The Federal Government over the weekend listed its $1 billion Eurobond on the FMDQ OTC Securities Exchange, creating additional platform for the trading on the foreign-currency sovereign bond issue after the initial listing on the Nigerian Stock Exchange (NSE).
The Debt Management Office (DMO), which oversees the issuance of Nigeria’s government debt issues, listed the $1 billion Eurobond on behalf of the government. The $1 billion Eurobond has a tenor of 15 years with redemption in 2032 and a coupon rate of 7.875 per cent. The issue was oversubscribed by 780 per cent, prompting the government to set in motion process for a supplementary issue of $500 million.
Director-General, Debt Management Office (DMO), Dr Abraham Nwankwo, said Eurobond listing was a landmark as it was the first foreign-currency bond to be listed on domestic Exchanges.
According to him, the Eurobond was listed on the domestic Exchanges to enable Nigerians, individuals and corporate bodies, access the Eurobond at their doorsteps.
“With the listing, it means that we are not only creating value, but also creating financial inclusion,” Nwankwo said.
The oversubscription, he said, has shown the level of confidence of the international communities in the Nigerian economy in spite of the current challenges.
He added that the Eurobond would set the pace for global competitiveness and invariably deepen the Nigerian financial markets, noting that the issuance of the Eurobond was aimed at fostering economic development and rejuvenating the vibrancy of the nation’s foreign exchange market.
Nwankwo urged Nigerians to continue to support the government as it works tirelessly with all stakeholders to transform the economy through infrastructure development.
He assured that Nigerians would soon feel the positive impact of the many initiatives of the government through improved living standards.
Securities and Exchange Commission (SEC) Director General, Mr. Mounir Gwarzo, reassured that the Commission would continue to provide the needed environment for the capital market to grow.
Gwarzo, who was represented by Mr Adam Sambo, noted that the over subscription of the Eurobond was due to huge confidence shown by the international market.
He said the Commission would always be ready to provide the rules and enabling atmosphere for diversification and the growth of the capital market through innovative products and initiatives by all stakeholders.
Tag: Fed Govt
-
Fed Govt lists $1b Eurobond on FMDQ OTC
-
Operators advise Fed Govt on ease of doing business
Some capital market operators last week expressed optimism that the Federal Government’s decision to formulate national action plans to remove bottlenecks would ease the process of doing business, if properly articulated and implemented.
They said well-articulated action plans would positively turn around the nation’s fortunes and revitalise its economy.
Mr. Sehinde Adenagbe, a stockbroker, said the pronouncement, if well-implemented, would boost investors’ confidence in Nigeria. It would also make the Small and Medium Enterprises (SMEs) competitive in their actions.
Adenagbe said the government should ensure the establishment of collateral registries and credit bureaux for SMEs in its bid to improve ease of doing business in the country.
He noted that the government should leverage on the gradual peace in the Niger Delta to boost oil output and revenue.
Also, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Limited, said early approval of this year’s budget would provide a direction of businesses, adding that it would boost economic activities in the country.
Omordion said the budget aids investment decision and was used by investors to ascertain any country’s economic direction.
On the stock market performance, he said the market would witness upward and downward trends, due to cautious trading occasioned by mixed sentiments.
Omordion said fund managers and market players would engage in profit-taking, following month end activities to balance their trading accounts.
He noted that another factor that would affect trading would be the market expectations of the nation’s 2016 fourth quarter Gross Domestic Product (GDP) data, and Nestle Nigeria 2016 audited result.
According to him, investors should combine technical and fundamental analyses for trading decisions to know the support and the resistance levels.
It was reported that the turnover of 765.66 million shares worth N9.72 billion were traded by investors in 12,468 deals last week.
This was in contrast with 1.07 billion shares valued at N8.61 exchanged in 14,486 deals in the previous week.
The Financial Services Industry remained the most active when measured by volume, with 575.29 million shares valued at N3.47 billion, traded in 6,738 deals.
It has thus contributed 75.14 per cent, and 35.71 per cent to the total equity turnover volume and value respectively.
The consumer goods sector was followed with 53.812 million shares worth N3.47 billion in 2,572 deals.
The third place was occupied by conglomerates industry, with a turnover of 48.96 million shares, valued at N229.41 million in 622 deals.
