The Nation Newspaper

Tag: Fed Govt

  • Fed Govt inaugurates SON, CAC boards

    Fed Govt inaugurates SON, CAC boards

    The Federal Government, yesterday inaugurated the Boards of four parastatals under the supervision of the Ministry of Trade and Investment.

    They are the Standards Organisation of Nigeria (SON), Corporate Affairs Commission (CAC), Nigerian Export Promotion Council (NEPC) and the Oil and and Gas Free Zone Authority (OGFZA).

    The CAC’s 10-member board is led by Mr. Funsho Lawal, as Chairman. Other members include Prof. Adedeji Adekunle and Dr. Ausbeth Ajagu, among others.

    For the NEPC, its 11-member board has Mrs. Grace Clark, as Chairman, Ambassador Asalina Mamuno, and Alh.Salisu Umar as members, among others.

    OGFZA’s 14-member board is led by Chris Asoluka, while other members include Gen. Geofrey Ejiga (rtd.) and Mrs Mary Mbu, among others.

    For SON, its 10-member board has Alh. Abubakar Mustapha as Chairman, with Engr. Abubakar Magaji and Mrs. Roseline Ekun as members, among others.

    Speaking at the event, the Minister of Trade and Investment, Olusegun Aganga, said members of the newly constituted board comprised men and women of integrity, knowledge and experience in the public and private sectors of the Nigerian economy.

  • Fed Govt earns N2.4tr in Q3

    The Federal Government earned N2.4 trillion in the fourth quarter of last year, Central Bank of Nigeria (CBN) Economic report released yesterday has said.

    The report, published on the CBN website, the revenue, represents a decline of 0.4 when compared with earnings in preceding quarter. However, the figure shows an increase of 101.1 per cent above the receipts in the corresponding period of 2011. At N1.82 trillion, oil receipts, which constituted 75.6 per cent of the total revenue, exceeded the budget estimate and receipts in the corresponding period of 2011 by 9.91 and 151.2 per cent, respectively. But the oil earnings declined by 5.8 per cent below the receipts in the preceding quarter.

  • Fed Govt to commercialise FHA

    Fed Govt to commercialise FHA

    The Federal Government has unveiled plans to re-structure and commercialise the Federal Housing Authority (FHA) to address Nigeria’s housing deficit.

    The decision became imperative, following the need to meet its housing target as well as redress inefficiency of the agency.

    The restructuring and commercialisation exercise will be implemented by a 10-man committee in 18 months. It would be supervised by the Bureau of Public Enterprises (BPE).

    The Minister of Housing and Urban Development, Ms. Amal Pepple, disclosed this while inaugurating the Technical Board of the agency, yesterday in Abuja.

    She said: “The authority does not generate enough income to meet its wage bills; pay retirement benefits to its 816 pensioners and fulfil all aspects of its operations. It carries book of accounts, two major liabilities in form of loans, namely the N7.2 billion FGN loan granted between 1996 and 2001, as well as the N1.09 billion loan granted by the Federal Mortgage Bank.

    “Currently, it is only surviving because it is in custody of depositors funds, which if withdrawn, will render the authority completely insolvent.”

    However, the Minister explained that the agency was able to deliver 37, 000 housing units in 80 estates within 40 years.

    According to her, “the agency’s achievements have remained low and the dreams of its founding fathers have not been attained.”

    She emphasised that the restructuring is to ensure efficient and robust delivery of affordable housing.

    “I am glad to inform you that government has fully accepted the committee’s recommendation for an 18-month transition period for the restructuring and commercialisation exercise to be supervised by the BPE,” she said

  • Fed Govt, cashew association to float N10b fund

    The National Cashew Association of Nigeria (NCAN) and Federal Ministry of Agriculture and Rural Development are to float a N10 billion development fund to develop the crop.

    National President of the asociation Tola Faseru said in Lagos that the funds, which would be sourced from local and international financial organisations will be loaned to 50 processing factories across the country.

    Each factory, Faseru said,would process 2,000 metric tonnes yearly, resulting to 100,000 metric tonnes.

    According to him, this will increase the amount of cashew processed locally to 75 per cent. He was optimistic that the fund would help to revolutionise cashew cultivation.

