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Tag: interest

  • ‘I dumped PDP in the interest of my people’

    ‘I dumped PDP in the interest of my people’

    Senator Yele Omogunwa represents Ondo South Senatorial District at the National Assembly. Few days to the November 26 governorship election in Ondo State, he dumped the Peoples Democratic Party (PDP) for the All Progressives Congress (APC). He spoke with reporters in Akure, the state capital, on his relationship with Governor Olusegun Mimiko and how the state can surmount its economic challanges. LEKE AKEREDOLU was there. 

    Why did you kick against the emergence of Mr. Eyitayo Jegede as the candidate of the PDP?

    I take my time before I take decisions. The idea of picking the party’s candidate from Akure was wrong. Akure and Ondo are in the same central senatorial district, where the outgoing Governor Olusegun Mimiko hails from. That is tenure elongation or third term for Mimiko. Akure people are nice, but the timing was wrong. More so, the number of votes they were able to muster is because of the name of Eyitayo Jegede (SAN). If it is the name of these people in authority, they will not get 50,000 votes. Jegede is a complete gentleman. He came to my house and I told him that he was drafted into the race forcefully. He was not one of us. Before aspiring to govern the state, he should have asked himself how many governors he has voted for in this state? We started with Bamidele Olumilua; we were holding the meetings together when Ondo and Ekiti was brken into two states. So, I understand the terrain.  I voted for the late Adekunle Ajasin, not as an active politician then. I have worked for a governorship aspirant, Prof. D.O Oke who did not make it. Mention anywhere in Ondo State, I will tell you I have two or more friends there. So, you must be on ground. To become a governor; it’s not about an appointment.

    Did you inform Mimiko about it?

    Look, Mimiko and I met five times on this matter and I told him the idea will not fly. He knew I don’t come to their meetings. The only meeting I attended was at Ore in Odigbo Local Government. After he informed me that he had settled for Jegede as the party’s flagbearer, I said let me go and tell my people. I was not fighting for the South, but I was saying that for equity sake, it should either be South or the North. I thank God it has gone to the North. We have seasoned politicians in all the senatorial districts and I told him it has to go round. I told him, zoning itself is not constitutional, but an arrangement of convenience.

    Despite your explanation, the governor insisted on Jegede, why?

    The idea was that since the candidate is coming from Central, particularly Akure, which is the state capital the party will have a chunk of the votes from the Central and whatever votes it gets from the other two districts will give the party victory. I told Mr. Governor that he was wrong. I told him that Akure people do not vote. I told him to remember that Akure is a cosmopolitan city and that more than half of its residents are from the other 17 local governments. So, if an Akoko man emerges as a candidate of another party, do you want to tell me that the Akokos who reside in Akure will not come out on the election day and vote for their kinsman?

    It was rumoured that you left the PDP because of the way Mimiko treated you during your days in Labour Party…

    At this age of my life, what I think I am left with is to face my God, pray for my children, my grandchildren and live the rest of my life happily without any vendetta. I am not the kind of person that would want to avenge. He did that one to justify his position at that time. Though, I angrily left the party and the government, but at the end of the day, he came to me and we settled. So, that is politics for you; if it didn’t go down well for you today, definitely, it will be your turn tomorrow. I remained steadfast praying to God. In fact, one of my wives said I should not quit politics, because I have put in more than 25 years and should not allow somebody to frustrate me to quit. I consider Mimiko a friend. I have told him on several occasions that he is not a true friend. A political friend is not a friend. We didn’t grow up in the same place, we didn’t carry girls together. We have not been in the same club. The only thing we did together is politics. We both graduated from the University of Ife (now Obafemi Awolowo University), but not at the same time. If you know how I became senator, you will marvel and praise God.

    Why did you dump the PDP?

    You will recall that from the LP, we moved into the PDP in the wake of last year’s presidential and National Assembly elections. The main attraction then was to reconnect with the Federal Government along party lines, so as to attract more democracy dividends to the good people of Ondo State. For me, I found it a worthy adventure, on the grounds that virtually all the strategic projects that could transform the lives of the people of Ondo South senatorial district can only be successfully executed with the full cooperation and inputs of the Federal Government. You can then imagine how disappointed I was when the PDP was voted out of power. Despite the sad and frustrating development, as it were, some of us who found ourselves in that situation were ready to cope with it; at least in the interest of the party. But suddenly crisis erupted and the party became fractionalised. At this point, the success of the party at the governorship election was threatened. At this juncture, I considered the implication of being in the opposition in my home state and at the federal level.

    Are you saying that as someone in opposition there is no way you can bring dividends of democracy to your constituency?

    In terms of development, when you are in National Assembly you can talk as much as possible and whatever you say may not get the desired result, except you hook up with the right party. When we are talking about opposition, we are talking about the minority. Under normal circumstances, the opposition does not see anything good in whatever the majority does. But it is more than that, you can leverage on the good will of majority to get whatever you can get, depending on your relationship and acceptability.

