The Nation Newspaper

Tag: low

  • Not really low

    Not really low

    • Rejection of govt houses by civil servants over high prices shows that ‘low cost’ is relative

    With a housing deficit of 28 million as at December, last year, one would expect that every house offered to Nigerians would be bought even before they are completed. But it is turning out that this is not so. In other words, it’s not just a question of making houses available but also ensuring that other factors are right. This is one recurring lesson from the housing projects embarked on by different administrations at the federal level.

    Housing is an essential human need. Yet, Nigeria has an acute deficit of it. Available data put Nigeria’s housing deficit at seven million units in 1991; 12 million in 2007; 14 million in 2010; 20 million in 2018 and 28 million in 2023. This was despite the goal of Housing for all by Year 2000 that the Shehu Shagari administration set in the 1980s.

    The Buhari administration, like others before it had its own idea of how to tackle the housing deficit. It established the National Housing Programme (NHP), domiciled in the Federal Ministry of Works and Housing, with the sole aim of delivering affordable houses to beneficiary civil servants.

    Contracts were awarded for the construction of different categories of housing units in 2016 to 542 contractors for a sum of N27.488 million per unit.

    About 2,864 of the 6,022 housing units billed for construction in 46 sites across the 36 states of the federation and the Federal Capital Territory (FCT), are said to have been completed according to ‘Daily Trust’ investigation. Others are reportedly at various stages of completion. President Buhari had at the groundbreaking ceremony of the civil servants housing estate in Apo Extension, Abuja, under the Federal Integrated Staff Housing (FISH) programme, promised to build 5,000 houses yearly in each state for public workers for three years.

    According Daily Trust, “These included one, two and three-bedroom bungalows in states in the North- East, North-West and North-Central; blocks of 16 and 24 flats (condominiums) of one, two and three-bedrooms and bungalows in the South-South, South- East and South-West and the FCT.”

    Unfortunately, most of the houses that are ready are facing rejection. The same fate awaits others under construction. Reason: exorbitant prices.

    This is different from the Shagari era when the projects were politicised such that most of the houses were sited on the outskirts of the towns and people lost interest in them. Although with hindsight, those who rejected the houses then made a big mistake because most of those places that were seen as rural or outskirts have now become parts of the towns where the houses were then located.

    But what we are witnessing is a new dimension whereby Nigerians, particularly civil servants for whom the Federal Government built many houses in different parts of the country cannot own them because of their exorbitant prices. This is despite the fact that the government has asked that the houses be sold at the prices fixed by the previous administration.

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    That the experience cuts across all the geopolitical regions in the country says a lot about the pretension in our salary structure. If government says it is building low cost houses, and minimum wage is about N30,000, how many years would it take those at this lowest rungs to save for homes of their own? Of course the argument could be made that not all Nigerians would be landlords and therefore, low cost houses (no matter how low) cannot be an all-comers’ affair, the point is that wages are generally poor along the ladder. As a matter of fact, if the issue is about people owning houses purchased from their salaries, many Nigerians who have houses today would not have had one. What with the present inflation that has driven the cost of building materials beyond the roof while salaries have largely remained the same.

    We need to rework wage structures in the country to reflect reality. What we have on ground is unsustainable. We need to review salaries the way we have done for judges if we want to check corruption. Even if there is a mortgage system in place, it would work better where people still have something to spare after meeting their immediate needs. Mortgage cannot thrive when people practically live from hand to mouth every month.

  • Low, middle income nations’ debts hit $7.1tr, says World Bank

    The total external debts of low- and middle-income countries rose 10 per cent in 2017 to $7.1 trillion. The rise represents about four per cent increase over the 2016 debt stock, the World Bank Group (WGB) said at the weekend.

    The WBG in its just published International Debt Statistics, IDA, 2019 report,  presented stats and analysis on the external debt and financial flows (debt and equity) for the world’s economies, including a comprehensive stock and flow data for individual countries and for regional and analytical groupings.

    The report indicated that net financial inflows (borrowing and equity) to low and middle-income countries rose 61 per cent in 2017 to the highest level in three years, driven by a rebound in net debt inflows.

    According to the report, net financial flows climbed to $1.1 trillion in 2017, a level last seen in 2013. The bank attributed the development to the rebound in aggregate net financial flows, driven by net borrowing which rose to $607 billion in 2017 from $181 billion in 2016, surpassing net equity inflows for the first time since 2013,   adding that a sharp rise in both long-term and short-term debt inflows contributed to the increase.

    It said foreign direct equity investment (FDI) inflows, long considered the most stable and resilient component of otherwise volatile financial flows, contracted for the second consecutive year, falling a further three per cent in 2017.

