material arriving on the day the event is closing; such disappointment can be devastating. We tend to address this challenge with Moov.com.ng.
    “Secondly, the service providers are going to benefit from this platform. Apart from the registered courier companies that have offices, it is usually difficult to accommodate those young people who have trucks/cars and can deliver goods for people and make a living for themselves. There are also cases of driving using company trucks to do personal delivery. Every day, they take off from their houses, come back in the evening to tell stories of how VIO or LASTMA held them throughout the day. Moov.com.ng with its tracking device will help the companies track movement of their trucks real time, while the customers can also track the state of their goods with ease.”
    He said the solution would impact thousands of individual and corporate transportation organisations in the country and Africa as a whole.
    According to him, the solution will simplify the tedious freight brokerage activities, bringing in the dynamic aspect of ‘freight bidding software’, sometimes referred to as ‘online truck load boards’ or ‘freight load boards and help customers or cargo owners to select choice delivery company from a pool of professionals the platform will provide.
    Aside instituting sanity in the industry, it will also assist users, especially operators solve ‘Origin and Destination (O&D) complexities, as cargo shipments are usually one-way, with operators losing revenue along the line.
    Before now, O&D results in doubling the workload for cargo revenue management, since there is no return trip to count on, however, moov.com.ng will ensure the synchronisation of multiple touch points, including flights, trucks, regulatory/security checks, varying loading and handling requirements, and special services which must all be factored into cargo management to make correct decisions, meet customer agreements, and generate profits.
    “We are excited to announce the launch of Moov Nigeria, a purely Internet logistics service organisation to the general public.“The domain www.moov.com.ng connects shipping users to carefully verified vehicle owner-drivers or delivery companies who have the expertise and capability to pick up and deliver securely any parcel or cargo from the home or office to desired destinations throughout the 36 states of Nigeria.
    Mr. Chinekezi said the innovative platform tends to entrench the era of reliable delivery service, adding that lack of trust has been the bane of courier/logistics industry in the country.
    According to him, the platform- was developed as job creation tool that will also serve as a market place for connecting shippers to service providers such as ‘owner-drivers’ and courier operators.
    “Moov Nigeria provides the seamless system, through which the parcels and cargo are auctioned online to the delivery outfits, monitors the process of pickup and delivery, tracing and tracking, feedback to shippers and handles the eventual payment to drivers or delivery companies upon satisfactory delivery,” he said.
    Mr. Chinekezi added that through the innovative system, over 500 Moov agents will be setup across the country.
    “With very little setup cost to get started, each agent will operate as a business under Moov Nigeria and can develop their own branches also within and earn regular income through our activities”.
    He clarified that Moov Nigeria is a member of Moov Africa starting in five countries, Nigeria, Kenya, Ghana, Egypt and South Africa. “Through these countries we aim to connect Africa’s fledgling e-commerce and trading activities by providing effective and seamless logistics services through registered service providers”, he said.
    The promoters have over 40 years cognate logistics experience up to the highest corporate level and have rolled out the solution in Nigeria.

  • Remo Stars regaining confidence, says Mbaoma

    Remo Stars regaining confidence, says Mbaoma

    Victor Mbaoma believes Remo Stars are regaining their confidence after a difficult start to the season.

    The Sky Blue Stars welcome fellow relegation strugglers, Wikki Tourist to the Sagamu International Stadium in their next topflight encounter on Sunday.

    And Mbaoma is looking forward to building on the result of their last outing on their home ground when they face the Bauchi Elephants.

    “We aren’t looking down at our opponent but I can say here that we are gradually getting back the confidence needed to win games,” Mbaoma told Goal.

    “We may have struggled to record wins in the past but things have changed. We have now won some games and even picked up points on the road.

    “That’s a huge one for us. The biggest was the win against ABS in front of our home fans. That win has raised our confidence level, we shall be inspired by that win to go all out against Wikki Tourist on Sunday.

    “We are not in the good position on the league table and that means we can’t afford to make any mistake, neither should we in any way drop points.

    “We now have some real confidence going into matches with a positive mindset to pick up a win. So come Sunday,  we shall target a win and then take it up from there.”

