DSS, others ask court to compel Kashamu to honour invitation

The Director-General of the Department of State Services (DSS), the Inspector-General (IG) of Police and a member of the House of Representatives, Oladipupo Adebutu, have asked the Abuja Federal High Court to compel Senator Buruji Kashamu to honour an invitation sent to him by the security agencies over allegation of attempted assassination.

The parties yesterday asked the court to disregard and reject claim by Kashamu that the invitation was a ploy to forcefully abduct and extradite him to the United States (U.S.) to answer criminal charges on drug-related matters against him.

The DSS and the police, in separate counter-affidavits to the originating summon of Kashamu asking for a perpetual restraining order against his arrest or invitation, said that the claim of extradition raised by the senator was speculative and has no bearing nor connection with their invitation to him to clarify issues on the assassination allegation.

The IG said he received a petition from a House of Representatives member, Oladipupo Adebutu from Ogun State, alleging attempted assassination on his life and kidnapping by Buruji Kashamu in Port Harcourt in 2016.

He also said upon receipt of the petition, he directed a Special Investigation Panel (SIP) to probe the allegations to determine their authenticity.

Justice Nnamdi Dimgba fixed March 2 for definite hearing of the matter. In another development, the DSS has arrested former gubernatorial aspirant of the People’s Democratic Party (PDP) in Lagos State, Mr. Babatunde Gbadamosi.

Gbadamosi, who is a critic of the Buhari administration, was taken away to an unknown destination. It was reported that members of his family and his lawyers were denied access to him.

SOURCE: http://guardian.ng/news/dss-others-ask-court-to-compel-kashamu-to-honour-invitation/

T-Bill’s offer overshot by N148.4 billion, CBN debits banks with N362.4 billion

The Federal Government’s debt strategy is now in full operation, as a N30 billion Treasury Bills (T-Bill) offering last week, was extended to N178.4 billion at 18.6 per cent, raising new deal worth N148.4 billion.

The treasury operations’ plan showed that it would redeem a total of N1.23 trillion in 91, 182 and 364 days securities and simultaneously roll the same back, with only an addition of N15.8 billion in first quarter of 2017, but now a 321-day bill has overshot the February debt schedule.

Consequently, the rates at which banks lend among themselves took an upswing at the close of transactions on Friday, particularly the Overnight, which rose to 25 per cent from 10.17 per cent, but later dropped to 18.67 per cent.

The Open Buy Back also hit 833 basis points to 17.83 per cent, from 9.5 per cent on Thursday. The money in circulation was also drained as the regulator debited commercial banks for bonds purchases worth N362.4 billion.

The move would sustain the already low money supply mode in the economy, aid the fight against inflation and provide immediate cash for the government to implement its planned budget.

However, analysts at SCM Capital, in a note to The Guardian, said the prevailing high rates would calm next week, as there are expected N120 billion maturities and repayment in treasury bills and the Federal accounts disbursements.

Meanwhile, the foreign exchange reserves have recorded a new level of $29.1 billion, after gaining about $880 million in two weeks,, from $28.2 billion at the end of January 2017.

This is coming, just as the regulator said it has disbursed $2.83 billion to support critical sectors of the economy between December 2016 and January 2017.

The resurging reserves’ profile has shown the regulator’s commitment and belief in building the stock of foreign exchange as panacea to regaining investors’ confidence, as well as attracting inflows, rather than outright devaluation.

However, the Naira was stable at the inter-bank market at N305.50/$, just as CBN maintained a daily intervention of $1.5 million, while at the parallel market, the local unit remained pressured at N516/$.

SOURCE: http://guardian.ng/business-services/t-bills-offer-overshot-by-n148-4-billion-cbn-debits-banks-with-n362-4-billion/

ICMR seeks regulatory permission to earn fee on all secondary market transactions

Institute of Capital Market Registrars (ICMR) have urged the regulatory authorities to permit registrars operating in the nation’s capital market to earn fee on all secondary market transaction.

The secondary market is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

The Registrar Chief Executive, ICMR, Walker Ogogo, who spoke in an interview with The Guardian, lamented that registrars currently do not earn fees on secondary market transactions, while other market operators earn a percentage of the value of transactions.

According to him, if the regulators grant the permission, it would go a long way to improve the income and enhance their operations.

“The regulators should allow registrars to earn a fee on all secondary market transactions. This will go a long way to improve the income of registrars.

“Currently, registrars do not earn fees on secondary market transactions. Other capital market operators earn a percentage of the value of transactions,” he said.

Concerning some of the challenges facing the operations, Ogogo explained that registrars are grappling with dwindling income, even as some clients firm are shutting down their businesses due to unfavorable operating environment.

The President of the institute, Bayo Olugbemi explained that the registrars were not insulated from the harsh operating environment witnessed in the country.

He pointed out that the equity segment of the market has remained flat with no new offering, either rights issue or public offer.

“The registrar subsector of the capital market has also been affected adversely by the challenges being faced at the macro level. There has been little or no activity in the capital. The equity segment has been flat with no new offering, either rights issue or public offer.

“In the bond segment, because of high-interest rate applicable at a short end of the market, issuers have not been willing borrow money at such a high rate and again, investors, apart from the pension fund, do not have the resources to actually lock in long term instrument. The implication for us is that there have been no new registers.”

SOURCE: http://guardian.ng/business-services/icmr-seeks-regulatory-permission-to-earn-fee-on-all-secondary-market-transactions/

Africa wants 10 slots at expanded FIFA World Cup

Africa will be looking to double the number of places it has at an expanded World Cup, the continent’s football association presidents have told soccer’s world governing body, FIFA.

Africa wants at least 10 spots in the 48-team World Cup that FIFA president Gianni Infantino has proposed from 2026 as the continent gave a ringing endorsement to the expansion plans.

“All associations back the idea to expand the World Cup and there is the hope that Africa can have 10 places in future,” South African FA chief, Danny Jordaan said yesterday.

That would be double the five places the continent has at the next two finals in Russia next year and Qatar in 2022.

