Minister of Finance for State,Mr Bashir Yuguda,

Mr Bashir Yuguda, the Minister of State for Finance, on Tuesday announced that federal, states and local governments had shared N593.33 billion revenue that accrued to the nation in October.

Yuguda made this known in Abuja when he briefed newsmen on the outcome of the Federation Accounts Allocation Committee (FAAC) meeting.

He said that the shared amount comprised statutory revenue of N484.32 billion, N35.55 billion Subsidy Reinvestment and Empowerment Programme (SURE-P) funds and N6.33 billion refunded by the Nigerian National Petroleum Corporation (NNPC).

Other component of the money, according to him, is Value Added Tax (VAT) amounting to N67.14 billion.

Highlighting the distribution quota of the revenue among the three tiers of government, Yuguda said the Federal Government received N224.26 billion representing 52.68 per cent, and states, N113.75 billion, representing 26.72 per cent.

The local governments, he said, received N87.69 billion, amounting to 20.60 per cent of the distributed revenue.

He also disclosed that N47.12 billion, representing 13 per cent derivation revenue was shared among the oil producing states.

On VAT, he said that the gross revenue collected for the month increased by N2.03 billion to N67.13 billion as against N65.1 billion recorded in the preceding month.

The minister said that the nation generated N420.03 billion as mineral revenue during the period as against N374.74 billion generated in September, adding that the performance indicated a “marked increase” of N45.29 billion between the two months.

“The non-mineral revenue for the month of September is N116.66 billion, which when compared to the N127.36 billion generated in August shows a decrease of N10.7 billion.

“FIRS received N2.47 billion, the Nigerian Customs got N3.83 billion and DPR received N5.17 billion as their cost of revenue collection for the month of September ,’’ he said.

In his comment, the Chairman, Finance Commissioners Forum, Timothy Odah, said that the states were asking for two billion dollars from the Excess Crude Account to enable them complete ongoing projects.

Odah lamented that the states and the local governments were suffering from dearth of fund to carry out meaningful projects at the local levels, adding that there was need for them to create jobs for the people.

He also said that state governments were still clamouring for total removal of fuel subsidy, according to him, is not necessary considering the fact that there is “no enough money”.

“There is no reason giving out what you do not have,” he said.

On the declining global oil price, Odah said the state governments were aware and stressed that diversification of the economy was necessary to cushion the effect of the development “in the long run”.

Heineken NV of the Netherlands on Tuesday restated its commitment to the proposed merger between Nigerian Breweries (NB) Plc and Consolidated Breweries (CB) Plc.

The foreign core investor in both companies said in a statement made available to the News Agency of Nigeria (NAN) in Lagos that the re-assurance became imperative in spite of their decision to abstain from voting in the Dec. 4, 2014, scheduled separate court-ordered meetings of both companies.

According to the Amsterdam, Netherlands-based international brewer, the business combination of NB Plc and CB Plc would on consummation, unify, strengthen and make the operations of the company cost effective.

Heineken said that the proposed consolidation of the operations of NB and CB, “is based on a significant and compelling strategic rationale.

They said that in addition to efficient operations, the proposed merger would allow Heineken to tap growth in Nigeria, sub-Saharan Africa’s second-largest beer market.

According to some analysts, the merger would broaden the company’s product offerings through enriched premium, mainstream and value segment products portfolio.

The General Secretary of the Independent Shareholders Association of Nigeria (ISAN), Mr Adebayo Adeleke, said that investors were happy about the merger because of the enhanced return on investments the synergy would create.

Adeleke said contrary to other opinions, the merger would also lead to operational efficiency, human capital development and optimal utilisation of resources.

“By distributing the enlarged product portfolio through the combined network of the two companies, considerable costs savings are expected from distribution,” he said.

Adeleke also identified other areas of maximizing costs as operational efficiency in procurement, supply chain management and critical support services.

He said that the anticipated value creation of a new NB would lead to reduction in overall costs-income ratio, enhanced profit margins and increased returns on investments for shareholders.

The ISAN secretary said that the business combination of BN and CB would stimulate higher liquidity, post consolidation, for shareholders of the new company.

NAN reports that the scheme of the merger provides for the issuance of 396,857,294 ordinary shares of 50k each by Nigerian Breweries, in exchange for the existing 496,071,617 ordinary shares of Consolidated Breweries, at a ratio of four new shares for every five held.

A further analysis of the scheme of arrangements showed that Consolidated Breweries shareholders technically were offered a subtle premium in the business combination.

Some analysts said that post-consolidation of the operations of the two companies, Nigerian Breweries market capitalization would increase following the appreciation of its shares to about 7,960 million.

NAN also recalls that before the proposed merger, Heineken NV held a 54.10 per cent stake in NB and 53.80 per cent in CB.S

NB’s current product profile includes Heineken, Star, Gulder, Maltina, Amstel Malta and Goldberg, while CB produces “33” Export Lager beer, Maltex, Williams and Turbo King Dark Ale, amongst others.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has advised political office holders and politicians to prune the number of aides working with them.

Comrade Francis Johnson, the President of the association, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja on Tuesday.

