NLC president, Comrade Abduwaheed Omar

The Nigeria Labour Congress (NLC) yesterday said it will ask the Academic Staff Union of Universities (ASUU) to resume negotiation with the Federal Government for the resolution of their differences.

NLC President, comrade Abdulwahed Omar, spoke after the union’s National Executive Council (NEC) meeting in Abuja.

He said there were reports that the union had issued a statement to withdraw from the negotiations with the Federal Government.

Omar said: “Congress resolved at the meeting that we are also going to make consultations to ensure that the negotiations resume immediately. We want to ensure that they are resumed to resolve the issues, not to resume and continue to dangle around without making any headway. We are also going to study the situation and make some proposals.

“But we, at the meeting, also did deliberate on one or two other issues, particularly on the issue of strike by the Academic Staff Union of Universities (ASUU).

“We are all aware that ASUU has issued a statement saying it will withdraw from the negotiation with the Federal Government following the government’s failure to make a headway in the negotiation.

“According to the paper I read, it was also due to the lack of seriousness on the part of government concerning the negotiation. I think it is a very serious situation we are facing today, that we allow the lecturers to remain on strike for upward of two months without resolving the issues. I think it is a very serious issue.”

Interior Minister Abba Moro yesterday urged ASUU to reduce its demands. .

He said university students should also advise their teachers to review downwards their demands and yield to government’s position.

The minister spoke in Abuja when he received officials of the National Union of Benue State Student (NUBSS).

He said: “I assure you that the ongoing strike is one that the Federal Government is tackling headlong. In spite of the problems that have hindered further discussions, the government will continue to explore all avenues that are aimed at resolving the crisis in our universities, especially now that the government has given money to tackling all the problems in our universities for infrastructure.

“Since you are children, I expect that some of your teachers are also parents. The government is making efforts to let ASUU see things from the position of the government, expect that you too have a role to play as students.

“You must be in the position to advise and sometimes plead with teachers to take into consideration the future of the youth as leaders of tomorrow and mellow down on some of their demands…”

House of Representatives member Farouk Lawan has urged the Academic Staff Union of Universities (ASUU) to explore other means to resolve its differences with the Federal Government other than the ongoing strike.

The lawmaker said incessant strikes are detrimental to the country’s educational system and standard.

Lawan spoke yesterday in Abuja on the lingering ASUU action, which he said has dire consequences on the nation’s education sector.
- The Nation

Acting DG, PenCom, Chinelo Anohu-Amazu

The National Pension Commission has transferred a total of N7bn pension contributions of workers under the defunct Nigerian Social Insurance Trust Fund to the Retirement Savings Accounts of the contributors in line with the requirements of the Contributory Pension Scheme.

According to figures made available to our correspondent on Thursday, the N7bn has been transferred into 92,655 RSAs.

PenCom said it recently received 3,752 applications from Trustfund for the transfer of N242.44m to the respective RSAs of the contributors.

The commission said it had earlier reviewed and approved the transfer of N241.62m to the RSAs of 3,743 applicants.

“This brought the total amount and contributors for whom NSITF contributions were remitted to their RSAs to N7bn and 92,655, respectively,” it noted

PenCom said the remaining applications were rejected due to incomplete documentation, zero balance or duplicated applications.

It said that in order to fast-track the transfer of the NSITF contributions into the RSAs of the contributors, PenCom, in conjunction with Trustfund, initiated the matching of the RSAs records with that in the NSITF database.

The commission said in furtherance of the matching of the records, the guidelines on the transfer of NSITF contributions were further amended to accommodate this new activity.

Under the old pension scheme, the National Provident Fund was established by an Act of Parliament in 1961 to regulate private sector pension schemes in the country. It ensured monthly contributions from the basic salaries of workers and their employers’ contributions.

The NPF was later converted to a limited social insurance scheme and administered by the NSITF from 1993.

However, through the Pension Act of 1979 and the activities of the NSITF, pensioners were subjected to difficulties as a result of the non-payment of their pensions.

This scheme was not funded, which led to mounting pension liabilities, and made it to become unsustainable.

The development led to the repeal of the 1979 Act and subsequent amendment of the NSITF Act of 1993.

The Pension Reform Act 2004 was promulgated and it established a contributory scheme for the payment of retirement benefits of employees in the public service of the federation, the Federal Capital Territory and the private sector.

The President, Pension Fund Operators of Nigeria, Mr. Dave Uduanu, said that the CPS had been recording some achievements.

He said that the PRA 2004 was also being reviewed.

According to him, the PFAs are jointly working to ensure that they improve the pension industry for the benefit of the pensioners.

He said the operators were looking at having a shared services platform for the industry in order to reduce areas of duplication.
- The Punch

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke

The Department of Petroleum Resources has said that 76 out of the 77 oil blocks awarded between 2005 and 2007 are largely dormant.

The Director, DPR, Mr. George Osahon, said at a forum on the 2005-2007 licensing round in Lagos on Thursday that the Federal Government awarded a total of 77 oil blocks through three bid rounds in 2005, 2006 and 2007.

He, however, expressed worry that only one of the blocks was currently producing, while less than 30 per cent of the remaining 76 were actively working.

Osahon lamented the fact that majority of the operators were using the delay in the passage of the Petroleum Industry Bill as an excuse not to develop their fields, arguing that this was improper and a ploy to blame the government for their challenges.

He said, “In the last three to four years, nothing has been happening in Nigeria’s exploratory sector, while in the marginal fields sector, only eight fields are currently producing out of the 24 fields awarded to 31 successful companies.

 “Only one block is currently producing, while less than 30 per cent of the blocks are actively working; several Production Sharing Contracts have yet to be signed, bank guarantees yet to be put in place, work obligations not respected and downstream obligations not performed.”

According to the breakdown of the 2005-2007 licensing rounds, 14 of the 44 oil blocks awarded in 2005 are onshore, eight deep offshore and 11 located in the continental shelf, while the remaining 11 are located in the Chad Basin, Benue Basin and Anambra Basin.

Indigenous exploration and production companies got 65 per cent of the oil blocks awarded in 2005, leaving the remaining for foreign firms.

The DPR director further explained that 16 oil blocks were awarded in 2006 with indigenous operators taking 40 per cent.

Eight of the blocks are deep offshore blocks, three onshore, two in the Chad Basin, while the remaining three are located in the continental shelf.

Osahon explained further that another 17 oil blocks were allocated in 2007, nine of which are located onshore, one deep offshore and the remaining eight located in the continental shelf.

Indigenous operators got 85 per cent of all the oil blocks allocated in 2007, leaving the remaining 15 per cent to foreign operators.

Despite that, Osahon expressed regrets that only one of the fields had hit production.

He said that the Federal Government was concerned about the inability of the operators to meet industry targets for reserves and production capacity; limited activities in the oil and gas industry; and the implications for the industry’s vitality and social challenges.

Minister of Education, Prof. Ruqayyatu Rufa’i

Minister of Education, Prof. Ruqayyatu Rufa’I, said on Thursday in Abuja that French language would be part of the Unified Tertiary Matriculation Examination as from 2014 for interested candidates, the News Agency of Nigeria reports.

Rufai said this at  a reception held in honour of the French Language Project Manager, Mr. Jean-Phillipe Roy.

She said that being multi-lingual in the 21st Century was essential as it helps individuals to operate more effectively in the international community.

“For Nigeria, the study of French language is quite key, considering the fact that our neighbouring countries are French-speaking. Apart from the English language, French language is one of the major international languages,” she said.

