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Tag: Lifeline

  • Lifeline for the suicidal

    By Kayode Ojewale, Idimu, Lagos

     

    When people kill themselves, they think they’re ending the pain, but all they’re doing is passing it on to those they leave behind —Jeannette Walls, American author and journalist.

    The World Health Organisation (WHO), while commemorating this year’s World Suicide Prevention Day, released some staggering statistics on records of suicide across the globe. In the data revealed by WHO, at least one person dies worldwide from suicide every 40 seconds. Globally, apart from road injury, which is the number one cause of death, WHO reported that, suicide is the second leading cause of death among young people aged 15-29, saying about 800,000 people die yearly due to suicide. According to WHO, for every death by suicide, 20 to 25 more people have attempted it.

    In May, a 16-year-old girl revealed how she made an attempt to end her life because she failed her university admission examination. She was of the view that life was no longer worth living, given the fact that she prepared hard for the exam yet she failed. She also attributed her frustration to the continuous nagging of the parents, who according to her, turned their backs on her. She narrated further that, were it not for timely words of advice and encouragement from her home lesson tutors, she would have opted for the killer agrochemical, sniper pesticide. She added that, those tutors, who were unaware of her attempt to kill self, aborted the purported plans and their inadvertent intervention via regular checks by phone eventually saved her. The thoughts of suicide later vanished as she heeded advice from those tutors.

    A pertinent question that bothers one is: why would a 16-year-old consider suicide after failing an exam that she had only attempted once? Perhaps there is more to the circumstance that warranted the suicide prompt than meets the ordinary eye. A very close friend of mine offered an emphatic answer to that sincere question. He put it simply: juvenile comparisons! While the submission may hold true from a point of view, it may not from another angle. Comparison may be healthy and sometimes unhealthy depending on who or what is being compared. Undue peer pressure is also one of the causes of suicide among young people. They consider themselves inferior on account of what their friends have which they lack. They begin to express this feeling of lack in the way they relate with those around them as it degenerates to keeping to self (isolation). Depression then creeps in, and if not checked, suicidal thoughts will follow too.

    It will be on point to add that, most young ones out there have become used to a lifestyle of instant outcomes and results. That moral value which teaches and encourages patience has dwindled, sunk and subsequently disappeared in our society today. The minds of youths, especially millennials, have been wired and configured to getting things done quickly or by cutting corners with a zero waiting time. Life to these teenagers should be a bed of roses, but when they encounter challenges or delays, life becomes hard and unbearable. This zero-waiting-time mentality or orientation of our youths nowadays has weakened their capacity to endure any delay, hardship or temporal setback in their pursuits. When they are hit by the vicissitudes of life with an attendant rock-bottom experience, they tend to throw in the towel because they haven’t developed that needed capacity to withstand challenges. If by chance things quickly fall in place for them in their pursuits, they are home and dry. They are not familiar with the concept of delayed gratification after a major success; hence such achievement may not stand the test of time. Youths should acquire life skills that will teach and enable them cope with stress, failure and disappointment. It will get them equipped and make them resolutely determined to succeed in a legitimate way no matter the challenges they may encounter.

    Late American Church Minister, Martin Luther King, Jr, opined that: “The ultimate measure of a man is not where he stands in moment of comfort and convenience, but where he stands at times of challenge and controversy.” This drives home the point that man is defined by how he is able to handle adversity.

    Reported cases of suicide and attempted suicide abound in the last few months. The recent disturbing dimension to suicide in Nigeria, pesticide self-poisoning, has become prevalent among youths, and it called for action from relevant authorities. This led to the placing of a ban on Sniper by the National Agency for Food and Drug Administration and Control (NAFDAC) because of its abuse and misuse. NAFDAC said the sale of sniper insecticide in open markets and supermarkets is now prohibited.

    A fact sheet released by WHO, states: “…many suicides happen impulsively in moments of crisis with a breakdown in the ability to deal with life stresses, such as financial problems, relationship break-up, or chronic pain and illness. In addition, experiencing conflict, disaster, violence, abuse, or loss and sense of isolation are strongly associated with suicidal behavior. Suicide rates are also high amongst vulnerable groups who experience discrimination, such as refugees and migrants…and prisoners. By far the strongest risk factor for suicide is a previous suicide attempt.”

    In proffering measures as solutions to suicide and suicide attempts, WHO said that there should be reduction in access to means of suicide, media report in a responsible way, intervention by schools, follow-up care for people with suicidal tendencies among others.

    Read Also: ‘Doctors are vulnerable to suicide too’

    The Director-General of WHO, Dr Tedros Adhanom Ghebreyesus, recently declared:  “Every death is a tragedy for family, friends and colleagues. Yet suicides are preventable. We call on all countries to incorporate proven suicide prevention strategies into national health and education programmes in a sustainable way.”

    Life, they say, is not a bed of roses. It is a blend of good and bad times. Sometimes, we get what we want at the right time, and at another time our wishes are delayed or even denied. It is when things do not go as expected that we begin to question our existence. Sometimes, due to the enormity of man’s challenges, our sense of in-depth reasoning can be beclouded by the current unpleasant situation of things. At that point, thinking straight might be difficult and then, abominable thoughts of trying irrational things will come to mind. Such thoughts can be dispelled by speaking out and sharing the problems with caring loved ones. It is one good way to stave-off suicide thought.

    When our youths become grounded in knowledge areas that pertain to handling difficult or challenging periods of their lives, they will be able to take informed decisions during tough times.

  • Northeast crisis: WFP provides lifeline to new arrivals in Bama Camp

    While food security across conflict-affected areas of Nigeria’s northeast has improved over the past year, the World Food Programme (WFP) remains focused on meeting the urgent needs of the steady flow of newly displaced people. Many arrive from areas that remain inaccessible to humanitarian organisations, writes Patrick Fuller

    For humanitarian workers, the quickest way in to the town of Bama, in Nigeria’s northeast state of Borno, is by the helicopter service operated by the UN Humanitarian Air Service (UNHAS). As the 30-minute helicopter flight from Maiduguri descends, the recent trauma suffered by this town becomes apparent. A victim of the conflict in northeast Nigeria, Bama is littered with the shells of burnt-out homes. A sprinkling of new roofs dot the town—a marker of some rebuilding—but many streets remain derelict and abandoned.