Johnson, who was reacting to the austerity measures announced by the Federal Government  in response to the falling price of crude oil, the major revenue earner for the country, said such measure had become imperative to rescue the economy.

He said that a reduction in the number of aides was a more meaningful measure aimed at cutting cost rather than imposing “unnecessary’’ austerity measures on Nigerians.

“The huge number of political appointees as aides to the Presidency, the ministers, state governors and their commissioners is simply wasting  national resources and putting pressure on the economy.’’

PENGASSAN also cautioned the Federal Ministry of Finance against stifling the economy through non-release of funds for development.

The union said it favoured tightening the noose around all avenues of leakage and wastage.

Instead of introducing austerity measures that would further impoverish and inflict more pains on the people, governments at all levels should consider reducing to the barest minimum the numbers of aides, Johnson said.

“If we are looking for ways to cut cost, I think the first place to focus is in the direction of reducing the number of Presidential aides from 133 to the barest minimum of about 20.

“The huge amount we spend in paying these aides can be used on developmental projects and boosting of the nation’s economy.

“The governors, ministers and federal and state legislators should also be made to reduce their aides to a sizeable number that our economy can bear and whatever is got from this exercise should be used in supporting and bolstering the economy.”

He also advised the government to develop other sectors along with the extractive and manufacturing sectors in order to diversify the national economy from its monolithic dependence on oil and gas.

According to him, it is only the development of other minerals, agriculture and the manufacturing sectors that will help Nigeria to escape the challenges posed by the dwindling global oil price.

The president noted that the price of oil was critical to the world economy, given that oil was the largest internationally traded good both in volume and value terms.

“The dwindling oil price is now raising palpable fear due to the over dependence on oil and gas exports for over 90 per cent of our country’s foreign exchange earnings.”

He noted that the excess crude account created to cushion the economy at difficult times like this had been depleted.

The president attributed the oil price drop and its effects on the Nigerian economy to a number of factors, including the lack of foresight and strategic plan towards local refining and petrochemical activities.

“We do not have significant refining capacity and we spend crude oil earnings to import refined petroleum products for local consumptions.

“The four state-owned refineries are not able to meet our local demand for petroleum products due to some avoidable and unavoidable factors.

“These are crude oil theft, pipeline vandalism, lack of formidable legal framework such as the Petroleum Industry Bill (PIB), and huge importation of refined products.”

He, however, called on the government to do the needful by carrying out the Turn Around Maintenance (TAM)of refineries  and ensure adequate and regular supply of crude to the existing refineries.

“The PIB which provides legal and regulatory frameworks as well as comprehensive guidelines for the operations and activities in the oil and gas sector is stuck in the National Assembly.

“There is the need for the legislators to consider the bill and not waste time in passing it into law, so as not to further delay or debar investment decisions that can spur development in the nation’s oil and gas sector.”

The union leader advocated for necessary incentives to facilitate the private sector investments in the upstream, midstream and downstream sectors of the oil and gas industry.

Also, Comrade Igwe Achese, the National President, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), said the austerity measures were not necessary.

Achese instead urged governments at all levels and the national Assembly to wake up to their responsibilities. (NAN)

Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele

The Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, said on Tuesday in Abuja that the bank’s Nigeria Electricity Market Stabilisation Facility (NEMSF) would improve power supply nationwide.

Emefiele stated this while signing a Memorandum of Understanding (MoU) with the Ministries of Petroleum Resources, and Power, Nigerian Electricity Regulatory Commission (NERC) and other stakeholders, on accessing the NEMSF.

According to him, the facility will kick start the electricity market in a way that it will ensure that the CBN delivered tangible improvements in power supply.

“We see this facility as a major initiative to reset the economics of the power sector.

“In partnership with the banking sector, the CBN will provide this facility to address shortfalls in power sector revenues caused by adjustments in electricity tariff and legacy gas debt,’’ he said.

Emefiele added that “in exchange for this intervention, we expect parties that are signing this agreement today to ensure that funds are paid as at when due.

“They should ensure that all input into the generation of power are wrapped up in a consistent manner and still invest the fund and ensure improvement in generation plant maintenance.

“The parties involved in this deal should also ensure upgrade of transmission and distribution networks, including transformers.’’

He said that the only way to make the populace to appreciate the efforts being made in the power sector was to guarantee improved power supply.

The CBN boss said that the bank had earmarked N213 billion for the NEMSF, adding that the fund would be disbursed at 10 per cent interest per annum with a tenure that would not be more than 10 years.

He said that the facility would be administered through deposit money banks while NERC would reset the Multi-Year Tariff Order (MYTO) to accommodate the repayment of the loan. (NAN)

Toyota Motors will start selling its first hydrogen fuelled car, the Mirai, in December, making it the first vehicle of this type produced in series to hit the market.

The Mirai (meaning “future” in Japanese) will be available in Japan from December 15. It’s recommended selling price inclusive of taxes is $US62,094 ($A67,183), according to a company statement.

Toyota aims to sell about 400 units in Japan until the end of 2015 and plans to launch the vehicle in Europe and the United States around next northern summer.

Toyota Executive Vice President Mitsuhisa Kato says that in terms of innovation the car goes far beyond even the Prius (a hybrid manufactured by Toyota, which also was a market pioneer), according to the Kyodo News Agency.

