Tag: Rewane

  • Rewane: road concession key to curb inflation, firm up naira

    Rewane: road concession key to curb inflation, firm up naira

    The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has highlighted that concessioning the nation’s major roads currently in poor condition could significantly lower inflation, boost productivity, and stabilise the nation’s struggling currency, the naira. 

    Rewane, who spoke yesterday on Channels Television’s “Business Morning” show, emphasised the importance of the Federal Government’s Highway Development and Management Initiative (HDMI).

    The initiative aims to attract sustainable investment for road infrastructure development and management through Public-Private Partnership (PPP) models. 

    According to the economist, the programme enables the private sector to invest in road infrastructure, with the government stepping back to allow private investors to take the lead. 

    Addressing the security challenges along the nation’s highways, particularly kidnapping, Rewane noted, “Kidnapping is low, productivity increase, the cost of transportation which reflects in the prices of goods. So, you would now see the prices of goods begin to come down.” 

    Read Also: Tinubu’s occupational hazards

    Explaining the connection between road infrastructure and inflation, he stated, “Inflation is defined as the persistent increase in prices because of low productivity and an increase in money supply. So, we can take out the money supply by using the MPR (Monetary Policy Rate) and the central bank but the persistent cause of inflation in the country is a reduction in productivity.” 

    He further explained that poor road conditions, high transportation costs, and post-harvest losses contribute to reduced productivity. He added that improving road infrastructure would address these issues, leading to a decline in rural-urban inflation disparities.

    He said: “Why is productivity reduced? Because when goods are produced, they cannot get to the market and there are post-harvest losses.

    “So, you will now begin to see a difference between rural and urban inflation which is reflecting because of this cost of transportation because the roads are bad, post-harvest losses and because the price of petrol was high.” 

    Rewane stressed that a reduction in inflation would positively impact the exchange rate.

    “There is a strong correlation between inflation and exchange rate weakness – the higher your inflation rate, the higher the volatility and the weakness of your currency,” he explained. 

    Under the proposed model, private sector operators would receive concession agreements spanning 25 years. He highlighted that outsourcing road maintenance to private investors would ultimately reduce maintenance costs for both the federal and state governments. 

    “He builds the road, maintained it for 25 years and he gives a percentage of his toll back to the Federal Government of Nigeria, in some cases, the states,” Rewane stated 

    “When you concession the road to somebody that spends maybe N100bn or N200bn, and guards it with drone technology and central reservation and high barriers, only three or four outlets to get out of the way, it means that you cannot be kidnapped.”

    According to Rewane, quality infrastructure results in improved efficiency and lower transportation costs. He noted that reduced transportation costs would coincide with falling petrol prices, allowing goods to reach their destinations more quickly. 

    “When a road is well-built, well-maintained, you will enjoy greater efficiency and lower cost,” he said. 

    “The records are there, the evidence is clear that because I can get to my location faster, I would rather pay N1,000 or N500 to get there and come back and turn around.”

    Comparing travel times, he noted, “Right now, it takes three to four hours to get to Asaba from Benin but it is now going to come down to 45 minutes.”

  • Planned telecom tariff hike will help curb inflation – Rewane

    Planned telecom tariff hike will help curb inflation – Rewane

    Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has predicted that the proposed tariff hike by telecom companies will likely range between 40 and 50 percent.

    The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, on Wednesday, January 8, confirmed plans for a telecom tariff increase.

    He assured the public that the hike would not be as high as the 100 percent initially proposed by the telecom firms.

    Echoing the minister’s remarks, Rewane said the anticipated adjustment is reasonable for both telecom operators and consumers.

    “Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane stated during an interview on Channels Television’s Business Morning on Thursday.

    The economic analyst, who has previously supported the tariff increase, explained that the move is necessary to ensure the sector’s sustainability.

    “Yesterday, the price of MTN shares went up by 10% to 220. The investors have already factored that in and are expecting a lot of good goodies,” Rewane noted.

    Read Also: Rewane predicts a rebound at Parthian economic discourse

    He emphasized the broader economic impact of the proposed changes, adding: “Because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity—not directly but indirectly.

    “Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to the quality of service.”

  • Rewane predicts a rebound at Parthian economic discourse

    Rewane predicts a rebound at Parthian economic discourse

    Nigeria’s economy will begin to exit reform adjustment in 2025, Non-Executive Director of Parthian Partners, Bismarck Rewane, has predicted.

    He spoke at Parthian Economic Discourse 2024 (PED24), in Lagos.

    Parthian Economic Discourse 2024 brought together economic experts, policymakers, and business executives to discuss future of Nigeria.