    Situated on the trans-Africa trading route close to Cameroon, Bama was once a thriving market town. Its population numbered 270,000 people. But in 2014, it was occupied by a non-state armed group. When the Nigerian army retook the town six months later, most of the population had fled and almost 85% of the buildings were left damaged or destroyed by the escaping fighters.

    The grounds of a former government boarding school now serve as a temporary camp for 25,000 displaced people. Most of the new arrivals here left their villages due to insecurity triggered by military operations against non-state armed groups. In June alone, 3,000 people arrived here. Some had been living in small villages deep in the bush; others had returned from Cameroon. With limited freedom of movement and scarce opportunities to make a living, the camp’s growing population remains heavily dependent on emergency food aid WFP provides.

    The number of people facing acute food insecurity in Borno, Adamawa and Yobe—the three conflict-affected states of northeast Nigeria—has significantly dropped from over 5 million to 3 million people over the past year. But the situation of thousands of freshly displaced people arriving in frontline towns such as Bama, remains precarious. Since the end of October of 2017, there have been an estimated 130,000 new arrivals. Sometimes, 20,000 people will arrive in a single month.

    The school hall in the camp now serves as a warehouse and distribution point for food trucked in by WFP. Bulis Ntasiri, Food Security Officer with WFP’s implementing partner, Danish Refugee Council (DRC), is preparing food for a group of about 50 women who have just arrived with their children. Each family receives a monthly ration of cereals, pulses, salt and vegetable oil. Children under five, women who are pregnant or breastfeeding, also receive extra nutrition in the form of super-cereal that has been fortified with vitamins and minerals.

    Fatima is among them. Her clothes are worn and dirty, and her 4-year-old son Mohammed lies limp in her lap. Weakened by hunger, his skeletal frame is covered in sores.

    Fatima’s story is typical of the experience of many of the women here. In 2013, her husband, a fighter with a non-state armed group, abducted her and her two-year-old daughter under false pretenses. He took them to a village in the remote Sambisa forest, on the border of Cameroon. She remained a captive for five years, giving birth to two more children. Eventually, she managed to escape with the help of another woman on the pretext that they needed to go to a neighbouring village to find food for her sick daughter. They walked for three days before reaching Bama.

    After her harrowing ordeal, Fatima managed to escape. She now receives food from WFP. Here she is being registered by a field officer from the Danish Refugee Council.

    “We only travelled at night,” explains Fatima. “The little food we had, I gave to the children to stop them from crying and attracting attention. If my husband had found us, he would have taken me back and given me away.”

    Gently squeezing a sachet of Plumpy’Sup, Bulis Ntasiri feeds small mouthfuls to Mohammed to boost his energy levels. This highly nutritious peanut based paste is fortified with vitamins and proteins and is distributed by WFP to prevent or treat children with moderate malnutrition.

    Many new arrivals in the camp, particularly the young, are malnourished. This is the lean season, when the year’s food reserves are depleted. Those in the worst condition tend to come from villages where it is unsafe for humanitarian organizations to operate and food is scarce. Currently, some 800,000 people in these remote areas are thought to be cut off from any aid assistance.

    Fatima is relieved that her ordeal is over and her children are safe. Although she has food, Fatima will now need to find someone who is willing to share their cooking pot so that she can cook her children a meal. Once she has recovered her strength, she plans on tracking down her mother and brother who live in Maiduguri.

    “We did not have an address but I remember what my neighbourhood looks like,” says Fatima. “I haven’t spoken to my mother since I was taken five years ago. She doesn’t know if I’m alive or dead.”

    WFP recognizes the support of donors for its food assistance activities in northeast Nigeria. Canada, European Commission (ECHO), Finland, Switzerland, the United Kingdom (DFID), the United States (USAID), and private donors have contributed to WFP Nigeria this year.

    To continue its emergency operation in northeast Nigeria, WFP urgently requires US$ 100 million to provide emergency food assistance, prevent malnutrition in young children and pregnant and breastfeeding women, support livelihoods and retain flexibility to respond to further displacement through March 2019.

    • Fuller is the Ag. Head of Communications of the United Nations World Food Programme (WFP) in Nigeria
  • NLPGA, investors discuss $10b policy lifeline

    NLPGA, investors discuss $10b policy lifeline

    The Nigerian Liquefied Petroleum Gas Association (NLPGA), investors and stakeholders in the liquefied petroleum gas (LPG) industry have discussed on how to tap into the over $10billion investment opportunities that would be unlocked by the national LPG policy unveiled by the Federal Government.

    The discussion took place at the NLPGA’s annual Chief Executive Officer’s Breakfast Meeting held in Lagos. The meeting brought together LPG producers, marketers, International Finance Corporation, UBA, Sterling Bank and other stakeholders who shared ideas on the investment opportunities that are expected to be created by the national LPG policy and how industry operators tap into them.

    NLPGA’s Executive Secretary, Mr. Joseph Eromosele, e explained that the overall goal of the LPG policy was to promote the wider use of LPG in domestic activities, power generation, autogas and industries while increasing national consumption to five million metric tonnes in five years.

    According to him, over $10billion can be generated if 50 per cent of the current kerosene and firewood users in the country switch to cooking gas by 2019. This, he added, offered huge investment opportunities for LPG players.

    He said: “Only five per cent of the Nigerian population utilises LPG for cooking while 56 per cent depends on firewood and 27 per cent on kerosene. Over 30 million households and more than 100 million Nigerians depend on firewood as a source of energy for cooking but this has come with collateral damage to human health, environment through deforestation, and the economy. With the LPG policy, we will be able to drive broader penetration of LPG into homes, especially the low-income households in rural areas.

    “Over $10 billion will be generated for the economy from the switch of 50 per cent kerosene and firewood users by 2019.  Estimated 500,000 – 1,000,000 jobs will be created in the LPG value chain within the next two years with the planned Kerosene to LPG switching programme.”

