The Nation Newspaper

Tag: Economy

  • U.S. renews confidence in Nigeria’s economy with P&G’s N5b modern plant

    THE United States Government has renewed its confidence in the Nigeria’s economy with the opening of Procter& Gamble (P&G) $300 million (about N4.8 billion) new plant in the country

    The new plant, which is located in Agbara Industrial Estate, Ogun State sits on 40.2 hectares of land after its Ibadan plant in Oyo State.

    The Greenfield investment represents American largest investment in Nigeria outside the oil and gas industry.

    President Goodluck Jonathan congratulated P&G on the opening of the state-of-the-art plant and commended the firm for its dedication towards the country as exemplified by the investment in the new plant.

    President Jonathan, who was represented by Vice President Namadi Sambo, said the government would continue to support industries through the removal of investment barriers.

    He added that the goal of his administration is to ensure efficient coordination of investments by relevant government agencies, a development which made it to embark on a comprehensive tax reform in a bid to eliminate double taxation.

    P&G Group President for Central& Eastern Europe, Middle East and Africa (CEEMEA), Mr. Laurent Philippe, explained that P&G was proud to be part of Nigeria’s growth for over 20 years and is committed to continue investing in Nigeria in a bid to Touch and improve lives of people in Nigeria.

    He noted that the company’s dedication to investing in Nigerians closely supports the government’s Transformation Agenda. “We share the same purpose and a partnership between the two is both natural and essential”.

    “Maintaining strong momentum in markets such as Nigeria is a priority for P&G. We are investing in marketing spending and also accelerating relevant innovation.  With our dedication to grow the business in Nigeria we are pleased to be market leaders in several categories in which our brands belong.

    “However, there is still a significant opportunity to enlarge our portfolio, to introduce more of our high quality brands and enter into more categories.

    “To this end, we are strengthening our manufacturing operations in the country with the plant we are inaugurating here. This plant positions Nigeria to be the manufacturing hub for other P&G markets of West Africa and supports the Government’s diversification efforts- being the current largest US investment outside of the oil sector.”

    With the plant, P&G will be creating thousands of jobs for Nigerians and would be supporting the establishment and expansion of hundreds of SME’s with added development of human capital.  Through suppliers, partners and agencies, we will have a broader positive impact on the economy and on further job creation,” Philippe said.

    P&G’s Plant Manager for the Agbara plant, Mr. Yasser Shehto led the Vice President as well as other delegates on a tour of the new manufacturing plant. The plant features the latest diaper manufacturing technology pampers to better serve more babies and mothers in Nigeria. He also highlighted the plant’s technological advancement in waste management and environmentally friendly manufacturing practices.

    Operations have already begun on the new site with the manufacturing of Pampers diapers. The facility also has the capacity to accommodate further expansion of manufacturing operations on the same site.

  • Economy: Lagos Assembly assures Fashola of continuous support

    Economy: Lagos Assembly assures Fashola of continuous support

    Lagos State House of Assembly has pledged to continue to support Governor Babatunde Fashola in his quest to better the live of Lagosians by providing necessary infrastructure in the state.

    The House further pledged to assist the governor in the area of budget in every way possible to avert any untoward effect arising from the current economic situation as a result of Federal Government failure to remit the proper fund to the state.

    Deputy Speaker, Hon. Kolawole Taiwo who presided at yesterday’s plenary gave the assurance on behalf of his colleagues after listening to four members of the state executive council who were invited to throw more light on the state of the economy as presented to the House by the Governor at plenary on recently.

    After listening to the governor on Monday, the House invited Commissioner for Economic Planning and Budget, Ben Akabueze, Commissioner Finance, Ayo Gbeleyi, commissioner, Special Adviser on Taxation and Revenue, Bola Shodipo and the Accountant General of the state.

    The exco members took turns to explain the effect of the current situation on the performance of the budget and welfare of Lagosians.

    According to Nwabueze although only 25 per cent of the state government is dependent on federal transfers “it still remains a significant portion of the budget if it is threatened as it is now” stressing that it affects budget performance. He said 75 per cent of the budget is from internally generated revenue.

    He however pointed out that not very many states are in the same situation with Lagos as most of them practically survive on federal allocation.

    Shodipo explained further that the situation “affects every aspect of our living in the state, we are trying to minimize the effect but how far we can go is still a matter of concern.”

  • Nigeria’s economy in dire strait, says Fashola

    Nigeria’s economy in dire strait, says Fashola

    • NNPC under-remitted N2.4tr

    LAGOS State govenor District 13 Babatunde Fashola (SAN) has painted a very grim picture of Nigeria’s economy saying the situation demands urgent attention.

    Addressing members of the state House of Assembly on the state of the nation at plenary yesterday in Lagos, he complained that the Nigerian National Petroleum Corporation (NNPC) under-remitted N2.4 trillion to the Federation Account.

    The governor, who was visibly saddened by the situation, gave the impression that no state would be able to meet its target for the year 2014 as the 36 states of the federation are in serious financial problems.

    According to the governor, for the first time in almost 14 years of the nation’s democratic experience, the country has recorded walk-outs staged by commissioners of finance during meetings of the Federal Accounts Allocation Committee (FACC) in Abuja.

    He said the first one happened in 2011, while the country witnessed more of such walk-outs last year due to irreconcilable accounts of the federation.

    As a result, he said, some states have had to borrow to keep the government going.

    He said:“The reasons for those disagreements were largely reported revenue declines that were disputed by the various states as represented by their various finance commissioners,” he said, adding that the pattern had continued right from the second half of last year to January this year.

    “Now whilst this revenue decline has gone up, we have been unable to hold the National Economic Council (NEC) meeting in Abuja.

    “In the past, the meetings had held every month. The meeting has not been held now for, at least, six months in spite of clear revenue declines.”

    He said the NEC is a forum for the discussion of economic issues concerning the 36 states of the federation and it is made up of governors, the Governor of the Central Bank of Nigeria (CBN), the ministers of National Planning, Finance and others. The meeting is chaired by Vice President Namadi Sambo.

    He said the revenue decline should have been a major issue for discussion at the NEC meeting since the constitution of the country provided for it.

    Fashola reminded the House that he had always complained of decline in revenue and the inability of the state to meet optimal budget performances, lamenting that the government has left social services to meet welfare needs of personnel.

    According to him, the revenue declines are credited to “what is characterised as uncoordinated and discretionary application of the Federal Government’s fiscal policy on waiver and negotiating the duty credit certificates.”

  • Credit to Nigeria’s economy hits N14tr

    Credit to Nigeria’s economy hits N14tr

    The aggregate banking system credit (net) to the domestic economy grew by 3.4 per cent monthly to N14.09 trillion, Central Bank of Nigeria (CBN) Economic Report for November, last year has said.

    The report also said the figure showed a growth of 4.1 per cent compared with that of the preceding month.

    “The development reflected, largely, the 10.9 and 1.1 per cent increase in claims on both the Federal Government (net) and the private sector.

    “Over the level at end-December 2012, aggregate banking system credit (net) to the domestic economy rose by 10.98 per cent, due largely to the growth of 8.9 per cent in claims on the private sector,” it said.

