Alhaji Bamanga Tukur

The Chairman of the Nigerian Railway Corporation, Alhaji Bamanga Tukur, has said that train services in the Eastern Railway District will commence before the end of the year.

Tukur made the announcement in Enugu on Monday while inspecting ongoing projects on the Port Harcourt-Enugu railway.

The board chairman expressed satisfaction with the work so far done, hoping that train services might commence before the end of the year.

“I believe with what I saw on ground, train services may commence before the end of this year so that Nigerians will begin to enjoy what we used to have before now.

“Our railway has come alive again; the Bridge No.15 which nature brought down has been rehabilitated.

“It is a thing of joy that the transformation agenda of the president through the SURE-P,  all the railway projects abandoned for years have been brought back to life with the help of the programme,” he said.

On the welfare of railway workers, the chairman said he would engage the National Salaries and Wages Commission to see how to improve their remuneration.

In his remarks, the Managing Director of the Nigerian Railway Corporation, Mr Adesiyi Sijuwade, said that all hands were on deck to ensure that train services from Port Harcourt to Makurdi commenced by December.

“Train services from Port Harcourt, particularly Port Harcourt mass transit, starting from Diobu, Elewon, Trans-Amadi to Imo River would be running on daily basis when completed.

“Ultimately, train will then start moving to Umuahia, Aba and Enugu. Our intention is also to have the services to Gombe and when the insurgency stops, it would be extended to Maiduguri,” he said.

In his address of welcome, the Railway District Manager, Mr Donatus Ogbodo, said the Eastern District lines covered a distance of 310 kilometers linking four states of Enugu, Ebonyi, Abia and Rivers.

He said the rehabilitation of the line commenced in January 2012 following the award of contract for the collapsed Bridge No. 15 at Nyaba, Awkunanaw in Enugu South Local Government Area by the Federal Government.

Ogbodo said the rehabilitation had progressed steadily, adding that normal passenger train services would soon resume in the district.

According to him, the district has successfully completed the rehabilitation of eight coaches which are the first batch of coaches to be rehabilitated for operation in the district.

The Chairman of the Nigerian Union of Railway Workers in the district, Mr Orji Kalu, urged the chairman to look into the welfare of workers, including the upgrade of their salaries and pension deductions.

He stressed the need for training and retraining of the workers, pointing out that virtually all the departments were left with one or no staff due to retirement of old workers. (NAN)

Prof. ChineduNebo

The West African Power Industry Convention (WAPIC) on Monday announced the nomination of Ughelli Power, Geometric Power and Clarke Energy for award for their key roles in the Nigeria’s power sector.

Known as West African Power Industry Awards, WAPIC said in a statement in Abuja that the award ceremony, which would be the first by the convention, would hold on Nov. 18 in Lagos.

The statement by WAPIC’s Communications Manager, Ms Annemarie Roodbol, said that seven award categories, including Lifetime Achievement Award, Power Transaction of the Year and Outstanding Woman, would feature at the event.

It explained that the award was to celebrate “the heroes and success stories of the West African utility industry”.

“Together we are highlighting those companies and executives who have been responsible for pioneering new frontiers, pushing boundaries, for inspiring others and for achieving growth for West Africa,” it said.

The statement said that Lifetime Achievement Award would be won by an individual for his/her outstanding contribution to and impact on the West African power industry.

According to it, those shortlisted in this category are Dr Sam Amadi, Executive Chairman, Nigerian Electricity Regulatory Commission (NERC) and Gov. Babatunde Fashola of Lagos State.

Also on the list is former Minister of Power and currently, the Chief Executive Officer, Geometric Power Limited, Prof. Bert Nnaji.

It also said that the Managing Director, Geometric Power Limited, Mrs Agatha Nnaji and Minister of Finance, Dr Ngozi Okonjo-Iweala, were nominated for Outstanding Woman in Power award.

Also nominated in that category, according to the statement, is the General Manager, Ikeja Distribution Company, Mr Olubukola Osiberu.

It said that the event would be attended by leading executives from power, renewable energy, finance, and investment sectors.

“The WAPIC is organized by Spintelligent, a leading Cape Town-based trade exhibition and conference organiser and the African Office of Clarion Events Limited based in UK,” it explained. (NAN)

Governor Ayo Fayose of Ekiti state

Gov. Ayodele Fayose of Ekiti has pledged to address the nine-month power outage in Ifaki-Ekiti following its disconnection by the Benin Electricity Distribution Company (BEDC).

Addressing protesting youths of the town on Monday, the governor promised to pay N5 million of the N57 million the people were said to owe the company.

He also promised to install a transformer in the town to boost power distribution in the community after reconnection.

“I will provide solution immediately, but I need your cooperation. Don’t vandalise or destroy any property.

“I am not a leader who is insensitive to your plight. I will get to the root of the matter and provide solution,’’ he said.

The governor urged the irate youths to allow BEDC officials to return to work and restore electricity to the town.

“The BEDC said you attacked its officials and that was why they abandoned the town.

“Now that you have protested and we are about to settle the matter, I appeal that you allow them to return to work,’’ he said.

Fayose said he would set up a committee that would work out modality for payment of outstanding electricity bill.

“You cannot be using electricity free, you have to pay for it,’’ the governor said.

In his remarks, the Public Relations Officer of BEDC, Mr Kayode Brown, said the company disconnected electricity because consumers in the town were owing the company N57 million.

Brown said the company opted for disconnection because unidentified residents consistently vandalised transformers in the town and carried out series of attack on its officials.

The News Agency of Nigeria, (NAN) reports that the protesters, who were mainly youths, blocked Ifaki-Oye junction for the greater part of the day and threatened to attack any BEDC official sighted in the town.

The protesters said the blackout in the town had crippled commercial activities and posed serious socio-economic threat to residents. (NAN)

Chairman of Justrite Limited, Mr. Ayodele Aderinwale

The chairman of Justrite Limited, Mr. Ayodele Aderinwale has splashed N2 billion in establishing a new branch.

ENCOMIUM Weekly’ check revealed that the super store sprang up in Dopemu, a suburb of Lagos state.

The department store which has four branches is gradually expanding to be one of the biggest merchandising outfits.

Strategically in the Dopemu neighbourhood, the outfit was established as a response to the yearning of residents around the area who desire a qualitative store where they could get all they need instead of travelling far to get them.