    However, the report indicated that in contrast, portfolio equity inflows rose to $57 billion, showing an increase of 29 per cent over 2016.

    In addition to the data published in multiple formats online, IDS includes a concise analysis of the global debt landscape, which will be expanded on in a series of Debt Bulletin over the next year.

    These data are produced as part of the World Bank’s own work to monitor the creditworthiness of its clients and are widely used by others for analytical and operational purposes.

    Recurrent debt crises, including the global financial crisis of 2008, highlight the importance of measuring and monitoring external debt stocks and flows, and managing them sustainably.

    The regional level trends in external debt in 2017 accumulation varied. Countries in sub-Saharan Africa accumulated external debt at a faster pace than low- and middle-income countries in other regions in 2017: the combined external debt stock rose 15.5 per cent from the previous year to $535 billion.

    Much of this increase was driven by a sharp rise in borrowing by two of the region’s largest economies, Nigeria and South Africa, where the external debt stock rose 29 per cent and 21 percent respectively.

  • Leadway presents low premium products for Nigerians’ daily need

    Leadway presents low premium products for Nigerians’ daily need

    The future of insurance industry lies in the retail market embedded in the grassroots. Despite the huge population the country is blessed with, low insurance penetration remains a major issue. The industry has been targeting the upper class, but the market now resides in the middle and the lower classes.

    This is why Leadway Assurance Co. Ltd designed tailor made and innovative products that can meet the daily needs of Nigerians. The company believes that this will go a long way in deepening insurance penetration. our visibility through effective use of technology.

      

    Our Products

    Hospital Cash: It is designed to provide daily financial benefits for hospitalisation arising from accidental injuries or illness of persons below the ages of 65 years. This plan can be accessed for as low as N500 premium per month.

    Home-Flexa: As the name implies, it’s a flexible insurance products that covers personal accident, property loss, property damage, private health plan and family benefit. This product is quite affordable especially for the low-income earners and with a monthly payment of N1, 074.00,  you can claim up to N220,000 benefits within the policy period.

    Motor insurance (Leadway Auto Plan): This is a motor plan which offers coverage against loss or damage to vehicles as well as damage to third party vehicles, properties and injury or death as a result of an accident involving the insured vehicle(s). There are different plans, which includes Silver, Gold and Platinum covers.

    Leadway BOSS (L-BOSS): This is a  product that protects small and medium-size business against various risks like material damage to business, burglary, employee medical expenses in one single plan; for a premium as low as N92,750 depending on the plan chosen. Nonetheless, flexible premium is allowed i.e. it can be paid annually, semi-annually, quarterly or monthly.

    L-Happy: This product protects all your assets including your household members against the risks of fire, theft, personal accident, medical expense etc. on your assets such as; Household building and/or contents, Motor, Personal Accident and Legal Occupier’s liability. It comes in Basic, Bronze, Silver, Gold and Platinum Plan covers with annual limit coverage up to N55 million. Premium can be paid annually, semi-annually, quarterly or monthly basis.

     

    Brief history of Leadway Incorporation

    Leadway Assurance Company Limited was incorporated as a limited liability company in 1970 and started business operation in 1971.  The company’s business operation started  in Kaduna from where it spread to other parts of the federation.  At present, Leadway has over 24 Branch Offices with Kaduna serving as the Registered Office and Lagos, the Corporate Office.

     

    The Founder

    The Founder, Sir (Dr.) Hassan Olusola Odukale’s vision was to build an insurance company that will serve the interest of insureds; responding to losses promptly and able to compete with other international insurers.  This vision was driven by a team that included some of its past chairman Alhaji Hassan Hadejia (immediate Past Chairman) Alhaji Mohammed Faruku and Pastor Jaiyeola Oni (former General Manager).

    Sir (Dr) Hassan O. Odukale insurance business started as an agency representing the interests of Royal Exchange Assurance Nigeria in the northern part of Nigeria. It later transformed to Gaskiya Insurance Brokers before it was re-registered as Leadway Assurance Company Limited.  During this time, Sir Odukale knew little or nothing about the sector. However, by dint of hard work, confidence and honesty Sir Odukale and his partners were able to build a business that has successfully outlived them. The highly honoured insurance practitioner passed on in 1999.  He was a Fellow of Chartered Insurance Institute of Nigeria (1995) and a Paul Harris Fellow.

     

    Business Operations

    At the beginning, the company had to survive on the goodwill of many companies including Northern Nigerian Development Company (NNDC), which gave it rent relief and Bank of the North. The Founder, Sir. Odukale also mortgaged his house to raise the N50,000 statutory deposit to Central Bank of Nigeria, (CBN).