The Nigerian Stock Exchange (NSE) All-Share Index and market capitalisation for the first time in February, recorded weekly growth appreciating by 0.34 per cent, respectively.
The index grew by 85.46 points or 0.34 per cent, to close at 25,250.37 from 25,164.91, recorded in the corresponding week.
Also, the market capitalisation, which opened for the week at N8.709 trillion, inched N30 billion or 0.34 per cent, to close at N8.739 trillion.
-
Soludo: Fed Govt has made things worse
Former Central Bank of Nigeria (CBN) Governor Prof. Chukwuma Soludo has said even though the Muhammadu Buhari administration met a bad economy, it has made matters worse.
Soludo noted that the All Progressives Congress (APC) government promised to restructure the country but has regretfully jettisoned the idea.
“Politicians are always full of propaganda and falsehood but Nigeria will not be rescued by looking at government alone, only citizens united will come to the rescue,” he said.
The ex-CBN governor said only Nigerians can save the country from the “massive compression” that the economy is in.
“Until citizens hold them to jugular and ask them to deliver on their promise, Nigeria will continue to drift without united citizens action,” he said.
Soludo said everybody blames the leadership for every wrong while the citizens overlook their obligation to remedy bad situations.
He added that citizens can save the country through a new Nigeria.
The ex-CBN governor spoke in Enugu yesterday at the African Heritage Institution Policy debate, the Big Ideas podium.
Other speakers include former Cross River State Governor Donald Duke, member, Presidential Economic Advisory Board, Prof. Akpan Ekpo and former presidential Chief Economic Adviser and Director of Institute for Development Studies in the University of Nigeria, Prof. Osita Ogbu.
Soludo said: “Nigeria is a fragile state with failing economy and everybody wants leaders to do this or that but what do we do ourselves?
“By 2005, indices indicated Nigeria was in 54th position and we said we should do better but today we are 13th alongside countries like Afghanistan.
“This is serious and it won’t be a tea party to get out of it. Nigeria is in recession in Naira terms but in massive compression in terms of US dollar.
“Recession is a small thing and it would be a miracle if in the next eight years, this government can return dollar to the rate it met it.”
The economist stated that it was a big luxury for people to just mind their own businesses in a falling economy.
“We will get the leadership that we work for, that we demand for.
“If only the politicians can implement 20 per cent of their manifesto, what they promised in their campaigns, the country will change.
“We must all resolve to get our voices heard. Peaceful agitation must be tolerated because they call for our attention for perfection upon which we move Nigeria forward.”
-
Group urges Fed Govt to pay agric support debt
The Federal Government and the Ministry of Agriculture have been urged to pay the outstanding debts owed previous participants of the Growth Enhancement Support Scheme (GES) programme to encourage everyone’s participation in actualising of government’s high food production and agricultural diversification.
The GES programme is an offshoot of the Agricultural Transformation Agenda encouraging firms to supply fertilsers and seeds to 2500 agro dealers for delivery to farmers.
Nigeria Renascent Group, a proactive pressure group, in a statement in Lagos, stated that with the prevailing situation in the country, vis-à-vis government action to agriculture, famine is imminent in the country, if the government does not act fast by ensuring that important agricultural stakeholders are brought into the project of creating food for all.
It, therefore, urged the government to pay the debts owed previous participants of the GES programme for this to materialise.
In the statement signed by Mr. Abdulrasaq Lawal, the group stated: “The zest at which participants engaged in the GES programme, which saw many farmers smile and employment figure rising, has diminished.
“The reason is not far-fetched. Many of those who participated actively and whole heartedly have since stopped because they cannot continue, owing to the huge debt of over N47 billion naira owed them by the Federal Government. While the few others who are participating now are doing so with measured involvement to avoid inactivity”.
The group urged the government to “get all stakeholders on board by first settling the outstanding debts owed to them”.
“This will serve as an impetus and will make them enthusiastic and give them the zeal to go all the way in seeing to the success of government diversification to agriculture policy,” the statement said.
-
Fed Govt stops registrars from referring patients for overseas treatment
•N1b West African Surgeons college secretariat opened
The Federal Government has stopped registrars from referring patients for treatment abroad.It has given the job to consultants.
