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Tag: domestic

  • ‘Domestic economy determines interest rate’

    ‘Domestic economy determines interest rate’

    The Executive Director/Chief Financial Officer (CFO), FirstBank of Nigeria Limited, Adesola Adeduntan, says the bank’s Capital Adequacy Ratio is strong and that it has raised $450 million Tier-2 Capital. At an interactive session with select journalists in Lagos, he spoke on the state of the economy, high interest rate and the re-introduced Automated Teller Machine (ATM) charge. He said despite regulatory challenges, FirstBank has repositioned for growth. COLLINS NWEZE was there.

    Banks’ lending rates are mainly determined by the state of domestic economy, the Executive Director/Chief Financial Officer (CFO), FirstBank of Nigeria Limited, Adesola Adeduntan, has said.

    At an interactive session with the media in Lagos, he said part of the strategic objective of the Central Bank of Nigeria (CBN) is to ensure that interest rate goes down overtime, adding that commercial banks are in support of the policy direction.

    On the rising cost of banking operation, the bank director said the operational expenses of lenders are also reflective of the level of the infrastructure available in the domestic environment.

    “For example, if you have a branch at a location where electricity is not readily available or where the supply from the national grid is epileptic, then you need to be able to provide your own standby generator. Most branches of banks across the country tend to operate on generator because they do not want to be switching on and off on the national grid.

    Again, your customers expect 24/7 access to their banking data base because, as I mentioned to you earlier on, people can now transact banking businesses in  the comfort of their homes. So irrespective of the opening and closing time of branches, you could sit in the comfort of your home at 10pm and effect banking transactions,” he said.

    Continuing, he said: “As a bank, we have been focusing enough on our own expenditure. We do have a framework which we manage our expenses but the reality is that given where we operate, the cost are there. But we are working and managing them. We do have a strategy with which we are curtailing our cost. Like I said, fundamentally, the government is dealing with most of the issues that is responsible for the high operating cost environment. It is not just the banking sector; it is also applicable to the manufacturing sector and also to the telecom sector,” he said.

     

    Banking regulation

    Adeduntan explained that regulation is a key component of banking all over the world adding that the ability of financial institution to survive and survive very well depends significantly on its ability to manage regulatory issues and regulatory pronouncements.

    “It also depends of a bank’s ability wrap its business strategy around such regulatory pronouncement and challenges.  So, in our own case, it is true that there have been significant regulatory pronouncements over the past few months. We have responded by tinkering with our business model and repositioning our business in such a way and manner that enables us to continue to grow despite all those regulatory challenges,” he said.

     

    Lending/ risk management

    He said FirstBank is managed very prudently and enjoys sound risk management structure. “We do have a very strong governance structure, starting with our board of directors in which we have very strong people, very knowledgeable people; we also have a very strong executive management team under the leadership of our group managing director.

    What that does is we have the platform, the knowledge and technical base to be able to embark on those types of lending that we are into. We do have a very robust credit risk management system and framework where we upfront, have our credit strategy and pro-active risk management policy that limits our exposures by business sectors, by geography, by product and by customers,” he said.

    The CFO said these policies and framework essentially cap the bank’s exposure within sectors, subsectors and to certain categories.

    “Although we are the largest financial institution in Nigeria, those exposures that you are seeing have been prudently determined, evaluated and they all fall within our internal benchmarks for those sectors. Also, a bank cannot exist in a vacuum; the balance sheet of a bank will be a reflection of the opportunities available in the domestic economy. For example, we should be surprised if we suddenly see the FirstBank lending to a sector that is non-existing in Nigeria. If we have five per cent exposure to diamond and it is not something that is available. So, if you look at the sectors we mentioned, they are critical sectors for this economy,” he added.

    He reiterated that oil and gas is the backbone of Nigeria economy adding that telecoms in the last 12 years has become one of the most dominant sectors of the economy and one of the sectors that has demonstrated the potential growth of opportunity that is possible in this economy. The same thing with manufacturing; Nigeria’s success is the emergence or re-emergence of the middle class. For middle class, the most important thing is that they have the disposable income and because they have disposable income, they also need to have goods and services.

     

    Capital Adequacy Ratio

    Adeduntan said FirstBank’s Capital Adequacy Ratio remains strong, adding that the lender raised $450 million tier two capital last July and repositioned its business model in a manner that enables it continue to grow despite regulatory challenges.

    He explained that Basel II and Basel III Capital Adequacy Ratio are banking accords that have been implemented in other jurisdictions adding that FirstBank finds it exciting that the CBN has rolled out its programmes.

    “We believe it is the right thing to do. For us at FirstBank, we are doing all that is possible to ensure that the institution is Basel-compliant.  Capital Adequacy Ratio is one of the ways regulators monitor banks. What is also very important to highlight at this point is that first and foremost, internally, we do have a capital management framework.