    It said the banking system’s credit (net) to the Federal Government, on month-on-month basis, grew by 10.9 per cent to negative N2.3 trillion, compared with the growth of 17.0 and 22.9 per cent at the end of the preceding month and the corresponding period of 2012, respectively.

    According to the report, over end-December 2012, net credit to the Federal Government grew by 3.9 per cent, reflecting, largely, the 77.9 per cent increase in the banking system’s holding of government securities.

    “On month-on-month basis, banking system’s credit to the private sector, grew by 1.1 per cent to N16.4 trillion, at end-November 2013, in contrast to the decline of 0.02 per cent at the end of the preceding month,” it said.

    The report noted that, relative to the level at end-December 2012, banking system’s credit to the private sector rose by 8.6 per cent, compared with the 7.5 per cent increase at the end of the corresponding period of 2012.

    It said the development reflected, largely, the 8.3 and 9.8 per cent increase in claims on the core private sector and States and Local Governments, respectively.

    At N8.6 trillion, foreign assets (net) of the banking system at end-November 2013, fell by 2.4 per cent, on month-on-month basis, compared with a decline of 0.3 and 0.35 per cent at the end of the preceding month and corresponding period of 2012, respectively.

    The development was attributed, largely, to the respective decline of 1.5 and 6.4 per cent in the CBN and banks’ holdings of foreign assets. Over the level at end-December 2012, foreign assets (net) of the banking system fell by four per cent.

    “Other assets (net) of the banking system, on a month-on-month basis, fell by 0.6 per cent to negative N8 trillion, at the end of the review period, compared with the decline of 4.5 and 0.5 per cent at the end of the preceding month and the corresponding period of 2012. Over the level at end-December 2012, other assets (net) of the banking system fell by 28.5 per cent,” it said.

  • Stable economy, strong leadership

    Stable economy, strong leadership

    How can Nigeria’s economy be strenghtened? It is when business and political leaders focus on building sustainable institutions and processes that outlive them, say participants at the inaugural conference hosted by Access Bank in Lagos. They want banks to focus on long-term profits to stimulate the economy, COLLINS NWEZE reports.

    Building strong institutions, systems, processes and quality leadership are essential for Nigeria to develop and achieve its economic potentials, Coordinating Minister for the Economy and Minster of Finance Dr. Ngozi Okonjo-Iweala has said.

    The minister spoke during the inaugural Access Conference 2013 in Lagos. According to her, business and political leaders must be able to mentor youths on their experiences. She said an industrial policy on the type of cars to be used that will not pollute the environment was very important.

    On sustainable finance, she said Nigeria had taken steps to ensure that the principles are implemented even though it can be difficult to implement where there are many contending forces. Mrs Okonjo-Iweala said Nigeria has done a few things such as the phasing out of subsidies, which contributes to the utilisation of more of these resources as well as results in lower yields which eventually contributes to reduction in remission. She said the country has also witnessed reduction in gas flaring which is a contributor to environmental pollution by emphasising more use of gas than other sources of fuel.

    Continuing, Mrs Okonjo-Iweala said a politician needs to have a vision of where he is taking the country to as well as a passion to put in place steps that would take the people there. “It is not talked about often. Rather, short-term issues and diversionary issues take enormous amount of time. Going forward, this should be discussed often. The Economic Management Implementation Team discusses it, but not often. Younger people should take personal responsibility for themselves and not expect government to do things for them,” she said.

    Banks’ profit

    Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi said Nigeria’s banking is grounded on civil banking principles, adding that these principles are based on sustainability. He said banks should be focused on long-term profit rather than short term, adding that public offices should be made less attractive to ensure that office holders do not take advantage of their positions.

    The CBN boss said Nigeria needs strong leaders that would be able to galvanise sustainable economic development and mentor new leaders. “People should separate themselves from institutions, as no one is indispensable,” he urged.

    According to him, guidelines have been put in place for sectors, such as banks, oil and gas, power and agriculture to look closely on the type of businesses they do. For instance, he said banks are advised not to lend to people that are involved in bush burning adding that there is need to encourage investment in agriculture so as to conserve the environment. “Banks alone cannot carry out sustainability. Rather, they would collaborate with other sectors such as Ministry of Environment and develop guidelines, policies, regulations, trainings, finance and incentives,” he said.

    Banking leadership

    According to the immediate past Managing Director,Access Bank, Aigboje Aig-Imoukhuede, the bank under his watch has grown to become the fourth among 24 lenders with a customer base of six million, and an increase of capital to $1.5 billion.

    He said every leader is a child of history with experiences gained over the years deployed in influencing future leadership activities. He said a childhood experience, at age 10, of not being able to secure a seat in the aircraft on his flight back to Lagos from school, as every passenger fought their way into the aircraft, made him resolve never to be left on the tarmac again.

    Speaking further, he said following a four- month study at Harvard Business School and reading a book given to him by his father-in-law on how, as a professional, one could buy your own company, he discovered that the reason behind his agitation was the desire to own the bank he worked for.

    He said the dream of Access Bank was formed with a vision to create a world-class institution, owned and run by Nigerians. “An existing bank was acquired and the best hands were recruited. While I got the support of the Board and shareholders who saw credibility in me, Nigeria’s democracy which at the time was yielding dividends also influenced the success,” he said.

    Aig-Imoukhuede explained that banking is a special kind of business with a responsibility for larger corporate citizenry. He said that like a school, once one has the licence to run with the name, he has secured the trust of people who commit their most treasured possession without minding personalities behind the bank.

    “For a bank, people would walk in and entrust it with their savings. Outside of shareholders, depositors are a class of stakeholders that are given priority. The complication of banking is the management of depositors’ funds,” he said.

    He said there is high level of inequality in the country, adding that a corporate citizen still has the responsibility of contributing to the good of the society.

    Access Bank, he said, perceives itself as a flag bearer of change and has organised similar conferences in the past which has led to new laws in the country. “With her aspiration to be a world-class bank, comes the responsibility of making Nigeria world-class as the country is the natural constraint of the bank’s success. The bank thus embraces high standards in all it does,” he said.

    He said as a leader, one may experience certain threats, including threat to life and family from borrowers who have refused to pay. Nonetheless, if you do the right thing, there is nothing to fear.

    According to him, great leadership requires doing very bold things such as taking over a bank that is about to go under. “The acquisition of Intercontinental Bank was a tough bet and following the announcement, its share prices began to fall. The fear of failure was not out of the inability to execute the deal but in the regulator getting it right. From a study of global practices, the success of such ventures hangs on the courage of the regulator to make it happen. The leadership of the Central Bank of Nigeria (CBN) made it happen,” he hinted.

    Managing Director, Access Bank, Herbert Wigwe said the bank is a big fan of sustainability and has been involved in sustainability efforts since 2002. “Some of these initiatives are the Gender Empowerment Program, which was the first of its kind in Nigeria, and the bank was the convener of the International Financial Reporting Standards (IFRS) that is now adopted around the corporate Nigeria and Government,” he said.

    Leadership by example

    Chairman, Fate Foundation and Founder, GT Bank Fola Adeola said Nigerian leaders should also ensure that their actions have impact on the population. He said it is only when people’s lives are touched positively that one can say that leadership has achieved its objective.

