The Nation Newspaper

Tag: FOCUS

  • Power, decorum and focus

    The  presentation  of  Nigeria’s 2019  budget by the president  at  the National  Assembly this  week  lacked all  the decorum expected of  such an important duty of the two political institutions  of the presidency and the National  Assembly  involved in our presidential  system  based on the separation of powers. Really    have no doubt  in my mind  that the fault lies with the leadership of the NASS  especially  as the Speaker of the House of  Representatives  and the President of the Senate were not able to present the address at  the joint session  as required  by the protocol and decorum of budget  presentation in Nigeria since the return  to democratic  rule in Nigeria in 1999. Even  the normally taciturn president chided in the midst  of the cacophony  that all  present should  be above   such    a disturbing spectacle  because  the world was   watching.  That  really  is quite true  and I want  to add  that the world has seen  Nigerian  legislators  at large  and at work   and   the world  at  large is disgusted  and nauseated.

    All   the same it   is impossible to treat the misdemeanor of  our legislators in isolation in a global  village that we are in  nowadays. This is because  we  saw  in other  parts  of the world  particularly  two  places  known  for the recommended practice  and ethos of liberal  democracy   that  violent language and verbiage has become the norm  rather  than  the exception.  In  the British  Parliament,  reputedly the  Mother of All   Parliaments,  the leader  of the Opposition  was alleged to have called the PM Theresa  May  a stupid  woman during debate  on Brexit  and a vote of no confidence in the PM, and the leader of Opposition, Jeremy  Corbin   was asked  to apologise  and he refused. In  the case  of the US it  has  become common place to   call  the American President a liar and an  ignoramus  on all  issues regardless  of his authority    as   president.  Indeed     from all indications some media  houses  are  simply  waiting   for  the  conclusion of the  Muller  Inquiry  on  alleged  Russian  hacking of  US 2016 presidential   elections,  and the resumption  in January   of the  House  of Representatives, where  the  Democrats   have  a comfortable majority  from the last November Mid term elections,  before  calling for the impeachment of the American president.  Indeed  one can say  flatly  that  there is no love lost between  a section of the US press  that  President Trump  calls daily Fake  News and the office of the US President and White  House  occupied  by the US president.

    Yet  Nigeria’s  democracy  is  a hybrid  product of the two  democratic   political  systems of  Britain  and   the  UK,  both  of which  nations  are  experiencing such  democratic  stress, difficulties  and challenges  that it is no wonder  that  nowadays   they  doubt  the  results  of their elections and   referendum,  which  was  an  unthinkable  if not impossible development in the recent past. Of  course  it is such  fallouts from  the workings   or is it   failings, of democracy   in these  two nations  that  have  reverberated in the disrespectful audience  given  the Nigeria President  when  he came to present the 2019  budget in the NationaL  Assembly  last  week.   Let us now  look  at  the aborted budget presentation of the Nigerian  president  in the sedate  setting of the National  Assembly which  legislators  turned  into a   vociferous  and  truculent  market  place of political slogans, jeers  and boos of the Nigerian  president such  that  he had to leave the presentation in a hurry. We  shall  then round up with  the reluctance of the Leader of the Labor Party  to apologise  for   allegedly  calling the British  PM a  stupid  woman.

    As I  said  earlier here,  I  hold  the leadership of the National Assembly  responsible  for the lack of respect shown  the office of our  president when  he came to present the nation’s  budget.  This was a constitutional  function based on the legislative oversight   function of the NASS to  approve the budget. To  make the presentation so rowdy  such that the leadership of the NASS could  not make its presentation as required by protocol and decorum is as  if the leadership of the legislature has willingly cut its nose to spite  its face . I praised  this present  NASS  leadership  sometime at the height of the heady    party  defections  in  NASS  that rocked the   Nigerian polity  some time ago. This was at a time when the Senate and the House  of Representatives passed delayed bills dutifully in spite of differences  and disagreements with the presidency. I  hailed that as a good sign that our separation of   powers as a presidential system  was working  even  at a time that that of the US was in hiccups over  a  Supreme Court  confirmation process. I  take back  that  commendation given the shoddy  reception given  the president when  he came for budget presentation this week.  There  was so  much  confusion and bad blood  on display  even at  the beginning when the senator giving the opening Christian prayer forgot  to remove his cap  till the end of his  prayer.  The  commotion that followed  certainly  showed that God turned  a blind  eye  to the prayer and that   is   not a good omen  for the  budget and its implementation. That  too is not good for  millions of Nigerians looking forward for better  dividends of democracy from  the Nigerian  2019  budget  because when  elephants  fight, it is the ground that suffers. Again due to poor leadership  our  democracy  is on   tenterhooks even  as we head  giddily   to the 2019  general  and presidential  elections.

