The Nation Newspaper

Tag: terms

  • States get terms on $2.689b Paris Club Refund

    States must repay  Budget Support Loans granted in 2016 and pay workers’ salary arrears to benefit from the $2.689 billion Paris Club Refund disbursement.

    In a statement, the Ministry of Finance said yesterday that the government will pay the approved cash to the states in tranches.

    Other conditions that must be met by states include: clearing of amounts due to the Presidential Fertiliser Initiative (PFI) and commitment to clear matching grants (counterpart funds) from the Universal Basic Education Commission (UBEC) to improve basic education.

    The statement provided some clarifications on the Paris Club Refund approved for the 36 states.

    Signed by the ministry’s Information Director Hassan Dodo, the statement reads: “Tthe issue of Paris Club loan over-deduction had been a long standing dispute between the Federal Government and the state governments which dated back to the period of 1995 to 2002.

    “In response to the dispute, President Muhammadu Buhari directed that the claims of over-deduction should be formally and individually reconciled by the Debt Management Office (DMO). This reconciliation commenced in November 2016.

    “As an interim measure to alleviate the financial challenges of the states during the 2016 recession, President Buhari, had approved that fifty per cent (50%) of the amounts claimed by States be paid to enable the states to clear salary and pension arrears.”

    Dodo said this was released between December 1, 2016 and September 29, 2017. This refund was part of the government’s fiscal stimulus to ensure the financial health of sub-national governments.

    The DMO led the reconciliation under the supervision of the Finance ministry.

  • Etisalat, lenders disagree over $1.2b loan settlement terms

    Etisalat, lenders disagree over $1.2b loan settlement terms

    Local lenders have opposed a proposal by Etisalat Nigeria to convert part of the $1.2 billion loan into naira. Rather, the lenders want its parent, Abu Dhabi telecoms group Etisalat, and its shareholders to recapitalise the telco, it was gathered yesterday.

    A source privy to the negotiations said the seven-year syndicated loan, on which the telco defaulted in payment schedule, has a dollar portion of $235 million which the carrier wants to convert into naira to overcome chronic foreign exchange (forex) crunch at the interbank market.

    “Etisalat is asking for us to convert the dollar component to naira but banks don’t want that option and have told them to talk to their parent to settle the loan,” Reuters quoted a banking source as saying. The source said the regulators, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which had waded into theimpasse and prevented a possible takeover of Etisalat Nigeria are favourably disposed to the  naira conversion idea.

    Vice President, Regulatory and Corporate Affairs at Etisalat, Ibrahim Dikko, said he would not be able to give update about the outcome of discuissions with the lenders. He promised to do that today.

    The UAE’s Etisalat own 45 per cent of Etisalat Nigeria, while Abu Dhabi’s Mubadala owns 40 per cent of the company.

    This meeting came about after the CBN and NCC agreed with local banks to prevent Etisalat Nigeria from going into receivership.

    Global crash in oil prices has seen the country grappling with forex shortage since oil is the country’s major forex earner. The economy slipped into a recession last year for the first time in 25-years.

    Most of the 13 lenders involved in the loan syndication had raised dollars abroad to participate, meaning that further naira weakness would see them receive fewer dollars.

    The currency had lost half of its value since the loan, which matures in 2020, was made. Interest is due monthly and the next principal payment is due in May, the source said.

    Etisalat, which generates 3.7 per cent of its revenues from the Nigerian business, has questioned the rationale of investing more in it and may sell its stake, sources say.

    Etisalat had written down the value of Etisalat Nigeria last year to $50 million due to naira weakness, Moody’s said in a note, adding that the default at the affiliate company did not affect the parent’s credit profile.

    Etisalat owes GT Bank N42 billion, and Access Bank N40 billion. It also owed Fidelity Bank N17.5 billion, the bank’s investor relations team told Reuters.

    Etisalat  has 20 million subscribers, according to NCC;s figures, making it the country’s number four mobile operator with a 14 per cent market share. South Africa’s MTN has 47 per cent, Globacom 20 percent and Airtel – a subsidiary of India’s Bharti Airtel – 19 per cent.

  • Banks fail to meet CBN’s forex terms

    Banks fail to meet CBN’s forex terms

    The Central Bank of Nigeria (CBN) is set to cancel the Foreign Exchange Primary Dealers (FXPDs) status of some of the 15 FXPDs banks for recording low forex volumes of transactions against set guidelines, The Nation has learnt.

    Some of the FXDPs banks include FirstBank, Zenith Bank, United Bank for Africa (UBA), Access Bank, GTBank, Stanbic IBTC and Ecobank Nigeria.

    The CBN appointed the FXDPs lenders to boost dollar liquidity in the forex market but their performance in achieving the set target has not met the CBN’s expectations, given the continued dollar scarcity and poor liquidity in the market.

