The Nation Newspaper

Tag: Nigerian Newspaper

  • Good for federalism

    That the Lagos and Ogun state governments have applied to take over the management of the Lagos-Ota-Abeokuta Expressway, the Ikorodu-Sagamu Road and the Ijebu Ode-Epe Road, has thrilled not a few. It is even more cheery that the Federal Government has, in principle, agreed to the hand-over.

    There is something fundamentally awry with the present structure of road ownership and maintenance. The idea of “federal roads” in states ought to be urgently revisited. The ultimate goal would be the full federalisation of roads. If that happens, every state would take total control of every road in its territory.

    But going with that will need fiscal tinkering: to move matching cash to states for their new road responsibilities, away from the soggy Federal Government purse. Still, that is in the short run. In the long run of full re-federalisation (or to use the popular term, “restructuring”), the states that milk their resources and just pay the central government its share in taxes and royalties, will fully budget for the construction and maintenance of these roads, without any Federal Government involvement. That would be the ultimate.

    But to the present Lagos-Ogun proposal. Dapo Abiodun, governor of Ogun State, speaking at his investiture as honorary patron of the Abeokuta Club, explained the joint Lagos-Ogun take-over bid of, for instance, the Lagos-Ota-Abeokuta Road. He said the last contract for that road’s reconstruction was in 2001. A N26 billion debt reportedly still hangs on the road. Yet, N1 billion is voted to maintain the road every year.

    Given the math therefore, by dwindling resources across the board, it’s almost sure the road won’t be completed. Hence, he further explained, the Public sector-Private sector-Participation (PPP) decision, by which the two states would permit private sector players to rebuild the roads and toll them to recoup their investment.

    Across the board, this would appear a very good decision. It is good the Federal Government has also given approval to embrace the move. The other two roads, the Ikorodu-Sagamu Road and the Ijebu Ode-Epe Road, which passes by Imagbon and Isiwo in Ogun State and links up with Mojoda in Lagos, were very vital – and busy – inter-state roads, before they were all abandoned for the Lagos-Ibadan Expressway. Even then, the poor maintenance of the Lagos-Ibadan Expressway, and its eventual decay, before its current reconstruction, made sure all these four roads practically collapsed.

    Rehabilitating these other three roads, therefore, makes a lot of sense, if the new-look Lagos-Ibadan Expressway, expected to be delivered by December 2020, is to last. If other state governors nationwide could embrace such strategic thinking on roads within their jurisdiction, fuelled by the best practices of regional cooperation and integration, the country would be far better off for it. Good thinking, it goes without saying, by the two governments.

    Still, the tolling aspect must be approached rather carefully, aside from the governments giving out more details. Does it mean the roads would be tolled for a period to enable the investors recoup their investment? Or would they be permanently tolled, for maintenance and maybe future reconstruction and expansion? All these details should be in the public space.

    Still, a final word: we wonder if this arrangement would have been possible, if the applying states come from a different party that controls the Federal Government. The answer is probably no – and that is where Nigerian politics trumps development or even common sense. That amounts to net regression, in the people’s welfare, instead of progress, the very reason for politics and governance.

    Let this, therefore, be the beginning of a convention in which mutual growth, progress and development prevail over temporary political gains. That would not only deepen governance, it would also deepen democracy, development and prosperity.

  • Bandits’ swap

    Two closely related events in Katsina State last week illustrate vividly the predicament of that government in the festering armed banditry that has reduced life to a miserable lot for many of its citizens.

    First, was the publication in many national newspapers and the social media of a group photograph in which Governor Aminu Masari posed with the leader of the so-called bandits clutching an AK-47 assault rifle. The picture which was taken after the governor ostensibly held an amnesty meeting with the bandits also featured an unarmed Nigerian Army officer among other personalities.

    This was followed a few days later by an announcement from Masari of the swapping of six arrested bandits for 20 kidnapped citizens of the state in the detention cells of the gang. By the terms of the agreement, the bandits are to throw open farmlands with a promise not to harass or attack farmers and guarantee women unfettered access to markets to sell their dairy products. Masari rationalized the deal as part of on-going dialogue and negotiations between the state government and commanders of the various bandits’ groups terrorizing citizens in eight frontline local government areas of the state.

    There is the temptation to sympathize with the decision of the Katsina State government to swap six arrested bandits for 20 of its citizens kidnapped by the murderous group. The plight of the innocent citizens must have moved the state government into accepting the arrangement at least, to mitigate their sufferings. This is especially so, given the inability of the law enforcement agencies to get an enduring handle to armed banditry that has reduced life in parts of that state to a verity of the state of nature.

    By the calculations of that government, the exchange will ensure sustainable peace in the affected communities that have been held prostrate by the unending devious escapades of the bandits. If the swap succeeds in reining in the bandits, Katsina State would have recorded a great feat in successfully taming the monster. We may have to live with this optimism at least for now.

    Yet, it remains largely probable that bandits’ swap is all that is required to comprehensively and realistically identify and address both the immediate and remote causes of the recurring insurgency of that group. Even then, from the attestations of the state government, what the exchange is meant to achieve is largely of very limited value. All the same, it is good the so-called bandits’ commanders have pledged not to attack farmers and women going to the markets. They may also refrain from their regime of extortions and ancillary criminalities.