    With  regard  to the calling of  the British  PM stupid it would seem  that some mischief  makers  are trying to make  a mountain out  of a mole  hill. Even  if  Corbin said  stupid  it was under his breath and in frustration because the PM had the better of  him while mocking him to  look  at  his back  and see his un impressed Labor Party  members. Indeed the Opposition leader looked as if he saw  a ghost  at  the joke.  And  the PM,   even  if she heard ‘stupid’  was  nonchalant. But   she  was   gleefully   happy     that her joke  on   withering  party    support   had  riled  her very  bitter opponent on  Brexit   and would  have  let  bygones be bygones.  But    then  Theresa  May     had   a score   to settle    with   Jeremy  Corbin  on    Brexit   harassment.  So,    as said  of   the   arrogant   character in that   famous  book  ‘Pride  and  Prejudice ‘, the PM certainly   ‘possessed  enough malice to make herself  merry with the embarrassment‘ of the Opposition leader on the  Brexit   No  Confidence  vote. Once  again long live the  Federal Republic of Nigeria.

  • Stakeholders urge Fed Govt to focus on beauty industry

    Nigeria’s beauty entrepreneurs have urged the Federal Government to pay  attention to the industry as part of its economic diversification, saying it is worth over N34 billion by 2021.

    The call is coming at a time the government is focusing on the non-oil sector to get more revenue.

    Speaking at the Beauty West Africa Conference in Lagos, the stakeholders urged the  government to exploit the beauty sector,  adding that it has the potential for job creation and revenue.

    The way to achieve this, they said, is through the government’s collaboration with professionals to fashion out an agenda that would reposition the sector.

    In a goodwill message, Nigeria British Chamber of Commerce President, Mr. Akin Olawore, said Nigerians spend a lot on beauty products and services, which he described as a good thing.

    According to him, the distribution of beauty products – raw or processed through manufacturing – offers immense sales, marketing, branding and other business and job creation opportunities.

    “Indeed, we must not miss the opportunity to export beauty products to the world, like we did in the agriculture sector where we failed to exchange our cocoa for coffee and chocolate,” Olawore stressed.

    He noted that the challenge of many of the beauty entrepreneurs is their refusal to formalise their operations, even as he called for the inclusion of courses on beauty in the country’s educational curriculum so that it would enable more Nigerians to take advantage of the beauty value-chain right from the schools.

    “We can put together courses that will meet the needs of the beauty industry. If this is done, it will mean a structural diversification of our economy,” the NBCC boss stated.

    Corroborating Olawore in her keynote address, the Lagos State Commissioner for Commerce and Industry, Mrs. Olayinka Oladunjoye, who was represented by the ministry’s Director of Administration and Human Resources, Mrs. Moji Subair, hailed the entrepreneurs, saying that they are complementing government’s efforts on entrepreneurship.

    Mrs. Oladunjoye said: “We want the global competitiveness of the Nigerian beauty industry, because it has the potential for massive business and job creation opportunities. I advise all the participants to innovate and adapt to changes as they occur so as to maintain and even improve Nigeria’s high rating in the beauty sector.”

    The commissioner urged the participants to seek partnerships. She implored them to avail themselves of the opportunities provided by the state to enhance their businesses.

    The entrepreneurs had a challenge as well as a word of hope from the Nigerian Export Promotion Council (NEPC).

    According to an official of NEPC, Mrs. Francisca Odega, the entrepreneurs have themselves to blame for the industry’s slow growth.

    According to her, “Many businesses are not taking advantage of the support readily available with us. So, my advice is: register your business with the NEPC. We believe in NEPC that all local products are exportable, if we are ready to do what is right. We are ready to support you to be competitive and become a global company.

    “So, I challenge you to grow at home and sell abroad because your product is exportable. Indeed, the government is already planning a Nigerian Diaspora Export in some overseas countries, which will be like the China towns that are found in many countries globally. That is another proof of government’s readiness to boost the export of local products and to make every Nigerian-based overseas to consider themselves as the country’s ambassadors.”

    The first presentation at the conference, delivered by a Ghanaian and Chief Business Strategist, Inspire Africa consult, Ghana, Mrs. Maweuna Trebarh, buttressed the need to reposition the beauty industry for enhanced benefits.

    Corroborating Trebarh, Kemi Lewis, Creative Director, Owner KLS Natural Hair &Beauty Bar, lamented what she described as the “poor showing in intra-African trade”.

    According to her, We must begin to look beyond our shores. To the co-organiser of the event and Chief Executive Officer of London-based Compass Consulting, Mrs. Tokunbo Chiedu,  many operators did not appreciate the benefits of collaboration.

    “People are not appreciative of collaboration. This mentality of ‘I just want to be myself, and do it my own way’ is the problem,” she said.

    Mrs. Chiedu’s co-organiser, Mr. Jamie Hill, justified why the conference was organised.

    Hill, the Chief Executive Officer of BtoB Events, London, said: “People are saying that they want to promote their beauty products here. The truth is, Nigeria is full of beautiful resources, and we want to showcase Nigeria not only to West Africa, but also to the whole world. And thanks to Mrs. Chiedu for putting this together”.

    Some beauty professionals canvassed the need for regulation to ensure that quacks were disallowed from operating.

  • Sanwo-Olu: I will focus on the poor

    Lagos State All Progressives Congress (APC) governorship candidate Babajide Sanwo-Olu has said that he is prepared for the huge task ahead, if elected in next year’s election.

    He promised to preside over “creative and productive government,” which will attach value to technological advancement for the promotion of good governance.

    He promised “a government of inclusion”, adding that his administration will give succour to the poorest of the poor.

    Sanwo-Olu told reporters that his experience as a private sector operator, former special adviser and commissioner, and head of an important corporation in the state have prepared him for the job of governor in the Centre of Excellence.