       The event focused on “Policy Shifts: Strengthening Economic Institutions for Sustainable Growth.” It was a platform for thought leaders to deliberate on our challenges and opportunities as we approach 2025.

    In his presentation on 2025 macroeconomic outlook, Rewane delivered a hopeful yet pragmatic assessment of the nation’s economic trajectory. He projected that the economy would begin to recover from the toughest phase of its reform adjustments by 2025, emphasising importance of strategic policy implementation and institutional reforms.

    Rewane noted that while the fundamentals of Nigeria’s exchange rate indicate the naira should be stronger, achieving stability depends on an efficient and effectively managed FX system. He stressed that the challenge lies not in the reforms themselves but in their management, citing poorly sequenced policy changes and insufficient structural reforms as obstacles.

    He underlined the role of investment in driving economic growth. “Revenue alone is not enough,” Rewane said. “Investment is key, but it is influenced by confidence, transparency, and right policies.” He called attention to power supply inefficiencies and lack of transparency in oil and gas, which require attention through structural reforms.

    Read Also: PH Refinery: Tinubu’s Renewed Hope Agenda is working – Arewa Think Tank

    A panel session offered deeper insight into reforms for sustainable growth. Moderated by Dr. Benson Uwheru, group chief Operating officer of Parthian, the session featured Prof Olayinka David-West, associate dean of Lagos Business School; Olufemi Shobanjo, chief executive officer of NGX Regulation; Dr. Chinyere Almona, chief executive of Lagos Chamber of Commerce and Industry; and Yemi Sadiku, executive director at Parthian.

    The panellists proposed strategies to address Nigeria’s economic challenges. Prof David-West noted importance of adopting a “digital-first mindset,” advocating use of technology and AI to improve fiscal discipline and economic planning. Almona identified high energy costs as a driver of inflation and stressed need to resolve power supply issues.

    Shobanjo discussed liquidity in capital markets, noting initiatives to enhance investor confidence and ensure stability. Sadiku stressed need for an enabling environment to attract investment, urging government to create policies to boost private participation.

    The discourse urged Nigeria to tackle the root of its economic challenges to achieve long-term growth. As Rewane said, “things outside our control exceeds what we control, but by addressing the causes, Nigeria can unlock sustainable growth and economic stability.”

  • Rewane, others mull tax concession to promote maritime investments

    Rewane, others mull tax concession to promote maritime investments

    To boost investment in the country’s marine sector, Managing Director/CEO of Financial Derivatives Company Limited, Bismarck Rewane, has urged the Federal Government to implement tax holidays.

    He made the call yesterday at the second Maritime Breakfast meeting organised by the Nigerian Maritime Law Association (NMLA), with the theme: “The Interplay of the Maritime Industry and the Macro Economy in Nigeria – The Way Forward.”

    He established that trade within Africa would be facilitated by the removal of non-tariff trade barriers and import levies.

    Increased trade prospects, Rewane observed, might be advantageous to the maritime sector as they would allow for greater cross-border movement of commodities within the African Continental Free Trade Zone (AFCFTA).

    He said that the AFCFTA will ease trade flows and promote international trade, adding that the vast amount of commodities involved in cross-border trade will benefit investments in the logistics and transportation industry.

    Read Also: FULL LIST: Jail term, fine, other consequences for mutilation, abuse of naira notes

    He said: “There are three dynamics – leadership, policies, and institutions. If you have good policies, good leadership, and weak institutions, the economic outcome is negative.”

    “If you have bad leadership, strong institutions and good policies, the economic outcome is positive.

    “If you have good leadership, strong institutions, and bad policies, the economic outcome is positive. So what is common to positive economic outcomes is strong institutions.”

    The economist further stressed the need for public-private cooperation for infrastructure improvements in port facilities, connectivity, and logistics, citing corruption, smuggling, and manual processes as reasons for cargo diversion to Benin Republic and Togo.

    Also, President of the Nigerian Maritime Law Association (NMLA), Funke Agbor, said expansion in the marine industry would inevitably result in all-encompassing national economic development.

    Agbor recalled the challenges with foreign exchange and how the naira fell against the dollar.

    She said: “We are talking about maritime, logistics, international trade and we can’t even import goods with naira, we have to change it into dollars through the Central Bank of Nigeria (CBN).

    “There are certain things that have to be in place. We need to have the right leadership, right policies, and strong institutions.”

    According to NMLA President, the federal government’s effort to generate revenue requires that taxes be effectively collected in order to fund social amenities like infrastructure, water, and electricity.

    She was, however, upbeat that the government would recognise the integral role of the maritime industry to the country’s economic advancement.