    There was uproar on the day you officially defected on the floor of the Senate. Can you explain what really occurred?

    The action was spontaneous. Many of them did not know that I have decamped until that day. So, it shocked them that they are losing another person. So, when it was officially announced at the Red Chamber, they never knew I have written the Senate President and when the President read it, they were not so happy. You know in the chamber, the majority and the minority sit separately and when it was announced, I started moving from the minority seat to the majority and they felt sad and they did not allow the Senate President to end the letter; they started shouting. The senators in the majority were celebrating my defection and the PDP senators were not happy.

    Now that you are in the ruling party, what should be the expectation of your people?

    I want to be in the majority, so I can attend caucus meetings. You will know some minister; you don’t have to go through the President before you talk to the ministers representing Nigeria and then you can explain your point to them. I have seen one or two since I defected and we have been discussing on development. When it may happen, I will not know, but we will continue to discuss. You know governance; it might not be a job. My desire is that development will come and definitely it will, depending on the economic muscle of the Federal Government. We are talking of a sea port in Ondo southern senatorial district and if this is put in place over there, it will impact positively on the economy, especially in the Southwest. Our bitumen is yet to be tapped. You know I am from Irele and in my father’s village, there is bitumen. You will remember former President Olusegun Obasanjo was at the place to commission the takeoff of the project, but it never saw the light of day. We can continue to push this in our own way, without shouting or making noise.

    How do you think the incoming government can survive with the huge debt and non-payment of workers’ salaries that it may likely inherit?

    When we were debating the budget at the National Assembly last year, I raised two issues; that we must be courageous and optimistic that the economy will improve and that Nigeria should go for heavy loan. No government can survive without loan. In Ondo State, no matter the huge debt that will be inherited, Akeredolu will still perform. Everybody is aware that this government owes six to seven months salaries and I also understand the debt is close to N200 billion, but if I am the governor, I know he will draw a line and plan how to pay; even if it requires borrowing. No matter the huge amount of debt, I believe the governor-elect will still perform.

  • Ikere Gorge Dam and renewed interest in agriculture

    Ikere Gorge Dam and renewed interest in agriculture

    A few years ago, I drew the attention of readers to the unfortunate abandonment of Ikere Gorge Dam, a project that was conceived with genuine interest in the development of the rural communities of Oyo State and beyond. My intervention then was out of concern for the regrettable daily loss of the immense economic potentials that the project has, not only for the area, but also for the entire nation in multiple ways. I was also concerned about the scientifically-proven risk of deadly flooding that the abandonment of the project poses for the entire area from Iseyin to Igbeti.

    I am revisiting the issue now for two reasons. First, the Buhari administration has rightly pivoted its economic revival policy towards prioritising agriculture. I have no doubt about the reasonableness of the policy direction and the genuineness of the motive of its architects. But I am concerned that in the present budget, the dam has a paltry allocation of N11million for irrigation project, while N9million is allocated for operation and turn around maintenance. This dam is not even operational!

    No doubt many areas and zones of this land of ours are capable of making enormous contributions to this new orientation of the federal government, each with special capabilities and different resource bases. But no one can conscientiously deny that Okeogun is one proven area of agricultural capability, having been branded the food basket of the old Western Region in the First and Second Republics.

    But times changed. Agriculture was abandoned as a matter of development priority for government. And young men migrated from rural to urban centres with no sellable skills. The result has been staring us in the face ever since with the massive unemployment numbers and attendant high crime rate. Even in the backwoods of Okeogun with uncompromising ethical codes, it is now disheartening to hear of cults in schools and area boys around towns and villages.

    The second reason is a rehash of my concern for the risk of the danger that the abandonment of the project poses to the area. This is especially more urgent in the light of the new scientific prediction of an earthquake in the area in future.

    Surely a completed dam project, just by that very fact, does not guarantee immunity from the devastation of flooding during an earthquake. But while a completed dam would at least have inbuilt security devices, including fortification of the dam walls, an abandoned dam that is already corrupted by nature can hardly withstand the fury of an earthquake. The danger such a prospect poses to the lives of the people is better imagined than experienced. Therefore, if our federal government cannot improve the lives of Okeogun people, it should at least leave them undisturbed in their destined condition.

    These thoughts were running through my mind when I was presented with the gift of a wonderful pamphlet that was published by Okeogun Development Council early this year. Titled: Ikere Gorge Dam: A Goldmine Waiting to be Explored, the pamphlet was edited by Mr. Jare Ajayi, the General Secretary of the council, who was kind enough to give me a copy. The pamphlet is a wealth of information waiting to be digested by policy makers if they are truly interested in the agricultural and rural development agenda of President Buhari and his administration.