Europe is seeking a minimum of 16 places, up from 13, and wants its sides to be separated in the 16 opening round groups of three teams, with the top two advancing to a 32-team knockout phase under plans approved by FIFA last month.

                                

Asia are expected to get eight to nine places, compared to 4-1/2 now, and South America, which has 10 member countries, a total of six, also up from 4-1/2.

The CONCACAF region, made up of the Caribbean, Central and North American countries, would get 6-1/2 places, compared to 3-1/2, with Oceania, the small Pacific Islands confederation, having one automatic place at the finals instead of 1/2.

Inter-continental playoffs between countries with 1/2 a place would determine the additional spots at the finals. The final allocation of places must be passed by the FIFA Council.

Meanwhile, the subject of the expanded World Cup featured prominently at a three-day summit between Fifa chief Infantino and more than 50 presidents of the African FAs.

The talks were behind closed doors but FIFA officials told Reuters yesterday that Infantino had outlined plans for an expanded World Cup and new development assistance for member countries.

It is the first time a summit of this type has been held, giving Africa’s FA representatives informal contact with the Fifa leadership, including the world governing body’s recently appointed general secretary, Fatma Samba Diouf Samoura.

http://guardian.ng/sport/africa-wants-10-slots-at-expanded-fifa-world-cup/

How tax administration can contribute to GDP growth

For the nation’s tax system to contribute meaningfully to the growth of the gross domestic product (GDP), practitioners have stressed the need for government to expand the tax base and strengthen intelligence framework through appropriate synchronisation between the Federal Inland Revenue Services (FIRS) and the Corporate Affairs Commission (CAC).

These were the submissions of experts that gathered at the KPMG’s Tax Breakfast Meeting held in Lagos.

Taxes are what governments at all levels use in paying their workers’ salaries, support common resource agencies like Police, Military and other paramilitary agencies as well as use in providing infrastructure, such as roads, schools, hospitals, railway and a host of many others.

But where a majority of the citizens continue to default, government is unable to fulfill these obligations, which compound economic woes especially in a recessed economy like Nigeria, where many states are unable to pay salaries for months, while existing infrastructure are dilapidated and begging for overhaul.

Indeed, the stakeholders argued that if government deepened intelligence gathering, with proper linkage between FIRS and CAC, it would bring more people into the system, which would ultimately help achieve the 2017 budget of growth and recovery.

Besides, they added that government must maintain good governance practice and become more accountable to boost compliance to tax obligations. For instance, a Partner Tax, Regulations and People Services, KPMG, Adewale Ajayi, said what is expedient at this time is to broaden the tax base with good synergy between FIRS and CAC and not necessarily increasing it.

According to him, many companies that registered with the CAC are not fulfilling their tax mandate. Ajayi, who lamented the current tax to GDP ratio, put at three per cent, explained that such collaboration would help provide the details of these firms.

Furthermore, he urged government to make tax management seamless in such that when a company registers as a corporate body in Nigeria, it will automatically have a tax number.

“The current tax to GDP ratio is just about three per cent. It does not compete favourably with the rest of Africa. The average for the countries is about 14 percent, so we still have a long way to go.

“The problem we have in Nigeria is that people are not oblige or they do not feel it is necessary to pay taxes because they have provided roads, infrastructure, they have provided light for themselves, so they are not seeing any bases to pay tax.

“Government has to implement good governance to encourage people to come forward and pay taxes willingly. For us to be able to increase longevity, first thing is broadening the tax rate, again, there has to be good governance, people will always pay tax when they see where the bulk of their money is going,” he said.

SOURCE: http://guardian.ng/business-services/how-tax-administration-can-contribute-to-gdp-growth/

Sugar refineries struggle with backward integration

SUGAR manufacturers in the country are still struggling with their backward integration programme amidst likelihood that the massive drop in the volume of output three years ago may sustain upwards swing. Output rose to 15,000 metric tonnes (MT) per annum in the latest report up to 2015 after a huge plunge three years ago from 35,000 MT they had recorded five years ago. Top operators in the industry are Dangote Sugar, BUA Sugar and Golden Sugar, a subsidiary of Flour Mills.

Vanguard learned that the specific incentives government has put in place for investors in the industry includes zero per cent duty on machinery and spare parts imported, five years tax holiday for sugarcane value chain, outright ban on the importation of refined sugar in retail packs and 30 per cent tax credit on the cost of provision of critical infrastructure by sugar cane to sugar project investors. Critical infrastructure It was further gathered that under the National Sugar Master Plan (NSMP) the target is to produce on an annual basis 1, 8 million tonnes of sugar; 161.2 million litres of ethanol, 4000MW of electricity, 1.6 million tonnes of animal feeds, 37,378 permanent jobs and 79,803 seasonal jobs; save the economy $416 million (N68.6 billion) in foreign exchange over a ten year period.
                 

However, a five – year data (2011-2015) obtained from the National Sugar Development Council, NSDC, revealed that local production which stood at 35,000 metric tonnes had dropped significantly to 15,000 metric tonnes in the years under review. In 2011, production was 35,000 metric tonnes. It dropped to 10,843 metric tonnes (2012) and further down to 10,000 metric tonnes in 2013, picked to 12, 345 tonnes and 15,000 metric tonnes in 2015. In a communiqué , stakeholders in the sector noted that the risk associated with investment in the sugarcane to sugar value-chain is very challenging and requires a conscious partnership with Nigeria Agricultural Insurance Corporation (NAIC) to reduce the loss due to natural disasters such as fire and flood. 

The communiqué further called on lending institutions like Bank of Industry and Bank of Agriculture to create friendly financial support schemes that would address the challenges being faced by investors in terms of high interest rate, untimely release of funds and other associated bottlenecks that slow down farm and factory operations which are time specific. In a statement, Mr. Samuel Kwabe, the Acting Executive Secretary of NSDC, said “I can tell you that the two functional sugar companies we have- the Golden Sugar Company in Niger State and the Savannah Sugar Company in Adamawa State –have provided jobs for about 13,000 Nigerians. “I am happy to tell Nigerians that the Savannah Sugar, owned by Dangote Group, has been able to produce about 13,000 metric tonnes this year. The company is undergoing expansion. As a matter of fact, they are in the process of acquiring a brand new mill, which is about three times the size of the present one,” he said.