    If these happen, relative peace would have returned to that troubled state. That would be something to cheer. But this conclusion would amount to a very simplistic perspective of the matter. First, it is based on the underlying assumption that the commanders involved in the negotiations represent all the tendencies in the banditry business and that any agreement entered into with them would be binding on all. This may not be exactly so.

    There is also the other assumption that swapping the bandits for the kidnapped victims is all that is needed for the cessation of armed hostilities in that troubled state. It is unlikely to be so. There is the further presumption that the exchange and the promises extracted from the bandits’ leaders are the real issues to the reign of terror in the state. They are not the issues that gave rise to armed banditry in the first instance.  We may soon discover to our utter consternation that we have been treated to a public relations stunt that only scratched the surface of the matter.

    If anything, our experience in negotiations with the Boko Haram insurgents does not imbue much confidence that the Katsina bandits’ swap would immediately herald an end to armed banditry in that state. We are all living witnesses to the devious and whimsical conduct of Shuibu Moni, one of the five Boko Haram commanders freed in the swap that lead to the freeing of 82 Chibok Girls.

    After his release in which Wall Street Journal reported two million British pounds exchanged hands, Moni soon made his way back into Sambisa forest from where he issued new threats against the government. In a video footage, Moni and members of his team displayed awesome military might insisting that they remained very firm in that forest contrary to claims by the government.

    If the conduct of Moni and his team could be dismissed for any reason, the fact that Boko Haram insurgency has persisted years after that deal facilitated by the Swiss government cannot give much hope that the Katsina experiment will bring to a conclusive end armed banditry in that region. The state government will have to contend with the propriety of freeing and granting amnesty to bandits some of whom we have been told are foreign nationals. It would appear, we are yet to understand all there is to the insurgency of the bandits.

    More seriously, it made a mockery of the nation’s security architecture that a so-called armed bandit was allowed to enter the negotiation table with Governor Masari and his team and they saw nothing untoward in posing in a group picture with him in the manner it was published. It speaks volumes on the double standards that characterize the enforcement of the ban on such weapons. And if one may ask, what message was that photograph meant to serve?

    Without prejudice to the rights of the Katsina State government to find local solutions to the festering law of the jungle; bandits’ swap being limited in nature, is severely impaired in offering enduring therapy to all there is to that malfeasance. This is so because the state government is just targeting the manifestations of banditry rather than the conditions that nurture and sustain such activities.

    It does appear serious efforts are yet to be deployed in identifying the core of the banditry that has held parts of the northwest on the ground for some years now. Even then, discordant views from government circles do not seem to help matters. Nobody seems to know for certain, the real causes of armed banditry for which Zamfara and Katsina states have carved unenviable notoriety in.

    In the absence of concrete efforts to get at the root of the matter, various theories were bandied at different times to account for the phenomenon. Initially, cattle rustling was said to be at issue. That speculation faded away when bandits began to raid villages, killing innocent people and looting their properties. There was also the narrative of infiltration by foreign nationals; effects of climate change and the decrease in arable lands as contributory factors.  The federal government introduced another dimension to the Zamfara banditry when it claimed that illegal mining of gold was at the center of it all. It went ahead to ban all mining activities in that state on the grounds that a link existed between mining activities and banditry in that state. There is also the economic condition that force people into one form of criminality or the other.

    The Chief of Army Staff, Lt-Gen. Tukur Buratai upped the ante when he added partisan political dimension to the lingering banditry. He had said: “There are myriads of security challenges we are facing right now in the north-west, north-central and other part of the country. I want to believe and rightly so, that with the fallout of the just concluded general elections, there are politicians who saw their defeat as a means of revenge, sponsoring these criminal activities and even banditry and clashes between farmers and herders”.

    From the foregoing, it is obvious that there is yet any consensus on the factors or a combination of them that are at the root of the festering armed banditry in parts of the country. And in the absence of such consensus, evolving durable therapies would at best, remain a tall order. And that exposes the limitations of the measures taken by Katsina State to address armed banditry.

    It remains to be conjectured how bandits’ swap could possibly address all the complex issues associated with such uprisings. The government must first undertake a critical appraisal of all the factors that predispose people in the affected states to armed banditry. It is after such assessment that it will be in a better stead to evolve lasting solutions to the problem. Anything to the contrary will at best, remain cosmetic.

    But utmost caution must be exercised in the way the bandits are handled; else we may have Frankenstein monsters to contend with sooner or later. The Boko Haram insurgency offers a lesson to all.

  • Unconscionable profit

    The shareholders and managements of the top five banks in Nigeria have cause to smile, considering the significant return on investment in the banks’ first half year reports. The top five earned N416.55 billion in profits, within the period, arising from improved technology and enhanced efficiency. They witnessed a marginal increase in profitability from 33.35 per cent to 34.14 per cent. It is expected that the shareholders will get an interim cash dividend for the period, ranging from 20k to N1.00.