She said Roy came to Nigeria in 2009 under the second Bilateral Agreement between Nigeria and French.

The minister noted that the French had worked hard to ensure that various components of the project received due attention.

Rufa’i lauded his contributions to the reform of the UTME for 2014 in addition to the scholarships awarded to 16 teachers of French language to study in France for one month.

She said the project manager’s contributions included supply of books to schools, award of Master’s degree in French as a foreign language and supply of DVD and CD player to the project office.

The minister lauded the support of the French Government to the Nigerian French Language Village, Badagry, Lagos; and the Regional Network of French Language centres in Africa.

She also commended the Association of French Language Teachers, and noted  the proposed handing over of the project vehicle to the ministry for the monitoring of the teaching and learning of the language.

“Nigeria and France have come a long way in their relationship. It is a relationship built on mutual respect, cooperation and interest. I wish to assure you that the ministry will continue to be committed to the teaching and learning of French Language in Nigeria and sustenance of the cordial relationship,’’ she said.

Roy praised the collaboration between the Federal Government and the French Government.

“Since I have been here, you have shown a lot of interest in what we have been trying to do in terms of decision-making in critical issues and, with your help, we have been able to keep the project on the right track,” he said.
- NAN

Mr. Tony Elumelu, Chairman, Heirs Holdings

Heirs Holdings has acquired significant stake in Seadrill Mobil Units (Nigeria) Limited, a West African affiliate of New York listed global offshore drilling company, Seadrill.

As a result, the Chairman of Heirs Holdings, Mr. Tony Elumelu, according to a statement on Thursday, has been appointed as chairman of the board of Seadrill Mobil Units.

The statement added that the investment was a further evidence of Elumelu’s strategy of increasing African business participation across the oil and gas value chain, and complement existing interests in oil and gas production and exploration.

Seadrill, the world’s leading offshore driller, is listed on both the New York and Oslo stock exchanges, and operates the second largest ultra-deepwater fleet and largest premium jackup fleet in the industry with 7,500 employees in 15 countries.

Commenting on the investment, Elumelu was quoted to have said, “Seadrill is a significant player in the oil and gas space, with a strong track record and one of the most respected names in the industry. The partnership makes strong commercial sense, bringing together a major global player and a leading African participant in the oil and gas industry.

“Successful development of Nigeria’s deep water oil and gas fields is of strategic importance to our country. This is an important part of our own approach of creating synergistic added value investment across the energy sector, from extraction to processing, and perhaps most importantly for Nigeria, industrial production and power generation.”

Minister of Agriculture, Dr. Akinwumi Adesina

The United Nations Industrial Development Organisation on Thursday called for a more pragmatic approach that would help to stimulate the growth of agribusiness in Nigeria.

The UNIDO Regional Director and Representative in Nigeria, Dr. Patrick Kormawa, made the call in Abuja while speaking at a two-day workshop on the development of policy guidelines to engage women and the youth in agribusiness.

He said the approach should be anchored on youth and women entrepreneurship as this would help to promote modern form of agriculture.

This, he noted, would help to resolve the economic, social, cultural and security challenges currently facing the country.

Kormawa said, “Over the past 10 years, the number of youths aged 15 to 24 in Africa has increased from 133 million to 172 million. It is projected that by 2020, that figure is expected to rise to 246 million. This youth bulge could significantly tilt the current social dynamics positively or in a negative direction as shown in the recent North Africa uprisings.

“It is now widely recognised that inclusive growth and development, job creation, significant reduction in unemployment and poverty must be addressed simultaneously to achieve the sustainable growth and development we all want.

“Investing in agribusiness has been singled out as one way to achieve prosperity in Africa. However, stimulating growth of agribusiness is anchored on youth and women entrepreneurship.”

He added that effective participation of the youth and women as entrepreneurs in the agric sector was essential for job creation, poverty alleviation, gender equality and economic empowerment.

Kormawa said, “There are several programmes and projects working to support youths and women in agribusiness. Our experience from several African countries shows that despite the huge investments to this effect, the number of youths taking up agribusiness as profession is not commensurate with the investment.

“In other words, the number of sustainable and decent jobs created in agriculture has not been encouraging, particularly for the educated youth. For this to happen, agriculture needs to be profitable and must provide dignity for women and youths.”

The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, said the workshop was particularly relevant in view of the high unemployment rate in sub-Saharan Africa.

The minister said having recognised the recent youth restiveness, security challenges and the abject poverty facing women, the government had decided to revitalise its employment generation strategies to solve the problem of youth unemployment and gender equality.

He said, “With the high involvement of women in agriculture, developing the sector and improving access to productive resources for women is the surest way to achieve food and nutrition as well as other Millennium Development Goals.

“Therefore, we must have the political will to channel the required resources to youth development in order to set Africa on the path of sustainable development.”

CBN Governor, Sanusi Lamido Sanusi

              Access Bank had its 2013 half year investor presentation.
The Central Bank of Nigeria’s policy on the increment of Cash Reserve Ratio (CRR) on public funds deposited in banks is taking its toll on the banks.
Access Bank, one of Nigeria’s banks, licensed by the Central Bank of Nigeria as an International Bank, highlighted the impact of this policy in its 2013 half year investor presentation released last week.
According to the bank, the CRR on public sector of 50 per cent (from 12 per cent) in the third quarter of 2013 is having a “negative impact on the Nigerian banking industry earnings” adding that there is an “increased pressure on the cost of funds for banks”, given the reduced dependence on banks on public sector deposits.
The bank said that compliance with this policy would impact on its earnings an estimate of N3 billion in 2013.
The bank also highlighted other pressure points on banks’ earnings which include the Central Bank’s revised guide on bank charges. These include the COT which was reduced from N5 to N3/million in 2013, and to be completely phased out by 2016, the interest on savings which was increased to 30 per cent of MPR: and 3.6 per cent paid on savings from about 1 per cent.
The bank said these policies are having “Increased pressure on non-interest income for Nigerian banks and that the estimated impact of these on Access Bank’s earnings is about N6bn in 2013.”
Another issue it lamented was the increase in AMCON Charge. There was an increase in banks’ AMCON levy from 0.3 per cent in 2012 to 0.5 per cent of total assets in second half of 2013. The bank said this move would only end up increasing banks’ cost base. It said the impact on Access Bank’s Opex was estimated at N7.2 billion in 2013.
Highlights of 2013 half year result
The bank’s Net interest Income (NII) declined by 29 per cent to N39 billion year-on-year but up 29 per cent to 22 billion from 17 billion quarter-on-quarter. Net Interest Margin (NIM) improved by 60 basis points (bpts) from the depressed first quarter 2013 level to 6.8 per cent in second quarter (QoQ), Non-Interest Income was up N5.3 billion or 20.9 per cent YoY to N30.7 billion and down N6.9 billion or 36.7 per cent QoQ to N11.9 billion, Operating expenses up N5.4 billion or 11.2 per cent YoY to N53.8 billion and N4.4 billion or 17.8 per cent QoQ to N29.1 billion, while the contribution of Non-Interest income to gross earnings increased to 30 per cent in first half 2013 from 23 per cent.
Profit Before Tax (PBT) declined by 13 per cent to N26 billion in half year 2013 but increased by 36 per cent to N15 billion QoQ. Funding cost increased by 16 per cent in half year due to high interest rate environment, loan growth of 11 per cent from N623 billion in Q1 to N691 billion in Q2, 14 per cent reduction in interest income from earning asset resulting from sale of AMCON bonds in second half year 2013 and non-interest income declined by 36 per cent QoQ as a result of significant non-recurring dividend income from Q1.
Key drivers of the half year results, according to the bank, include growth in interest expense due to high cost of funding due to high interest rate environment. The growth was driven by increased transaction volume, strong dividend income and good trading performance; significant decline in premium income from WAPIC (Insurance) (seasonality), increase in AMCON surcharge and other non-recurring expenses such as additional NDIC premium, (N568 million) claim expenses by WAPIC (N1.3 billion), depreciation adjustment (N768 million), professional fees and branding cost (N560 million) and card charges (N600 million) among other parameters.
Covering up anticipated earnings shortfall