    “The challenge of leadership is the time and space needed to make decisions. Leaders should be able to answer the question of ‘Why’ behind their leadership role or task. Leaders must respond to issues that come their way. The response of a leader to an issue will determine his greatness or failure. The purpose of the leader is to engender leadership across the organisation down to the bottom. As the saying goes, leadership emanates from the top but does not reside there,” he said. He said that when you have people around you who don’t question you, you are in a dangerous terrain.

    Access Bank Chairman Gbenga Oyebode said the event was essentially to discuss and share ideas on how to embrace sustainable leadership in a rapidly growing economy like Nigeria. The Access Conference aspires to capture the essence of good, sustainable leadership, highlighting what it means to be a leader in today’s world.

    He said former President of South Africa, Nelson Mandela epitomised the concept of sustainable leadership as shown in the fight for unity in diversity, his resourcefulness and his conservatism. He said Access Bank is committed to sustainable leadership, which can only be achieved by building sustainable leaders across the country’s landscape. Sustainable development must be an integral part of any economy for it to succeed.

    He said the conference provided viable platform to analyse leadership challenges and highlight some of the bank’s contributions towards promoting leadership. It also provided the best minds that would lead Nigeria and beyond through fruitful and interesting discussions.

    He explained the government and the private sector would jointly set a platform for sustainable leadership, living by example and providing opportunities to identify productive opportunities

    Global perspective

    The 43rd President of the United States of America, George Walker Bush advised the Federal Government to do more in fighting corruption by ensuring no one is above the law.

    Bush, who spoke on the theme: ‘Embracing Sustainable Leadership’, advised that Nigerians should be patient with democracy, but it is important for the government hold people to account by bursting corruption. He said the powerful should not escape the wrath of the law.

    He said Nigerian needs to have clear rules that are enforceable without prejudice and must hold government to account to honour agreements. “You must apply the law no matter how powerful somebody may be as this encourages entrepreneurship and economic development,” he said.

    He said he was impressed by the Nigeria’s potential adding that the best way to fight poverty is create entrepreneurs. He also said that it is in the United States of America interest to encourage economic growth in vital countries like Nigeria.

    According to him, it is also in the United States interest to create strong economies in Africa while calling for improved trade relations among African countries. “As President of a powerful and rich nation, I think it is important to set goals and also achieve them. It is important for us to encourage and stay engaged with other world economies,” he said.

    Continuing, he said: ”The most important job of the American President is to protect the homeland. So, when three planes attacked America in 2001, it turned a decisive moment during my tenure as the President. For me, the first plane was a mistake; the second one was an attack while the third plane was a declaration of war on America. So, I became a wartime president. One thing you have to understand is that when an American President says something, he makes sure it happens,” he said.

    Women empowerment

    Speaking on the global financial crisis, Former President of France Nicholas Sarcozy said he was able to build trust in the economy after he ruled out bailout for ailing banks. “The basics of banking, which is about helping businesses to grow, has been lost on a lot of banks who are now driven by financial deals,” he said. According to him, a country’s diversity is measured by contributions towards the empowerment of women.

    “The appointment of Christine Largarde; the first woman to attain that height of position in France as Minister of Finance was to get women involved outside of their traditional role of managing the home. This enhanced her appointment as the IMF President,” he said.

    Zarchozy said he has tremendous respect for women. His wife supported him all through the five years of his career and he feels the need to extend an equal support to her career as a singer. “While there is so much talk about the role of women, doing it is important,” he said.

    He said if America is coming to Africa, it is because the continent has a future it should be grateful for. This, he said, is because a business man is not sentimental. Friendship and confidence must be earned.

    “The crucial issue for Africa is how to organise itself and speak with one voice. If the voice of Africa; consisting of 54 countries, must be heard around the world, it would have to occupy its political seat. If Europe had not set up the EU, it would have been swept off the map of the world,” he said.

    Business models

    Former President of Costa Rica, Jose Maria Figuere said economic fundamentals and new business models are drivers of the maritime business when looking at the environment in a profitable, producing fashion.

    Figuere said countries should embrace a philosophy of sustainability that makes one more competitive and more resilient in withstanding shocks from the global economy. “Countries should have a vision and share it forward. Everyone should embrace development and not leave it to the government alone as this is a long term strategy,” he said.

     

     

  • Highs and lows of economy in 2013

    Highs and lows of economy in 2013

    Opinions are divided as to whether the nation’s economy lived up to par in the outgoing year. To some analysts, things are definitely getting better, while to some others, the economy, in terms of performance, leaves nothing to cheer about, reports Ibrahim Apekhade Yusuf

    As the Chinese proverb goes, “May we live in interesting times.” But to economic analysts, who have since begun a post mortem of the outgoing year, which literally winds down in just about two days time, there is nothing really interesting about the year 2013. And their reasons are as numerous as they are poignant.

    Year 2013 in perspective

    From banking and other financial-related services, oil and gas, telecoms, aviation, power, transport, agriculture and rural development, works and housing, tourism, labour, real and informal sector, industry, to mention just a few, the argument in many quarters is that there is still a lot of room for improvement despite the federal government’s claims to the contrary.

    Banking/financial services

    The banking and financial services sector recorded a lot of activities in the outgoing year, from fiscal policy initiatives to introduction of new rules of engagements.

    The ongoing cashless policy of the Central Bank of Nigeria (CBN) continued unabated, as the apex bank extended the policy to other states.

    Specifically, the cashless policy, which was introduced in Lagos in January 2012, was extended to Abuja, Kano Rivers, Ogun, Abia and Anambra States last July with assurances that it would rollout nationwide before June 2014.

    Deputy Governor of CBN, Tunde Lemo, who gave the assurance, explained: “We have been talking about how to enhance connectivity and one of the things agreed was to work with some service providers. But beyond that, we looked and decided what else to do, particularly outside Lagos now that we have rolled out the cashless policy to six other states. Today, we have licensed about 21 mobile money operators, so how do we now link mobile money to our PoS? If mobile phones can serve as touch points, our transactions would go up rapidly.

    “We hope to rollout to all the states by the second quarter of next year and we hope that by next year, as we roll out more PoS machines, we have to see how we can integrate the mobile phones into the network because in the hinterlands, the challenges would be more.

    The CBN also signed a contract of over $50 million (N8 billion) with DERMALOG Identification Systems for the deployment and implementation of a biometric system, which will help in resolving issues bordering on authentication, as well as check money laundering activities in the financial system.

    The Nation learnt the cost of the project would be borne by the CBN and all the banks and not the customers.

    DERMALOG is one of the world’s leading biometric identification companies and the largest biometrics manufacturer in Germany.

    Sanusi said an effective biometric system would boost the country’s image internationally and help extend credit to people without worrying about where to find them and who they are as well as enhance access to finance.

    The 2nd phase of the biometric data base is expected to be officially launched in February 14, 2014 across all head offices of banks and a branch of the banks, Sanusi declared.

    Healthier banks?

    First Bank, Zenith Bank, UBA, Access Bank and GTBank currently control over 70% of the market, and an estimated 80% of profits before taxes.

    To some financial pundits, the banks seem healthier now than in 2011, with the capital adequacy ratio (CAR), liquidity ratios and the level of non-performing loans well within Central Bank recommendations.

