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Tag: grassroots

  • NIPOST, Bics take banking to grassroots

    Nigeria Postal Service (NIPOST) and Bics Enterprise are collaborating to bring financial services to the grassroots. The Software Group, a global technology firm, will provide the technological backbone needed to implement the partnership.

    The agent distribution network, according to Bics, will provide employment for over 10,000 youths and add 20 million unbanked and underserved Nigerians to the banking system, within two to three years after deployment.

    Bics’ Director, Corporate Services, Greg Nwamadi, said: “The major objective of Bics Enterprise is to provide channels to drive financial banking to rural areas. We are ruling out an agent distribution network that will provide employment for over 10,000 Nigerians in a short term.

    ”We are going to activate NIPOST locations as transaction centres which are about 4000 locations. Every location will have a mandate, because we are going to be involving micro-finance banks worldwide.

    The agreement we have with NIPOST on this innovation is exclusive to micro-finance banks and non- financial banking institutions. Commercial banks can come as settlement bank. We are already discussing with one or two of them to come in as settlement banks.”

    Sales Manager, Africa, Software Group, Joseph Agyeman-Badu noted that the innovation was a direct drive to the achievement of the Central Bank of Nigeria’s (CBN) 2013 financial inclusion goal. “Going on a national level is not a walk in a park; we will need to take some time. When we are done with our plotting, we will be ready to go on a national scale. This innovation is a direct drive towards CBN’s 2013 financial inclusion goal.

    “The underserved and the unbanked are the people that you won’t find in Lagos but in rural areas. 90 million Nigerians today do not even have bank accounts or   access financial services. This innovation is going to break that gap. In  another two to three years, we will add at least 20 million out of the 90 million unbanked and underserved into the banking space.”

     

  • DAWN of grassroots football

    DAWN of grassroots football

    It’s no weekend or Sunday, but Hardball, a football zealot, is especially excited — excited at another innovation in grassroots football.

    The excitement is not only about the  DAWN — Development Agenda for

    Western Nigeria — Commission, which has mid-wifed the proposed Western Nigeria Football League (WNFL).  It is also because that great idea is getting quality attention from the apex of Nigeria’s football house.

    As in other sectors, it is applying the credo of regionalization (read decentralization) to football, both as sports and as business. You can never lose on that score, for it follows the federalization of football and its management.

    Amaju Pinnick, Nigeria Football Federation (NFF) president, on March 2, said it all, at the inauguration of the Western Nigeria Football Forum Office, domiciled at the iconic Cocoa House, Ibadan, the same regional historical monument that also houses the DAWN Commission.

    Ibadan was capital of the pace-setting Western Region, in the Awolowo glory years: first university, first television in all of Africa, first modern stadium then named Liberty

    Stadium and of course, tallest building in all of Nigeria, the Cocoa House, in which the epochal event was taking place.

    Amaju also relayed how the West produced iconic footballers in the likes of Segun Odegbami, Muda Lawal, Felix Owolabi and Sam Ojebode, still leaving out other greats like Teslim “Thunder” Balogun and of course, ace winger and hero of the 1976 Nations Cup in Dire Dawa, Ethiopia, Kunle Awesu, of blessed memory.

    But what Amaju didn’t trace was the decay of the once luxuriant sports garden where all those came from, now parched; and almost desert-like.

    Proof? 3SC, Shooting Stars Sports Club (formerly Investment and Industrial Credit Corporation, IICC of Western Nigeria, also earlier known as Western Nigeria Development Corporation, WNDC) has fallen into hard times.

    The first Nigerian club side to land any continental laurel, winning the African Cup Winners Cup in 1976, it has faded from among the top performers of yore.  It now always languishes among the laggards of the Nigerian Professional League (NFL), if not completely taking the drop to the lower division, as it did after the 2016/2017 league season.  That simply means the ready streams of the Ojebodes, Lawals, Odegbamis and Owolabis are drying off.

    If the new WNFL addressees that alone, then it would have done a vital task for this generation, bring back some Renaissance on the football pitch.

    But it should be more than that really: that league, if it plumbs the grassroots, has the prospects of fully turning football in that part of Nigeria into an integrated business, spanning the local manufacture of soccer boots and other foot wears, jerseys, club merchandizing and allied businesses, from which young football talents, coaches, sports doctors, lawyers, other ancillary professionals and even local musicians are gainfully employed.

    That is the way to go, for every part of the country.  Can you now see why Hardball is excited?

  • ‘PDP ‘ll consolidate at grassroots’

    ‘PDP ‘ll consolidate at grassroots’

    Peoples Democratic Party (PDP) national chairmanship aspirant Chief Uche Secondus spoke with reporters in Lagos on his plans,  waivers for defectors and other issues.  Musa Odoshimokhe was there. 

    What is your agenda for the PDP and will the party return to power in 2019?

    Part of my agenda is returning the party directly to the grassroots, the people. And how do I want to do this? We will empower the states PDP, through that it will move to the electoral wards and possibly the units. Again, one way to do it, is to put the party in a position, where the people at the grassroots will decide who their representatives will be. Unlike before, where the whole thing was done from Abuja and which ends there, we want to return the party to true democracy. We must allow the people to make their choice and then move the party forward. Now that we are no longer in power, the people should be allowed to make the choice, which is the beautiful thing about democracy. We can no longer stay in Abuja, to do things the way we just feel it should be done. The ward system in the party is being eroded, it is the people who wear Agbada that call the shot, whereas the people who suffered and actually vote don’t even come to the light. The most important thing is to win election, those who work to deliver their wards, are no longer in the picture of things. This time around, we are going to have things done differently. The people should be carried along, so that they are part and parcel of the process. There is the need to build confidence in the people at the grassroots, so that they will have that sense of belonging. If that is achieved, the party will be gradually repositioning ahead 2019 and of course this goes along with aggressive massive membership drive. That will build the confidence at the grassroots and allowing them to participate in all the decisions taken. One of the key factors is that, when you do that and a popular person is elected in a constituency, the people will massively support that person. That is because he is the choice of the people and they will be able to defend their votes. This is the different thing we are going to do which is different from the old order. We will work with the people, build confidence in them and allowing them to make their choice. This was not there in the last few years when we were in power.  I have done a census and by the grace of God, we understand where the problems are and we are prepared to tackle them. We have less than one year to go for the election, it will be the practical thing to start building the confidence almost immediately. When we do that, I can assure that they will see what we are doing in practical terms. The grassroots will be allowed to make their choice and not the big men from Abuja making the choice, it will not happen. We will totally abolish that and allow the will of the people to prevail.