According to who squealed to ENCOMIUM Weekly sources, the structure cost a fortune to acquire. It has been estimated to be N200 million but with goods, it is worth N2 billion.

Built on a massive land space, the structure has ample parking space. Constructed in the shape and structure of other branches, it is painted in the same colour of yellow and blue. It stocks all household items, edibles, cooking utensils, toiletries, provisions etc.

Justrite was established in 2000 as a corner shop and metamorphosed into its present size and location in 2006. In business with the aim of creating jobs for the teeming unemployed persons, it has its first outlet in Ota, Ogun State, another in Abule Egba, Ipaja Road, Alakuko and now Dopemu.

-@ENCOMIUM

Nigeria’s foreign exchange reserves fell to a 4-month low of $37.9 billion as of November 7, down by 3.99 per cent month-on-month after the Central Bank of Nigeria (CBN) sold dollars to banks to prop up the value of the naira.

Data published by the central bank on Tuesday showed the reserves were at $39.55 billion on October 10. In July it stood at $37.89 billion.

The central bank last week said it will continue to defend the local currency, which has fallen six per cent so far this year on concerns about lower oil prices and an exit from the local debt and equity markets by offshore investors.

In a related development, the naira weakened slightly on the interbank market yesterday due to strong demand for dollars from foreign investors.

The local currency closed at N168.40 to the dollar, compared with N168.20 the previous day, according to Reuters.

Traders said the central bank had intervened in the market to buy naira, providing some support, but not enough to lift the currency.

The traders expected the interventions to continue to provide dollar liquidity.

According to them, two energy firms had sold dollars, but they are not enough to push up the naira. Saipem, a local unit of Eni sold $10 million, while Chevron sold $45.5 million, the traders revealed.

Speaking in Lagos yesterday, the Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane said: “It is good to have a strong currency, but good to have and need to have are two different things. What the central bank and Nigeria needs now is doing the right thing and doing it at the right time.

“If we have adjusted in March we shouldn’t have been at N160, we should have been at about N135. So if we don’t do it quickly, we would have to do it anyway. I think the central bank at the meeting on the 24th and 25th Monetary Policy Committee is going to have to take a very hard look and make some adjustment you cannot hold on all the way till February, you would have to start the process now. I don’t think we have the luxury of holding it till after the elections.”

THISDAY

Minister of Trade, Industry and Investment, Mr Olusegun Aganga

The Minister of Trade, Industry and Investment, Mr Olusegun Aganga, on Tuesday in Lagos called for improved trade relations between Nigeria and Britain.

Aganga made the call at a lecture organised by the Nigerian-British Chamber of Commerce (NBCC) and the UK Trade and Investment (UKTI).

Aganga, who was represented by the Managing Director, Bank of Industry, Mr Rasheed Olaoluwa, said there was the need for more British investments in Nigeria.

“A good number of Nigerians have either studied or are studying in the UK. At the last study, it was estimated that about 33,000 Nigerians would have studied in Britain by 2015.

“In the area of investments, many of the iconic brands in Nigeria have their roots in the United Kingdom.

“In 2011, President Goodluck Jonathan and Prime Minister David Cameron greed to increase the volume of trade between both countries from four billion pounds to eight billion pounds in 2015.

“In order to achieve this feat, we need to collaborate more in terms of mutually benefiting trade agreements and relations”, he said.

He added that based on political history and neo-colonial affinity, Britain had become the largest investor in Nigeria

He also said that the activities of UK agencies such as Department for International Development in Nigeria had helped to improve the nation’s economy.

Aganga said petroleum products, power generation and transport equipment, textile and fabric, were among top 10 UK exports to Nigeria.

He, however, said that in line with the Nigerian Industrial Regulatory Plan, Nigeria would cease importing those products in the future.

The British High Commissioner to Nigeria, Dr Andrew Pocock, pledged Britain’s support to Nigeria in its fight against terrorism.

He said no meaningful economic development could take place in an atmosphere of insecurity.

Pocock also said that Britain would partner with Nigeria in the areas of education, justice and entrepreneurship.

The President, NBCC, Mr Adeyemi Adefulu, called on entrepreneurs in Nigeria and Britain to take advantage of various trade opportunities between both countries to boost their enterprises.

“We should fathom how a plethora of missed opportunities has resulted in the decline of once burgeoning relationship between both nations”, he said.

He said that NBCC had launched a private sector-led initiative tagged: “Export Nigeria”, to promote Nigerian export.

“The initiative is not a replacement for government agencies promoting exports. It will only complement them.

“We have signed a five-year Memorandum of Understanding with the Nigerian Export Promotion Council with a view to forging collaboration with the agency’’, Adefulu said.

Earlier, the Chairman of the event, Chief Ernest Shonekan, said Nigeria should explore its long-standing trade relations with the UK to seek preferential treatment in exporting agricultural goods to the country.

“Each time I visit departmental stores in the UK, I get disappointed because I don’t see Nigerian products on display.

“We have competitive edge in agriculture. We should be exporting items like pineapples, banana, yam and even clothes to the UK’’, the elder statesman said. (NAN)

The Central Bank of Nigeria (CBN) yesterday allowed the Naira to suffer its biggest official depreciation since November 2011, as the currency depreciated by 54 kobo at the official foreign exchange market.

This followed the continued decline in the nation’s external reserve, as the foreign exchange market defied all efforts of the apex bank to curtail foreign exchange demand and restore confidence in its ability to defend the Naira.

At the Bi-weekly Retail Dutch Auction System (RDAS) session conducted yesterday by the CBN, the official exchange rate rose to N156.39 to the dollar from N155.85 at the previous session conducted on Monday. This translated to 54 kobo depreciation of the Naira against the dollar, and the largest in three years.

Until last month the CBN had fiercely defended the Naira, maintaining the official exchange rate at the N155.75 since April 2013. But following increasing decline in the nation’s external reserves, rising demand for foreign exchange occasioned by foreign investors divesting from the country in response to decline in price of crude oil, the apex bank started depreciating the Naira at the official exchange market.

On October 15th, it depreciated the Naira by one kobo, and by two kobo on the 3rd and 5th of November. On Monday, November 10th, the CBN allowed the Naira to depreciate by five kobo and then yesterday by 54 kobo. The last time the CBN allowed the naira to depreciate more than 50 kobo at the official market was on 28th of November 2011.

