Tag: pegs

  • Buhari’s round pegs

    Buhari’s round pegs

    Nearly six months after assuming office, President Muhammadu Buhari has finally assigned portfolios to his ministers. The universal impression is that the cabinet is star-studded and capable of delivering on the programmes and policies of the All Progressives Congress (APC). With a hint of immodesty, the president also enthusiastically indicated how he avoided the mistakes of his predecessors, consulted widely, and deftly put round pegs in round holes. Polemically, experts may question the integrity of his ‘wide consultations’ and the substance of who and what constitute round pegs and round holes. But given public perception of his assignation of portfolios, not to talk of the technocratic zeal of the ministers, Nigerians appear inspired, if not relieved, to give him the benefit of the doubt.

    President Buhari is obviously a late bloomer. From the early months of his presidency when he described federal ministers as noisemakers, and permanent secretaries as the real engine of government, he has quietly given way to disillusionment with the private but outlandish trust he reposed in top civil servants, some of whom have just been sacked and are awaiting prosecution. He seems to have now embraced an epiphanic belief in the role and attributes of federal ministers. More, given the manner he has assigned portfolios and the way he romanticises his cabinet, he even seems to believe rather immoderately that ministers are the lodestar of his government, upon whose shoulders the success or failure of his administration is expected to rest. His conversion is rapid and convincing. He will hope his trust in the men he has appointed is not misplaced or betrayed.

    Nigerians will have to become accustomed to their president’s speed. He has taken all of six months to get so far. He will take many more months to accomplish other yet weightier things, the most crucial of which is the articulation of a vision, not programmes, for the country. This vision is expected to be synthesised from his party’s manifesto or road map, and will serve as the main anchor to hold together the multifarious visions his ministers will articulate in their ministries. The body of ministers functioning as one can, however, neither conceptualise nor articulate this vision, though they may provide its building blocks and give a concrete feel to it. Only the president can. Until that vision is articulated and the country buys into it, whatever success the president achieves may not transcend the commonplaceness evident in many stable and even developed countries. That commonplaceness may be good enough for Nigerians, given their antecedents and sufferings, and even lower expectations. But for any achievement to rise to the grand and soaring level of legacy, a great vision must help to carve a niche for the country and embody the collective sacrifices and yearnings of the people.

    Six months of methodicalness have brought Nigeria to the point where President Buhari has constituted a cabinet. He has done well, and he has carried out his task admirably, albeit slowly. But the time lag may evince something much deeper than just pawky caution. It may be indicative of the disparateness of the president’s thoughts, his hesitations, his undecipherable priorities, and his lack of definable and transcendental vision. While it is good and desirable to run a country where corruption is low, where infrastructure is great, where security is sound and the country stable and peaceful, it is nothing exactly remarkable. If care is not taken, Nigeria under President Buhari may follow this trajectory. But if he appreciates that these achievements are nothing but stepping stones to a greater destination, and that the time is now to chart that almost intangible and ethereal destination, only then can it be said the president has an intuitive grasp of nationhood, that he has been to the mountaintop, and that he possesses a metaphysical connection to that great destination.

    However, on the surface, the cabinet and portfolios will be criticised for their structure and suppositions, whether intended or not. Neither the North nor the Southwest can complain. Both have been empowered and compensated. By bestowing bureaucratic power on the Southwest, the president seems to have completely disemboweled the other faction of the Yoruba elite which embraced mainstreaming during the Goodluck Jonathan presidency. But either by design or accident, the president also seems to be preparing to invoke a new power elite in the zone more amenable to him, distinctly and even exclusively pro-Buhari, an organised army to be deployed for reelection and other purposes in 2019 or any other time. The history and political culture of the Southwest, however, make that latter proposition very troubling, unstable and often unworkable.

