The National Emergency Agency (NEMA) has confirmed five persons dead in an accident involving four vehicles at Igando area of Lagos State in the early hours of Tuesday.

The News Agency of Nigeria (NAN) reports that the accident involved three trucks loaded with alcoholic drinks and a Honda salon car.

The accident occurred near the Igando General Hospital in Alimosho Local Government Area of the state.

The Spokesman of NEMA, Mr Ibrahim Farinloye, NEMA, who confirmed the accident, told NAN that the corpses have been deposited at the morgue of the hospital.

He said that the victims, who were all male, were burnt beyond recognition.

Farinloye said that two other victims with serious injuries were rescued and taken to the same hospital.

“The accident happened in the early hours of Tuesday and five male roasted bodies were recovered, while two others who also suffered burns were rescued.

“They have been taken to the general hospital near the accident’s scene.

“Men of the State Fire Service are currently fighting to put out the inferno resulting from the accident,’’ he said.

In another incident, six lock-up shops, beside the Great Nigeria Insurance House on Martins Street, Lagos went up in flame on Tuesday morning.

The NEMA spokesman, who gave the hint, however said that there was no casualty.

Farinloye said that many goods were destroyed by the early morning fire.  (NAN)

The Nigerian Ports Authority (NPA) on Tuesday said that eight ships laden with petroleum products had arrived the Lagos ports.

NPA said in its daily publication, “Shipping Position’’, said that seven other ships also arrived with food items.

“Five of the eight ships contain petrol while others are laden with kerosine, diesel and aviation fuel.

“The food items are rice in bags, buckwheat and frozen fish, ‘’ it said.

According to the publication, NPA is expecting 57 ships to arrive the ports from Nov. 4 to Nov. 27.

The NPA said that some of the expected ships would come in with containers; while others would sail in with food items.

It said that other ships would sail in with general cargo, petroleum products and trucks.  (NAN)

Gov. Babatunde Fashola of Lagos State

Gov. Babatunde Fashola of Lagos State has indicated his intention to present the 2015 budget proposal of the state to the House of Assembly on Nov.10.

Dr Ajibayo Adeyeye, the Majority Leader of the house, made this known at the plenary on Tuesday following a message sent to the lawmakers by the governor.

The News Agency of Nigeria (NAN) reports that the budget presentation will be the last by Fashola as the state governor, as his two terms in office will end in May 2015.

NAN recalls that Fashola had, in November 2013, presented a budget proposal of N489.690 billion for 2014 to the House for consideration and ratification.

The proposal, which was approved, was made up of recurrent expenditure of N234.665 billion and capital expenditure of N255.025 billion.(NAN)

Alhaji Umar Ibrahim

The Nigeria Deposit Insurance Corporation (NDIC) on Tuesday said that total deposits of commercial banks stood at N17.16 trillion as at September 2014.

The NDIC Managing Director, Alhaji Umar Ibrahim, said this during an oversight visit by members of the House Committee on Banking and Currency to the corporation’s office in Lagos.

Ibrahim, who briefed the committee on the corporation’s activities, said that the deposits as at September 2014 showed an increase of N41billion over the N16.75 trillion recorded as at December 2013.

He said that total assets of banks rose from N28.76 trillion as at December 2013 to N30 trillion as at September 2014.

The managing director said that banks’ total loans and advances went up from N10.04 trillion as at December 2013 to N11.52 trillion as at September 2014.

He said that this represented an increase of N1.48trillion.

Ibrahim said that the non-performing loans of banks declined from N321.66 billion as at December 2013 to N298 billion as at September 2014.

He, however, said in the period under review, NDIC provided deposit insurance coverage to 24 banks, 832 Micro Finance Banks (MFBs) and 82 Primary Mortgage Banks (PMBS).

The NDIC boss said that the corporation examined 196 MFBs and found that while most of them had inadequate capital, only 20 had Portfolio at Risk (PAR) ratio of five per cent.

He said the corporation recorded a cumulative payment of N2.75 billion to depositors of 103 closed MFBs as at Sept. 30, 2014. (NAN)

The market indices of the Nigerian Stock Exchange (NSE) on Tuesday dropped further by 1.6 per cent due to profit-taking embarked upon by investors.

The News Agency of Nigeria (NAN) reports that the All-Share Index which opened at 37,343.85 lost 599.39 basis points to close at 36,744.46.

NAN reports that similarly, the market capitalisation dropped by N198 billion to close at N12.17 trillion against N12.36 trillion achieved on Monday, following huge losses by highly-capitalised stocks.

A breakdown of the price movement chart showed that Nigerian Breweries led the losers’ chart with a loss of N5.56 to close at N155.94 per share.

Lafarge Wapco followed with N5.22 to close at N99.28, while 7UP lost N5 to close at N155 per share.

Forte Oil dropped N3.85 to close at N208.15, while Dangote Cement dipped N3.61 to close at N208.89 per share.

Conversely, International Breweries topped the price gainers’ chart, appreciating by 21k to close at N31.51 per share.

GT Bank grew by 11k to close at N25.31, while Access Bank garnered 10k to close at N8.50 per share.

Ikeja Hotel appreciated by 8k to close at N2.78 and Cutix improved by 7k to close at N1.59 per share.

However, the volume of shares traded increased by 164.01 per cent with a total of 752.77 million shares worth N4.18 billion transacted in 4,997 deals.

This was in contrast to 285.13 million shares valued at N3.29 billion exchanged in 4,306 deals.

The Financial Service sector remained the most traded, accounting for 685.6 million shares worth N2.58 billion in 3,028 deals.

The Insurance Carrier, Brokers and Service sector trailed with 496.79 million shares valued at N251.38 million achieved in 256 deals. (NAN)

The price of crude declined further to $82.96 yesterday increasing apprehension over the 2015 budget proposal put forward by the federal government.