In a video shown at its launch event, company President Akio Toyoda said the car represented a new era for the automotive industry.

The Mirai can run around 650 kilometres on a tank of hydrogen which takes about three minutes to recharge completely and emits only water vapour.

The sedan also includes a hybrid system that allows the car to run on petrol.

The model was originally presented last June, but Toyota hadn’t until now said when it would be available at dealerships.

Mirai’s launch is part of an initiative of the Japanese public and private sectors to achieve a less-polluting, hydrogen-based society by 2040.

Toyota competitor Honda Motor on Monday presented its own hydrogen-fuelled model due for release in March 2016 with limited marketing.

The Japanese government earlier in 2014 announced that these cars would have a special subsidy plan which, in Mirai’s case, would cut its price in Japan by up to $US42,880.

This formula was used to introduce the Toyota Prius in Japan, the first hybrid to be manufactured in series in 1997 and the initial price of which was around $US20,000 at the time.

Culled from: https://au.finance.yahoo.com

Registrar, Institute of Capital Market Registrars, Dr David Ogogo

The Registrar, Institute of Capital Market Registrars, Dr David Ogogo, on Thursday identified fraudulent financial reporting as one of the major factors responsible for collapse of companies in Nigeria.

Ogogo stated this in Abuja while presenting a paper on “Corporate Governance: The Role of Stakeholders, Media and Compliance Officers” at the 2014 Journalists’ Academy organised by Securities and Exchange Commission.

He said that unreliable management and board, unusual emphasis on shareholder value, regulatory deficiencies and lack of adequate internal control mechanism were other causes of company collapse in the country.

He urged relevant regulatory agencies to ensure that organisations were annually subjected to Corporate Governance Audit (CGA) to help in preventing them from collapsing.

“The CGA should be for public quoted companies, Federal and State Ministries, Departments and Agencies and Parastatals,’’ he said.

Ogogo said that corporate governance framework encouraged efficient use of resources and required accountability on those resources.

“Its aim is to align, as nearly as possible, the interests of individuals, corporations and the society. It is concerned with holding the balance between economic and social goals.

“It is intended to increase the accountability of the company and to avert disasters before they occur,’’ he said.

He said that there should be reliable public reporting and avoidance of excessive power “at the top of the business and a balance board composition”. (NAN)

Mr John Ibe, the Director, South West, Federal Ministry of Works, said on Thursday that the rehabilitation work on the Apapa/Oshodi Expressway would be completed before January 2015.

Ibe said this in Lagos at a meeting between oil terminal operators and Julius Berger Nigeria Plc – the contractor rehabilitating the expressway.

“We are here to address the problem of the gridlock; we are here with the stakeholders to find a solution on how the contractors could move in and do their work.

“I am happy to say that we have succeeded. The contactor is moving immediately to start work.

“We are sure that in no time the work will be completed. In a couple of weeks, they will finish the job, if access is giving to them.

“From the meeting here, you can see that Julius Berger was ready to work but there was no access for them to come in and work.”

Mr Godwin Eke, Federal Controller of Works, Lagos, said that Julius Berger would complete the Creek road, Apapa, soon before embarking on the repair of the major road linking the Ibru oil terminal.

“From now on, Julius Berger is moving back to site even though they’ve been working around Creek Road but now they are coming to finish up this access around Ibru Terminal.

”My impression is that they are coming back to finish the access to Ibru terminal but this is most critical.

“You heard them in the meeting say they are moving back. Is not that they’ve not been working, they’ve been working but from other locations like Creek Road.

“The major problem was lack of communication. Now we are communicating, things will change; they are cooperating.“

The General Manager, Ibru Oil Terminal, Mr Victor Enebeli, said that the operators would give the contractor maximum cooperation to complete the contract.

“He has been mentioning one fear and he has always been complaining, on limited access to his place of work and I want to assure him the NUPENG PTD is here.

“Enebeli said he was shocked this morning he got there was no truck. We have sat down and we have decided on a mode of operation that will give them that unlimited access.

“Once this meeting is through we are holding another meeting here to address that issue. It is not magic that he sees the road this way.

“If Julius Berger is assuring us that they are going to come to site and do what needs to be done to achieve what they need to achieve even before the four weeks, they have that access.

“So the access shouldn’t be a problem and I tell you if we are working as they are working.

“They say they will leave the service lane to us and one portion of the major road, I tell you, you won’t have problem working.”

The Project Manager, Julius Berger Construction Company, Mr Wolfgang Panzer, said it was possible to complete the Ibru Road off Apapa/Oshodi Expressway “if the access road is free“.

“It’s the other way, when I was coming here I was surprised that the whole carriage lane is free, so it works somehow.

“It works and the experience is from time to time before when we have even stakeholders’ stakeholders meeting.

“I remember two or three stakeholders meeting we had before and for two, three days, the main carriage way was free.

“So it is possible somehow that the access to our construction site is free, if we see a situation as today that the main carriage way is free. If we find a situation as today, we can work in the night.

“Working in the night is not a constraint for Julius Berger. There are several other constraints that we have when we are working during the night time.