  • Rising food prices, not budget concerns Nigerians – Rewane

    Rising food prices, not budget concerns Nigerians – Rewane

    The Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, says Nigerians are not interested in budgetary figures if the prices of basic commodities like rice, bread, and garri don’t go down.

    According to Rewane, many Nigerians are less interested in the details of the 2024 budget recently presented to the National Assembly by President Bola Tinubu but more worried that the rising food prices are making life difficult for them.

    The renowned economist made this known on Thursday during a live appearance on Channels Television’s Business Morning show.

    He said: “In the end, budgetary arithmetics, budgetary mathematics in economics is of no use to anybody except when by this time, six months if we are buying rice at N40,000 a bag rather than N60,000 a bag, if we are buying bread N900 a big loaf instead of N1,300 which we are doing today. If we are buying garri at lower prices.

    “The people are not interested in whether the budget is balanced and what the debt is. How does it (the budget) affect their day-to-day livelihood? That is the key thing.”

    Read Also: Three ways out of debt crisis, by Rewane

    Giving a breakdown of the budget estimates, the President fixed recurrent non-debit expenditure at N9.92trn, capital expenditure at N8.73trn, debt service at N8.25trn, revenue at N18.32trn, new borrowings at N7.83trn and deficit at N9.18trn.

    Analysing the budget proposal, Rewane said in the final analysis, that the people are not interested in figures but want to feel the impact of the government’s economic policies as many are under pressure.

    He said: “And as you know, prices are up and people are under tremendous pressure,” he said, adding that the rate of poverty in the country is driving people mad.

    “You will notice that on the streets of Lagos in particular, the number of lunatics has increased and part of it is driven by poverty. Many mental health issues. People are pushed to the wall. Some of them walk across the road even in moving traffic.

    “People need to feel the impact. The impact is not going to be felt because of 10 or 12% of GDP which is N27trn; it has to be more. Where is the more going to come from? It’s going to come from investors and investors are going to come here when they are sure that their money is safe and the environment is clean, and they can look forward to a brighter future.

    The economist said the government must be honest with Nigerians on the economic realities, saying that “honesty is in short supply, you can fake news but you can’t fake prosperity.”

  • Rewane seeks strong institutions for economic growth

    An economist and Chief Executive Officer, Financial Derivatives Company Limited, Bismarck Rewane has said that building strong institutions is key for Nigeria to achieve desired economic growth.

    He spoke at the 2019 Time Management and Productivity/Nigeria’s Employee of the Year Award Summit (TAMS/NEYA Summit) held in Lagos.

    He said: “There are three variables for economic growth. They are good leadership, sound policies and strong institutions. A combination of the three will still produce the desired level of growth. But where institutions are weak, whatever growth is achieved is not sustainable and will eventually come back to zero”.

    According to him, it is regrettable that Nigeria continues to trumpet its abundant potential due to the richness in human and natural resources yet little is being done to harness this richness. He admonished the country to urgently start to work on the famed potential to achieve economic growth. Rewane stated that labour productivity in the country is very poor and that if that must be corrected to achieve Gross Domestic Product (GDP) growth that is commensurate with our size and resources, then the economy must make hard choices.

    “GDP growth can be achieved if we fix our weak infrastructure. The power sector problem, for instance, continues to be a huge burden with the sector hampered by enormous debt overhang and the inability to attract fresh financing. But this can easily be corrected if the debts are converted to equities,” he said. The financial expert also called for a review or the elimination of the fuel subsidy regime and the restructuring of the exchange rate management to make it more efficient.

    Other stakeholders at the summit equally stressed the need for an urgently overhaul of the nation’s infrastructure, particularly in the education sector.

    The TAMS/NEYA summit is organised yearly by SB Telecoms and Devices, a provider of time management-focused human resources management solutions to organisations.

     

  • Money supply to rise ahead of elections, say Rewane

    The Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, has said that money supply will rise by 2.2 per cent this year even as inflation is expected to go up.

    He spoke at the Stanbic IBTC Group’s West Africa Investors’ Conference 2018 in Lagos, with theme: “The pathway toward inclusive economy recovery” maintained that Diaspora remittances, greater opportunities for investors  will continue to resonate within the year.

    Also speaking, an entrepreneur, Leonard Ekeh said that doing business in Nigeria will require knowing exactly what to do at each point in time.

    He explained that investors should be ready to invest in the country and not just targeting profit making “The main challenge investors in Nigeria business have is that they come to look for profit majorly rather than investing into the country and that is the reason why corporate social responsibility is political. There are two types of investors- the people who want the money and thos who understands the business,” he stated.

