ICAN accredits 32 tertiary institutions, centres

The Institute of Chartered Accountants of Nigeria has accredited no fewer than 11 tertiary institutions and 21 tuition houses.

The accounting body said the move was in line with its statutory mandate of setting standards and regulating the practice of the accountancy profession in the country.

The President, ICAN, Deacon Titus Soetan, during the presentation of certificates to the beneficiaries at the institute’s office in Lagos, said the need to initiate quality control and improve the level of pass rate of students in its various accounting examinations necessitated the exercise.

               

Soetan pointed out that the accreditation reaffirmed the institute’s commitment to high technical standards, and would also facilitate the choice of academic institutions/tuition houses by students in their quest for accounting knowledge.

This move, he said, would further enhance professionalism in the accounting profession and align the quality of knowledge dissemination by the institutions to global standards.

The ICAN president said, “As a professional body, we are committed to technical excellence. The institute proactively began to accredit institutions of higher learning and tuition houses when it realised the need to initiate quality control and improve the level of pass rate of students in its various examinations.

SOURCE: http://punchng.com/ican-accredits-32-tertiary-institutions-centres/

How to invest in FGN savings bond

The FGN savings bond was introduced into the market on March 7, 2017 as a result of market restructuring that saw the upward review of the minimum subscription for treasury bills and bonds in the primary market from N10,000 to N50m. This means that investors or group of investors that cannot come up with the minimum subscription of N50m will have to buy from the secondary market, or subscribe to the FGN savings bonds that have much lower minimum subscription requirements of N5,000 minimum.

Before I proceed further, I want to make further clarifications regarding some terms based on questions and feedback I have received so far. The primary market is where you buy directly from the issuer. It is like buying drinks directly from the manufacturer (wholesale). You do that by going through your bank, stock broker or discount house. The secondary market is where you buy from someone who bought from the primary market and wants to re-sell (retail). It is like going to a supermarket to buy drinks – you are buying from someone who bought from the manufacturer.

Brokers usually deal with both primary market and secondary market transactions. That means you do not have to look for another broker when you want to trade in the secondary market, unless you have reasons to. For example, the broker also has a minimum amount they sell to the public based on who their target clients are. It is possible that the minimum amount the broker is ready to accept is too high for you. In that case, you need to look for another broker that will accept the amount you have. If you still cannot find one, then you may have to save up until your money is enough. There are investment products you can use to save monthly until you arrive at the amount you want.

Investing in FGN savings bond

Investing in FGN savings bond is as simple as visiting one of the stock broking firms accredited by the Debt Management Office and fill out the required forms. The DMO is responsible for issuing bonds on behalf of the Federal Government. You can download the current list by visiting the DMO website, www.dmo.gov.ng. You will be required by the stockbroker to open an account with them so that you can deal through them (if you do not have a stockbroker who is already is accredited). Whether you end up opening the account or not, you will be better informed than someone sitting at home asking questions but doing nothing. Taking that first step seems to be the biggest challenge people have.

Investing in fixed income securities is virtually risk-free, so there is no point analysing endlessly an investment that carries no risk. It does not make sense. What should concern you is how to enter, how to exit and how investing in bonds fits into your financial goals and plan. You must have a reason for wanting to invest in bonds. Once you are clear, just step forward and take action. Any additional questions you may have will be answered by the broker.

FGN savings bond is issued by the DMO on behalf of the Federal Government of Nigeria, targeted at low-income earners to encourage savings and to earn income (interest) at competitive rates. The interest earned on FGN savings bond is tax free. This means you can grow your money faster.

Interest earned from FGN savings bond is paid quarterly – every three months – into your account as indicated in the submitted subscription form. The interest is calculated per annum (year). This means if you invest N100,000 in FGN savings bond at 13 per cent, you will be paid N13,000 per year. That means every three months, you will get a credit alert of N3,250, which adds up to N13,000 per year. If you think the interest is too small, you need to increase your investment. That may require you to start saving more and consistently rather than spend on things that will not improve your future. If you are focused, you can keep growing your money to the point that your interest is enough to feed your family.