    But at the beginning of the year, one of the policies, which informed financial sector watchers fear may affect the bottom-line of banks, was the decision of the Bankers Committee to remove charges on ATM transactions.

    According to the international financial advisory firm, Renaissance Capital, Rencap, the fact that individual banks will have to bear the cost of ATM transactions (the N100 ($0.67) charge) was a signal that banks had no choice but to prepare for additional costs.

    For instance, Rencap said, “In our view, the banks with the largest ATM networks should be the least affected, as their customers are more likely to use their respective bank’s ATM machines. This should, generally, favour the Tier-1 banks over the Tier-2 and smaller banks. We would expect the banks to try and recoup these costs via other charges, which are either 1) unregulated, or 2) where the banks are charging below the allowable cap.”

    The Tier 1 Nigerian banks, as defined by asset size and market share, are: Access Bank, First Bank of Nigeria (FBN), Guaranty Trust Bank (GTB), United Bank for Africa (UBA) and Zenith Bank.

    Banks classified in the Tier 2 category in terms of assets and capitalisations are Diamond Bank Plc, Sterling Bank Plc, Fidelity Bank Plc, Skye Bank Plc, Stanbic IBTC Plc and First City Monument Bank Plc, among others.

    The fear of the anticipated recourse to measures, which will amount to flouting the rules, was further accentuated by the possibility of a removal of commissions on turnover (COT), another source of revenue for banks.

    Banks also had to contend with the reality of the recent increase in Assets Management Corporation of Nigeria (AMCON) levy, which came into effect this year.

    In its explanation of the emerging scenario, Rencap stated, “For most of the banks under our coverage, we estimate that the increase in the AMCON levy from 0.3% to 0.5% implies about a c. 3-4% increase in total operating costs, holding all other factors equal,” adding that to simply stand still, banks will be required to offset this increase by an absolute decline in their other operating costs.

    “In our view, few banks will be able to achieve a 100% offset, resulting in some upward pressure on cost bases.”

    The bridged banks

    The three bridged banks (now owned by AMCON) tried to put the banks in strong footings before eventual disposal to interested buyers. According to the CBN, the banks were in very bad state before the bridging. Unfortunately, there is no public information about the current state of the banks’ financial performance.

    However, given the record turnaround in its activities, Mainstreet Bank undoubtedly stands out among the three banks. The bank management has not only returned the bank to profitability but it has also put in place a cocktail of measures to reclaim its eminent position in the banking industry. The success recorded by Mainstreet, however, runs contrary to what obtains at Keystone Bank, which is being sought after by some foreign investors from South Africa.

    Foreign direct investment

    in stocks

    The United States, US, invested $50 million in Nigeria’s economy in 2013 alone.

    Confirming this development was Consul General, Jeffrey Hawkins, during a courtesy visit to the Nigerian Stock Exchange (NSE) last October.

    He said that Nigeria was a growing economy and assured that the US government would help in growing the economy.

    He pointed out that no country can progress without capital market investment, saying that the US was building a solid trade framework with the Nigerian government.

    He urged the NSE to create a transparent environment that will attract investors to the Nigerian capital market.

    The CEO of NSE, Oscar Onyema, while welcoming the US Consul General, said Nigeria has a strong relationship with the US government, saying that the Stock Exchange would support the relationship and economic activities between the two countries.

    He added that the Exchange would also drive friendly portfolio investments from the deepest market (New York Stock Exchange) in the world to emerging market which has the highest return on investment in the world.

    Relatedly, the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, while scoring the nation’s economy high, easily alluded to the performance of its $1billion euro bond, which was oversubscribed by foreign investors, a development, she noted, is self-evident that the country is in perfect financial footing.

    Alhaji Aliko Dangote

    Alhaji Aliko Dangote, Africa’s billionaire, also made a good showing in the outgoing year with his investment in major commanding heights of the economy, including refinery,and manufacturing. His investments, according to analysts, raised the stakes higher for the economy.

    Diminishing foreign reserves

    The nation’s foreign reserves which had an appreciable outlook earlier in the year, suffered a downward spiral. From an all-time high of $56billion in mid 2013, it slumped to $44billion as at December 17, losing $700million in one month. The reserves, which stood at $44.8billion in November 18, maintained steady fall in the last three months. The reserves were at $44.6billion as at November 27, contrary to $45billion recorded in October 14.

    Data obtained from the CBN website showed that at $45.2billion, the reserves had increased by $200million from October 14 to 28, before dipping further.

    Soaring interest rate

    A survey conducted by the World Bank in mid 2013 showed that the country boasts of the highest interest rate anywhere in the world. The benchmark interest rate retained currently is 12 per cent, which, experts have argued, is the highest in the world.

    Hike in tariffs

    An overview of the economy in the first quarter of 2013 showed that fiscal policy apparently leaned towards protectionism judging by the new tariff hikes for rice and sugar, with brown rice and polished rice attracting 100% levy, 10% duty while raw sugar attracted 50% levy,10% duty, refined sugar: 60% levy, 20% duty. The new tariffs, like the previous ones, the federal government noted was to protect “nascent industries” within the country.

    Increased tariffs will likely push up consumer prices, as it becomes more expensive to import these items. Spending more money on basic items like rice and sugar could reduce disposable income.

    Soaring unemployment

    in 2013

    Unemployment crisis reached an all-time high in 2013. The former Chairman of the Subsidy Reinvestment and Empowerment Programme (SURE-P), Dr. Christopher Kolade, was one of those who raised the alarm about the troubling unemployment situation as he lamented the high unemployment rate in the country, saying over 40 million Nigerians are jobless.

    Those at the Nigeria Employers’ Consultative Association (NECA) were no less bothered about the worrisome unemployment situation in the country.

    NECA President, Mr. Richard Uche, in his review of the Nigerian economy 2011 and 2012 budget noted that the past one year had indeed brought mixed fortunes for employers, with very little to cheer for the entire organised private sector even as he decried the rising job crisis.

    Experts say the figure of 23.9 per cent unemployment published by the National Bureau of Statistics has probably risen, swelled by thousands that have since left school, completed the mandatory National Youth Service Corps scheme or been retrenched since the data was collated in December 2011.

    Among the youths – the most productive segment of any population – over 50 per cent, according to the NBS, are said to be jobless though the World Bank puts the figure at 56 per cent. The Ministry of Labour and Productivity acknowledged in 2011 that over 41 per cent of Nigerian graduates can’t secure jobs after their youth service year.

    Little wonder, analysts observed, is the reason why President Goodluck Jonathan bought into the cosmetic Youth Enterprise and Innovation (You-Win) programme sold to him by the Finance Minister and Coordinator of the Economic Management Team, Ngozi Okonjo-Iweala, which thankfully recorded its first 15, 000 jobs out of the projected 80,000-110,000 jobs over three years at the cost of N10 billion. The government is also promoting Community Services, Women and Youths Employment Project under the controversial Subsidy Reinvestment and Empowerment Programme that targets employing 320,000 unskilled youths, women and the physically challenged each year. Laudable as these seem, they are too little and are not even guaranteed to succeed. But with over 40 million educated youths roaming the streets in search of jobs, analysts have argued that it is bold measures and not cosmetic arrangements that can help to create jobs.