    CBN also made it mandatory for all banks to implement internal capital adequacy assessment process and what that policy does is that it compels management and the board of directors of every bank to look at their capital position, to look at their business strategy and the growth forecast, carry out forward looking kind of analysis, say where will my business be and what level of capital do I require if this or that happens? The framework also forces you to also look at stress scenario, what if this happens, what happens to my capital?

    If you look forward where is my business going and what level of capital do I require and to support that business? The framework also forces you to also even look at the scenario to see what if something happens to my capital position,” he said.

    The executive director disclosed that FirstBank went into the international financial market in July 2014 during which it successfully raised $450 million of tier two capital. He explained that there is opportunity for banks to capitalise their retained earnings subject to audit, and that also helps lenders to beef up their capital adequacy ratio.

    “At the end of the day, we would take the most cost effective approach that helps the institution.

    Where we are today is that our capital adequacy ratio is fine and like I said, based on the $450 million additional tier two capitals we raised, our capital adequacy is fine,” he said.

     

    ATM charge

    The CFO explained that withdrawal by customers from the ATM owned by their own bank continues to be free adding that as a customer of FirstBank, one can come as many times as possible to its ATM to make free withdrawals.

    “Where the challenge sets in is where people go on to other peoples’ machines to make withdrawals. Even at that, you are allowed to withdraw at least three times for free in a month. It is only when you have withdrawn more than three times that the charges set in. The way it works is that the bank, your own bank, gets charged each time you make withdrawal from another bank’s ATM.

    Somebody needed to be compensated for that but the fundamental thing is that when you withdraw from the ATM belonging to your own bank it is free. When you withdraw up to a certain limit even from the ATM that belongs to other banks, it is also free,” he explained.

    He said that ATMs cost money, to maintain them also cost money. “The fundamental message is that if you use machine belonging to your bank, it is essentially free. Even when you are in the location where the nearest ATM is not the one from your bank, it is still free up to a certain number of times. So I think that is the most important thing,” he said.

    Continuing, he said FirstBank is  the leader as far as ATM is concerned. “We actually own about 25 per cent of the ATM in the entire network. Truly speaking, for our own customer, they are able to access our ATM at virtually all the critical locations and we are also very strategic when we position our ATM such that in most cases, we will expect our customers to have an ATM relatively close to wherever it is that they would like to withdraw cash,” he added.

  • ‘Domestic, sexual violence perpetrators must not escape justice’

    ‘Domestic, sexual violence perpetrators must not escape justice’

    Lagos State Attorney-General and Commissioner for Justice Mr. Ade Ipaye has urged the Domestic and Sexual Violence Response Team (DSVRT)  to ensure that offenders are brought to book.

    He observed that  domestic and sexual violence was on the increase because of impunity and the victims failure to give information that would ensure offenders’ prosecution.

    Speaking while inaugurating the team, which he chairs, Ipaye lamented victims’ lack of awareness of their right under the law.

    Members of the committee are from the Police; Office of the Public Defender (OPD); Directorate of the Citizen’s Rights; Directorate of Public Prosecutions; Office of Youth and Social Development; Ministry of Women Affairs;  Poverty Alleviation; the Civil Society and the media.

    The prosecutors,  Ipaye said, have the responsibility to ensure that victims get justice at all times, saying no offender should be made to think that he or she is above the law.

    He urged the committee to coordinate and develop a community response to prevent domestic violence, protect and support victims and bring perpetrators to justice.

    “DSVRT is a specialist team and the purpose of the establishment of the team is to increase victims’ safety and offenders’ responsibility by providing a cross jurisdictional response that is uniform in approach in domestic violence cases across Lagos State,” he said.

    The establishment of DSVCT, he said, will be instrumental in the reduction of domestic and sexual related crimes and ultimately provide some succour to victims of the heinous crimes in the state.

    Ipaye stressed the need for awareness on the part of victims and advised the team to be devoted to education and creation of awareness among all interest groups in order to reduce and prevent incidences of sexual and domestic violence in the state.

    The team, according to Ipaye,  would be  devoted to education and creation of awareness among all interest groups in order to prevent or reduce the incidence of sexual and domestic violence in the state.                                                                                                                                                        According to him, some of the responsibilities of the team include risk assessment and safety planning for victims and children;  conduct research on issues of sexual and domestic violence to improve the knowledge and appreciation of stakeholders and refer victims of sexual and domestic violence to relevant stakeholders for follow up action, proper investigation and prosecution of alleged offenders and treatment of victims.

    Ipaye said an e-mail address and website have been created and a dedicated telephone lines (Toll-Free lines) would be available to members of the public, particularly, victims who may wish to call in and register a complaint.