It accused the registrars of conniving with patients to ask for foreign exchange (forex) for overseas treatment of cases that could easily be handled in the country, adding that this has led to a loss of about $1 billion yearly to medical tourism.
Minister of Health Prof Isaac Adewole stated this at the inauguration of the West African College of Surgeons permanent secretariat in Lagos.
To stop these indiscriminate referrals by registrars, Adewole said: “Only consultants now are authorised to refer patients for foreign treatments. No registrar can do that again.”
Adewole said Nigeria has many experts who can rise up to any medical challenge.
He praised ‘’the marvelous job’’ of Prof M.T. Shokunbi and his team at the University College Hospital (UCH), Ibadan, which handled a fibroid case successfully, thereby saving huge bills.
He also praised the National Hospital, Abuja team, which treated a young girl with a large jaw tumour. The team operated for eight hours with various surgical teams. ‘’Nigerian medics know their onions indeed,” Adewole said.
He said the Federal Government was committed to reversing medical tourism and had documented that the causes of medical tourism abroad are cancer, chronic renal problem (renal transplant) and heart diseases.
Adewole said already the government was upgrading seven tertiary health facilities for cancer care, and focusing on the upgrade of radiotherapy, adding that his ministry was discussing with two big vendors to provide machines, training and maintenance opportunities.
“Corporate organisations, such as Nigeria Sovereign Investment Authority (NSIA), Shell Nigeria Exploration and Production Company (SNEPCO) and the Niger Delta Development Commission (NDDC), are planning to support various centres aside the Federal Government interventions.
“We are also repaying outstanding bills for trainees in South Africa, in International Atomic Energy Agency (IAEA)-supported training,” Adewole said.
He said the Federal Government was ready to partner the the college on any area to improve the quality of care, training and service delivery. He commended the college’s members for building the six-floor edifice which cost N1 billion.
He appealed to the college’s authorities to reduce the training period of residents to five years.
WAC’s President, Prof Akinyinka Omigbodun said the institution would provide quality training for surgeons across the West African region.
“The construction of our permanent secretariat is the single largest project the college has ever embarked upon and the successful completion of the building is a testament to the strong support of Fellows have given our College. It will continue to serve for the training of postgraduate specialist training for physicians and surgeons, as well as other health care professionals in Nigeria and across other parts of West Africa. We pledge to work closely with Ministry of Health to improve surgical care for the teeming population of the nation,” Omigbodun said.
He said the secretariat would serve as a clinical skill centre where trainees would have a simulator-experience to practise the act of surgery before the experts handle patients. ‘’Digital library will be available as well. That will enhance their skill. He identified finance as the main challenge WACS is facing.
The institution’s Secretary-General, Dr Olutola Olatosin, said members were happy to build a befitting headquarters for the college, noting that the West African College of Surgeons started off in Ibadan in December 1960 as Association of Surgeons of West Africa (ASWA).
‘’It is the professional body in the sub-region and comprised specialists in surgical specialties. Its first President was Sir Samuel Manuwa of blessed memory. West Africa, in this context, includes all countries within 20ºW and 20ºE of longitude and 20º North and 20º South of the equator i.e. from Mauritania to Democratic Republic of Congo. In order to achieve one of its cardinal objectives, i.e. to train surgical specialists in the sub-region, it resolved and became the West African College of Surgeons (WACS) in January 1973 and inherited all the assets and liabilities of ASWA.
“After over 40 years, WACS has trained about 5000 specialists in various surgical discipline, including surgery, anaesthesia, dental surgery, obstetrics and gynaecology,ophthalmology, ENT, and radiology. It has also trained about 800 diplomates in anaesthesia, ophthalmology and ENT. It has over 5, 000 Fellows across all fields of surgery and also diplomates. In the beginning, the College Secretariat was located in the office of whoever was elected the Secretary-General of the college.
‘’It was only 1989 that it moved to the present Secretariat in the headquarters of the now defunct West African Health Community. It shares the building with three other postgraduate colleges. So, this edifice is playing a big brother among other country members,” he added.