    The top five banks, by capitalisation, also known as Tier-1 banks, are Guaranty Trust Bank (GTB) Plc, Zenith Bank International Plc, Stanbic IBTC Holdings Plc, Access Bank Plc and United Bank for Africa (UBA) Plc. Their first half result showed their total gross earnings rose by 9.79 per cent, from N1.17 trillion in 2018 to N1.29 trillion in 2019, and total pre-tax profit grew from N371.66 last year, to N416.55 billion this year. Total net profit moved from N303.8 billion to N343.96 billion, and average gross earnings within the top five, from N234.79 billion in 2018 to N257.77 in 2019.

    While we felicitate with the banks for their profitability, we are worried that some of the profit were distilled from the blood of their employees. We wonder how the banks could be so profitable, yet their owners exploit their workforce who sweat out this profit. As we have argued here severally, it is the height of impunity that banks employ highly educated young Nigerians to do full time job, and yet treat them as casual staff.

    In what may amount to unlawful employment tactics, most top officials of banks in Nigeria use surrogate companies to subjugate graduate trainees to harsh employment conditions. Yet, the bank executives take home humongous emoluments. This is unconscionable. What we are saying is that while they should seek to be profitable, in other to attract more investors, the banks must also operate as ethically biased institutions. Again, the banks must seek to add more value to the economy, by lending more to the real sector. Such disposition will benefit them more, in the long run.

    We are worried that most of the banks in Nigeria make their profits from short term lending, and trading in treasury bills and foreign exchange, living the real sector to suffer. For instance, in a country as huge as Nigeria, it is strange that banks do not offer real mortgage banking services. What abound mainly is short term lending, dubiously termed mortgage banking service. Again, while manufacturers struggle to get access to credit facilities, importers of finished items have easy access to funds.

    The result is that while banks make huge profits, the real sector of the economy, which is the foundation on which the whole national economy rests, limps. Expectedly, when the national economy quakes, some of the banks go under. Unfortunately, our country has witnessed a lot of such distress in the banking sector. So, there is the need for a paradigm shift for banks, from concentrating on easy profits to investing in the substratum of the national economy, for long term survival of all and sundry.

    Of note, while we expect the banks to rejig their lending priorities and ensure equal pay for equal work, by abolishing casual staff, we appreciate the difficult environment in which they operate. Some of the challenges that make it unattractive to lend to the real sector, like incessant changes in policies, excessive taxation, absence of credible data, and similar hazards, are in the control of state institutions. So, while we encourage the banks to contribute to the growth of the economy, government institutions must provide the enabling environment for private enterprises to flourish.

  • Investors upbeat as equities rally N316b gains

    Investors showed improved appetite for Nigerian equities in the immediate past week as attractive valuations, reduced political risk and improved macroeconomic direction spurred a broad-based bargain-hunting for quoted shares.

    Benchmark indices for the Nigerian equities market showed average gain of 2.33 per cent at the weekend, equivalent to net capital gains of N307.7 billion for the week. However, the listing of additional shares by Stanbic IBTC Holdings lifted the total increase in market value of quoted equities to N316 billion at the weekend.

    The sustained rally coincided with the Wednesday September 11, 2019’s decision of the Presidential Election Petition Tribunal affirming the election of President Muhammadu Buhari. Total market value of quoted equities rebounded with net gain of N52 billion on Wednesday, rose further by N141 billion on Thursday and capped the rally with a net gain of N172 billion on Friday.

    Many analysts had said investors might have interpreted the decision of the presidential election tribunal as a sign of stability that gives clearer direction of the macroeconomic direction, notwithstanding the discontent in the opposition camp and possible appeal to the Supreme Court.

    The rally, the highest in recent weeks, moderated the negative average year-to-date return to -11.62 per cent. On a quarterly basis, average return so far for the third quarter improved, though still negative, to -7.30 per cent. Meanwhile, the benchmark turned positive for August with a month-to-date return of 0.92 per cent.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), rose from its week’s opening index of 27,146.57 points to close weekend at 27,779.00 points. Aggregate market value of all quoted equities also rallied from its opening value of N13.207 trillion for the week to close weekend at N13.523 trillion.

    With 39 advancers to 19 decliners, most sectoral indices also closed positive underlining the broad bargain-hunting that drove the overall market performance. The NSE 30 Index, which tracks the 30 most capitalised stocks at the Nigerian Stock Exchange (NSE), rose by 2.72 per cent. The NSE Banking Index appreciated by 5.06 per cent. The NSE Consumer Goods Index rallied average gain of 0.57 per cent while the NSE Oil and Gas Index rose by 7.19 per cent. However, the NSE Industrial Goods Index declined by 0.41 per cent while the NSE Insurance Index dropped by 2.13 per cent.

    UACN Property Development Company, which is being unbundled by its parent company, UAC of Nigeria, led the rally with a double of its share price by 51.52 per cent to close weekend at N1.50 per share. FBN Holdings followed with a gain of 24.1 per cent to close at N5.40. Seplat Petroleum Development Company placed third with a gain of 15.67 per cent to close at N460. Forte Oil appreciated by 14.1 per cent to close at N16.55. Ecobank Transnational Incorporated rallied by 11.9 per cent to close at N8 while Cornerstone Insurance rose by 11.1 per cent to close at 30 kobo per share.