    How will you address the issue of waivers for new people joining the party?

    We will be taking memo to the convention, before the last NEC meeting; we agreed that we will totally eliminate waiver, it will no longer hold new members down. Now waiver is going to be automatic because we want more members. It no longer going be two year, you barely be spend one month, so that the bottleneck and anything that would be a stumbling block to new member will be totally eliminated. People are free to come in and contest when they are popular. They have equal right as the old members. We know that Atiku had come back and waiver is no long an important issue. It used to be two years, at the convention in Abuja, the bottleneck will be removed.

    How can the party hold a hitch-free convention?

    The caretaker committee had devised some level of order for the convention. This was discussed when we signed our memo of understanding. We believe that people can have differences, but the bottom line is that on that day members are going to show that understanding. I believe that it will be very peaceful on that day.

    You were at the centre of event, when your party lost the 2015 election. What major thing are you putting in place to correct your party’s shortcoming?

    When I took over the affairs of the party after we lost the election, I constituted a committee that had to look at what led to why we lost the election. The finding discovered that we have to go back to the party constitution. There was an agreement that after the first tenure of former President Jonathan, we should return power to the north, but this was not followed. So, the major issue was zoning arrangement and immediately we got that report, we took that up and as the Ag. National Chairman, we wrote a memo to NEC and it was approved that we must return to the zoning arrangement. It was after NEC approval, I announced to our members that we had zone the Presidency to the north. Some people were not happy, but when you see that right thing should be done, you must be bold to do it. That was what I did and the convention also approved. For now, there is no controversy, we have returned to the zoning formula which our founding fathers enshrined in our constitution. The party must protect certain offices in order to ensure all parts of the country have a sense of belonging.

    What will you do to the Southwest, if you become the chairman?

    This is part of our constitution, offices must be zoned. There are lots of offices and you know that the Presidency has been zoned to the north. Apart from the party top leadership, I believe that the major ones, the President, Vice President, the Senate President, Speaker and others are there. There is no way none of these positions will not go to the Southwest, I believe that the party leadership will take care of that.

    There is the understanding that the Southwest will either get the chairman or nothing else…     

    We are not being driven by sentiments or emotion, if you go sentimental in any election, you will not move on. We are not considering that but, we know that we must all work together, if we must win election in 2019. And all the zones will be well represented in the PDP.

    Do you think your leadership can win election for PDP?

    Our mission is to hit the ground running. All hands must be on deck and we will get there. We cannot be claiming here that we can win it now, but we will hit the ground. We will get there; you don’t start a race and begin to look back.

  • DMO takes savings bond to grassroots

    DMO takes savings bond to grassroots

    The Debt Management Office (DMO) has taken Federal Government of Nigeria (FGN) Savings Bond campaign to the grassroots. The debt office is  targeting traders  within the Federal Capital Territory, Abuja.

    Speaking at the Gudu District Market, Director, Portfolio Management Department, Oladele Afolabi, told traders that the Federal Government is committed to promoting a good savings culture amongst Nigerians. He said the DMO will sustain campaign to encourage more people to invest in the Savings Bond.

    “We are here to let you know that what the Federal Government is offering is real. Government wants you to save and earn good interests on what you save. Saving with your government is the best way to save,” Afolabi disclosed.

    The traders were told that the Savings Bond belongs to the people, hence, the decision to involve ordinary Nigerians on the streets, in the markets, churches and mosques.

    The Gudu market outing is the first of many other awareness initiatives that the DMO will be undertaking to have Nigerians invest in the Savings Bond.

  • Sukuk bonds …Grassroots investors’ golden chance

    Sukuk bonds …Grassroots investors’ golden chance

    In Nigeria, 40.1 million adults, representing 41.6 per cent of the adult population do not have access to financial services. COLLINS NWEZE. examines the N100 billion seven-year debut Sovereign Sukuk offer by the Federal Government through the Debt Management Office (DMO) aimed at getting a large number of the financially-excluded individuals into the financial services net. 

    The need to get more people into the financial system- financial inclusion- is becoming a priority for policymakers, regulators and development agencies globally.

    In Nigeria, getting people and businesses to access affordable financial products and services that meet their needs- including investment in bonds– remains a priority for the government and the private sector.

    Financial access facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies. It also contributes both to economic growth and wealth creation, and remains a key factor in tackling poverty.

    Creating new investment opportunities is seen as the easiest route to get more people connected to the financial sector, boost capital market liquidity by offering new investors an opportunity to participate in Nigeria’s growing capital market. It is also an opportunity to raise huge capital for government and private sectors to meet their financial needs.

    A good example was the N100 billion seven-year debut Sovereign Sukuk offer by the Federal Government through the Debt Management Office (DMO). It was an opportunity to get more Nigerians into the investment net and boost capital market liquidity. The offer, concluded September 22, was over oversubscribed, with over N105, 878,320,000 realised.

    The Sukuk Bond issuance, remains part of government’s plan to fast track the development of infrastructure and engage in project-tied capital raising given that Nigeria has challenges with road, railway and power infrastructures. It was a project-tied investment facility and attracted investors from across a broad spectrum of the public comprising pension funds, banks, fund managers, institutional and retail investors.

    In the run up to the offer, Nigerians developed tremendous enthusiasm as they embraced the investment instrument advertised nationwide through roadshows by officials from the DMO, Ministry of Power, Works and Housing, and Central Bank of Nigeria (CBN) in Lagos, Port Harcourt, Kano, Abuja and Kaduna.

    The awareness campaign which drew attention to the projects Sukuk aim at, the construction and rehabilitation of 25 roads across the six geopolitical zones, aroused in the investors the patriotic fervour that led to the oversubscription.

    Investment experts pointed out that Sukuk, as a novel investment platform, achieved one of its aims which is to offer new investors an opportunity to participate in Nigeria’s growing capital market.  A look at the investors that subscribed for the Sovereign Sukuk revealed that another significant objective was achieved through the participation of over a thousand retail investors from across the nation who accounted for over four per cent of the total subscription.