Meanwhile, the Nigeria Stock Exchange, NSE All Share Index dropped to 13-month low and government bonds fell yesterday as foreign investors pulled out of Nigerian assets, prompting the central bank to sell intervene in the foreign exchange market with special foreign exchange sales, to save the naira from depreciation.

Yesterday, the price of global benchmark crude oil, Brent crude fell by $1.82 to N82.96 per barrel, its lowest since October.

This was triggered by the decision of Saudi Arabia to cut sales price of crude oil to the United States. U.S light crude dropped by $2.00 at $76.78 a barrel, after going to as low as $75.84 per barrel in the day’s trading, it’s weakest since October 2011. Light crude discount to Brent hovered around $6.

The Federal Government had a couple of days ago, proposed $78 as the benchmark for the 2015 appropriation against the $77.5 per barrel in 2014.

The Federal Government in the 2015-2017 medium term expenditure framework, MTEF, and FSP also has the oil production projection at 2.2782 million per barrel daily, mpbd, which is lower than the 2014 oil production projection of 2.388mbpd.

Saudi Arabia increased its December official selling prices (osps), relative to benchmarks, to Asia and Europe on Monday, but lowered prices to the United States, a smaller export market.

“This is mixed news, and the fact that the positive angle has not made an impact shows that market sentiment is very negative at the moment,” Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt, said.

Reuters reported that a growing supply glut in the United States has led more than a dozen oil producers to create a new lobby group, Producers for American Crude oil Exports (PACE), which seeks to end the country’s 40-year ban on crude exports.

U.S. commercial crude stocks are likely to have risen last week, according to a survey by Reuters, which if confirmed will be the fifth consecutive weekly stock build.

Reuters further stated that the absence of clear signs that the Organization of the Petroleum Exporting Countries (OPEC) could curb output at its November 27 meeting also weighed on prices.

Less than one month before the meeting, there is no consensus among trading houses as to whether OPEC members will agree on a cut, it stated.

“I can see OPEC and Saudi Arabia playing the long game. a low price for a period of time may actually play into the hands of people with a lot of reserves in the ground at cheap cost,” Pierre Lorinet, chief financial officer of Trafigura, said at the Reuters global commodities summit.

Ian Taylor, chief executive of Vitol, said at the Reuters summit that OPEC members would have “serious discussions” about an output cut.

“My feeling is we’re underestimating now the possibility of OPEC cutting,” he said.

”Members Venezuela and Ecuador are working on a joint proposal to defend oil prices, but the united arab emirates oil minister said the country is “not panicking”.

Ali Al-Naimi, the oil minister of OPEC‘s largest producer Saudi Arabia, has made no public comment on the oil market since September.

Vanguard

The Director General, Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, has advised the prequalified bidders in the Guided Liquidation of NITEL/MTEL to strictly stick to the Friday deadline for the submission of the technical and financial proposals, warning that no proposal will be entertained “even if it is one minute after the closing time for submission.”

Speaking in Abuja while declaring open a pre-bid conference for the guided liquidation of NITEL/MTEL, organised by the liquidator, he added that bidders were free to submit their proposals before the deadline, but emphasised that bidders must endeavor to submit their proposals as scheduled, adding that the bureau is a stickler of time and deadlines without any compromise.

According to a statement by the privatisation agency, the conference had the two prequalified bidders and other telecommunications stakeholders in attendance and was meant to provide a platform for prequalified bidders to seek clarification and resolve issues that might  arise prior to preparing their technical and financial proposals, given that they have concluded a two-week data room and physical due diligence.

The two prequalified consortia are Messrs NETTAG Consortium and Natcom Consortium.

The DG noted that the pre-bid conference is an important milestone in the privatisation of NITEL and MTEL.

In his overview of the liquidation transaction, the Liquidator, Chief Olutola Senbore, noted that the objectives of the current exercise include the disposal of assets and business units of NITEL and MTEL as one entity; and the need to select bidders/investors through a competitive bidding system that have the technical and financial wherewithal to continue to run the two telecomm giants as going concerns.

He also noted that the preferred bidder “must have the capability to turn around the business acquired into first class telecommunications companies.”

Senbore said the exercise was different from past ones because it is a disposal of assets and businesses without encumbrances since they are free of liabilities.

He said the transaction “by way of guided liquidation is more plausible, more bankable and more attractive.”

Senbore said due diligence would be continuously conducted on the bidders “including security checks as appropriate, and after the opening of financial bids, negotiation with the preferred and reserved bidders would commence to resolve any outstanding issues, especially  on the Post Acquisition Plan.”

The National Council on Privatisation (NCP)  had on February 27, approved the sale of NITEL/MTEL through guided liquidation after several failed attempts in the past to privatise the enterprises. Under the guided liquidation strategy, NITEL and MTEL are to be sold as a single lot to a qualified bidder by a liquidator under the guidance of the bureau.

Senbore whose appointment was confirmed by the Federal High Court sitting in Abuja on March 14, 2014 had commenced the process on March 25 and appointed professionals to work with him as required under the law.

Members of Committee of Inspection (COI) were appointed from significant creditors including equipment vendors, Debt Management Office, First Bank Plc and others.

THISDAY

Minister of Industry, trade, and Investment, Dr Olusegun Aganga.

The accreditation of Standards Organisation of Nigeria’s (SON) laboratories will stop the rejection of Nigerian commodities at the international market, says the minister of Industry, trade, and Investment, Dr Olusegun Aganga.

Aganga said this in Abuja on Thursday while being presented with the WHO/International Laboratory Accreditation Co-operation (ILAC) Certification by the SON’s Director-General, Dr Joseph Odumodu.