Read more at: http://www.vanguardngr.com/2017/02/sugar-refineries-struggle-backward-integration/

FCMB steps up commitment to SMEs

FIRST City Monument Bank (FCMB), Plc has indicated its commitment towards supporting growth of Small and Medium Enterprises, SMEs, as a way towards actualizing Nigeria’s economic growth potentials. According to a statement from the bank, it has put in place, various initiatives and capacity building programmes that would fast-track growth of SMEs, while up-scaling their contributions to the development of the country. 

Apart from training sessions organised for small business owners, the bank said it would be bringing its professional expertise closer to the people by having dedicated SME Loan Officers at some of its branches nationwide. These officers, according to the statement, are trained and equipped to provide SMEs with the best and most effective advice and support. 

The bank stated: ‘‘We have established an empowerment programme, called Cluster Marketing, for operators of SMEs. The initiative was designed to enhance their financial, marketing and management skills.” Speaking on the strides of FCMB in the MSMEs space, Divisional Head, Retail, Mr. Olu Akanmu, stated: ‘‘SMEs are the bedrock of any country’s economic development. It can hardly make good progress except the SMEs excel. 

Therefore, being a forward looking bank with the appropriate desire for growth, we have decided to provide this sector with maximum support.” He advised SMEs to re-examine their operations and effectively position themselves to take advantage of the opportunities within the country. “There are huge intervention funds from both government and multi-national agencies focused on supporting SMEs. 

Some are focused on helping with affordability. In other words, reducing the cost of borrowing, while others are focused on accessibility, in other words helping to mitigate those risks that make small and medium scale businesses fail credit acceptance tests or requirements. ‘‘Unfortunately, a good number of the outfits do not know the difference and therefore adopt the same strategy for accessing both,” he stated

Read more at: http://www.vanguardngr.com/2017/02/fcmb-steps-commitment-smes/

Rohr: I’ll pick only 3 players from China

Super Eagles head coach, Gernot Rohr has warned players of the senior national team moving to China, that players based in Europe are going to be considered ahead of them when it comes to selection of players. Gernot Rohr Brown Ideye is the latest Nigerian export to the Chinese Super League and has joined Super Eagles duo of captain John Obi Mikel and Odion Ighalo in China, which brings to five the number of Nigerian players who have moved to the Far East since January.

                   

          

Overall there are now seven Nigerian players plying their trade in the big paying Chinese league, and Rohr has warned that he will consider only a few number of players from the league. “The Chinese League is not as backward as many thought, but has moved forward from what it used to be. However, Europe is still where I feel is best for players as the level is very high”, Rohr said. “We have to consider the players in competitive leagues before looking at the players in less competitive leagues, maybe three players from China would be ideal for our squad.”

Read more at: http://www.vanguardngr.com/2017/02/rohr-ill-pick-3-players-china/

Skye Bank shares drop further by 8.42%

Skye Bank’s shares on Friday on the Nigerian Stock Exchange (NSE) dropped further by 8.42 per cent following investors continued reaction to removal of the bank’s board and executive management.

The Central Bank of Nigeria (CBN) removed the board and management of the bank on Monday, and replaced them with another, a measure it said, was to redirect the bank.

The News Agency of Nigeria (NAN) reports that the trading on Friday, the bank lost 8k to close at 87k per share.

The bank’s shares had depreciated by 9.5 per cent on Monday, forcing it to close at 95k per share.

A breakdown of the activity chart on the Exchange showed that investors sold 21.59 million shares of Skye Bank valued at N18.79 million.

                              

Alhaji Rasheed Yussuf, immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that the shares of the bank were on offer but nobody was buying.

Yussuf urged the new management of the bank to map out strategies to assure and reassure shareholders and investors.

Further analysis of the losers’ table showed that Forte Oil lost N8.93 to close at N171.90 per share, while Beta Glass dipped N4.17 to close at N38.66 per share.

SOURCE: http://thenationonlineng.net/skye-bank-shares-drop-8-42/

Naira continues gain, closes at 505/dollar

The naira recorded further gain against the United States dollar on the parallel market on Wednesday, reversing part of the loss it had recorded in recent days.

Specifically, the naira rose to 505/dollar on Wednesday, up from 512/dollar on Tuesday, as the Central Bank of Nigeria started increasing dollar supply at the official market.

The CBN had on Monday introduced a new forex policy action aimed at boost forex supply to enable commercial banks to meet the needs of customers seeking dollar to pay school fees and medical bills overseas, as well as for personal travel allowances.

                        

The CBN will therefore begin weekly sale of $1m to each of the country’s 21 commercial banks at N375/dollar to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates.

The decision was announced hours after the naira tumbled to 520/dollar on the parallel market on Monday as scarcity of the greenback continued to weigh on the exchange rates.

The naira had closed at 516/dollar last Friday, after hitting 510/dollar and 507/dollar last Thursday and Tuesday, respectively.

On Tuesday, the CBN carried out a wholesale intervention in the inter-bank foreign exchange market with the release of $370.8m to 23 Deposit Money Banks.

The Acting Director, Corporate Communications, CBN, Isaac Okoroafor, said the move was sequel to the apex bank’s promise to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions.

Okorafor said the CBN’s inter mediation in the forex market was the first wholesale intervention aimed at easing the pressure of access to Forex on Nigerians who intend to meet obligations that fall under visible and invisible needs categories.

He further explained that the CBN offered $500m for sale to the banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts.

Experts had said demand for dollar for school fees payment overseas as well as Personal Travel Allowance by intending travelers was taking toll on the exchange rate at the parallel market.

         SOURCE: http://punchng.com/naira-continues-gain-closes-       505dollar/

Coronation Merchant Bank profitability rises by 128%

CORONATION Merchant Bank Limited has recorded 128 per cent growth in its profit before tax (PBT) which rose to N5.6 billion in 2016. The bank’s financial statements for the operating year ended December 31, 2016 shows that its net-interest income increased by 86 per cent from N4.3 billion in 2015 to N8billion in 2016, prompted by increased efficiency in the overall funding mix and significant growth in the bank’s balance sheet size. 