Minimum subscription for FGN savings bond is N5,000 with a maximum of N50m. Some brokers may not accept N5,000 as stated earlier. You will be told the minimum they accept. If you do not have enough money, you can check with another broker. You can simply call them to find out rather than go door to door. Also, it is better to save up your money to a reasonable amount before you invest in bonds because if the interest is too small, you will be discouraged.

The tenor of FGN savings bond is two to three years. The interest rate is determined by the issuer and is usually stated in the offer for subscription adverts. Offer for subscription is open to the public and it takes place every month, and usually lasts for a week. During that time, you can visit your stockbroker to fill out your subscription form and fund your account. After close of subscription, you will be notified if your subscription was successful. You can decide to take part in every subscription or add your money together and subscribe once in a while. It is important you have a goal you are working towards so that you invest with a plan and focus.

If you want your money to grow faster, you can add your interest to your savings account and use it to buy another bond later, rather than spending the money. If you grow your interest big enough, it becomes another source of income you can fall back on in future, in the event you lose your job or your pension income is not enough to support you.

Nigeria’s revenue can’t sustain interest payment on debt – W’Bank

Although Nigeria’s total current debt is relatively low compared to the Gross Domestic Product, the interest rate payment is not sustainable by current revenues, the World Bank has said.

Senior Economist at World Bank office in Nigeria, Yue Man Lee, said this in Abuja on Wednesday on the sideline of the release of the 15th edition of Africa’s Pulse, an analysis of issues shaping the continent’s economic future.

For the interest payment to be sustainable, according to Lee, the country either has to increase its revenues or work towards balancing the debt profile to make way for more foreign debt rather than allow the continued dominance of local debt with high interest rates.

                     

She said, “Nigeria’s debt to GDP ratio is relatively low. What is of concern is the ratio of interest payment to revenue. That is what is concerning. This reflects the fact that there has been a massive drop in revenues because of the drop in oil revenues.

“There are two main strategies to reduce this debt burden. One is to increase the revenues. Here, in order not to be vulnerable to the volatility of the oil sector, the critical thing is to increase the non-oil revenues like the VAT, the income taxes and the excises outside of oil. This is something we have been discussing with the government about.”

Lee added, “The other area in terms of interest payment is to look at the debt profile. Right now, most of the debt is domestic debt – short term domestic debt – and so, the government has already expressed the strategy to move towards external longer-term debt. You have seen them issuing Euro-bonds successfully as part of that strategy.

“The key thing for us in terms of sustainability of the debt profile is raising revenues. That is just the key thing.”

Lee also spoke on the nation’s continuing foreign exchange crisis, saying that further liberalization could lead to depreciation of the naira, but predicted recovery after a short while.

SOURCE: http://punchng.com/interest-on-nigerias-debt-not-sustainable-by-revenues-wbank/

ISPON seeks N100b bailout for software industry

The President, Institute of Software Practitioners of Nigeria (ISON), Olorogun James Emadoye has advised the Federal Government to declare a state of emergency on the software sector. He also wants the government to establish a N100billion litmus package as bailout for what he called ‘Strategic National Software Development Ecosystem.’

Emadoye who spoke during this year’s President’s Dinner with: Software as a tool for national transformation as theme, in Lagos, said Nigeria is ripe for a strategic legislation on software if the country must change the tide that has turned it into a digital colony of the 21st century.

He said: “You may have heard that the 2016 budget had well over N15billion provision for ‘Computer Software Acquisitions’. ISPON was excited when it came across this figure in the approved budget and took the initiative to inform Ministries, Departments and Agencies (MDAs) on the need to patronize software Nigeria in the real meaning of software Nigeria and not foreign software that are sold by installation and customizing agents in Nigeria. ISPON believes that such effort at the use of made-in-Nigeria software will create millions of jobs for Nigerians and set the country on the path of self-sufficiency in software. “If 70 per cent of the over N15billion had been spent for software in Nigeria, the impact would have been felt in all facets of the economy – with ability to generate many billions of naira along the value chain.”