    At another general level, deliberately or inadvertently, President Buhari also seems by his cabinet and their portfolios to have bifurcated the country into two dominant power equations: the North to man the real but unseen power base of the nation, and the Southwest to man the bureaucracy; the former to inspire the levers of power, and the other to inspire the execution of programmes and policies. The perceptive southeasterner and critical South-South analyst are likely to feel shortchanged by the whole arrangement. Whether this arrangement will work remains to be seen. But surely, had the Jonathan government embraced even a little of the purposefulness being demonstrated by President Buhari, his government would have had much to show for his efforts and to still keep the PDP in office.

    As enthusiastic as this column and many Nigerians are about the Buhari cabinet and portfolio distribution and management, it is impossible not to ask why the president’s retention of the Petroleum ministry makes sense to him. It is needless, unwise, distracting and fated to create more problems for him and the country than it will solve. Retaining that portfolio may also reflect his incomplete appreciation of the magnitude of the problems he faces as he pilots Nigeria, the onerousness of the transformation the country requires, and his sanctimoniousness which he pushes in the face of the country, as if he could trust no one else to honestly direct that sensitive and graft-infested ministry.

    It is also difficult to understand what logic propelled the president to merge the three demanding ministries of power, works and housing in the hands of one minister, Babatunde Fashola, former Lagos State governor. The competence of  Mr Fashola is of course not in doubt, but it is unlikely that given the collapse already engendered in at least the power and works ministries, one minister can give the undivided attention sorely needed. It is unrealistic and unsustainable.

  • CBN pegs dollar exchange to pilgrims at N150

    CBN pegs dollar exchange to pilgrims at N150

    CHRISTIAN pilgrims to Israel, Rome and Greece will get foreign exchange (forex) from the banks at N150 to the dollar, a Central Bank of Nigeria (CBN) circular to all authorised dealers has said. This represents four naira hike from the N146 to dollar sold to the pilgrims last year.

    The apex bank advised banks participating in the dollar sales to always comply with the sales conditions to avoid sanctions.

    It said each pilgrim travelling to Israel is entitled to a maximum of $750, while those going to Israel/Rome or Greece are entitled to a maximum of $1,000.

    “The Federal Government has approved the purchase of a maximum of $1,000 at a concessionary rate of N150 to the dollar by each intending pilgrim as Personal Travel Allowance (PTA). Consequently, each pilgrim travelling to Israel is entitled to a maximum of $750, while those going to Israel/Rome or Greece are entitled to a maximum of $1,000,” it said.

    The apex bank advised that no pilgrim should be denied the travel allowance on the ground that he/she has no tax clearance certificate. It also said that given the time constraint associated with the pilgrimage exercise, the Chairman or the secretary of each State’s Pilgrims’ Board, after due identification , may be allowed to sign for and collect the PTA on behalf of the intending pilgrims in his/her state on presentation of the approved list and valid passports of the pilgrims listed against the state.

    “In accordance with the Israeli and Italian governments’ policies, visa shall only be issued to the pilgrims at the point of entry, that is, at Ben Gurion Airport, Tel Aviv, Israel and Fumichino Airport, Rome, Italy, on arrival. It should also be noted that the pilgrimage will be by chartered flights,” the apex bank added.

    Also, air ticket and visa requirements for the purpose of procuring the stipulated PTA have been waived even as endorsed copy of each pilgrim’s passport should be retained by the bank for record purposes.

  • CBN pegs dollar exchange to pilgrims at N146

    Christian pilgrims to Israel, Rome or Greece will get foreign exchange (forex) from the banks at N146 to a dollar, a Central Bank of Nigeria (CBN) circular issued yesterday to all authorised dealers said.

    Eleven banks were enlisted by the CBN to sell forex to the pilgrims. The banks include Union Bank, Zenith Bank, United Bank for Africa, Fidelity Bank and First City Monument Bank.

    Others are Unity Bank, FirstBank, Ecobank, Sterling Bank, Skye Bank and Keystone Bank.

    CBN Director, Trade and Exchange, Musa Batari, who endorsed the circular, advised the banks to always comply with the sales conditions to avoid sanctions.

    The regulator had in a previous circular of October 14, pegged maximum Personal Travelling Allowance (PTA) sale to intending pilgrims at $1,000 at a concessionary rate of N146 to a dollar.