With these anticipated shortfalls in banks’ earnings due to varying regulatory policies, Access Bank highlighted set targets for second half 2013, as well as paths to which it can improve it services to its customers and attract new ones, while hoping to generate more earnings doing so.
The bank said Personal Banking is one of the focus of its growth priorities and it intends to upgrade telemarketing centres to improve customer contact (up 90 per cent) from once in 2 months to once every month, improve cross selling, increase product penetration, increase alternative channels such as online banking, verve banking centre and mobile banking to drive transaction activities, generate fee income and focus on growing low cost deposits whilst increasing customer base.
On growth projection, it intends to reactivate 500, 000 dormant accounts, increase active internet banking users from 100, 000 to 500, 000; 40,000 walk in customers monthly, Grow Salary Account by additional 250, 000. Also, it hopes to achieve a loan growth of N10 billion by 2013 financial year end (Personal loans: 2 billion, Credit Cards: 2.5 billion, Vehicle finance: 3.5 billion, Mortgages: 2 billion) and an income uplift of N1billion among a series of other strategies.
Despite these odds, the Central Bank’s policy is here to stay, at least, in the short time.
Ayodeji Ebo, a Research Analyst at Afrinvest, an investment bank, said there was pressure in the market following the policy announcement, as banks scrambled for funds to meet the new Central Bank’s requirement. The Cash Reserve Requirement (CRR) on public funds was raised to 50 per cent, thereby necessitating a sell down on investments where these funds have been invested.
He said the Central Bank is worried about banks’ practice of sourcing public sector deposits at fairly cheap rates and lending the same to government via its fixed income securities, at higher rates. So basically, they collect money from the government and borrow the government via treasury bills and so on. According to him, the banks will have to call back their funds from the sources they have invested in and source for more deposits; at perhaps, higher rate, to comply with the policy.
Government’s deposit with the Central Bank is currently estimated at N2.6 trillion with federal government constituting 50 per cent (N1.3 trillion) and State and local governments approximately 20 per cent of N1.3 trillion.
Mr. Ebo said bank’s lending rates may rise due to the development, but they may still remain in the 20’s, as lending rates have proven over time, to be inelastic to changes in market dynamics.
“It is a further contractionary measure by the Central Bank. The impact of this policy will quarantined an additional 38 per cent of bank’s deposit from the public sector, as they already have 12 per cent as reserve across all their deposits. Hence, the banks will need to sell down and raise 38 per cent of their deposit (from the Public sector),” he said.

CBN Governor, Sanusi Lamido Sanusi

 Only a few banks have adhered to CBN’s directive.
Nigerian banks have not shown much eagerness to speed up the requirements of the Central Bank of Nigeria on cheque truncation, one of the fundamentals for a successful cashless policy which includes signing on cheque truncating applications.
The current cheque truncation regime is planned to reduce the cheque clearing cycle from T+2 to T+1. Cheque truncation is one of the instruments necessary for the actualisation of the cashless regime and it is just being implemented in Nigeria, in accordance with the Central Bank’s policy.
Recently, Nigeria InterBank Settlement Systems (NIBSS) and Nigeria’s leading financial services software provider, Precise Financial Systems, PFS, collaborated with the Central Bank to achieve the cheque truncation exercise across the 37 branches of the Central Bank in states capital in Nigeria including the Federal Capital Territory, Abuja.
According to the firm, as of today, only a few of the banks including Sterling Bank, FCMB, Access Bank and Mainstreet Bank have demonstrated this readiness when they recently signed on iTeller, an indigenous cheque truncation application.
The iTeller application is a suite of integrated solutions that comprises Automated Teller Machine (ATM) based self-service cheque lodgement, cash lodgement/withdrawal and cashier’s desktop transport cheque scanning system for a state-of-the-art and an end-to-end branch level cheque truncation capability as well as a slip-free banking experience.
The iTeller application is presently a T+0 ready system with an ultra violet cheque scanning ready solution.
In a statement signed by Yele Okeremi, Managing Director, PFS, the company running the iTeller application, the platform provides an optimal mix of both hardware and software for capturing, through in-built scanner and processing of cheques presented by customers for lodgement while the design concept ensures a proper handshaking with the bank’s core banking application.
“The cheque truncation is already on. The latest and most remarkable achievement is the signing on of iTeller by the Central Bank, the regulatory agency behind the cheque truncation policy. Coming on the heels of that is the signing on of Sterling Bank, FCMB, Access Bank and Mainstreet Bank”, he said, adding that iTeller runs a simple model for cheque truncation processes and challenges the status quo.
According to him, with iTeller, banks now have access to the full compliments of its functionality, which include auto email alerts for back-office processing of remote cheque lodgement at ATM by customers.
“iTeller’s cheque truncation design makes it very flexible for any of these banks to decide whether to truncate its cheques at the branch level or cluster level. Any of the truncation models comes ready with a central processing centre that enables a bank to perform its central clearing cheque processing functions for both outwards and inward cheques”, he said.
He added that the application would give the banks the cutting edge in the industry, as they now have what it is required to implement cheque truncation as prescribed by the Central Bank, which is to reduce the cheque clearing cycle from T+2 to T+1.
According to him, the application was built to accommodate current industry practices while incorporating other foresights into future trends that would soon unfold in the industry.
iTeller has been in development for the past eight years, according to the firm.
Some of its features include branch-level cheque clearing, auto-generation of receipts at terminal point, auto-generation of capture file, accounting entries generation and posting, auto-generation of caution notices. Others are cheque images repository that would enable the banks to service their customers with respective cheque albums. the application provides an optimal mix of both hardware and software for capturing, through in-built scanner and processing of cheques presented by customers for lodgement.  The design concept ensures a proper handshaking with the bank’s core banking application.
The application offers flexibility in features and ease of usage, effectively meeting the banks’ requirement for customer service delivery, core banking double-entry postings, cheque-clearing processing and management information provisions.
The management of the firm said the company commenced the designing of the application at that time because it had foreseen that the prevailing situation today would in the medium term, become a reality.
With the dateline of June 2013 for all banks to become truncation compliant and ready, most of the banks are still in the process of selecting their service providers, according to industry watchers.
According to them, it is expedient for the banks to acquire good platforms and applications to enable hitch free cheque truncation processes.
- Premiumtimes

Diezani Allison-Madueke, Nigeria’s Minister of Petroleum.