    The pamphlet conveys a message of economic urgency regarding the potentials of Ikere Gorge Dam for irrigation farming, generation of electricity and tourism. I was elated to learn that the “dam was planned to generate 3750 MW of hydroelectricity for dam and rural electrification programme and to irrigate up to 1200 hectares of farmland” and that “the Gorge also has a big potential for tourism.”  By itself, each of these three economic benefits that the dam is designed to produce (irrigation farming, electricity generation and tourism) is capable of reversing the undesirable and economically-unproductive rural-urban migration that the area has witnessed in the last 30 years.

    Incidentally, the original impetus for the dam more than 40 years ago, was the drought of 1973/74, which jolted the military regime. And upon taking over the government in 1975, the Murtala/Obasanjo administration took steps to prepare the nation for any such natural emergencies in  future. Its policy response was the establishment of 12 River Basin Development Authorities scattered throughout the country in 1976/77. Ogun-Osun River Basin Development Authority, one of the 12, had responsibility for the development of the Ikere Gorge Dam and the Federal Ministry of Water Resources and Rural Development was the supervising ministry. This project has been on since 1977!

    The pamphlet also disclosed, what might be expected from our knowledge of most development initiatives from the 50s and 60s, that the Obafemi Awolowo administration in Western Region discovered the dam in the 50s and it was eventually taken over by the federal government. “During the Awolowo period, there was a big farm… Around 1966. there were about 10,000 herds of cattle… There was also a large cashew plantation.” These were the words of an Iseyin elder, Mr. Emmanuel Oke, in a 2013 interview reproduced in the book.

    Mr. Oke went on to compare Ikere Gorge Dam with Akosombo Dam in Ghana. Both are natural dams. But while “the water level at Ikere Gorge Dam is 38 metres deep, Akosombo Dam is 36 metres.” Greater depth means greater capacity. And “if Akosombo Dam could produce 1,200 megawatts of electricity, Ikere Gorge Dam could do something similar or even better.” One might also add that if Ikere Gorge Dam had 10,000 herds of cattle in a ranch in 1966, as Mr. Oke confirmed, we have a home-grown answer to free range cattle rearing with its unsavoury consequences. And just as Akosombo Dam has turned into a tourist attraction earning enviable foreign exchange for Ghana’s economy, so can Ikere Gorge Dam do for Nigeria’s.

    The current state of the dam is pathetic, but it is not an insurmountable task. The engineering design of the first phase covering 3000ha out of 12000ha was completed. Contract for the sprinkler irrigation system had been awarded since 1990 and by December 1997, it was 72% completed. Much has not been done since then. There is a pilot irrigation with only 20 hectares of land available, which is grossly inadequate. But as Mr. Oke observed, it is a starting point crying for further expansion.

    As the pamphlet reveals, the design of the dam was well thought-out. With “a gross reservoir capacity of 565 cubic metres…it was designed to…”supply 233 million cubic metres of irrigation water to the 3,000ha in phase 1; supply raw water to Iseyin, Okeho, Iganna and environs” and 92 million cubic metres “is to be released  and picked up for treatment and distribution by the Water Corporation of Oyo State.” It was also designed to “release 80 million cubic metres of raw water into the river channel to be taken up at the Adiyan intake of the Lagos State Water Corporation.” And it was to generate “six megawatts of electricity for dam operation and rural electrification.” Beside crop farming, the dam was designed to promote fish farming and cattle ranch.

    There is talk about political will. It is hard for me to understand why political will should be lacking in this case in which taking decisive action to execute the project can only elevate the political standing of a leader. If the initiation of the project in 1977 was triggered by the experience of drought, it cannot be denied we have had a recurrence of the 1973 drought off and on in the last 43 years.

    Presumably, government interest in the project waned because the country enjoyed the influx of oil revenue, which we saw as a substitute for revenue from agriculture. Experience has now taught us that oil is not a reliable source of national revenue, and we have rightly decided to retrace our faltering steps to our source. Serious leadership that takes this prospect of agricultural revolution seriously would commit resources to reviving Ikere Gorge Dam for a prosperous future.

  • AMCON, debt recovery and national interest

    Debt recovery is as daunting atask as anything. Ask anyone with banking experience, he/she will tell you how staff in debt recovery departments are loathed by bank debtors. This is what we are witnessing today: the loathing of Asset Management Corporation of Nigeria (AMCON) by some recalcitrant debtors in the wake of its heightened activities in debt recovery.

    It is tempting in Nigeria to side with a debtor narrating his ordeal at the hands of debt collectors because of the picture such encounter evokes in our minds due to the experience we all share of the bad reputation rent collectors acquired in our communities due to the manner they employed to recover their debt including subjective use of law enforcement agents. It is even more tempting to believe when such narratives are told in our news media with a measure of sophistry. But reading between the lines will show a strenuous effort to stand truth on its head. But the reality isover the years, there has been developed a body of laws to ensure fair dealings in debt collection in Nigeria and globally. So, that portrayal of the debt collector as reprehensible villain out to wreck lives of a struggling debtor— either as an individual or a business concern—belongs to the past or in the warped imagination of the portrayer.