The Minister maintained that the years of rejection of Nigeria’s products at the international market were gone, adding, “We can no more export blindly, things have changed.

“We can now analyze, test and standardize our exports in line with international standards”.

Aganga said that Nigeria’s local products would henceforth enjoy high patronage at the global market, following the recent accreditation of SON’s Food Laboratory by the WHO.

The minister also noted that the international accreditation would further help the Federal Government to boost its effort towards diversifying the nation’s economy to the non-oil sector.

According to Aganga, the SON, under Odumodu, has achieved a lot within the past three years, and the issue of quality and standards have come to the front burner of national discourse, due to the spirited efforts of the SON management.

The minister said that with the international certification, local products, especially agro-based and agricultural produce, would no longer be pushovers or discounted at the global market because they would meet international conformity assessment criteria.

He said that the international accreditation of the SON laboratory would boost Nigeria’s chances of helping Small and Medium Enterprises (SMEs) to produce WHO pre-qualified products.

Earlier, Odumodu said that with the ISO 17025 accreditation of the laboratories, Nigeria’s value-added agricultural exports– tested and certified by SON– would now be accepted worldwide without query.

While presenting the certificate to the Minister, Odumodu said the accreditation project, which was sponsored by United Nations Industrial Development Organisation (UNIDO), has launched the SON’s facilities into the league of internationally recognized and respected laboratories.

He said this was a major boost to the country’s image and the agricultural transformation agenda of the Federal Government.

“For one thing, the development would enhance the implementation of the World Trade Organisation’s Sanitary and Physio-sanitary (SPS) and (TBT) Agreement, increase consumer confidence, especially on the international scale of made-In-Nigeria products”.

According to Odumodu, the accreditation will up the ante on the Buy-Nigeria campaign, and reduce the influx of sub-standard goods into the nation.

He noted that Nigeria has now become a reference point in the West African sub-region, as other countries would now lean towards Nigeria for their quality infrastructural development.

Also, Mr Segun Awolowo, the Director-General of the Nigerian Export Promotion Council (NEPC), described the accreditation as a game-changer for the country, as it would immensely lift the non-oil sector.

He said NEPC was one of the major beneficiaries of the feat, in that “Our problem with export is solved. ECOWAS has 60 per cent rejection of export commodities and, ironically, Nigeria was leading. But this is now history.” (NAN)

With the price of crude oil heading south and the country’s foreign reserves under pressure, the Central Bank of Nigeria (CBN) yesterday banned the sale of dollars at its Retail Dutch Auction System (RDAS) to importers of telecoms equipment, power generators and finished products.

Others affected by the ban include importers of electronics, finished products, invisible transactions business and information technology.
However, they can source their foreign exchange requirements from the interbank market and dealers.

Owing to the directive, the naira hit a new intra-day low in almost five years to N170.05 against the dollar yesterday, falling 1.87 per cent as the stock market continued to slide, Reuters reported.

In a circular titled, Exclusion of Some Transactions from the RDAS Window, posted on its website yesterday, the CBN said: “This is to inform all authorised dealers and the general public that in order to maintain the existing stability in the foreign exchange market and to further strengthen the various measures already initiated by the Central Bank of Nigeria, the importation of the following items shall henceforth be funded from the interbank foreign exchange market only: electronics, finished products, information technology, generators, telecommunications equipment, invisible transactions.”

In another circular, the central bank also said it had observed that banks and discount houses now have a preference for keeping their idle balances in its Standing Deposit Facility (SDF), thereby constraining the process of financial intermediation.

In order to encourage banks to increase lending to the productive sector of the economy, the regulator therefore announced a review on the guidelines for the operations of the SDF.

Specifically, it stated that “the remunerable daily placements by banks and discount houses at the SDF shall not exceed N7.5 billion. This shall be remunerated at the SDF rate of 10 per cent per annum.

“Any deposit by a bank and discount house in excess of N7.5 billion shall not be remunerated. These provisions are without prejudice to the subsisting Monetary Policy Rate (MPR) corridor.

“For the avoidance of doubt, the SDF remains as a monetary policy tool.”

According to the banking sector regulator, the MPR corridor remains +/- 200 basis points, that is 10 per cent per annum up to the limit of N7.5 billion.

Reacting to the CBN’s directive on the diversion of demand from CBN’s official foreign exchange window to the interbank market, a market analyst, who preferred not to be named, said: “The objective of this policy decision is to reduce pressure on foreign exchange reserves.

“In October, the CBN used 10 per cent of its foreign exchange reserves to intervene in the foreign exchange market. The last time the CBN used such a large share of foreign exchange reserves, in a month, to intervene was in the second half of 2011 and the central bank devalued the NGN by 5 per cent in November 2011.”

He said the policy decision confirmed that the CBN could not afford to keep intervening in the foreign exchange market to defend the official target exchange rate of NGN150 +/-3%, at the rate it has  been doing in recent weeks, especially in a depressed oil price environment.

“In enacting this policy, the CBN must have expected the interbank exchange rate to weaken. Which makes me wonder if this policy decision is a tacit devaluation” he said.

On the second directive by the central bank, which capped banks’ deposits that earn interest, he termed the move negative for the naira.

“I think this is negative for the naira, because it will result in banks diverting funds to treasury bills, which will put further downward pressure on yields and make them less attractive to foreign investors.”

The market analyst said the fact that both policy decisions were naira-negative, was evident from the depreciation of the naira to its weakest level, NGN171.82/$1, where after it retraced to about NGN170/$1.

“I believe the central bank must have anticipated further naira weakness, and widening in the gap between the official and interbank exchange.

“It is for this reason, I believe this may possibly be a tacit devaluation, or at least a precursor to an explicit one that may be announced at the November 25 MPC meeting,” he explained.