    The Attorney-General commended Police efforts and other community service organisations, who he noted, are ‘working passionately with a view to tackling this menace’. He pointed out  that it is important to harmonise the efforts and provide a coordinated response to the issue while working towards a common goal.

    The OPD Director, Mrs. Rotimi Omotola demanded that domestic and sexual violence should be one of the cases that should fall under the fast track system in the courts. According to her, it will quicken dispensation of justice and reduce stress on the victim.

    She advised that government should take issues of preservation of evidence very seriously, noting that lack of evidence and inability to protect it have been the reasons why cases are thrown out of court.

    The Director, Directorate of the Citizen’s Rights, Mrs. C.O. Ibirogba suggested the publication of a handbook which will list all legal steps to be taken by victims and other stakeholders to get justice.

    Other members of the team include Senior Special Adviser to Governor Babatunde Fashola on Legal Matters, Mr Gbolahan Adeniran; Ironsi Bose;  Itoro Eze-Anaba;  Keziah Awosika; Oke Mobolaji Olamide;  Modupe Aladelusi;  Adegboyega Bajulaiye; Babajide Martins;  Mosunmola Balogun; Alaba Fadairo;  Titilope Akosa;  Okoro Uche;  Vweta Chadwick; Oghogho Olabisi and  Chinwe Onyeukwu.

     

  • ‘Rising fuel price, scarcity killing aviation business’

    ‘Rising fuel price, scarcity killing aviation business’

    The rising price of aviation fuel has led to a corresponding  increase in the operating cost of domestic carriers. This has equally affected air fares. But experts say the solution to the challenge lies in fixing pipelines that supply fuel to airports and refineries, as well as providing more storage facilities, reports Aviation Correspondent KELVIN OSA OKUNBOR.

    DOMESTIC carriers are grappling with two major challenges: scarcity of aviation fuel and high cost of the product. These have become a nightmare for airlines.

    Their operators said the increase in the price of the product has raised cost of operations by over  40 per cent.

    They argued that if the situation is not addressed quickly, the increase  would  reduce their profit margins substantially.

    Besides the high price of aviation fuel also known as Jet A I, its unavailability due to ineffective supply, remains a headache for players. Many airlines’ officials said the problem has led to the cancellation or delay of flights.

    Investigations reveal that a litre of the commodity is sold for between N160 and N170, which experts said is too high.

    For a 50-minute flight (Lagos to Abuja for instance), a Boeing 737-300 consumes 2,250kg of fuel.

    The Executive Chairman, Airline Operators of Nigeria (AON), Captain Nogie Meggison, said the price of fuel had remained unstable for some time.

    Worried by the unavailability of aviation fuel at the Murtala Muhammed Airport, Ikeja, Lagos, the AON called on the Federal Government to revive the Aviation Turbine Fuel (ATF) refinery in Warri, Delta State. It urged the government to fix the pipelines supplying aviation fuel to the airport.

    The domestic carriers’ umbrella body said  aviation fuel forms over  40 per cent of their operating cost, adding that the figure is too high for business. He called on the Federal Government to intervene by ensuring that it revived Atlas Cove and Mosimi pipelines which supply aviation fuel.

    Meggison said when the pipelines were working at full capacity, they supply aviation fuel to the airport uninterrupted.

    The facilities, he said, were shut  in 1996 by the military government.

    Earlier, Meggison said, aviation fuel was ferried to the Murtala Muhammed Airport  without trucks. The Nigeria National Petroleum Corporation (NNPC), he said, should repair the pipelines, which  have been abandoned for 18 years.

    He said:  “We need NNPC to revive this pipeline so that airlines can get cheaper and cleaner aviation fuel.”

    He listed other problems in the sector to include the high cost of importing fuel, delays at seaports, which have translated to high demurrage for marketers, delay in loading at the Apapa Port and inefficient  transportation by road from the Apapa Port to the Joint Users Hydrant Installation (JUHI) at the airport.

    As a result, the marketers want the aviation fuel market deregulated.

    The Warri Refinery, he said, can produce ATF, calling on the government to look into the issue as it would further reduce costs.

    Pumping fuel using pipelines and hydrant, the AON boss argued, is safer and cost effective compared to the use of tankers and fuel bowsers, adding that abroad, tankers are not deployed for fuel distribution.

    He recalled that some decades ago, Nigeria used hydrant both at the defunct Nigeria Airways  Limited(NAL) apron, the General Aviation Terminal (GAT), the international and Cargo ramp to supply aviation fuel to airlines.

    He said it was sad that the government allowed aviation fuel distribution to deteriorate from digital to analog, adding that until the issues are addressed, the chances of airfares falling are slim.

    He cited Cotonou, Lome and Accra as cities where the price of aviation fuel is cheaper because the airlines do not pay demurrage or use trucks  to carry aviation fuel.