  • MMM, evidence of no confidence in economy

    Their celebrations were notoriously short-lived. The streets of Banjul have gone quiet now and citizens of The Gambia, who had erupted in spontaneous jubilation three weeks ago when their despotic ruler was overrun in an election, have retreated into their shells in mournful silence. With Yahya Jammeh’s recant of his concession of defeat to real estate developer, Adama Barrow, the West African country is effectively staring into the abyss.

    Barrow is the Gambian president-in-waiting, while the global community prospects for ways to egg Jammeh out of power. The opposition candidate’s victory in the recent poll in that country makes his ultimate coronation assured, and has invariably drawn the terminal line on Jammeh’s 22-year authoritarian run in power. But Jammeh has lately doubled down on clinging to the reins and won’t let go easily.

    Indications at the weekend were that the Gambian crisis was approaching a head. Barrow was reported revving up to enact the country’s version of ‘Epetedo declaration,’ whereby he would unilaterally pronounce himself substantive president. Nigeria once travelled that troubled road with democracy hero and uninstalled winner of the June 12, 1993 presidential election, the late Chief Moshood Abiola; and it was a five-year odyssey punctuated with the martyrdom of Abiola and some others, plus the exile and imprisonment of many more through diktats by hardened military strongman, Gen. Sani Abacha. You could say the portents in The Gambia are indeed more dire, because Jammeh is notoriously loathsome of political challenge, disdainful of human rights and free expression, and hot fingered on gun triggers.

    It has been one long journey down democracy road for The Gambia, making the citizens exultant with the promise of a new dawn when Jammeh was handed a shock defeat in the country’s December 1 presidential election. By official scoreline, Barrow won with 263,515 votes to Jammeh’s 212,099 votes. “Having received 263,515 votes of the total votes cast in the election, I hereby declare Adama Barrow duly elected to serve as president of the Republic of Gambia,” Alieu Momarr Njie, chairman of the country’s Independent Electoral Commission had pronounced in Banjul, the capital, penultimate Friday.

    For a country where the recent election offered opportunity for the first change of leadership since a military coup led by Jammeh ousted pioneer president Dawda Jawara in 1994, and the first time that power would change hands by popular election since Independence from Britain in 1965, the news of Barrow’s victory had prompted thousands of Gambians to take to the streets of Banjul in celebration – some on foot and others riding in cars, trucks and on motorbikes – leaving soldiers cultured in Jammeh’s repressive ways palpably confused as they stood by. Many Gambians were reported to have stayed up all night, listening to radio and tallying the vote count by themselves as the figures were being announced at constituency levels. That way, they had a headstart on the likely outcome even before the electoral commission made its call.

    The outcome eventually disproved Jammeh who had exuded confidence, saying his victory was all but assured by God and predicting “the biggest landslide in the history of the country” after he voted on Election Day. But the Gambian ruler had nonetheless aided the public’s euphoria on the heels of the ballot count with his early concession of defeat. Speaking on state television before the electoral commission called the final tally, he acknowledged that the people “have decided that I should take the back seat,” and congratulated Barrow for his “clear victory,” adding: “I wish him all the best and I wish all Gambians the best.”

    Affirming that he would not contest the result because “as a true Muslim who believes in the almighty Allah, I will never question Allah’s decision,” Jammeh had said: “If he (Barrow) wants to work with us, I have no problem with that. I will help him work towards the transition.” Following his pronouncements, the Gambian military leadership congratulated Barrow and pledged the institution’s allegiance to him.

    But the Gambian ruler, only a few days later, lived up to his mercuric reputation by rejecting the same poll results he had unreservedly endorsed. “After a thorough investigation, I have decided to reject the outcome of the recent election. I lament serious and unacceptable abnormalities which reportedly transpired during the electoral process,” he returned to say on state television. Suggesting that the present electoral commission was beholden to the influence of unnamed foreign powers, he added: “I recommend fresh and transparent elections which will be officiated by a God-fearing and independent electoral commission.”

    Meanwhile the military appear to have withdrawn their pledge of allegiance to a Barrow government and have reverted to being tools of repression in Jammeh’s hands. The electoral commission rooted for the scoreline it had declared in Barrow’s favour and soon came under Jammeh’s sleigh of hand – with soldiers taking over its offices last Tuesday. “The military came to my office and said I am not to touch anything and told me to leave,” the electoral commission’s chair, Njie, told reporters, adding: “I am worried for my safety.” Among others, outgoing United Nations Secretary-General Ban Ki-moon described the occupation of the commission’s offices as an “outrageous act of disrespect of the will of the Gambian people and defiance towards the international community.”