    He said having been part of governance since 2002, he is conversant with the challenges confronting the city state.

    He said Lagos under the leadership of himself and his deputy, Dr. Obafemi Hamzat, will witness progress, adding that he will build on the achievement of his progressive successors.

    Read also: Sanwo-Olu won’t abandon ongoing projects, says Ambode

    Sanwo-Olu told the story of his life, spanning his days at the University of Lagos, Akoka (UNILAG), where he studied Surveying, to his career as a surveyor with a thriving company handling some contracts in the Niger Delta, Maiduguri, Bugarg, Mongonu, and other parts of the Northeast.

    He recalled his rise from the ashes of a crash business, saying that the lesson he learnt was that the success of a man is how far he can rise after each fall.

    The flagbearer recalled his memorable years in Kerry Micheal and Company, and later, at the Lead Merchant Bank, where he was the treasurer.

    Sanwo-Olu also spoke on his illustrious career at the United Bank for Africa (UBA), where he worked with high flyers as head of foreign money market.

    He said his corporate experience heralded his involement in governance in Lagos State when his boss, Otunba Femi Pedro, invited him to join him in the office of deputy governor. Sanwo-Olu said the experience he gained as Special Adviser on Corporate Matters, Acting Commissioner for Economic Planning and Budget, Commissioner for Commerce and Industry and Commissioner for Establishment, Training and Pensions were invaluable.

     

     

  • Let’s focus on agriculture

    Sir: The call for Nigerians to focus more on improving the agricultural sector may seem like an overly pummelled issue, but with the current state of the economy, the persistent echoing of the importance of agriculture may be the only way to make it resonate in the minds of people and perhaps lead them to take decisive action. The current administration’s seemingly obsessive attention on the sector is an indication of how essential agriculture is to the developmental process of our dear country.

    Nigeria is rich and blessed in terms of natural resources and one of these natural resources is the availability of fertile land for agriculture. Agriculture is a broad sector that involves the cultivation and breeding of animals, plants, fungi for food, fibre, bio-fuel, medicinal plants, and other products used to sustain and enhance human life. The question is, why have we not taken advantage of this God-given gift to our land?

    Embracing agriculture as the major source of income or production of food for the nation would go a long way in developing the practice itself from the manual farming predominantly practiced by our farmers to a mechanized, much more efficient method of farming. This would not only help the people in the rural settings of the country but also in the urban areas where farming has been forgotten and abandoned, as no nation can survive without food.

    Until it is given enough attention and importance, the sector may never regain its lost dignity. Agriculture has suffered a lot because of negligence by successive governments and the people. It is quite sad that a country like Nigeria that has such potential in agriculture is still running an economy based on a fast depleting crude oil.

    The government should continue to support the sector and provide the necessary assistance to the farmers, such as loans, machineries, fertilizers and organizing agricultural forum in order to widen the knowledge of the farmers about latest technological advancement in agricultural practice. The youths should also embrace farming irrespective of their status and educational level as there are fewer white collar jobs in the labour market.

     

    • Hussaini Salisu,

    IBB University, Lapai, Niger State.

  • AfDB to focus more on power sector in 2018

    AfDB to focus more on power sector in 2018

    The Country Director, African Development Bank (AfDB), Mr Ebrima Faal,  said  the bank would focus mostly on power sector in 2018.

    Faal said this during an interaction with newsmen at the newly-built Nigeria Country Department Office on Tuesday in Abuja.

    He said the new office to be commissioned on January 18, was the first structure to be designed and constructed from scratch.

    “The 2018 programme of the bank is focusing mostly on power sector, we have several solar projects that we are handling together with the world Bank and other partners.

    ”We are working together in some of these projects in Jigawa, Bauchi and Sokoto States among others.

    “We also anticipate supporting the private sector in developing two large fertiliser plants for both internal and external use.

    “There is a world class clinic of medical facilities called Santaclara Clinic located in Lagos, which we hope to finish.

    ”We are also working to provide lines of credit on cassava processing and agribusiness; those are the projects the bank will be supporting this year,” Faal said.

    The Country Director said  the Bank was planning to install solar panels once the commissioning ceremony of its new building was completed on Thursday.

    He said the essence was to supplement the generation of more power that would allow the Bank to have additional sources to support both the building and the premises.

    “We are in the process of installing solar thermal technology as additional source of cooling and lighting the new building and premises.

    “We have already installed environmentally friendly chargers to charge electric cars for those that are using these type of cars.

    “Last year was my first year, so when I came to Nigeria, we had already invested 1.6 billion dollars between the project support in the Northeast and some water projects,”he added.

    He said the Bank was working closely with Nigeria and ECOWAS to achieve results.

    According to him, the Bank maintains a robust and unique partnership with the Federal Government, which has been instrumentally important in the growth of the institution as a shareholder.

    He said Nigeria was the largest shareholder with portfolio of over 5.5 billion dollars as at December 31, 2017, accounting for 13 per cent of the bank’s total portfolio.

    Faal said in November 2009, the Bank’s Board of Directors approved the project to acquire premises for Field Offices, adding that works commenced in November 2011.

    He said the detailed designs and tender documents were then finalised in August 2013.