    Vice President and Treasurer, International Finance Corporation, Jingdong Hua, said deepening the capital market through bond issuance will help smaller companies raise funds that are key to economic growth. He said Nigeria’s capital market has huge potentials and should be tapped into.

    The Director-General of DMO, Patience Oniha said that the acceptance of the offer was an indication of the viability of the instrument as an investment option as well as a demonstration of utmost faith in the economy.

    She praised the Federal Government and, in particular, the Minister of Finance, Mrs. Kemi Adeosun, for the policy support that led to the success of this initial offer which industry watchers accept as another window that has opened for the government to raise funds to fill the nation’s yawning infrastructure gap.

    She explained that debut Sovereign Sukuk is an ethical-inclined investment in which rent is based on the investment bi-annually and the principal sum paid at the end of the seven-year tenor. She said the product was designed as a revenue source to fund the construction and rehabilitation of key economic infrastructure projects across Nigeria, such as roads.

    “It is intended to diversify the sources of government funding, offer ethical investors an opportunity to invest in government-issued securities, achieve higher level of financial inclusion and serve as a reference for pricing Sukuk issued by other bodies, especially private sector issuers,” she said.

    Oniha, at the various stops on the roadshow, assured potential investors that the Sukuk is backed by the full faith of the federal government and was one of the avenues it intends to raise funds for capital projects.

    “This is one of several efforts to raise funds for specific projects and this is backed by the full faith of the Federal Government. It is a rental product to cater for segment of our society that requires such services,” she said.

     

    Stakeholders speak

    Managing Director of Credit Bureau, Ahmed Popoola said in a lecture  delivered at the 10th annual lecture of Muslim Lawyers Association of Nigeria (MULAN) in Lagos with  theme: “Pulling Nigeria Out of the Economic Recession” that bond issuance is key to economic growth.

    He contended that Sukuk, also called non-interest bond, is an alternative option worth exploring to raise funds for  public works and to support the private sector access to finance. He stressed  that the options that altanative finance offers in  funding public infrastructure and empowering small business will help bail the country out of recession.

    He explained that worldwide, Sukuk bond is no more peripheral to conventional finance as  it is being operated in 75 countries, including western nations. “People think that the non-interest financial system is based on faith, but it is based on justice for the two parties. Besides, the system does not allow investments that harm people  or the environment,  thereby promoting sustainable finance,” he said.

    He emphasised the  need to a diversify the economy and invest massively in  infrastructure, stressing “ there needs to be a re-orientation of Nigeria towards  appreciating our products is imperative. Peace and stability has to be restored to all parts of the country as it is crucial and a pre-requisite for any economic development.  “Foreign direct investment needs to be nuances and the promotion of Small  and Medium Enterprises (SMEs) needs special attention  as there is a need to  separate SMEs development  from poverty alleviation programmes.

    A financial analyst, Abiodun Rasaq, said prospects for the Sukuk are very bright. He said the finance system has become necessary given a very significant proportion of Nigeria population strongly believe that based on the nature of the capital market and the dictates of their religion, they cannot invest in the market.

    He called for the development of products that is attractive to these set of investors to allow easy flow of their funds into the market.

    The Managing Director/Chief Executive Officer of the Islamic Banking and Finance Institute of Nigeria (IBFIN), Sani Aminu Dutsinma, stressed that non-interest banking and finance instruments have the potential to check greed, high handedness, selfishness and corruption, not only in the banking and finance industry, but also in the public sector.

    Dutsinma, explained that such financing option, being asset-based, should, in principle be less prone to financial crime.

    According to him, the industry had expanded rapidly over the past few decades, growing between 10 to 20 per cent annually, as shariah-compliant financial assets are estimated at about $2 trillion, covering bank and non-bank financial institutions.

    The banking assets have been grown faster than conventional banking assets, he said, adding that there has been an increased interest in alternative finance from countries such as the United Kingdom, Luxembourg, South Africa and Hong Kong.

    Within sub-Saharan Africa, he revealed that South Africa leads in terms of alternative finance, with one of the largest international non-interest banking conglomerates namely Al-Baraka Banking Group.

     

    Opportunities in Sukuk

     With dearth in regular deposits, finding alternative funding sources by government and private sectors remains critical to growth and development.

    The Sukuk finance development has in recent years, become very attractive to investors in many African economies. Specifically, Nigeria, Sudan, South Africa and Senegal, Kenya, Morocco and Niger among other countries have put in place necessary legal and regulatory frameworks to enable alternative banking offerings in their respective jurisdictions thrive.

    The Federal Ministry of Power, Works and Housing, listed 25 road projects spread across the six geo-political zones of the country which the fund will be used for. Some of the projects include the Loko Oweto Bridge, dualisation of a section of the Abuja-Lokoja road, dualisation of the Suleja-Minna road, the dualisation of the Kano-Katsina road (phase 1), rehabilitation of the Onitsha – Enugu Expressway, and the Enugu-Port Harcourt road (section one to three). Others are the Ibadan-Ilorin Road (Oyo-Ogbomoso), Kolo-Otuoke-Bayelsa-Palm Road (Yenegwa Road Junction), Kaduna Eastern By-Pass and Kano-Maiduguri Road (Potiskum-Damaturu).

    Experts said the offer will boost investments flows based on trends already witnessed in the Federal Government of Nigeria (FGN) Bond, savings bond among others issued by the debt office.

    Benefits of investing in the Sukuk, according the DMO, include safety of investment, regular income which are tax free and liquidity as they will be listed and traded on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange Plc.

    The debut Sovereign Sukuk is for N100 billion with a tenor of seven years at N1,000 per unit. The offers were certified as ethically compliant by the Financial Regulation Advisory Council of Experts of the CBN. The product is also useful as collateral to access loans from banks.

    Also, the minimum subscription is N10,000, that is, 10 units at N1,000 per unit and in multiples of N1,000 ( per unit) thereafter. The rental payment is semi-annually while the redemption involves a bullet payment of invested funds at maturity.

    “Sukuk is different from Convention Bonds in the sense that it represents ownership interest in assets while bonds represent a pure debt obligation due from the issuer. The funds raised from Sukuk issuance must be used only for ethical purposes. Bonds can be issued to finance any legal purpose. The sale of Sukuk represents the sale of the holder’s interest in an asset. The sale of a Bond is the sale of a debt,” the DMO said.