    One of the major factors that kept Leadway afloat over the years was that Sir Odukale and his successors strategically, shifted the focus of the business from traditional motor and life business to achieve stability and phenomenon growth in other allied insurance businesses, even though motor and Life insurance still constitute a big chunk of its business.

    In late seventies the company started operating in Lagos market. The big break from a traditional retail underwriting business to the big corporate underwriter came in the eighties when it started working with brokers. The big break for Leadway was in 1982, when a Broker gave the company the opportunity to participate in the underwriting of some marine insurance businesses. However, one of these policies resulted in a claim of about $1 million.  To the surprise of industry watchers, the claim was promptly paid up. The success of this claim opened a new vista of opportunities for Leadway and drastically changed its business operations as it was able to penetrate into corporate organisations and the lucrative Lagos market.

    Leadership Change

    In 1994, there was a changed in the mantle of Leadership.  Mr. Oye Hassan- Odukale, became the MD/CEO and in less than 10 years, the company was repositioned to an enviable height through the discovery of other sources of investments outside the insurance sector. These includes investment in quoted government bonds, public and private companies.

     

    Financial

    Following the wise investment strategies, the company has always witnessed a steady growth.  For instance, the Net Premium Written grew from  N2.4 billion in 2003 to N3.3 billion in 2004, N3.9 billion (2005) and N4.9 billion in 2006.  Likewise, Profits after Tax over the same period moved from N306 million to N520 million in 2006. The Assets Base also witnessed a tremendous growth. From the N5.9 billion mark in 2003 to N16.4 billion in 2006. The company in the 2016 financial year paid N23.06 billion claims to Nigerians.

     

    Recapitalisation

    The company’s recapitalisation exercise did not impose any major threat to the company.  As at 31st December 2006, the company’s Shareholders’ funds was N9.4 billion.  This amount was internally generated through shareholders. The company’s attraction as a good investment was not limited to Nigerians, as International Finance Corporation (IFC) is currently an institutional investor ($13.2 million) in the company. As at 31st December 2012, shareholders fund stands at N11.7billion.

  • Financing low carbon solutions for power sector

    SIR: Financing low carbon solutions for the power sector is basically about making resources available in the power sector for projects with minimum carbon emission. The idea is to prioritize these projects at the expense of projects that emit so much carbon and hurt the environment. There are different financing options that are available to finance these low carbon projects. A very relevant financing option is the recently launched Nigerian Green Bond. The projects that should benefit from the issuance of the Nigerian Green Bond are projects that fit into the low carbon target of energy efficiency, work towards off grid solar energy and work towards ending gas flaring. Such projects should create jobs, be cost effective and make reasonable returns on investment as well as have great climate change mitigation potential.

    Any project that does not fit into these criteria should not be funded by the Green Bond. Also, the reporting of the project implementation must show energy savings, carbon emission reductions, renewable energy productions, etc. Clearly, the Green Bond provides good opportunity for funding renewable energy and mainstreaming low carbon budget framework. Also, the Federal Ministry of Power should consider tapping into international climate finance mechanisms. These climate finance mechanisms are strictly for low carbon projects. Capacity building is imperative for building the critical skills needed to access these funds. The financing mechanisms include the Green Climate Fund, Clean Technology Fund, Special Climate Change Fund, International Climate Fund, etc. A combination of Green Bonds, Climate Finance Mechanisms and other funding windows can be used to convert Single Cycle Gas Turbines (SCGT) to Combine Cycle Gas Turbines (CCGT) for greater efficiency and reduction of carbon emissions.

    One major financing challenge of the power sector is the fact that the federal government still retains ownership of transmission facilities through the Transmission Company of Nigeria. The government must either invest heavily or let go of its ownership of transmission facilities. The grid collapses after about 5,500 Megawatts which is not up to one-third of the energy demand of Nigerians. The federal government seems not to have the resources to invest for the needed improvement of transmission facilities. It must invite the private sector to invest in transmission or come up with alternative funding sources that still retains transmission in its custody.

    Fixing the financial challenges of the power sector will free up some resources which will then be used to address low carbon concerns.

     

    • Martins Eke,

     Centre for Social Justice, Abuja.

     

     

  • How to survive low oil price regime, by Shell chief

    How to survive low oil price regime, by Shell chief

    •Oil, gas still largely needed in future energy mix 

    In challenging periods in the oil gas industry such as currently being witnessed with prices remaining low for about three consecutive years, operators have to either find ways to substantially cut cost of operation to remain in business or sink.

