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/