The Gulf of Guinea accounts for 27 percent of oil supply to Europe.
The Nigeria government on Wednesday lamented the rising insecurity in the Gulf of Guinea as a result of the activities of kidnappers, pirates and crude oil thieves.
The Minister of Petroleum Resources, Diezani Alison-Madueke, who was speaking at the First Nigerian Navy Offshore Patrol Vessel Africa Conference (OPV) in Lagos, said the development has resulted in many cases of hijacking, unauthorized vessel boarding and kidnapping in the region.
The Gulf of Guinea, which consists of 15 countries with oil production in excess of 5.4 million barrels per day in 2012, accounts for an equivalent of about 27 per cent of oil supply to the European Union and 29 per cent of total petroleum consumption in the United States in 2011.
Mrs. Alison-Madueke, who described the situation as unacceptable, said crude oil theft and illegal oil bunkering in the Gulf has become a major source of concern to the Federal Government, with U.S. Naval Intelligence Report indicating about nine hijacking incidents, 55 unauthorized vessel boarding, several kidnappings and vessels fired upon in the first half of this year.
The Minister, who was represented at the occasion by the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Andrew Yakubu, underlined the significance of maritime security to the region, saying that it was necessary to maintain the flow of revenue from oil and gas.
She said that the current high insecurity had negatively impacted the region’s broader economic development, adding that maritime resources such as fish, aquaculture and the ecosystem which directly contribute to the livelihood of many Africans had been affected.
With Nigeria and Angola accounting for 47 and 34 per cent of the total oil supply production in the Gulf respectively, the Minister said it was extremely important that countries in the region and their allies collaborate to police the sea lanes, noting that disruptions in crude oil supplies not only affected countries such as Nigeria but ultimately negatively impacted the global economy.
Mrs. Alison-Madueke called for increased domestic efforts in addressing the menace, pointing out that addressing illegal crude oil bunkering was a multi-dimensional challenge that required a multilateral approach to succeed.
Mrs. Alison-Madueke noted that resurrecting the Gulf’s security protocol as well as collaboration between Nigeria and other countries in the region would go a long way to help address the maritime security issues.
The conference, which had as its theme: Delivering Maritime Security to Africa, was attended by Navy formations from countries in the Gulf with presentations from local and international resource persons.
- Premiumtimes

President, MAN, Chief Kola Jamodu

Nigerian manufacturers have disagreed with the trade terms of the European Union, describing them as capable of hindering the nation’s industrial growth.

The new trade agreements, Common External Tariff (CET), Community Levy and the Economic Partnership Agreement (EPA), which are still being negotiated, are designed to become operational in respect of business relationship between EU and Economic Community of West African States (ECOWAS) countries.

MAN explained that the CET could compromise the needed protectionist profile required to safeguard the interest of the nation’s industrialists.

The association’s Director-General, Rasheed Adegbenro, expressed the hope that a consensus that would favour Nigerian industries would become feasible in the new CET regime.

The CET is a precursor to a regional customs union, which is predicated on the harmonisation and convergence of national fiscal, monetary and trade policies of member states for the attainment of economic integration by the 15-nation economic community with a combined population of more than 300 million people.

At the March meeting in Praia, Cape Verde, regional ministers of finance had endorsed a new five-band tariff regime for West Africa, after 10 years of internal negotiations, driven by the technical committee of the Commissions of the ECOWAS and the eight member West African Economic and Monetary Union (UEMOA), following the 2006 decision by the ECOWAS Heads of State and Government.

The new tariff regime covers 5899-tariff lines with the rate ranging between zero and 35 per cent for the 130 tariff lines that fall into the category of specific goods that contribute to the promotion of the region’s economic development.

Under the new regime, five per cent duty is applicable for 2146 tariff lines under the basic raw materials and capital goods category 10 per cent for the 1373 tariff lines that qualify as intermediate products category; while 20 per cent duty is reserved for the 2165 tariff lines under final consumer products.
- Vanguard

Lagos State Governor, Babatunde Raji Fashola

Lagos is the fourth worst city in the world, Economist Intelligence Unit, EIU, an independent forecasting and advisory business within the Economist Group has said.

And its top worst cities, are scattered around Africa and Asia. Lagos, the fourth on the list, shares its 137 position with Port Moresby, in Papua New Guinea on 38.9 per cent.

The report made available yesterday described it as the second-fastest growing city in Africa and the fourth worst city on earth.

“Rapid growth is not always a good thing because Lagos is now a magnet for two perpetual threats to peace: pirates and Islamist warriors.

Boko Haram have a problem with cities like Lagos and also lots of weaponry. Pirates threaten trade and use kidnapping as a method of funding. Islamist terrorist groups such as Boko Haram (“Education is forbidden”) want to create their own version of heaven on earth by destroying cities such as Lagos and imposing strict sharia law. Lagos has enormous potential but as yet little to show for it – hence its poor ranking,” the report said.

EIU in its 2013 annual survey of the world’s 140 major metropolises, said Lagos has a long way to go politically, socially and economically before it joins the emerging market club.
- Vanguard

Chief Aliko Dangote

The Dangote Group has said it will sign $5.55bn loan deals with financiers on September 4 for the building of a $9bn refinery and petrochemical complex to be located at the Olokola Free Trade Zone, Ondo State.

The group told Reuters on Tuesday it would borrow $3.3bn for the 400,000 barrels a day refinery expected to double the country’s refining capacity by late 2016.

The conglomerate, with business interests in cement, food processing and oil and gas, also said it was seeking another $2.25bn from development funds for the refinery.

When put together, about $5.55bn will be sourced externally from financiers and the group said the loan deals would be signed with the financiers on September 4.

The Chairman, Dangote Group, Alhaji Aliko Dangote, who recently emerged as Africa’s richest man, said he would put $3.5bn down as his own equity.

Dangote had in April said he would put down $4bn of his personal fortune to build the refinery, while international financial institutions would raise the balance.

The Dangote Group spokesman, Mr. Anthony Chiejina, who spoke with Reuters, said, “We are not resting on our oars. The complex, including petrochemical and fertiliser plants, could be the single largest contribution to this government’s economic transformation agenda.”

The 400,000-barrel capacity, experts have said, would almost double Nigeria’s current refining strength.

“This will really help not only Nigeria but sub-Saharan Africa. There has not been a new refinery for a long time in sub-Saharan Africa,” Dangote had told Reuters in a telephone interview.

Nigeria currently has the capacity to produce some 445,000 barrels per day from four refineries, which operate well below that owing to decades of mismanagement and corruption.

The country relies on subsidised imports for 80 per cent of its fuel needs.

Dangote said the country’s ability to import fuel would soon be challenged.

“In five years, when our population is over 200 million, we won’t have the infrastructure to receive the amount of fuel we use. It has to be done,” he said.

Past efforts to build refineries have often been delayed or cancelled, but analysts have said Dangote should be able to build a profitable Nigerian refinery, owing to his past successes in industry and his strong government connections.

Analysts have said previous attempts to get the refineries going were held back by vested interests such as fuel importers profiting from the status quo.

“The people who were supposed to invest in refineries, who understand the market, are benefiting from there being no refineries because of the fuel import business. Some are going to try to interfere,” Dangote said.

He said making a new refinery run at a profit would work even if the government failed to scrap the subsidised fuel price that has deterred others from investing.
- The  Punch

Minister of Power, Prof. Chinedu Nebo

The Federal Government on Tuesday signed a N78bn ($500m) Memorandum of Understanding with the Xian Electric Engineering Company Limited of China for the execution of transmission projects in the power sector.

The N78bn, a loan obtained from the China Exim Bank, will be used for the construction of power transmission infrastructure across the country.

The Minister of Power, Prof. Chinedu Nebo, said the loan was negotiated by the Minister of Finance, Dr. Ngozi Okonjo-Iweala when President Goodluck Jonathan visited China recently.