“Night time is not an option for us because all the service units have to be available, like machine, techniques, service lorries and all these things. We have no possibility to shift them day and night.”(NAN)

Liberia Finance Minister,Amara Konneh

Amara Konneh, Liberia Finance Minister, said the country would see its economy shrink by 0.4 per cent this year and 2015 could be even worse as a result of Ebola outbreak.

He said on Friday in Monrovia that the country had projected growth of 5.9 per cent this year before Ebola struck the country, crippling agriculture and its fast-growing mining sector in particular.

Last month, the government announced that the economy had fallen into recession.

“The impressive real GDP growth rate that Liberia sustained over the last few years, which was approaching nine per cent just one year ago, has now dipped into negative territory, signifying the shrinking of our economy,” he said.

Konneh said the economy would likely be slow to recover.

“With economic activities expected to further deteriorate in the remaining months of 2014 and likely even worsen in 2015, our growth rate for next year is still subject to revision,” he said. (Reuters/NAN)

The world’s largest crane ship, which is capable of lifting oil rigs, has set sail from its shipyard in South Korea for Rotterdam Port in the Netherlands.

The Pieter Schelte, which left South Korea on Wednesday, is due to arrive at the port for completion in December.

The vessel is 124m (407ft) wide and 382m (1,253ft) long – as long as the Empire State Building is high.

Designed to assist offshore oil rigs, it reportedly cost around £1.9bn ($2.97bn) to build.

The Pieter Schelte was commissioned by Swiss company Allseas, which specialises in offshore pipeline installation and subsea construction.

It has been billed as the biggest ship in the world – though the title is contested.

Unlike oil tankers or container vessels, crane ships specialise in lifting heavy loads and often assist in offshore construction.

In partnership with the Port of Rotterdam, the ship will be taken to Maasvlakte 2, an extension of the port, where a special pit has been drained to house the vessel.

After its completion, it will sail to the South Stream project in the Black Sea to lay pipelines there.

The ship will be used to install and remove offshore oil and gas rigs as well as to lay pipes.

Allseas says the Pieter Schelte, which was built by Daewoo Heavy Industries in South Korea, will be able to lift loads of 48,000 tonnes.

However, the company has said it will build an even bigger vessel.

Allseas says it is planning a sister ship measuring 400m (1,312ft) long and 160m (525ft) wide.

Capable of lifting 77,000 tonnes, this vessel would be able to work on the world’s largest oil rigs and should be in operation by 2020.

The title of world’s biggest ship is difficult to define, but the largest floating vessel currently in operation is the Shell Prelude, a 488m (1,601ft) long platform for liquefied natural gas anchored in a South Korean port.

However the vessel is unable to propel itself, leading to questions as to whether it can actually be classified as a “ship”.

The world’s longest moving vessel is the Maersk Triple E class, a family of container ships each of which is 400m (1,312ft) in length.

-@BBC News

As from the first quarter of next year, prospective buyers of vehicles made in Nigeria will have structured financing arrangement to enable them purchase them.

The Director General of the National Automotive Council (NAC), Engr. Aminu Jalal stated this at a stakeholders’ forum NAC organised to sensitise dealers of used vehicles on the need for them to be part of the new automotive policy of the federal government.

Jalal said a memorandum of understanding has been signed with a South African financial company with expertise in financing vehicle purchase at very low interest rate in addition to long-term payment structure.

He said the MoU was signed in October this year in South Africa, “which means they will allocate resources and people to the project and apply for banking license from the Central Bank of Nigeria and once they get it they will start. We hope that early next year they will start. We are expecting them this month.”

He said there are financing schemes for vehicle purchase in the country but that the interest rate was not pocket-friendly.

According to him, the reason for the policy is to bring back automotive assembly operations and to develop a lot of local content in the process.

He said it is hoped that “in the future there would be enough vehicles at affordable prices with the vehicle financing scheme so that Nigerians will be weaned away from the use of used vehicles.”
He recalled that in the past Nigerians who had jobs bought new cars through financing schemes and that in the future Nigerians will be able to purchase new vehicles.

The dealers in used vehicles, he said were being sensitised to be part of the new policy and to gradually move away from the sale of used vehicles to new ones.

“They will be dealing in new vehicles and they can sell used vehicles that are brought in by their owners who want to buy new ones.”

On the number of assembly plants on stream, he said the old assembly plants in the country were already working, listing VW, Peugeot, Layland, Anamco is partnering with a local company to assemble trucks, Dana Motors is assembling KIA vehicles.

He said other companies like Toyota, Ford, Honda, Mitsubishi already have partners in Nigeria and they have done studies, saying that maybe their intentions will be clearer next year.

THISDAY

The hugely popular UK-designed ‘baby’ off-roader, the £40,000-plus Range Rover Evoque

At first glance, the new car unveiled at a motor show appeared to be an updated model of the Range Rover Evoque.

With its signature body shape, lights and radiator grill and silver logo across the front edge of its bonnet, it was the spitting image of the British bestseller.

But in fact, it was a brazen copy of the hugely popular UK-designed ‘baby’ off-roader – and a fraction of the price.

Little-known Chinese carmaker LandWind launched its £14,000 X7 at the Guangzhou motor show in China last week.