    Telecoms

    The nation’s telecoms sector was bullish in the outgoing year, with subscribers’ base increasing substantially. The Nigerian Communications Commission (NCC) also mandated that SMS rates must be N4/SMS or less for all networks (down from an average of N9).

    The much-touted Mobile Number Portability, which was a major feature in the sector, however, recorded minimal progress, as only about 50,000 subscribers out of 10 million were able to successfully change from one network to the other after the introduction of the MNP.

    The Executive Commissioner, Stakeholders Management, NCC, Mr. Okechukwu Itanyi, said the purpose of the meeting was to bring together consumers, service providers and regulators together in order to address consumer-related issues.

    Itanyi, who was represented at the forum by the Deputy Director, Consumer Affairs, NCC, Mr. Femi Atoyebi, said many of the consumers willing to take advantage of the portability programme lacked the knowledge of the processes involved, while several others were flouting the instructions.

    He said it was important for the NCC to address the problems of MNP because of its usefulness in reducing tariffs and bringing healthy competition to the industry.

    Perhaps, one heart-warming decision by the NCC, which resonated very well with the public is the imposition of N5million and N500, 000 fines respectively on telcos which fail to address defects within its networks.

    A cross-section of the public who commented on this development said it was perhaps the only achievement in the sector, but they were, however, quick to add that the fines may go in the way of others if not backed by enforcement by the NCC.

    Controversial auto policy

    The auto policy is perhaps one of the policies introduced by the federal government in last October, which generated a lot of heated debate.

    Justifying the new policy regime by the federal government, Minister of Trade and Investment, Dr. Olusegun Aganga, had noted that the measures will help government to save as much as N550 billion ($3.5 billion) through the reduction of imports by increasing the import duties on second-hand cars by 48 per cent to transform the automotive sector, as part of its industrial revolution plan.

    But stakeholders picked holes in the policy outright. For instance, members of Lagos Chamber of Commerce and Industry, LCCI, expressed concern over the auto policy, describing it as having potentially harmful effects on the economy and the welfare of Nigerians.

    They said that Nigeria’s import dependency is only a manifestation of deeper issues of low productivity, weak competitiveness and flawed foreign exchange policy in the domestic economy.

    A release from the Chamber by its president, Goodie Ibru, said: “The LCCI notes with concern the recent sharp increases in the import tariff and levies on motor vehicles.

    “The policy has potentially harmful effects on the economy and the welfare of citizens.

    “As a major stakeholder in the economy, the Chamber welcomes a policy thrust that seeks to promote self-reliance in the Nigerian economy because there is great value in domesticating spending.

    “However, in pursuit of this laudable aspiration, proper policy sequencing is imperative.

    “Import dependency is only a manifestation of deeper issues of low productivity, weak competitiveness and flawed foreign exchange policy in the domestic economy.

    “It is inappropriate to begin the pursuit for a self-reliant automobile sector with the imposition of high import tariff on vehicles, when there are fundamental supply side issues to resolve. Without a good foundation the superstructure cannot stand in any economy.”

    LCCI suggested that “there should be robust consultation with stakeholders in the entire value chain of the automobile sector to develop a sustainable road map for the development of the sector, which shall also take account of appropriateness of timing and sequencing of policies.

    “The framework for the utilisation of the automotive development fund should be reviewed to ensure proper targeting for the development of domestic capacity for the automobile sector.

    “The focus of policy at this time should be on the development of a strong supply side capability, especially in the iron and steel, petrochemical, glass and other ancillary industries.”

    It said that the recent tariff review would lead to the escalation of smuggling of motor vehicles with corresponding loss of revenue to government.

    The Chamber added that ethical players in the sector will be crowded out of business because of the weak institutional capacity to ensure compliance with the new tariff, as well as the porosity of the borders.

    Trail of controversies

    in aviation

    Aviation sub-sector had its fair share of controversies in the outgoing year, as the Minister of Aviation, Stella Oduah, literally leaped from one bobby trap to the other.

    Just as the dust generated by the airport remodelling exercise was yet to die down, SaharaReporters broke the news of the purchase of N255million two bullet-proof BMW cars by the NCAA for the minister’s riding pleasure, just as airlines were still struggling with high levels of taxation, high interest on loans/financing, and high maintenance costs.

    Some airlines, like Dana Air, were forced to shut down operations by the NCAA for flouting extant rules.

    Perhaps, the latest information from the sector is the federal government’s plan to merge Aero and Air Nigeria to become Nigeria’s new national carrier, Nigerian Eagle, a development which has continued to generate controversy among stakeholders.

    Privatisation of PHCN/sale

    of power plants

    The power sector witnessed a flurry of activities, one of which was the sale of 10 new power-generation stations built by the three tiers of government through the Niger Delta Power Holding Company Limited (NDPHC).

    The stations, which have a combined design capacity in excess of 5,453 megawatts, are Alaoji Power Plant, Aba, Abia State; Ihovbor Power Plant, Benin City, Edo State; Calabar Power Plant, Calabar, Cross River State; Egbema Power Plant, Owerri, Imo State; Gbarain Power Plant, Yenagoa, Bayelsa State; Geregu II, Ajaokuta, Kogi State; Sapele II, Sapele, Delta State; Olorunsogo II, Olorunsogo, Ogun State; Omoku II, Port Harcourt, Rivers State; and Omotosho II, Okitipupa, Ondo State.

    The country has spent over $8 billion building these plants and is expected to make $6 billion from divesting 80 per cent of governments’ shares in them. Expression of Interest (EoI) for the facilities closed by 5pm on Friday, July 19, 2013, and 110 private companies beat the deadline.

    The Bureau of Public Enterprises (BPE) later announced a shortlist of successful bidders on August 8, 2013, with the hope that the stations would be transferred to the highest bidders between June and July 2014.

    The BPE also hinted of plans for the 10 National Integrated Power Plants (NIPPs) across the country to be privatised in January 2014.

    The Director General of BPE, Mr. Benjamin Dikki, disclosed this last Monday in Abuja at the signing of Share Purchase Agreement (SPA) for the sale of the remaining two former Power Holding Company of Nigeria (PHCN) firms.

    The firms are the Afam Power Plc in Delta State and the Kaduna Power Distribution Company which were sold lately to Televeras and Northwest Power Limited respectively.

    Dikki said that the planned sale would complete the power privatisation agenda of the government.

    According to him, the government will continue to make such investment until there is enough power for the people in the country.

    Discordant tunes on

    state of economy

    While giving his perspective on the nation’s GDP growth, Mr. Henry Boyo, an economist, said it was wrong to confuse cosmetic changes for reality.

    Specifically, he said, most of the permutations about GDP growth, whether at the state or national level, need to be properly re-examined.

    According to him, “You can’t have a successful economy when the level of unemployment is high. GDP growth rate is not reflected in the level of employment. When there is no industrial consolidation, it is true that the country may have achieved 6-7 per cent GDP growth but when you consider the untapped socio-economic potentials which can possibly make us get an excess of 15 per cent GDP every year, then you can say we still have a long way to go.”