    The Deputy President, NLPGA, Mr. Nuhu Yakubu, said the policy also aims to use LPG to displace low pour fuel oil (LPFO) and diesel as popular fuel among industrial users while deepening applications in agriculture and commercial establishments.

    “Yakubu said: “The policy will also promote the use of LPG for off and on grid power generation. It will provide the environment for the use of LPG in the automotive industry with a target conversion of 10 per cent of the country’s vehicle population. These are investment opportunities for industry stakeholders.”

    The Programme Manager, National LPG Expansion Implementation Plan in the Office of the Vice-President, Mr. Dayo Adeshina, lamented that 18 states in northern Nigeria are currently suffering from desertification and deforestation because several millions of the citizens rely on firewood for cooking.

    Adeshina warned that if the situation continues unchecked, states in the southern part of the country could soon start experiencing deforestation, a development he said shouldn’t be allowed.

    He noted that only increased utilisation of LPG could halt deforestation, which is fast encroaching into new areas of the country. Adeshina added that to deepen LPG usage, more investments were needed in local gas cylinder manufacturing and urged NLPGA members to begin to look at the direction especially with a national LPG policy now in place.

    He decried the shutdown of two cylinder manufacturing plants in Nigeria, adding that some investors had signified interest in manufacturing cylinders in the country.

    Participants at the meeting noted that though the nation’s total domestic LPG consumption had grown from just below 70,000 tonnes in 2007 to 500,000 tonnes in 2016, the improvement in the domestic consumption of LPG only translated to a per capita consumption of only less than 2.5kg. This was compared to the low per capita consumption in selected African countries like South Africa at 7.28kg, Ghana at 9.45kg, and Morocco at 66.27kg, they added.

    According to the participants, some factors responsible for the low consumption level in Nigeria inadequate supply of LPG equipment, high cost associated with the acquisition of cylinders and LPG stoves, insufficient number of jetties and LPG inland storage facilities, excessive import duties and VAT on LPG equipment, and inadequate road and transport network facilities. They also noted lack of access to long-term funds for LPG project in the country and blamed the banks for that.

    Representatives of some of the banks at the meeting enlightened the LPG operators on what they needed to do to attract funding from the banks.

    The meeting ended with the confidence that the LPG policy would spur a revolution in the LPG industry and urged the government to ensure that the policy is fully implemented to the benefit of all Nigerians.

  • ‘Water, lifeline of civilisation’

    The world needs a more-focused and concerted approach to tackle the challenge of fresh water, which is gradually becoming a scarce commodity globally.

    In a message at the World Water Week celebration in Stockholm, United Nations’ Deputy Secretary-General Ms. Amina Mohammed, stressed the need to accelerate progress towards sustainable development goals (SDG) on clean water and sanitation, and on water-related sustainable development goals.

    “Today, strains on water are rising in all regions and climate change is aggravating the challenge. When water is unequally shared, or perceived to be, the risk of local and national conflict increases. We are even seeing in some cases the use of water as a weapon of war,” she said.

    Ms. Mohammed joined other water experts, development professionals, policy-makers and stakeholders at the just-concluded week-long meeting in Stockholm, which focused on finding ways to better use, and reuse, the world’s increasingly scarce fresh water. Over 3,200 participants from 133 countries attended several hundred sessions, shared experiences, and discussed solutions to the world’s most critical water challenges.

    For Ms. Mohammed, the priority is to harness national leadership and global partnership to scale up action. This, she noted, can be achieved only by ensuring the sustainability of fresh water and access to sanitation for all in order to achieve the sustainable development goals (SDGs).

    “Let us value and treasure water as we value and treasure life itself,” Ms. Mohamed said.

    With water said to be in short  supply, participants at the meeting were united that understanding and recognising the many different values attached to water was the key to more efficient use.

    “Water is the lifeline of our civilisation. Without it, there is no hope of sustaining households, industries, food and energy production, or such key functions as hospitals. Access to safe water is necessary in order to implement the global development agenda.

    “With increasing scarcity, we must recognise the many values attached to water, be it economic, social, environmental, cultural or religious. I believe that by re-valuing water, we will develop a deeper understanding and respect for this precious resource, and thus be better prepared for more efficient use,” said SIWI’s Executive Director, Torgny Holmgren

    Throughout World water week, links were made between the different values of water, including its monetary value. “I believe we will see more diverse pricing structures in the future, allowing for more economical and efficient use,” said Holmgren.

    South Africa’s Minister of Water and Sanitation, Nomvula Mokonyane, remarked: “We need to embrace new technologies, which support our route towards the realisation of the SDGs and that an appreciation must also be given to new world class technologies emanating from Africa.

    “We cannot afford to continue to do what we did yesterday and expect to see a different result tomorrow. We must be bold,” said Mokonyane.

    Mark Watts from C40, an organisation that gathers mayors of cities worldwide, told participants about the risks that big cities face from climate change and how water is key to mitigation and adaptation efforts.

    “We see that water pattern disruption is often the first sign of serious climate impacts and 70 per cent of our member cities tell us that they are already seeing the significant and negative impacts of climate change. Sixty-four per cent of our member cities face significant risk from surface and flash floods,” Watts said, adding that water must be part of the climate mitigation programmes, but also a central part of climate adaptation.

    Hungarian President János Áder, who addressed the event, said the world needs a more focused global effort towards tackling water challenges.

    During event, Stockholm Junior Water Prize was awarded to Ryan Thorpe and Rachel Chang, USA, for their novel approach to detect and purify water contaminated with Shigella, E. coli, Salmonella, and Cholera. Crown Princess Victoria of Sweden presented the prize.

    The Stockholm Water Prize was awarded to Professor Stephen McCaffrey, USA, for his unparalleled contribution to the evolution and progressive realisation of international water law. The prize was presented by  Carl XVI Gustaf, King of Sweden, patron of the prize, at a ceremony in Stockholm City Hall.

  • $15m lifeline coming for Kaduna Textile

    The New Nigeria Development Company (NNDC) is partnering Sur International Textile (SIT), a Turkish firm, to invest $15 million to reactivate the collapsed Kaduna Textile Company.