    Either by design or by coincidence, the soldiers’ raid on the electoral commission took place as some Economic Community of West African States (ECOWAS) leaders were arriving in Banjul to press Jammeh on relinquishing power. The delegation, headed by chairperson of the Authority of Heads of State of ECOWAS and Liberian President, Ellen Johnson-Sirleaf, also included Nigeria’s President Muhammadu Buhari, his Sierra Leone counterpart, Ernest Bai Koroma, and outgoing Ghanaian President John Mahama. But it seemed like they made little headway with their mission: “We come to help Gambians find their way through a transition. That’s not something that can happen in one day,” Johnson-Sirleaf was reported telling journalists.

    Under The Gambia’s laws, Jammeh has until January 18 to conclude the transition processes and hand over power to the winner of the December 1 election. But Jammeh’s party, the ruling Alliance for Patriotic Reconciliation and Construction (APRC), has lodged a challenge against Barrow’s victory at the country’s Supreme Court; only that the legal challenge is unworkable as things are, because that court has been dormant since May 2015 when Jammeh sacked its justices.

    Opposition politicians voiced a concern that Jammeh could insist on clinging to power while the legal challenge pends before the Supreme Court. To meet the January 18 deadline, he would need to appoint as many as six judges to the court; but the Bar Association has warned that any appointment of judges by Jammeh to adjudicate a case involving him would be fundamentally unjust.

    Without the judiciary’s intervention, the electoral commission has the last word in Barrow’s favour on the presidential poll. The chairman, Njie, underscored this last week by saying: “The only way they can pursue the commission is through the court, and there is no court.”

    By all accounts, the time is effectively up for Jammeh in the Gambian presidency and he must leave power at once. Even before the latest poll, his claim on the presidency from four previous elections he purportedly won had been dubious, and he had only steered his country and himself deeper into international isolation. But Barrow’s victory in the recent election puts a final nail on all that.

    There have been suggestions that Jammeh might have backtracked on his concession of defeat out of a dread of what awaits him at the hands of the opposition government when it takes power. If that were so, the Charles Taylor abdication model could be helpful in easing him out of Banjul.

    Barrow (is) revving up to enact the country’s version of ‘Epetedo declaration,’ whereby he would unilaterally prono IR: I woke up recently to a call from a friend, asking me to join a Ponzi scheme which will enable me have my money multiplied without stressý. Fortunately, his explanation wasn’t convincing enough; more than that, I realised that ours is a country whose financial system is so weak that no citizen has 100% confidence in the system.

    MMM, like other Ponzi schemes, only took advantage of a weak system where lending rate is more that interest rate. Many customers complain everyday about illegal charges from banks, but like in a typical capitalist system, only minority decides and enforces its decision on the poor majority. Nothing is so disappointing as seeing a bank post N1:06k as interest rate on one’s account while deducting N4:00k as charge for sending the message which means that you pay back for an interest rate that adds nothing to your personal account. As if this is enough, we also have the maintenance “this and that” charges, ATM card charges for using other banks, VAT and all other deductions, which are just unbearable.

    Recently, we saw a discord between the minister of finance, Mrs. Kemi Adeosun and Central Bank of Nigeria Governor, Emefiele, over the lending rate. The latter obviously favoured banks more than their customers  even at the risk of discouraging manufacturers and entrepreneurs. The question is how can you convince Nigerians to believe in you than the Ponzi schemes?

    The Bank of Industry (BOI) has been battling with a proposed scrapping by the legislators and you think Nigerians won’t rather face the darkness that may bring light at the end of the tunnel rather than a light that leads to nowhere?

    Most countries where these Ponzi schemes have worked are under-developed with an economy that doesn’t have the people’s confidence. My opinion is the same with that of the masses: it’s not too late to get a working team to make the economy healthy so that people wouldn’t be planning to reap more from nowhere.