  • Focus on productivity, experts tell CBN

    Focus on productivity, experts tell CBN

    The much-awaited 2018 is here with lots of promises and opportunities for the economy. Financial pundits want the Central Bank of Nigeria (CBN) to focus less on inflation control which is stifling growth, sustain foreign exchange interventions and lift productivity drivers like Small and Medium Enterprises (SMEs) and manufacturers, through improved credit access, writes COLLINS NWEZE.

    No one wishes to see the challenges that put the economy in jeopardy in the last year in this brand new 2018. But realising this wish would require proactive and intelligent decisions by the economy managers, especially the Central Bank of Nigeria’s (CBN’s) mandate to keep the inflation low, achieve stable exchange rate and ensure that interest rate is positive (above inflation rate) to encourage more people to save and enhance banks’ drive to grow the economy.

    The CBN’s role is to deliver price, financial system stability and sustainable economic development using effective, efficient and transparent implementation of monetary exchange rate policy and management of the financial sector.

    Financial pundits have advised the CBN to focus less on keeping inflation low, but lift productivity, drivers like Small and Medium Enterprises (SMEs), manufacturing, agriculture and other real sector operators have suggested.

    Impressed by the rate of the economy’s recovery, the CBN Governor, Godwin Emefiele, is confident that the country will return to single digit inflation rate.

    Former Executive Director, Keystone Bank, Richard Obire, said the CBN should stop selling treasury bills at attractive rates, which has made it easier for banks to invest and declare huge profits without contributing to economic growth.

    “Banks should in the New Year support productive sectors of the economy and not just invest in treasury bills. The CBN should also leave inflation to take care of itself. The Ease of Doing Business should be improved on while the foreign exchange interventions should be sustained,” he said.

    He commended the CBN’s efforts at stabilising the naira at both the official and parallel market. He said although the CBN has not fully succeeded restoring the local currency’s lost glory, but the regulator has won a major part of the battle.

    For the first time in nearly eight months, the local currency sustained its stability against the greenback. Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, explained that at the parallel market, the naira traded flat against the dollar at N364/$ on December 28.  The naira depreciated against the dollar to N365/$ before appreciating to N364/$ as the demand pressure from increased liquidity and foreign investors exiting their positions intensified.

    “Parallel market rate has appreciated 34.6 per cent year-to-date; the introduction of the Investors and Exporters’ Forex Window in the market, accretion in external reserves and improved stability in the forex market all contributed to a stable exchange rate in 2017. Depreciated against the pound by 0.2 per cent to close at N484/£ while it closed flat against the Euro to close at N426,” he said.

    At the interbank market, the naira appreciated marginally to close at N306.05/$ from N306.25/$ on December 14. The external reserves level increased by 2.9 per cent ($1.07 billion) during the period, to close at $37.92 billion on December 22. This was due to the proceeds from the Eurobond issuance. The import cover increased to 10.53 from 10.24 months on December 14. The gross external reserves have gained 46.75 per cent year-to-date.

    A top manager in one of the Tier-1 banks said the CBN has done very well in stablilising the local currency against the dollar and that currency speculation was no longer attractive. The source said the CBN can actually pump in more dollars and bring the exchange rate lower, but the challenge would be sustaining the rates below its present status.

    The source who spoke anonymously at the weekend, said the CBN has since January, spent over $7.7 billion to stablise the forex market. The Investors’ & Exporters’ FX Window currently records about $80 million daily turnover, with the CBN contributing about 15 per cent of the transactions.

    The source said with Nigeria importing almost everything, it will be difficult to further strengthen the naira as such could become disincentive to foreign investors. “We need the foreign investors and they always consider the right value for the local currency. Any rate lower than this might not be favourable to the investors who will always want to get value for their investments,” the source said.

    The Investors & Exporters Forex Window was introduced by the CBN on April 24. About $3.83 billion has been traded through the window since inception. The window has impacted positively on the naira. The window, where buyers and sellers are free to agree an exchange rate, was introduced to attract foreign investors and boost the supply of dollars.

    There has been continuous improvement in dollar inflow into the market from offshore investors, a trend that has also reflected in the volume of transactions at the equity market. Before the window came on board, the CBN was the main supplier of hard currency on the interbank forex market, after foreign investors fled naira assets in the wake of an oil price slump in 2014.

    Aside establishing the Investors’ & Exporters’ FX Window, the CBN also opened a special forex window for SMEs. The window, which allocates $20,000 per business per quarter, helps the SMEs import “eligible finished and semi-finished items” needed for their businesses. The CBN said the bank’s special intervention was necessitated by its findings that many SMEs were being crowded out of the forex space by large firms.

    CBN Governor  Godwin Emefiele, had earlier called for a change of lifestyles among Nigerians to sustain naira’s recovery against the dollar. He said in a campaign shared by the bank’s spokesman Isaac Okorafor: “The size of Nigeria’s reserves and the value of the naira critically depend on our lifestyles and on the value and types of imports we allow into the country.”

    Emefiele’s message implied that a change in consumption pattern from foreign to indigenous goods would impact positively on the value of the local currency.

    Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said the CBN has succeeded in chasing away currency speculators. “There is stability in the parallel market, and we are happy that the foreign reserves have been climbing to new heights. The rising foreign reserve is a comfort for the CBN and I can assure you that currency speculators have to be careful,” he said.