-
Ex-perm sec forfeits 47 cars to Fed Govt
A former Permanent Secretary in the Ministry of Power, Godknows Igali, has forfeited 47 Sports Utility Vehicles (SUVs) to the Federal Government, Economic and Financial Crimes Commission (EFCC) has said.
The information was contained in a report the EFCC submitted to Senate Committee on Financial Crimes and Anti-corruption.
The report said the cars were seized in the Utako, Abuja, residence of the former permanent secretary.
Igali is undergoing investigation by EFCC for alleged corruption.
But the Senate yesterday kicked against donation of building and furniture to EFCC by an unnamed governor.
It said such donation could hamper the war against corruption.
Senator Dino Melaye, who spoke at a budget defence session with the EFCC, decried a situation where governors donate money to the anti-graft agency.
Melaye (Kogi West) insisted such development would tamper with the independence of the EFCC.
The committee demanded review of the contract details of EFCC building, which is put at N26 billion against the initial N18.8 billion awarded to Julius Berger.
The committee wondered how a contract awarded at N18.8 billion would be increased to N24 billion and later a request for additional N2 billion for power plant and sewage.
It asked how a 10-storey building would be awarded without sewage and power plant.
The committee chairman, Senator Chukwuka Utazi, said the contract was signed against the advice of the Bureau of Public Procurement.
Utazi noted on account of what was going on with the EFCC building, Julius Berger management should be invited to appear before the committee.
-
Fed Govt records late passage of budget in six years, says FRC
The consistent delay in the passage of budget by the National Assembly is slowing down growth, the Fiscal Responsibility Commission (FRC) has said.
The agency’s report indicates a pattern of five months between the budget presentation by the President and its passage by the lawmakers in the last six years.
It said the lateness “messes up budget tracking and contributes to poor implementation of capital budgets.”
It also claimed that the delay in managing the Appropriation Bill had been stifling national development
The commission stated this in its 2015 Annual Report and Audited Accounts, obtained by The Nation last night.
The FRC recommended the adoption of a “strict budget timetable to be incorporated in the Fiscal Responsibility Act (FRA).”
The commission suggested a January to December fiscal year to enable successive budgets to have meaningful impact on the nation’s development.
The report said in part: “It will be observed that there have been perennial delays in the presentation of the budget to the NASS. There has been an average of five (5) months between the time of presentation to the National Assembly and assent by the President.
“Though the Fiscal Responsibility Act, 2007 does not specify a time-limit for the submission and passage of the annual budget into law, it stands to reason that the budget instrument should be ready for execution from the beginning of the fiscal year.
“The case for years where a new fiscal year’s budget is being awaited months into the fiscal year owing to the late passage of the budget messes up budget tracking and contributes to poor implementation of capital budgets thereby stifling national development.”
The report added: “There is therefore a need for a strict budget timetable to be incorporated in the FRA. This way, relevant agencies will be committed to specific tasks, timelines and deadlines which if enforced will go a long way towards solving the perennial problem of late preparation and passage of annual budget well as the uncertainty in delimiting the budget cycle.
“In the prevailing circumstances, it is pertinent to reiterate the Commission’s earlier recommendation that the Nigerian budget preparation should begin in July and be signed into law as the Appropriation Act in December.”
On why budget implementation has failed over the years, the FRC attributed it to lack of Annual Cash Plan and Disbursement Schedule.
It said the development had led to “arbitrariness in the execution of the budget as continuously witnessed over the years.”
The report said: “Section 25 requires that an annual cash plan is prepared in advance by the Accountant-General of the Federation and shows projected monthly cash flows for the financial year. The plan is to be revised periodically to reflect actual cash flows.
“Section 26 on the other hand requires that a Disbursement Schedule shall be prepared by the Finance Minister within 30 days of the Appropriation Act and must be derived from the Annual Cash Plan.”
“The import of sections 25 & 26 underscore the need to ensure efficient and effective management of revenue and expenditure across all MDAs towards the achievement of budget targets.”
“In the course of implementing the 2015 budget, the Office of the Accountant General of the Federation prepared and submitted a combined statement of annual cash plan and disbursement schedule. While this was an improvement over the previous year, compliance with FRA 2007 was still not observed. Section 25 and 26 requires the preparation submission of two separate statements.