Commenting on the financial results, Abu Jimoh, the group managing director/chief executive officer, said stated: “The impressive results of the bank in the last two years of business operation demonstrates the effectiveness of our strategy as we continue to grow our market share in key segments of the economy. 

We will continue to maintain a disciplined and prudent approach in our exposures to dollar based assets in line with our overall risk management framework. As at December 31, 2016, our Non-Performing Loans (NPL) ratio stood at zero percent. “With a strong risk rating of ‘A‘by Agusto and asset base of over N100 billion, the bank is certain to leverage its privileged direction by some of Nigeria’s individual’s who excelled and rose to the top of merchant banking sector at its height of excellence to become the industry model for risk management, corporate governance and responsible business practices,” he said.

Read more at: http://www.vanguardngr.com/2017/02/coronation-merchant-bank-profitability-rises-128/

Naira rises by N4 as CBN intervenes with $411.8m

The naira, yesterday, appreciated to N516 per dollar in the parallel market as the Central Bank of Nigeria, CBN, intervened in the foreign exchange market by selling $411.8 million dollars for visible and invisible foreign exchange transactions. Emefiele Meanwhile, Archbishop Emeritus of Lagos, Anthony Cardinal Okogie, yesterday, commended latest effort of the CBN to address the depreciation of the naira in the parallel market. Under the new policy, the CBN said it would sell direct additional dollars to banks to meet the needs of Nigerians for Personal Travel Allowance, PTA, and Business Travel Allowance, BTA, medical needs and school fees at exchange rate not exceeding 20 per cent above the interbank market rate. Foreign exchange sources told Vanguard that the CBN, yesterday, carried out wholesale interventions in the interbank forex market by providing a total sum of $370.8 million futures transactions to 23 banks to meet the visible and invisible requests of customers.

 The apex bank also provided $46 million in spot transactions. A source at the CBN disclosed that the qualified bids for the dollars ranged from N315 to N360, adding that seven banks received full allotments of their respective bids valued at $37.5 million each. Other banks received allotments ranging from $46,512.50 to $15,578,081.51. A breakdown of the forwards indicates that $216,465,671.02 is for 30 days, while $154,345,139.77 is for 60 days. The apex bank also made spot sales of $1.5 million to four banks, totalling $6 million. It also offered $41 million for sales of which $35 million was taken up for the payment of school fees, medical bills and personal and business travel allowances. Confirming the information, Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, said the bank’s intermediation in the forex market was the first wholesale intervention aimed at easing the pressure of access to forex by Nigerians who intend to meet obligations that fall under visible and invisible needs categories. He further explained that the CBN offered $500 million for sale to the banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts. 

While expressing optimism that the wholesale intervention of the CBN would substantially ease the foreign exchange pressure on visible and invisible needs of customers, Okorafor assured that the bank would continue to make interventions based on qualified bids from the banks on the requests of their customers. Okogie hails CBN on forex Meanwhile, Archbishop Emeritus of Lagos, Anthony Cardinal Okogie, yesterday, commended the CBN for its latest effort to stem the tide of demand pressures which had battered the nation’s currency in the unofficial market. Speaking in an interview in his office in Lagos, the cleric maintained that when there is the will there will always be the way, liking the CBN latest move to the deliberate efforts of the church to revamp returned schools to the middion. 

According to him, when St. Gregory’s College, Obalende was returned to the mission after several years of military take over, it was a shadow of its old self but “go to any of our schools, I’m proud of that. Because we sat down to do our homework. “If you are not good enough, we just tell you quietly to step aside. Can’t we do that in Nigeria? Every sector is the same thing, as a result, people are now rushing to where the grass is greener. “They will pretend that they can do it. So, that’s what is happening in this nation. Not that we can’t do it, we can. Look at what the CBN had done which was reported in the papers today (yesterday) with the naira, I congratulate them partially.” According to him, the CBN ought to have gone down to something like N300 or N250 to one dollar because a certain group of people is making a whole lot of money from this.

Read more at: http://www.vanguardngr.com/2017/02/naira-rises-n4-cbn-intervenes-411-8m/

MMM victim, who drank insecticide, dies in Abuja

A ponzi investor identified as Ada Kole has died in Kubwa, a satellite town in the Federal Capital Territory after drinking insecticide following the crash of the MMM scheme.

The young man, whose wedding was rescheduled from December last year to May, 2017 reportedly died on Monday night following complications arising from the poison he took late last year.

Kole had reportedly invested about N750,000 in the scheme in November last year and was expecting to get his 30 per cent income when the MMM crashed and he lost his money.

A family source said Kole passed away after suffering from stomach complications as a result of the poison.

The source said, “Kole died yesterday (Monday) evening and his body has been deposited in a mortuary. He died from the complications he suffered from the poison he took last year. He had a terrible stomach ache and was rushed to the hospital where he died.”

Asked if the Benue State indigene was paid by the MMM before his demise, the source said, “No, he was not paid. In fact, he threatened to arrest his guider before the stomach upset returned last week and we rushed him to the hospital where he finally died,” he added.

It was gathered that his fiancée had been inconsolable since his passage.

Kole had earlier opened up on his predicament during a phone-in radio programme in Abuja last December where he admitted making profits from the scheme before it crashed.

He explained that he initially invested N20,000 and got 30 per cent interest few weeks later.

He said, “I came to Abuja from Benue few months back in preparation for my wedding and my friend introduced me to the MMM thing. He told me about the benefit involved, though I was a bit hesitant about it but he succeeded in convincing me to register under him.

“To be honest, I initially invested N20,000 into the scheme and I got 30 per cent the following month. The following month, I did N50,000 and I still got 30 per cent commission and my full investment back.”

Kole stated that he decided to increase his investment so he could make more money, but he apparently miscalculated.

He said. “This time, I believed it was real and I decided to increase my investment. Before then, my fiancée had warned me against it. So I went to my cooperative to obtain a loan and they gladly gave, thinking it was for my wedding.