He said, “The Chinese Exim Bank is going to give us a concessionary loan in this regard and we are going to get the best possible interest. The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had negotiated it and brought it up to the Chinese Exim Bank during the presidential state visit to China.

“So, we are very comfortable with having this concessionary loan and having very little interest to pay for it.”

Nebo said the contribution of Xian Electric was to liaise and collaborate with the stakeholder agencies of the Federal Government for the conduct of necessary studies required for the successful execution of the project, and to execute the projects according to agreed specifications and timelines.

Others are to provide detailed technical design specification and reference manual for future use in the operation and maintenance of transmission networks and to provide adequate training for the Nigerian workforce and support the local content policy.

The contribution of the Federal Ministry of Power, according to the terms of the agreement, is to facilitate the acquisition of relevant data and reports, and assist in the identification and acquisition of suitable parcels of land and secure the right of way for the execution of the projects.

The ministry is also to provide Xian Electric with the technical details of the Transmission Company of Nigeria’s projects list that will be considered for implementation and to facilitate the execution of needed commercial agreements as may be required for the bankability of the projects.

With regard to the role of Manitoba Hydro International, the consultant managing the TCN, Nebo said, “MHI is the management consultant for the TCN. They are the ones that are designing and delineating the project. So, the entire details of what this money will do will be provided for the group by Manitoba.

“Manitoba is well aware of this and the details are essentially ready, and they will be attached to the MoU. So, we expect that very shortly, all these arrangements will take off.”

The minister said the MoU would last for a two-year period, stressing that many of the TCN projects would have been completed before the end of the process.

In his remarks, the General Manager, Xian Electric, Mr. Ji Junhua, said both parties had earlier exchanged ideas on the transmission upgrading project.

“Signing this MoU symbolises that we have furthered our relationship and we will continuously try our best to smoothen the whole process,” he said.

Junhua reiterated the group’s commitment to establishing multiple after sales and training centres in Nigeria.
- The Punch

Former Minister of Industry and National President, Manufacturers Association of Nigeria (MAN), Dr Kola Jamodu,

Former Minister of Industry and National President, Manufacturers Association of Nigeria (MAN), Dr Kola Jamodu, has urged federal and state governments to urgently remove the bottleneck of multiple taxation and provide infrastructure that will support manufacturing industries with a view to returning the country to full industrialisation., has urged federal and state governments to urgently remove the bottleneck of multiple taxation and provide infrastructure that will support manufacturing industries with a view to returning the country to full industrialisation.

Jamodu said this in Ilorin during a familiarisation visit of the national executive members  of the association to industries in Kwara State, which include KAM Industries, United Foam, RAJRAB Pharmaceutical company and Forgo Battery industries, among others. The MAN boss noted that it is only through industrialisation that the unemployment problems in the country can be solved.

His words, “if we mean very well for  this  country on the need to generate employment, such can only be done if  manufacturing industries are assisted and revived through infrastructural development.” He said  available records have shown that 23 out of every 100 Nigerian are unemployed, stressing that the trend should be urgently redressed. He also explained that the number of unemployed is largely made up of  people between the age of 20 to 27, adding that this is the reason why government at all levels need to join hands  with manufacturers to solve unemployment problem in the country.

Jamodu further said that the agricultural produce in the country should not be exported without adding value to them. He noted that such move will  lead to providing jobs for citizens, and urged government to fashion out policies that would favour establishment of industries in the country.

He said the association has about 2,500 members and that about 70 percent of industries in the country are located in Lagos, Ogun and South Eastern parts of the country, adding that government should accelerate the provision of gas pipeline to encourage  establishment of manufacturing industries and their sustenance in other parts of the country.

Kwara State Governor, Alhaji Abdulfatah Ahmed, assured the manufacturers of the state government’s readiness to create incentives that will encourage manufacturing industries to flourish in the state. He said the state will also design policy that will grant tax holiday to manufacturing industries in the state, adding that all bottlenecks will be removed.

Earlier in her address, Chairperson of Kwara and Kogi states chapter of the association, Princess Omolola Olobayo, said the essence of the visit is for the association to evaluate the industrial development in the state. She urged members of the association to continue to be committed to the drive of providing employment to the teaming unemployed youths in the country.
- Vanguard

Minister of Agriculture, Dr. Akinwumi Adesina

The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, said on Tuesday that the Federal Government would soon place a total ban on the importation of fish and other aquatic consumables.

Adesina said this in Ado-Ekiti during the inauguration of the Special Growth Enhancement Support scheme for fisheries and the aquaculture value chain, according to the News Agency of Nigeria.

He, however, said that the ban would be imposed only if arrangements being put in place by the government to that effect worked as planned.

The minister, represented by the Federal Director of Fisheries, Mrs. Foluke Areola, said the country had no business importing fish, given its huge natural and renewable resources.

He said it was in view of this that the ministry was promoting increased fish production through the aquaculture value chain.

This is in pursuance of the goal of the Agricultural Transformation Agenda of the Federal Government, he said

"The value chains are to create an enabling environment for increased and sustainable production of over one million tonnes of fish within the next four years, generate employment and pursue gradual reduction of fish imports," the minister said.

Adesina noted that the aquaculture value chain, under its four-year implementation plan, would increase the annual production of fingerlings in the country by 1.25 billion tonnes.
- The Punch

Dr. Yemi Kale, Statistician-General of the Federation

The Statistician-General of the Federation (SGF), Mr. Yemi Kale has said the proposed rebasing of the country’s gross domestic product (GDP) is not a guaranty that the economy would expand.

Kale who spoke  at a one-day sensitisation workshop on Nigeria's GDP Rebasing, argued that developments over the past 23 years since the existing "base year" was established suggested that the GDP could significantly appreciate when the rebasing is completed.

“We did a survey of about 40 other countries, in some countries like Ghana it went up to about 50 per cent, some 10 per cent and some actually went down. So we do not know whether it's going to go up or down at this point."

He also disclosed that a tentative rebasing estimate would be provided in December because "all the things we needed for it to work out are now in our control," he explained.

Kale added: "Well, we have released our tentative time-table for the rebasing in December. Maybe we can now get the stakeholders to supply the data we need.
"We feel confident that with the support of different stakeholders, we'll be ready by December. By then, we'll have preliminary estimates of the rebased GDP and by next year, we'll now have the final detail. But the difference between the final and preliminary are not supposed to be different. By December, we'll have preliminary estimates you can work on."

Kale, who  described rebasing as an act of changing the current base year to reflect current reality in terms of economic activities, noted that “rebasing as a statistical activity could be summed up as the updating of the GDP computation framework using new data sources, definitions and methods.”

Also speaking at the occasion, the Minister of National Planning Commission (NPC), Dr. Shamsuddeen Usman ,pointed out that contrary to widely held notion that the country's GDP growth had not impacted on the living condition of the populace, stating it did not necessarily have direct bearing with citizen's welfare and poverty reduction.

According to him,  there were visible constraints associated to the use of GDP alone in gauging welfare or development.

"For example, Nigeria's real GDP growth rate has averaged seven per cent since 2004, but poverty reduced by only two per cent during the same period, raising questions about the quality and sustainability of such growth, " he noted.

Usman added that though income growth which is determined by growth in GDP had been recognised as a pre-condition for poverty reduction, it basically underlined how the national income of a country was generated, who produces or earns it and what it is spent on.

The minister however said the GDP rebasing for the economy, would among other things, help measure changes which had occurred over time in order to give a more accurate estimation and attract foreign investment.

This, according to him, would also command international respect for the country and serve as a basis for future projection.