    This was the advice given by the President /Director General & Country Chair, Shell Gabon, Osa Igiehon, to oil and gas industry operators. He spoke at one of the panel sessions at the just concluded 2017 annual conference of Society of Petroleum Engineers (SPE) Nigeria Council held in Lagos.

    Igiehon in his presentation entitled: Riding the waves of boom and bust: Common objectives, diverse perspectives, which is SPE’s 2017 theme, said the global oil industry has seen several booms and busts but noted that winners in such situations will be “those who can evolve and maintain structurally lower cost operations and projects.

    He said: “Historical oil price from inception, has shown a recurring cycle of boom and busts, which were driven by geopolitics, demand and supply balance and technological innovation. From 1980-2000s, we have seen boom and bust largely driven by geopolitics, demand/supply balance and technology.

    “Winners will be those who can evolve and maintain structurally lower cost operations and asset management, develop and invest in competitive capital investment and projects, supply chain improvements and process decomplexification and provide policies, operating environment and agreements to enable structurally lower costs,” he said.

    He also stated that there is need for increase in-country processing and value add, whilst driving for domestic energy security, therefore, industry stakeholders should “begin thinking energy, not just oil.””

    According to him, periods of high oil price regime record increased revenue and lead to more investments and new projects but noted that higher prices curb demand growth. Therefore, due to excess supply by producers that want to  optimise higher price benefits, prices crash and industry contracts, he added.

    During lower prices regime, although there is under-investment with major projects deferred or cancelled, it stimulates demand, he said.

    Igiehon, however, stated that global energy demand will likely be almost 60 per cent higher in 2060 than today, with two billion vehicles on the road as against 800 million today. Renewable energy, he said, could triple by 2050, but we will still need large amounts of oil and gas to provide the full range of energy products we need due to growing population.

    To him, there is more demand for energy globally as the world’s population and living standards increase, adding that global population will increase from around 7.4 billion today to nearly 10 billion by 2050, with 67 per cent living in cities.

    On environment, Igiehon said mitigating climate change through net-zero emissions is a potentially achievable societal ambition.

  • Leah Abiara lies low

    Leah Abiara lies low

    Not a few people are wondering the whereabouts of Ibadan big girl, Leah Abiara. The youngest daughter of the General Evangelist of the Christ Apostolic Church (CAC) Worldwide, Prophet Samuel Kayode Abiara, has not been visible on the social scene for some time. The development might not be unconnected with the death, late last year, of her loving mother, Prophetess Christianah Aduke Abiara (nee Adasofunjo).

    The sudden demise of the matriarch of the Abiara family shocked everybody, but no one was affected as much as Leah who was known to be very close to her mother in spite of her (Leah’s) reputation as a lady about town, which was said to have distanced her from other family members.

    It will be recalled that Leah was a hot item whose daring exploits made the front pages of gossip tabloids in the ancient city of Ibadan. But since she tied the nuptial knot with Nero a few years back, she has been much quieter. She and her husband are said to have relocated to the US where they are living their lives in peace.

  • BEDC tackles low supply, estimated billing

    Benin Electricity Distribution Plc (BEDC) has resolved about 128,000 issues  on low supply and bill estimation, its Managing Director/Chief Executive Officer, Mrs. Funke Osibodu, has said.

    She made this known tduring the inauguration of the company’s Asaba Customer Complaints Forum Office in Delta State.

    She said the office opening would re-invigorate BEDC’s commitment to improve customer service standard in Delta, despite the challenges confronting distribution companies (DisCos).

    Among the challenges, she said, were low power generation to the grid, metering gaps, transmission limitations, low payment culture and vandalisation of power infrastructure.

    “The power sector is a value chain comprising generation, transmission, distribution and ultimately the customer utilisation. This implies a string of interdependency among the four tiers. While the customer is king, he must pay for services rendered to him to ensure that the entire value chain continues to provide good service,” she said.

    Mrs Osibodu, represented by the Executive Director, Commercial, Abu Ejoor, added that as part of efforts at resolving complaints on estimated billing and to assist customer self-manage and regulate their electricity consumption, BEDC has also introduced the billing calculator format.

    This, she explained, is for customers to estimate their billing from consumption, adding that with it customers could calculate the installed electrical load in their premises with available power supplied and use same to crosscheck the billing as well as manage the use of appliances that consume heavy load.

    The Commissioner, Consumer Affairs, Nigerian Electricity Regulatory Commission (NERC), Dr Moses Arigu, said the opening of the  Forum office could not have come at a better time when customers within the BEDC network were facing several challenges, including safety issues, disconnection of communities, and estimated billing issues.