But at the interbank foreign exchange market yesterday, the CBN intervened to halt the depreciation of the Naira, with the interbank exchange rate rising to N168.6 to the dollar on Tuesday from N165.8 last Friday. To halt this trend, the CBN conducted special dollar sales to banks, which caused the interbank exchange rate to fall to N167.6 to the dollar yesterday translating to N1 appreciation for the Naira.

Meanwhile, experts have predicted further depreciation for the Naira, saying a sharp devaluation is inevitable. “The markets are starting to see the blood here,” said Emad Mostaque at Eclectic Strategy, a consultancy set up by former Deutsche Bank veteran, John-Paul Smith.

“We are now entering a particularly dangerous period for the Naira as time constraints and low resources to fight against speculative attack make the currency vulnerable,” he said. “Everything is lining up for that currency attack.”

There is in theory very little ammunition to defend the Naira. Data from the Central Bank showed its liquid reserves have declined since the start of the year by $5.77 billion or more than 15 percent to $36.69 billion by Tuesday.

Despite three interventions this week, the Naira closed at N167.60 to the dollar on Wednesday, well above the central bank’s trade band of 150-160 – a range it burst out of in May and which appears to have become merely cosmetic.

Non-deliverable currency forwards – short-term contracts used by counterparties to lock in a future exchange rate – indicate a naira-dollar exchange rate of 176 in three months, a roughly 5 percent depreciation. Over 12 months time, forwards show the naira at 200.

A speculator attack may not necessarily materialise – analysts point out that in a relatively small market it would be technically difficult to “short” the naira on a huge scale. But investors believe a fall triggered by an exodus of foreigners and locals from financial markets and banks is likely.

Bank of America Merrill Lynch analyst Oyin Anubi said his clients – U.S. equity investors – feared that as sinking oil prices deplete Nigeria’s war chest, a sharp correction is ahead: “Naira devaluation is fast becoming consensus,” he wrote in a note.

Vanguard

President Goodluck Jonathan on Wednesday unveiled the new N100 centenary commemorative banknote at the Presidential Villa, Abuja.

Vice-President Namadi Sambo, Central Bank of Nigeria (CBN) Governor Godwin Emefiele and ministers were present during the unveiling.

Briefing the president and his cabinet on the new note, the CBN governor said it was designed to commemorate 100 years of nationhood, adding that several countries like Morocco, Russia and Costa Rica had done the same to mark special events in their history.

He further recalled that a commemorative N50 banknote was also introduced to mark the nation’s 50th independence anniversary.

The new centenary note, Emefiele said, has the most advanced security features in the world.

He listed the design platform on which the note was made to include security, durability, attractiveness, cultural heritage and transformation.

Jonathan thanked the CBN for initiating the commemorative note.

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, also commended CBN for introducing the new banknote.

According to her, the Quick Recognition Code (QRC) feature on the back of the note was laudable, explaining that if the code is scanned with smart phones or other mobile devices, it will link users to a website where the nation’s history could be accessed.

The QRC is a machine-readable matrix bar code that contains information about the item to which it is attached.

The minister also raised questions on the amount the CBN would use to print the new banknote and whether it would be done locally.

Jonathan said the questions would be answered in a memorandum on the issue to be presented to the Federal Executive Council (FEC).

Providing more information on the commemorative N100 banknote, Emefiele informed THISDAY that the note would be in circulation from next month and would circulate side-by-side the old N100 banknote.

He added that there would be no deadline within which the CBN would take the old N100 note out of circulation, stating that it would be phased out gradually like all other banknotes that are recalled and destroyed by the CBN due to wear and tear.

“This means that market women and retailers should not reject the old N100 note because it will remain legal tender until it is phased out like other banknotes when they become old or are defaced,” the CBN governor explained.

He said it would be impossible to give a figure on how much CBN is spending on the new N100 banknote because its production was not done exclusively of other banknotes already in circulation, but assured THISDAY that a substantial part of its production was done locally by the Nigerian Security Printing and Minting Company Plc.

“You know the CBN is constantly ordering banknotes to replace the old ones in circulation, so the orders for the new N100 note was done in conjunction with other denominations of our banknotes,” he said.

He added that the CBN was still on course to phase out the N5, N10, N20 and N50 polymer banknotes, which he said would be done sometime next year.

A statement issued by the CBN added that the commemorative banknote has been designed and produced with the most advanced and security technology features with strong resistance to counterfeiting. It is meant to be durable, attractive and reflects our collective heritage and memory as a united nation.

The front side of the new banknote retains the portrait of the late sage, Chief Obafemi Awolowo, and raised embossed line to assist the visually impaired persons in recognising the face value.

The back side incorporates the QRC window which encrypts significant information that highlight Nigeria’s 100 year journey thereby making it one of the best as smart-connected paper banknotes using smartphones as identity and security tool for de-encryption of information.

THISDAY

Investors on the Nigerian Stock Exchange (NSE) on Wednesday staked N7.59 billion on 299.9 million shares in 6,120 deals.

The News Agency of Nigeria (NAN) reports that the volume of transactions represented 6.84 per cent increase over the 280.70 million shares worth N3.74 billion traded in 5,118 deals on Tuesday.

Continsure emerged the most traded stock, accounting for 39.87 million shares valued at N35.49 million traded in 10 deals.

UBA came second on the activity, trading 24.94 million shares worth N130.39 million in 357 deals, while FBN Holdings sold 22.21 million shares valued N239.03 million in 677 deals.

Market capitalisation appreciated by N98 billion or 0.88 per cent to close at N11.25 trillion from N11.15 trillion posted on Tuesday.

Similarly, All-Share Index rose by 296.73 points or 0.88 per cent to close at 33,967.48 as against 33,670.75 points achieved on Tuesday.

Nigerian Breweries recorded the highest price gain of N8.09 to close at N164.98 per share.

It was followed by 7UP, which gained N7.08 to close at N148.83, while Forte Oil improved on its shares’ value by N5.34 to close at N207.99 per share.

Cadbury gained N3.92 to close at N42.30 per share while Mobil Oil garnered N3.50 rise in value to close at N165 per share.

Conversely, Seplat led the losers’ chart with a drop of N25.42 to close at N483.11 per share.