    “The Federal Government has approved the purchase of a maximum of $1,000 at a concessionary rate of N146 to a dollar by each intending pilgrim as Personal Traveling Allowance (PTA). Consequently, each pilgrim travelling to Israel is entitled to maximum of $750 while those going to Israel/Rome or Greece are entitled to a maximum $1,000,” the CBN said.

    The apex bank also said no commission shall be charged by banks for the sale of the PTA between the approved $750 to $1,000.

    According to the CBN, the funds of the respective banks shall be debited as soon as the funds are disbursed. Each of the designated banks is required to sell to the CBN, the unutilsed PTA.

    Also, the CBN said no pilgrim should be denied the travel allowance for not having tax clearance certificate. The circular also stated that the Chairman or Secretary of each of the participating state Pilgrims’ Board, after due identification, may be allowed to sign for and collect on behalf of the intending pilgrim in his/her state.

    States participating in this year’s pilgrimage are Akwa Ibom, Federal Capital Territory (FCT), Gombe, Kwara, Niger, Ondo, Osun, Taraba, Niger, Edo, Ebonyi, Lagos among others.

  • August forecast pegs inflation at 8.64%

    The headline inflation will remain relatively unchanged at 8.64 per cent in August from the 8.7 per cent recorded in July, the Managing Director, Financial Derivatives Company (FDC) Limited, Bismarck Rewane, has said.

    Rewane said in the FDC report for September that the forecast was supported by the moderation in the food index of FDC’s Lagos urban inflation.

    In August, FDC’s Lagos urban inflation was unchanged from July’s 11.57 per cent. This was due to a marginal increase in the non-food basket and a decline in the food basket, thereby creating a no effect.

    The interbank rates rose to a year-high average of 21 per cent per-annum in response to the monetary policy decision on the Cash Reserve Ratio (CRR) for public sector deposits in July. The policy took effect on August 7, as the Central Bank of Nigeria debited N1 trillion from banks’ accounts.

    This, he said, caused an initial squeeze in liquidity which forced interbank rates to trend up-wards but thereafter stabilised to an average of 14.25 per cent per annum, in August, compared to July’s aver-age of 11.8 per cent per annum.

    We expect the impact of the CRR debit to abate by the end of third quarter and rates return to the two per cent band of the benchmark policy rate due to our muted inflation outlook. Despite the CRR debit, bond yields for two-year, three-year, five-year, seven –year and 10-year averaged 13.33 per cent per annum in August compared to 13.57 per cent in July.

    “Considering the downside risks to the naira coupled with the upside risks to government spending and benign inflationary conditions, we believe that debt investors will hold their current position. This is because the equities market performed poorly in the month amidst huge sell pressures occasioned by concerns for corporate performance given the high interest rates and global economic pressures,” he said.

    He explained that traditionally, high interest rates implies exodus of funds from equities market and with increased risks and liquidity concerns, portfolio managers are expected to favor fixed income.

     

  • Operators kick as NCC pegs sms at N4

    Operators kick as NCC pegs sms at N4

    Telecommunication firms have been directed to charge N4 for domestic off-net short messages (sms) from February 5.

    Yesterday’s Nigeria Communication Commission (NCC) directive attracted mixed reactions in the industry.

    The Association of Licensed Telecommunications Companies of Nigeria (ALTON) kicked against the decision, but the National Association of Telecoms subscribers (NATCOMS) welcomed it.

    Off-net sms are text messages sent acrosss the networks, that is sms sent using the network of other operators. An SMS sent from an MTN line to an Airtel line, for instance, is off-net sms. Now off-net sms costs N9 and N10.

    ALTON said traffic sms had been considerably reduced due to the upsurge in instant messaging platforms, such as Blackberry, WhatsApp and others.

    ALTON President Gbenga Adebayo said the policy would not profit telecom firms. He lamented the situation where the NCC indulges in micro-managing commercial ventures. This is not in the best interest of the industry, he said.