“I put in N750k last month (November,2016) hoping it would yield 30 per cent income this month (December) only to wake up one morning to discover that my account has been suspended.”

The deceased had told his interviewer that he took the insecticide because he did not know how to tell his fiancée that he had lost the money for their wedding.

He added, “To be sincere, the best option I had then was to take my life, because I didn’t know how I was going to face my woman. I didn’t even know when I took the insecticide.”

The FCT police spokesman, Anjuguri Manzah said Kole’s death had yet to be reported to the police.

COPYRIGHT: http://punchng.com/mmm-victim-drank-insecticide-dies-abuja/

FG rules out borrowing from IMF

The Federal Government, yesterday, ruled out the option of obtaining any loan facility from the International Monetary Fund, IMF, stating that the country was not having a balance of payment problem. Finance Minister, Mrs Kemi ADEOSUN It also cited the painful and stringent conditions associated with borrowing from the organisation. Speaking in an interview monitored on CNBC Africa in Abuja, Minister of Finance, Mrs. Kemi Adeosun, said Nigeria was only faced with fiscal problems and the Federal Government would want Nigerians to take responsibility for their future. She said: “The issue of the IMF borrowing is a huge national debate. For us, the IMF is a lender of last resort, when you have balance of payment problems. 

Nigeria does not have Balance of Payment problem per se, it has a fiscal problem, which is that its major revenue sources lost so much value. First we lost price, then we lost quantity.” She explained that Nigeria’s challenges are different, adding that what the IMF does for any country seeking to borrow money from it is that they give them a programme of reforms. Adeosun noted that the country is already doing as much reforms as any IMF programme would impose on Nigeria. “So, my question is what would that bring that we are not already doing? What measures would be introduced that we are not already doing?” she queried. She further stated that Nigerians must take responsibility for their future, while the country must initiate home-grown, home-designed programmes of reforms that Nigerians could take ownership of, due to the fact that reforms of the IMF were painful. 

The minister said: “When you go through this type of adjustment of your economy, the reforms are very painful and I think they have got to be home-grown; we have got to take responsibility for this ourselves, so that when it succeeds, Nigerians are going to say, ‘yes, we did this.’ “I am not saying that the IMF is bad; I am just saying that right now, we do not see that need. We feel that this is a problem that Nigerians created one way or the other, and Nigerians must solve.”

Read more at: http://www.vanguardngr.com/2017/02/fg-rules-out-borrowing-from-imf/

CBN moves to ease forex scarcity at nation’s airport

The Central Bank of Nigeria (CBN) yesterday ordered all banks to open foreign exchange (Forex) kiosks at major airports and approved outlets.The order was issued barely 24 hours after The Guardian exclusively reported that passengers were stranded at the international airports on account of dollar scarcity.

The move is to ease acute Forex scarcity and reduce the wide gap between the official and parallel markets to enhance efficiency. It also indicates that the apex bank has stepped up the foreign exchange liberalization plan, as it switched back to an earlier policy of selling dollar through banks.

Yesterday, the regulator said in a statement that it would now provide direct funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, with immediate effect, a few days after the National Economic Council (NEC) ordered it to review the policy.

The exchange rate for such retail transactions has also been pegged around 20 per cent of the prevailing interbank (official) market rate.A statement from CBN spokesman, Isaac Okarafor, read in part: “In continuation of efforts to increase the availability of foreign exchange in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, the CBN is providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, effective immediately. The CBN expects such retail transactions to be settled at a rate not exceeding 20 per cent above the interbank market rate.”

Responding to the development, the Acting President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, said the move “to sell invisibles at 20% above interbank rates to end-users by CBN, hopefully will add confidence in the market.”

He, however, hoped that banks would be directed to sell a “certain percentage of interbank sources to BDCs at 20% margin. This, to me, will be lucrative for banks to do and at the same time put the liquidity in the market.”

He added that given its capacity to adequately meet the critical retail needs of the market, “the injection of additional liquidity to the BDCs subsector will definitely have a wider positive impacts on naira.”

A sub-Saharan Economist at Rencap, Yvonne Mhango, in a note to The Guardian, expressed optimism that the foreign exchange policy may be up for adjustment in the short term, given key developments in the economy.

“But we think the most probable outcome of a forex policy adjustment is a managed float, possibly a new peg, but a full float is unlikely. We heard this was being ‘fine-tuned’.

“Making the interbank FX market work is key for the central bank. Improved liquidity, a smaller premium between the parallel and interbank rates, price discovery, and transparency would signal success,” she said.

COPYRIGHT: http://guardian.ng/news/cbn-moves-to-ease-forex-scarcity-at-nations-airports/

Coronation Merchant Bank posts 128% rise in earning

Despite challenging economic situation in the country, Coronation Merchant Bank sustained its impressive financial performance across all indices, posting 128 per cent increase in profit before tax in 2016.

The development is showing that the banking sector operations remain strong, but requires each financial institution to create its niche in the industry.

The Group’s result, acclaimed to be the first to be announced in the banking industry for 2016, is also riding on its goals of “first to market” and efficiency aspirations.

It also recorded a Profit Before Tax of ₦5.3 billion in 2016, which represents an increase of 128% over the last year’s performance of N2.3 billion.

The Group Managing Director/Chief Executive Officer of Coronation Merchant Bank Limited, Abu Jimoh, said that the impressive results of the bank in the last two years of business operation demonstrate the “effectiveness of our strategy as we continue to grow our market share in key segments of the economy.”

“We will continue to maintain a disciplined and prudent approach in our exposures to dollar based assets in line with our overall risk management framework. As at December 31, 2016, our Non-Performing Loans ratio stood at zero percent,” he said.

A significant growth in the Balance Sheet size was also recorded as total assets rose to N106.6 billion from N78.3 billion in December 2015.
Shareholders’ funds increased to N25.8 billion from N20.24 billion, a valid testament to the resilience of the Group’s operations and its adaptability to market realities and challenges.

The bank has a 40% capital adequacy ratio above the regulatory minimum of 10% and is driven by its vision of becoming Africa’s premier investment Bank.