“The annual cash plan is to be prepared in advance of the year or at the time the appropriation bill is being presented to the National Assembly. The disbursement schedule on the other hand is expected to be prepared within one month of the budget being signed into law.”
“It is pertinent to state here that the implication of operation the Appropriation Acts without a Cash Plan and Disbursement schedule in the manner prescribed by FRA 2007 invariably results in arbitrariness in the execution of the budget as continuously witnessed over the years.”
The FRC also alleged that the Budget Office (BOF) has been violating Section 30(1) & (2) of FRA 2007.
It claimed that BOF has not been submitting Quarterly Budget Implementation Reports to the Fiscal Responsibility Commission and the joint finance Committee of the National Assembly.
The FRC report said: “Section 30(1) & (2) of FRA 2007 makes it mandatory for the preparation and submission of Quarterly Budget Implementation Reports to the Fiscal Responsibility Commission and the joint finance Committee of the National Assembly not later than 30 days after the end of each quarter.
“Similarly, Section 50 requires a Consolidated Budget Execution Report to be prepared for the entire budget year not later than six months after the end of the fiscal year.
“These reports are also required to be published in the print and electronic media and on the website of the Ministry of Budget and National Planning for ease of access by the public.”
“In spite of several requests and reminders for the preparation and submission of BIRs, the reports were still being submitted behind schedule thereby limiting their use as effective tools in budget implementation. -
Diversification: Fed Govt to review BPP Act to promote local goods, says minister
THE Federal Government is to review the Bureau of Public Procurement Act to promote local goods and services, Minister of Information and Culture Lai Mohammed said yesterday.
He said the government was determined to diversify the nation’s economy through made-in-Nigeria goods and services.
The minister added that additional 28 offices for issuance of residence permits in Nigeria will soon be opened to attract foreign investors.
Mohammed, who unfolded these plans at the Ninth Town Hall Meeting of the Federal Government in Umuahia, said there was no going back in seeking alternative to dependence on oil.
He said the “Change Begins With Me Campaign”, which was launched by President Muhammadu Buhari on September 8, 2016, was “aimed at achieving a paradigm shift in the way we do things”.
Mohammed said: “Boosting industrial development, especially through the local production of goods and services, is a major plank of this policy. Patronising Made-in-Nigeria goods and services is also key to the success of the policy.
“In this regard, I can boldly say that Abia State is a pacesetter.
“Today, the state supplies high-quality military boots to our military, and that is just one of such impressive ventures by the state. So, while the state is boosting local production of goods and services, the military is patronising Made-in-Nigeria goods. It’s a symbiotic relationship and there is no better way to give teeth to the economic diversification policy.
“A major way of encouraging growth as well as boosting the nation’s economy is by helping the small businesses to blossom. To achieve this, the Federal Government has taken the bull by the horns by working with the states to address the root problems facing the Micro, Small and Medium Enterprises (MSME).
“This is being done through clinics being organised in each state and this will be followed up with a huge MSME Trade Fair in Abuja later in the year, where grant agencies and investors will be invited to provide funds for outstanding businesses. I am happy to announce that the clinic was launched here in Abia State, specifically in Aba, on the 26th and 27th of January, 2017. That’s a befitting tribute to Abia’s trail-blazing efforts at nurturing MSMEs.”
Mohammed said the Federal Executive Council (FEC) has approved plans to review the BPP Act to promote local goods and services.
He added: “Talking about Made-in-Nigeria products, let me use this important national platform to announce that the Federal Executive Council (FEC) has already approved measures to sensitise Nigerians to patronise such products.
“These measures include the approval given to the Bureau of Public Procurement to increase the patronage of Made-in-Nigeria good and services through a review of its Act.”
On the ease of doing business, the minister said the Federal Government has approved the opening of additional 28 offices for issuance of Residence Permits in Nigeria for foreign investors.
Minister of State for mines and Steel Development Alhaji Bawa Bwari said he admired “the spirit of never say die of Ndigbo”, which they transferred to Rangers International football Club with which they projected the zone and the country.
Bwari said it was that kind of spirit Nigerians needed to move the country out of recession, stressing that there are over 44 different minerals deposits across the country.
He noted that almost every council area in the country had mineral deposits in commercial quantity, adding that the Federal Government has been able to take back Ajeokuta Steel Mill, which has been a problem for about 35 years now.