    The FXDPs lenders met a minimum of N400 billion in total foreign currency assets; minimum shareholders’ fund unimpaired by losses of at least N200 billion and minimum liquidity ratio of 40 per cent set by the regulator.

    Besides, the lenders operating as FXPDs were expected to have strong forex trading capacity to deploy all FMDQ Thomson Reuters FX trading Systems or any other systems approved by the CBN.

    The CBN expects FXPDs banks to act as professional counterparties and market participants in their overall conduct and support of market efficiency and liquidity. The participants are also required to resell a minimum of 70 per cent of any dollar uptake from the CBN in the inter-bank market on the day of purchase.

    They are to participate in the market on a daily basis or such period as may be required by the CBN. “FXPDs that record low volumes of FX transactions with the CBN during the evaluation period, that repeatedly provide bids and offers that are not reasonably competitive, or that fail to provide useful market information and commentary, shall be deemed not to have met the expectations of the CBN,” the guidelines stipulated.

    “Furthermore, while the main responsibilities of the FXDPs shall be to foster liquidity of forex purchases, CBN may trade on their offers. FXDPs that constantly give uncompetitive quotes risk the CBN trading on their offers. In such circumstances, the CBN may limit  FXDP’s participation in any or all operations, approved products and may suspend or terminate the authorised dealer’s status of FXDP if it continues to fail to meet these aforementioned expectations,” it added.

    But since the appointment of the FXDPs lenders in June, the CBN has consistently been intervening in the market, with little or no inputs from the lenders because of poor dollar liquidity. The CBN intervened via the Special Secondary Market Intervention Sales (SMIS) – Retail (End-users) and the Interbank FX market to clear a total forex backlog of $4.02 billion in the early days of the policy.

    When contacted, CBN Acting Director, Corporate Communications, Isaac Okorafor, said the FXDPs policy is still in force. He said the apex bank, like every other participant, intervenes in the market only when the need arises.

    But Currencies Analyst and Head Treasury at Ecobank Nigeria, Olakunle Ezun, said the CBN still remains the major supplier of dollar to the market despite the appointment of the FXDPs banks.

    “So far, it appears the Central Bank of Nigeria (CBN) still remains the major supplier of dollars, with over 95 per cent of market volume. The CBN has supplied around $1 billion spot and $3.5 billion forward to Authorised Dealers (Banks) and direct to end-users since Monday, June 20 2016. Trading in the interbank foreign-exchange market is yet to pick up, partly because there is too little foreign-exchange liquidity in the market. The interbank average turnover is barely about $40 million a day, compared to weekly volumes of around $1 billion about three years ago,” he said.

    Ezun admitted that forex liquidity remains a challenge despite CBN and FMDQ efforts to support interbank forex market with Forwards and Over-the-Counter (OTC) Forex Futures/Naira Settled Forwards transactions.

    “The CBN’s ability to meet its matured obligations as at when due is not in doubt, but recent development as per frequency and volume of CBN’s forex sales to the Foreign Exchange Primary Dealers (FXPDs) have questioned CBN capacity to support the market as growing import and investment demand are not being settled,” Ezun added.

    The guidelines insist the nature of the relationship with the FXPDs is primarily a counterparty relationship and require that the FXPDs qualified lenders register as authorized dealers designated to deal with the CBN on large trade sizes on a two-way dollar quote basis. They serve as the bulk traders dealing directly with the CBN on forex matters.

  • Just in practical terms

    Title: The practice and Influence of Elegance; Inside Out
    Author: Jackie Omotosho
    Volumes I & II
    Reviewer:Yetunde Oladeinde

    The foreword written by pastor Ghadi Olaoye highlights ways you can be effective through elegance. The writer takes the reader through the basic conventional etiquette, poise, pose, proper posture, primp and being polished. The book which is basically about grooming your image to fulfill your divine destiny is a reference book for all.

    Elegance, Omotosho informed would enhance your image, attract favour that would help you achieve your dreams, reach your potential and achieve your destiny. Here she takes the reader through steps and things to do to depict panache all the way. Gifts and talents, she noted were good but not enough to excel. Her words: “Your image and social interactions can make the difference. The impetus to write this book stemmed from my experience in Ministry over the past twenty-one years, eighteen of which I have worked alongside my husband, fondly called Dupsy. Our Ministry has placed us in contact with people of diverse races, cultures and sensibilities.  We have come across people with immense talents and natural abilities who find it difficult to translate their potentials into results.

    In volume one, Omotosho brings to the reader an understanding of the practice of elegance and taking care of your looks and body. The book not only details the power and importance of elegance in life but also how its influence radiates God’s glory to others around us. She also passionately shows us how we can exude this elegance in different areas of our life which oftentimes are either ignored or overlooked by many of us. This she does by providing practical steps to elegance and emphasizing the need to pay attention to our appearance. Walking, sitting positions, and choosing appropriate clothing are some of the other areas that she talks about.