    On the negative side, Thomas Wyatt Nigeria recorded the highest loss of 9.52 per cent to close at 38 kobo. Continental Reinsurance followed with a drop of 7.98 per cent to close at N1.50. Oando dropped by 7.3 per cent to close at N3.80. Livestock Feeds declined by 7.1 per cent to close at 39 kobo while Cutix depreciated by 6.67 per cent to N1.40 per share.

    The momentum of activities also improved considerably. Total turnover stood at 1.15 billion shares worth N14.08 billion in 17,980 deals compared with a total of 1.10 billion shares valued at N17.08 billion traded in 15,431 deals in the previous week.

    The financial services sector, traditionally the most active, remained atop activities chart with 840.704 million shares valued at N10.765 billion in 11,331 deals, representing 73.30 per cent and 76.45 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 111.231 million shares worth N243.124 million in 963 deals while the information and communication technology (ICT) sector occupied a distant third with a turnover of 95.087 million shares worth N605.135 million in 404 deals.

    Banking stocks dominated activities’ chart with the trio of Guaranty Trust Bank, Access Bank and FBN Holdings accounting for 484.003 million shares worth N8.306 billion in 4,265 deals, representing 42.20 per cent and 58.99 per cent of the total equity turnover volume and value respectively.

    Besides equities, a total of  6,540 units of Exchange Traded Products valued at N23,650 were also traded in five deals last week compared with a total of 3,692 units valued at N1.974 million traded in 10 deals two weeks ago.

    On the sovereign bond market, a total of 274 units of Federal Government bonds valued at N280,932 were traded in seven deals compared with a total of 47,690 units valued at N51.008 million traded in 15 deals penultimate week.

    Beyond Nigeria, investors’ sentiment for quoted equities appeared to improve globally last week with most global markets closing positive. In the United States of America, the Dow Jones Industrial Average (DJIA), S & P 500 Index and NASDAQ Index appreciated by 1.4 per cent, 1.2 per cent and 1.1 per cent respectively. In United Kingdom, the UK FTSE ASI appreciated by 1.1 per cent. France’s CAC 40 Index rose by 1.0 per cent. Germany’s XETRA DAX Index rallied by 2.2 per cent. Hong Kong’s Hang Seng Index advanced by 2.5 per cent. Japan’s Nikkei 225 Index rose by 3.7 per cent. China’s Shanghai Composite Index appreciated by 1.1 per cent. Russia’s RTS Index rose by 1.6 per cent. India’s BSE Sens Index also rose by 1.1 per cent while Brazil’s Ibovespa Index posted average gain of 1.5 per cent.

    Major African markets also showed positive sentiment. South Africa’s FTSE/JSE Index posted a week-on-week gain of 2.8 per cent. Egypt’s EGX 30 Index indicated average gain of 1.2 per cent while Kenya’s NSE 20 Index appreciated by 0.9 per cent. However, Ghana’s GSE Composite Index dipped by 0.2 per cent.

    Analysts meanwhile remained cautious about the outlook for the Nigerian equities market, although improved macroeconomic direction is expected to impact the market positively.

    “Our view continues to favour cautious trading owing to the fact the gains recorded this week were not broad-based. Nonetheless, we note that valuations remain attractive while price deterioration has resulted in expected dividend yields on some stocks rising significantly to levels on par with yields on Treasury bills. Hence, we advise that long-term investors consider appropriately timed investments,” Cordros Securities stated.

    Most analysts believed the delivery of the presidential election judgement would spur government activities in the period ahead and provide additional impetus for market performance.

    Managing Director, APT Securities & Funds Limited, Mallam Kasimu Garba Kurfi, said the decision of the presidential election tribunal would provide a clearer direction for the market.

    “We are expecting positive response, especially in view of the early presentation of the underlying assets for the 2020 national budget,” Kurfi said.

    Chief Executive Officer, Sofunix Investment and Com

  • Black on black violence

    The world was jolted by ugly images coming from South Africa of horrendous acts of savagery of human beings dragged and slaughtered on the streets by lynch mobs under the watchful eye of the South Africa security forces who practically did nothing to rescue the victims.  The victims were mostly nationals of other African countries; notably, Nigerian, Zimbabweans, Zambians etc.  Their offences amongst others are that they are foreigners and they are either responsible for the high unemployment rates in South Africa or that they are taking up jobs meant for the locals.  Furthermore, the officials refrain was that most of the victims are illegal immigrants and drug dealers who feed the prostitution rings and other vices in South Africa.  One would have thought that there are laws for dealing with such things and not a resort to barbarism and jungle justice of primitive nature which reminds the world of what Africa has remained; savages.

    This is what has been described as Xenophobia or a xenophobic attack which has put South Africa on edge and indeed the countries of the victims in fear of reprisal attacks. Migration is a social phenomenon which is as old as recorded history and people have always crossed boundaries for adventures and of course in search of better live. The current trend of ultra nationalism and supremacists’ hatred towards foreigners across the world has made nonsense of the concept of globalization and the world gravitating towards a global village.

    We have different tribes and tongues in Africa but every African whether living in the continent or in Diaspora has a unique gene of a Negroid.  If you look deeply into any black man anywhere in the world, you are likely going to see your own image the artificial boundaries notwithstanding.