    However, some stakeholders attributed the naira’s woes to CBN’s inability to fully liberarise the foreign exchange market and allow the naira to float.

     

    Sanction for forex abuses to continue

    As long as Nigeria’s economy remains import-driven, the demand for foreign exchange (forex) will continue to be substantial.

    Both manufacturers and other end-users always find one reason or the other to demand for forex including payment for production raw materials, schools fees or even medicals fees abroad. All these run into billions of dollars on weekly basis hence the need to ensure that only genuine forex demands are met.

    This prompted the CBN to issue operational guidelines for banks dealing on forex as well as sanction those violating set rules.

    That explains why commercial banks were last year hit with allegations of not keeping the rules guiding their forex transactions and these sanctions for forex violators are expected to continue this year.

    CBN Director, Banking Supervision, Ahmad Abdullahi threatened to sanction any Deposit Money Bank (DMB) in breach of its earlier directive of March 3, instructing them to, among other things, open teller points for retail forex transactions and to have electronic display boards in all their branches, showing rates of all trading currencies.

    While noting that the objective was aimed at creating awareness among members of the public regarding the availability of such facilities in branches of the banks at clearly disclosed prices, the CBN frowned at the banks for not fully complying with its directives.

    The  CBN had directed banks and authorised dealers to open a teller point for retail forex transactions involving Personal Travel Allowance/Business Travel Allowance and Small and Medium Enterprises (SMEs). Such facilities would make it easy for their customers and other forex users to buy and sell forex in all locations and ensure access to foreign exchange without any hindrance.

    The CBN had also directed commercial banks to have electronic display boards in all their branches, showing rates of all trading currencies, which it urged customers to insist on in processing their forex transactions for invisibles and the SMEs window.

    “The CBN has given the erring banks a four-week period, expiring on October 13, 2017, to fully comply with its directives or face regulatory sanctions, which it noted include but not limited to being barred from all future CBN foreign exchange interventions,” the bank said.

     

    Manufacturers, end users get forex

    Access to forex by manufacturers and other end-users has improved in recent months. There is currently enough forex for Personal Travel Allowances (PTAs) and Business Travel Allowances (BTAs), payment of school fees abroad, medical bills payment and other needs. That improvement has made positive impact on the economy and is expected to continue in 2018.

    The manufacturing sector, which for nearly two years recorded poor performance, has been upbeat in the last three months.

    Reacting to this development, Managing Director, Afrinvest West Africa Limited, Ike Chioke, said the recent improvements in the business environment coincide with the launch of the I&E FX window as well as higher oil prices and domestic crude oil production which have both culminated in increased FX supply.

    “As the economic recovery is still fragile, the business cycle going forward will remain anchored by stability in the Niger Delta, developments in the oil market and domestic forex policies,” he said in an emailed report to investors.

    Besides, the headline inflation rate has trended lower since peaking in January at 18.7 per cent and closed at 15.91 per cent in October while the exchange rate and the equities market have also stabilised rapidly.

     

    Investment climate

    Rewane said there will be investment shift from fixed income securities like Nigeria’s Treasury bill to equities market. Already, T-Bills rates have declined by an average of 5.68 per cent at the secondary market in the month of December. The yield on 91-day T/bills decreased to 10.98 per cent on December 28th, compared to 15.3 per cent on December 4th.

    Likewise 182-day bills dropped to 13.76 per cent from 17.10 per cent at the beginning of the month. The decline was driven by reduced appetite for government securities, as traders shift to the equities market. This trend also is also highlights the possibility of the CBN adopting an accommodative stance next year.

     

    IMF position

    The International Monetary Fund (IMF) revised its projections for Nigeria’s growth to 2.1 per cent from 1.9 per cent. Short-term growth will be supported by higher oil prices and domestic production, increased forex liquidity and market deregulation. These will boost investor confidence, foreign direct inflows (FDI) and foreign portfolio inflows (FPI).

    According to the fund, economic performance will be supported by improvements in the power sector and business environment. Short-term growth will be supported by higher oil prices and domestic production, increased foreign exchange (forex) liquidity and market deregulation. These will boost investor confidence, foreign direct inflows (FDI) and foreign portfolio inflows (FPI). Improvements in the power sector and business environment will also be positive for the private sector activity.

    To ensure sustainable and inclusive growth, the IMF recommended a comprehensive set of policy measures. These include tax reforms, social safety programmes, and investments in infrastructure.

    The fund said the second half of 2018 will be politically-driven. Thus, it said there will be increased government spending in the run-up to the elections which will be favourable for growth. On the other hand, investors may adopt the wait and see approach due to political uncertainties.

    “Nigeria’s economy remains largely vulnerable to commodity shocks. Thus, lower oil prices, or a dip in domestic production due to militant activities will weigh on economic activity, and could possibly reverse current progress. Any delay in policy responses will also prove detrimental,” it said.

    Oil prices touched $67.02 per barrel (pb) on December 26, before retreating to $66.44pb on December 27. The uptick in price was the aftermath of the pipeline explosion in Libya. The pipeline belonging to Waha Oil Company, supplies about 90,000bpd to the Es Sider Terminal, the largest depot in Libya.