    On the other hand, volume Two focuses more on the wisdom of elegance in various areas such as you and colors, principles of fashion design, learning how to dress in elegance  while also giving an understanding of topics like Image consulting , God’s standpoint on modeling, Pageantry and beauty, curtseying with elegance, workplace etiquette and social and dining etiquette.

    Some of the other issues that the writer examines include eloquence, hair and skincare, photography as well as the benefits of being culturally sensitive to your environment. Her generous use of illustrations and photographs to buttress her point make the book easy to read and understand.

    Omotosho goes a step further by buttressing her explanations with pertinent scripture and sound Biblical interpretations to support her descriptions. The message for all is that it is important to pay attention to the art of elegance because it will inspire you to improve as well as have a new awareness of the best personality you become in God’s kingdom.

    For the London trained architect, part of her studies was in human arts Life drawing, photography and etching as her minor courses. “I later taught arts at Redeemers International School or RIS did workshops for Redeemed Christian Church of God Children’s Church teacher and RIS.  I was the RIS art teacher and display board coordinator where we did high level art display board presentation. I worked in Costumes , props  and make up arts”.

  • Significant terms

    The cynic’s guide to Nigeria

    The writer  concludes his thoughts on fundamental issues in the season of choice.

    Manufacturing and Infrastructure. Tottering since the austerity years of the 80s and eventually brought to its knees in the President Olusegun Obasanjo years, the manufacturing sector is slowly throttled by Okonjonomics (economics of devaluation, deregulation, high interest rates, government bailouts and statistics sexed up to spur activity as espoused by the finance minister and coordinating minister for the economy, Ngozi Okonjo-Iweala).

    In a humbling reversal of fortune, smaller neighbours Ghana, Benin Republic and Togo provide alternative base to fleeing firms while Nigeria retains market appeal, accommodating via porous borders and sullied officials mostly substandard products. With the country challenged by provision of regular electricity, potable water, transportation, healthcare and other basic services, even neighbourhood tailors and carpenters find economies of scale elsewhere on the West Coast irresistible.

    The National Automotive Policy? It sounds like a ‘figment of the imagination’ of the government, to borrow the cliché. In an import-dependent economy lacking adequate skill and raw materials, neither the policy designed to promote a competitive and sustainable domestic automotive industry nor ‘transformation’ of the railway is worthy of serious mention.

    Running on refurbished Asian locomotives and colonial era tracks, the national rail service is worsened by a poor maintenance culture. Coaches are jam-packed and conveniences archaic or non-existent. Dogged by similar problems, intra-city and inter-city commuter bus services hardly fare better on pock-marked roads.

     

    Healthcare. A country that celebrates medical tourism can hardly claim an organised approach to healthcare.  Healthcare for mother, child and others as a millennium development goal? Not with the plague of fake drugs and ill-equipped hospitals aggravated by mediocrity and brain drain of personnel. And not when medical tourism thrives despite constant reference to ethics.

    The Nigerian lives in perilous times. While life expectancy rose in Rwanda from 41 to about 60 years in recent years, the average Nigerian is expected to live between 53 and 55 years based on World Health Organisation (WHO) figures for 2012.

     

    Power. Not content with defrauding the collective intellect of Nigerians year upon year, the government proceeds to promise a new delivery date for 5, 000 or 6, 000 (sometimes 10, 000) Megawatts of electricity every New Year. At the sound of each undertaking, though, citizens opt to deal with immediate variables by sinking wells for water and maintaining generating sets for power.

    But the much-vaunted power sector roadmap seems locked in a vicious cycle. A long-drawn privatisation process laced with pension scam, lay-offs and bailouts has served the usual fare: shortage of gas, pipeline vandalisation, prolonged blackouts, wanton disconnection and indiscriminate billing, otherwise called ‘crazy bill’.

    The president promised to reduce the sound of generators in the country, but the sound of silence is louder than ever following his administration’s failure to meet the modest target of 5, 000 megawatts by the end of last year.

     

    Sports. Read football. Despite claiming a hefty chunk of attention, football at best yields average returns.

    The country fluffed, as usual, its best chance of reaching a peak of national fulfillment as indicated by the 2013 Africa Nations Cup triumph in South Africa. Internal strife in football administration spilled over to the pitch where, led by a technically-hamstrung Stephen Keshi as chief coach, Nigeria’s least talented bunch in decades relinquished the hard-won title before the 2015 Nations Cup finals in Equatorial Guinea.

    Keshi may have stayed on to the disastrous end with the backing of the presidency despite alarming results and widespread opposition, but the Nations Cup qualifying campaign witnessed a more disturbing ritual: promotion of the individual ego above national interest. While the Keshi-must-go-Keshi-must-stay narrative typified a nation-wide approach to dicey issues, the system would do well to refine thought and method.