The minister said the federal government had expanded its financial support to the NBS in the last two years to improve on data generation and bring the rebasing project to fruition.

In his remarks, the Country Director, International Monetary Fund (IMF), Mr. Scott Rogers, advised the GDP rebasing exercise was not a process that should be rushed because it required tedious and huge amount of data.

He said the outcome of the exercise could be difficult to determine as it could either reveal a contraction or expansion of the economy.

He said the NBS must not be blamed for whatever outcome the study reveals, adding it was just an improvement on how to measure the economy.
Rogers said IMF would continue to support the NBS to make the exercise a success.
- Thisday

Stakeholders involved in the Gross Domestic Product (GDP) rebasing exercise must ensure that the figures they get at the end of the exercise are the true reflection of the economy, the Minister/Deputy Chairman, National Planning Commission (NPC), Dr Shamsuddeen Usman, has said.
Usman, who gave the advice during a two-day Sensitisation Workshop on Nigeria’s GDP Rebasing Exercise in Abuja, noted that this was the only way to ensure sustainable economic development.
He said the GDP measures the value of the total economic output at a particular period of time, and remains the single most universally accepted measure of economic output for international comparison.
He maintained that the attainment of the nation’s Vision 20:2020, is dependent on the availability of reliable GDP estimates.
He said: “It is critically important that the nation’s GDP estimates are accurate as possible, adequately capturing historical changes and developments over time, appropriately depicting the present realities and sufficient enough to serve as basis for future projections.”
The Statistician-General of the Federation, Dr. Yemi Kale, said that the tentative figures of the rebased GDP will be released in December upon completion of the nine scheduled surveys, while the final figures would be announced next year at the end of the two major censuses planned as part of the rebasing exercise
He restated the strategic importance of the project to national development, and canvassed stakeholders’ support for the exercise as an option for the realisation of the broad policy objectives of the Transformation Agenda, as well as those of the broader Vision 20:2020.
Kale, who spoke elaborately on various initiatives by the National Bureau of Statistics (NBS) to improve the quality of the Nigerian statistical system, described the GDP rebasing project as coming at an auspicious time after over 23 years of the last exercise, designed to help in updating Nigeria’s GDP in a way that would reflect the accurate value added of the production of goods and services in all sectors.
The International Monetary Fund (IMF) Senior Country Representative in Nigeria, Scott Rogers, said the effort to rebase the GDP, would help Nigeria’s efforts being targeted at using reliable and timely statistical data as economic tool for effective planning, and implementing of governments’ policies at national and sub-national levels.
Commending the NBS for the initiative, the IMF chief was optimistic that the successful completion of the exercise would improve Nigeria’s ratings in terms of her economic capacity and opportunities.
- The Nation

Dr. Yemi kale, Statistician General of the Federation

Worried that much of Nigeria’s fiscal planning and economic policies at the Federal, states and local governments levels have been consistently hinged on an obsolete Gross Domestic Product (GDP) baseline carried out since 1990, the World Bank, International Monetary Funds (IMF), the Africa Development Bank, the United Nations Development Programme, among others development partners are to help the country in generating a current and accurate GDP figure.

 Statistician -General of the Federation (SGF), Dr. Yemi Kale, gave this indication Monday at a sensitisation workshop on Nigeria’s Gross Domestic Product (GDP), where he also hinted that the National Bureau of Statistics (NBS) planned to generate a base-year estimates which is to help in filling gaps on data needed for future estimates.

  Kale said that the current price and quantity structure used to compile and measure Nigeria’s GDP, will be replaced through a rebasing exercise which he said will help Nigeria plan and measure development better.

  “The process of replacing the present price and quantity structure of the base year used to compile real measures of GDP with a new or more recent price structure is known as re-basing. It involves changing the price and quantity base for individual process and quantity relatives, updating weights used in aggregating individual quantity relatives into sub-indexes and aggregating these sub-indexes into more aggregated indexes. 

  “We are trying to update the current farm price and quantity structures used in the calculation of our GDP estimates to come out with more up-to-date figures,” he said.

  He noted that continued reliance on the 1990 generated GDP figures will not help the Federal Government in effectively tackling development targets set by it, especially the Vision 20:2020 transformation agenda which hoped to place Nigeria among countries of the world with the most vibrant economies.

   Minister/Deputy Chairman of the National Planning Commission, Dr Shamsudeen Usman, described the intended rebasing exercise as essentially statistical in nature but called on stakeholders to ensure that the processes leading to outcome of the rebasing are transparent and open to members of the public. He maintained that the processes leading to arrival of a new GDP are as important as the outcome itself.

 “It is critical to mention that the nation’s GDP estimates are as accurate as possible, adequately capturing historical changes and development over time, appropriately depicting the present realities and sufficient. While it is clearly statistical that some might say should have been done without fanfare its importance necessitates that all relevant public and private sector stakeholders are brought on board”, the minister said.

  IMF Senior Resident Representative, W. Scott Rogers, in his remark, said that the process of rebasing was complex and time consuming, adding that the exercise required carefulness and expertise. 

  He also cautioned that care must be taken to focus on credibility of the process leading to the rebasing rather than outcome of it.

- The Guardian

Aliko Dangote

A major milestone towards the construction of Nigeria’s first private and Africa’s largest petroleum refinery will be reached on September 4, with the signing of a term loan between Dangote Group and a consortium of local and foreign banks for the financing of the project.

Dangote Group is committing an equity of $3.5 billion to the massive project, BusinessDay has learnt. In what could be the single largest contribution to the Nigerian government’s economic transformation agenda, Dangote Group plans to invest $9 billion to build the largest refinery/petrochemical/fertiliser complex in Africa at the Olokola Liquefied Natural Gas (OKLNG) Free Trade Zone.

According to a company official, “we are not resting on our oars as we seek to make possible what could be the single largest contribution to this government’s economic transformation agenda, with our investment of $9 billion in the largest refinery/petrochemical/fertiliser complex in Africa.”

Dangote plans to raise additional $2.25 billion from the DFIs and ECAs to augment its equity contribution of $3.50 billion. The Group reported that due to the vastly improved investor friendly environment in Nigeria, there was a tremendous response by reputable international finance organisations to participate in this syndication.

Dangote Group has in the last five years increased 10-fold to a market capitalisation of $22 billion and today accounts for over 30 percent of the total market capitalisation of the Nigerian Stock Exchange.

The Group said that its massive expansion in the last five years has coincided with the tenure of this administration and have been due mainly to the formulation and implementation of progressive policies of this government, like the cement backward integration policy that has seen Nigeria achieve self-sufficiency in cement production.

A company spokesman said, the “administration has helped create and maintain the enabling environment that has encouraged it to invest over $6 billion in the Nigeria cement manufacturing industry in the last seven years.”

Aliko Dangote, Africa’s richest man, recently unveiled the Group’s plan to invest up to $8 billion to build a Nigerian oil refinery with a capacity of around 400,000 barrels a day and it could come on stream by 2016.

Dangote Group has chosen to walk a path where others have been unable to thread, and analysts said last night they expect the refinery to help cut Nigeria’s oil import volumes significantly while also helping to deal a blow on the opaqueness around the subsidy management system. Nigeria’s installed refined capacity today stands at 415,000 barrels per day, but the government-owned refineries in Port Harcourt, Warri and Kaduna operate at around 30 percent of capacity.
- BusinessDay

Executive Secretary, NCMDB, Mr. Ernest Nwapa

The Nigeria Content Development and Monitoring Board, NCMDB, said it currently has over US$200 million in its Fund, to promote the execution of projects in the oil and gas sector in areas such as fabrication, manufacturing, and training of local talents.