Minister of Labour Dr. Chris Ngige said the Federal Government was emphasising on made in Nigeria products which Abia State is championing.
“All the cloths I have been wearing for the past two years are all made in Aba,” he said.
He said the Federal Government was ready to cooperate with state governments to make them self-sufficient instead of coming to Abuja every end of the month for federal allocation.
Minister of Agriculture Chief Audu Ogbeh said governments in the zone should go back and revive the several farm settlements built by the late Premier of the defunct Eastern Nigeria, Dr. Michael Okpara.
Ogbeh recalled that many years ago people from Malaysia came to Nigeria and took some palm seedlings and “today, they are doing well”.
“Why can’t we go back to those days when we were exporting palm oil, cocoa and cashew nuts among others,” he said.
He said the government would soon relaunch cocoa in the Southeast zone with new improved variety seedlings and cocoa fertiliser, which is unique to the area with the aim of having improved yields. -
Fed Govt appoints new directors for NCAA
THE Federal Government has approved the appointment of five new directors and one general manager for the Nigerian Civil Aviation Authority (NCAA).
They are: Group Captain Edem Oyo-Ita as director of Air Transport Regulations (DATR); Ahmed Abbas Sanusi as director, Human Resources and Administration (DHR & ADMIN); and Bilikisu Adamu Sani, director of Finance and Accounts (DFA ).
Odunowo Tayyib Adetunji was appointed director of Aerodrome and Airspace Standards (DAAS).
Others are Ita Awak, an engineer, as director of Airworthiness Standards (DAWS).
Lawrence Mathew Kwajok was appointed general manager, Air Navigational Standards (ANS).
According to NCAA spokesman, Sam Adurogboye, the appointments are with immediate effect.
Seven directors were on Friday fired from the authority. -
Fed Govt eases visa, travel rules
Foreigners, who wish to visit Nigeria for business and tourism purposes, will no longer be subjected to any bureaucratic bottleneck, following the review of visa processes by the Federal Government.
The move is designed to encourage business travellers and tourists to boost the economy.
Minister of Information and Culture Lai Mohammed, in a statement issued in Lagos yesterday, said the measures were part of the plan to ease doing business as well as efforts to boost tourism in line with the President Muhammadu Buhari administration’s economic diversification agenda.
“The Nigeria Immigration Service (NIS) has reviewed the requirements for Nigerian visas to make them more customer-friendly and details of this review are available on the NIS official website, www.immigration.gov.ng.
“Types of visas currently reviewed include visa on arrival (VoA) processes, business visas, tourist visas and transit visas,” the minister said.
Mohammed explained that business visas are available for foreign travellers, who wish to come to Nigeria for meetings, conferences, seminars, contract negotiation, marketing, sales, purchase and distribution of Nigerian goods, trade fairs, job interviews, training of Nigerians, emergency/relief work, crew members, staff of NGOs, staff of INGOs, researchers and musical concerts.
He said tourist visas were also available to foreign travellers, who wish to visit Nigeria for the purpose of tourism or to visit family and friends.
Mohammed explained that visa on arrival is a class of short visit visa issued at the port of entry, and it is available to frequently-travelled high-net-worth investors and intending visitors, who may not be able to obtain visa at the Nigerian missions/embassies in their countries of residence due to the absence of a Nigerian mission in those countries or exigencies of urgent business travels.
The minister said other actions taken by the Immigration Services were harmonisation of multiplicity of airport arrival and departure forms/cards into a single form and the decentralisation of immigration services to state commands.
“Re-issuance of passports for change of names due to marital reasons or lost cases have been decentralised to all state commands and foreign missions to save passport holders from additional costs and inconvenience of travelling to the Service Headquarters in Abuja. Additional 28 offices have been opened for issuance of residence permits in Nigeria, bringing the issuance of Combined Expatriate Residence Permit and Aliens Cards (CERPAC) closer to the doorstep of employers of expatriates at all 36 states and FCT,” he said.
Mohammed said the measures fit perfectly into the 60-day national action plan for ease of doing business in Nigeria approved recently by the Presidential Enabling Business Environment Council (PEBEC), as well as the administration’s efforts to boost international tourism.