  • Significant terms

    The cynic’s guide to Nigeria

    The writer once more considers fundamental issues in the season of choice.

    Impunity. There is arithmetic confusion in the land and officials who should know better pontificate on the national school certificate failure rate. First, 16 members outnumbered 19 in the Nigeria Governors Forum election in May, 2013, then five members of the Rivers State House of Assembly attempted to overrule 27 others the following July before seven out of 19 members of the Ekiti House of Assembly last November ‘impeached’ the lawful speaker and subsequently ‘passed’ the 2015 Appropriate Bill into law.

    Add Ekiti governor Ayo Fayose’s role in the intimidation of Ekiti judges and courts on credibility complaints after the state’s 2014 gubernatorial election to sordid tales of malpractice in the preceding Anambra and Osun governorship polls and there is little reason to believe in widespread reform of minds and processes anytime soon.

    In a land free of massive earthquake, hurricane and tsunami, bad leadership appears to be the natural calamity.

     

    Insurgency. Militants from the Niger Delta once held Nigeria’s oil arteries by the jugular. Fed by similar socio-economic inadequacies and extra-judicial killings, Boko Haram subsequently tapped into fissures in the national structure. While the Northeast-based fundamentalist sect writes the next chapter of serial insurgency, militants warm to the idea of a pipe-bursting return to the creeks in the event of the president’s failed bid for a second term.

    And instead of providing weapons for an army scared of engaging with the enemy for the obvious reason of inadequate motivation and poor equipment, the military authorities elect to save face, sentencing ‘mutinous’ soldiers to death or accusing others of running scared while generals who shun transparency in financial administration strut far from the frontlines.

    Depicting a dire narrative, the current uprising has claimed over 12, 000 Nigerian lives while 219 schoolgirls kidnapped from Chibok last April (now metaphor for thousands more kidnapped before and after) and the massacre of over 2000 citizens in Baga remain miserable highlights of the administrative blunder.

    Worse for national pride, the sect discredited an October 17, 2014 ceasefire with the government with a deadly assault on a Borno village followed by relentless sacking of historic cities in the Northeast. Yet, the fact that the influential United States of America prefers to deal with Chad, Cameroun and Niger in battling the rebels out of apparent distrust of Nigerian motives and means of warfare seems lost on government officials and the military authorities.

     

    Security. ‘We are on top of the situation’, declare the security forces, but no one is fooled. While Boko Haram cut a swathe through the Northeast, the military top brass engaged in caging the ‘cowards’ in its ranks. Yet, the generals spurned legislative attempts to make them account for their share of the national budget.

    Entrenched corruption is thought to be the reason why the United States of America and other countries have not been able to reach an agreement with Nigerian on a coordinated and effective approach to the fight against terror. Despite wholesale confusion, thousands of soldiers continue to perform political duties in 32 states, according to critics.

     

    Partisan police. Mbu Joseph Mbu: three words never suggested executive impunity more. Months after his redeployment to the Federal Capital Territory, the Assistant Inspector General of Police’s erstwhile performance as Rivers Police Commissioner jars the memory still. Ever combative, his claim of being the ‘lion’ that ‘tamed’ Rivers governor, Rotimi Amaechi, heightened notoriety and projected the presidency’s perceptible bias for men of lacerated tongue, suspect wit and dubious morals.

    Considering his antecedents, Mbu’s latest redeployment to Zone 2 comprising Lagos and Ogun States hardly raised eyebrows. For the ‘presidential hatchet man’ and his Abuja minders, it was true to type. After all, the AIG has a way with tear gas canisters and blank bullets that might come in handy in the ‘stubborn’ southwest during the 2015 elections.

    The bigger picture staggers informed critics on the other hand. Of the estimated 320, 000 policemen in Nigeria, about 100, 000 act as personal guards to prominent people, leaving 200, 000 to police 170 million people.

  • Bonke agrees terms with Lillestrom

    Bonke agrees terms with Lillestrom

    Allnigeriasoccer.com can exclusively report that Norwegian Tippeligaen campaigners Lillestrom have secured the services of former Golden Eaglets invitee Innocent Bonke.

    While this information is not yet official, sources close to the player and his management team have told allnigeriasoccer.com that he penned a 41-month contract tying him to the Canaries until December 31, 2017.

    Bonke, a defensive midfielder, impressed officials of Lillestrom while undergoing trials in March.

    And if not for the problems that would have been encountered in obtaining a work permit, the Aråsen Stadion outfit would have completed his signing before the Norwegian transfer window closed for business on March 31.

    Top Nigerian scout Udia Attai, better known as Atta Aneke’s right hand man in Nigeria, discovered Innocent Bonke during a tournament held in Kaduna in January before recommending that he should be tested at LSK.

    For the remainder of this season, the highly rated starlet will wear the number 18 shirt.