     

    • Eniola Opeyemi,

    Oyo State.

    unce himself substantive president

  • Confidence I have as an actor came from my Nigerian heritage, says British-Nigerian actor, David Oyelowo

    Confidence I have as an actor came from my Nigerian heritage, says British-Nigerian actor, David Oyelowo

    An excited Bailey led the trend of the speeches, just before the lights were dimmed for opening film of the City-to-City segment of the festival. There were so many fans of the film’s actors from across Africa as well as the anxious North American movie buffs who cheered the moment to high heavens.

    “We have been doing City-to-City for many years, featuring cities like London, Seoul, Athens, Mumbai, Buenos Aires, Istanbul and Tel Aviv. But then, it became obvious that the place to go next is Lagos. Although we have been having Nigerian films at the festival like Abeni by Tunde Kelani and Half of a Yellow Sun by Biyi Bandele, we have not really given the kind of attention that filmmaking from Nigeria deserves,” declared Bailey whose love for Nigerian movies was quite obvious.

    Continuing, Bailey said: “One of the first people that I told is an actor who is one of the best actors working anywhere on the planet earth, given that he has shown the range of his skill as an actor-he is David Oyelowo of Selma.”

    With this, he introduced Oyelowo whose name immediately called for a standing ovation.

    “My people!” David Oyelowo thundered with excitement, keeping the applause going.

    He said: “I feel great standing in the presence of people who can call my name correctly. I stand before you as David Oyetokunbo Oyelowo,” stressing the right pronunciation.

    “My dad gets worried sometimes about how my name is pronounced and he would tell them that they have to call it like the town crier… Oye-Oye-Oyelowo. This is one of the moments I must tell you that I am a very proud Nigerian. We are storytellers by nature. We have been telling stories traditionally, comically and poetically.  Tonight, I would tell you the reason I have so much confidence in what is happening with Nollywood. The confidence I have as an actor came from my Nigerian heritage. I lived in Nigeria for seven year from the age six to 13. And something I learnt there was how to walk into any situation as they came. We don’t know how to be shy. We don’t know how to walk into a room sideways. Working as an actor in the UK, we get so formal with the lines when we go for auditions.  But in Naija, we say… ‘‘just give me the part now, let me play it.’’

    “People say Nollywood is number two or three, but I say we are going to be number one.’’

  • Arbitration restores investor confidence, says Osinbajo

    Arbitration restores investor confidence, says Osinbajo

    A good commercial arbitration system will restore investor confidence in the Nigerian economy, Vice President, Prof Yemi Osinbajo, has said.

    The Vice President, who spoke at the First International Chamber of Commerce (ICC) Africa Regional Arbitration Conference in Lagos, said arbitration promotes the virtue of utmost good faith and constitutes a significant determinant of a country’s ranking in the yearly World Bank’s Ease of Doing Business report.

    Represented by the Minister of Justice and Attorney-General of the Federation, Abubakar Malami, the Vice President said any forward looking society must provide ways for resolution of commercial disputes, saying as lawyers and policy makers, “we are all aware that a fiscal resolution mechanism is a key factor involved in investment decision.”

    He said every business environment is prone to disputes, but stressed that every prudent society must design and constantly draw the processes through which disputes could be resolved in an amicable manner. “In the world of today, commercial arbitration is now recognised as a preferred method of solving several commercial disputes,” he said, adding that arbitration is now seen as not only possessing the desired speed, but also aggregating competency.

    The President of the Paris-based ICC Court of Arbitration, Alexis Mourre, stressed the need for more engagements and interactions on arbitration, adding that commercial practitioners would recognise arbitration just like common law and civil laws, pointing out that ICC is one of the key institutions that adopted arbitration and that 70 per cent of world arbitration came from ICC.

    The Chairman, Planning Committee, Nigeria ICC, Mrs. Dorothy Udeme Ufot, said  Committee came up with the idea of the three-day event with Arbitration and Africa: Prospects and Challenges as theme because Africa is the next major destination for Foreign Direct Investments (FDIs) by the international community.

    Ufot urged the international community to support Africa’s efforts to promote economic growth and investments, saying the interest of investors across the continent are so numerous that oil mining companies were looking forward to developing natural resources.

    At the panel discussion, the discussants, including the President, Nigeria Bar Association,  Augustine Alegeh, a representative from Dangote Group, Mr. Abdulah, Gbenga Oyebode, Founder/President, Econet Wireless Group, Strive Masiyiwa and other Senior Advocates of Nigeria (SAN), agreed that arbitration has become an integral part of dispute resolution. They agreed that employing arbitration in resolving disputes achieves faster results than long-drawn court processes.