Consequently, its expertise in corporate banking, investment banking, global markets, private banking, assets management, trust services and securities trading have been efficiently strengthened with the appointment of individuals with vast international and local experience to deliver exceptional benefits to clients and other stakeholders.

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1.4 million children face famine in four countries, says UNICEF

Almost 1.4 million children suffering from severe malnutrition could die this year from famine in Nigeria, Somalia, South Sudan and Yemen, the UN children’s agency said Monday.

In Yemen, where war has been raging for nearly two years, 462,000 children are suffering from acute malnutrition while 450,000 children are severely malnourished in northeast Nigeria.

Fews Net, the famine early warning system, said some remote areas of Nigeria’s Borno state are already affected by famine since late last year and the disaster is likely to continue as aid agencies are unable to reach those in need.



In Yemen, where war has been raging for nearly two years, 462,000 children are suffering from acute malnutrition while 450,000 children are severely malnourished in northeast Nigeria.

Fews Net, the famine early warning system, said some remote areas of Nigeria’s Borno state are already affected by famine since late last year and the disaster is likely to continue as aid agencies are unable to reach those in need.




Drought in Somalia has left 185,000 children on the brink of famine but that figure is expected to reach 270,000 in the next few months, said UNICEF.



In South Sudan, over 270,000 children are malnourished and a famine has just been declared in parts of Unity State in the north of the country, where 20,000 children live.

UNICEF director Anthony Lake appealed for quick action. “We can still save many lives,” he said.

UN Security Council ambassadors are due to travel to northern Nigeria, Cameroon, Chad and Niger next month to draw international attention to the humanitarian crisis triggered by the conflict with Boko Haram militants.

Okocha rated second best free transfer in EPL history

Former Super Eagles Captain, Austin Okocha, has been rated as the second best free transfer in the EPL when he joined Bolton Wanderers from Ligue Un side, Paris Saint- Germain.

The former midfielder switched leagues in 2002 on a free and per Jonny Singer for Mail Online, the Nigerian became a club legend for keeping Bolton up in the top half for three consecutive seasons.

“So good they named him twice. When Sam Allardyce plucked Okocha from PSG on a free transfer, there was amazement around the league – this was a man who had been Africa’s most expensive ever player when the Parisiens spent £10m on him in 1998.

“Okocha became a legend at Bolton, alongside fellow free transfers Ivan Campo, Fernando Hierro and Youri Djokaeff, and helped the club to three top-half finishes in a row.“He is best remembered for a handful of stunning strikes and sensational tricks, which made him a favourite among all fans.”

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Funding, main challenge of power sector- Eko discos boss

Well, it depends on the capacity of the transformers. Regardless of the number of streets, some transformers can serve them especially those communities that do not consume much energy. There could be one transformer supplying two or more streets

Read more at: http://www.vanguardngr.com/category/business/

Naira hits 520/dollar, forex retailers examine CBN action

The naira tumbled to 520 against the United States dollar at the parallel market on Monday as scarcity of the greenback continued to keep the exchange rate in a free fall mode.

The naira had closed at 516/dollar on Friday, after hitting 510/dollar and 507/dollar last Thursday and Tuesday, respectively.

Experts said demand for dollar for school fees payment overseas as well as Personal Travel Allowance by intending travellers was taking a toll on the exchange rate at the parallel market.

This came just as retail currency traders tried to digest the Central Bank of Nigeria’s new decision to sell dollars to retail users through commercial banks, Reuters reported.

The CBN is planning to sell $1m weekly to each of the country’s 21 commercial banks at a rate of N375 to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates.

Retail currency users buy dollars from licensed Bureaux de Change operators. However, due to the CBN’s inability to meet dollar demand, the BDCs have tended to source dollars from private sources and resell at a much higher margin, fuelling the black market.

Forex traders told Reuters that some banks had compiled a list of bids from customers awaiting dollars.

The CBN has been selling dollars at N305 to clear a backlog of demand from manufacturing, agriculture and airline companies, hoping also to help drag the country out of its worst recession in 25 years.

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Enugu revenue board seals banks over N1bn debt

The Enugu State Board of Internal Revenue on Monday sealed 36 branches of eight commercial banks allegedly indebted to the state government to the tune N1bn.

The exercise, which started by 6 a.m, was carried out at 23 locations of the affected banks across the Coal City.

Addressing newsmen after the exercise, the Chairman of the BIR, Mr Emeka Odo, said that the board sealed the banks due to their failure to remit about N1bn owed the state government.

Odo said that the board had in Feb. 6, obtained an ex parte order from the state high court to distrain the affected banks.

He said that the debts were part of the withholding taxes they were supposed to remit to the state government which dated back to 2007.

The affected financial institutions are Access Bank, Stanbic IBTC Bank, Skye Bank, Union Bank and Unity Bank.

The other banks are; Heritage Bank, Keystone Bank and Sterling Bank.

He said, “The branches of the affected banks which are now under lock and key will remain locked until they pay to the state government the taxes they have collected on its behalf.

“In the past one year we have written the affected banks severally and held meetings with them on the subject matter but they would rather hold onto government funds illegally.”

Odo said that the eight banks had combined branch network of 36 branches in Enugu urban and the neighbouring towns of Agbani and Ituku Ozalla.

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Court strikes out suit challenging Magu’s position

A Federal High Court on Monday in Lagos struck out a suit challenging the position of Mr Ibrahim Magu as Acting Chairman of the EFFC.

A rights activist, Mr Ebun-Olu Adegboruwa, had filed the suit, seeking an order to restrain Magu from holding the office in acting capacity.

Adegboruwa is also asking the senate not to entertain any further request for the confirmation of Magu as chairman.

The defendants in the suit are the senate, the attorney-general of the federation, the EFCC and Magu.

At the resumed hearing Justice Mojisola Olatoregun, struck out the suit, following Adegboruwa’s application to withdraw the suit.

Mr Tayo Oyetibo, a Senior Advocate of Nigeria (SAN) and Counsel to the applicant, while addressing the court, explained that his client had decided to discontinue with the case.