    He said the industry needs investment to boost supplies and farmer’s contribution to the economy.

    He said there is need to direct resources at improving infrastructure to make agriculture efficient.

    He said improvement of infrastructure, such as roads, electricity and extension services, were important if the nation was to make agriculture more efficient.

    Faseru said the association was determined to improve the industry by 2015.

    He said the biggest difficulties facing the cashew industry are unstable supply source of raw materials for export and shrinking cashew acreage, productivity and output.

    He said also the products are not diverse, the domestic market is weak, input costs are rising, technologies are backward, and business scales are small.

    He said the industry will unlikely achieve the target if it fails to solve the problems.

    He explained that since processed cashew nuts account for only three per cent of export volume, the target of 30 per cent of well-processed cashew nuts will be a huge challenge if inadequate machinery and equipment are not upgraded. He added that this is a challenge for the industry.

    He said without improving the Nigeria cashew, the nuts will not fetch good price at the international market.

    He said it is time the industry invested in processing to raise the value of cashew nuts.

    He suggested solutions for cashew industry development. they include long-term human resources development plan, downstream processing and introduction of science.

  • Fed Govt urged to impose tariffs on imported cement

    The Federal Government should impose the maximum tariffs and levies on imported cement to discourage imports, President of the Cement Producers Association of Nigeria Joseph Mokoju, has said.

    He spoke during an inspection of Dangote Cement plants in Gboko, Benue State and Obajana in Kogi State.

    He said this is one major way the government can encourage and protect local producers and save the country millions of naira in foreign exchange that would have been used to create jobs in other countriess.

    Mokoju, who is also Special Adviser to the President of Dangote Group, said there have been drastic decline in demand for cement as a result of increased importation of the product. This, he said, has compelled local manufacturers including Dangote to shut its Gboko plant, which produces three tons of cement per annum.

    Few workers were seen working on the expansion project of the plant.

    Lafarge, The Nation, also learnt, has closed one of its units.

    Conducting reporters round the Gboko plant, which has tons of unsold cement, Makoju said local investors are unhappy because they want protection for the huge investments they have made in the sector.

    He said: “Instead of grinding and selling, we are now stocking and this has forced members to shut some of their production units because revenue is no longer coming in. Importation of cement has been at the detriment of local economy. In fact, cement importation has been very attractive because it comes with paltry duty of 20 per cent and levy of 15 per cent and clinker at 10 per cent, a development that makes the landing cost of imported cement to be very cheap with a bag going as low as $35 per ton.”

    “Local manufacturers are faced with many challenges, such as bad roads, haulage, energy cost. Energy cost alone accounts for over 35 per cent of production cost compared with less than 10 per cent in China. Besides, in Nigeria, the price of LPF0 has jumped from N25 per litre in 2009 to N107.76 per litre as at November, 2012, an increase of 331 per cent.”

    Despite these disadvantages, local cement manufacturers, he said, have kept their ex-factory prices constant at an average of N1,450 per bag since 2009 while input costs continue to rise.

    He said it was difficult for the manufacturers to control what happens to the cement once they are loaded out of their plants.

  • Fed Govt invests N3b in varsity

    Minister of Education, Prof Rukayyat Ahmed Rufa’i, said the Federal Government has so far released N3.5 billion for the take off of the Federal University Lokoja (FUL).

    The minister made this known in Lokoja during the maiden matriculation of the university last week.

    According to her, the bill legalising the nine universities established by the Federal government last year, have been signed into law while an approval has also been given for the physical master plan of the FUL.

    She said 2,391 students have sworn matriculation oaths in eight of the nine universities spread across the six geo-political zones.

    Prof Rufa’i attributed the successful take-off of the universities to President Goodluck Jonathan, whose transformation agenda is hinged on quality tertiary education.

    She stressed further that the present administration is determined to provide quality education in the country.

    Also speaking, the Kogi State Deputy Governor, Mr Yomi Awoniyi, urged the new university to complement the rich human capital of the state as government intends to use the new institution as a research centre for the transformation and development of the state.

    Awoniyi, who represented Governor Idris Wada, said the state is serious about restructuring in the education sector.