He said Nigerians are smart people and should be able to serve their needs in software, earn foreign exchange from software sales and conserve unnecessary wasteful spending of the scarce foreign exchange currently earned from oil. He added that the overall goal is increasing earnings and contributing at least, nine per cent to the gross domestic product (GDP) from locally produced software products and services.

“We therefore call on the government of President Muhammadu Buhari to support, sustain and accelerate intervention in this sector by passing special legislation to ensure that all MDA use locally produce software for all their computerization efforts; ensuring that NOTAP (National Office for Technology Acquisition & Promotion) work and collaborate with NITDA (National Information Technology Development Agency) and ISPON before approving software payment from our scarce dollar resources; ensuring that CBN (Central Bank of Nigeria) collaborate with NITDA and ISPON before allowing transfer for all software purchases,” he said.

Others are ensuring that 30 per cent of all software payment for foreign products approved for payment through the collaboration of NITDA, ISPON, CBN and NOTAP is retained in Nigeria for the development of local capacity in Nigeria; .mandating the Bank of Industry (BoI) to expedite actions to establish the N5billion Software Development Fund of which ISPON has already submitted position paper and start disbursing to deserving companies and software producers immediately for the development of the sector; and mandating all the telcos, through Nigerian Communications Commission (NCC) to make available to software producers codes, Application Programming Interface (API) and other programmes for building software for the telecoms industry.

SOURCE: http://thenationonlineng.net/ispon-seeks-n100b-bailout-software-industry/

Nigeria loses Africa’s top oil producer position to Angola

Nigeria’s crude oil production fell by 156,900 barrels per day (bpd) to 1.269 million bpd in March, from 1.426mbpd recorded in February. Consequently, the country lost its status as Africa’s top oil producer to Angola, according to latest data from the Organisation of Petroleum Exporting Countries (OPEC).

With the cumulative loss of 4.8 million barrels in the month under review put in cost at the prevailing $55.89 per barrel for Brent crude, Nigeria is estimated to have lost over $271.8 million (N82.8 billion).

Going by the Federal Government’s 2017 budget proposals, the sum could have substantially funded the expenditure for water resources, put at N85 billion. This is particularly important, given the outbreak of leprosy in some parts of the northern region due to the absence of potable water.

                          

The Nigerian subsidiary of Royal Dutch Shell Plc had shut down the Nembe Creek Trunk Line, which exports Bonny Light crude oil, in order to remove theft points.

The Managing Director of Shell Petroleum Development Company (SPDC), Osagie Okunbor, had said the company was working to remove a significant number of oil theft connections and effect repairs on the pipeline.

The line, operated by Aiteo, is one of two along with the Trans Niger Pipeline that carries Bonny Light crude oil to the export terminal.SPDC has, however, completed the repair work and production is expected to peak in the next monthly report, while exports of roughly 232,000 bpd had been planned for this month.

Angola, which has been working hard to remain Africa’s top producer, climbed to the top again for being able to maintain a daily production of 1.652 million barrels since January, even though it is a drop from last quarter of 2016 levels of 1.736mbpd.

Nigeria recorded the biggest drop in output in March among its peers in OPEC, followed by Saudi Arabia, the group’s biggest producer. The 13-member cartel, in its latest monthly oil market report for April, said Nigeria recorded the biggest decline of about 157,000bpd in the period under review.

According to OPEC, its members pumped a combined 31.93 million barrels daily last month, down by 153,000 bpd from February. Saudi Arabia was said to have produced 9.9 million bpd in March, more than 100,000 bpd below its monthly quota under the production cut deal.

OPEC said crude oil supply from non-members this year would average 57.89 million bpd due to growing output in the U.S. and modest declines in Colombia and China.