    Therefore, before a statutory body in the league of Asset Management Corporation of Nigeria (AMCON), established and operating with the purview of law and under a regime committed to laid-down rules, is seen in open dispute with a debtor, all amicable options must have been exhausted. This aside, if truth must be told, no company or individual is forced to borrow money in the first place. Ultimately, if companies owe a debt, it’s because they chose to borrow money. Their lenders made that loan, or offered the credit line, contingent upon a documented pledge to pay it back. This means creditors do have a right to their money, and a debt collector is simply trying to reclaim what is legally and ethically owed by the debtor.

    I once argued that the world economy is supported by debt. This means that we are operating a debt-dependent economy. In essence, therefore, debt in itself is not always a bad thing. The problem of debt arises when there is default. So the question is how do we avoid defaults, and if they eventually happen, how do we manage the crisis that follows? There is no one-size-fits-all answer to these questions. Every nation studies its economic peculiarities and adopts the best approach that will mitigate the potential for a catastrophe.

    We all can recall that Nigeria has had its own fair share of the impact of the 2008 global financial meltdown on its banking sector. And we adopted some innovative measures to prevent systemic collapse of our banking system. Three prominent ones stand out – bailout, bridge banking and, perhaps the most significant of all, the establishment of Assets Management Corporation of Nigeria (AMCON) in 2010.

    Lest we forget, AMCONwas created to be a key stabilizing and re-vitalizing tool to revive the financial system. It went ahead to efficiently resolve the non-performing loans (NPL) assets of the banks in the Nigerian economy. Its objective include: assist eligible financial institutions to efficiently dispose of eligible bank assets; efficiently manage and dispose of eligible bank assets acquired by it; and obtain the best achievable financial returns on eligible bank assets or other assets acquired by it.

    So far AMCON has acquired about 13,774 Non-Performing Loans (NPLs) worth N3.6 trillion from 22 commercial banks in Nigeria and provided financial accommodation of N2.2billion, protected N4.7trillion of depositors’ funds and interbank takings as well as saved approximately 14,000 jobs. No one can deny the fact that, through AMCON’s intervention, the Federal Government successfully managed our debt crisies and saved our banking system from imminent systemic collapse. But this achievement will not be complete until and unless it recovers those bad debts, which it uses taxpayers’ money to purchase.

    Lest we also forget, the debtors AMCON is dealing with now have passed through all the three stages of a normal debt recovery process.  They have failed to settle their debts with their initial creditor’s internal collectors (bank loan recovery teams) referred to as first-party agency, which is the first stage in the process. The second stage is when a third party is introduced to play the role of debt collector. The third stage is for the original creditor to write off the debt and sell it, which is where AMCON came in. AMCON has acquired the Non-Performing Loans of the banks using taxpayers’ money; so it is in the national interest that it recovers these loans from the debtors and to do so in order to turn a profit on its purchase.To do otherwise is to short-change toiling Nigerian taxpayers.

    To help it in this recovery task, AMCON has recently inducted successful firms that qualified as its Asset Management Partners (AMPs). The AMPs are consortiums with specialist skills required to ensure recovery and debt resolution from banking, legal, valuation and accounting backgrounds. The move is AMCON’s strategy to resolve over 6,000 accounts with loan balances of N100million and below.

    I believe these AMPs are familiar with all the provisions of the Nigerian laws and with global best practices that advocate for fair treatment of debtors. Perhaps they are aware or even belong to professional associations such as ACA International, the world’s largest non-profit trade group representing collection agencies, creditors, debt buyers, collection attorneys and other industry service providers.

    The ACA requires its members to abide by all laws and regulations, as well as its own codes of ethics and operations. For example, the ACA requires its members to “treat consumers with consideration and respect” and “communicate with consumers with honesty and integrity.” It also prohibits collectors from engaging in “dishonorable, unethical or unprofessional conduct likely to deceive, defraud, or harm a consumer.”

    Indeed, debtors are in safe hands with the current Managing Director/CEO of AMCON Ahmed Lawan Kuru. His vast experience as a risk management expert is widely acknowledged. He knew his onions well, having played at the top echelon of the defunct Bank PHB as executive director overseeing critical areas like Risk Management, Compliance, Commercial Banking, Northern Operations, Public Sector, Multilateral Agencies and the West Coast, East and Central Africa expansion programme of the bank. Before assuming his current position of MD/CEO at AMCON, Ahmed was the MD/CEO of Enterprise Bank Limited. He was also Executive Vice Chairman, Emeritus Capital Limited, a financial service firm with speciality in international business development focusing in sub-Saharan Africa.