    The architect noted that the restructuring was occasioned by years of neglect during which ghost teachers and schools flourished.

    In his welcome remarks, Vice-Chancellor FUL, Prof Abdulmumuni Hassan Rafindadi, said the institution will strive against examination malpractice as well as acts related to cultism or other social vices.

    Delivering a matriculation lecture titled State of the education in Nigeria todays, Dr George Kwanashi, noted the flaws in the nation’s educational system, and called for a change in mindset.

    He listed policy consistency and improved infrastructural facilities, improved teaching and learning materials as well as professionalism as panacea to improved learning in the university educational system.

    FUL, which was established along with eight other universities in 2011, matriculated 443 students into three faculties.

  • Fed Govt, states defend $7.9b external loan

    Fed Govt, states defend $7.9b external loan

    Federal and state governments yesterday defended their requests for approval to borrow over $7.9 billion at the Senate.

    Out of the amount, the Federal Government is seeking Senate’s nod to borrow $4,846.3 billion while some state governments applied for approval for a loan of $3,059.39 billion.

    Chairman, Senate Committee on Local and Foreign Debts, Senator Ehigie Uzamere, explained that the purpose of the loan defence was to know the amount federal and state governments applied to borrow.

    Uzamere also said his committee wanted to ensure that the loans were tied to specific projects.

    He noted that it was necessary for the Senate to be fully briefed on the details of the loans to enable Senators take informed decision on the approval or otherwise of the loans.

    He said it was necessary for Nigerians to know what the loans were meant for.

    Uzamere assured that his committee would do justice to the requests before writing its report for the consideration of the Senate.

    Minister of State for Finance, Yerima Ngama said the Ministry of Finance does not want to allow states to negotiate the terms of the loans.

    Ngama noted that what the Minister of Finance and Coordinating Minister for the Economy, Mrs. Ngozi Okonjo-Iweala, did was to negotiate general terms of borrowing for states.

    He said a situation where states would be given verifying terms of repayment would not arise.

    He said it was not true that the loan portfolio of the country is high.

    The minister, who noted that Okonjo-Iweala secured concessions for the loans, added that some of the loans were granted at zero per cent.

    Commissioners of Finance of some states represented their states at the meeting.

  • Fed Govt, Brazilian firm partner

    The Federal Government and Embraer, Brazil, have agreed to collaborate to facilitate government’s effort to assist domestic airlines acquire new aircraft.

    This is the outcome of preliminary talks opened in S.J. Dos Campos, the headquarters of Embraer in Brazil, on the subject matter by representatives of the Federal Ministry of Aviation led by the Managing Director of FAAN, Mr George Ureisi and Embraer led by the Senior Vice President Operations/Chief Operating Officer, Mr Luis Carlos Affonso.

    Ureisi told the Embraer executives that the Federal Government has altered its strategy for the development of the aviation sector to domestic airlines by its intention to assist them increase their fleet with new aircraft from reputable manufacturers.

    He emphasised the need for the use of aircraft by domestic operators, hence the need for the government to intervene in the acquisition of aircraft that are efficient.

    “Domestic carriers use wrong equipment for most of their operations. There is no established record of sustainability for these airlines mainly because of the use of wrong equipment. Intervention fund by the Federal Government in the past to assist them re-fleet has failed because there was no evidence of the money being ploughed back into the airlines leading to them failing in the long run.

    “The government wants to change this model entirely by floating a fund for the acquisition of new aircraft for the domestic carriers. In this regard, the government is seeking a partnership with Embraer that would lead to a discussion on how these new aircraft would be procured at very competitive, fair, and concessionary rates,” Ureisi told his hosts.

  • Fed Govt to list bonds on NSE’s official list

    The Federal Government has started discussions with the management of the Nigerian Stock Exchange (NSE) to list the values of the Nigeria’s sovereign bonds on the Daily Official List.

    The Daily Official List of the NSE carries the values of equities and equity-based indices. It only lists bonds without specifying their values. As such, the official list only presents the equity segment of the market.

    Director, Market Development, Debt Management Office (DMO), Patience Oniha, confirmed the discussions between the agency and NSE.