He added that the implication of the policies adopted by the CBN was that the rate of inflation would rise and could have adverse consequences on consumer stocks.

The stock market also remained bearish in yesterday’s trading, as major company stocks depreciated further, with Nestle leading the losers’ chart with a N47.5 loss, to close at N883.

Forte Oil slumped from N208 to N194, while Dangote Cement, the biggest stock in the market, lost N10.4 to close the day at N198.

WAPCO fell to its lowest price of N80 in four years, after shedding N8.73, Nigeria Breweries also took a hit to N143.45 having lost N7.55, while Unilever closed at N29.80, slipping down from N31.35.

Market capitalisation sank to N11.425 trillion, losing N475 billion from N11.9 trillion at the close of trading the previous day.

In another development, the House of Representatives said yesterday that it would collaborate with the Nigeria Sovereign Investment Authority (NSIA), manager of the Sovereign Wealth Fund (SWF), in order to ensure stability of the Nigerian economy.

Chairman of the House Committee on Finance, Hon. Abdulmumini Jibrin stated this when his committee undertook an oversight visit to the NSIA, indicating that the House as a result of the emerging realities of the new oil price regime, was considering returning the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the executive arm of government for review.

“The House is returning the MTEF to the executive arm of government so that the federal government will re-present it properly with attention to be paid to more savings so that agencies like the NSIA can be better supported,” the chairman said.

According to Jibrin, “Everything was good when crude was selling at $110. But not now when it is free falling. We want to see how the situation can be mitigated.

“We are aware that you are faced with two critical challenges of the legal instrument setting you (NSIA) up and your need for more funding,” he noted, pledging that his committee will mobilise the leadership and members of the lower chamber to smoothen out the fine points of the legal issue.”

He said more funds needed to be injected into the NSIA “so that there will be no panic when the price of crude oil again falls in the international market”.

In his submission, the Managing Director of the NSIA, Mr. Uche Orji, while appealing for more funds for the SWF, said: “There is little we can do about oil price fluctuations as an agency. But our survival depends on how much resources we have.

“The effect of oil price risk is not for the NSIA alone but for the whole country. Oil prices will be volatile at, say $100 per barrel, but it will also get to a point where new contracts will get out.

“This reduction will discourage others and at a point it will go away.”

The NSIA began operations two years ago with $1 billion, which it invested as follows: $200m in the Stabilisation Fund, representing 20 per cent of the SWF, while the Future Generation Fund and the Nigeria Infrastructure Fund received forty per cent each.

Out of the 18 areas it listed for investment, it has so far sunk funds into six: power, gas processing, motorways, health care, agriculture and real estate.

THISDAY

Dave Uduanu, Chairman, PenOp

Pension Fund Operators Association of Nigeria (PenOp) says it will begin the deployment of an Electronic Pension Contribution Collection System (EPCCOS) on Jan. 1.

Mr Bayo Yusuf, Managing Director of United Bank for Africa (UBA) Pension Custodians, said this at a 2-day 2014 PenOp Media Partners Retreat on Friday in Lagos.

Yusuf, who is also the association’s Chairman, Sub-committee on EPCCOS, said that the system was to drive pension remittance schedules.

According to him, EPCCOS will unify the way employers remit their various workers schedules as well as ease collections for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs).

”This electronic platform is informed by the lack of specific rules on how employers will submit workers’ schedules for pension to PFAs and PFCs.

”We have been faced with huge challenges of how to reconcile some schedules submitted by employers.

” To tackle these challenges, we have therefore come up with this electronic devise– portal.

”It will ensure that workers are credited adequately and that employers are saved the time of going around one PFA and PFC for reconciliation, ” he said.

Yusuf said that the portal was being developed with the Nigeria Inter-banking Settlement System (NIBSS).

He said the platform had been tested by all the PFAs, PFCs and National Commission on Pension (PenCom).

The Subcommittee chairman on EPCCOS said that the pilot programme test had been carried out among over 500 employers.

He said that whatever problems encountered at this stage would be perfected and that by Jan. 1, the portal would be available for use by all employers.

Yusuf said that the EPCCOS was the pension industry application and employers would use it for free.

Mr Samuel Oluyemi, NIBSS Head, Business Process and Outsourcing, said that the electronic platform ensured that standards were kept in payment facilitation.

According to him, EPCCOS is being introduced to solve the problem of un-remitted pensions and schedules that could not be traced.

He said that once an employer upload its workers’ pension details it would show the total amount remitted, specific PFAs and PFCs and the amount to pay to each of them.

Oluyemi said the employer could make the payments electronically or take the receipt generated by the portal to pay in the bank within seven days.

He said that the payment schedules would still be on the site and would be removed after 30 days.

Ms Susan Oranye, PenOp Executive Secretary, said that the EPCCOS was to enable employers comply with the 2014 Pension Act.

According to her, the employers can do this from the comfort of their offices and avoid sanctions and penalties from PenCom.

She said that new employers to the scheme would– through EPCCOS– find it easy to remit their workers’ pension contributions. (NAN)

The Director General, Nigerian Civil Aviation Authority, NCAA, Captain Usman Mukhtar yesterday revealed that foreign airlines are making fortunes in the Nigerian aviation industry while local airlines are still playing from the fringes.

According to Capt. Mukhtar, the foreign airlines made N231 billion in tickets sales in 2013, while domestic airlines made N73 billion in tickets sales in the same year.

He made this revelation while presenting a keynote address at the 20th Annual Seminar of the League of Airport and Aviation Correspondents (LAAC).

He said “in 2013, the total amount of ticket sold by domestic airlines was N73 billion. On the other hand, the foreign airlines sold tickets worth N231 billion in the same year”.

Continuing he said the “domestic airlines were able to ferry 5 million passengers across Nigeria in 2013.On the West Coast route,277,000 passengers were moved. In Intra – African route 437,000 passengers and on the Intercontinental route 1.4 million passengers were airlifted.”