    NNDC Group Managing Director Dr Ahmed Musa made this known to reporters, shortly after a meeting with the Turkish business delegation at the NNDC’s head office in Kaduna.

    Musa said the NNDC and SIT would invest the amount to revitalise the textile company. According to the proposal, the Turkish firm will provide 35 per cent of the amount, the Federal Government, 45 per cent, and KTL will give 20 per cent.

    Musa said in the short term, the KTL would produce uniforms for the Nigerian Armed Forces, the Police and other paramilitary agencies in the country, and across West African.

    He said revamping the KTL would boost Kaduna State economy and create employment for the unemployed within and outside the state.

    “We held a private meeting with a team of delegation from Turkey. They want to invest in Kaduna Textile and turn it around. In summary, they want to start producing military and paramilitary uniforms for members of the Nigerian Armed Forces,” Musa said.

    According to him, the project is a laudable one that will boost the state economy and increase its revenue drive while creating massive employment. “We have been able to attract investors into the state,” he added.

    The NNDC’s Executive Director, Investments, Alhaji Abdullahi Ali-Gombe, said the agreement would revamp the textile firm owned by the 19 northern states.

    Besides boosting the economy, when operational, the firm will go into the production of military and paramilitary garments.

    Ali-Gombe, who is also the Chairman, Restructuring Committee of the KTL, said: “We cannot say tentatively when this will take off. We are hoping very soon.”

    The Kaduna Textile Limited, established in 1957, operated a large integrated textile mill, producing various kinds of garments.

    The company started operation in November 1957, spinning the country’s cotton. In 1961, it began the production of finished garments.

    The firm was financed by the Northern Nigeria Regional Marketing Board and the region’s development corporation and was managed by an expatriate firm, David Whitehead & Sons. It was closed down in 2000 following various financial crises and inadequate power supply.

  • Lifeline for the less–privileged

    Touching Lives International at the weekend doled out 70 Sport Utility Vehicles (SUVs)  to mark its 10th month anniversary  in Nigeria.

    The event, held at FESTAC Town, Lagos was the fourth edition of its awards since inception last July, bringing the number of cars dished out to a hundred.

    Awardees were decked in uniformed dresses, danced and sang with their family members and friends who were on ground to felicitate with them.

    Outside the venue of the event were other consolation prizes to be given out, well arranged to catch the attention of guests as they made their way into the events hall of Tastee Fried Chicken on 22 Road.

    Some of the items include: telephones, laptops, generators, washing machines, gas coolers and well decorated Hyundai and GAC suvs of different colours.

    Also on display were banners of its sponsors such  as Gionee; Skye Bank; Lenovo; GTB; Zenith Bank; Travelstart and Linkage Assurance.

    Country Manager of TLI, Adedipo Solomon Otegbayo, said the success of TLI is about the difference they make in the lives of people and not how much money one makes.

    He described the organization as a global one with a passion to touch lives and with a mission to emancipate poverty globally through its network marketing plan.

    “This gathering is to raise more partners and to empower lives. It’s compensation plans can impact many lives and benefit partners. A portion of money realised is given to the less privileged, he said.

    TLI’s vision is to be the lifewire of the less privileged through humanitarianism services, real estate, commerce and online services as well as free skill acquisition.

    The high point of the event was the unveiling of the first car awardee Agatha Ekpo as its ambassador and the launch of the TLI membership card, which provides members and their beneficiaries health insurance, death benefits to the tune of about 2million naira and they will also be exposed to foreign trade and export and a lot more.

    Otegbayo noted that there were other benefits attached to the card even without being a member of the organisation.

    All with the presentation of car keys was a $5000 cheques to help needy persons of their choice.

    For its one year anniversary, the country manager urged Nigerians to look out for its promos that would afford all an opportunity to win cars almost effortlessly with the snap of their fingers.

     

  • $11b lifeline for ACP slum dwellers

    Slum dwellers in African, Caribbean and Pacific (ACP) countries may soon begin to breathe the air of a new dawn.

    This is predicated on the Participatory Slum Upgrading Programme (PSUP), for which $11 million has been secured.

    The PSUP is an initiative of the Secretariat of the ACP Group of States, funded by the European Commission and implemented by the United Nations Human Settlements Programme (UN-Habitat).

    UN-Habitat estimates that an alarming one billion people live in slums worldwide, and if no action is taken, the number of people living in this inadequate housing is estimated to grow to over three billion by 2030.

    This announcement was made at the 26th session of the UN-Habitat Governing Council, where opportunities for the effective implementation of the New Urban Agenda, a 20-year plan of action on housing and sustainable urban development was discussed.

    “I am delighted to celebrate and announce the third round of funding for the global Participatory Slum Upgrading Programme,” said Ambassador Léonard-Emile Ognimba, the Assistant Secretary General of the Secretariat of the ACP Group of States.

    He further indicated that “10 million Euros will be used for 50 percent of the ACP countries. Going forward, we would like to see the strengthening of community-led processes, and empowerment of local and national governments to build their financial and technical capacity to tackle the slum challenge”.

    The funding covers 2017-2021 during which UN-Habitat is expected to leverage the $11 million and bring about the necessary change and transformation to end urban poverty in ACP countries in a sustainable way. The funds are also meant to catalyse public resources through slum upgrading.

    At the international level, the European Commission is exploring the European Union blending a modality where national level banks and private sector are approached to finance slum upgrading initiatives.

    “I can ensure you that UN-Habitat and the Participatory Slum Upgrading Programme are fit for purpose to implement in line with the Sustainable Development Goals (SDGs) and the New Urban Agenda. UNHabitat will do its level best to leverage the catalytic funds and bring about the necessary change and transformation to end urban poverty in ACP countries in a sustainable way with a long-term vision,” said Mr. Raf Tuts, the Director of Programme Division, UN-Habitat National and local authorities are also expected to co-finance the process.

    “The City of Dakar and my Ministry have signed contribution agreements totalling $300,000,” stated Diène Farba Sarr, Senegal’s Minister of Urban Renewal, Habitat and Living Environment, while showing his government’s engagement.