    He therefore suggested that investors should look into investing in banking technology, consumer credit in banking, food production amidst others adding that some of the analysis on Nigerian economy are not objective.

    Rewane, said that inflationary pressure will continue as election gets closer. “Inflation is expected to average at 14.8 percent this year; it will likely be in the range between 14 to 16 percent,” he said. Speaking on the theme, ‘The pathway towards inclusive economic growth’, Rewane postulated that the focus by the Federal Government should be on infrastructure, power output, and job creation in 2018.

     

     

  • Obi, Rewane, others to speak at AKLS event

    Obi, Rewane, others to speak at AKLS event

    FORMER governor of Anambra State, Peter Obi, will be speaking at this year’s Annual Kingdom Life Summit, organized by the New Estate Baptist Church, Surulere, Lagos.

    The event themed ‘Greater Grace’ according to the convener, Samson Adedokun, will take place between February 8 and 10. His words: “The morning sessions will focus on the economy and governance of our nation.

    The Economic Forum will hold on Thursday February 8, 2018 at New Estate Baptist Church. The theme for the session is Strategic Investment Opportunities in a Consolidating Economy.

    We will have Mr. Ayo Teriba, a seasoned economist giving us insight into the economy; Prof. Segun Ajibola, President of Chartered Institute of Bankers speaking on business and ethical issues; Ms. Patience Oniha, Director-General of the Debt Management Office bringing the Government Perspective; We are also expecting Mr. Bismarck Rewane to bring the investment perspective to bear.

    “The Governance Forum will hold on February 9, at the same venue. The theme is Politics, Governance and Leadership: Raising a New Generation of Leaders. We expect to have Dr. Olorunnimbe Mamora, a distinguished former senator, bringing the political perspective at this meeting. Dr. Joe Abah, former Director-General, Bureau of Public Service Reforms, speaking to governance issues; Dr. John Dara, a former presidential aspirant will be sharing his insight.

    The forum is expected to also have Dr. Peter Obi, former Governor of Anambra State, bring us the leadership perspective. “The evening sessions will be our life transforming spiritual sessions.

    On Thursday night, we will privileged to have Rev. Victor Adeyemi of Global Harvest Church ministering and on Friday night and Saturday morning, we will welcome our father, Pastor J. T. Kalejaiye to bring the word and release greater grace. ‘’Nigeria is entering another cycle of elections.

    We consider that there is a need for all of us to become more concerned about the needless bloodletting, the mindless wastages, the purposeless policies, the unmitigated recklessness, the divisive speeches, and the unlimited corruption in the land.

    It is the reason why we need grace for our lives, grace for our livelihoods, and grace for our future.’’

  • Mastercard, Rewane: cities can be strong economic hubs

    With half of Nigeria’s population currently living in cities, it is critical that a development framework is in place to ensure its future growth is sustainable, participants at the Mastercard CEO Conversation Dinner held in Lagos at the weekend, have said.

    An Economist and CEO, Financial Derivatives, Bismarck Rewane, who led discussions with Mastercard President/CEO, Ajay Banga, said 60 per cent of the country’s Gross Domestic Product (GDP) is generated by those living in cities.

    With: Developing Nigeria’s Smart Cities through Technology Transformation as its theme, the discussants, said smart cities leverage technology with open standards and platforms to drive scale in order to deliver economic growth and efficiency.

    The session which had executives from the financial sector and other business leaders, also explored how smart cities deliver economic growth and resilience.

    According to them, Nigeria, by engaging technology, is helping citizens connect to services that help them lead better and easier lives. Mobile alps, they said, is playing an important role, and more Nigerian’s have access to the internet via their smartphones, with current estimates stating that over 97 million users have access.

  • Rewane:  22 years later

    Rewane: 22 years later

    Friday, October 6, marked the 22nd anniversary of one of the most dastardly political murders of recent memory.

    Chief Alfred Ogbeyiwa Rewane, elder statesman, industrialist, philanthropist, and a pillar of the progressive community, was shot dead in his home on Oduduwa Crescent, in the more tranquil section of Ikeja GRA, in Lagos.

    For the previous five years and indeed starting from Muhammadu Buhari’s military regime and through the depredations of the Babangida years to the loathsome Sani Abacha, Rewane had been an incisive and outspoken critic of government.

    Those uniformed potentates sought at every chance to stamp themselves on the public consciousness as patriotic redeemers who had come to free Nigeria from a shameful past and lead it to a glorious future.

    Drawing copiously on Nigeria’s history, Rewane showed with facts and figures in editorial advertisements that what the men of the moment were trumpeting as progress was nothing of the sort, and was in some instances actually a regression.  He supplied  that vital link with the past, without which a nation is condemned to grope and founder.