The figure is 176,000bpd higher than what OPEC projected in February for the non-members.In the U.S. alone, the cartel predicted that production would grow at an average rate of 540,000 bpd, up from last month’s forecast of a 340,000 bpd growth rate.

SOURCE: https://guardian.ng/news/nigeria-loses-africas-top-oil-producer-position-to-angola/

CBN introduces ‘Form X’ for SMEs, naira closes at 410/$

The Central Bank of Nigeria has introduced “Form X” for the Small and Medium-scale Enterprises seeking to purchase foreign exchange from the apex bank.

The CBN said the decision was part of its commitment to increase forex liquidity and improve access by the SMEs and retail businesses to forex.

The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, who confirmed this on Monday, said that the measure was intended to ease documentation challenges usually encountered by this category of businesses.

He further explained that the new form, which must be completed by all the SME applicants required the applicant to fill the form with a supporting application letter as well as beneficiary invoice and bank wire transfer.

The objective of the new guideline, he added, was to remove obstacles usually encountered by those whose forex needs for either visibles or invisibles were as small as or less than $10,000.

He reiterated the apex bank’s determination to continue to ensure adequate supply of forex for genuine transactions in the coming days.

The introduction of the ‘’Form X” was coming barely one week after the CBN opened a special forex window for the SMEs.

Meanwhile, the naira closed at 410/dollar on the parallel market on Monday, the last day of the Easter holidays.

SOURCE: http://punchng.com/cbn-introduces-form-x-for-smes-naira-closes-at-410/

NNPC didn’t remit $81.2bn in four years – Reps’ panel

The House of Representatives believes that the Nigerian National Petroleum Corporation did not remit a total of $81.2bn crude oil proceeds to the Federation Account in four years.

Its ad-hoc committee, which is investigating the alleged export of $17bn worth of undeclared crude oil and gas resources, has demanded explanations from the corporation.

The investigation covers the year 2011 to 2014.

Our correspondent gathered on Monday that the committee, which is chaired by a member of the All Progressives Congress from Adamawa State, Mr. Abdulrazak Namdas, had analysed documents from various sources, including the Nigerian Extractive Industries Transparency Initiative, Central Bank of Nigeria, Department of Petroleum Resources and the NNPC itself before coming to the conclusion.

In its set of questions sent to the NNPC, a copy of which was obtained exclusively in Abuja, the committee noted that the total receipts from crude proceeds for the four years tallied at $123.9bn.

However, lawmakers found out that the NNPC remitted only $42.7bn to the Federation Account, “giving a frightening shortfall of $81.2bn.”

The average crude oil prices per barrel for the respective years were $111.90 (2011); $112.01 (2012); $110.12 (2013); and $101.91 (2014).

The barrels sold for the respective years were 301.7 million; 296.4 million; 267.1 million; and 270.7 million, bringing the total for the four years to 1.136 billion barrels.

According to the committee, the year-by-year breakdown of the expected earnings were $33.7bn (2011); $33.2bn (2012); $29.4bn (2013); and $27.5bn (2014), totalling $123.9bn.

But, the committee said the corporation declared only $42.7bn, a figure which was confirmed by the CBN.

This was broken down into $14.3bn (2011); $10.2bn (2012); $8.4bn (2013); and $9.8bn (2014).

“The committee’s worries are anchored on the fact that out of the expected receipt of $123.9bn, the CBN confirmed a total receipt of only $42.7bn, giving a shortfall of $81.2bn,” the document stated.

In addition, the NNPC was asked to explain the conflicting reports by the corporation and the DPR on crude lifting from Pennington in 2011.

While the NNPC claimed that 991.4 million barrels and 960.4 million barrels were lifted in May and October, respectively, the DPR reported that there was only one lifting of 960.4 million barrels in October.

“The committee wants you (NNPC) to prove how the sale of 991.4 million barrels of crude oil was consummated,” the document added.