    The South African situation is a larger problem of what is playing out within the domestic national boundaries of each and every African country and Nigeria typifies that bad example.  It is a matter of time before the different ethnic nationalities in South African turn on one another when they are done with expelling their African brothers from other countries.  Like South Africa like Nigeria, at every little provocation, we find our political leaders making incendiary statements, giving evacuation orders for their kinsmen to return to their states or regions of origin; whether it is in Umuahia in Abia State, Kano, Kaduna, Lagos or Ibadan etc.

    What is happening is a product of tribal leaders who have taken over the political space in the cloak of national leadership.  These are the same religious bigots and ethnic irredentists who sustain themselves in power and relevance by appealing to their tribe.   Come to think of it, no Nigerian should be an unwanted or illegal immigrant anywhere in the world if we have got the right leadership.  In my small sojourn and travels, I am yet to see a country that  is as naturally endowed as Nigeria and I dare say by extension, no continent is as endowed as the continent of Africa; is it the wealth in the underbelly of the forest of the Congo, Angola, Ghana, South Sudan, all black African countries.

    I have listened to reactions to the attacks of our brothers and sisters and indeed the reprisal attack of South African business interests in parts of Nigeria.  It may have been quite unreflective of those behind it but it was a natural impulse that for every action, there must be a reaction.  The Nigeria Police Force unlike their South African counterparts reacted swiftly to arrest the situation and indeed, a life was lost in the process.  That life lost was a needless act of indiscretion for the police to use life bullet and shoot to kill in the circumstances.  The riot or protest would have been arrested without taking a life.

    What happened in South Africa is a big lesson to Nigeria, especially the political leadership which unfortunately has no philosophical depth to deal with harnessing our diversity for the development of our country.   Our leaders have used religion and ethnicity to deeply divide us that we use sacrilegious epithet to describe one another and show resentment to our unique ways of life.  This is the reason in different parts of Nigeria today, people prefer to live in different quarters rather than intermix.

    Nigeria’s diplomatic machinery appears too rusty to protect Nigerian citizens abroad.  Not much of diplomatic solutions would solve the problem as fresh attacks are just a matter of time.  Our leaders feed on the ignorance of the masses that they have pauperised and denied the basic necessities of life.  Our people are unemployed not because foreigners are in our countries but because our leaders do not have an idea of how to develop and grow our economies.  We are poor because our leaders and their minions fritter away our resources for their strange taste for exotic foreign food and ostentatious lifestyle.  We are poor because the civil servants do not know a jack about how to run the bureaucracies of the government but rather engage in trading and corrupt practices to the top.

    We are poor because the religious leaders exploit our helpless state and make us part with the little left for us to survive on.  The artificial boundaries are not our problem.  The anger and frustrations of the South African youths and indeed in Nigerian youths is misdirected.   Our revolt and protest should be against bad leadership whether it is in Nigeria or South Africa.  Migration is a reality of today’s world and we cannot make all Nigerians in Diaspora to return home.  Return home to what, uncertainty, unemployment, insecurity and disease?

    We have not sat down to review the foreign policy trust of our country which has been mainly Afrocentric.  To be able to defend the lives of Nigerians outside our shores, the lives of Nigerians within our territorial borders and boundaries should matter.  We have not been able to rescue the poor Chibok school girls to date.  Leah Sharibu remains in captivity after the Dapchi raid by the Boko Haram terrorists.  We are busy today, negotiating and posing for photo shops with criminals and bandits in trade-off in spite of the huge investment in security.

    People are paying protection fees to kidnappers and armed robbers and security men have been involved in channelling the ransom money to these criminals while government lies about such payments.   In the midst of the security chaos, the president and his handlers have gone to sleep not being able to summon the will to re-jig the security architecture and as a first step, sack the service chiefs.  The president is misinformed to believe that security is politicised; this may not be entirely correct; and what if it is?  After four long years, fatigue has set in, and the institutions should have a new breath.  I hear the president plans a state visit to South Africa next month.  Such a visit is not only ill-advised but of no diplomatic relevance other than to belittle the image and reputation of our country; that is, if we have been able to make any such impression with the lacklustre leadership that has bedevilled our country.  President Donald Trump of the United States of America just cancelled a scheduled meeting with the Talibans because one American soldier was killed in Afghanistan.  He has just sacked John Bolton, the National Security Adviser.

    If we carry ourselves with dignity, countries of the world would defer to us and respect our nationals wherever they are in the globe. With mediocre leadership, no country will tolerate Nigerian citizens; it would be a wishful thinking.

     

    • Kebonkwu Esq writes from Abuja.

  • NSIA Insurance announces ISO 9001:2015 recertification

    NSIA Insurance has announced the successful completion of its 2019 ISO Surveillance Audit by the Standards Organisation of Nigeria (SON).

    Head of Internal Audit and Quality Coordinator at NSIA Insurance, Udo Okeke in her statement to reporters, said this year’s surveillance audit was conducted in the month of May across five of the 10 NSIA Insurance locations within the country.

    According to her, due to the consistency in compliance to the ISO Standards and the excellent quality of service provided to clients in the locations visited, the company and all its branches were recommended for continued certification.