    She said the listing of values of bonds on the official list would provide a complete view of the capital market capitalisation, allowing stakeholders to determine the flow of funds between equities and debt issues.

    She noted that the listing was part of efforts being made by the government to develop a viable secondary market for bonds and to encourage retail investors to participate in trading in bonds.

    She pointed out that the listing would help to diversify investors’ base and enhance mobilisation of savings for developmental projects.

    She added the appointment of government stockbroker was aimed at creating a focal point for secondary trading mechanism for government bonds.

    The government had appointed Stanbic IBTC Stockbrokers as its stockbroker. This means it will provide prices for government bonds on the NSE and act as an intermediary between the DMO, the NSE, stockbrokers and other market players to ensure that all activities in sovereign bonds and other government securities that may be listed in future are effected smoothly.

    Stanbic IBTC Stockbrokers is a wholly-owned subsidiary of Stanbic IBTC Holdings Plc, a member of Standard Bank Group. It is reputed as the largest stockbroking firm in Nigeria with a market share of some 17.65 per cent of the value of shares traded in 2011.

    Chief Executive Officer of Stanbic IBTC Holdings, Mrs. Sola David-Borha, has said the appointment of Stanbic IBTC Stockbrokers as stockbroker to the Federal Government would translate into increased retail investors’ participation in both the primary and secondary markets of sovereign debts and ultimately help to deepen Nigeria’s bond market.

    According to her, a major step towards attaining this goal is to specifically address the peculiar requirements of the retail segment, part of which includes undertaking focused awareness campaigns to ensure that the investing public is well informed about the workings of the bond markets.

    She reiterated the company’s long-term commitment to facilitating stability in Nigeria’s capital market, and the financial services industry in general.

    “We identify and align ourselves completely with the strategic objective of this appointment. We know that it is a great responsibility and we are committed to increasing the pool of investors by addressing the retail segment and also to ensuring that the investing public is properly educated to understand the workings of the markets,” David-Borha said.

  • Fed Govt to reduce banks lending rate

    Fed Govt to reduce banks lending rate

    The Federal Government has assured that it is bringing down lending interest rates to single digit before the end of the administration.

    The objective is to address the worsening state of industrialisation and economic growth in the country.

    The Minister of Trade and Investment, Mr Olusegun Aganga, gave the assurance yesterday at the foundation stone laying ceremony of Funduk Intravenous Fluids Factory at Moniya, Ibadan, the Oyo State capital.

    Aganga, who expressed grave concern over the prohibitive cost of doing business as a result of high interest rates, said the issue was discussed at a Federal Executive Council (FEC) meeting some weeks ago and a decision has been taken on the need to reduce the rate of lending.

    President Goodluck Jonathan, he said, has approved the re-capitalisation of the Bank of Industry ( BoI) to boost industrial and economic development.

    He said: “The need to industrialise this country is of paramount importance to the present administration. Nigeria is a blessed nation. I see opportunity of growing the economy of this country. It is time to get our acts together.

    “We have commenced our industrial revolution plan. Our aim is to create access through affordable loan, encouraging local patronage, industrial development and innovation.

    “Our nation is richly endowed with human and material resources.This attributes are very compelling. I have been in about 29 countries, investors realise that there is great prospect in Nigeria. You can move capital and innovation but you cannot move market. Nigeria has a vast market.

    “Regardless of our challenges, Nigeria continues to attract investment. In no distant time we shall begin to reap the fruits of this effort. Only in 2002, the country had capacity for producing 2.2m metric tonnes of cement; today we have the capacity of producing more than 28m metric tonnes.”

    Governor Abiola Ajimobi in his address said the foundation laying ceremony is a milestone in the quest of our administration to industrialise the state.

    “ In Oyo State, we have coordinated ourselves to providing conducive atmosphere for industrialisation”, the governor stressed.

    He corroborated the fact that the cost of funds, security and safety are paramount, adding that no investor will come to any environment where there is no security.

    “Our attitude to productivity is very discouraging. Near my house in the morning you will see people drinking alchohol and playing draft. Most of those saying they are employed are in fact not employable. Many people don’t even have the skills to work. Many of us are traders and they trade on the streets,”he added..