The Executive Secretary of the Board, Mr. Ernest Nwapa, who disclosed this also, hinted that over N2 billion had been invested in the construction of fabrication yards across the country, noting that it had a zero account when it commenced operations three years ago.

“I will rather say that there have been more opportunities in the industry since the creation of the board. Although as at the time we started, we operated from a zero account but today $200 million fund with us,” he said.

Within three years of enforcing the local content initiative in the oil and gas sector, he explained that it has achieved 90 per cent content in local engineering, 50 per cent in fabrication, and seven per cent in manufacturing.

Nwapa disclosed this while speaking on the theme: “Three years of Nigeria Content: Achievements and Challenges,” at the Annual Conference of the National Association of Energy Correspondent, NAEC, in Lagos last week.

He stressed that over the past three years, the Board had made huge progress in achieving the objectives of the Minister of Petroleum Resources, in relation to marine vessels ownership, local fabrication, job creation and manufacturing.

According to him, “As part of our plans to moving the industry forward we will launch two tanker vessels that will carry Nigerian crude oil. This will be the first in the country.”

He reiterated that the Nigeria content initiative is aimed at bringing back lost jobs to the country, saying, “Nigeria for decade has been buying and importing things that we need in the sector. This has resulted to the loss of opportunity to create jobs for Nigerians.

“America realised the importance of bringing jobs back to America and for Americans. Nigeria should not be left out; we should strive to do the same.

“The Nigeria content aims to do just that which is to bring back lost jobs into the country. But in an attempt to be a robust oil producing country, Nigeria must have the facilities, operators own and manage assets in the industry.

“In addition, the Board is involved in direct training to develop local skills which is a model of training Nigerians and sending them abroad. This has been done in collaboration with PETROFAC and OGTAN,” he said.

Nwapa argued that the NCDMB is becoming a robust entity owing to the growth of more indigenous players in the industry, and haven seen the success of the local content initiative in the petroleum industry, the National Assembly is currently deliberating on laws in spreading the Nigeria content law to all sectors of the economy.

“We can make Nigeria a great oil producing nation, but in doing so, we need the support of the press. The Nigeria content law does not deprive anybody to work in the industry, but encourages everybody to work,” Nwapa said.
- Vanguard

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke

Hopes for a harmonized stance on the contentious Petroleum Industry Bill, PIB, between the Federal Government and the oil majors under the auspices of the Oil Producers Trade Section, OPTS, dim further. Both parties maintained their positions at the just concluded conference organized by the National Association of Energy Correspondents.

The PIB Lead Team and Group Executive Director, Exploration and Production, Nigerian National Petroleum Corporation, NNPC, Mr. Abiye Membere, who was represented by Mr. Victor Briggs, maintained that the PIB if passed into law will be beneficial to all stakeholders.

He listed some of the benefits of the bill to include:

•Creating a robust economic environment to attract investments

•Growth of revenue beyond the short term

•Create strong and independent regulators to develop and enforce open, fair and transparent rules in the oil and gas sector

•Liberalize and regulate the downstream and midstream sub sectors of the oil and gas industry

•Create a commercially-oriented national oil company that will compete effectively with its peers

•Foster progress on government transformation agenda especially in the areas of growth, employment creation, power and industrial development.

•Sustain the gains of Nigerian content development and in-country capacity and capability.

Membere said the PIB represents the largest overhaul of the government petroleum revenue system in the last four decades, as it is meant to simplify the collection of revenues and cream off windfall profits in case of high oil prices.

OPTC disagree

However, the Chairman of OPTS and Managing Director, Mobil Producing Nigeria Unlimited, Mr. Mr. Mark Ward, said that if the PIB is passed as it is currently, oil and gas production will decline from 63 percent to about 25 percent.

He said that this will translate to about $185 billion loss in revenues for all stakeholders, as new projects will be stalled.

He argued that the PIB will create one of the world’s harshest production sharing contract, PSC regime, as Nigerian governmentstake (royalties, taxes and NOC profit oil) at 96 percent, is the highest in the world.

He cited other oil producing countries where government take is lower, such as Trinidad and Tobago (58 percent), Angola (62 percent), Nigeria, pre-PIB (70 percent), Equatorial Guinea (75 percent), Egypt (79 percent), Malaysia (85 percent), and Indonesia (89 percent).

According to Ward, “The cumulative effect of this is a combination of higher royalties and taxes with reduced incentives such that: no new deepwater investments are economically viable and they will not go forward, 90% of new JV gas production will not happen, 30% of new JV oil production will not materialize.

“As part of our analysis of the PIB, we also compared the proposed fiscal terms with 20 other countries. What we see across the board is that when a country has relatively high royalties, they balance it with relatively lower taxes or higher taxes with lower royalties with incentives in both cases providing some balance.

“However, the PIB doesn’t have this balance and the result is that Nigeria would have one of the harshest fiscal regimes in the world. This will make it very difficult for Nigeria to attract the required foreign capital to offset decline let alone grow production. And this comes at a time when the global energy landscape is drastically changing.”

Ward cautioned that Nigeria must get it right now especially with the advent of the shale gale and the discovery of oil in other African countries.

“As you know, new technologies are unlocking shale oil and gas in the US with Russia and China expected to follow. Closer to Nigeria, there have recently been significant gas discoveries in East Africa and West Africa is opening new areas with attractive terms up and down the region. On the market side, recent refinery upgrades are reducing the need for light crudes like Nigeria’s Bonny crude putting pressure on crude sales. All these advances are creating direct competition for investments dollars with Nigeria … That is why now, more than ever, it is important that we get PIB right to keep Nigeria competitive for investments,” he said.

As regards gas, the OPTS chairman also expressed the organization’s concerns over non-fiscal issues which he said would further create uncertainty for the industry and impede investments.

He identified some of these non-fiscal impediments to investments to include:

Licenses and leases – Current PIB terms do not provide adequate time for optimal field development and includes aggressive relinquishment requirements and uncertainty about renewals.

Contract sanctity – Sanctity of contracts is critical to promote a conducive business environment and maintaining investor confidence, especially in the oil and gas industry which requires high up-front investments that take many years before the investments hopefully pay back. Thus, there is a difference between changing a law and changing a contract.

Dispute resolution – Access to independent arbitration is a key part of a secure investment environment, and a globally-accepted practice. PIB should seek to do the same as also is provided in the current law. PIB as proposed has government regulators providing the final decision on business disputes.

He therefore advocated for a bill that would result in globally competitive terms and an investor friendly enabling business environment so as to retain the international capital required to materially grow Nigeria’s production.
- Vanguard

Minister of Power, Prof. Chinedu Nebo
The Minister of Power, Prof. Chinedu Nebo, on Monday said the Federal Government had designated $1.6bn for the expansion of power transmission facilities in the country.

He said a substantial part of the fund came in form of loans from the World Bank, African Development Bank and Chinese Exim Bank as well as proceeds from the Eurobond sales.

Nebo said this in an interview with State House correspondents after a meeting of the Presidential Action Committee on Power presided over by President Goodluck Jonathan at the Presidential Villa, Abuja.

He said with the privatisation of the power sector, its success would soon dwarf that of the telecommunication sector because the step would re-energise the nation’s economy.

The minister said much of the deliberations at the meeting dwelt on expanding the transmission network in the country to ensure that all the power generating plants had adequate capacity to pull out electricity.