Nestle trailed with a loss of N15 to close at N910 per share, while Flour Mill dipped by N2.78 to close at N52.64 per share.

Guinness also depreciated by N1.32 to close at N163.68 per share while Champion lost 96 kobo to close at N8.98 per share. (NAN)

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has said he will continue to defend the naira after the currency plunged to a record low last week.

“There’s no need for anybody to panic or worry,” Emefiele told Bloomberg.

“The central bank has always intervened. We know our reserves can support nine months of imports, which is far above the minimum expected. We believe we’re very safe.”

The naira weakened to an all-time low on November 7 after a drop in crude prices, prompting the central bank to intervene. In defending the currency rate, Africa’s largest oil producer has reduced its foreign reserves to a four-month low of $37.8 billion.

The naira weakened a third day, down 0.8 per cent to N169.80 per dollar on Wednesday.

On November 6, the regulator restricted banks’ use of the standing deposit facility, which allows companies to earn interest on excess cash, in an attempt to encourage lending to local businesses. Emefiele said the move didn’t weaken the naira because banks used their surplus liquidity to buy short-term central bank bonds.

“After that decision, most of them moved their money to the open market operations window,” he said. “We took all that money.”

The central bank has been selling dollars to banks outside its twice-weekly auctions since the naira’s drop on the morning of November 7, CBN Deputy Governor, Sarah Alade said.

“We have been intervening in the market since Friday,” she said.

Last week’s volatility boosted the chance of a 50 basis point increase in Nigeria’s benchmark interest rate, which has been at a record high of 12 per cent since October 2011, London- based Capital Economics Limited had said.

The central bank’s next Monetary Policy Committee meeting is on November 24 and 25.

The sharpest drop in oil prices since 2008, in addition to a surge in the dollar, are testing the resolve of energy-producing nations like Nigeria to defend their currency pegs.

Even Saudi Arabia, whose $745 billion reserves may allow it to maintain the link for years, is feeling the pressure of speculators betting against its currency. Nigeria intervened in foreign-exchange markets to bring the naira back from a record low last week, while economists surveyed by Bloomberg expect Venezuela to capitulate on its dollar peg by year-end.

For the dwindling number of nations whose exchange rates are linked to either dollars or a basket of major currencies, breaking those ties would raise the odds of inflation accelerating too fast. It would also take away a steadying influence on their economies.

“Countries operating with a currency peg, particularly oil exporters, are suffering from losing export earnings, weakening their ability to defend the peg at a time when emerging-market currencies are under pressure from a stronger dollar,” the chief economist at London-based frontier- markets specialist Exotix Limited, Stuart Culverhouse said.

“It magnifies the problems they’re having.”

Oil and natural gas account for at least 85 percent of the exports of Saudi Arabia, Nigeria and Venezuela, while Russian energy sales account for more than half the government’s revenue, according to the United State Energy Information Administration.

Though it didn’t have a formal peg, Russia, the world’s largest energy exporter, this week ended a policy of maintaining the ruble in a fixed band versus a basket of dollars and euros.

Crude oil fell almost 30 per cent since mid-June to a three- year low of $75.84 per barrel last week, according to generic prices in New York compiled by Bloomberg.

At the same time, the dollar is soaring on the prospect of higher US interest rates. Bloomberg’s Dollar Spot Index, which tracks the greenback against 10 major peers, rose nine per cent since June.

Nigeria may need to devalue the naira after presidential elections in February, Goldman Sachs Group Incorporated had said in a report.
Policy makers target a rate for the naira at twice- weekly auctions of N155 per dollar, plus or minus three per cent.

In defending the fixed-exchange rate, Africa’s largest oil producer has reduced its foreign-currency reserves to a four- month low of $38 billion. Those concerns led Phillip Blackwood, a money manager at EM Quest Capital LLP in London, to sell his holdings of Nigerian domestic bonds in recent weeks.

“There’s so much pressure,” Blackwood, who manages $3.3 billion of emerging-market assets.

“They’re not willing to defend. It costs too much.”

Spokesman for the Central Bank of Nigeria, Ibrahim Mu’azu said no decision has been taken on whether to devalue.

THISDAY

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Thursday stressed the need for Nigeria and other countries on the continent to adopt belt-tightening measures in order to cushion the effects of the dwindling prices of crude oil on their economies.

The minister said this in a keynote address titled: ‘Positioning Africa in the Context of an Uncertain Global Environment,’ which she delivered at the third annual International Institute for Finance (IIF), African Financial Summit 2014, hosted by Access Bank Plc in Lagos.

She emphasised the need to plug leakages, increase the drive for revenue as well as develop the non-oil sectors in the continent.

The minister also urged policy makers in the continent to strive to ensure that economies in the continent continue to prosper, saying with the right policies, Nigeria and other nations in the continent would be able to sustain their growth path despite the economic headwinds.

Okonjo-Iweala however pointed out that “the central focus of these thoughts is that Africa must truly diversify its economic base to create jobs for young people and become more self-reliant and better integrated to position itself better in an uncertain global environment.

“First, I believe that whatever it is that Africa was doing right to get to this point, we must continue to do. And in this spirit, I believe we must continue with sound macroeconomic management.”

She revealed that Africa’s debt-to- Gross Domestic Product (GDP) ratio of about 30 per cent, fiscal deficit of about 3.3 per cent and inflation projected at 7.3 percent for the year 2014 are at reasonably low levels, saying that as a result of these, many countries in the region have been able to access the international credit markets at low interest rates.

However, she noted that external pressures mount, in the face of falling commodity prices, “the pressure to “go a-borrowing” to maintain fiscal expansion will also increase.”

She added: “But we cannot afford to do this. We need to make necessary adjustments with tighter fiscal and monetary policy, and we need to build up economic buffers beyond the mere 5.4 months of imports the region is estimated to have.

“However, these adjustments need not stifle growth. For instance, fiscal consolidation must be done in such a way that government expenditure will be refocused on quality items that will unlock growth and job creation in the continent. Such quality investment should focus largely on infrastructure and human capital development- the two strongest binding constraints on the continents progress.

“Still on improving macroeconomic performance, countries in the region must aggressively look for alternative sources of revenues and stem leakages. It is now imperative to drive up domestic resource mobilisation especially taxes.

Continuing, Okonjo-Iweala said: “In several African countries including Nigeria, tax revenue to GDP is below 15 per cent – the conventional International Monetary Fund threshold for satisfactory tax performance.