Range Imitation: Chinese carmaker LandWind launched its own £14,000 X7 at the Guangzhou motor show in China last week

Its uncanny similarity to the £40,000-plus Evoque’s distinctive design provoked an angry response from Jaguar Land Rover, which may take legal action to protect its brand.

The British manufacturer has just opened its first car factory in China in a venture with local firm Chery.

Jaguar Land Rover chief executive Dr Ralf Speth told Autocar magazine: ‘The fact that this kind of copying is ongoing in China is very disappointing. The intellectual property (IP) is owned by Jaguar Land Rover and if you break that IP then you are in breach of international regulations.’

But drivers looking for a fashionable car at a bargain price might want to wait for safety inspection results.

LandWind’s earlier CV9 people-carrier scored just two stars out of five in European crash tests in 2010.

-@DailyMail

Dr Samuel Nzekwu, former president, Association of National Accountants of Nigeria (ANAN), on Sunday urged the Federal Government to diversify the economy to meet the challenges of prevailing slump in oil prices.

Nzekwe told the News Agency of Nigeria (NAN) in Lagos that must improve the performance of the non-oil sector, particularly the agricultural sector, in order to mitigate the effect of the slump on the economy.

“Everybody was talking about diversifying the economy. Oil could finish and we were being warned everyday that one day oil would finish.

“Most countries use oil windfall to develop infrastructure and create enabling environment for their economies to thrive.

“It is unfortunate that we waited so long until now when the price of oil in the international market came down and we started planning,’’ Nzekwe said..

He said that since the nation’s economy was oil-based, anything that happened to oil would affect the country.

The former ANAN president recommended that the budget benchmark for 2015 be cut down to 70 dollars as against the 73 dollars proposed by the government.

“If the benchmark is adjusted to 70 dollars, whenever the need arises, there could be supplementary budget. There is no need to put the benchmark at the point you are not sure of”, he said.

He also called for strict implementation of annual budgets in order to move the nation forward.

“All along, because of poor budget implementation, capital projects have become more like recurrent expenditures because of poor performance, poor materials and embezzlement.”

According to him, a situation where same capital projects are rolled over year-in-year out is not healthy for the economy.

He also said that the federal government must tackle corruption and insecurity, invest in critical infrastrusture as well as end epileptic power supply to save the economy.

Nzekwe, however, lauded the idea by government to tax luxury goods to generate more revenue.

“Is a known fact that Nigerians do not pay tax. The Federal Inland Revenue Service (FIRS) should do more enlightenment about the Value Added Tax (VAT) because the VAT only affects the end users.

“FIRS should set up effective and efficient machinery to improve tax collection, not by coercion or arbitrariness, but in a developed manner to improve Internally Generated Revenue.

“The FIRS has not done well in the collection of VAT as a result of not being able to register all vatable persons and organisations in the country.

“A lot of organisations are outside VAT net and the FIRS is only waiting for them to fall into the net before getting hold of them,’’ the former ANAN president said.

He noted that the introduction of the Tax Identification Number (TIN) has helped to improve tax collection, but said the system was not good enough as organisations are still evading tax payment.

“Money from VAT alone is capable of financing the budget to a very large extent.

“The taxation issue has come to a point that companies and individuals operating in the country must be made to meet minimum regulatory requirements to do business if they are demanding for foreign exchange.”

Nzekwe said henceforth such organisations should also be made to produce evidence of registration with the Industrial Training Fund and their contribution to the national pension scheme.

“If these conditions are put in place, they would reduce the rush and pressure mounted on the naira by those companies seeking for foreign exchange,” he told NAN. (NAN)

The  cargo shed of the  Murtala Muhammed International Airport (MMIA), Lagos, would remain shut until cargo operators comply with new operational procedures that would not threaten national security and collection of revenues.

The  Nigeria Customs Service (NCS) which  said this on  Monday in Lagos, however, said it would commence to facilitate the release of perishable goods to their importers.

The News Agency of Nigeria (NAN) in Lagos recalls that the cargo shed was shut last Wednesday following violation of procedures by clearing agents at restricted sections of the terminal.

Mr Taju Olarenwaju, Customs Area Comptroller (CAC), MMIA Command, however,   said that government had directed Customs officials to identify perishable goods and clear them.

He listed them as those that fell under  medical and diplomatic goods, which had remained trapped in the cargo terminal due to the crisis.

Olarenwaju said that the command would use its internal checking measures to identify the goods that fall into these specialised categories   for facilitation.

He assured the importers of such goods that they would not suffer from the infraction caused by clearing agents.

He noted that the NCS had the power to deal with any violators or saboteurs who threatened national security and the collection of revenues for government.

Olarenwaju  said that government would continue to keep  the cargo warehouse closed because the clearing agents had  demonstrated that they were not ready to comply with regulations.

The CAC said that agreements signed with the agents in the past had failed as the agents had consistently violated the rules that restricted their access to some parts of the cargo terminal.

“It has become increasingly insecure to carry out businesses at the cargo section of the airport because the agents have through their collective actions continued to threaten national security.

“They have shown that they are economic saboteurs who threaten the security of the airport and the NCS will not fold its hands and allow this.

“The agents have displayed lack of capacity to enforce the new regulations in sensitive areas where cargo is kept at the airport.