The NCAA DG who was represented by Alhaji Abdullahi Adamu, the Director, Consumer Protection said all these were achieved with the domestic airlines operating a total of 63,000 frequencies across the country while on the West Coast there were 4000 frequencies, Intra – Africa 4000, Intercontinental 7300 frequencies.

The added that in recognition of the increase in the volume of passengers, the Directorate of Consumer Protection (DCP) has intensified efforts to process complaints and ensure comfort of air travellers.

According to him, “Nigeria has therefore become an attractive destination for foreign airlines and ceaseless application for additional frequencies. At present Nigeria has Bilateral Air Services Agreement, BASA, with 78 countries.

However, some of these are not being utilised. In order to strengthen and widen our BASA with existing and new countries, Nigerian delegates will be attending an ICAO Air Services Negotiation Conference (ICAN 2014) from 17th – 21st November 2014 at Bali, Indonesia.”

Speaking on the impending ICAO audit he said “the ICAO Audit conducted in a few years back, Nigeria scored very high marks. But there is an impending ICAO Audit again and I am sure no one is losing sleep over that as the Authority has proven to be equal to the task.”

Capt. Muktar noted that the global average of compliance to ICAO Safety Oversight Audit is 60 per cent thus all members have subsequently agreed that all African states should strive to attain 60 per cent by the year 2017.

“Let me just intimate you with the strategic objectives of the imminent ICAO audit. The audit is to achieve excellence in Safety, Air Navigation Capacity and efficiency, Security and Facilitation, Economic Development of Air Transportation and Environmental Protection. However, the date is yet to be communicated to us.”

Vanguard

Gov. Babatunde Fashola of Lagos State

Gov. Babatunde Fashola of Lagos State on Friday re-stated his appealed to the Federal Government to give Lagos State a special status to help the city achieve its economic growth.

Fashola made the appeal at the opening ceremony of the 28th Lagos International Trade Fair, holding at the Tafawa Balewa Square, Lagos.

The theme of the fair is: ”Promoting the Nigerian Economy as a Preferred Investment Destination”.

Fashola said that the challenges of infrastructure and security were militating against the nation as a preferred investment destination.

According to Fashola, the state generates about 20 per cent of Nigeria’s Gross Domestic Product and as such the state has remained the economic centre of the nation.

The governor, who was represented by Mrs Olusola Oworu, the state’s Commissioner for Commerce, said that without infrastructure such as electricity, it would be difficult to attract local and foreign investors.

”Without tackling insecurity issues, we cannot make this place (Nigeria) an investment destination.

“We have identified areas such agriculture, transportation, housing and power that will take Lagos to its investment destination but the state needs to be given special status to achieve this,” Fashola said.

Mr Remi Bello, President, Lagos Chamber of Commerce and Industry, said that it was important to create an enabling environment to attract new investments and grow existing ones.

Bello said that time was ripe to build an economy that was diversified and sustainable because oil prices had remained low.

He said it was good that the new status of Nigeria as the largest economy in Africa and the 26th in the world had generated tremendous interest among investors globally.

Mr Ilesanmi Agoye, Vice President, Manufacturers Association of Nigeria, urged the private and public sectors to patronise locally made goods to create job opportunities for the youth.

Agoye said that patriotism was capable of increasing the country’s revenue and to enable it compete favourably with other nations of the world.

Alhaji Mohammed Abubakar, President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, commended the Federal Government for producing the proposed 2014-2016 Medium Term Expenditure framework before the National Assembly.

Abubakar urged the lawmakers to approve the framework without delay.

He advised the government to hasten the process of revisiting the concession of the Lagos International Trade Fair Complex and hand it over to the LCCI for trade promotion activities. (NAN)

CBN Deputy Governor (Economic Policy), Dr. Sarah Alade

The naira appreciated by 2.35 per cent against the United States dollar on Friday after the Central Bank of Nigeria (CBN) sold dollars to prop up the value of the nation’s currency.

The naira closed at N165.90 to the dollar compared with the N169.90 to the dollar the previous day.

CBN Deputy Governor (Economic Policy), Dr. Sarah Alade disclosed to Bloomberg that the central bank intervened in the market to defend the naira after it plunged to an all-time low amid a drop in oil prices.

Alade said: “We are in the market now. We haven’t abandoned the market. We will continue to defend the currency.”

The naira had touched new intra-day lows of N173.02 on Friday amid demand for dollars, partly from foreign investors unnerved by falling oil prices exiting Nigeria and partly from domestic importers worried about the risk of currency devaluation.
Dealers said the central bank sold undisclosed amount of dollars.

“We saw the central bank increase its dollar sales at the interbank market today to counter surging demand and reassure the market of its intention to continue to defend the naira,” one dealer told Reuters.

Traders said the dollar sales by the central bank coupled with flows from the Nigerian National Petroleum Corporation on Thursday further strengthened the local currency.
The central bank on Thursday restricted the sale of dollars to importers of telecoms equipment, power generators and finished products at its foreign exchange auction, funnelling demand towards the interbank market.

The central bank will probably raise its benchmark rate, already at a record high of 12 per cent, to avoid burning through the nation’s reserves after they fell to a three-month low of $38 billion, according to Capital Economics Limited in London.
“The bank is making efforts to defend the currency,” Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu said.

He added: “We don’t want any crash. There is no decision to devalue the currency.
“We believe that the events over the past few days have raised the likelihood of the policy rate being hiked,” Johannesburg-based strategists at Barclays Africa Group Limited, Ridle Markus and Dumisani Ngwenya stated.

“The likelihood of an emergency meeting next week, two weeks ahead of the scheduled meeting, cannot be excluded”, he said.