    The Deputy Managing Director, Arik Air, Captain Ado Sanusi,, said  the increase in the price of aviation fuel was affecting airline operations.

    Some of the effects, he said, includes delayed and cancelled flights.

    He said: “Aviation fuel is another major factor affecting the industry. The cost of aviation fuel is not only high but the product is not always available.

    “It is unfortunate that Apapa, Lagos is the only discharging point and it has to be trucked to the airport in Lagos through the Apapa gridlock and to Abuja and other parts of the country.

    “It is disappointing that a vast country like Nigeria is still importing aviation fuel and all the entry point is from Lagos before it is trucked to other parts of the country. Most often preference is given to premium motor spirit (petrol) before Jet A1 (aviation fuel) is discharged.

    “The reservation of the product is small.There are some days Arik will need about 500,000 litres of the product but the reserve is 350, 000 litres. The issue of aviation fuel availability in the country needs to be looked into by the government. The infrastructure for the distribution of fuel to the airports has not developed to meet the growth of the airlines in the country.

    “Foreign airlines come here once or twice daily and pick up fuel in Accra, Ghana or Cameroon, whereas Arik domestic, regional and international operations source fuel from Nigeria. This sometimes causes delays and cancellations of flights. If fuel comes in late and the some of the airports close by 6:00 or 6:30 pm, some of the flights will inevitably be cancelled.

    It is most unfortunate that while the number of local airlines is increasing, the airport facility infrastructure is not being expanded.

    “This has given rise to the congestion of the domestic terminals of the Lagos airport, Murtala Muhammed Airport Domestic Terminal 1 (GAT) and 2 (MMA2) as they are still using the small apron space meant for few airlines. The GAT terminal facility needs to be expanded. Also the apron of GAT needs to be expanded. The unserviceable airplanes parked at the apron should be removed to make way for operating aircraft.”

    The Chairman/Chief Executive Officer, Air Peace, Allen Onyema, said many airlines do not have enough aviation fuel because of indebtedness. He said because they are unable to settle their bills promptly, the independent fuel marketers are reluctant to make the product available to them.

    When Air Peace started operations, he said they were operating a direct cash payment system with fuel suppliers.

    He said: “Many domestic airlines are suffering from inadequate aviation fuel because they owe fuel marketers. This is not good for business. When we started up operations, we were paying cash on delivery for our aviation fuel.

    “We are in discussions with four fuel marketers to ensure we have uniterrupted supply. That is the way to go.”

    The Managing Director of Medview Airlines, Alhaji Muneer Bankole, has urged the government to resolve the challenge of aviation fuel to reduce the burden of domestic airlines.

    Bankole said: “The industry should have a window where we can service fuel. Now, how many airlines do we have in the country? The challenges are enormous and we are not making much profit, but we are just striving to remain in business.

    “The situation where airlines have to pay over 40 per cent of their earnings on aviation fuel must be addressed if the airlines, which are already struggling with numerous challenges, are to remain in business.”

    An aviation expert, who pleaded not to be named, described the development as worrisome.

    He said: “The airlines have always claimed that the marketers are anti-progress as they insist on a cash-and-carry arrangement prior to delivery. They also claim that there are insufficient fuel dispensing trucks for the operators, especially at peak hours.’

    According to one of the leading domestic operators with 126 flights daily, the airline needs about 500,000 litres daily to fuel its flights. At N170 per litre, the airline will spend close to N85 million daily on fuelling alone.

    He also said the marketers cannot fuel 15 of the airline’s 24 aircraft at the same time due to the inadequate   trucks and the constraints of the domestic terminal.

    “These cause congestion at the aerodrome because we have many aeroplanes, wide-body and narrow-body. At times, they want to service an airline’s two aircraft, go to another one, do three,  just like that till everyone is satisfied. This, on its own, is a challenge. It’s not as if we don’t have the money to pay them, but there are equipment and space constraints. As a result, we have our own fuel dump to take care of our operations in case of a sudden scarcity of Jet A-1. The operating environment is really harsh,” he said.

    Airlines’ officials caomplained of refuelling problems, saying they were affecting them. For dealers, the problem is the airlines, which owe them billions of naira, lamenting that if the debts are not paid, they would be out of business.

    However, experts have a solution  to the problem of increased fuel.

    “It is left for airlines to look, for instance, at their price structures to make sure we mitigate the effects of its rise in the industry.

    “The government policy is affecting our operations and each airline will have to look at what it does to mitigate its effects. It is a problem that we are talking with AON and the marketers with. Some things are not in our hands. The good thing about this market is competition; it drives efficiency and the prices, an expert said.

    An aviation analyst, Mr. Olumide Ohunayo, said the Federal Government should come up with a policy that would assist operators.