    It said all categories of investors, including retail investors, high net worth individuals, institutional investors such as commercial banks, insurance/takaful companies, pension funds, asset managers, private banks and others. Also, ethically inclined investors, cooperative Societies, religious bodies, state investment companies and foreign investors will find it really attractive.

    Assessing the benefits of the financial instrument, the president of Federation of Muslim Women in Nigeria, Rivers State Chapter, Hajia Maimuna Bello, described it as a bold initiative to cater for a critical segment of the country and urged the DMO to deepen its awareness drive.

    In Abuja, a former executive director of the Nigeria National Petroleum Corporation (NNPC), Ibrahim Waziri, expressed the hope that the raised funds would be deployed to the listed projects. He stressed that as an ethical financial instrument, investors are assured of timely rental returns.

    The offer will be listed and traded on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange Plc.

     

    CBN speaks on the offer

     The CBN said the offer was geared towards infrastructural development and a worthwhile investment. Speaking at a one-day investors’ forum in Kaduna, CBN’s Deputy Director, Financial Markets Department, Demenongu Yanfa, said the the Sukuk will not only allow Nigerians take ownership of the roads with half yearly rental incomes, but will fast track the building of road infrastructure in the country.

    “The world is looking for new areas of investment. As of today, South Africa, Malaysia and some other countries of the world have embraced Sukuk to fund some of the construction and rehabilitation of key sectors of their economies,” Yanfa said.

    The International Monetary Fund (IMF) links the rapid growth of alternative banking in developing countries to its relative resilience to financial crises as compared to conventional banking. The sukuk is based on an ijara structure, a common leasing arrangement in the type of finance, which bans payment of interest.

     

    How it started

     Osun State issued a N10 billion sukuk yielding 14.75 per cent, bankers said. The bond, issued in October 2013, was the first Sukuk issuance from a major economy in sub-Saharan Africa.

    The cocoa-producing, southwestern state of Osun received N11.4 billion in total subscriptions for its seven-year paper, from asset managers, bankers said.

    The sukuk bond was issued in accordance with enactment of the Osun State Bonds, Notes and Other Securities Law 2012 and setting up the Osun Sukuk Company Plc. Though non-interest in nomenclature, the sukuk bond was a conventional bond and coordinated by the regular investors in the nation’s capital and money market. The bond was issued in accordance with the Security and Exchange Commission’s rules and regulations.

    The bond, being used to finance roads and school constructions across the state, is due in 2020. While authorising and approving the offer at the board meeting for the Sukuk Company, the Osun State Governor, Ogbeni Rauf Aregbesola, said his government took the Sukuk bond as an opportunity for the development of the state. He appealed to the people to see the bond as an avenue to attract development to the state for the benefit of all and sundry.

    Other African countries including South Africa, Kenya and Senegal have been laying plans to issue a sukuk and Gambia has been selling small amounts of non-interest debt for several years.

    Managing Director of Cowry Assets Management limited, Johnson Chukwu, said the basic thing is that it provided opportunity for people that do not want to invest in interest-bearing instruments to participate.

    “The Sukuk bond will meet the investment need of large population of Nigerian that do not want to invest in interest-bearing instruments. It will attract funds from people that have refused to invest in other debt instruments because of their values. It will bring more people into the financial system,” he said.

    He said sukuk can play an important part in the development of an non-interest market and banking system.

     

    CBN’s regulation

     

    The CBN had in 2015, issued guidelines for an advisory body that will oversee non-interest banking in the country.

    An essential governance structure and element of regulatory oversight for institutions offering non-interest financial services is the establishment of an advisory body at the level of the Central Bank. The bank is to provide assurance that the strategic direction and conduct of financial transactions of Non-Interest Financial Institutions (NIFIs) are in compliance with the rules and principles underpinning their operations.

    Also, section 9.1 of the CBN Guidelines for the Regulation and Supervision of Institutions Offering Non-Interest Financial Services in Nigeria provides for the establishment of an advisory body at the CBN on non-interest banking and finance.

    CBN Director, Development Finance, Mudashiru Olaitan, said financial inclusion can help people step out of poverty and address long term growth  challenges.

    The CBN has overtime, emphasised the need for Nigerians to embrace savings culture to bridge the huge gap between the banked and unbanked.

    The demand is in line with the its National Financial Inclusion Strategy (NFIS) meant to reduce the percentage of adults excluded from financial services from 40.1 per cent to 20 per cent by 2020 with specific targets for payments and promotion of savings culture.

    The CBN believes that  having at least 80 per cent of all adult Nigerians have access to affordable financial services as well as the right environment within which to invest and  flourish economically will boost the country’s  development profile.

     

  • ‘Grassroots development is in our best interest’

    ONE major causes of the urban rural migration has been attributed to the growing level of underdevelopment of the rural areas and hinterlands, amongst other issues.

    Unfortunately, not much has been done by most of the state governments in terms of addressing the problems. But one man who thinks all hope is not lost is Oluwatoyin Dada.

    Dada, who is chairmanship aspirant of Ijero Local Government Area of Ekiti State in the forthcoming elections scheduled for December 2017, holds the view that the grassroots holds the key to the development of the community and the state at large.

    Speaking in interview with our reporter, Dada, who unveiled the programme of activities for his community, said he has all it takes to run for the chairmanship of Ijero Local Government Area of Ekiti State.

    “At the risk of sounding immodest, l want to believe l’m most qualified to aspire to the position of the chairmanship of my local government area. I think I have got the experience and exposure to effectively perform that role.”

    Pressed further, he said, his development agenda for the council, “Is one that will help to turnaround things for the better compared to where we’re today, hence my resolve to be a part of the change drivers.

    Of course, we will run an inclusive government where everyone will be involved in the governance of the community.”

    Expatiating, he said, his programme is encapsulated in a six points agenda.

    “I have a six point agenda which covers a whole lot, including jobs, health, agriculture, education, sports and social developments. I’m passionate about creating jobs for the unemployed indigenous youths across the fifteen towns that make up the local government.”

    Specifically, he said, he hopes to set up cottage industry within the local government area, where juice drink would be produced. “I’ll also modernise palm oil processing farms. In the area of health, l hope to equip all the maternity and health centres across the constituency as well as provide free drugs for all the antenatal patients.