    That fateful Friday, October 6, 1995, he was getting ready to leave for his Western House office in Lagos when a pick-up van marked with the logo of one of his many companies pulled up at the gate. Accustomed to such visits, the gatekeepers dutifully admitted the van and its occupants into the premises.

    These were no visitors but intruders with murder on their minds. Drawing their guns, they overpowered the security guards, locked up all the residents and headed for Rewane’s bedroom.  There, they shot him in the chest.  They waited some five minutes to be sure he was dead; then they drove off.

    In Ibadan, Chief Bola Ige was about to set out for Lagos for a meeting with Rewane

    scheduled for the late afternoon when his phone rang.  The caller told Ige tersely and with more than a hint of triumph that the meeting would no longer hold because “we have taken care of Rewane.”  That call was placed within 15 minutes of the gruesome intrusion into Rewane’s home.  The caller did not identify himself.

    This was no random killing.

    The bullet that felled Rewane was not the type you could buy off the shelf at a gun shop or from a street vendor.  It was, according to insider accounts, specially designed to dissolve in body tissue, leaving no residue and hence no trace of its manufacture.  Only secret service operatives or persons engaged in syndicated crime pack that kind of ordnance.

    The killers had demanded nothing from Rewane.  Not cash, of which he kept a huge pile in mint-fresh banknotes handy.  Not gold jewellery, of which he was very fond, and of which his wife and members of his household could have supplied a truck-full.   Not the key to his safe, which doubtless held priceless documents.

    Rewane was not only a major financier of NADECO, the umbrella organisation at the

    spearhead of the struggle to terminate military rule, he used his enormous personal wealth to give aid and comfort and sustenance to political activists whom the authorities had marked for ruin.  He refused to succumb to the fear that Abacha’s terror machine had loosed on the land. The only question was when that machine would strike at Rewane.

    So, this could not have been an “armed robbery.”

    In the hours following Rewane’s murder, the police willfully ignored these important clues. They did not even make the pretence of searching for his killers. To create the illusion of momentum in the investigation, they seized several members of Rewane’s domestic staff – some of them had worked for him for so long that they were virtually members of the family – plus some vagrants in the Ikeja area, and charged them with armed robbery and murder.

    Five of the eight would die in prison custody, awaiting trial.

    Testimony before the Oputa Commission of inquiry into human rights violations as well as depositions at the murder trials of some of the principal actors of the Abacha regime would show what it required little imagination to figure out all along: Rewane had been killed by agents of the Nigerian state.

    For 14 years, six judges and at least as many prosecutors and defence attorneys would partake, wittingly or unwittingly, in an unconscionable mockery of the judicial system remarkable even by Nigeria’s standards.

    Finally, in January 2011, some 15 years after their arraignment, charges against two of the surviving suspects, Lucky Igbinovia and Effiong Elemi Edu, were dismissed by the Lagos High Court, Justice Olusola Williams presiding.

    “It appears to me that all the Police did was to visit the scene of the crime, arrest the workers there and obtain statements from them,” the judge said.  The “confessional statement” on which the prosecution had rested its case was inadmissible, Justice Williams said, because the court was convinced that it was coerced.

    No forensic or any evidence of probative value other than the alleged confession was tendered by the prosecution.

    The other survivor, Elvis Irenuma, had been discharged and acquitted several years because the prosecution had failed to establish a case against him.

    And so today, 22 years later, Rewane’s killers are yet to be brought to justice.

    One of several commemorative newspaper editorial advertisements (Punch, October 6) placed on the occasion by his family is in a way a comment on the state of the nation that could well have been written by Rewane himself, and a dire prediction.

    Emblematic of the forthrightness for which the late elder statesman was known, it reads:

    “After twenty-two years of your supreme sacrifice , nothing seems to have changed.

    “True democracy seems to be eluding Nigeria.

    “Autocracy by force and Democracy for cash are two sides of the same coin.

    “Some of the conspirators of your assassination are still in the closet while others are paying the price installmentally.

    “There is a moral decadence of values and culture, with the highest and revered now a subject of ridicule.

    “Our ancestors will reject the sale of our heritage to the unworthy.

    “Your message is as relevant today as it was back then.”

    The reference to those who “are paying the price” of their treachery is particularly striking.

    It says to the repellent thug, swindler, racketeer and embezzler widely believed to have led the operation to murder Rewane:  Humiliating imprisonment was only the first installment of the punishment awaiting you.

    May the next installment not be long in coming.  As for his confederates, may they be smoked out of their dank closets in due season.