  • Sustaining the economy through SMEs

    The Managing Director, First Registrars Nigeria Limited, Mr Bayo Olugbemi, has  made a strong case for investments to promote entrepreneurship and promote small businesses to stabilise the economy.

    Olugbemi,who was represented by the Group Head,Business and Development,MrAbayomi  Oluwato,  was addressing the  SME connect conference organised by Business Impact Limited to celebrate the 30th birthday of its Chief Executive,Mr  Olatunde Samson in Lagos.

    He   said the  small  businesses and entrepreneurs  can  promte  determine economic growth and  a number of steps need to be taken to boost their  confidence.While observing development trends in the economy, Olugbemi  noted that the stimulus behind rapid development and sustainability of the economy  is the industrious performance of their Small and Medium Enterprises Sector (SMEs).

    He noted that SMEs stabilize economic growth and drive economic development  as  such businesses comprise a widely divergent spectrum of establishments. He  said they engage in economic activities ranging from small-scale enterprises to modern industrial units using sophisticated technologies.

    Though recognised as a priority sector, Chief Executive ,Business Impact Limited,Mr Olatunde Samson said  small businesses often have difficulties financing growth and innovation.

    He  said  there was  a need to focus on SMEs and their performance – and keep them engaged at all times in order to promote and maintain stability and sustainability in their operations.

    Growth in SMEs ,he  continued broadens and diversifies the foundations of an economy, by creating a large variety of self-sustaining business units. This,Samson maintained  helps to mitigate industrial risks and accelerate commerce towards novel business avenues, while encouraging innovation and differentiation among products. He  said the  Business Growth Conference (BGC), now tagged the “SMEs Connect”; atop-notch quarterly business summit put together by the BusinessImpact Group (BIG).The Objectives of the SMEs Connect,he listed  include:helping participants develop the right skills and attitudes forcreating and growing lasting business and career,providing ready mentorship and support for participants especially inareas such as business management, planning and marketing and connecting participants with seasoned mentors.He  said , every edition of the SMEs Connect is endowed with noteworthy speakers and discussants; personalities who are makingwaves in career and in the business world. The spectrum of personalities include Dr Sunday Ojeagbase (MD/CEO of Chairman ofSuccess Attitude Development Centre and Complete Communications Limited), Mr Fela Durotoye (President, Gemstone Leadership Institute),Olumide Emmanuel, Steve Harris and Niyi Adesanya, Lanre Olusola tomention a few.

    “Today, several millions of people in Africa are immersed in the bog of poverty and unemployment. Hence the need to swing into action tosalvage our common future by developing sturdy entrepreneurs and career giants that will stand the test of time.”

    Samson said  the  conference was designed to bring  stakeholders in the SME sector  to discuss issues confronting entrepreneurs  and look at the various strategies to  support  young  Nigerians trying  to  explore opportunities within  the sector .

    According to him, the sector has huge potential in generating employment and alleviation of poverty.

    The sustained and long-term growth of SME sector,he  noted remains constrained by a number of factors on both demand and supply side.

    Most SMEs face issues such as lack of formal business management skill, poor maintenance of accounts, lack of business planning, etc.

    He said a  sustainable solution requires that  players  take a more holistic view of the problem.

    He  urged   stakeholders  to work together in a coordinated and cohesive manner to ensure sustainable growth of SMEs especially removing the hurdles in the way of their easy access to finance.

    According to him, matchmaking and preparing entrepreneurs for investment were the two main goals of the  SMEs  Connect  conference. He   stressed the importance of defining and evaluating focused strategies to help SMEs  do  business better .

    He  said: “The conference provided a great opportunity for  entrepreneurs  shape the right strategies and support to enable them to successfully  do business .

    Though ,the challenges by economic crisis carry both risk and opportunity for SMEs, the Chief Executive, NEO Media and Marketing, Ehi Braimah  said there are opportunities  for young Nigerians to explore  and make a living.

    According to him, the  key to sustain a high growth rate is self employment and  entrepreneurship. Braimah pointed out that opportunities were available in virtually every sector of the economy.

    Nigeria, he  noted, offers a variety of investment opportunities.

    The event featured a launch of a biography of Mr Olatunde.

  • Govt to boost economy activities

    Govt to boost economy activities

    One of the ways to increase commercial activities in any society is to make the road network perfect.”

    This was the submission of the Chairman of Mushin Local Government Area, Hon. Olatunde Adepitan, at the stakeholders meeting held at the council secretariat to carry the residents along on the road construction project of the state government.

    “His Excellency has once again come to the rescue of the people of Mushin Local Government. The road linking Isolo to Mushin from the Oshodi-Apapa-Express Road to Mushin Market from Agege Motor Road, has kicked off,” the chairman said.

    Speaking at the meeting, the Special Adviser to the Governor on Works and Infrastructure, Mr Ganiyu Johnson, said the governor considered the strategic location of the road and the tremendous impact on road users. He appealed to residents to cooperate fully with the contractor to complete the work on schedule.

    He said no building would be demolished in the course of the road construction, adding “ those who observed the right of way have no reason to fear. For those who encroached on the right of the way, the encroaching area will be affected to the extent of the defaulting, for those whose fence has been removed, the constructor will rebuild the fence to restore the security of the people”.

    Johnson also assured the residents that all the providers of basic amenities like water corporation, telecommunication have been contacted to re-lay their cables so that the users of these items would not be affected in any way.

    He asked the residents if they would support the construction going on in their area and they answered in affirmative, saluting the administration of the Governor of Lagos State Mr Babatunde Raji.

    A community leader in Mushin, Mr.Ade Shoyebo, said: “The prize of land and accommodation will appreciate astronomically; the residents are very lucky because of the dualisation of the strategic road”.

    Johnson said for those whose houses might be affected slightly and have genuine complaints, compensation would be paid by the state government.

    Present at the meeting were the Assistant Director, Ministry of Works and Infratructure. Mr Akindele Ayinde; Assistant Surveyor-General, Lagos State, Mr Sarafa Lawal; His Royal Highness, Oba Lateef Dauda, the Onitire of Itire Land; the Olu of Mushin, Oba Fatai Aileru; Council Manager, Mushin Local Government, Mr Rasaq Olayinka, landlords, tenants, artisans and others.

     

  • Standards & Poor’s rates economy, banking as high risk

    Standards & Poor’s rates economy, banking as high risk

    •There is strong potential for asset and equity price bubbles

    •AMCON is a major distortion

    Standards & Poor’s Ratings Services has classified economic and banking industry risks as ‘very high’ in a report that underlined fears about Nigeria’s lop-sided economic growth and wealth distribution and the changes in the banking industry.

    In its ‘Banking Industry Country Risk Assessment (BICRA)’, which focused on Nigeria, Standards & Poor’s (S & P) rated the country’s overall economic risk as eight and banking industry risk as seven on a scale of one to 10. In a breakdown of the risk assessment, S & P scored Nigeria as ‘very high risk’ in terms of economic resilience, ‘intermediate risk’ in terms of economic imbalances and ‘extremely high risk’ in terms of credit risk in the economy.

    The report scored Nigeria’s banking industry’s institutional framework and competitive dynamics as ‘very high risk’ while the industry’s system-wide funding was adjudged to be of ‘intermediate risk’. The report however noted government’s support for the banking industry.