    Surely, he is the type of chief executive who knows that loans are the engine of progress of modern economy; so he will never see debtors as enemies as insinuated in some quarters. On the contrary, he is committed to supporting businesses with a view to enhancing their productivity. And, more than that, he wants tohelp them transform their NPLs to RPLs (Re-performing loans). Doing this, Ahmed believes, will provide liquidity to the banks, which will help them meet their own obligations as well. So he knows how to balance his act between giving a breather to debtors to meet their obligations and the need for AMCON to realise its own mandate.

    So what we are seeing today in heightened AMCON activities is nothing short of adoption of an aggressive recovery strategy that has led to increased repayment from hitherto recalcitrant obligors. As said earlier, AMCON is simply trying to reclaim what is legally and ethically owed by the debtor. Period. There is no room for any sentiments here. It is business, pure and simple.

     

    • Hassan is a business and financial analyst.
  • MPC’s interest rate hike vs N6.06tr budget

    MPC’s interest rate hike vs N6.06tr budget

    Central Bank of Nigeria (CBN)-led Monetary Policy Committee’s (MPC’s) decision to raise interest rate from 11  to 12 per cent could limit the impact of the N6.06 trillion 2016 budget on the economy. The hike would raise the cost of private sector borrowing from banks at a time the N6.06 trillion 2016 budget is expected to trigger robust business activities in the economy, writes COLLINS NWEZE

    Last week’s passage of the 2016 budget was swift, but sudden. The previous haggles between the executive and the National Assembly over inconsistencies in the budget figures fizzled out and the budget was passed seamlessly. It happened the same week the Central Bank of Nigeria (CBN)-led Monetary Policy Committee (MPC) raised benchmark interest rate from 11 to 12 per cent.

    The committee said it appraised the international and domestic economic and financial environments in the first two months of 2016 as well as the outlook for the rest of the year before arriving at that decision.

    An economist, Henry Boyo, said the passage of the budget and hike in interest rate almost simultaneously could educe the benefits meant to be derived from the budget passage.

    He said the MPC is expected to be managing the liquidity in the system, including ensuring that inflation is put under check.

    Boyo says he does not expect much difference in the implementation of the budget from the previous ones and wondered if the allegation of ‘budget padding’ has been resolved. “I knew that the Ministries, Departments and Agencies (MDAs) were sent to reconcile the budget but not much information was released afterwards,” he said.

    Former Executive Director, Keystone Bank Limited, Richard Obire said raising the interest rate means the price of money will be higher. He urged government to spend locally, to ensure that major sectors of the economy benefit from the budget implementation.

    He applauded the government’s priorities of diversifying the economy away from oil, developing agriculture, exploiting the solid minerals and creating millions of jobs for the youths. But he added that achieving these priorities would need ready-capital and substantial local and foreign investments.

    He said the government is expected to generate enough liquidity to fund it and also see that a large part of it is used in bridging the infrastructure gap in the country.  Most roads, railways and power facilities are either in disrepair, half-built or with a capacity that is far below the needs.

    Obire insisted the Finance Ministry function has to do with being able to raise revenues to match the spending needs of government. For him, the finance ministry job, focuses on being able to understand what the government wants to do and translating it to financial numbers.

    The former bank chief said the Federal Government is working on achieving a reflationary budget, one that puts more money into infrastructure development. But he believes it will be challenging for government because it will want to spend in the context of revenue that has dropped because of low oil prices.

    He said government can drive revenue streams through effective tax regime, and increased earnings from the Customs Service. He said government has to be prudent in its spending, ensuring that  every naira  spent, comes with maximum value.

    Obire called for a high level of co-ordination between the Finance Ministry and the CBN. “There should be good handshake between both parties. This will enable them to tackle inflation and improve the value of the naira,” he said.

    Muda Yusuf, an economist and private sector advocate said given the size of the budget and the reflationary character, I believe it will have a stimulating effect on the economy. “This is what the economy needs at this time, against the backdrop of the economic slowdown.  Gross Domestic Product growth rate has dropped to 2.1 per cent, from about four per cent a year ago,” he said.

    He said the budget also gives priority to infrastructure as well as security. “This is a step in the right direction given the high infrastructure deficit that we have in the economy and having regard to the security issues we are grappling with in parts of the country. This emphasis is therefore commendable,” he said.

    He, however, said the debt service provision of N1.5 trillion is however of serious concern. “It shows that we are operating a debt profile that is not sustainable. This amount is about 35 per cent of revenue, which has already exceeded the global threshold for debt sustainability,” he said.The economist also called for an appropriate economic policy framework that could inspire investors’ confidence.  Private capital is crucial to the progress and diversification of the economy.  “Only the right mix of policies would make this happen.  There is a need to urgently address the current policy shortcomings in the foreign exchange management; undertake urgent reforms in the petroleum downstream sector; review existing trade policies and promote investment friendly tax policy,” he said.