“There are many leakages and gaps to be plugged, and more effective tax administration could contribute to improving revenues. For instance the Washington-based think-tank Global Financial Integrity, finds that at least 60 per cent of the nearly $1 trillion in illicit flows from the continent is due to trade mispricing and international tax invasion.

“So one can only imagine the boost to revenues if this practice can be curbed. This is why we have asked GFI to carry out a study on Nigeria. This, together with the work being done by McKinsey to strengthen tax collection will go a long way to support our efforts to drive revenues up.”

In his presentation earlier, the Group Managing Director/Chief Executive Officer of Access Bank Plc, Mr. Herbert Wigwe,  noted that Africa is currently a hub of international economic evolution, a place of tremendous innovation in financial services, telecoms and natural resources; and, increasingly, as well, an important driver of global growth.

According to Wigwe, more wealth has been created in Africa in the last decade than at any other time in history.

“Across the continent we have seen a steady drumbeat of democratisation and political reform as governments are, with some exceptions, starting to provide the environment for businesses to thrive.

“They are creating greater feedback from and accountability to their citizens; ensuring that people’s needs are known and addressed. From Rwanda to Nigeria, we have seen a steady increase in security of title and the rule of law; investment in regulatory and physical infrastructure to ease the doing of business; and a low-debt, low-inflation, macro environment.

“All of these factors together help to build the first pillar of the African investment story – no longer is this the continent of coups and generals; instead it is a place of democraty as well as economic growth,” he added.

THISDAY

MASQUERADES ENTERTAINING, AT THE SAMODUN FESTIVAL ORGANISED BY OYO
STATE MINISTRY OF CULTURE AND TOURISM IN IBADAN

Africa has recorded three per cent increase in the influx of tourists in 2014, Ms Caroline Bremner, Head, Travel and Tourism Research, Euromonitor International, has said.

This is contained in a statement issued in Abuja on Thursday by Arua Idika, Press Officer, Nigerian Tourism Development Corporation (NTDC).

In it, Bremner said the percentage growth was not a very bad development considering the numerous challenges facing the continent.

“This is not very bad considering the outbreak of Ebola and conflicts on the continent. Ebola is an isolated health challenge in West African’’, she said.

Bremner contended that governments on the continent needed to work towards promoting health and safety measures to further boost its tourism industry. “The messages have to be very positive.’’

She urged the governments to always engage potential visitors on different media platforms, including social media, while ensuring that the visitors were accorded warm welcome.

She, however, identified transportation as a critical element in building capacity and encouraging influx of tourists to destinations.

“There are good aviation operators in Africa but there seems to be restrictions that serve as impediments. Governments in Africa should encourage competition in the aviation business.’’

The statement also quoted Ian Yeoman, Travel and Tourism Futurologist, as saying that Ebola had so far had minimal impact on travels and tours in Africa.

Also, Senior Exhibition Director, WTM, Simon Press, said the 2014 edition of the market would facilitate deals worth £2.5 billion in travel industry contracts between exhibitors and WTM’s buyer’s club.

He said that this figure was against the £2 billion recorded in 2013.

He said that WTM Portfolio, which comprised Arabian Travel Market, WTM Latin America and WTM Africa, was the catalyst for deals worth almost £4billion.

“Despite this clear desire to conduct business, the industry is still facing many huddles, but I am optimistic for 2015.’’ (NAN)

Mr Gbenga Obisesan, a Stockbroker and Managing Director, Topmost Securities Ltd., on Thursday, said that profit taking would moderate capital market activities in December and January, 2015.

Obisesan told the News Agency of Nigeria (NAN) in Lagos that the price of equities would fluctuate because of renewed profit taking by investors.

“The tempo of the market may still slowdown until February 2015 due to Christmas, end of year expenditure and payment of school fees.

“But after this period, the renewed profit taking will gradually moderate and stabilise the equity prices for better market activities in 2015,” he said.

Obisesan also expressed optimism that the market would close higher in 2014 than what obtained in 2013.

Mr Chineyeme Anyanwu, another stockbroker with Dependable Securities Ltd., said that stabilisation of other relevant sectors of the economy would go a long way to moderate and boost capital market activities.

Anyanwu said that the activities of the banking and oil sectors would to a great extent affect the performance of the capital market.

“The persistent fall in the oil prices and value of the naira have invariably contributed to the continuous decline of equities prices being experienced in the capital market.

“I believed that if the banking and oil sectors could be improved and stabilised, the capital market will also pick up,” he said.

Mr Charles Fakrogha, the Chief Executive Officer, Foresight Securities and Investment Ltd., urged investors to take advantage of the low prices to increase their stakes in the market.

Fakrogha noted that the period remained the ideal season for viable investors to use and increase their stocks.

“By the outlook of capital market presently, investors should not panic.

“They should be more conscious of their investment pattern, develop good management governance and be more vibrant in participating in the market,” he said. (NAN)

As the price of crude oil declines in the international market with its attendants negative effect on government revenue, the Federal Government, on Sunday, announced a proposal to change the oil price benchmark in the 2015 national budget proposal to the National Assembly from the earlier $78 per barrel to $73.

The Federal Government, in a statement, said the decision to review downward the oil price benchmark was a multi-pronged strategic response to mitigate the adverse effects of the decline in global oil prices, protect growth, reassure investors and keep the economy on a stable course through the crisis which has seen a significant drop in oil revenues for Nigeria and other oil producing countries since June.

As a result, the Medium Term Expenditure Framework (MTEF) and the 2015 budget would also be reviewed.

The minister, who stated this in Abuja at a briefing, stated that stringent measures would be adopted to stabilise the economy, stressing that this would include cutting excesses in all civil, public services, strict management of all parastatals, as well as addressing overlapping responsibility of agencies and parastatals.

“The response is a mix of measures designed to boost non-oil revenues further, plug loopholes and waste and cut unnecessary expenditures in order to cope with the situation,” the statement added.

Apart from the benchmark, the government added that the Medium Term Expenditure Framework (MTEF) would also be revised in line with the current trend.

In the statement, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, declared that the Federal Ministry of Finance had been keeping a close eye on movements in global oil prices because of the critical importance of oil as the country’s most important source of revenue.