    The NCC directive, signed by the Director, Legal and Regulatory Services, Ms. Josephine Amuwa, according to a statement issued by Head, Media & Public Relations, Reuben Muoka, has been communicated to the operators since January 3.

    But she maintained that the Commission will not place a price cap on international sms for now.

    The commission, Ms Amuwa said, arrived at the new price cap after due considerations of the submissions made by the operators at various consultative meetings.

    Having evaluated and analyzed SMS traffic information provided by the operators, she said the commission noted that “there was a general recognition that the cost of SMS is too high, especially in view of the interconnection rate of N1.02 (one naira, two kobo only) for SMS as determined by the commission in 2009”.

    While noting that the operators had proposed a price cap ranging between N5-10 per message for Off-Net SMS, she said the operators also urged the commission not to set a cap for international SMS because interconnect rates for International SMS are outside NCC’s control.

    Ms Amuwa said the commission would monitor compliance and penalise those who fail to comply as provided by Section 111 of the NCA 2003.

    Adebayo said the NCC directive will kill many small and medium businesses as most of them have entered into contractual agreement with service providers before the regulator’s directive.

    “SMS traffic over the last three years or when BB messenger and WhatsApp introduced free internet-based messages, which became popular, has dwindled. So, this last straw that the NCC has thrown is just to kill SMS business for service providers because the revenue there is meagre. A few people use sms and the NCC is placing a N4 price cap on it. It is very bad for our business.

    “Other than the operators, there are other value adding providers who buy bulk sms and resell. This kind of directive will kill this business segement. A lot of them have existing long Contracts with the operators,” the ALTON chief said.

    But NATCOMS said though the gesture was coming a little late, it was nonetheless a welcome development.

    NATCOMS President Deolu Ogunbanjo said with the directive of the NCC, on-net SMS that used to attract N5 shlould now be reduced to N1, preparatory to the eventual removal of payment for all on-net SMS. “We welcome the development. Since on-net SMS attracts 50 per cent of off-net charges, the operators should reduce on-net SMS to N1 per SMS,” he said.

    The President, Nigeria Internet Group (NIG), shares the same sentiment as Ogunbanjo. According to him, there are countries where on-net SMS goes for free, adding that when broadband becomes ubiquitous, the cost of telephony will crash considerably.”It is good. When broadband is available, people will be able to make Skype calls. Text messages will be virtually free because of the wide range of options that will be available to the consumers,” he said.

  • National Assembly pegs Budget oil benchmark at $79

    The National Assembly (NASS) yesterday dumped the $75 oil benchmark proposed for the 2013 budget by President Goodluck Jonathan. The Senate and the House of Representatives have adopted $79 for the price of crude at 2.526 million barrels per day.

    The lawmakers have also adopted a Corporate Tax rate of 30 per cent and five per cent Value Added Tax (VAT) rates for 2013 to 2015.

    The lawmakers want the Comprehensive Import Supervision Scheme (CISS) Account transferred to the Nigerian Customs Service in addition to an increasing revenue target for the Customs in 2013.

    These emerged at the plenary yesterday during the consideration of the Conference Committee report on Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) 2013-2015 that the Senate and the House could not agree on the most feasible benchmark for the 2013 budget until the early hours of yesterday.

    According to the Chairman, House Committee on Appropriation, John Enoh, the consensus took so long as a result of the resolve on both sides to maintain their stance on $80 and $78.

    “Though the official meeting of the conference Committee on November 17, we met several time after that. As a matter of fact, the insistence on the House position on the benchmark led to several meetings as other issues were dealt with much earlier.

    “However, because of exigency of time, taking into consideration that the House might adjourn for the festive period, a decision had to be made fast. It was not until the early hours of this morning (Tuesday) that we arrived at $79,” Enoh said.

    The lawmakers noted that the document presented for consideration by Enoh was not signed by three members of the House, who were in the conference Committee as well as Enoh himself.

    Enoh explained that the original document was signed by all the members of the committee.

    Chairman, House Committee on Petroleum Resources (Down stream), Dakuku Peterside noted that observations on the report ought to have taken place during the second reading of the report.