“The warehouse remains shut until the agents and terminal managers show capacity to operate without threat to security,’’ he said.

Olarenwaju said that the NCS would not allow any system collapse, bomb blast or decline in revenue collection at the airport. (NAN)

Gov. Babatunde Fashola of Lagos State on Monday presented a 2015 budget proposal of N489.69 billion to the state house of assembly for consideration.

The News Agency of Nigeria (NAN) reports that the amount was the same as that of 2014.

The breakdown shows that education got  N82.11 billion or 16.6 per cent as against  N77.42 billion or 15. 81 per cent recorded in 2014.

Environmental protection got a vote of N34.95 billion or 7.1 per cent instead of N39.72 billion or 8.11 per cent it was allocated in 2014.

Recreation, culture and religion got N3.12 billion or 0.6 per cent as against N3.48 billion or 0.71 per cent in 2014.

Housing and community amenities got N49.03 billion or 10 per cent as against N50.54 billion or 10.32 per cent in 2014, while health was allocated N44.62 billion or 9.1 per cent instead of N37.81 billion or 7.72 per cent it was voted in 2014.

Public order and safety got N15.55 billion or 3.2 per cent instead of N17.98 billion or 3.67 per cent it got in 2014, while social protection recorded N1.59 billion or 0.3 per cent as against N2.47 billion or 0.50 per cent in 2014.

Fashola said that the budget size was retained in order to keep zero deficits for the incoming government.

Fashola will be leaving office in May 2015 after completing two terms.

“We have retained the same budget size of 2014 to keep zero deficits.

“This will give the administration the room to start up very quickly,’’ he said.

He said that the 2015 budget would focus on payment of contractors’ liabilities to enable the government to complete as many projects as possible before handing over to the next administration.

“For example, out of the 400 roads that we promised, we have completed over 190 in the last three years, with 210 at various advanced stages.

“The on-set of dry weather provides the opportunity to complete all of them,” he said.

Fashola said that the government had started compiling a list of another 400 roads that would be handed over to the next administration for consideration, adoption and implementation.

He said that this would help to accelerate reconstruction of inner city roads.

The governor said that the highlights of the budget would be settlement of outstanding pension liabilities.

“Without consultation with the states, the Federal Government has reviewed pensioners’ entitlements upwards by 142 per cent without a corresponding 142 per cent upward review of states’ revenues.

“Our government’s compassion for these pensioners has weighed more heavily on our minds than the legal misfeasance of the Federal Government.

“Our government now budgets for the 142 per cent arrears in addition to 12 per cent and six per cent recent reviews.

“This is the least that we think these public servants deserve.

“Apart from this, our contributory pensions have been largely up-to-date except for a few parastatals for which we are also making provisions.

“We want to substantially reduce pension difficulties in Lagos before the next administration comes in; even if we cannot totally solve them, we intend to leave behind a sustainable plan for their final resolution,” Fashola said.

Mr Adeyemi Ikuforiji, the Speaker of the assembly, said that when passed into law, the 2015 Budget Bill would receive strong and consistent fiscal management.

Ikuforiji noted that Nigeria was experiencing a fall in oil price.

“As legislatures, we recognise that some economic externalities greatly affect socio-economic growth and are sharp enough to influence budget re-prioritisation,” he said.

The 241st Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN), which ends today, will be the focus of investors, financial market analysts and bankers.

This all-important meeting, which comes up amid the downswing suffered by the naira that hit a record low of about N180 to a dollar at the interbank market last week, as well as outflow of foreign portfolio investment is expected to consider changes to interest rate and other monetary policy tools.

Although the naira has been depreciating in other segments of the forex markets, its decline at the regulated Retail Dutch Auction System (RDAS) in the past two weeks has heightened speculation that MPC may adjust the exchange rate band upward. The exchange rate band is presently at + or – N155/$.

In response to the increasing dollar demand, the CBN has sold approximately $6.1 billion at the official window within the last two months in addition to undisclosed amounts at the interbank market via ad-hoc interventions

The forex market has in the past two weeks, resisted various measures introduced by the central bank to control the exchange rate volatility.

More so, as the threat to price and macroeconomic stability becomes stronger, industry watchers would be eager to know the response of the 11 ‘wise men’ MPC (excluding Dr. Kingsley Moghalu whose tenure expired this month), to the challenge posed by the dwindling crude oil prices and revenue to the country.

The precarious situation in the economy last week forced fiscal reactions as a number of economic stabilisation measures were announced to shield the economy from exogenous shocks.

As part of the measures, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had said the 2015-2017 Medium Term Expenditure Framework (MTEF), which was recently submitted to the National Assembly had been revised from a budget benchmark of $78 per barrel of oil for the 2015 budget, down to $73 per barrel. According to her, the measures are designed to boost non-oil revenues further, plug loopholes and wastage in the system as well as cut unnecessary expenditure in order to cope with the situation, which are scenario-based.

The slide in the prices of crude oil, the country’s major source of revenue has continued to rattle policy makers. The development was even worsened by production losses occasioned by shut-ins and shut-down of trunklines at various oil terminals, which also contributed to the drop in revenue.