Analysts at Afrinvest West Africa Limited stated in  report to THISDAY yesterday that the new CBN policy that excludes some importers from the Retail Dutch Auction System (RDAS) of the forex market would “cushion the effect of capital reversal in the medium term and moderately support the accretion of reserve.

“However, the anticipated increased demand at the interbank will exert pressure on interbank rates, widening the spread between the Interbank and official rates further going forward,” they added.

Also, a banking analyst at Renaissance Capital, a financial advisory firm in Lagos, Mr. Adesoji Solanke, said the policy would have more of an implicit asset quality implication for the sector.

He added in note e-mailed to THISDAY: “Customers that are affected by this transfer of their forex demand to the interbank market basically see their imports get 8-10 per cent more expensive (based on where the interbank rate traded today versus the official RDAS).

“Speaking with one of the banks, the rough estimate of the volume of official demand that is getting transferred was put at 30-35 per cent, which is quite significant.
“The rules hurt at a sector level but we see the tier- 2 banks taking more pain on the back of this given their relatively higher exposure to SMEs and lower quality obligors. The ability of the obligors to transfer this cost to consumers also affects their capacity to service open obligations.”

THISDAY

Minister of Trade & Investment, Olusegun Aganga

The Federal Government’s Transformation Agenda for the economy has attracted $59.6 billion foreign direct investments (fdi) into the country from all over the world since 2011-2014.

The investments cut across cement, sugar, petrochemical, automotive industry and have created jobs for Nigerians and revenues for the government.

The Minister of Industry, Trade and Investment, Olusegun Aganga, disclosed this, weekend in Abuja during the ministry’s 4th media workshop with the theme ‘Building a greater nation through sustained transformation.’

‘In 2011 FDI was $15 billion, it increased to $30 billion in 2012 and further went up to $46 billion in 2013 and $59.6 billion current year,” he said.

He attributed the achievement to President Goodluck Jonathan’s Transformation projects for the economy, saying “”In 2011 when we took over, there was no comprehensive and coordinated industrial policy for the country. There was no strategy to diversify our economy and revenue base. The manufacturing contribution to our GDP was very low, at less than four per cent. Capacity utilization was very low, while massive jobs los was prevalent. There was no emphasis on value addition. For decades, our country had specialized in exporting raw materials. We had weak industrial structures and were dependent on importation of most of our products. That was the situation in 2011 before President Jonathan’s administration came on board.

What we did to change the situation was the introduction of Nigerian Industrial Revolution Plan, NIRP, roadmap for industrialisation and linkages to other economic sectors. “In order to reverse the ugly trend by diversifying our economic and revenue base, President Jonathan in February 2013, launched the Nigeria Industrial Revolution Plan (NIRP) as a major game-changer. This was based on the principle that no nation has successfully moved from being a poor to rich nation without a robust industrial and services sector.”

Where we are now

Cement: “In 2011, the installed capacity in the cement sector was 16.5 million metric tons yearly. Today it is 39.5 million metric tons. When we came in, there were about $9 billion investment in the

cement sector but today it is more than $15 billion. In 2011, the direct and indirect jobs from the cement sector was less than 600, today the sector provides about 2.2 million direct and indirect jobs.

We spent at least $5.2 million in the importation of cement but since 2013, the administration of President Goodluck Jonathan has not issued any import license.

“Our main focus for the cement sector, going forward, are to improve the standard of cement and to bring the price down. Cement manufacturers must do it because we do not do price regulation. There

was announcement a few days ago that one of the cement manufacturers is bringing down the price of its 32.5 by 40 per cent from N1, 700 per bag  to N1, 000. The 42.5 is coming down from around N1, 800 to about N1, 150 per bag.

Automotive Industry: “In 2011, we did not have a comprehensive automotive policy on the ground. Today, in the automotive sector, over 22 companies have signed technical commitments to manufacturing or assembling cars in Nigeria. By early next year, some of them will be in the country.

The number of investments that went into the automotive industry in 10 years was $62 million but in less than one year, we have attracted about $150 million, and there are over $300 million coming up 2015. The numbers of automotive test laboratories were nil in 2011, but today we have three. The numbers  of universities offering automotive engineering were nil but today we have about four of them. The manufacturing capacity utilization for the automotive sector has also gone up by 40 per cent. In the sugar industry, the number of jobs in 2011 before President Goodluck Jonathan’s administration  was 3,860 but today, it is about 180,000. Investment in sugar cane was $100 million but today it is N3.2billion.”

Sugar: “The four major players currently in the industry are: Dangote Sugar Refinery (DSR), (which acquired 95 percent of Savannah Sugar) BUA Sugar Refinery, Josepdam Sugar Company, and new entrant Flour Mills of Nigeria. Available records on installed refinery capacity show Dangote Sugar has 1.44 million metric tons, BUA 720,000 metric tons, and Flour Mills of Nigeria (Golden Sugar Company) commenced operations of a 750,000 metric tons plant in June 2013. Some new investors are entering the market place with the aim of expanding capacities at older sugar estates

Vanguard

Group Managing Director/Chief Executive Officer, Access Bank, Mr. Herbert Wigwe

Access Bank Plc has unveiled its customised debit card tagged, “Persona.”

The product allows customers of the bank to upload their favourite image or to select any from the bank’s gallery on their debit cards.

Speaking at the launch of the product in Lagos at the weekend, the Group Managing Director/Chief Executive Officer, Access Bank, Mr. Herbert Wigwe described the product as part of the brand new future as well as a great future at the bank.

“We are doing very interesting things. If you ask people about Access Bank about three to five years ago, they would have said it is a whole scale commercial bank because that was what we were. “But we have evolved over the past three years to become a large diversified bank with a strong retail presence. Now, what we are doing is not just looking at the top corporates, we are looking at what we can do with each of our stakeholders. What that means is that whether it is a small business, or an individual, we strive to meet everybody’s aspiration,” Wigwe said.