    Cameroon’s contribution to slum upgrading was also highlighted. “My government provided co-financing of $260,000 for the implementation of tangible initiatives at neighbourhood level,” said Jean Claude Mbwentchou.

    The interventions include provision of sanitation facilities and upgrading of public spaces that include the construction of public bridges in order to enhance access. An additional $200,000 was contributed by partners, added the Minister.

    Slums and informal settlements are the physical manifestations of inequalities, according to the UN-Habitat, adding that they stand for exclusion, stigmatisation, gentrification and urban poverty. While the percentage of slum dwellers decreased from 39 percent to 30 percent of the urban population in developing countries between 2000 and 2014 – absolute numbers of slum dwellers continue to grow.

  • $1b Eurobond: Lifeline for road, railway power, others

    $1b Eurobond: Lifeline for road, railway power, others

    Nigeria has successfully raised $1 billion Eurobond at the International Capital Market (ICM) to fund key projects –roads, railways and power. Fund managers, mainly United States (U.S.) investors, dominate the allocation of the offer, which was oversubscribed by nearly 800 per cent. COLLINS NWEZE writes that the oversubscription of the 15-year tenor bond ending 2032 in a recession, rising inflation and currency crisis shows the resilience of the economy. 

    IF the positive feedback from international investors is anything to go by, things are beginning to look good for the Nigerian economy. The $1 billion Eurobond offer held last Thursday, the fourth since 2011, was oversubscribed by nearly 800 per cent. The cheery news was the country’s first since its economy, last year, slipped into recession, the first in almost three decades. The oversubscription surprised not a few pundits.
    The offer, which comes at $200,000 denominations and multiples of $1,000 denominations, will mature on February 15, 2032, with Citigroup Global Markets Limited and Standard Chartered Bank. Stanbic IBTC Capital is the Financial Adviser.
    For a country grappling with recession, the endorsement from international investors meant that things were not as bad as being projected. Many analysts had predicted that the country would be priced out of the market for the offer.
    With all the indicators at the close of last year in the negative – inflation at 18.6 per cent, Gross Domestic Product (GDP) growth rate negative and naira in tatters, that the economy commanded – the confidence of global investors, explained how resilient it was.
    The Federal Government had on February 9, issued $1 billion Eurobond at 7.875 per cent yield and 15-year tenor to support infrastructural developments in road, railway and power.
    A currencies analyst at Ecobank Nigeria, Olakunle Ezun, said the oversubscription of the bond reflected continued confidence in the country’s economic prospects despite exchange and inflation rates challenges. He said fund managers dominated the allocation of the bond with United States (U.S) investors accounting for most of the demand.
    He said: “For some of us that believe in Nigeria, people think that we are joking. Despite the inflation and exchange rate worries, Nigeria was still able to get a good bargain. It gives me the hope that the economy will soon rebound”.
    Ezun said that Nigeria’s overdependence on crude oil robbed it of its many opportunities. “All we need to do is just diversify the economy from crude oil. If we had used the oil revenues efficiently, we should not be importing fuel and the savings from that alone will lift the economy speedily,” he said.
    Ezun said that with an estimated 190 million population and good demographics, Nigeria remains savvy investors’ destination. “If the government had known, it would have asked for $4 billion. The economy is not as bad as people think,” he said.
    Former Keystone Bank Executive Director Richard Obire, who said that the government can quickly go back to the market, advised that the funds being raised should be supported by good policy and commitment to deliver on the set targets.
    According to him, the risk of investing in the country was still low, and the Organisation of Petroleum Exporting Company (OPEC) and non-OPEC countries have been co-operating to moderate the prices of crude oil. “Nigeria needs to use the money well to position the economy in the medium to long-term,” he said.
    The Managing Director of Afrinvest West Africa Plc, Ike Chioke, said that despite the rating downgrade from “B+” to “B” by S&P in third quarter of last year, and a recent downgrade by Fitch (long-term foreign and local currency issuer rating) to “B+” with a negative outlook, the Eurobond was over-subscribed.
    This, he noted, was in contrast to consensus expectation, given the protracted liquidity crisis in the domestic currency market which has affected capital flow.
    Chioke said: “At 7.9 per cent yield, we can imagine that a stable outlook for crude oil prices and the considerable gains recorded against militancy in the Delta region, which pushed back output level to 1.9 million barrel per day (mbpd) from 1.6mbpd, may have buoyed interest in the issue. Overall, we think the success of the Eurobond is positive for fiscal policy given the need to finance this year’s budget and restore the economy to the path of growth,” he said in an emailed note to investors.
    Chioke noted that the National Bureau of Statistics (NBS) recently published its fourth quarter 2016 capital importation report.
    The Bureau valued the total capital inflow into Nigeria during the period at $1.5 million, implying 15 per cent and 0.5 per cent decline quarter-on-quarter and year-on-year respectively.
    The slowdown in capital inflow in the last quarter was as a result of the decline in portfolio investments (FPIs) against the impact of the increase in Foreign Direct Investments (FDIs) and other investments.
    The NBS report said: “The 2016 fourth decline in capital inflow was in contradiction of the performance recorded in third quarter when quarter-on-quarter capital imported increased 74.8 per cent in reaction to the adoption of the flexible exchange rate policy by the Central Bank of Nigeria (CBN).
    “A further breakdown of the fourth quarter capital inflow showed that portfolio investments in bonds declined from $369 million in third quarter to $25.4 million whilst investments in equities dipped from $201.1 million in third quarter to $176.5 million.
    “The year-on-year capital importation fell to between 4.9 per cent and $5.1 billion in 2016 from $9.6 billion in 2015 – the lowest capital importation recorded in almost a decade. FPIs declined faster in 2016, down 69.8 per cent year-on-year relative to 27.8 per cent decline in FDIs.
    “There are indications that the protracted liquidity crisis, market fragmentation, price misalignment and the widening spread between the interbank and parallel markets rates will continue to constitute impediments to capital importation in Nigeria.”
    The Director-General of the Debt Management Office (DMO), Abraham Nwankwo, said Nigeria’s low debt to GDP ratio meant that the country can borrow more to fund the budget, infrastructure and other essential projects that will stimulate the economy and create jobs.
    The DMO won the confidence of international investors, leading to the oversubscription of the offer. The excitement in the offer was driven by international investors’ endorsement of the Federal Government’s initiatives at economic recovery.
    Investors, hungry for higher returns in a low interest rate environment, reckon that Nigeria’s benign debt levels, recovering foreign exchange reserves and a potential yield above seven per cent, as reasons enough to look beyond the its economic woes.
    The $1 billion Eurobonds offer received of ‘B+ (EXP) rating from Fitch Ratings. The assignment of the final rating is contingent on the receipt of final documents materially conforming to information already reviewed.
    The rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. Fitch had earlier affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the Outlook to Negative from Stable. The Long-Term Local-Currency IDR is also ‘B+’ with a Negative Outlook.
    The success of the offer at a time sentiment towards African debt has soured after Mozambique missed a coupon payment was attributed to DMO’s commitment and expertise in the debt sale. The DMO facilitated the success of the offer despite the poor state of the economy. The debt office, analysts said has proven Nigeria’s resilience with the Eurobond likely success.
    The last time Nigeria issued dollar-denominated bonds in July 2013, the barrel price of oil was above $100 but the slump in prices from $115 in June 2014 to just $28 a barrel by January last year hurt Nigeria’s economy.
    The worsening dollar scarcity makes this new borrowing plan imperative. Nigeria sold dollar bonds twice, the first was in 2011 when it raised $500 million through Eurobonds and subsequent two issuances in 2013 when it raised $1 billion of five and 10-year debts to finance budget deficits.
    “The government has access to hard currency even if they are restricting the access of other agents in the economy,” said Kieran Curtis, investment director at Standard Life Investments, who also plans to look at Nigeria’s upcoming bond issue. Nigeria’s existing 2023 dollar bond yields about 6.7 per cent, or 170 basis points lower than Ghana’s 2023 bond.
    The floating of the Eurobond is part of the planned Federal Government’s Medium Term Note (FGMTN) Programme (2016 to 2018) and is expected to help the government bridge the N2.2 trillion deficit in this year’s N6.07 trillion budget.
    A notice of request for proposal from Debt Management Office (DMO) said the purpose of the FGMTN programme was “to enable the Federal Government have the flexibility of quickly taking advantage of favourable market conditions in the ICM to raise funds, if and only when the need arises”.
    The government had increased 2016 budget by 20 per cent, allocating one-third to infrastructural projects including roads, rail, ports and bridges. This, it believed, would stimulate the economy already battered by a drop in crude oil production/prices even as the International Monetary Fund (IMF) projected that the economy will contract by 1.7 per cent this year.
    Associate – Research, Eczellon Capital Limited, Mustapha Suberu, said that the government should focus more on external borrowing, and less on local borrowing, insisting that the foreign debt is cheaper. Describing borrowing as not a bad idea, he advised that borrowed funds must be used for infrastructure and raise the competiveness of the economy. He also stressed the need for adequate monitoring to ensure that borrowed funds were deployed to projects they were meant for.
    The Director-General of West African Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, explained that with declining government revenues from oil, budgetary allocations alone may not be enough to finance the country’s infrastructure deficit. Prof. Ekpo admitted that the debt option remained the most viable at this time. He said Nigeria’s rebased $510 billion GDP economy has given it more room to borrow more to bridge infrastructure gap.
    According to him, the available power generation capacity of about 2,000 megawatts, is far cry from the estimated 10,000 to 12,000 megawatts demand. This has resulted in frequent and unpredictable load shedding and a heavy reliance on generators as alternative power source by consumers.
    He said: “With the current political will to tackle corruption and the desire to find a solution to the infrastructure problem in the country, there is need to channel fresh investments into power supply, roads, the railway and other social amenities,” he said.
    Ekpo, who noted that the times were abnormal, said the government has to borrow because the country sank into recession. He said that Eurobonds, though costlier than funds from multilateral institutions, get the cash out faster.
    “If things were normal, one would advise against borrowing. But the Eurobonds are still better than domestic bonds, because of their tenor, which between five and 10 years. Although $1 billion Eurobonds at this time is not enough, but the government needs it to build infrastructure, pay salaries in 28 states that owe their workers thereby stimulating demand,” he said.
    On repayment plans, Ekpo said that the government can get the funds to pay subscribers or issue another Eurobonds when the bonds mature.
    To him, the continued slide in government revenues from crude oil, its plan to provide tangible assets like housing, power (electricity), transport, education, communication, and technology, may be hampered by paucity of funds hence the need to key into the Eurobonds project.