    She stated that the company was awarded the ISO 9001:2015 Quality Management System Certification in May 2018.

    She said: “This certification was achieved due to the successful implementation of the Quality Management System and priority for customer satisfaction. This has ensured that all processes within the organisation are standardised to meet best practices.

    “It is worthy to note that this certification aligns with NSIA Insurance’s drive for excellence.  This is an exciting milestone for us as it speaks to one of our core values – Professionalism. We are optimistic that this recertification will improve client satisfaction and perception of our business by stakeholders”.

    ISO 9001:2015 is the latest and most advanced International Standard for Quality Management Systems. The prompt adoption of this standard by NSIA Insurance lends credence to their commitment to quality in all of their business processes and products.

    NSIA Insurance is a first class composite insurance company driven by integrity, care, innovation and professionalism with its head office in Lagos, strong regional presence in Abuja and a large network in strategic states across the country. NSIA Insurance offers a wide range of insurance services at competitive rates to meet the changing financial, investment and lifestyle needs of its corporate, commercial and individual customers.

  • PenCom fines defaulting employers N7.79b

    The National Pension Commission (PenCom) has collected N7.79 billion from employers that defaulted in remitting pension contribtutions deducted from their employees’ Retirement Savings Account (RSAs).

    The cash which is the total recoveries made from inception of the Contributory Pension Scheme (CPS)  to date, represents two per cent interest of the amount deducted and not remitted by the employers as and when due.

    Accordingly, total recoveries made from inception to date amounted to N16.01 billion, comprising principal contributions of N8.22 billion and penalty N7.79 billion.

    The cash, according to a PenCom report titled: Second Quarter 2019: Update on the Recovery of Outstanding Pension Contributions and Interest Penalty from Defaulting Employers, has since been credited to the respective pension accounts (Retirement Savings Accounts) of the affected employees.

    The Pension Reform Act (PRA) 2004 as repealed by the PRA 2014 states that an employer is under obligation to remit pension contributions to pension fund custodians within seven days after payment of salaries.

    Otherwise, in addition to making the remittance, the employer shall be liable to a penalty which shall not be less than two per cent of the total contributions that remain unpaid for each month or part of each month that the default continues. According to PenCom, 37 employers paid N110 million penalty in the second quarter (Q2) of this year.

    “The Commission maintained the services of Recovery Agents (RAs) for the recovery of outstanding pension contributions and penalty from defaulting employers. The RAs were mandated to review the pension records of the employers assigned by the Commission with a view to recovering outstanding pension contributions with penalty. During the quarter, demand notices were issued to 37 defaulting employers whose pension liabilities had been established by the RAs, which resulted in the remittance of outstanding pension contributions of N260.62 million, representing principal contributions of N151.59 million and penalty of N109.64 million.”

    The Commission said it embarked on public awareness for the organised private sector in collaboration with Ministries, Departments and Agencies (MDAs).

    “Further to the Commission’s strategy of driving compliance with the provisions of the PRA 2014 by employers through the conduct of public awareness programmes, the Commission has continued to organise sensitisation workshops on the CPS for employers’ associations/unions to enlighten and encourage them to key into the Scheme.

    “The Commission in collaboration with the Nigeria Employers’ Consultative Association (NECA) conducted an interactive session on the current developments and challenges in the implementation of the Pension Reform Act 2014 for the organised private sector in Lagos, Port Harcourt, Abuja and Kano,” the report added.

  • VAT increase to generate additional N479.7b revenues

    The proposed 7.2 per cent Value Added Tax (VAT) proposal by the Federal Executive Council (FEC) is expected to generate additional N479.7 billion in revenues based on the N1.1 trillion collected in 2018, analysts at Afrinvest West Africa, have said.

    They explained that based on the sharing formula, the Federal Government is to receive additional N72 billion (15 per cent), states to receive N239.8 billion (50 per cent) and local governments to get N167.9 billion (35 per cent) upon implementation.

    “While the states would receive a significant boost, the increase is unlikely to make a dent on Federal Govern-ment’s fiscal deficit which we estimate at N3.4 trillion in 2019. We believe the Federal Government requires a significant revenue boost, which would come elsewhere. Our analysis shows that removing petrol subsidies and adopting a market reflective exchange rate of N360/$1 for the computation of oil receipts would increase Federal Government’s revenue by N880 billion,” they said.

    They added that the new VAT rate will also help government in the payment of the N30,000 per month minimum wage for workers.

    The Federal Executive Council (FEC) recently approved an increase in the Value Added Tax (VAT) rate to 7.2 per cent from the initial five per cent established since January 1, 1994.

    The analysts said the timeline for the implementation of the new rate is unclear, but the Minister of Finance, Budget and National Planning hinted at 2020. As there are plans for wide consultation and amendment to the existing VAT Act, implementation may take longer than expected.

    They said the increase in VAT rate is  not surprising as governments have been keen but civil protests have led to reluctance despite Nigeria’s low VAT rate relative to peer economies.