He said, “The presentation today (Monday) was by the Transmission Company of Nigeria and that was to explain to the PACP all the things we need to do to make sure that all the power generated between now and several years to come, that the capacity is there to do that and also to point out the funding gaps and be thankful to the President and National Council on Privatisation, Niger Delta Power Holding Company and Federal Ministries of Power and Finance and Petroleum, and much of what is needed to do these things are being put in place.

“We also have substantial amount of funding coming in form of loans from the World Bank, African Development Bank, Eurobond issuance, and the Chinese Exim Bank the NDPHC. $1.6bn has already been designated for the expansion of transmission facilities in the country.”

Nebo added, “The government is adequately prepared, everybody is excited at what has just happened, that we had such a significant compliance of all the preferred bidders, who bought the Gencos and the Discos as you can very well tell, most of them have paid up and most people thought it was never going to happen.

“Today, it is a reality and Nigeria is going from a public sector dominated power sector to a private sector driven power sector. We believe that this is very good for the country, we are celebrating that, the entire nation is agog with it, the international community is amazed that this miracle could happen in Nigeria and we are so happy that everybody sees that it was a fragile situation because no county in Africa has taken the quantum leap to do the entire generation and distribution company utilities like that in one fell swoop.

“Nigeria has done it and I think the government of President Goodluck Jonathan should be commended for the courage, boldness and the dexterity of purpose to have ensured that has happened and it is happening, we thank God.”
- The Punch

Minister of Information, Mr.Labaran Maku

The Minister of Information, Mr. Labaran Maku, has said all the 11 power plants being constructed by the Federal Government will be completed before the end of the first quarter of 2014.

Maku stated this on Monday while fielding questions from journalists after the Peoples Democratic Party stakeholders’ meeting in Lafia, Nasarawa State.

He said seven out of the power plants had so far been completed, while efforts were being intensified to complete others before the end of the first quarter of 2014.

The minister said the Federal Government had completed 150 out of the 220 injection sub-stations being constructed to stabilise and hold the power to be generated.

Maku further explained that the privatisation of the sector would enhance efficiency in power delivery as was witnessed in the telecoms sector.

The minister noted that the Federal Government deserved commendation for completing the plants in two years, adding that electricity generation would double in the next few years.

 “It is almost magical for the President Goodluck Jonathan’s administration to have achieved this feat in just two years; this is a clear indication of his commitment to deliver on power,” he said.

Maku pointed out that the present administration had done far more than any previous administration in the country.

He, therefore, appealed to Nigerians to be patient with the administration, pointing out that there would be a lot of improvement and stability in the power sector before the end of 2014.

Maku said the media was under reporting the achievements of the government.

He said, “It is unfortunate that the media is focusing more on personality rather than discussing development.

“The media should focus more on progress and on the achievements of the government irrespective of political party platform in the interest of the people.”

He added that the government needed support and the media had the responsibility to report progress “so that you don’t fixate yourself with politics.”

“Politicians will want to undermine tangible achievements because they will want to come in, but the reality of what the Jonathan administration is doing is very clear and deserves to be reported,” he said.

Meanwhile, the President has given an assurance to Nigerians that they will soon begin to enjoy the benefits of the privatisation of the power sector with the successful conclusion of the sale of the generation and distribution companies.

A statement by his Special Adviser on Media and Publicity, Dr. Reuben Abati, quoted the President as saying this while granting audience to a delegation of the Anioma Peoples’ Congress led by the Asagba of Asaba, Prof. Chike Edozien, at the Presidential Villa, Abuja on Monday.

Jonathan confirmed that all the successful bidders for the power generation and distribution companies except one had completed the payments required to complete the process, which he said was conducted in conformity with globally acceptable standards and best practices.

He said, “We are fully conscious of the centrality and importance of adequate power supply for our developmental efforts. We have challenges in the sector but we are constantly working to overcome them.

“We are currently in a transition phase in which the sector is being positively transformed. The sale of our generation and distribution companies is almost concluded. Finally, everyone has paid and in the shortest possible time, our power sector will take on a much more positive life of its own for the benefit of all Nigerians.”

Jonathan said his administration remained fully committed to significantly improving national infrastructure and would continue to work on rapidly developing railway links, airports, seaports, roads and other transportation services in the country.

 “We are glad that you appreciate what we are doing. We will continue to work very hard so that Nigerians in all parts of the country will feel the positive impact of our efforts to accelerate national development and progress,” he said.

Responding to the delegation’s request for his support for the creation of Anioma State and for the next governor of Delta State to emerge from Delta North if Anioma State did not become a reality before 2015, Jonathan reportedly said such political matters did not depend on him alone.

Edozien, on behalf of the delegation, thanked the President for the commencement of work on the Second Niger Bridge and the approval of a cargo terminal at the Asaba Airport.

The group also praised the President’s handling of the country’s security challenges.

“We are glad that you have tenaciously carried on with your development strides in spite of distractions. We believe you should be given all necessary support to forge ahead and we assure you of our full support if you decide to seek a second term in office,” Edozien told the President.
- The Punch

Mr. Inuwa Abdul-kadir, Former Minister of Youth Development

The Minister may have been fired for his role in the new political association floated by seven PDP governors.
President Goodluck Jonathan on Monday relieved Inuwa Abdul-kadir of his appointment as Minister of Youth Development.
According to a statement from the Office of the Secretary to the Government of the Federation, Pius Anyim, the President’s directive takes immediate effect.
The statement, which was signed by the Special Assistant on Media to Mr. Anyim, Sam Nwaobasi, directed Mr. Abdul-kadir to hand over to the permanent secretary of the ministry.
The President expressed appreciation to Mr. Abdul-kadir for the time he put in the service of the nation and wished him success in his future endeavours.
“Mr. President expresses appreciation to the Former Minister for the time he put in the services of the nations and wishes him success in his future endeavor,” it said.
Although, the statement was silent on the reason for Mr. Abdul-Kadir’s sack, presidency sources said it might not be unconnected with his closeness to the governor of his home state, Sokoto, Aliyu Wamakko.
2015 politics
The Sokoto state governor recommended Mr. Abdul-Kadir for the appointment when his (Abdul-kadir) predecessor resigned to contest the governorship primaries of the Peoples Democratic Party, PDP, in 2011. Mr. Wamakko was also an aspirant in the primaries and eventually emerged the party’s candidate before winning re-election.
A presidency source claimed that Mr. Abdul-kadir is an interim official of a new political association, Voice of the People, VoP, floated by Mr. Wamakko and five other PDP governors; and now seeking the nod of the Independent National Electoral Commission, INEC, as a party.
It was gathered that the former minister may have been functioning as the protem secretary of the new group.
Media reports on Monday had linked seven PDP governors- Chubuike Amaechi (Rivers), Sule Lamido (Jigawa), Musa Kwankwaso (Kano), Murtala Nyako (Adamawa), Babangida Aliyu (Niger), Abdulfatah Ahmed (Kwara) and Mr. Wamakko, all of who belong to the faction of the Nigeria Governors Forum, NGF, chaired by Mr. Amaechi- with the new association.
Apart from belonging to the parallel faction of the governors’ forum, the governors are also believed to be opposed to the undeclared second term aspiration of Mr. Jonathan.
Some of the governors had also visited some former leaders of the country in their acclaimed bid to save its democracy. In the course of the visit, they canvassed the removal of Bamanga Tukur as the national chairman of the PDP, an alleged move to get at the President.
- Premiumtimes