    Road to the offer

    The Federal Executive Council (FEC) had last December, approved the appointment of transaction parties for the one billion dollars Eurobond to be issued next year. Minister of Finance Mrs. Kemi Adeosun, who broke the news after the FEC meeting, listed the transaction parties as Citigroup, Standard Chartered Bank, Stanbic IBTC, Whiten case, Banwo and Ighodalo and Africa Practices Communications Advisers.
    She said: “The $1 billion Eurobond programme is part of the funding for 2016 budget and we hope to be able to commence the process in January. We obtained certificate of no objection from the Bureau of Public Procurement (BPP) for the appointment of those parties, having undertaken full competitive open tender process.”
    Adeosun went on: “We are confident that we will be able to complete the transaction expediently with significant interest. The oil price stability obviously is helping us. Currently, there is a bit of demand for emerging market papers. We’re looking at a maximum of $1 billion.
    “We need to go out and sell our story, talk to people, talk to the market – and get the best value,” Adeosun said, adding that Nigeria’s paper is trading around eight per cent mark.
    She added: “We are expecting to get quite a competitive pricing on the issuance programme, which I said, is to be used for the purpose of funding capital projects in the 2016 budget within the month of January. The other thing to note is that these parties that have been appointed would run any Eurobond issuance programme for the next three years so that we don’t have to keep on retendering, unless there is a major problem with any of them they will be our parties for the next three years.”