But oil prices rose on Friday recording its first weekly gain in two months with benchmark Brent crude returning to above $80 a barrel due to a rally that was triggered by speculation of an Organisation of Petroleum Exporting Countries’ (OPEC) output cut.

Nevertheless, though the consumer price index (CPI), which is used to gauge inflation in the country simmered down to 8.1 per cent in October, from 8.3 per cent in September, the increased terrorism as a result of activities the Boko Haram sect and anticipated disbursement of funds to finance campaign projects as the 2015 elections draw nearer, have been identified as some factors that would heighten inflationary pressure in the short-term.

Also, Nigeria’s external reserves, which is derived majorly from crude oil revenue fell by $8.295 billion or 18.5 per cent to $36.541 billion on November 14, compared to the $44.836 billion it stood on September 19, when the last MPC meeting was held.
In addition, the recent conclusion of the United States Federal Reserve $4.5 trillion bond-buying programme, a radical monetary policy it had introduced nearly six years ago to steer the country’s economy, experts have argued has also created significant capital flow reversals from the country.

To this end, analysts at BGL Securities Limited argued that with the exchange rate pressure, retaining interest rate is not an option.
They stressed that the dawn of the much expected oil price shock and the consequent exchange rate and assets prices volatility in the last one month demand major monetary action to moderate if not stemmed.

“We opined that giving the naira exchange rate a breather along the line of wider acceptable volatility band and/or official shifting of the midpoint to a higher level appears to be the most viable option alongside some semblance of further tightening via possible increase in private sector Cash Reserves Ratio (CRR),” they added.

According to BGL Securities analysts, the challenges in the economy portend threats to key economic fundamentals through the exchange rate and driven largely by the high hot monies in the economy.

“We expect the option of an increase in the benchmark interest rate with a combination of an asymmetric corridor to be high on the plate. “This could improve the attraction of Nigerian assets to foreign investors due to the consequent higher risk adjusted real return on Nigerian assets.

“Hence, a 50-100 basis points increase in the MPR is not unlikely alongside a possible removal of the lower corridor of the MPR while the upper corridor is retained.

“Another set of option is the possible devaluation of the naira by a shift in the exchange rate midpoint to N160/$1 and/or expansion of the band around the policy midpoint from +/- 3% to between +/- 5% to +/-10%.

“This move could be accompanied with a further increase in the CRR on private sector deposits to between 18-20 per cent to further reduce systemic liquidity,” it stated.

Also, analysts at Afrinvest West Africa Limited anticipates that the MPC would design strategies that deliver short, medium and long term solutions to the deteriorating macroeconomic outlook.

They also noted that the MPC would be required to take an active role, designing long term strategies that actively contribute to economic development and support the diversification agenda of the federal government.

“We expect the retention of the current 12 per cent and 75 per cent MPR and CRR on public sector deposits, however a mild increase in the CRR on private sector deposits may be considered.

“On the forex side, the MPC may opt for a subtle extension of the mid-point at the official forex window to ease the pressure of fiscal buffers,” they predicted.

In the same vein, the Financial Derivatives Company Limited noted in a report that although “the federal government has taken the first step in the right direction,” with the recent measures it announced, “a blend of fiscal, structural and monetary policy adjustments are required to effectively mitigate the dire effects on the Nigerian macro-economy.”

THISDAY

The Nigerian Stock Exchange (NSE) on Tuesday said it had delisted four companies from its daily official list for non-compliance to post-listing requirements.

This is contained in a statement by the company made available to the News of News Agency of Nigeria (NAN) in Lagos.

The affected companies are Pinnacle Point Group Plc, Afroil Plc, Starcomms and Big Treat.

The stock exchange said the affected companies failed to take any appropriate step to regularise their listing status.

“On Monday, June 23, 2014, the NSE published a notice of its intention to delist 24 listed companies arising from their non-compliance with provisions of the Listing Rules,” said the statement.

It said the notice provided a three-month window for each of the affected listed companies to regularise its listing status with the exchange.

According to the statement, one of the affected companies has fully regularised its listing status, while 19 companies have taken some steps to regularise their listing status.

The statement added that the exchange would continue to engage these 19 companies to ensure compliance with their post listing obligations.

NAN reports that investors would lose about N40.47 billion with the delisting of the affected companies.

NAN also reports that market capitalisation of Pinnacle Point Group stood at N33.34 billion, Afroil N2.59 billion, Starcomms N3.54 billion, while Big Treat market capitalisation amounted to N1 billion. (NAN)

Gov. Isa Yuguda of Bauchi state

Gov. Isa Yuguda of Bauch State on Tuesday presented N127.89 billion as the 2015 budget to the state house of assembly.

The News Agency of Nigeria (NAN) reports that the 2014 budget for the state was N133.7 billion.

Presenting the budget, Yuguda said that the huge percentage of the budget would be for the payment of salaries, wages, pension and gratuity.

He said that the budget would give priority to health, agriculture, water resources, poverty eradication, women and youth empowerments as well as ongoing projects.

According to him, the recurrent expenditure is N62.80 billion while the capital expenditure is N65.08 billion.

Yuguda said the Bauchi State International Airport was executed with the 2014 budget while the 300 capacity state specialist hospital would soon be completed.