    Managing Director, Financial Derivatives Company (FDC) Limited, Bismarck Rewane said the passage of N6.06 trillion 2016 budget by the National Assembly is expected to raise the volume of dollar demand in the economy.

    His note in the FDC Bi-Monthly Economic Report for March released yesterday indicated that the increase in the Monetary Policy Rate (MPR) will reduce liquidity in the system and demand for dollars in the short term.

  • Germany shows interest in Nigeria’s gas

    Germany shows interest in Nigeria’s gas

    Nigeria’s quest to expand its Liquefied Natural Gas (LNG) market into Europe received a major boost  yesterday as a visiting German trade delegation indicated interest in the country’s gas supply.

    Leading German investors on a visit to the  Minister of State for Petroleum Resources, Dr. Ibe Kachikwu at the Nigerian National Petroleum Corporation (NNPC) Towers, Abuja, Vice Minister for Economic Affairs & Energy and Member of the German Parliament, Mr. Uwe Beckmeyer, said the country was seeking development of business relationship to accelerate the supply of LNG especially in the country’s ship building industry.

    Group General Manager, Group Public Affairs Division, NNPC, Mr. Ohi Alegbe,  in a statement yesterday explained that Mr. Beckmeyer, said Nigeria’s LNG would come in handy as the country and other European industrial powers seek to cut down drastically on carbon dioxide (C02) emissions arising from heavy industrial operations since LNG is far friendlier to the environment.

    “We have a lot of interest in LNG and I think this is one special thing we should develop in the next few years. I think there is increasing demand in Europe especially as we seek to reduce emissions. It is useful for both sides to develop this special business relationship,’’ the German Vice-Minister stated.

    Welcoming the delegation, Dr. Kachikwu said the oil and gas industry was ready to embrace the interest for improved business relationship expressed by the German trade delegation noting that the Federal Government is working assiduously with other relevant stakeholders to ensure activation of LNG Trains 7 which would help accommodate potential off-takers from new markets.

  • Abubakar Audu: Of loyalty and personal interest

    SIR: Since the unfortunate demise of Kogi State and Igala Kingdom’s most celebrated and decorated politician and onetime governor of the State, Prince Abubakar Audu, I deliberately chose not to add to the deluge of manifestly twisted, ignorantly pedestrian and hate-induced analyses packaged by power mongers and self-seeking elements masquerading as true defenders of the interest of the masses.

    I know for a fact that, late Audu, if given the opportunity to stage a comeback to this world would not want to identify with some characters who often fall over themselves to celebrate, eulogise or adulate him as their hero, especially on the cyberspace. Hardly was his death fully confirmed that these characters began to plot their games on the next line of action.

    Well, with his demise, I wasn’t really bothered with the issue of who would succeed him since nature abhors vacuum. But I am particularly worried by the rather callous disposition of certain characters who often pride themselves as Prince Audu’s disciples and diehard supporters who couldn’t wait for the remains of Audu to be properly committed to mother earth before they severed whatever relationship they ever had with him.

    We were told of how they eulogised late Audu and even threatened to jump into his grave when prayers were offered for his soul. But all that ended the very moment the late Aduoja was laid to rest in his family compound. Expectedly, the family members and REAL mourners were left to mourn the dead, while the pseudo mourners congregated elsewhere to plot their game.

    As you read through these lines, these same characters who swore to kill anyone who dared to malign late Abubakar Audu or make any attempt to seize power from his camp have since jumped ship and are now drumming support for a man they so hated, maligned and called names – Governor-elect, Alhaji Yahaya Bello.

    We all know the hidden intentions behind their actions. It is all about what they stand to benefit from the about-to-be-sworn in government.

    I took out time to read through the list of the Yahaya Bello Transition Committee as well as its sub-committees. I was indeed shocked by the names of individuals I found on it. I saw the names of a few self-acclaimed unrepentant, unapologetic and diehard supporters of late Prince Audu on the list. The same Senator Dino Melaye who once vowed never to recognise Yahaya Bello as Governor-Elect now heads the transition committee. Hon. Benjamin Ikani, a man who owes his political achievements to Prince Audu’s political astuteness is to serve as Secretary of the committee. I remembered watching Hon. Ikani vowed never to identify with the Yahaya Bello camp.

    Comrade Odaudu Joel Minister is another very character who consistently sang the praises of late Audu in the build up to the last election. He has since abandoned the late Audu/Faleke struggle. His name featured in media sub-committee of the Yahaya Bello transition committee. He has been making fruitless efforts to explain his reasons for his action.

    The emergence of Bello as the governor-Elect of Kogi state further affirms the lifetime truth that power belongs to God and He gives it to anyone he so desires.

     

    • Abdullahi Yunusa,

    Imane, Kogi State.

  • Reps to CBN: disclose interest on foreign reserve accounts

    Reps to CBN: disclose interest on foreign reserve accounts

    The House of Representatives has demanded to know how the nation’s foreign reserves accounts are managed by the Central Bank of Nigeria (CBN).