    Debt profile

    Nigeria’s total debt rose to N16.29 trillion (about $65.42 billion) as of June 30, last year as against N12.60 trillion ($65.42 billion) as of December 2015.
    DMO’s chief, Nwankwo, insisted that the country’s public debt-to-GDP remained sustainable despite the slump in crude oil prices.
    According to him, while other countries base their borrowing on debt- GDP ratio of 56 per cent, Nigeria will not exceed 19.39 per cent until 2017.
    His words: “Our debt continues to be sustainable, despite all these volatilities in the ICM and the collapse of oil prices. However, it does not mean that Nigeria should go and sleep and hope that providence will continue to provide for them.”
    He noted that the country has abundant resources in agriculture, solid minerals, Information Communications Technology (ICT), among others that offer ample opportunity for diversification of the economy to boost revenue.
    Nwankwo stressed the need for Nigerians to face the reality that oil boom was over and may not reoccur anytime soon – by making wise decisions to invest in infrastructure, revamp agriculture, improve power supply and focus on the real sector. This, he said, will make the economy more productive and competitive.

    Eurobond issuances
    in other countries

    Nigeria is not alone in the Eurobonds race as many African countries have successfully raised cash from the ICM. This issuance of Eurobonds has gained momentum in recent years as countries seek to lock in favourable rates from the market.
    For Nigeria, the successful issuances of three Nigerian Sovereign Eurobonds in the ICM, one in 2011 and two in 2013 – have opened the window for the private sector to raise the required foreign currency funds. Local banks and other companies are now able to fund long-term real sector projects in agriculture, manufacturing, housing, mineral exploration and processing, infrastructure for diversified and sustainable economic growth, towards employment generation and poverty reduction.

  • N20b lifeline coming for Anambra MSMEs

    The Anambra State Government has said it is targeting N20 billion to boost Micro, Small and Medium Enterprises (MSMEs).

    Anambra State Small Business Agency (ASBA) Managing Director, Mr. Clement Chukwuka, who who made this known in Awka, the state capital, said the agency targets N20 billion in the next seven and half years with the hope of generating over N3 billion this year to assist entrepreneurs.

    According to Chukwuka, the agency was already working with the Central Bank of Nigeria (CBN) to raise more funds.

    “In the past 19 months, the agency had so far funded in excess of 15, 000 people directly in the micro credit schemes and close to 200 for the Small and Medium Enterprises (SMEs), which had further created chains of employment,” he said.

    Chukwuka added that the agency had also put in place shoe manufacturing cluster in conjunction with the Standards Organisation of Nigeria (SON) with over a thousand shops built with little funds. He said they are expected to begin manufacturing of shoes for export.

    Apart from providing finance to entrepreneurs at nine per cent interest rate, the ASBA boss said the agency was also mentoring and planned to open up opportunities for fashion designers, mechanics and artisans this year.

    He said since June 2015, the state government in conjunction with the CBN had disbursed about N2 billion loans through the agency to revive moribund industries.

    While reiterating the state’s commitment to remain the choice destination for commerce in the country, Chukwuka said the agency also plans to establish ASBA Business Academy.

    The Academy, he said, would train and certify artisans with the state Ministry of Science and Technology. “Our aim is to ensure that paper qualification becomes a thing of the past because we want people to make a living despite the economic recession,” he said.

    ASBA is a state-owned development financial institution created to cover areas of industrialisation, value added chain programmes, artisans, science and technology, oil and gas, and manufacturing sectors.

    “Major Anambra rice millers and the clusters that export vegetables from the state overseas are funded by the agency to boost the agricultural sector,” the ASBA helmsman said.

    He added that micro-credit entrepreneurs, who applied for funds received between N1, 000 and N500, 000, while between N5 million and N50 million was approved for successful applicants under the SMEs programme.

    Chukwuka stressed that ASBA had impacted over 60, 000 businesses directly and indirectly in the state, adding, however, that the agency had strict policy for recovering every loan.

    He also said Governor Willie Obiano  was determined to encourage investments and build institutions that would not only promote MSMEs, but outlive his administration.

  • Lifeline for non-oil exporters

    Lifeline for non-oil exporters

    The Central Bank of Nigeria (CBN) has released guidelines for the Non-Oil Exports Stimulation Facility (ESF). This is expected to give impetus to diversifying the economy from its over-dependence on oil. Assistant Editor CHIKODI OKEREOCHA reports.

    For long, access to low interest credit remained a pain in the neck for operators in the non-oil export business. Because of declining export credit, most of them could not upscale and expand their businesses. Consequently, their competitiveness suffered. The growth of the non-oil export sector was also  stunted, unable to contribute significantly to revenue generation, job creation and economic development.

    The sector’s declining fortunes left a sour taste in the mouths of operators and stakeholders, as the sector was not robust enough to be the wedge for an economy severely battered by crashing oil prices. But the fortunes of the sector appear set for a major reversal. The Federal Government has moved a notch higher in its quest to reposition the sector by redressing the declining export credit that has held the sector down over the years.

    Specifically, the Federal Government, through the CBN, a fortnight ago, released  operating guidelines on the Non-Oil Exports Stimulation Facility (ESF). The move was part of efforts to stimulate non-oil exports and diversify the economy. Under the guidelines, the CBN said the ESF will be managed by the Nigerian Export-Import Bank (NEXIM), which shall be responsible for the day-to-day administration of the Facility and render periodic reports on its performance to CBN.

    For operators in the non-oil sector, the icing on the cake of the strategic initiative was CBN’s decision to implement the facility by investing in a N500 billion debenture to be issued by NEXIM. The apex bank, according to information posted on its website and accessed by The Nation, added that eligible borrowers and beneficiaries will include only export-oriented enterprises and firms.

    The eligible borrowers and beneficiaries will also have verifiable export off-take contract(s), coupled with possessing satisfactory credit reports from at least two credit bureaus. Also qualified to benefit from the facility are Eligible Bank Asset (EBA) purchased by the Asset Management Corporation of Nigeria (AMCON) that are of national economic importance and have proven potentials to export.