Oyetibo said that soon after he took over the case, he had to convince the applicant on the need to withdraw the case to encourage Magu in his current war against corruption

“There is need to give Magu the opportunity to continue the anti-corruption campaign of the present administration and since this case may affect his confirmation, it is better to discontinue it,” he stated.

Confirming Oyetibo’s application, Adegboruwa maintained that he was persuaded by his counsel, to withdraw the suit on the grounds that Magu would do a good job in his approach to the anti-corruption drive of the administration.

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Seven governors linked with N19b bank account

Seven governors have questions to answer in the alleged diversion of part of the N388.304billion London-Paris Club refunds into two accounts opened by the Nigeria Governors Forum (NGF), The Nation has learnt.

The Economic and Financial Crimes Commission (EFCC) has uncovered N19billion in one of the accounts. The other is a domiciliary account, which contains a yet unspecified amount of money.

One of those invited for interrogation has admitted handing over a huge sum of money to a principal officer of the National Assembly after changing it into dollars, according to the preliminary report on the management of the refunds.

According to a source, who pleaded not to be named because he is not permitted to talk to the media, EFCC detectives discovered that while about 2% of the funds was paid to consultants who allegedly assisted in computing what was due to each state, 3% was shared by some governors under “curious circumstances”.

The source said: “The detectives have uncovered the two accounts opened in the name of the NGF and the signatories to same.

“We are looking into circumstances behind such huge deposits from London-Paris Club refunds into these accounts.

“The payment of 2% of the refunds to consultants and 3% to some governors which was rated as “curious” by investigators have been confirmed. We also discovered that some of the governors nominated these consultants.”

The source declined to name the seven governors, stressing that the details will be released as soon as the investigation is concluded.

Responding to a question, the source said one of those questioned actually admitted that he changed some of the funds into dollars and handed it over to a principal officer of the National Assembly.

Besides, he insisted that the EFCC had no any agenda against the governors, adding: “It has no basis to run the NGF down at all, but you should know that the Presidency is interested in how these London-Paris Club refunds were spent.

“We know the governors have immunity, but certainly NGF does not enjoy such constitutional protection. We are looking at what informed the transfer of such funds into the accounts of the NGF and for what purposes.

“Once the purposes are in line with statutory financial regulations and the EFCC is satisfied, the case is closed. But where there are cases of diversion and stealing of public funds, the law will take its course.”

The Federal Government released N388.304billion of the N522.74 billion funds to 35 states as refunds of overdeductions on London-Paris Club loans.

States on top of the list with huge reimbursements are those controlled by the opposition Peoples Democratic Party (PDP) contrary to their claims of being oppressed by the administration of President Muhammadu Buhari.

The big earners are Akwa Ibom, Bayelsa, Rivers, Delta, Katsina, Kaduna, Lagos, Imo, Jigawa, Borno, Niger, Bauchi,and Benue.

Only Kano State and the FCT did not benefit from the reimbursement.

Ondo was only paid 50 per cent of its refunds (N6,513,392,932.28) because of leadership change in the state which will soon lead to the inauguration of the Governor-elect, Mr Rotimi Akeredolu.

A breakdown of the list of top beneficiaries of the refunds is as follows: Akwa Ibom – N14,500,000,000.00; Bayelsa – N14,500,000,000.00; Delta—N14,500,000,000.00; Katsina -N14,500,000,000.00; Lagos – N14,500,000,000.00; Rivers

-N14,500,000,000.00; Kaduna – N14,362,416,363.24; Borno-N13,654,138,849.49; Bauchi – N12,792,664,403.93; Benue – N12,749,689,453.61; Sokoto—N11,980,499,096.97; Osun– N11,744,237,793.56; Anambra– N11,386,281,466.35; Edo– N11,329,495,462.04; Cross River – N11,300,139,741.28; Kogi – N11,211,573,328.19; and Kebbi – N11,118,149,054.10.

The Federal Government reached a conditional agreement to pay 25% of the amounts claimed, subject to a cap of N14.5 billion to any given state.

Balances due thereafter will be revisited when fiscal conditions improve.

“Mr. President’s overriding concern is for the welfare of the Nigerian people. considering the fact that many States are owing salaries and pension, causing considerable hardship,” the government said.

THE NATION had exclusively reported that the presidency was uncomfortable with the funds management by governors.

A source in the Presidency, who spoke in confidence, said: “President Muhammadu Buhari has lived up to his pledge to ease salary crises in all the states by releasing N388.304billion to 35 states.

“The agreement between the Federal Government and the governors was very clear. While 50 per cent of the amount released shall be used to offset outstanding salary and pension arrears, the remaining 50 per cent would be used for the payment of other obligations.

“Some governors have however reneged on this agreement. Security reports available to the Presidency showed that Governor Ayodele Fayose paid only one month out of eight-month salary arrears.

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Fire guts Senate chief whip’s office

The office of Senate chief whip, Senator Francis Alimikhena was on Monday gutted by fire.

The fire incident was said to have destroyed some electrical appliances in the lawmakers’ office.

Alimikhena is the Senator representing Edo North senatorial district in the senate.

Details later…

Dani Alves: Barca too ungrateful for my liking

Dani Alves has slammed his former side Barcelona for their ‘false and ungrateful’ attitude towards him, claiming it was the reason why he ultimately decided to depart for Juventus.

The Brazilian was able to bring an eight-year spell at the Nou Camp to an end last summer after activating a peculiar termination clause in his contract.

Months of speculation meant it came as little surprise to the press but, considering their troubles at right-back this season, Barcelona were evidently not prepared.

Alves, 33, says the La Liga champions only have themselves to blame with regards to his exit, claiming the hierarchy has ‘no idea’ how to treat their players properly.

The defender told ABC: ‘During my last three seasons I always heard that “Alves was leaving”, but the managers never said anything to me. They were very false and ungrateful. They did not respect me.

‘I was only offered to renew when the FIFA transfer ban came in. That was when I went and signed a deal with a termination clause. Those who run Barcelona today have no idea how to treat their players.’

One person who would have been glad to see Alves pack his bags and leave the Spanish top flight was Cristiano Ronaldo. The pair had been involved in a bitter feud for several seasons with Alves regularly taunting the Real Madrid star via the

media.