    According to the report obtained by The Nation, Nigeria’s economic risk was a balance between the country’s considerable natural resources and improving economic diversification and low wealth levels, persistent political risks, and large infrastructure deficiencies.

    “The economy depends, however, on oil revenues, and we consider that there is a strong potential for future asset and equity price bubbles. The main source of economic risk stems from Nigeria’s very weak payment culture and rule of law, poor underwriting standards, and high credit concentrations and foreign currency lending,” the report stated.

    It explained that the economic risk score for Nigeria was based on economic resilience, economic imbalances, and credit risk in the economy.

    The report noted that Nigeria’s strong economic growth and improving diversification were being held in check by oil dependence, low wealth and infrastructure deficiencies pointing out that dependence on oil has been a major catalyst for corruption.

    According to the report, Nigerian economy is expected to expand by about 6.4 per cent per year through 2013-2014, which is strong in a global context. Considerable natural resources support the economy, but the non-oil economy has largely fueled growth for the past few years. Key non-oil growth sectors include agriculture, trade, and services. Positively, this should broaden economic diversification and create opportunities for the banking sector.

    “Nevertheless, we expect the economy, exports, and government revenues to continuing depending on oil in the near term, which exposes domestic economic stability to oil prices. The reliance on oil is also, in our opinion, a catalyst for corruption, political interference, and internal security problems, while the majority of the population has yet to receive any real benefit. Nigeria remains a low income country, with per capita GDP that we estimate will remain below $2,000 over the next two years. Furthermore, there are significant shortcomings in physical, commercial, and legal infrastructure,” the report stated.

    S & P stated that ahead of the 2015 elections, political risk will likely increase and could stymied the reform process in the power, agriculture, and infrastructure sectors.

    “We remain more skeptical about real reform in the natural resource sector due to entrenched interests. Generally, we believe the country’s weak rule of law, along with corruption, will act to restrain growth and pose a continuing risk to the banking sector,” S & P stated.

    It pointed out that Nigeria’s restrained expansion understates the potential for high growth and large imbalances.

    “In our opinion, Nigeria could be exposed over the longer term to inherently high economic imbalances, including periods of credit volatility. This is because its wealth—supported by the country’s immense natural resources—is overly concentrated geographically, industrially, and among its population. In our opinion, this leaves asset prices vulnerable to systemic shocks, such as heightened political risk or a sharp drop in oil prices,” the report concluded.

    While the report noted that regulation and supervision under the Sanusi Lamido-led administration at the Central Bank of Nigeria (CBN) have been far more effective than in the previous regime, it however expressed apprehension that there could be a lapse when the CBN Governor steps down.

    “We view the trend for industry risks in Nigeria’s banking system as negative. In our opinion, mounting competition could push up the appetite for credit risk, particularly among the sector’s lower- and middle-tier banks. This in turn could lead to loosening underwriting standards. The change in the Central Bank of Nigeria’s leadership could in our view alter the positive regulatory developments of recent years, as well as the guarantees and support for lending in preferred (as defined by the Central Bank of Nigeria) sectors. This may further threaten the business models of lower-tier banks,” the report noted.

    The report noted the strong recovery at the Nigerian stock market, which prices have recovered strongly since mid-2012, with inflation-adjusted equity prices growing about 33 per cent in 2013, but it cautioned that Nigerian Stock Exchange is prone to volatility, illiquidity in bearish periods, and rapid growth.

    The Nigerian banking industry’s risk was based on S & P’s assessment of the institutional framework, competitive dynamics and system-wide funding.

    According to the report, Nigeria’s banking regulation and supervision assessment as “intermediate” strongly factors in the proactive intervention of the Central Bank of Nigeria during the 2009 financial crisis, which is thought to have averted a systemic failure. It also takes into account the central bank’s efforts to improve governance and oversight of risk management over the past three years. Nevertheless, staff and data capacity issues remain, as do gaps in the regulatory framework with regards to market, operational, and interest rate risk. Furthermore, the report raised concerns about potential long-term political influence at the central bank.

    It described regulatory track record and corporate governance in the Nigerian banking industry as “weak” noting that in 2009, 10 out of 24 banks, which represented between one-third and one-half of system assets, failed and had to be “quasi-nationalized” due to serious corporate governance deficiencies and reckless lending practices.

    “We regard governance and transparency in the Nigerian banking sector as “weak.” Positively, domestic banks started reporting according to International Financial Reporting Standards at year-end 2012. Increasingly, half-year and quarterly statements are available. We don’t expect implementation of Basel II or III within the next two years. Despite the efforts of the central bank to increase transparency and governance, for example through the reporting of related-party lending or by limiting tenure of bank managing directors, we still believe aspects of ownership, management, and governance lead to additional risk,” S & P stated.

    The report underlined that Nigerian banking industry’s competitive dynamics’ rating represented the structural implications of the competitive landscape that a bank faces within the broader banking industry, which is determined by risk appetite, industry stability, and market distortions.

    The report singled out the Asset Management Corporation of Nigeria (AMCON) as the only major distortion in the financial market noting that though it had played a main role in supporting the banking sector by purchasing nonperforming loans and recapitalizing failed banks, AMCON’s continued presence represented a major distortion.

    According to the report, AMCON remains a significant shareholder in the banking sector, through its direct ownership of the three quasi-nationalized banks, share collateral from margin loans, and a sizable liability with the Central Bank of Nigeria while all banks also have to pay 0.5 per cent of total assets to AMCON yearly to pay off past bad debt.

    “The Nigerian banking sector has undergone two major consolidation periods in the past 10 years. In our opinion, the second phase is close to an end, although the future of the three quasi-nationalized banks remains unclear. As the new industry landscape clears, we expect competition to increase and the sector to continue to organize itself into three distinct tiers. Most rated banks are in the upper and middle tiers. Positively, with 21 banks operating in the sector, we don’t believe there is any significant overcapacity because of inherently low leverage and retail penetration, as well as strong long-term economic growth fundamentals. We anticipate stiff competition, however, on at least two fronts: attracting low-cost retail deposits in a country with low banking penetration, and banking large corporates together with their staff, third-party suppliers, and distributors. We believe foreign banks will continue to attempt to enter the sector in 2013-2014, but barriers to entry remain high for banks without significant capital or scale,” the report outlined the industry stability outlook.

    S & P will today discuss its expectations about the risks and growth of Nigerian financial services over the next two years at a complementary seminar scheduled for Lagos. The seminar will look at Nigeria’s sovereign ratings in the context of political manoeuvring before and during the 2015 general elections which could undermine the reform process, increase regional tensions or derail Nigeria’s currently positive economic growth and diversification story.

     

  • ‘Education is not enough to salvage Nigeria’

    ‘Education is not enough to salvage Nigeria’

    Whose responsibility is it to boost the reading culture – government’s or yours? Is education, writing or force enough to salvage society from drowning under the rising wave of corruption? These and the questions of writers’ security formed the discourse at the star-studded 3rd Mu’azu Babangida Aliyu (MBA) Colloquium in the Niger State capital, Evelyn Osagie reports .

    At a time when Nigeria is saddled with wave of corruption and politically-induced terrorism, writers have been urged to wake up to their responsibility as gatekeepers of society.