    The former Minister of Justice and Attorney-General of the Federation, Bayo Ojo and a host of other lawyers from across Africa attended the forum.

  • Low investor confidence worries private sector

    The confidence level of investors and private sector operators  in the economy is waning, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, has said.

    Speaking with The Nation, he said except urgent and decisive action was taken, with direction given to the economy, investors will shy away from the economy and this will spell doom for the nation.

    While commending the purported truce between the executive and legislature on the budget, Yusuf said it is coming almost late, with the better part of the year gone.

    While commending the Town Hall Meetings by the government, Yusuf regretted that it was not inclusive.

    “We learnt traditional rulers, youths and market women were present, but we wondered how they missed out on the Central Bank of Nigeria whose Foreign Exchange (forex) policy is crippling the Organised Private Sector (OPS) and manufacturers,” he said.

    The LCCI helmsman said, for instance, that some manufacturers are currently having issues of credibility and integrity with their suppliers abroad because of challenges of remittances as a result of CBN’s policy.

    He despite this, government organised a Town hall meeting without inviting CBN. “We expected an all-inclusive participation with entrepreneurs, investors, Nigerian National Petroleum Corporation (NNPC) and members of the private sector to make it more robust,” Yusuf pointed out.

     

  • Wike: Supreme Court’s confirmation has restored confidence in judiciary

    Wike: Supreme Court’s confirmation has restored confidence in judiciary

    Rivers State Governor Nyesom Ezenwo Wike has said the Supreme Court judgment on his election has restored people’s confidence in the judiciary.

    He added that it confirmed the will of the Rivers people.

    Wike alleged that if the Supreme Court had nullified his election, he wouldn’t have contested the rerun because of the plot to use security forces to instigate loss of lives.

    He spoke yesterday at a thanksgiving service at St Peter’s Anglican Church, Port Harcourt.

    It was attended by Peoples Democratic Party’s (PDP’s) leaders across the country like Governors Udom Emmanuel of Akwa Ibom State, Seriake Dickson of Bayelsa State, Okezie Ikpeazu of Abia State and the Deputy Governor of Ebonyi State.

    Also present were ex-First Lady Dame Patience Jonathan, former Rivers State Governor Peter Odili and national and state legislators.

    Wike noted that God worked for him by reversing what people thought was irreversible, considering the previous judgments of the Election Tribunal and the Appeal Court.  He said: “Nothing is impossible with God. Clerics prophesied a few days to the Supreme Court verdict that the judgment will confirm the mandate given to us by the Rivers people.

    “We won the election clearly as has been confirmed by the Supreme Court. If there was a rerun, I wouldn’t have contested because there would have been bloodbath. I resolved not to be part of anything that will cause bloodbath.”

    The governor said a plot had been hatched to arrest and detain him to discourage Rivers people before the legislative elections earlier scheduled for February 6.

    According to him, the political powers were already indiscriminately  arresting PDP members and leaders across the state, preparatory to the rerun.

    He assured the people that he would use the mandate to advance development.

    Wike reiterated his earlier declaration that he would not allow the rigging of the rerun, noting that any Independent National Electoral Commission (INEC) official who attempted to rig would be treated as an armed robber.

    He said: “I am the executive governor of Rivers State and a strong one for that matter. We will support INEC to conduct credible elections.  Any official who plans to rig will get the treatment reserved for armed robbers.”

    Wike noted that the failure of the evil plotters meant that Rivers people would return all the lawmakers whose elections were nullified by the Appeal Court.

    He called for a fight against corruption, urging support for the prosecution of those who stole Rivers money.

    He said his administration will recover stolen funds.

    Wike assured the Rivers State All Progressives Congress (APC) governorship candidate, Dakuku Peterside, that he would be accommodated in the process of developing the state.  He said Peterside is not an orphan “I will be a father to Dakuku Peterside. He is not an orphan.”

    The Archbishop of Niger Delta Province, Dr. Ignatius Kattey, said Wike’s victory at the Supreme Court has brought peace to the state.

    He advised the governor to be father of all the people.