     

    Restriction on 41 items

    The CBN restriction of 41 items from accessing forex  from official windows was one of such policies by the regulator to resuscitate domestic industries and improve employment generation.

    More than two years after the policy shift, its objectives such as encouraging local production of the affected items and boosting local industries suffocated by the importation of competing products are being realised.

    The policy implementation was part of the homegrown solution introduced by CBN Governor, Godwin Emefiele, to sustain forex market stability and ensure the efficient utilisation of available forex to grow critical segment of the economy.

    This policy implies that, those who import these items can no longer buy foreign currency from the official window to pay the overseas suppliers. Rather, they will have to source forex from the parallel market or BDCs  to pay for their imports.

    Emefiele said the bank has been developing home-grown policies to surmount challenges that confronted the economy in recent times.

    For instance, over the last 10 years, the CBN had invested over N2 trillion in funding agriculture, Small and Medium Enterprises (SMEs) and other manufacturers in the agriculture value-chain. The regulator said  the apex bank would continue to support operators in the agriculture, SMEs and manufacturing enterprises through its development finance initiatives, with a view to complementing the Federal Government’s efforts at diversifying the economy and ensuring that the nation is self-sufficient in food production.

     

    Demand from BDCs

    Gwadabe appealed to the CBN to help BDCs reduce rising bank charges associated with their transactions. “BDCs are charged N1,000 per N1 million transaction and with each operator paying as much as N67,000 for the N67 million monthly transactions. These charges are too high, and I urge the CBN to help reduce the charges which are becoming huge burden on BDC operators,” he said.

    Findings showed that each of the 3,500 BDCs carry out transactions worth N16.8 million weekly, which comes to N67 million turnover and N67,000 maintenance fee monthly.

    He disclosed that this fee has made it difficult for many BDCs stay profitable in the business because of the rising operating costs and including overhead. “I appeal to the CBN to address this challenge so that the market will continue to enjoy ongoing stability,” he said.

    The CBN had directed licensed BDCs to ensure that all their transactions have the BVN of the buying customers. The information must be included in the forex returns to the regulator. In the case of corporate customers, the BVN of a director of an authorised signatory of the entity must be provided to the BDC.

    Gwadabe explained that to ensure a hitch-free implementation of the directive, the CBN has continuously provided list of all licensed BDCs to the NIBSS to enable the firm make available the necessary hardware token that would be used by the BDC in accessing the NIBSS portal.

    The NIBSS has subsequently made the portal available on its website to facilitate access for the confirmation/validation of the BVN number of the BDCs’ customers.

    Gwadabe disclosed that all forex-buying customers’ BVNs must be validated by the CBN authorised forex dealer through the NIBSS portal before all transactions are consummated. He said that ABCON carried out the sensitisation to ensure that BDCs effectively comply with the directive.

    The ABCON boss, Gwadabe, praised the CBN’s drive to stabilise the forex market, stem the rampant cases of forex leakages and illicit money transfer from the country.

    He said that ABCON will continue to align with the CBN’s vision of providing a stable framework for the economic development of Nigeria through effective, efficient, and transparent implementation of monetary and exchange rate policy, and management of the financial sector.

    Gwadabe said the ABCON will continue to work closely with the CBN to ensure BDC operators abide by regulatory rules. The ABCON under Gwadabe has also pledged to ensure that forex purchased by BDCs are disbursed to end users and for eligible transactions only.

    The BDCs, he said, will continue to render returns on forex purchases from the CBN to Trade and Exchange Department of the apex bank. He further promised to ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate Know-Your-Customer (KYC) principles in the handling of forex transactions.

    The BVN, which captures customers’ biometric data, such as fingerprints, provides unique identification number for the customers and protects their accounts from unauthorised access, identity theft and fraud.

  • The fruits of a decade of tenacity, focus

    The fruits of a decade of tenacity, focus

    In the ninth edition of Life In My City Arts Festival (LIMCAF) 2015, the sponsors’ page had a total of 20 sponsors. By a crude statistical analysis, the success story of the sponsorship of this festival shows that approval rating of both public and art patrons have doubled. This is very important because private institutions are not sentimental about where they put their money. Therefore, this positive support shows that the organisers of the festival have made a success of the project. The increasing number of sponsors also spells a good omen for the future of the visual art in Nigeria. This should keep our hope on the future of the visual arts in the country alive. What makes LIMCAF unique is that it is competition-based.

    Across countries around the world the budgets of art and culture have always taken the back seat, especially during economic down turn.  In 2013 while participating in one of ambitious projects of the Smithsonian Institute’s Museum of African Art in Washington DC titled, “Earth Matter…”, we were told that the budget for the year showed a drastic decline blamed on economic crunch. We laughed painfully at this, noting that whenever there was a cut in national budgets it was always the culture and especially the visual arts sector that suffers. This is irrespective of whether we are dealing with a developed country or an emerging one.