    Arigu noted that though BEDC holds a 30 per cent deficit in metering, the implementation of its meter roll out plan with the performance agreement would inject an average of about 100,000 meters yearly over the next five years, thereby closing the gap in the next three years based on the roll out plan.

    He confirmed that the Commission has wound down the Credited Advance Payment for Metering Implementation (CAPMI) programme, assuring that efforts were being made to ensure that the pace of metering continues using other schemes currently being reviewed.

    He congratulated the newly appointed forum members, including Oghene-Ovie Ukochovwera representing Nigeria Society of Engineers (NSE), Abraham Ifode from Consumer Protection Council (CPC), Mr. Solomon Ejenavi Akperiojire from the Manufacturers Association of Nigeria (MAN), Mr. Peter Okolie of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Mr. Ugochukwu Santino Ozah from the non-governmental organisation (NGO) sub -sector. He asked them to approach their tasks with equity and patriotism.

    Delta State Commissioner for Energy, Newworld Safugha, who represented the Delta State Governor, Dr Ifeanyi Okowa and Senator James Manager, Chairman, Senate Committee on Solid Minerals, said the danger of illegal connections and overbilling were of concern to the government, urging the forum to address them.

  • Low traffic as airfare increases by 20%

    • Aero yet to resume flights in Abuja

    The usual heavy passengers traffic associated with Yuletide at the Nnamdi Azikiwe International Airport, Abuja, yesterday was not there due to the recession and hike in fares.

    Checks with various airlines showed that most flights were not fully booked, while the prices of tickets had been increased across all destinations.

    Station Manager, Azman Air, MrAbdullahi Saroke, said the traffic was low compared to the previous year, attributing the situation to the economic recession.

    He told the News Agency of Nigeria (NAN) that many airlines were not fully booked as against the usual rush that was associated with festive periods, adding that the airlines were struggling to survive the hardship.

    He also said there was about 20 per cent hike in air fares.

    “The traffic is very low compared to last year, because the country is in recession and you don’t expect people to fly by air that much in a country that is in recession.

    “Despite the fact that our roads are not too motorable, people have decided to stay away from the airports.

  • Senate Committee scores power firms low

    Senate Committee scores power firms low

    The Senate Committee on Privatisation has scored some  privatised electricity companies low, saying they lack good service delivery.

    It, however  praised  the Benin Electricity Distribution PLC (BEDC) for doing well, stating that, it has introduced “innovative measures” to meet customers’ obligations.

    Speaking when the committee and a team from the Bureau of Public Enterprises visited BEDC, the panel chairman, Senator Ben Murray-Bruce, said: “Some of the privatised companies are well-run, some average, while some are badly run, but with what we’ve seen so far, about BEDC, I congratulate your management for being one of the well-run companies.”

    Murray-Bruce said the Mrs Funke Osibodu-led BEDC management had done well in community relations, payment platforms and customer services, despite the sector’s challenges.

    “We have seen the excitement of staff at the training programmes of BEDC, an enabling environment and air of camaraderie among management staff, which we have not seen in other places. This shows that the company is well-run, and we do not expect anything less than this, given the pedigree and antecedent of Mrs Osibodu,’’ he added.

    Bruce said the sector was battling with a N900billion debt, high foreign exchange and recession.

    He said he was concerned with how to solve the problems, adding that the committee would organise a public hearing on privatisation of the power sector, to address the problems.

    Mrs. Osibodu  urged the committee to persuade the Federal Government to dollarise the naira price for gas; which is the raw material for electricity production. The government should also take a cue from its Indian counterpart by subsidising  tariff for lower class residential customers.

  • Rilwan Aleshinloye lies low

    T‎HERE is time for everything, goes the age-long aphorism. For popular socialite, Rilwan Aleshinloye, the time appears to have come to retire from the limelight. Alesh Rilwan, as he is fondly called, has virtually from the social scene since his marriage with gold merchant Sade Alesh crumbled. While Sade has since found her way into the arms of another lover, Rilwan seems to have forsaken both the trappings of love and the allure of the klieg lights.

    But those who should know insist that handsome Rilwan has not totally forsaken the social scene. They maintained that while he is no longer as prominent as he was in the 90s, especially in Lagos where he used to spray musicians with money, the owner of Alesh Hotels, Ajah still makes appearances from time to time.

    Some claim to have sighted him at meetings of the All Progressives Congress in Lagos, even though he prefers to sit on the back bench. He is also said to have maintained his support for the fuji music