    Such policy, he explained, should focus on taxes’ reduction, fuel supply and pricing.

    He said: “What we need is a national airline policy that will strengthen the industry and our airlines. The policy should include a reduction of taxes, modernisation of air traffic control and regulatory burden reforms.”

    “It should address the stabilisaton of aviation fuel prices, former secretary, African Airlines Association (AFRAA), Mr Nick Fadugba, said.

    The government, he said, should  tackle these problems to enable airlines survive.

    He said the problems could kill the airline business.

  • ‘Give teeth to domestic violence law’

    ‘Give teeth to domestic violence law’

    Five years after the enactment of the Lagos State Domestic Violence Law (LSDVL), stakeholders last week met at Ikeja to appraise the law and its effectiveness in eradicating domestic violence.

    Participants at the dialogue noted that lack of awareness has been the major challenge confronting the effectiveness of the law, as most victims of domestic violence are not in the know of its existence.

    They argued that religion and culture have also brainwashed many victims such that they prefer to suffer from violence than report the abuser.

    Organisations such as the Department For International Development (DFID), State Accountability and Voice Initiative (SAVI), Office of the Public Defender,OPD,Women Arise, Women Advocate and Research Documentation Centre as well as Lagos State Ministries of Information, Justice and Women Affairs (WAPA), were represented.

    State legislator, Hon.Funmi Tejuosho, was at the dialogue and the wife of Lagos Governor, Mrs. Abimbola Fashola was represented by a Director in WAPA, Mrs. Folasade Ogunnaike, while the state’s Deputy Governor, Mrs Adejoke Orelope-Adefulire was represented by the Permanent Secretary, Ministry of Establishment, Mrs. Folasade Jaji.

    Participants observed that unavailability of funds has also hindered the implementation of the law, just as they called for a budgetary provision on domestic violence.

    In her opening remarks, Mrs. Fashola said the state is trying to conquer the challenge of victims not wanting to be seen as having reported their spouse or family member.

    “We try to make them know that the perpetrator will be invited in private so that they can be sensitised on the existence of the LSDVL.

    “That women are ‘bound’ by certain cultures not to report their family members does not mean that they have to wait till they are dead before speaking out on cases of violence or abuse.

    “Sometimes, all the abusers need is sensitisation of the existence of the law and they will take a new leave.

    “People need to know that the law is not biased for women or against men. It is a family law.

    “Because it is quasi-criminal, the emphasis is to protect the marriage so that we do not have children from broken home most of whom end up as ‘area boys,” she said.

    Delivering a keynote address on Tackling domestic violence in Nigeria: the Lagos State challenges and opportunities, Mrs Orelope-Adefulire said 85 per cent of domestic violence were against women.

    She stated that the state has achieved 20 per cent reduction in violence through issuance of yellow cards to abusers, noting the need for increased campaigns against the vice, to enlighten more people.

    The deputy governor also noted the need to re-orient the police so that abusers willbe brought ot book.

    “There should be a seperate desk at the stations with police officers trained in handling issues of domestic violence, so that victims will not be taunted each time they take their cases to the station,” Mrs Orelope-Adefulire said.

    Tejosho, who sponsored the bill at the State Assembly, expressed delight that progress has been recorded since its enactment.

    “The law is to protect the marriage, we are aware that a lot of couples want their marriage to be intact, most times all the victims fear is the violence, which they want to stop.

    “So, Domestic Violence Law has been put in place to ensure that the matter is heard in private so that the parties will not feel they are washing their dirty linen in public. People need to understand that the law is a quasi-criminal law, abusers will not be handcuffed or tortured, our interest is to ensure that the abuses are stopped,” she said.

    Continuing, Tejousho said: “So far so good, I am glad we have this kind of gathering for people to know that the law exists. We can never get tired of talking about domestic violence so that it can be reduced to the barest minimum.

    “As we continue to deliberate on issues of domestic violence, people will begin to realise that there is no taboo in talking about it. We are beginning to realise that more people are complaining and the death that arises from it is reducing minimally but by God’s grace we will be able to eradicate it from our society.”

    However, she disagreed that funds were not available and have hindered the implementation of the law.

    “When you talk about laws, it depends on what the law is about. It is not WAPA that handles criminal matters; they will provide temporary measure from the day the violence is reported to the point where there is solution. They cannot keep victims forever.

    ‘’When you talk of criminal issues, it is basically the duty of the police, which is not funded by state governments although we help with security issues through the Security Trust Fund.

    “Also, when you talk of enforcement, it deals with the judiciary, which is a separate arm of government and you must appreciate that there is separation of power, and I can tell you that at present in Lagos Judiciary, there are family courts with judges and magistrates assign to specially and exclusively handle family matters,without funds, that would not be achieved.