    “Thankfully, as we speak, there’s a California-based organisation that has hinted of plans to set up shop in the community, specifically to our aid, in revitalisation of our health sector. We hope to pursue that to its logical conclusion.”

    He also promised “bursary awards for the tertiary institution students of the local government just as we will make provision for the maintenance of adult and vocational education,” and provision of

  • ‘Elected chairmen ‘ll complement Ambode’s achievements at grassroots’

    ‘Elected chairmen ‘ll complement Ambode’s achievements at grassroots’

    All Progressives Congress (APC) chieftain Hon. Adebowale Collins is the Patron of Liberal Minds Grassroots Forum in Lagos State. He spoke with EMMANUEL OLADESU on the recent councillorship and chairmanship primaries and preparations for the local council polls.

    Lagosians are warming up for the local government elections. What are your expectations?                                      

    I believe that it is going to come out well. But, there are some interests and issues the party and its members need to address. People are ready for the local government elections on July 22. But, there are some issues that need clarifications. Today, we still don’t have the final list of candidates. People are brandishing all kinds of names. But, our party has not released the final list of candidates who will be running in few weeks time.

    But, the party said the list will be out after the conclusion of screening by the LASIEC…

    Yes, normally, by now, the list should have been out. And campaigns should have been started and candidates would have been reaching out to voters to vote for them. They would need three or four weeks to do it. Election is a battle. There are some people that are agitating. They believe that they are the ones that should represent their areas. You are right to an extent. But, the time is very short. People need clarification.

    Is the list not partially out, in view of the fact that 18 chairmanship candidates are being returned unopposed?

    Even with that statement, we have conflicting information. I believe that among the 18, may be, some of them may be substituted. There are rumours. That’s why we need clarifications. Even with that in place, nothing is automatic really. We have heard that some will get a second term. Until the list is out, everything is still speculative. Until our party comes out a list I can read and verify, I am still a little bit on the sideline on who will actually come out on the final list.

    Does this scenario not suggestive of post-primary crisis?

    To an extent. There are areas that have issues, not all the local government have issues. Not all of them have peculiar problems. But, there are quite a number of them that have unresolved issues. I will not use the word crisis. It is a little bit heavy. It is a bit of exaggeration. There are areas where the candidates have no problem. There are some areas where some of the candidates are not popular as some might think. We need to address that because at the end of the day, the voice of the people needs to be heard. That’s why I believe that our party should address these concerns.

    What’s your assessment of the entire selection process?

    My personal opinion is that it could have been done more constructively. The setting was definitely not good. The security provided at the venue was not adequate. They should have been a little bit more transparent. When people engage in a democratic process, they need to be heard. The procedure in some areas could have been better than that.

    Why did the aggrieved aspirants not make use of the opportunity provided by the Appeal Panel headed by Otunba Olufemi Pedro?

    Because by doing that, some of them thought they will be giving legitimacy to something that was not properly handled. For example, in Lagos Mainland, some candidates raised issues about the procedure. They said they did not know the delegates used. The information was not freely shared. Some raised the allegation that some people claimed they were the anointed candidate. You hear all these things during primaries. People peddle rumours. They used the names of people as launching pads to intimidate other candidates. Even, they coerce people to drop their ambition. So, when you have two or three names floating around, that this person is the chairman, that person is the chairman, they start peddling the rumour that a particular person has been endorsed from the top. It makes the environment tense. The issue right now is to address those concerns and make sure that the people’s candidate should emerge. If someone is popular and he can win and we can keep that local government, the party should nominate the person. If the primary is transparent, the candidate will carry along the co-contestants and promote team spirit and prepare for the main election. We should harmonise and work together as one party. The grievances and issues need to be addressed in a judicious manner.

    Is the brewing tension not also a function of communication gap between the party leadership and the bulk of aspirants and party followers?

    That’s a good and very interesting question. Some people believe that the process has been tainted. Some people believe that they were not given a fair chance when they showed interest. You have supporters agitating that the so-called anointed candidates are not popular. So, we have to listen to the pulse; the heartbeat of our people. We have to look at it prudently; we have to look at it very well. The timing is ripe for us to address the issues in those few areas that are heating up our system right now. Until a very clear mandate is given to a popular candidate to represent the party, the tension will still be there.

    In particular, what are the grievances been expressed in your own local government?

    In my area, one of the issue is the winner-takes-all mentality. We all belong to one party. We are one big family. A handful of people are the ones are dominating Mainland politics. So, in a situation like that, I think our leaders need to call stakeholders together and forge unity so that we can have an inclusive approach, instead of being sectional. After 17 years of the democratic dispensation, we can never afford to have a system that leave some people behind. People feel that, as a party, we have grown to a stage where we need young people with energy and vigour, fresh mind, and an inclusive party. In the midst of this, we need to address everybody’s issues, questions and interests. There should be no winner-takes-all.

    Unlike before, is it not curious that, despite these grievances, there have been no defections from the APC to other parties?

    The people truly believe in the manifesto of the APC. I am a loyal party member. I believe in the party. I may voice out one or two issues. I believe that is the beauty of democracy. There are some grievances. I believe some of them are valid points. But, when people feel that there is no hope or when people left out, it can happen when people looks at the alternative approach. That’s when defection or inter-party activity can occur. But, we are not close to it, if it is handled properly. I will hate to experience what happened to us in Mushin where Kako Are defeated us because he was a popular and a grassroots man. People are enlightened now. He went to the Accord Party and won. We should address these issues and whoever can deliver should be given the opportunity. We need an inclusive arrangement where there will be harmonisation.

    How can the party avert the 2015 scenario whereby it lost some seats to the opposition?

    As a party, we are mature. Our leaders are leaders of integrity. They are good leaders. The leaders need to listen more to the youths. The youths are a bit more structured now. With the social media, there is information flow. There is generational issue. We should address the issue of people that are left out so that we don’t have that experience again. Lagos State is working. Governor Ambode is doing a fantastic job. The governor’s performance has given people hope. People who truly want to serve believe that they can work with him at the grassroots.

    Would you call for a poll postponement so that the party can address these issues and prepare for the election better?