    The lawmakers, who were particular about the interests accruing to the funds in the foreign reserve accounts, are not happy that the reserves are managed by foreigners.

    The lawmakers directed the CBN to declare, without delay, the particulars of the accounts in which foreign reserves of the federation are held and any interest accruable to the foreign reserve accounts held on behalf of the federation in the last four years and thereafter periodically.

    The lawmakers urged the CBN to report the criteria for engaging any and all foreign managers of the foreign reserves account of the federation to ensure transparency.

    This is in addition to annual reports of performance and continued compliance of the managers with any set guidelines issued by the CBN for the engagement of the managers.

    The decision of the lawmakers followed the adoption of a motion by Abudussamad Dasuki  (APC, Sokoto), who noted that the CBN maintains several foreign reserve accounts on behalf of the federation containing funds in foreign currencies.

    He said the  foreign currencies are held in financial institutions before they are shared during the monthly Federation Accounts Allocation Committee  (FAAC).

    He said: “It is a fact that reasonable interests accrue from the surplus of funds held by the CBN on behalf of the federation which have not been monetised into naira and received by the federation from the CBN from the foreign bank accounts.

    “It is also a fact that foreign managers are contracted by the CBN to manage the funds on contractual terms which are not subject to public scrutiny or open competitive and transparent processes.

    “Furthermore, the Nigeria  Sovereign Investment Authority  (NSIA) was established, among other reasons, to undertake the management of of the excess crude account funds on behalf of the federation and that domestic capacity is being developed in order that large state-owned funds can be managed by Nigerians.

    “It is however of concern that the accruals to the federation from foreign reserve accounts have not been openly declared

    “Of more concern is the fact that some states have persistently agitated for the discontinuance of the ‘agreement’ allowing FAAC to decide savings or reserves from disbursable funds to the components of the Federation.

    “It is worrisome that the entire circumstances regarding the management of the Excess Crude Account  (ECA) of the federation is straining the relationship between the three tiers of government, in particular, with the argument of some states that they require the unused funds for  development purposes and so do not support the continued arrangement.

    “If this situation is not thoroughly examined and appropriate measures taken, it may lead to unforeseeable consequences.”

    The bill was referred to House Committee on Finace which had two  months to report back after it was adopted through voice vote.

  • Interest rate cut: bonds, naira fall

    Interest rate cut: bonds, naira fall

    The naira and bond yields fell sharply yesterday while stocks rose a day after the Central Bank of Nigeria (CBN) has cut interest rate to stimulate lending in the economy.

    The CBN cut benchmark interest rate to 11 per cent from 13 per cent on Tuesday, its first reduction in the cost of borrowing in more than six years.

    The naira was quoted at 242 to the dollar on the unofficial market, down 0.8 per cent from 240 the previous day.

    The currency, which is pegged at  N197 to the greenback on the official interbank market, traded at 235 on the unofficial market on Monday.

    The stock market, which has the second-biggest weight after Kuwait on the MSCI frontier market index, erased seven days of losses to climb to 27,662 points, following the rate cut. The index has fallen to 20.4 per cent so far this year.

    “On the back of the reduction in policy rates, investors are reconsidering investment in the equities market to earn higher return,” said Ayodeji Ebo, head of research at Afrinvest, adding: “We anticipate further moderation in bond yields.”

    He expected stocks in the industrial sector such as Dangote Cement and Lafarge Africa to gain from the liquidity surge as infrastructure projects boom. Ebo said the rate cut may hurt bank earnings as consumer firms reel from dollar shortages.

    Yield on the most liquid five-year bond fell 264 basis points to a five-year low of 7 per cent while the benchmark 20-year bond closed 150 basis points down at 10.8 percent on Wednesday, traders said.

    Bond yields had traded above 11 per cent across maturities prior to Tuesday’s rate decision, with the 2034 bond trading at 12.30 per cent.

    The central bank has been injecting cash into the banking system since October in a bid to help the economy. Banking system credit stood at 290 billion naira ($1.5 bln) as of Wednesday, keeping overnight rates as low as 0.5 per cent.

  • ‘I’ll protect indigenes’ interest’ 

    All Progressives Congress (APC) candidate for the 2016 Area Council election in the Federal Capital Territory (FCT) representing Abuja Municipal Area Council (AMAC), Hon. Abdullahi Mohammed Jabi has vowed to improve the well-being of Abuja natives and other dwellers if elected in the forthcoming election.

    Jabi made the promise during an interview with Abuja Review.

    He was optimistic that the capital city will be transformed in the shortest time possible.

    Jabi said security will be his utmost priority if voted into office, adding that Boko Haram insurgence will be tackle with fear or favour.