    “However, there is a limit to every budget, if you have a specific amount of money you list your priorities in the order of importance for it to be approved.

    “But as I said, there is need for improvement. We cannot say because we have achieved somethings, so, we would not work for the law to be better.

    “As we continue to speak about it, not only will the Federal Government appreciate that when it comes to issues of domestic violence, it transcends the home and robs on the society, but must also provide budget to tackle the problem head long,”Tejousho said.

    President, Campaign for Democracy(CD), Dr. Joe Oke-Odumakin, said domestic violence was on the rise in the country and “it is killing us and maiming our people”.

    She said there should be enough protection for victims, adding that people should be able to know the extent to which the law can protect them.

    “Law enforcement agencies should also be made to know that they owe it a duty to ensure that victims of domestic violence get justice rather than taunt them.

    “The government should ensure counselling centres as provided in the law are set up in every local government so that people can run to the centres and get succour.

    “In terms of budgeting, a lot needs to be done. Talk is very cheap, but in terms of practising, it should be budgeted for adequately because there are cases where there is need to rehabilitate people or foot their medical bills,” she said.

    On rape, Odumakin urged victims to avoid destroying rape evidence until samples have been taken at the hospital.

    “There must a conscious effort in letting people know that they should not destroy rape evidence. It is very discomforting but they have to learn to go to the hospital and walk around without cleaning up until the evidence is taken,” she said.

    Ogunnaike told The Nation that WAPA was training women identified as supervisors for WAPA (Super-WAPAs) at the local government level.

    “We are just bringing them up. They are political appointees from the grassroots and we believe that because of their base, they have more in route towards that level of reporting.

    “So, after training them on what to do, we will allow them replicate what is happening in the state so as to decentralise the issue and allow other people come on board.

    “We are also encouraging spouses of the local government chairmen to assist, especially in making referrals. Some people do not want to report cases within their environment because of stigma.

    “We have temporary shelter to house victims of domestic violence and we also work with NGOs who usually bring their cases to us. We do not discriminate because anyone who lives in Lagos is bound by the laws of the state,” she said.

     

  • IFC issues $76m debt instrument in Nigerian domestic debt market

    The International Finance Corporation (IFC) has issued a Naira denominated debt instrument worth US$76 million in the Nigerian domestic debt market.

    Debt instruments are paper or electronic obligations that allow the issuing party to raise funds by promising to repay a lender in accordance with the terms of an agreed contact.Debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower.

    They are also ways by which markets and participants easily transfer ownership of debt obligations from one party to another.

    As a result of this development, the IFC has established a benchmark for other international bond issues to tap what it calls “the growing Naira bond market”.

    The Nation gathered that this was in response to the favourable domestic market environment created by the Debt Management Office (DMO) for the private sector.

    Already, 20 Nigerian firms have raised long-term capital of over N200 billion from the domestic debt market between 2005 and 2011 to fund the development of the real sector.

    The DMO, on its part, believes that opportunities exist for growth in terms of number of and diversity of debt issuers, range of instruments, size and investor base.

    For the external debt market issues, the creation of a sovereign benchmark in the International Capital Market (ICM) has encouraged four banks to issue Eurobonds between January 2011 and July, this year worth US$1.45 billion.

    The banks are Guaranty Trust Bank (GTBank), US$500 million, 7.5 per cent coupon with five years tenor; Access bank, US$3530 million, 7.25 per cent coupon also with five years tenor; Fidelity bank, US$300 million, 6.87 per cent coupon, five years tenor and FirstBank, US$300 million, 8.25 per cent coupon with seven years tenor.

    By opening access to funding opportunities in both the domestic and external debt markets, the DMO wants to strengthen and deepen the FGN bond market for enhanced liquidity through the continued issuance of benchmark bonds and the introduction of other varieties of debt instruments such as securities lending, bond switches and inflation-linked bonds into the domestic bond market.

    Also the DMO it was learnt wants to strengthen Nigeria’s presence in the ICM through the issuance of other variety of debt instruments, such as the already approved N80 billion FGN bond in the form of Global Depository Notes (GDN) and US$100 million Nigeria Diaspora bond.

    In addition, the DMO says it will encourage Nigeria companies to leverage on the existing sovereign benchmarks to raise long-term capital in the domestic market and ICM to develop the real sector and build infrastructure.

    However, the federal government has been cautioned that though Nigeria now has increased borrowing space due to the latest international benchmarks, Nigeria should still maintain the conservative stance of benchmarking the (NPV) of total public debt/GDP relative to 40 per cent, as against the new threshold of 56 per cent.

    This the DMO says would take into account the need to significantly operate below the standard threshold because of the peculiar structure of the country’s GDP with its reliance on one major source of revenue.