    Time is very important. People have been waiting. The masses have been waiting to exercise their right to choose leaders to run the affairs of their local governments. People feel that the caretakers have actually overstayed their welcome. They want to have an election. They want to have their own local government chairmen and councilors. I won’t call for an extension of the date. But, if our leaders feel like it is in the best interest of the party and for peace to reign, I will definitely support it. But, if the party responds to the concerns of the aspirants and candidates, we can resolve them amicably.

    What’s is your advice to Lagosians as they prepare for the elections?

    Our party will do well. The APC is the party of the day. We believe in the mandate of change. Anybody that lives in Lagos can see the change. Lagos is working. Lagos is the pacesetter for Nigeria. If we have the right people at the local government, the achievements of Governor Akinwunmi Ambode will be more noticeable at the grassroots. As the patron of the Liberal Minds Grassroots Forum, Lagos is on the right track. Ambode has demonstrated that, truly, government can work. The people looks forward to a peaceful election. They are ready for the election.

  • High bond yields thrill grassroots investors

    High bond yields thrill grassroots investors

    Deposit mobilisation via the Federal Government of Nigeria Savings Bond (FGNSB) has been on for three months. Next offer will open on June 5 and close on June 9. The exercise backs the Central Bank of Nigeria’s (CBN’s) financial inclusion project of getting more Nigerians to embrace financial services. Stakeholders dismiss speculations that the high yields accruable to FGNSB investors will discourage commercial banks’ depositors, especially from the grassroots. Offers’s promoter –  the Debt Management Office (DMO) – sees the FGNSB as an opportunity for grassroots investors to build sustainable wealth, writes COLLINS NWEZE.

    For investors – both local and foreign – return on investment remains an attraction any day. Hence, when the Federal Government of Nigeria (FGN) Savings Bond for this month’s offer attracted 13.189 per cent coupon, it was seen as unbeatable. It has remained so, especially for commercial banks which hardly offer anything above single digit interest on deposits.

    The bonds allow the quarterly remittance of interest income directly into bond holder’s account. The interest paid on the customers’ deposit accounts is monthly and below six per cent per annum.

    Savings bonds in Nigeria, as elsewhere, are debt securities issued by the government to help fund development projects. They are debt instruments offered by sovereigns to mobilise resources from the general public, especially individuals and small savers. It offers guarantees that help to stimulate and deepen the savings culture among households, assists in the diversification of funding sources for the government and establishes benchmarks for other issuers. It also encourages financial inclusion across the social and economic strata.

    •All Progressives Congress (APC) chieftain Asiwaju Bola Ahmed Tinubu (third left), former boxing heavyweight champion Evander Holyfield (middle), one-time Lagos State Finance Commissioner Olawale Edun (left), ACI Entertainment Chief Executive Officer (CEO) Wole Adeniyi (second left), Rumble Manager Funke Michael (right), Holyfield’s lawyer Shevon Harris (third right), CEO Bishop Entertainment Consult, Atlanta Georgia, United States (U.S.) Bishop Adejube (right, back row) and others when the boxing legend visited Asiwaju Tinubu in Bourdillon, Ikoyi, Lagos…yesterday. PHOTO;Taiwo Okanlawon

    Despite the month-to-month subscriptions to the bonds, stakeholders in the financial sector insist that it does not in anyway, threaten banks’ deposit base. They believe that both the bonds and deposit drives are needed to ensure that more people within the population have access to financial services.

    The Group Chief Finance Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh, said the FGN Savings Bond does not pose any threat for commercial banks’ deposit base.

    He said the N2.067 billion raised in the maiden offer does not in any way threaten the deposit drive of commercial banks.

    “I do not think the FGN Savings Bond will threaten commercial banks’ drive for deposits. The sky is wide enough for all birds to fly,” he said at a briefing on bank’s results in Lagos.

    The Chief Executive Officer, Nextnomics Advisory, Dr. Temitope Oshikoya, said the government needs to borrow through local bond issuance to fund the budget. He said the Debt Management Office (DMO) will be involved in the process, adding that the practice where banks end up buying up the bonds instead of lending their deposits to customers is not the best for the economy.

    “It will be good to have more people invest in the local bond market. Banks are expected to lend to the private sector, instead of investing so much in the local bonds”, he said.

    Oshikoya explained that FGN Bonds serve as risk-free investment with tax-free income. The bonds provide relatively high and stable returns and the principal element (collected at maturity) can be used as collateral for securing credit facilities from banks.

    Besides, bondholders that want cash can trade the bonds on the floor of the Nigeria Stock Exchange (NSE) for immediate cash before maturity, even as it qualifies as liquid assets for banks from two years to maturity.

    He said that if the debts are well spent, it helps to boost liquidity in the economy and investment in key sectors like agriculture and mining, among others.

    A financial expert, Charles Odinaka, said the FGN Savings Bond complements the Central Bank of Nigeria (CBN’s) financial inclusion project.

    According to him, the CBN’s financial inclusion vision was aimed at enabling the Nigerian population to know, understand and develop the ability to evaluate financial products/services so as to lower the number of financially-excluded persons within the population, from 46.3 per cent to 20 per cent by the year 2020.

    The financial inclusion also broadens the knowledge service providers on the needs of their customers, products and associated risks. The financial inclusion in Nigeria and would continue to work towards this aspiration by extending FGN Savings Bonds to under-banked businesses, communities and individuals across the country.

    Odinaka said: “Specifically, the FGN Savings Bonds give investors ease of access to investment opportunities. The investors in the bonds will ultimately become drivers of the economy and eventually contribute their quota to the economic growth of the nation. I foresee a situation where all members, youths, students, traders, name it, operating in the economic space or playing field, do not have difficulty in investing their money because of the benefits that come with the bonds.”

    •Lagos State Governor Akinwunmi Ambode (right) and former Heavyweight Boxing Champion Evander Holyfield when the boxing legend visited the governor at the Lagos House, Alausa, Ikeja …yesterday.

    In his contribution, the Managing Director, CRC Credit Bureau Limited, Tunde Popoola said the government is in dire need of funds to stimulate and get the economy out of recession, stating that domestic debts do not react to exchange rates, especially when the loans are repaid in the local currency.

    Popoola said: “The bond is capable of boosting savings culture among Nigerians. And it has been brought down to between N5, 000 and N50 million which is affordable to many Nigerians.