She explained that even though the government had been working hard on several scenarios and contingency plans in readiness for any eventuality, it was important to proceed in a measured manner based on a complete understanding of the challenges.

“Given the nature of the oil market, we needed to see the extent and trend of the oil price in order to take the right measures. Panic is not a strategy. It’s important that our strategies are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 for our premium Bonny Light Crude.

“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary. But we should also not forget that we retain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies. Our strategy is to continue to strengthen the sectors that drive growth such as agriculture and housing while reducing waste with a renewed focus on prudence.”

She recalled that in the last three years, the executive, in its discussions on the budget with the National Assembly, had consistently advocated prudence and a low budget benchmark to encourage more savings.

She stressed that even though the drop in oil prices was a serious challenge, it was also an opportunity for the country to focus on greater diversification and refocus efforts towards the non-oil sectors in preparation for a future with less oil revenue.

She stated that the decline in oil prices had given additional impetus to the Federal Government’s focus on increasing non-oil revenues. In this regard, the collection target for the Federal Inland Revenue Service (FIRS) would be revised upwards for next year. The country has had good success in reaching the initial target set this year of N75 billion; so far, N65 billion of this has been collected. For 2015, the revised target is N160 billion above the 2014 base.

As part of the efforts to reduce expenditure, international travel within the public service would be severely curtailed. But critical infrastructure projects would not be affected because they were key to economic growth and development, as well as job creation, she added.

Meanwhile, the International Energy Agency (IEA) has said oil prices are likely to continue falling well into 2015.

The IEA, a consultant to 29 countries, said weak demand and the US shale gas boom meant crude’s recent fall below $80 a barrel was not over.

On Friday, Brent crude, one of the major price benchmarks, traded at $78.13 a barrel, near a four-year low.

“It is increasingly clear that we have begun a new chapter in the history of the oil markets,” the IEA said.

“Barring any new supply problems, downward price pressures could build further in the first half of 2015.”

The organisation, set up after the “oil shock” of the early 1970s to advise major oil importing countries, said pressure was building on the Organisation of Petroleum Exporting Countries (OPEC) oil producers’ group to restrict supply to bolster prices.

However, there have been reports that Saudi Arabia, OPEC’s key member, is not yet willing to turn off the taps. OPEC members are due to meet on November 27 to discuss the supply and demand issues.

Most OPEC members rely on oil revenues to support economic growth and spending.

An oil and gas expert who pleaded anonymity told Nigerian Tribune at the weekend that government’s revenue will begin to decline and there will be little for Federal Accounts Allocation Committee (FAAC) to share among the tiers of government.

Besides, it is likely that oil and gas explorers will become increasingly worried that falling prices will make exploration uneconomical and expensive.

Brent has fallen for eight weeks in a row, its longest losing streak since 1988, according to Reuters’ data.

The US energy department said last week that it expected low fuel prices to last into next year.

Earlier this week, the IEA’s Global Outlook, a report into the industry’s long-term challenges, warned that the US shape gas boom was masking serious risks to global energy security.

Tribune

Dr. Ngozi Okonjo-Iweala

The Minister of Finance, Dr Ngozi Okonjo-Iweala, says the Federal Government has proposed a review of the oil benchmark from 77.5 dollars to 73 dollars for the 2015 budget.

Okonjo-Iweala said this on Sunday in Abuja at a media briefing on government’s strategic response to the decline in global oil prices.

She said the proposal would be sent to the National Assembly for approval, adding also that there would be review of the entire Medium Term Expenditure Framework (MTEF).

The minister said government was adopting the best scenario approach to address the current situation, adding that there was expectation that the price decline would continue in the nearest future.

She said government would adopt additional fiscal measures with appropriate monetary policy measures to cushion the effect of the decline on expenditure.

According to her, government expenditure would drop from N4.8 trillion initially submitted to MTEF to about N4.6 trillion this time.

“We are proposing a benchmark price of 73 dollars per barrel and, based on that, we are reviewing the entire MTEF and we have decided to maintain the same quantity at 2.27 million barrels per day.

“This will mean a drop in projected oil revenues from N7.287 trillion to N6.833 trillion which also indicate that we need to do something about aggregate expenditure in the budget.

“Even though the drop in oil price is a serious challenge, it is an opportunity for the country to focus on greater diversification and refocus efforts towards the non-oil sector,” she said.

Okonjo-Iweala said part of the measure was the decision to raise non-oil revenue by the Federal Inland Revenue Service (FIRS) by evolving a system of enlarging the scope of taxes.

“Only 25 per cent of the Small and Medium Enterprises (SMEs) in the country are currently registered as tax-payers, and more SMEs will be captured for broader tax sources,’’ she said.

The minister expressed optimism that FIRS would meet the additional N75 billion target and promised to strengthen tax administration to drive the non-oil revenue by blocking the leakages.

Okonjo-Iweala said there would be introduction of surcharges on luxury items to enable the well-to-do individuals in the society to be able contribute to government’s purse.

She said government would continue to invest in infrastructure, job creation, human capital development and security, as well as prioritising investment in key sectors of the economy.

“Government will also make enabling policies which will encourage private investors to continue to invest in the key sectors of the economy,’’ the minister said.

She said government would no longer fund any foreign travel and overseas training by public servants from 2015, adding that only essential cases would be allowed.

“As part of the efforts to reduce expenditure, international travel within the public service will be severely curtailed.

“Also , unaffected are public sector wages as well as key initiatives in education, health and other areas critical to the country’s human development,” Okonjo-Iweala said.

The minister said the economy was still strong in spite of the falling global oil price, saying that IMF’s estimate showed the country’s GDP remained among the best in the world.

She said creating more spending by printing more money by the government, as suggested by some people, would lead to inflation which the country had been able to tame to 8.3 per cent. (NAN)

The Capital Market Committee (CMC) on Monday called for strong Nigerian investors’ participation in the Nigerian stock market to enhance stability and development.

Mrs Oluwatoyin Sanni, Chairman, Organising Committee,  CMC 2014 Retreat, made the call in Lagos at a news conference to herald the event.

Sanni, who is also the Group Managing Director of UBA Capital, said the market and the economy would be stable through strong participation of domestic investors.

“Our economy like most global market is sensitive to global development, but if we have a strong participation by domestic investors in our economy, it will help to make our economy much more stable,” Sanni said.