    Apparently to encourage local content, the CBN also said eligible transactions that qualify for funding under the ESF will include export of goods wholly or partly processed or manufactured in Nigeria; export of commodities and services, which are permissible and excluded under existing export prohibition list and importation of plant & machinery, spare parts and packaging materials, required for export oriented production that cannot be produced locally.

    Others include export value chain support services such as resuscitation, expansion, modernisation and technology upgrade of non-oil exports industries, transportation, warehousing and quality assurance infrastructure. Deposit Money Banks (DMBs) and Development Finance Institutions (DFIs), except NEXIM, are also eligible to participate in the scheme.

    The banking industry regulator further stated that the ESF shall not exceed 70 per cent of the total cost of the project or transaction subject to a maximum of N5 billion. Also, the ESF shall have a tenor of up to 10 years and shall not exceed the 28th of December, 2025. Stocking facility shall be for a maximum tenor of one year, with the option of roll-over not exceeding twice.

    However, this shall attract an additional fee of 0.25 per cent per annum of the loan amount and is subject to CBN’s approval. Working capital facility shall be for a maximum tenor of one year with the provision of roll-over not exceeding twice. However, this shall attract an additional fee of 0.25 percent per annum of the loan amount and is subject to approval of CBN.

    In addition, the CBN stated that the structure of interest computation under the ESF will be as follows: “Participating Financial Institutions (PFIs) – maximum spread of six per cent per annum, NEXIM – one per cent per annum and CBN – two per cent per annum.

     

    Why the initiative is imperative

     The release of the ESF guideline followed CBN’s earlier announcement that it had designed two export financing programmes known as Export Rediscounting and Refinancing Facility (RRF) and Non-oil Export Stimulation Facility (ESF) to improve non-oil export in the country and achieve total diversification of the economy.

    The new export financing programmes were unveiled in Abuja at the non-oil exports stimulation conference organised by CBN and NEXIM. At the conference themed “Strategies for Growing Nigeria’s Non-Oil Exports,” CBN Governor Godwin Emefiele explained that CBN and NEXIM came up with the initiative to encourage exporters to expand their businesses as well as provide a pool of funds for commercial banks to support exporters.

    According to Emefiele, credit to the non-oil export sector is in decline, constituting a paltry 0.6 per cent of total domestic credit to the private sector in the past five years, while domestic credit to the economy has been on the rise. He blamed low level of export loans for being largely responsible for the decline in non-oil export revenue receipts from $10.53 billion in 2014 to $4.39 dollars in 2015.

    “The impact of these developments on the country’s export growth potential is quite significant and has become instructive for stakeholders to dialogue on strategies to expand resources for export,” the CBN boss said, adding that the decline also limited the sector’s contribution to foreign reserve accretion. He said volatility in the international oil market necessitated the renewed focus on non-oil exports as panacea to the nation’s dwindling foreign reserves.

    Emefiele noted that a rejuvenated non-oil export would stimulate economic growth and development, address the challenges of unemployment and target economic rebirth through the diversification of the Nigerian economy. He, therefore, pledged that CBN will continue to play a catalyst role in improving export and encouraging local production.

    NEXIM Managing Director Mr. Robert Orya also said the funds would be provided to all banks that lend to the export sector and that the banks would be mandated to give loans to exporters at nine per cent maximum. “If a commercial bank gives you a loan to say that you will return it in a year, the bank will not have money to loan out until you return that money.

    “But this window is such that as soon as this money is given to exporters, they will bring the credit papers and we refinance and give them the same money that the banks have given them , so the banks can give to others. As soon as the exporters receive the money from the banks, they will bring the credit papers to us again and we will be able to refinance,” he explained.

    Orya emphasised that the facility is to encourage banks to lend by providing liquidity for them and to also enable them give the non oil facility at a moderated rate. He also said CBN and NEXIM would meet to finalise on the quantum of funds to be provided for the facilities and also the, modalities for the disbursement.

    To experts and stakeholders in the sector, the release of the guideline by the CBN about two weeks ago was a promise kept. Their expectation is that the funding, which is coming in the heat of the crisis in the oil market, requiring urgent rejuvenation of the non-oil export sector as wedge, would, among others, aid exporters to improve on quality standards, packaging issues, export productions and operational challenges.

    Failure by exporters to comply with specified standards is said to be responsible for mass rejection of non-oil exports from Nigeria at entry points in many countries in Europe. Non-oil products such as beans, sesame seeds, melon seeds, cocoa and cashew nuts are rejected in many other countries, not only in Europe, with the importing countries citing  exporters’ inability to adhere to global standards and poor packaging.

    Other issues usually cited by importing countries include high level of chemicals, poor labeling, insufficient information on nutritional content, and presence of high level of pesticide residue and presence of Mycotoxins.

    For instance, citing the presence of dichlorvos (pesticide) in dried beans imported from Nigeria, the European Union (EU), last week, extended its ban on the importation of dried beans from Nigeria by three years.

    Recall that that EU banned importation of Nigeria’s dried beans in June 2015 on ground that the produce contains high level of pesticide considered dangerous to human health. The EU hinted that it would lift the ban in June this month. Rather than do, it extended it by another three years.

    The extension of the ban, according to the Coordinating Director, Nigeria Agricultural Quarantine Service (NAQS), Dr Vincent Isegbe, came when the Federal Government and its agencies were working to ensure that the June dateline to lift the ban was met.

    He quoted the official journal of the EU of accusing Nigeria of not doing enough to lift the ban during the period of suspension “The continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria and maximum residue levels of pesticides shows that compliance with food law requirement as regards pesticide residual cannot be achieved in the short term.

    “The duration of the importation prohibition should therefore be extended for an additional period of three years to allow Nigeria implement the appropriate risk-management measure and provide required guarantees. The measures provided for in this regulation are in accordance with the opinion of the standing committee on Plants, Animals, Food and Feed,’’ Isegbe quoted the journal as saying.

    He, however, said the extension should serve as opportunity for stakeholders to put their hands together to correct the mistake. The consensus of experts is that this has indeed, become imperative since the non-oil sector is fundamental to economic diversification, rapid revenue base expansion, sustainable growth and employment generation.