    With one voice, intellectuals and politicians drew allusion to the role of writers and creative writing in nation-building at the MBA International Literary Colloquium held last week in Minna.

    With the theme: Creativity, Youth and National Development, guests said it is the duty of writers to set agenda for and reprimand erring leaders, while spotlighting characters that serve as excellent role models for the young. Such moves, according to them, would ensure that sanity is restored to the polity.

    The literary and intellectual feast, which is in its third edition, was part of activities marking the birthday of the Niger State Governor Dr Mu’azu Babangida Aliyu. The colloquium, which had featured the Nobel laureate Prof Wole Soyinka and critic and poet Odia Ofeimun, had as keynote speaker, Ghanaian scholar and cousin of the late poet Kofi Awoonor, Prof Kofi Anyidoho and Secretary-General, Pan African Writer Association (PAWA), Atukwei Okai as special guest, among other dignitaries, including former President General Ibrahim Badamosi Babangida (rtd) and Rivers State Governor Rotimi Ameachi.

    Ameachi said writers in the country are no longer writing about the ongoing recurrent issues in Nigeria. Worrying whether the politicians have bought them over, he tasked the authors to sit up, saying writing about on the happening in the country would put leaders and politicians on their toes. He urged them to become proactive by writing things that will bring change to the nation.

    He said: “Why are writers not writing about the ongoing recurrent issues in the Nigerian society? Have we, the politicians, bought over the Nigerian authors? Why have the writers not been able to write about the oil subsidy? Why has someone not been able to recreate these issues and be able to compare hunger to the dwindling of our wealth?

    “Why was Achebe able to write A man of the People, the comedy of the Nigeria politics in the 60s and nobody have been able to characterised the current politicians now? Why are we not writing all those things that will change Nigeria?”

    Ameachi, who also received an award from the Servant Leadership Initiative of Africa with Senator Oluremi Tinubu, added that people will not be able to rise up to their rights if all they read are about how wonderfully the governors and politicians are doing, noting that the writers should endeavour to ask questions that would make leaders accountable.

    “Where are the new Wole Soyinkas? Where are the new Niyi Osundares? We should be touched by what the politicians are doing to begin to recreate new things or are we now expert at looking when our society is being ravaged by hunger?”Ameachi said.

    While urging writers and Nigerians to probe the reduction in the revenue on the sale of oil, Niger State Governor insisted that the Central Bank of Nigeria be made accountable for the shortfall in the federation account since May this year.

    Harnessing the creative ingenuity in the youths for national development, he said, is the responsibility of all, observing that the fall in the standard of education has also affected the reading culture. He noted that reviving the reading culture is the responsibility of all, saying youths need credible role models and system where older generations would mentor the younger generation with opportunities to contribute to national development.

    “Reading campaign should not be government assignment but that of the family and the society at large. We must bring back the book for the development of the nation. It is indeed our collective duty to provide compulsory and free education create jobs instil moral instructions in our youths from home and in schools, discourage desperate politicians from engaging youths in thuggery banditry and terrorism.

    “We must, however, work towards reliving the period 1960 to 1980 where Nigeria youths had considerable opportunities. The economy flourished, education was expanded universities multiplied and school enrolment increased at all levels of learning while job opportunities available for all disciplines. When we were poor, we were morally upright, we must go back to the past and borrow example from leaders like the late Saduna, Sir Ahmadu Bello, who were morally upright and cared about the plight of the people.”

    To the youth, he said: “I was brilliant but not bookish. You must balance up,” Aliyu said.

    The event also featured lots of metaphoric allusions that saw writers like the late poet, Kofi Awoonor, who died in September, and Festus Iyayi, whose death was announced during the colloquium, as peg for true leadership in national development. From their passion to their death, both men had lots of things in common, it was said. They were said to have lived their passion to the very end, using it as an tool for social change. Both were also said to be men of courage who died in active service to humanity. Leaders were enjoined to borrow a leaf from the lives of the two men.

    Anyidoho, a counsin of Awoonor, said of the poet: “I wish to identify two of such sources of influence: models of courage and creative execellence found in the poet’s ancestral traditions; and the examples of revolutionary political vision and principles of economic and social justice that drove the nationalist movement which culminated in the era of Africa independence.”

    Ahmadu Bello University, Zaria, Dr Abubakar Saddique reiterated Anyidoho’s words, saying education is not enough to salvage society. He added that leaders should blend educational excellence with vision and character, if society is to move forward, observing that Awonnor was not afraid of death because of the legacies he left behind, which are worthy of emulation.

    “A writer, who is faithful to his profession, will not die. It is the same thing as a leader who leaves behind legacies – he would be remembered when he is dead. Will knowledge and wisdom alone do wonders? Corruption in the country is done by those who should know better. Nigerians with the best of education ended up as leaders and ran the country down. Yet, their wisdom was not enough to save the country. Much as knowledge is important, leaders who come to power without having any plan in place, plan to fail. Knowledge and wisdom is not enough; people with vision are the answer.”

    Other dignitaries in attendance, included the Etsu Nupe, Alhaji Yahaya Abubakar, who represented the Sultan of Sokoto, Alhaji Sa’ad Abubakar; Former Minister of Power, Hajiya Zainab Ibrahim Kushiand Deputy Vice Chancellor (Academics), Kaduna State University, Dr Ahmad Babajo Kofa.

     

    The book at your doorstep

     

    Three years into the proposed Bring Back the Book Campaign by the presidency, the “book” is yet to leave the shelves. The gap between the book and its lovers seem to be widening as nothing is being said about policies and programmes that would boost the dwindling reading culture and make books affordable and accessible to readers, book lovers, parents and children.

    Imagine living and dreaming of reading a book like Things Fall Apart in a remote area and having the doorbell ring and, there, you have it before your eyes – a book peddler with your dream book, yours for the taking, and, at an affordable price. Such dream may not be farfetched.

    Moved by the challenges of accessibility and affordability that parents and book lovers, especially in remote areas, are faced with, the Niger State government through its Book Development Agency, unveiled the MBA Bookhawker Scheme along with a mobile bookshop to take the books to the readers doorstep. It was one of the highlights at the MBA literary colloquium. It was commissioned by Okai.

    For book lovers, especially children and their parents in Niger State, it is no more worries about transport fare and waiting for several weeks or months before the book is delivered.

    According to the Director of the agency, Baba Mohammed Dzukogi, the scheme is a mobile book distribution outlet designed to revive the reading culture, especially among the young, for a better society.

    While commending the state governor for supporting and promoting writing and writers’ association in the state, Okai urged the young to make good use of the opportunity that is given to them. “We are here talking about the development of the nation through the development of the youth. We are happy that a government in Nigeria is doing something about it and we pray others would do likewise. I thank the Chief Servant and his Ministers for supporting ANA in the way they have been doing,” he said.

    Kofa said called for sustainability of the project, saying: “Every Friday, as we go to pray, you find lots of people selling all sorts of books at the mosque which gives people an easy access to books. After praying, they also buy books. It is commendable that the government and agency has borrowed from this traditional behaviour and is sustaining it. If they can sustain it, others would borrow a leaf from their example.”