    LIMCAF, this year marks 11 years of progressive achievements despite all the challenges. Any organisation that survives 10 years of existence against all the odds deserves recognition and commendation. We view this so in a country such as ours where the only thing that is really stable is instability. The past 10 years is a period where the arts have seen little or no significant increase in sponsorship, and one dare add even adequate recognition from governments. Yet this sector, and we would continue to make the point until we cannot be ignored, represents one of the few essential vehicles of national development. (The economic value in terms of revenue generation has just been discovered). At first glance LIMCAF would appear to be like a regional art festival, however its structural profile reveals a national dimension. Consider how elaborate the structure of the festival has now evolved. It draws art works from the length and breadth of the entire country: Abuja, Auchi, Enugu, Ibadan, Kaduna, Lafia, Lagos, Owerri Port Harcourt and Uyo. This covers the six geo-political zones of Nigeria. The cities are capital cities that represent perhaps the greatest and most vibrant cultural centres representing the diversity of people of Nigeria. LIMCAF symbolises a quiet cultural revival that would one day give birth to a mega art festival like Documenta.

    If nation building is one of the greatest challenges of young nations like Nigeria struggling from the residual shackles of post-colonial experience, then this festival must be seen as a platform where national integration can be achieved. The challenges of corruption, insurgency, militancy and crave for self- governance by certain sections of the country confronting us today make the festival even more important for any serious government to take note of.

    Like other entries we have witnessed since the beginning of the festival, the works of this festival will once again feel the pulse of the country. They would capture some of our ailments; capture our spirit of celebration even amidst economic gloom. The spirit of tenacity is symbolised and expressed in the creative survival techniques irrespective of failed governance and leadership. Only very recently a documentary of a young man was televised. He built and demonstrated a machine that transforms waste polythene bags into biofuel. This is just one example of many Nigerians who, on a daily bases develop ways to live without government. The common man continues to evolve alternative micro economies. There are two sides of the coin to this. On the positive side strategies for independent development rooted in our context are being articulated. Through LIMCAF for example, we can see how the common man, represented by the artists who made entries for this completion, has devised innovative use of unconventional materials, techniques and styles in the works they have submitted. You will observe that their subject matter will be topical, drawing deeply from the roots of the complex and delicate fabric of the country.

    On the negative side of the coin, we can see where the root cause of lawlessness, corruption and chaos can be found. The absence of good governance produces greed, selfishness, impunity and the entire negative vices that threaten corporate existence.

    Artists by their very nature draw from the wealth of their experiences, surroundings and interpret these visually based on their unique ability to see. Their capacities to empathise, visualise, respond, interpret, and challenge our perception of both the physical and emotional world enrich the entirety of human existence. Often they envision the future for us in such a way that some assume prophetic status.

    As we celebrate 10  years of LIMCAF, let us attempt to evaluate the contributions it has offered Nigeria so far. This should encourage our sponsors to see value in what their money is doing. It should also encourage skeptics to review their position and join in the good project. I would like to identify a few as follows:

    -The Festival has created real tangible platforms for the public to appreciate art. It has increased the public’s knowledge and interest leading to creation of more sponsors, patronage of the arts.

    – We have become culturally informed, conscious and patriotic of our heritage and identity as a people.

    – LIMCAF has exposed us to some of our national challenges positively, giving us hope to persevere. Through this festival we also can celebrate the best of our diverse cultures, humanity, and our common values. These together can lead to national integration. In addition, peace, unity finds fertile ground to grow and flourish. LIMCAF has built and continue to build network of friendships across the country.

    – A critical tourism component has been added to Enugu and indeed Nigeria as a whole. Big art festivals are tourism assets; they carry along with them potentials for infrastructural development and attract investors. Local businesses are created and developed, employment is created and revenue generated.

    From the artist end, LIMCAF has added and continue to build professionalism, cooperation in art practice, adventure and network friendship across geo-cultural boundaries. Art festivals encourage experimentation with materials, techniques and the sharing of ideas. This advances the development of the arts on a global level.

    How should we conclude this overview? By now we should expect that the government of Enugu state, the Federal Ministry of Information and Culture represented by their various relevant parastatals, should have LIMCAF in the their budgets, cultural calendar and create a desk in their offices dedicated to handling festivals like this. Channels of collaboration between these organs should be well established by now. The organisers of LIMCAF should be part of the Think Tank of cultural Change in today’s government.

    Perhaps we have said nothing new here that is not already known. So, what is the solution for advancing the growth and development of the arts? LIMCAF is a model. I am persuaded to think that continues hosting of LIMCAF, building more partners and seeking government’s blessing (i.e. conducive environment) is the way to go. In the end, we know that the critical partners for the advancement of the visual arts or even culture are found in the private sector and individuals who love and appreciate quality living.

  • Alimikhena to Obaseki: Focus on development

    Alimikhena to Obaseki: Focus on development

    Senate Deputy Chief Whip  Francis Alimikhena has commended Edo State Governor Godwin Obaseki for unveiling a new economic blue print for the state.

    He urged him to remain steadfast in his action and developmental activities. The senator from Edo North said the governor should not be distracted by praise singers and critics who are bent on faulting his actions or decisions. In a statement, Alimikhena said: “Godwin Obaseki has demostrated that he is a worthy successor and has no capacity in telling lies, but committed in building on the foundation already laid by Comrade Adams Oshiomhole who had laid a leadership benchmark for political office holders in Nigeria.”

    Alimikhena, who described Obaseki as a game changer, added:  “Since inception, Obaseki has displayed dexterity and passion by involving opposition party members,traditional rulers, students, traders, non-governmental organisation and critical stakeholders, to collectively think of a way forward for the state.