He disclosed that the bank would be unveiling several products over the next couple of weeks. This, he pointed out, would enable the bank achieve its ambition of becoming the world’s most respected African bank.

“So, for you to achieve that, it is not just by banking the large corporates which we are doing, but by making sure that all the people in the retail space can truly feel the power of an institution that truly cares for them.

“So, that is what we are doing. That is also what Persona is all about. It was inspired by our customers. We have several people that have been with us for so long, since 2002. Even as a whole scale commercial bank, you (customers) stood with us, even when we did not have many retail products to offer.

“Now, we boast of the most widely used cards, we boast of the best premium cards, we boast of cards that are extremely efficient, but what we are doing today is even much more different,” he said.

On his part, the Group Head, Channel Services, Access Bank, Mr. Segun Ogbonnewo said the product would be supported amongst other things by dedicated communication channels which would host dynamic information as well as publicise the bank’s loyalty and reward offerings to customers.

THISDAY

Exhibitors at the ongoing  2014 Lagos International Trade Fair on Sunday  employed the use of gifts as a marketing strategy to woo customers to their stands.

The News Agency of Nigeria (NAN) reports that the items include pressing iron, microwave, stabiliser, price slash and free hairdo.

Mr Silas Okon, an exhibitor of household appliances, said: “This is our way of appreciating their patronage, without which our exhibition at this fair will be fruitless.

“We value our customers because they are very essential for the growth of our business,” he said.

He, told NAN that the gift depended on the purchase a customer made.

Mrs Adijatu Lawal, an exhibitor of baby care and sanitary products, told NAN that she had slashed the prices of her products by 50 per cent.

“We are offering an unbeatable price slash so that our customers can buy more.

“We believe in the satisfaction of our customers,” she toldc NAN.

Miss Folashade Oyekunle, a Sales Representative at Expression Hair Products stand, said that a woman could enjoy free hairdo for buying any of the company’s products.

“We are not merely advertising the quality of our products; we are proving it to our customers.

“We are encouraging them to fix their weave-on and braid their hair for free because this is the only way they can be assured of the quality of our products,” she said.

Mrs Florence Monday, a visitor to trade fair, said she was satisfied with the marketing strategies employed by the exhibitors.

According to her, this will create a healthy competition among the exhibitors and help customers to make choices.

“There are so many variants of a product at the fair.

“A confused customer can make a choice based on the side attractions that the exhibitors have offered,” she said.

NAN reports that the fair, which started on Nov. 7, will end on Nov. 16.  (NAN)

The Federal Government and port operators have lost about N35 billion in a week to blockade of the Apapa Port activities by customs agents, Seaports Terminal Operators’ Association of Nigeria (STOAN), has said.

The Spokesman for STOAN, Mr Bolaji Akinola, said in a statement in Lagos on Sunday that the blockade resulted from customs agents’ rejection of port charges.

The News Agency of Nigeria (NAN) reports that the agents’ action began on Nov. 3.

He said that the Apapa Port lost N1.4 billion daily since the blockade began.

Akinola said:  ”Shipping lines, manufacturing companies, haulage firms, terminal operators, Nigerian Ports Authority, importers, clearing agents and other agencies of government are collectively losing about N3.6 billion daily.”

NAN reports that the Nigerian Shippers’ Council (NSC) in October published an advertisement announcing the reversal of storage charges at the ports.

The charges were reverted to what obtained as at May 1, 2009.

NSC also directed an increase in the free storage period at the ports from three days to seven days.

The council equally directed shipping companies to reduce agency charges from N26,500 to N23,850 per TEU (20-foot container) and from N48,000 to N40,000 per FEU (40-foot container).

It also directed shipping agencies to refund deposits for containers to importers and agents within 10 working days after return of empty containers.

The charges were to begin in November.

However, shortly after publishing the directives, terminal operators under the aegis of STOAN, and shipping line agencies secured interim injunctions from the Federal High Court to stop the NSC from implementing the directives.

Justice Ibrahim Buba granted an ex parte motion filed by STOAN.

He gave an injunction restraining the NSC and its agents from reversing the charges pending the determination of a substantive suit on the matter.

Buba adjourned the matter till Monday,  Nov. 10, 2014, for further hearing.

Shipping lines under the umbrella of the Association of Shipping Line Agencies (ASLA), also secured a similar court injunction.

Akinola said that the blockade of terminals at the nation’s premier port could `hurt’ the economy.

The association urged the Nigerian Ports Authority (NPA), the police and other concerned authorities to clear the blockade to allow those wishing to clear their cargoes to gain access into the ports,” he said. (NAN)

DG, Standards Organisation of Nigeria, SON, Joseph Odumodu,

The Director General, Standards Organisation of Nigeria, SON, Joseph Odumodu, has disclosed that 95% of sub-standard goods in Nigeria are brought from countries abroad.

Odumodu made this disclosure on Saturday during a two-day media workshop with the theme; Building a Greater Nation Through Sustained Transformation, by the Federal Ministry of Industry, Trade and Investment in Abuja.

Some capital market stakeholders on Monday said that the proposed business consolidation between Nigerian Breweries (NB) Plc and the Consolidated Breweries Plc would enhance shareholders’ return on investment.

They said in separate interviews with the News Agency of Nigeria (NAN), in Lagos, that they were in support of the merger following its projected contribution to the economy and national employment profile.

Alhaji Gbadebo Olatokunbo, founding member of Nigeria Shareholders Solidarity Association, said that the business consolidation would increase the Nigerian Breweries’ market share of the nation’s brewery market.