    He said, “I have 16 years experience as a party man since 1999 and for the position that I am going for chairmanship of AMAC, this is my third attempt towards realising my political ambition to govern the council. I come from Niger which was part of the states cut out to create the FCT but this is FCT, this is no man’s land, I am a citizen, I am qualified to contest election here that is what the constitution stipulates and I am resident in AMAC

    “Overtime we have had issues of chairmen that have passed through the same position without delivering key issues that has to do with residents of FCT, the issue of land acquisition is a problem, there should be mechanisms put into place to liberalise the policy so that so that everyone can have a sense of belonging as guaranteed by the constitution, secondly, you will realise that most of the satellite areas have not been covered over time, apart from the influence of FCDA particularly in the area council I am contesting, I have not seen where the chairman has gone out of his way to look at the interiors, where their are challenges of roads, water, sanitation, agricultural inputs that boost food production that has not been able to have adequate attention to are things that I will be channeling my energy to if elected.

    “I lost the other times because I had come from a weaker party whose structures where not solid but now, I am coming from a more solid party which is the APC, if I have the opportunity, I will be able to deliver, bearing in mind that I have all the necessary credentials to govern effectively. I am adequately connected with the people in the grass roots, under the zero party, I was a counsellor under the Jabi and they know that I am a man of the people, whatever I promise to do, that is what I will do without fear or favour, I am fearless, independent when it comes to policy issues.

    “The interest of the natives have to be protected vis a vis other nationalities resident here but we know from the record of the law that the FCT does not exercise anything called indigene ship, if you look at the arrangement in the constitution, it is like a no man’s land by acquisition if we talk of the indigenes, they are only dominate in few areas if I mention Wuse city centre, Jabi, Gwarimpa how many Gwari natives are here? It is the elites that are there, so invariably, the only place they can exercise their franchise is in Karshi, Orozo, Karu, Nyanya where they still have resemblance of population that can equate themselves with other population

    ”We will open up the rural areas, let their produce come to the market, empower them to have value for their produce and change their lives.”

    On what to expect from the incoming Minister of the FCT, he said: “the issue of the land swap scheme should be discontinued, the most dangerous thing happening all over the country right now is land grabbing, the issue of developer syndrome with unaffordable houses needs to be addressed, we can’t continue to leave buildings in the urban areas that is unoccupied to become a criminal den, we will give them a lot of taxation that will make them lease it out or allow people come in, a lot of policy issues needs to be addressed to make life more comfortable for everyone, we also need to look into the issues of ministries doing the same functions, for instance the aspect of the environmental protection board and their atrocities need to be redressed urgently, you can’t continue to use touts and tugs to keep of harassing peasant farmers and traders trying to make a living.

    ”In the aspect of security, I will establish neighbourhood watch properly trained and equipped, to work in line with security agencies and I will pay them good money, everybody must know his neighbour and they must police the community because if you do not do it from the community point of view, you cannot get it at the level of conventional policing.”

     

  • NACCIMA decries high interest rate

    NACCIMA decries high interest rate

    The Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has decried the high interest rate, which hovers between 17 and 28 per cent, noting that it is a major challenge to the business community. The Association argued that this may continue as long as the Central Bank of Nigeria (CBN) retains the Monetary Policy rate (MPR) at 13 per cent.

    Speaking with The Nation in his office in Lagos, on the state of the economy, NACCIMA President Mr. Bassey Edem asked the Federal Government to revisit and also consider the need to bring down interest rate to a single digit. He argued that if this is achieved the lending rate of banks will automatically be forced down. He said the effort by the government to stimulate the real sector of the economy may be in futility if the current trend in lending rate continues.

    Edem called the attention of the government to the fact that manufacturers are faced with infrastructural and operational challenges, which have limited operations and by extension the growth of businesses. He noted that the ability of manufacturers, entrepreneurs and indeed, the real sector to access funds for operations may be hampered if the trend continues.

    The NACCIMA chief said although, the chamber appreciates CBN’s effort at salvaging the country’s foreign reserve through the introduction of several management policies, some of them however, affected the free flow of international trade and restricted transactional leverages. He therefore, asked the CBN to put in motion action plans that will rejuvenate the economy to prevent it from going into recession.

    He said, for instance, that the apex bank needs to review the foreign exchange policy on imported goods vis-à-vis the commitment that had been made before the commencement of the CBN policy on the 41 prohibited items.

    The NACCIMA President however, maintained that the state of the economy as at the end of September 2015 did not leave much to cheer.

    According to him, the economy has been tottering due to the fact that major policies expected to drive the economy are yet to improve to meet the expectation of the business community.

    He reiterated the organised private sectors’ call on the federal and state governments to explore the provision of alternative energy sources for power generation such as solar, coal, and hydro to overcome the challenges of power supply in order to achieve the 20,000 megawatt target. He stressed that no meaningful progress can be made in the efforts to diversify the economy if the supply of stable power is not achieved.