    “The action of the governor in exploring the best brains and effective ultilization of the state human resource as his think tank, irrespective of political affiliations, religious or ethnicity has fostered greater unity and confidence among our people in various parts of the state.”

  • Focus on internally displaced women

    SIR: Each year, International Women’s Day features thousands of events – global gatherings, conferences, awards, exhibitions, festivals, fun runs, corporate events, concert performances, speaking events, online digital gatherings and more.

    Events are held by women networks, corporations, charities, educational institutions, government bodies, political parties, the media and further communities. International Women’s Day (March 8) is a global day celebrating the social, economic, cultural and political achievements of women. The day also marks a call to action for accelerating gender parity.

    The theme/message for each year calls for more action by the government of countries, especially for women who are still largely considered second class citizens.

    But can we say that Internally Displaced Women benefit from this day? This day is meant for women all over the world, therefore we should not forget the internally displaced  women in our celebration.

    Women are the most vulnerable during times of war, be it a large-scale civil war or pockets of insurgency as is being witnessed in the northeastern part of the country. With over three million people displaced since the rise of the insurgency, Nigeria has one of the highest numbers of Internally Displaced Persons (IDPs) in the world, many of which are women. A large number of these women are heads of households, according to the UN special rapporteur on the human rights of IDPs, Chaloka Beyani.

    While the security and Civilian JTF are currently doing their best to end the insurgency, a lot of harm has already been done to the psyche of women and children. The widely reported atrocity perpetrated against women during the period of the insurgency is abduction of over 200 school girls from Chibok, Borno State.

    We must also appreciate the effort made which rescued 19 of them. Mass abductions and rape are just a few of the experiences that women have and continue to face in the hardest hit states of Borno and Yobe states.

    The sexual exploitation and abuse occurring in Maiduguri IDP camps came to prominence in late October due to the publication of a report by Human Rights Watch. The report documented sexual abuse, including the rape and exploitation of 43 women and girls living in seven IDP camps. Some of them were drugged and raped, while others were promised marriage (which never happened). Others were offered material and financial assistance in exchange for sex.

    Women forced to accept these terms then suffered discrimination, abuse and stigma from others in the camps, as did the children born from these exploitive encounters. Their abusers were members of security forces, vigilante groups, camp leaders and camp officials.

    On the occasion of 2010 International Women’s Day the International Committee of the Red Cross (ICRC) drew attention to the hardships displaced women endure. The displacement of populations is one of the gravest consequences of today’s armed conflicts. It affects women in a host of ways.

    What percentage of internally displaced women have access to safe drinking water, adequate shelter, education, adequate healthcare and necessary information? The answer is zero percent. These are just a few of the problems faced by these women. When I visited one of the IDP camps here in Maiduguri, I was shocked when I saw the food these people eat, they just eat for survival.

    International Women’s Day is an official holiday in many countries including Afghanistan, Armenia, Burkina Faso, Cambodia, China (for women only), Cuba, Georgia, Guinea-Bissau, Eritrea, Madagascar (for women only), Russia, Uganda, Vietnam, Zambia etc. The tradition sees men honouring their mothers, wives, girlfriends, colleagues, etc with flowers and small gifts. In some countries International Women’s Day has the equivalent status of Mother’s Day where children give small presents to their mothers and grandmothers.

    Make everyday International Women’s Day. Do your bit to ensure that the future for girls is bright, equal, safe and rewarding.

     

    • Mu’awiya Shuaibu,

    Mass Communication Department

    University of Maiduguri, Borno State

  • Focus on mines, steel development, Fed Govt urged

    Minister of Mines and Steel Development Dr. Kayode Fayemi has urged the Federal Government to give special attention to the development of eight critical areas to improve the mineral and mining sector.

    This is contained in the Ministry’s Roadmap where the Minister said the government should focus on investor-friendly regulatory environment by conducting reviews its tax system, licensing fees and other fees.

    According the document, Nigeria neglects the investor friendliness of its mining sector after the shift to a state-led mining development model. It said significant infrastructure investments would be necessary to unlock mining full value chain potential in Nigeria.

    “This will include the development of power plant, rail, roads, water processing plants among others in the country,’’ the report said, warning that failure to take proper action and structure to protect and promote these capital investments appropriately would constrain mining sector’s growth rate.

    According to the report, the success in Nigerian mining sector requires partnership across multiple communities, stakeholders and institutions; the role of state governments as co-investors and sector champions are critical.

    It also stated that success in mining would require that Nigeria as a society interface with other branches of government, community activists, professional, societies, and investors.

    “The high risk allocation in the early phase of mining projects means that activities such as exploration and ore reserve estimation have difficulty in obtaining funding from standard project finance sources.

    “The Solid Minerals Development Fund (SMDF) envisioned in the mining act would be operationalised and made available under well defined terms to help de-risk activities in the sector, the report added.

    The roadmap said the ministry anticipates that the various initiatives that will emerge from financial sponsors and other market actors will receive support from the SMDF to broaden its capacity to support both exploration and development activities.

    The document, which was launched last December said institutional reform, geo-scientific value add and mining as development catalyst, were among the critical factors needed to move the sector forward.