    “Nigeria’s VAT rate at five per cent is the lowest among African peers such as Kenya (16 per cent), South Africa (15 per cent), Egypt (14 per cent) and Ghana (12.5 per cent). Similarly, VAT receipts to Gross Domestic Product (GDP) is only 0.9 per cent of GDP compared with three per cent in Ecowas and Commonwealth countries according to PwC. We note that Nigeria’s effective VAT rate is believed to be significantly higher than the current five per cent due to the difficulty in claiming refunds, the high cost of compliance and non-allowable expenses for input VAT purposes,” the report said.

    While we align with the age-long call to boost non-oil revenue, we believe the Federal Government has chosen an easy but less impactful route with the proposed increment in VAT. “The increase should be part of a comprehensive fiscal reform package that would seek to boost collection efficiency, rein in recurrent spending, remove subsidies and widen the tax net,” they added.

    According to the former minister of finance, Kemi Adeosun, Lagos and Abuja account for 55 per cent and 20 per cent of VAT revenues respectively, meaning more pressure on consumers in both cities. We suspect that this is due to the large size of the informal economy which governments have been unable to integrate with the formal economy due to issues such as multiplicity of taxes. In the broader economy, we expect the adjustment to VAT to lead to higher consumer prices and in turn inflation. The attendant weakness to consumer spending would also impact growth negatively.

  • PZ Cussons makes case for resilient digital system

    British manufacturer of personal healthcare products and consumer goods PZ Cusson  at the weekend, said it has a strong digital system that is able to detect any fraudulent act on its social media handles.

    Speaking at a press parley to unveil Cussons Baby Moment competition, its Marketing Head, Charles Nnochiri, said the competition has a solid terms and conditions  (T&C) that are to be stictly adhered to by all participants.

    The star winner goes home with N1miilion;  first runner up gets N750,000 while second runner up gets N500, 000.  Others will go home with the PZ Cusson Baby gift pack,

    He said: “There is a solid terms and conditions for being part of this competition and we have seen in the last five years that some people will illegally want to sum up their points and those with very good Information technology skills will  try to do that. So we are ready as we have a very strong firewall from our digital team. So if any one goes against the T&Cs, the participant will be disqualified. We would make sure that anyone who emerges the winner will really be worth it. It’s a competition for the family but the babies are the major participants and both parents must give their consents.”

    Its Brand Development and Activation Manager, Oluwabusayo John,  the competition which started five yeas ago  commenced September 13 and is only opened for kids between the ages of zero and two years.

     

     

  • How fake, substandard goods stall growth, efficiency

    Nigeria is a dumping ground for all manner of goods because of poor monitoring by regulatory agencies and porous borders. Government agencies set up to check the influx of fake and sub-standard products grapple with weak regulatory environment and dearth of infrastructure. Analysts have put the percentage of fake products in the country at 40 per cent, noting that the building and housing sector seem the worst hit. They attribute building collapse, fire and other incidences in homes and offices to fake and substandard products. OKWY IROEGBU-CHIKEZIE reports

    The Standards Organisation of Nigeria (SON) is the Federal Government’s agency vested with the responsibility of standardising and regulating the quality of products. It has the powers to  seize, confiscate and destroy of sub-standard products, including the power to seal off premises where defective products are made, stored or sold.

    Nigeria is believed  to be losing about N15 billion yearly to fake or counterfeit goods through loss of revenue that should have accrued to the government, loss of income by local manufacturers and loss of jobs. The easiest way to appreciate the damage being done is how the characteristics of authentic products are disappearing as the day goes by in the country.

    Fake and substandard goods are eating deep into the fabrics of Nigeria with dire consequences. Lives and properties are lost due to building collapse and fire occasioned by substandard electrical and building materials. Substandard tyres and other fake motor spare parts have sent many people to early graves.

    Nigerians are not getting value for their money because of substandard goods that cannot stand the test of time. On the average, Nigerians may be spending about five times more money and time maintaining products because of poor quality. Added to these, is the undue pressure that substandard goods bring to bear on the environment. It is no longer news when a mechanic or generator technician tells you that he will go for a “tokunbo” or fairly-used parts instead of new ones because the so-called new ones are mostly fake.

    As a result of the high frequency of replacements caused by the use of poor quality materials and considering that we have a poor recycling culture, our environment is always littered and burdened with unusable parts.  The ripple effects of building collapse, frequent fire outbreaks, pollution, blocked canals and drainage channels put pressure on the environment.

    An authentic product inspires customer’s confidence, induces value for money and should be safe and fit  to use in addition to being  environment-friendly. But fake and sub-standard goods induce losses in all aspects. It seems counterfeiters  have upped their game and almost a step ahead of regulatory agencies,  especially  SON.

    Recently, the SON Director-General, Anthony Aboloma, during the presentation of Mandatory Conformity Assessment Programme certificates to 30 companies which met the required standards in their production processes in Ota, Ogun  State, warned counterfeiters and manufacturers to desist from inscribing  fake Nigeria Industrial Standard and Mandatory Conformity Assessment Programme marks on their products..

    Aboloma said the regulatory agency arrested some manufacturers for using fake marks, and they were sanctioned.

    He noted that it was in the interest of the manufacturers to get the necessary certification for their products, as this would enable them  to compete effectively in the market within and outside the country.