  • ‘Development of domestic tourism ‘ll boost economy’

    ‘Development of domestic tourism ‘ll boost economy’

    For tourism to contribute meaningfully to the economic development of the nation, there is urgent need to expand the domestic market by creating linkages within Nigeria and the neighbouring countries, including East of Africa.

    The Chairman, Tourism Group of the Lagos Chamber of Commerce and Industry (LCCI), Larry Segun-Lean, who made this remark, said tourism would also promote the cultural heritage by using destination, marketing plan and operation, as well as providing opportunity for investors and other stakeholders in the industry.

    “We have to create linkages, destinations in the country.All the hotels and restaurants at the moment work independent of one another, but we need to bring everybody together so that when a visitor comes whether from within or outside Nigeria, the person knows what to see, where to go and spend more time and thereby spending more money,” Segun-Lean said.

    He said it was the responsibility of the government to provide the amenities, including marketing orientation for cultural sites and monuments, as well as the promotion of cultural brands.

    Speaking with The Nation during the Pre-Centenary Celebration Lecture in Lagos, Segun-Lean challenged the government and other stakeholders to take full advantage of the use of the new technology in promoting cultural tourism by generating specific information that would give accurate description of cultural monuments, events, facilities, services and resources as obtainable in every part of the country.

    This, he said, would intensify awareness of how valuable cultural tourism is to the economy, believing it would promote understanding of cultural offer of a destination and meaning to the tourist, adding that cultural association and destination management organizations would value location, hospitality, attraction and distinction of the cultural sites.

    The theme of the lecture, which was “Promoting Cultural Tourism in Nigeria: The Past, Present and the Future”, is expected to critically analyse cultural tourism in Nigeria in the past one hundred years with a view to charting a new course for the industry in the future.

    Segu-Lean, who called for collaboration of leadership in the sub-sector, maintained that culture, if well harnessed, could change perception of a place and contribute meaningfully to the economic growth of the nation.

    The President of the chamber, Goddie Ibru, said government must put in strong measures to bring a lasting solution to the socio-economic and political problems in the country, including insecurity, inadequate infrastructure and harsh business environment to enhance tourism development.

    He further said transportation and technology are part of challenges that directly impact on the tourism industry which the government must address with urgent attention.

  • A fight against domestic violence

    A fight against domestic violence

    : Movie to highlight problem

    Piqued by the increasing cases of domestic violence against women, some prominent Nigerian actresses, Kate Henshaw, Rita Dominic, Uche Jombo and Funke Akindele, have decided to pool resources to fight the trend. They intend to achieve this through a movie entitled New Horizon in which they highlight the trauma which women go through.

    Before them, other well-meaning individuals and organisations, over the years, have championed the cause of women who suffer domestic violence in order to minimise the trend.

    Experts posit that violence against women, especially in Africa, has remained a thorny issue. They are also of the view that this phenomenon manifests in psychological and threatened acts of violence. They also add that it plays out in form of physical acts such as pestering, assault, battery, rape and homicide. It is, they insist, marked by one individual’s attempt to dominate and control another, often through a pattern of intimidation.

    The actresses maintain that ending violence against women is a cause all well-meaning individuals should participate in.

    They also uphold the view that the wall of silence and taboo that still surround violence against women and the sheer scale of this human rights violation often become obstacles that prevent ordinary people, as well as celebrities, from getting actively involved in fighting the trend.

    However, these walls of silence and the taboo associated with the trend which various individuals, governments and organisations have been working actively to combat through various programmes seem to be caving in. These notable Nigerian actresses have braced up to fight this phenomenon definitely.

    As part of their own contributions, these Nigerian actresses have come together to create more awareness about the situation in a short film entitled New Horizon.

    Kate Henshaw, Rita Dominic, Uche Jombo and Funke Akindele said they felt that there was an urgent need to challenge all forms of social prejudices and constructs against women.

    They expressed their determination to fight all manner of social, religious, cultural and psychological issues that boost subjugation of women.

    At a press conference to announce their plans at the Tinapa Lakeside Hotel in Calabar, Henshaw, who spoke on behalf of other actresses, said they had to highlight the issue in order to protect African and Nigerian women in particular, not just from the menace, but also from the attendant mockery, fear and isolation.

    She said: “New Horizon is the story of the triumph of four women from different walks of life who came together within a self-help group for women. They help each other to get through their various challenges and arrive at a new horizon in their individual lives.

    “We needed to take a step further to do something that would create more awareness for the women. These ladies showed up to partner with me to come up with a script, get a director, shoot a film which we hope to take across the world to show to men and women all over the world. It is a start. We are adopting this mode because visual form of passing messages and information is very powerful.

    “When people see things, it would stick in their minds and hopefully it would cause a change in their hearts to stop domestic violence.”