She said the market operators would ensure further development of domestic investors’ confidence in the market, noting that it was critical for long-term health and stability of the market.

Sanni said that “Nigerians are the one that have a long-term stake in the economy and one of the things that we hope to develop further is domestic investor confidence.

“This is very critical for the long-term health and stability of our market”.

According to her, the Nigerian capital market plays an integral role in the Nigerian financial market.

The financial market comprises the debt capital market valued in excess of 37.5 billion dollars and market capitalisation of 85 billion dollars.

She added that issues bordering on infrastructure and ways to finance Small and Medium Enterprises (SMEs) in Nigeria would top the agenda of the CMC retreat holding from Nov. 26 to 28 in Abuja.

Sanni said that infrastructure and SMEs played important roles in economic growth and development.

She said the retreat would focus on strategies for converting the gains of the Gross Domestic Product re-basing into wealth distribution through the capital market .

She added that the capital market masterplan would be unveiled at the retreat.

Sanni said that over 800 participants were expected from various parts of the economy for the retreat.

She added that key government functionaries such as the Coordinating Minister of the Economy and Minister of Finance, Prof. Ngozi Konjo-Iweala among others are expected to attend.

“We need to tie up the market and reach to people that is driving the transformation programme of the country because we are passionate about growing the market.

“The percentage of the capital market to GDP is still very low and a lot still needs to be done and this is the opportunity to link capital market to wealth creation,” she said.

The News Agency of Nigeria (NAN) reports that the theme of the 2014 retreat is ‘Capital Market: Creating Wealth. (NAN)

List of taxable luxury goods out next week

AS part of the cost saving devices announced on Sunday, the Federal Government has curtailed foreign trips of ministers, director-generals and other heads of parastatals in the guise of looking for Foreign Direct Investment or marketing Nigerian abroad.

Presidency source informed the Nigerian Tribune that henceforth, Nigeria embassies and consulars abroad would be made to live up to their responsibilities, by being true representatives in economic, cultural and social matters.

The development, it was gathered, would reduce number of times ministers and other officers would travel abroad for those functions.

“It is not only career officers that ban on foreign trips affected, trips by ministers and DGs will be curtailed too.

“If you look at the quantum of dollars and other foreign currencies the affected officers had spent in their numerous foreign trips in the last 10 years or so, you will be surprised that it is enough to set up a viable industry here in Nigeria.

“We are not stopping foreign trips entirely, what we are saying is that unless such trip is necessary and will add value to Nigeria, no minister or any top ministry officer will be allowed to embark on such a trip.

“Though some of the trips may be to generate foreign direct investment, Nigerian embassies will be made to be more active in this regard,” the source said.

On the proposal to tax luxury goods, Nigerian Tribune learnt that the list, which is already being compiled, would be out latest next month.

Some of the items being compiled for heavy taxation included private jets, yachts, alcohol, beverages, cars, choice properties and a host of others.

In its desire to shore up the country’s revenue base, Nigerian Tribune source said the Federal Government had increased the revenue target of the Federal Inland Revenue Service (FIRS) from the N75 billion 2014 target to N160 billion in 2015.

Though the target is considered to be on the high side, the source disclosed that the FIRS would be given the enablement to meet the desired target.

As part of the response, the Medium Term Expenditure Framework (MTEF) and the 2015 Budget proposal to the National Assembly had also been revised.

The government is now proposing a benchmark of $73 per barrel to the National Assembly, compared to the earlier proposed benchmark of  $78.

Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said though the government had been working hard on several scenarios and contingency plans in readiness for any eventuality, it was important to proceed in a measured manner, based on a complete understanding of the challenges.

“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary.

“But we should also not forget that we retain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies.

“Our strategy is to continue to strengthen the sectors that drive growth, such as agriculture and housing, while reducing waste with a renewed focus on prudence,” the minister said.

Reacting to the development, a constitutional lawyer, Professor Itse Sagay, on Monday, advised the Federal Government to tackle corruption and increase productivity in the non-oil sectors of the nation’s economy.

Sagay gave the advice in a telephone interview with the News Agency of Nigeria (NAN) in Lagos.

Sagay, however, said that the oil glut could be a blessing in disguise for Nigeria, adding that the country must stop its dependence on oil as the major source of its revenue and diversify into other sectors.

“Nigeria is blessed with abundant resources and not just the oil from the Niger-Delta region. But we have become very lazy and have been depending on oil revenue for many years now,” he lamented.

Mr Yinka Farounbi, Chairman, Nigerian Bar Association (NBA), Ikeja branch, also called for the diversification of the economy.

“We have been saying this all along that our dependence on crude oil as the mainstay of our economy should be minimal. There are other natural resources that can enhance the country’s internally generated revenue,” he stressed.

Meanwhile, experts in the economic and oil sectors of the Nigerian economy have thrown their weight behind the proposal to change the oil price benchmark in 2015 budget from $78 per barrel to $73.

They said a higher oil benchmark could widen fiscal deficit and does not reflect true position in the international market.

Managing Director, Nigeria Liquefied Natural Gas (LNG), Mr Babs Omotowa, in an interview with Nigerian Tribune, said the best Nigeria could do was to diversify revenue base.

“When we actually start looking for gas, I believe that we will have about five times more than we have now and that means more revenue for the country,” he stated.

Managing Director, Financial Derivatives Company (FDC) Limited, Mr Bismark Rewane, said the reality on the ground was that oil price fall was already having a negative effect on not only government revenues, but other economic variables.

He said falling oil prices could widen Nigeria’s deficit if a higher benchmark is assumed.

But the Head, Investment Research, Afrinvest West Africa Limited, an economic research and business advisory firm, Mr Ayodeji Ebo, said despite the unfavourable economic situation, the Central Bank of Nigeria (CBN) would continue to defend the naira.

Tribune

A total of 49,641,091 phone lines in Nigeria were dormant at Q3 2014, latest telecoms market information released by the industry regulator has shown.

The relative dormancy of phone lines is one of the key highlights of the telecoms numbers showing the gap between the 184,148,420 connected lines and 134,507,329 active lines, the latter representing lines that actually generate revenue for Nigerian telecoms companies.

The NCC information also underscores the declining fortune of fixed telephony in the country as active fixed lines have dropped to just 190,791 by Q3 2013.