    He said, “The relevance of the MANCAP and the NIS certification cannot be underestimated. If your products meet the standards, you can also begin to earn foreign exchange by exporting them.

    “Maintaining quality standards is a journey you must continue to improve. The MANCAP certificates we are issuing to you today are on loan. We will be visiting your factories quarterly to see that you do not compromise on quality of your products. We are always ready to partner with you. If you have any issue, kindly let us know about it,” Aboloma said.

    Stating that proliferation of substandard products is a major concern with negative impact on the economy, Aboloma advised consumers to buy certified products.

    On his own part, the Assistant Director, Product Certification, SON, Fred Akingbesote, also advised manufacturers to guard their products jealously to avoid counterfeiting. He noted that MANCAP certification is the minimum standard, adding that “there is room for manufacturers to raise the bar of quality.

    In furtherance of the onslaught on the sale and manufacture of substandard roofing sheets, the agency seized galvanized roofing sheets and aluminium coils worth about N500 million in Owerri and Okigwe, Imo State.

    While raiding the two warehouses operated by Prossy Nigeria Limited, Aboloma said on-the-spot tests on the galvanized roofing sheets showed that they did not meet the requirements of the Nigeria Industrial Standard (NIS).

    According to him, the galvanized roofing sheets seized in Owerri were low gauges and failed to meet the minimum value standard prescribed in the NIS.

    Similarly at Okigwe, the impounded coils used for the manufacturing of galvanized roofing sheets showed a non-conformance were below standard.

    Represented by the enforcement team leader, Dele Omolawon, Aboloma reiterated SON’s desire to rid the nation of substandard products with its focus currently on roofing sheets sector due to safety concerns and losses being experienced by unsuspecting consumers of the products, who have been inundating SON with myriads of complaints.

    He restated that the exercise was part of a nationwide surveillance to locate and mop up substandard roofing sheets to ensure that only good ones that meet NIS minimum requirements are displayed in the markets or stocked in warehouses.

    According him, SON’s desire is for consumers to confidently walk into an outlet, warehouse or stockist to purchase roofing sheets knowing that he will get good quality and value for money that would not put their lives and properties at risk.

    He therefore asked Nigerians to seek expert advice when purchasing roofing sheets, or visit the nearest  SON office for advice. He also advised importers and manufacturers to adhere strictly to the standards to avoid products confiscation, destruction and possible prosecution.

    On the sealed warehouses and products put on hold, Aboloma said further investigation and testing are to be carried out following which the management would give further directives.

    Substandard products, he said, are subject to evacuation, destruction and prosecution of offenders in line with the SON Act 14 of 2015.

     

    Challenges of checking importation of fake and sub standard products

    The Federal Government in 2011 gave a standing order to some agencies, including SON, to leave the ports. Today, importers are complaining about what they called illegal entry by SON’s officials into the ports.

    To counter this, SON opened an office close to Apapa Port, Tincan Island Port and other terminals to ensure effective response and safeguard Nigerians from consuming fake and substandard products. It is a one-stop office which handles port inspections and SONCAP verification and enforcement,.

    But truth be told it has not stopped the importation and local manufacture of fake bulbs, keys, locks, electrical cables, cement and iron rods. Others products faked are electronics, household appliances and equipment, tyres and tubes, spare parts and machines.

    An example is the recent seizure of substandard tyres worth N5 billion, arrest of importers involved and the sealing of factories in Alakija and Ajangbadi areas of Lagos.

    Aboloma regretted that  some importers  declared one thing at the point of Pre-Arrival Assessment Report (PAAR) and a different thing at the point where the cargo would be released. He said: “They will connive and move the container before you know what is happening. You see a situation where you open the single window information system and discover that all the products declared there are not the real contents. The question now is, who is to invite SON when its expertise is needed at the port?

    Putting the records straight he maintained that  when some importers complain that agents of SON are on the highway monitoring, it only happens when we get information that a container is carrying substandard cables and not food items that we act.  He said they often  track the items but sometimes don’t get all because the cargo may be removed suddenly when they are not there. He reiterated that those criticizing SON are those who ought to be blamed for not doing the right thing.

     

    The way out?

     

    Aboloma said the SON Act 2015 gave the agency the power to prosecute economic saboteurs. Therefore, we will not hesitate to prosecute those guilty of importing fake and substandard products into Nigeria. Today, we have many cases pending in court and we must follow them to the logical conclusions, he added.

    According to him, SON leaving the ports is probably one of government’s bad decisions in recent times. Many concerned Nigerians have been appealing to the government to take necessary steps to review its stand on this issue with a view to reducing the monumental socio-economic pressure exerted on the economy and people by fake and substandard products.

    Some analysts say if the government can understand the gravity of the problem, estimate its size and multi-dimensional nature and correctly weigh its multiple socio-economic costs and effects on Nigerians and the economy, it will certainly discover the urgent need to return SON to the ports.

     

     

     

    TFake and substandard goods are seriously eating deep into the fabrics of Nigeria with major consequences. Lives and properties are lost due to building collapse and fire outbreak occasioned by substandard electrical and building materials. Substandard tyres and other fake motor spare parts have sent many people to their untimely graves.