    “The funds raised can be deployed into infrastructure funding. We are going to be interested in the next phase of the offer to determine its modalities of implementation. We need to see detailed guidelines for its implementation.”

    For the government, the savings bond will shore up access to funds available for investment in the economy, thereby facilitating gross capital formation and economic growth. It equally enables the individual to enjoy those benefits which accrue to big investors in the capital market.

    The DMO recently took the FGN Savings Bond campaign to Ibadan, Kano and Onitsha, among other cities. The one-day advocacy and sensitisation workshop in Ibadan was attended by trade union leaders, associations in the Southwest, during which the benefits of investing in the bonds were emphasized.

    The DMO urged willing participants to subscribe through stockbroking firms trading with the NSE, its accredited and licensed distribution agents.

    DMO’s Director-General Abraham Nwankwo said the bond would empower every Nigerian economically, describing it as a window principally designed for retail investors with a view to providing opportunity for investors to contribute to national development because it improves the savings culture in the country.

    Nwankwo, who noted that the DMO has a board chaired by the Vice President, explained that Nigerians can invest a minimum of N5, 000 and maximum of N50 million in FGNSB.

    He explained that any above the N50 million peg should be invested in the old bond, known as Federal Government of Nigeria Bond (FGNB).

    Nwankwo said: “We are here in Ibadan to enlighten the general public about the Federal Government of Nigeria Savings Bond. The government of President Muhammadu Buhari has an economic philosophy of making sure that the economic process is inclusive.

    “As Nigeria recovers from economic recession and grows, nobody should be left behind. Every Nigerian, no matter the income level, will have an opportunity to participate in the process of re-activating the economy, and also benefit from the progress that is being made.

    “It is in that regard that the Debt Management Office has been mandated by the Vice President and the Acting President, Prof Yemi Osinbajo, to ensure that the DMO also works along this mandate.

    “The Federal Government has been issuing bonds since 2002 and the purpose is to ensure that government raises additional money to augment revenue to be able to fund various capital projects in the budget.

    “The budget is always approved by the National Assembly, which means the National Assembly on behalf of the people of Nigeria takes a decision and approves that money should be borrowed.”

    He explained that funds are also borrowed from external sources. “However, based on new philosophy of government, that whatever we are doing should be inclusive, so that when we achieve growth, it will be growth with development because everybody is involved, we have decided to design a new instrument – FGN Savings Bond, which can be accessible to the low income group, such as teachers, artisans, drivers, tomato sellers, market women, plumbers, trade unions and to all types of associations.

    “On a personal level, you will benefit because you will be earning assured and competitive interest rate every quarter. The FGN Savings Bond is offered every month.  The DMO has been given the mandate.

    “The Minister of Finance, Mrs. Kemi Adeosun, has given us all the support to make sure that we are able to reach Nigerians everywhere. We have been to Kano and Onitsha. We are also in Ibadan. We will continue with other cities. We will go to the local governments and villages.”

    In Kano, Nwankwo also said the bond would enable low income earners to contribute their quota to the development of the nation’s economy.

    He said the bond was part of the federal government’s initiatives of inclusiveness in governance, noting that with the new bond, both rich and low income earners would contribute to the nation’s economy.

    “With only N5, 000, one can benefit from the new bond. This is an opportunity for all and sundry to participate. It is designed to touch lives at the grassroots”, he said.

    In his remarks, the Director, Portfolio Management Department of the DMO, Dr Oladele Afolabi, said the FGN Savings Bond was issued monthly in tenors of two and three years.

    In Onitsha, Nwankwo, said the Federal Government of Nigeria Savings Bond (FGNSB) is designed purposefully to favour the poor and give them a stake in government.

    The DMO director-general was addressing leaders of market unions and leaders of middle income earner organisations in an advocacy/sensitisation workshop on the FGN Savings Bond in Onitsha.

    He said that over the years, the bonds issued by the government were elitist and sold as wholesale bonds to privileged individuals, corporate companies and organisation.

    He noted: “All these super rich individuals bought it as wholesale bond, but the difference we have in the FGNSB is that we are making these bond available to the ordinary Nigerians,” he said.

    Currencies Analyst, Ecobank Nigeria, Olakunle Ezun, said there is need for Nigerians to invest in local bonds.

    “It is not advisable for government to print money to meet developmental needs. And it is advisable that the citizens invest in FGN bonds, which are safe, profitable and deepens the local bond market,” he said.

    To him, although the funds from the domestic bond market are more expensive than the international bond market, investing in the local bond market is in the best interest of the economy.

    The government bonds, he added, help the government funds its deficits in a non-inflationary manner while providing benchmark yield-curve for pricing other securities/bonds.

    It also engenders rational management of government’s fiscal and monetary operations.

    The DMO explained that a bond is a loan and the investor or holder of the bond is the lender. It said: “When you purchase a bond, you are lending money to a government, local government council, state government, federal agency or a corporation, known as the issuer. The government uses it to fund budget deficit, for instance, or to build roads, electric power stations, finance factories, among others.

    “When you purchase a bond, in return the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it ‘matures’.”

    The debt office said when investors buy government bonds they are lending funds to the federal government for a specified period of time.

    It said that government bond is considered as the safest of all the investments because it is backed by the ‘full faith and credit’ of the government.

    The Managing Director of Afrinvest West Africa Limited, Ike Chioke, said the outlook for bonds market remains bullish based on the firm’s medium-term outlook.

    Chioke said in an emailed statement: “Our medium-term outlook remains bullish as we expect yields to moderate on falling inflation expectation and improving current account and fiscal balance. Relatedly, the NSE listed the Series 1 of the FGN Savings Bond, maturing March 2019. The Bond was priced at 13.01 per cent at issuance and has an outstanding value of N2.067 billion. The DMO is expected to release the issuance rate this week.”

    Chioke explained that in the Eurobond market, Nigeria successfully raised $500 million mid last week to conclude its $1.5 billion Global Medium Term Note due February 2032.

    He said: “The bond was issued at a yield of 7.5 per cent, 38 basis points lower than the issuance yield of the $1 billion tranche issued in February.

    “The two instruments, which have the same maturity date, have subsequently been consolidated into a single $1.5 billion bond with the market yield trending further downwards to 7.4 per cent as of writing.” The DMO chief believes that as Nigeria reforms, restructures and strategises towards pulling back the economy unto a path of inclusive and sustainable growth, it is useful to pay detailed attention to the sectors and subsectors.