Olatokunbo, who commended the merger, said that the company’s cost of business would be minimised and impact positively on profitability.

According to him, the merger will ensure the company has adequate capital to fund all investments required to operate competitively.

He said that the company should ensure enhanced dividend to the shareholders during the post merger era to compensate them for their support.

Olatokunbo, however, urged other companies listed on the nation’s bourse to emulate the Nigerian Breweries and Consolidated Breweries initiative to upscale their growth.

Mr Bayo Adeleke, General Secretary, Independent Shareholders Association of Nigeria (ISAN), described the merger as part of the expansionist policy of NB.

Adeleke said that the merger would enable the company to gain more market share and become a dominant player in the breweries sector.

According to him, the minority shareholders are in support of the merger because of its overall positive impact on the economy and investors.

Mr Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), said that the merger would bring a lot of benefits to the shareholders.

Okezie said that the larger entity would enhance investors’ dividends and drive higher capital appreciation of the equity.

“The two giant breweries are going to increase the market share in terms of production which will make the products available all over the country,” Okezie said.

According to PSAN boss, the issue of non availability of products will be a thing of the past and it will also help check proliferation in the beer market.

Also speaking, Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that the merger was part of expansion programme of the company to consolidate in the industry.

Kurfi, who described the merger as a welcome development, said that it would inject new life in the general operations of Consolidated Breweries.

He also urged most companies listed on the exchange to emulate the business approach of Nigerian Breweries by ensuring resuscitation of other moribund companies in the market and economy.

The proposed merger, according to the Court Ordered Meeting (COM) obtained by NAN, showed that the scheme if approved by shareholders on Dec. 10 would be completed in January 2015.

The scheme of arrangement revealed that both companies would continue to operate as separate entities until they obtain regulatory approvals.

It added that the proposed merger would create value for all key stakeholders, enhances operational efficiencies, increased access to capital, liquidity for shareholders and increased market capitalisation.

NAN recalls that Heineken Group International, the core investors in Nigerian Breweries in 2005 acquired a controlling stake in Consolidated Breweries Plc.

The Group had earlier said that the merger of the two companies was to take advantage of Nigeria’s growing beer market and malt drinks.

Meanwhile, the shareholders of both companies would on Dec. 4, 2014 take a decision on the merger proposal to be tabled by two companies’ board in a Court Ordered Meeting.

Under the scheme of arrangement, as proposed by the two companies’ boards, five shares of Consolidated Breweries would be exchanged for four of NB shares. (NAN)

Barely four days after the federal government announced that for the first time in Nigeria’s history, it was generating 4,600 megawatts (MW) of electricity, the Minister of Power, Professor Chinedu Nebo, on Monday said the country was still losing 4,700MW due to the unavailability of gas to fire 7,800MW space capacity.

Speaking in Lagos at the pre-conference workshop of the 32nd annual conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), Nebo said of the 7,800MW available in the gas-fired power plants, the gas plants in the Niger Delta provide only 880 million standard cubic feet per day (mmscf/d) of gas to fuel the generation of 3,100MW daily.

Before the recent 4,600MW-peak, the country’s highest electricity output was recorded on December 23, 2012 at 4,517.6MW.

According to Nebo, 1.9 billion cubic feet per day of gas (bcf/d) would be required to generate the 7,800MW available capacity, adding that with the 880mmscf/d gas that is available, there is a gas supply deficit of one billion cubic feet per day.

Nebo, who spoke on “The Challenges to Developing Sustainable IPP Projects in Nigeria”, reiterated that Nigeria’s current daily power output was about 4,000MW but 3,100MW of this is fuelled by about 880mmscf/d of gas.

“With the number of households in Nigeria put at 29 million, at an average consumption of 1 MW for some 500 homes, a maturing electricity supply industry in Nigeria should be producing some 60,000 megawatts (60 gigawatts) of power for household consumption everyday. Of these, some 42,000MW should be fuelled by gas,” he said.

The minister, who was represented by his Senior Special Assistant, Power and Gas, Mr. Frank Edoziem, said the opportunity for gas-fuelled IPPs stood at roughly 39,000MW for which about 11 billion cubic feet per day of gas would be required.

He noted that addressing the shortfall in gas supply and growing it to meet the anticipated demand would require different approaches to the exploitation of available gas resources.

“The recent announcement of a new pricing regime for domestic gas to power has opened up a new vista for the production of gas for domestic consumption.

“We now need to look more at the exploitation of non-associated gas. This means that in addition to our traditional sources in the prolific Niger Delta region, we need to look farther afield at marginal fields and the inland basins including the Anambra and Bida basins and the Benue trough.

“In other words, our gas growth needs power to be met through dedicated gas developments targeted at producing gas for power,” Nebo explained.

On the delay in the declaration of the much-awaited Transitional Electricity Market (TEM), Nebo explained that a few conditions precedent for the declaration of TEM were yet to be fully met.

According to him, the federal government and other relevant stakeholders are working to ensure the outstanding conditions precedent are met, adding that the TEM would automatically kick in the contractual obligations of all market participants.

He advised the new investors in the power sector to immediately begin the implementation of their respective business plans to reduce losses and recover unutilised capacities.

In her speech, the President of NAPE, Mrs. Adedoja Ojelabi, said recent studies had shown that the economic loss to the country due to gas flaring could range between $2.5 billion and $17 billion annually.

She acknowledged that some reduction in flaring had been achieved, down from the initial 100 per cent to about 11 per cent in recent times.

“However, this is deemed slow over time and a zero flare-out is yet to be achieved. Nigeria still flares about 2 bcf/ day and is ranked among some of the highest gas-flaring countries in the world, with Russia and Iraq.

“There are still over 100 flare sites in the Niger Delta region and Nigeria is the highest emitter of greenhouse gas in Africa,” she said.

THISDAY