But Alves claims his apparent disregard for Ronaldo was invented by the press and says that he actually has a tremendous amount of respect for the four-time Ballon d’Or winner.

‘If people only knew how much I respect Cristiano Ronaldo. I will repeat it to make myself clear: I respect Cristiano Ronaldo.

‘When I spoke about him being too selfish, when you win you are going to be the star but when you lose they will go for you, so I said it in a very respectful way.

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Nigeria’s debt hits N17.36tr, says DMO

Nigeria’s total debt profile as at December 31 last year was $57.39 billion (N17.36 trillion), Director-General of the Debt Management Office (DMO), Abraham Nwankwo said yesterday.

He spoke during his defence of the agency’s 2017 budget before the Senate Committee on Local and Foreign Debts in Abuja.

Nwankwo said the amount included domestic and foreign debts. Giving a breakdown, he said the external debt profile stood at $11.41 billion (N3.48 trillion), while the domestic debt stock was $45.98 billion (N13.88 trillion).

He said the N17. 36 trillion included debts of the Federal Government, the 36 states and the Federal Capital Territory (FCT).

The D-G said the difference was due to the projected debt service payments in respect of new financing that was not fully utilised, as only few loans became effective during the period.

He pointed out that the domestic debt stock of the Federal Government, 36 states and the FCT accounted for about 80 per cent of the total debt, while their external debt stock accounted for about 20 per cent.

He assured that though Nigeria’s debt profile was on the increase, it was not in a precarious economic situation that would warrant seeking for debt relief. Nwankwo added that in spite of the recession, the economic indices had not portrayed Nigeria as a weak economy to warrant seeking for debt relief.

“Nigeria is not in a position to beg for debt forgiveness. In spite of the present state of the economy, the country is still counted as a strong economy among other countries,: he said.

The economic indicators show that Nigeria has a strong economy,’’ he said.

He said if borrowing would be genuinely committed to infrastructural development, it would go a long way in the move to develop the economy.

On repayment of the debt, he said the Ministry of Finance was making effort to expand the nation’s tax base.

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Stock market continues to bleed as 25 equities record price losses

THE bearish trend in the stock market continued unabated last week as 25 quoted companies witnessed different degrees of price losses, thereby resulting in decrease in investors’ wealth by N61 billion. Among the stocks tat depreciated in price last week were Vitafoam Nigeria Plc which led other decliners by 13.04 per cent from N2.30 to N2.00 per share. This was trailed closely behind by Fidson Healthcare Plc with negative return of 11.40 per cent to close at N1.01, followed by Nigerian Breweries Plc with drop of eight per cent to close at N115.00 per share and Chemical and Allied Products, CAP, Plc which fell by 7.50 per cent to close at N29.60 per share. Other price losers include Eterna Plc, that went down by 6.70 per cent to close at N3.34 per share; Axamansard Insurance Plc, 6.25 per cent to close at N1.50; Guinness Nig. Plc, 6.23 per cent decline to close at N60.95; Stanbic IBTC Holdings Plc, 5.90 per cent to close at N16.75; Diamond Bank Plc, 5.75 per cent to close at N0.82, while NASCON Allied Industries Plc was down by five per cent to close at N7.03 per share.

Consequently, the market capitalisation, which represents investors’ wealth, depreciated by N61 billion, falling from N8.770 trillion during the previous week to N8.709 trillion, while the All Share Index, ASI, slumped to 25,164.91 points, representing 0.69 per cent decrease respectively. Similarly, all the other indices closed lower within the week. The NSE 30 Index also decreased by 1.11 per cent to 1,104.90 points while the NSE banking index, NSE insurance index and NSE consumer goods index fell by 4.4 per cent, 1.75 per cent and 4.63 per cent to close at 276.15 points, 122.61 points and 569.06 points respectively.

Read more at: http://www.vanguardngr.com/2017/02/stock-market-continues-bleed-25-equities-record-price-losses/

Passengers groan under dollar scarcity, hoarding at airports

Air passengers were thrown into confusion at the weekend when Bureau de Change (BDC) outlets at international airports nationwide declared foreign exchange, especially dollar, out of stock.

Notable BDCs like Travelex, Sulah, Bossy Clean Exchange and Ibro Resources that had often sold at about N400 to a dollar, all declared “no dollar” to all outbound passengers.

Intending passengers travelling on business trips were forced to devise alternative means to go on with their travel plans or simply returned home after loitering around the unyielding BDCs.

Travel agents, who blamed the BDCs for hoarding, were worried about the development, describing it as “killing” to the air travel business and loss of revenue to parties concerned.

A visit to the Murtala Muhammed International Airport (MMIA), Lagos, yesterday revealed that though the BDCs were open to customers, none of them was ready to sell. Electronic boards indicated “we buy N398 to $1” and “sell for N400 to $1.” Except for Travelex that boldly pasted: “Sorry, we are out of stock”, others merely turned back travellers with “no dollar” response.

An official of Sulah BDC told The Guardian that they had no dollar to sell because “people have failed to sell to us.”

A Dubai-bound passenger, Elizabeth, said the BDCs had often been the most reliable source for travellers to get dollar and at comparatively good rate, but was surprised to find them with no stock since last week.

She said: “I’ve been searching for a dollar equivalent of just N4 million since last week. I was actually prepared to travel only to find that there was no dollar anywhere. Ordinarily, Traveler would still have given $1000 if you can prove that you are travelling and go on to buy from others at higher rates. This time, none of them wanted to sell a cent. It is so pathetic.”

Meanwhile, on the streets and outside the airport, mobile BDCs otherwise called mallams were selling in trickles of $100 at N510 to N550.

Eniola Adesanya, who is bound for United States, had to do “trade by barter” with some overseas-based family members planning to send some money to their relatives in Nigeria.

Adesanya told The Guardian that the method was her saving grace. “I had to start calling them to ask if they plan to send money to Nigeria. It is like giving them a loan, which I have paid to their relatives here. So, they will give me a refund in dollar in the United States.

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