    “This is because while summary pictures succeed in showing the prevailing conditions, the secrets to the various pieces of the solution lie in the details. That is, appropriate disaggregation is good for effective diagnostics, analytics and strategics, as well as for understanding investor calculus.”

    In respect of Nigeria’s public debt, he said it was important conceptually and practically, to recognise that the domestic and external components are conditioned and governed by dynamics that are considerably different. “Indeed, it is pertinent to note that in spite of the drastic drop in the country’s foreign exchange earnings, following the oil-price shock since mid-2014, the external debt liability hardly constitutes a source of vulnerability,” he said.

    Nwankwo said that Nigeria’s 10-year Eurobond (2013 to 2023), which traded at an average yield of about 6.945 per cent for 2015 and at 8.680 per cent for January 2016, has been trading at a daily yield of between 6.147 per cent and 6.571 per cent so far throughout the month of September 2016.

    So far, investment in bonds remains attractive to grassroots investors. Not even the banks can reverse the rising trends.

  • Repositioning Nigeria’s grassroots politics

    SIR: Many may have wondered why politics at the grassroots level in Nigeria is seemingly dead; only coming alive during election time. The answer is simple- we do not have a culture of grassroots political participation in the country. A quick flashback to pre-colonial times and the clamour for independence attests to this. Most of the recorded agitations by the nationalists played out on the national stage. Perhaps this was the fault of the so-called “nationalists”, a set of people bent on scoring their own political points while engendering their political ambitions/interests instead of carrying the people along.

    Now fast-forward to post-independence Nigeria. The ill effects of the absence of effective grassroots political foundation are glaring. We have a large percentage of the population who have no idea of the monumental political power they could wield. This has made it possible for our corrupt politicians to do their worst without the fear of having to answer to the very people that give them mandate. It has to stop.

    No democracy anywhere in the world can be “useful” if the people at the local levels do not get to participate in the political process as they should. I do not refer to the type that obtains here during election times whereby unscrupulous politicians successfully mobilize the electorates and buy their votes in exchange for foodstuff. I am [indeed] talking about a situation whereby the people at the grassroots levels realize the power they have in the national polity and actually wield said power both during and after election times.

    It is therefore time we all take up the task/responsibility of mobilizing Nigerians at the grassroots for democratic effectiveness. I put this responsibility on every Nigerian youth. Who could best be vested with the responsibility of repairing the broken foundations of our national polity other than the very youths who will inherit it?

    It is time we stop bemoaning the national exclusion we currently face (no thanks to gerontocracy) and actually take action towards building the future Nigeria and the very conducive political atmosphere we all wish to have. There is a huge opportunity available for us all to make impact and we should take it. Remember that politics is not all about the scramble to occupy the highest elective posts in the land.

    The question then is about how the youths could possibly influence politics at the local levels. This is an imperative question considering how the old politicians tend to strongly dominate these local places too. But then inasmuch as this is somewhat the case, it is important to also bear in mind that the kind of influence they have at the grassroots level is different from the impact and eventual influence the youths could have if they take collection action today towards changing the status quo for the better. Take for instance- the old politicians only remember the grassroots when election is three months away. They come to campaign for votes, albeit through very corrupt means. Their purpose is therefore never to expose the people to the immense political influence they could have in the polity of our nation. Instead, their purpose is to use the people as means to their own ends. This is the major difference between their agenda and the agenda I am setting for us all. Using our youthful vibrancy and all the resources readily available to us, we can permeate every nook and cranny of our localities and teach the people basic political knowledge while empowering them all the same. This does not have to be a resource-consuming agenda. It is as simple as interacting with the people within your immediate vicinity. More so, for those of us who are social media, take out time to engage your audience in political matters. It is high time the Nigerian youth desist from being politically docile. We too have a stake in Nigerian politics and must start contributing towards making it better than it is.

     

    • Emmanuel Abara Benson,

    eabarabenson@gmail.com

  • Developer takes home ownership to the grassroots

    Developer takes home ownership to the grassroots

    Amid  growing concern of stakeholders on the lingering housing in the country, some industry players have seized the bull by the horns to ensure that Nigerians do not become homeless. And while most developers are concentrating on highbrow areas for estate development, a young and upwardly mobile developer is gradually taking homes to the majority of Nigerians who truly need a home.

    The firm of realtors and investment firm, Pertinence Nigeria Limited, promoters of the ABC and VIP Gardens Estate, said it is gradually achieving its objectives by building houses for Nigerians through the purchase of large expanses of land at places people had thought could not be developed. In this regard, the firm said it is  contributing its quota by reversing the housing shortage in the land.

    The Founders and Executive directors of the firm, Sunday Olorunseyi and Wisdom Ezekiel, in a chat with The Nation, explained that Nigerians have come to realise that  owning a house is a personal responsibility, such that waiting for government to help them in this regard would mean waiting till eternity given its huge responsibilities and cash constraints.

    According to the duo, Pertinence is assisting Nigerians by reducing the costs associated with home ownership, some of which are things that the firm has taken off a prospective house owner. For instance, Ezekiel explained that owing to financial constraint, his firm has been able to acquire large expanse of land which are then divided into plots and sold at reduced prices.

    Besides, he explained that Nigerians have decided to solve their own housing problems by themselves; hence, they get involved in monthly savings to acquire land- an option his firm readily provides a platform for.

    “This is an indication that the market is yet to attain its potential, but in a place like Lagos State, for instance, the deficit is gradually closing up, because people now realise that you can start building a house with N50,000, and that is now being entrenched in other parts of the country,” Olorunseyi said.

    The executive directors of the Lagos-based firm, who spoke at the super promo launch organised by their company last weekend in Egbeda area of Lagos State, said it is in realisation of this desire and to ease life for Nigerians that the firm put together the promo so as to put smiles on the faces of some prospective home owners. In the promo, six plots of lands were given out in a raffle draw to lucky winners.

    The super promo launch, they explained, is their own little corporate social responsibility to the society.

    “This is our own way of appreciating our teeming customers for believing in us since we started business about five years ago. We are giving out six plots of land in any of our estates and all expense-paid return ticket to Dubai to winners today. We are doing this to help people to become home owners. We have done this for about five times now”, the co-founders stated.