    She noted that domestic violence affects all social groups and can consist of physical, sexual or psychological abuses.

    The prominent actress further said that although men can also be affected by domestic violence, it is the women who suffer it extremely.

    “This tendency is present everywhere in the world. But Africa’s discriminatory laws and prevalent culture of silence and stigmatisation against victims of domestic violence continue to trivialise the problem,” she said.

    She revealed that the movie which is not intended to be a means of money-making would be premiered on Ebony Life Television.

  • Fed Govt’s domestic debt hits N6.5tr

    The domestic debt of the Federal Government rose to N6.54 trillion at the end of December last year, FBN Capital, an investment and research firm has said.

    In an emailed report obtained by The Nation, the firm explained that the current debt figure is equivalent to 15.3 per cent of estimated 2012 Gross Domestic Product (GDP). The quarter to quarter increase of N190 billion compares with N200 billion in third quarter and N180 billion in second quarter of 2012. This, it said, underpins the BB- ratings from both Fitch, and Standard and Poor’s for Nigeria’s sovereign credit ratings for its local currency obligations. The Debt Management Office’s (DMO’s) series covers only sovereign naira borrowings.

    However, the report said should the obligations of state governments, Asset Management Corporation of Nigeria (AMCON) and public agencies such as the Nigeria National Petroleum Corporation (NNPC) and external debt be combined, Nigeria debt statistics could theoretically reach 40 per cent of GDP under a worst case scenario.

    It however, said the Federal Government is alert to the rising cost of domestic debt service within total expenditure, and has therefore proposed to launch a $1 billion Eurobond and a smaller foreign currency issue for the Diaspora this year. Its 2013 budget proposals it added, also include plans for a sinking fund to redeem “one or two” of the Federal Government bond issues.

  • TUC hails plan to acquire 30 aircraft for domestic operators

    The Trade Union Congress of Nigeria (TUC) yesterday backed the Federal Government’s plan to acquire 30 aircraft to boost domestic operations in the aviation industry.

    Mr Musa Lawal, TUC’s General Secretary, told the News Agency of Nigeria (NAN) in Lagos that the congress was supportive of any positive policy that would enable the government to achieve its objectives.

    Lawal was reacting to the disclosure by Mr Yakubu Dati, General Manager, Corporate Communications, Federal Airports Authority of Nigeria (FAAN), of the government plan while inspecting the renovated Benin Airport.

    Dati had said that the aircraft would be distributed to domestic airline operators, a departure from the old practice, where they were given money from the Aviation Intervention Fund to shore up their businesses. “We are not against the government leasing aircraft to private operators who can manage them very well and return our money because the planes will be bought with public funds,’’ Lawal said. He said in the past, Nigeria Airways was grounded because some people booked seats without paying under the guise of being on official duty.

    The TUC scribe said that the government must ensure that the funds to be invested in the planes were recovered. He urged the government to learn from past mistakes and ensure that the exercise was well executed to achieve its intended results.

     

     

     

     

     

     

     

  • Ex-AFRAA scribe faults plan to set up new domestic carrier

    Former Secretary-General of African Airlines Association (AFRAA), Mr Nick Fadugba, has faulted the plan by the Federal Government to facilitate the establishment of new domestic carriers.

    He said it will be better for the government to embrace global trend of encouraging the consolidation or merger of existing carriers, as it is done in China.

    In an interview, he explained that it would be better to pursue the delivery of profitable and competitive domestic carriers rather than just having airlines to swell the number.

    He said: “The airlines are our weakest links at the moment. Apart from Arik, we don’t have any large, strong airline in Nigeria. Most of the airlines are weak and underfunded and undercapitalised. I hear they are planning for new airlines. I would encourage the government to exercise caution because all over the world, airlines are consolidating and in China, you have four major airlines and they are a billion people. So, if we bring new airlines, how will they all survive?

    “In bringing new airlines, we focus on not many but the few strong, profitable, affordable, safe airlines, rather than having more airlines.”

    He also spoke on the parlours state of operational airport infrastructure, urging the government to take urgent steps to deliver controversy-free concessions and a master plan to develop the aviation sector.

    He said: “ When you talk about infrastructure, I was very surprised by the well-articulated plan, an integrated plan for all the airports in Nigeria but I believe the government has to bring in the private sector to attract more funding. In terms of strategy, they are moving the right direction.”

    He said for too long infrastructure in the aviation industry lagged behind that of countries. “Even in Africa, we have lagged behind, Egypt, Ethiopia, South Africa. For example, I was in Maputo last week, the people have built a new airport, marvelous, unbelievable yet we can’t say that in Nigeria at the moment,” he added.

    According to him, aviation is in three parts. They are regulation, infrastructure and operation and the airlines. He added that in terms of regulation, “I think NCAA doing a good job but the job is not finished.”