The September 2014 statistics reveals that 1.33 per cent active subscriber growth was when pitted against August 2014 statistics released by the Nigerian Communications Commission (NCC).

While the total number of connected of lines by the end of September 2014 stood at 184,148,420, the number of active lines was 134,507,329, an indication that 49,641,091 lines representing 26.95 per cent of the overall connected lines in the country were dormant for the period under review.

The NCC information, according to Technology Times also underscored the declining fortune of fixed telephony in the country as active fixed lines had dropped to just 190,791 by Q3 2013.

Also, the mobile section of the Code Division Multiple Access (CDMA) had a total of 1,405,802 inactive lines, while the Fixed Wired/Wireless networks had 172,243 dormant lines.

From the 134,507,329 active telephone lines on the operators’ networks as at September 2014, the GSM networks accounted for 131,910,228 active lines, according to the NCC market information.

Nigeria’s telecoms industry teledensity climbed to 96.08 per cent in September 2014, compared to 95.20 per cent in August, this year.

1st Female owner of iPhone 6 in Nigeria, Miss Tobi Phillips flanked by Glo Brand

Globacom, Nigeria’s National telecom carrier, has emerged the first Nigerian operator to officially sell iPhone 6 and iPhone 6 Plus in Nigeria. The operator’s flagship outlet was open at midnight on Friday, November 14, 2014, offering buyers the opportunity to be among the very first set of Nigerians to own the devices.

A number of Globacom subscribers kept vigil at Globacom’s Gloworld till midnight when Apple officially flagged off the sale of authentic iPhone 6 and iPhone 6 Plus in Nigeria. Apple Regional Sales Manager for Africa, Mr. Paddy McManus was on hand to witness the sale of first set of the devices to Nigerians at the Adeola Odeku GloWorld outlet. He commended Globacom for the creativity of the launch and especially the impressive turnout of subscribers.

“This is a very loud move from a loud network in Lagos. I am extremely impressed. This is what usually happens all over the world when Apple is launching its products. Nigerians are really great,” McManus exclaimed. An On Air Personality, Mr. Folajinmi Akinsola became the first Nigerian to own an authentic iPhone 6 sold by any telecommunication network in Nigeria when he purchased the phone at the Gloworld shop on Adeola Odeku, Victoria Island, Lagos immediately after it was officially unveiled at 12.05a.m. on Friday. Former beauty queen, Miss Tobi Phillips kept vigil to emerge the first Nigerian female to own an authentic iPhone 6 when she paid for the phone which she earlier pre-ordered.

THISDAY

The Central Bank of Nigeria (CBN) and key players in the power sector, including gas suppliers, electricity distribution and generation companies, among others, on Tuesday signed a N213 billion definitive agreement to begin the implementation of the CBN-Nigeria Electricity Market Stabilisation Facility (NEMSF).

This is expected to be followed by disbursement of funds and monitoring of the implementation of the agreements.

Speaking at the ceremony in Abuja, the CBN Governor, Mr. Godwin Emefiele, said the intervention would reset the economics of the power sector and address liquidity challenges occasioned by legacy debts and revenue shortfall in the sector.

He said all parties have had to make compromises in order to make progress in the interest of the country.

Emefiele however stated that in order to resolve the sectors liquidity challenge, the CBN was providing the facility aimed at settling legacy debts and shortfalls in revenue during the interim period and to also guarantee the take-off of the Transitional Electricity Market (TEM).

He disclosed that FBN Capital had been appointed by the CBN as transaction advisor for the intervention, while Meristem securities and Detail Solicitors and Stream Sowers & Kohn (SSK) have been appointed as fund managers and legal team respectively.

He said the facilities would be administered through deposit money banks, while a special purpose vehicle that complies with Section 31 of CBN Act 2007 would serve as an intermediary between the banks and the electricity market players.

“NERC shall reset the Multi-Year Tariff Order (MYTO) to ensure that it provides for the loan repayment including the costs of setting up and operating the Nigerian Electricity Market Stabilisation Facility (NEMSF),” Emefiele said.

He added that other players in the value chain must commit to gas supply at higher volumes, while Gencos and Discos would commit to utilising the funds for equipment acquisition, refurbishment and upgrade.

The intervention fund is however expected to be repaid over a period of 10 years at a 10 per cent interest rate per annum; it will be used to settle the N36.9 billion legacy debt owed gas suppliers by the defunct Power Holding Company of Nigeria (PHCN) and cover shortfalls in the Nigerian electricity market. These shortfalls are majorly occasioned by technical losses recorded in the sector.

On her part, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, said the sum of N36.9 billion in legacy debts to the power sector had all been settled through the CBN-led intervention scheme.

She said the outcome of the negotiations had ensure that “all claims are hereby settled,” adding that going forward, appropriate security measure had been put in place to ensure that gas supply to the power sector is paid for.

Alison-Madueke in her remarks at the meeting, disclosed that undisputed legacy debt owed gas suppliers over the years are now being settled through the CBN led intervention fund.

She added that the intervention would set a new page in the Nigerian domestic gas market.

“Let me add that today’s intervention is also complimented by a reciprocal commitment by the gas suppliers. A medium term gas supply from the various gas suppliers is being made today. Today’s commitment will bring to the grid an additional 2.5 billion cubic feet per day of gas over the period from now till 2017,” Alison-Madueke said.

The Minister of Power, Prof. Chinedu Nebo, said the agreement represented an unprecedented synergy among the players adding that the sector had now come of age.

The apex bank is collaborating with the Ministry of Petroleum Resource, Ministry of Power and the Nigerian Electricity Regulatory Commission (NERC) to intervene in the Nigerian Electricity Supply Industry (NESI) to help resolve its liquids challenges through a stabilisation fund aimed at settling certain outstanding debts as well as guarantee the take-off of the Transitional Electricity Market (TEM).

Among other things, the CBN stabilisation fund which is to be disbursed through the deposit money banks would be given at 10 per cent interest rate per annum with a tenor not more than 10 years.

On the other hand, under the agreement, gas suppliers are to commit to assured gas supply at higher volumes while both distribution and generation firms would ensure that funds are utilised for equipment and infrastructure acquisition, refurbishment or upgrade.

Parties which participated in the signing included Chevron, Shell Petroleum, Pan-Ocean and Seplat, as well as electricity generation and distribution companies among others.

THISDAY