Other projects executed with the 2014 budget include 60 beds capacity hospital in Bununu and newly constructed primary health centers across the state and projects in other sectors.

The governor said the state was the least borrowing state.

Yuguda called on residents of the state to maintain peaceful co-existence among themselves.

Responding, the Speaker of the assembly, Alhaji Yahaya Miya, charged the Yuguda administration to ensure the payment of all outstanding debts in 2015.

Miya said that the assembly had in the last seven years passed 78 bills, adding that about 40 bills were sponsored members of the house.

He urged politicians to eschew politics of bitterness and violence toward ensuring peaceful conduction of the 2015 general elections. (NAN)

The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has urged the Asset Management Corporation of Nigeria (AMCON) to ensure protection of workers’ rights in the ongoing sale of banks.

The National Secretary of the union, Malam Muhammed Sheikh, made the plea on Tuesday in Lagos during an interview with the News Agency of Nigeria (NAN).

NAN reports that AMCON has concluded plans to sell off the assets of Mainstream, Enterprise, Heritage, and Keystone banks.

Sheikh said that the preservation of workers employment and their rights should be a priority to the corporation to avoid labour unrest.

“While the union is not disputing the corporation’s right and responsibility to execute its mandate in relation to the bridge banks, we expected that certain issues be handled carefully.

“As a responsible union, we expect AMCON to take cognisance of not only the rights of workers in all circumstances but to also ensure those rights are protected accordingly.

“It is pertinent to ensure a seamless transition and integration of the operations and workers in these banks. So, both the union and AMCON need to work together to address all conflict areas.

“Consequential matter relating to workers’ rights, especially the envisaged job losses, transfer of years of service, continued recognition of their rights to unionise, condition of service should be addressed,’’ he said.

Sheikh said that labour laws should be respected in the transactions to save all avoidable labour unrests.

“A sustainable banking industry approach recongnises and respects human and labour rights in a bank’s business operations and business activities.

“Key policies and requirements should include recognition of employee’s entitlement to safe and fair labour conditions and to exercise collective and individual rights to associate and speak freely as allowed by national laws.

“It is our expectation that AMCON and prospective buyers of these banks should have taken cognisance of the provision of the law under the collective agreement and includes union in the sales process.

“We urge the corporation to do the needful by engaging the union within the shortest possible time to ensure a post sale seamless transition and integration.

“It is our belief that any form of industrial unrest, especially at this trying period in our country should be avoided,’’ he said.

Sheikh said the union was always available for discussion with all concerned parties in the transactions. (NAN)

CBN Governor, Mr Godwin Emefiele

The Central Bank of Nigeria  (CBN) on Tuesday in Abuja announced  devaluation of naira by N13 as part of measures the bank said were aimed at strengthening the nation’s economy.

The CBN Governor, Mr Godwin Emefiele, disclosed the devaluation to newsmen after a meeting of the Monetary Policy Committee.

Emefiele explained that under the new arrangement, the naira would now exchange for N168 instead of the old official rate of N155 to one U.S. dollar.

He said the meeting also decided to increase the Monetary Policy Rate (MPR) by 100 basis point from 12 per cent to 13 per cent.

The MPR is the rate at which banks borrow from the Central Bank to cover their immediate cash shortfalls.

The higher the cost of such borrowing, the higher the rate at which banks advance credit to customers.

Emefiele noted that there was an increase in Cash Reserve Ratio (CRR) on private sector deposits by 500 basis point from 15 per cent to 20 per cent.

The CRR is a monetary tool used to either call up excess liquidity or release funds needed for the growth of the economy as situation demands.

He further said that the public sector CRR will be retained at the current level of 75 per cent and the symmetric corridor of plus or minus 200 basis points around the MPR will be maintained.

“The public sector should be retained at 75 per cent and foreign exchange trading position should also be retained at 1 per cent,’’ Emefiele said.

The CBN governor said the decision to lower the value of naira against the dollar was to strengthen the currency. (NAN)

The Nigerian Ports Authority (NPA) on Tuesday said it would enhance port service delivery by using the railway in cargo movement across Nigeria.

The Manager, Lagos Port Complex, Apapa, Malam Nasir Mohammed, told  the News Agency of Nigeria (NAN) in Lagos that  use of water, road and railway transportation was imperative for efficient cargo movement.

“The success of any port, especially our Nigerian ports, must be dependent on three angles; the water angle and the road angle, of course the road angle divided on the trucks and the railway.

“For Lagos port, we are trying to harness all the three. We already have an existing road angle through which we move cargoes including containers and other general cargo that leaves Lagos ports.

Mohammed said that an existing rail track in the Lagos port complex, terminated directly in Kaduna and Kano and enabled the inland container depot in Kano to move some boxes.

He, however, said with increased number of wagons the weekly movement to Kano would be more frequent.

“We are also beginning to look towards using the waterways to move cargo.

“We want to start engaging some stakeholders in discussions in such a way to see the possibility of using our extensive waterways to move cargo, not just within Lagos itself,   but maybe out of Lagos.

“It is something that can be used, because it’s being used in some other parts of the world much more seriously in such a way that you don’t even see boxes; you don’t even see containers on the roads.”

(NAN)