Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Friday 30 December 2016

Court sentences son of a former district head to death by hanging

Law

One Mu’ammar Tukur who happened to be the son of ex-District Head of Bakori has been given a death sentence by hanging by a Katsina State High Court after being convicted of committing murder when he stabbed one Shafir Muktar to death.

Justice Abbas Bawale in judgment stated that the prosecution which is being headed by Mr Aminu Garba successfully established the case of the alleged murder beyond reasonable doubt. This is because five witnesses along with other relevant exhibits were presented to prove their point, as being needed by law including the victim’s death, cause of the death and intention behind the act.

The incident happened April 21 2008 when a fight broke out between the convict and some of the witnesses presented by the prosecution at a viewing centre.

It was stated by the judge that attempt made by the defence counsel to dispute the evidence of the prosecution were all fruitless, when he argued that the metallic material used to commit the crime was not displayed before the court.

According to the judge, the convict ran away between 2008 and 2013, but was apprehended during his mother’s burial at the grave yard.


Speaking further, the judge held that the plea for leniency could not be heard due to some legal constraints as enshrined by law, and suggested for such plea to be forwarded to the state governor. And said an appeal could be made within the space of 90 days.
The judge also said the plea for leniency could not be entertained because the court’s discretion was blocked by law and directed that the plea should be sent to the state governor.


He advised the defence to file its appeal within 90 days.

Thursday 29 December 2016

Wilbur Ross says other nations should use Brexit to steal British trade

Wilbur Ross on Brexit

While some people are trying to politicise Brexit and, the real essence of the outcome of the referendum as decided by the British people, other countries competing against the City of London are exploring ways of taking full advantage of the decision of the UK to leave the EU.

The latest of such is coming from Wilbur Ross who said other competitive nations should view Brexit as a “God-given opportunity” against the City of London in financial services.

American President-elect, Donald Trump’s trade boss has commended other nations competing to overtake the City of London, to use this opportunity to lure businesses away from the United Kingdom.

The UK according to Wilbur Ross, is encountered with a “period of confusion” as a result of the outcome of the June 23 referendum to leave the EU, saying it was "inevitable" there would be "relocations" of businesses and institutions.

The billionaire businessman added that the UK's withdrawal from the EU was a "God-given opportunity" for London's financial rivals. Specifically mentioning Frankfurt and Dublin.

Mr Ross will be responsible for negotiating a free trade deal with the UK. Thus, his view on the UK’s business position potentially brings about some kind of concerns for the Trump’s incoming regime, as the US use Brexit to exploit Britain’s separation as result of Brexit.

Though his comments were released prior to his appointment by Donald Trump into his cabinet. As sources said it was made to an audience of Cypriot financiers.

"I recommend that Cyprus should adopt and immediately announce even more liberal financial service policies than it already has so that it can try to take advantage of the inevitable relocations that will occur during the period of confusion," he is quoted as saying.


Accordingly, Labour said his remarks, should be a "salutary warning" that other countries were ready to take advantage of the UK's vulnerability.

Sunday 25 December 2016

Naira predicted to fall to a record low next week

Forex in Nigeria


The continued weakening of the naira has made financial analysts predict the possibility of the Nigerian local currency exchanging for as high as N500 to a dollar by next week, if care is not taken to salvage the economy.

Despite the fact that most Nigerians living abroad who are in the country for the Christmas holiday would have flooded the country with hard currencies, dollar is still said to be scarce, thus making the Central Bank of Nigeria (CBN) to cut supply to operators of forex.

As at the close of business on Thursday, the local currency was 495/USD at the parallel market, which is N10 higher that the rate previously.

Meanwhile, on the interbank window, the rate was N310.5/USD.

“There is an acute shortage of dollars in the market because of supply being slashed by half to Bureau de Change operators from international money transfer agents, pushing the naira down,” one trader said.

Due to the shortage of dollars, the forex traders at the black market now get $8,000 each week, which is far below the $15,000 they were being issued in the past.


The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

Tuesday 20 December 2016

Pound sterling depreciates further against major currencies

British pound falls

The pound has endured a wobble as business sectors encounter a crisp episode of butterflies over Brexit.

Sterling snuck past a penny against the US dollar to underneath $1.24, its least level in a month, prior recouping a bit.

It was likewise around a penny against the euro to under €1.19.

The cash was lifted a month ago by indications of a "delicate" UK exit from the EU, with discuss a transitional course of action for leaving seeming to make strides.

Be that as it may, notion towards the pound debilitated after advancements throughout the end of the week.

Worldwide Trade Secretary Liam Fox, seen as a Brexit hardliner, showed he was interested in a transitional arrangement however was mindful about joining to an excessive number of the EU's directions.

In the interim the Financial Times reported that EU Brexit mediators were demanding that the UK ought to consent to its separation settlement before Brussels could offer any transitional arrangement.

England's vote to leave the European Union in June sent the pound to 31-year lows against the US dollar.

The frail pound, which makes imported merchandise more costly, has begun to nourish through to higher swelling - which is required to push over the Bank of England's 2% focus one year from now.

A week ago the Bank of England said the late change for the pound could mean a milder ascent in expansion than it had anticipated in November,


In any case, Bank additionally advised that "further instability" was likely - represented by the most recent butterflies.

Wednesday 14 December 2016

An MMM victim in Benue State, attempted suicide by ingesting insecticide

MMM suicide

Suicide death may be on the rise in Nigeria following the freezing of all confirmed accounts of all participants of the Ponzi scheme.

A man who wedding was barely two weeks away tried to kill himself by taking in insecticide, as he could not withstand the agony of the of having his N300, 000 frozen which was earmarked originally for his wedding.

The man whose identity is given as Adakole, came to the realisation that not only was his capital lost to the scheme, but the 30% interest as well, thus resorted to commit suicide.

According to Daily Post, a friend of the MMM victim said that the prey is currently struggling to survive in a clinic at Otukpo where the sad incident took place.

Narrating further, Adakole’s friend said, the victim gave him a call to ascertain the authenticity of the news, prior to his attempt to kill himself, and also called his fiancée is an Abuja resident.

Meanwhile, it was announced by MMM on Tuesday that the accounts will kept frozen for a period of one month, but so many Nigerians have come to the conclusion that the scheme had already crashed, but they are trying to use that as a cover up.

Nevertheless, the owners of the Ponzi scheme, have reiterated that the scheme is not crashed in any way, as was predicted by the government through various agencies.


Tuesday 13 December 2016

Founder of MMM writes an open letter to the Federal Government of Nigeria

MMM founder

Ponzi conspire organization (MMM) Founder, Sergey Mavrodi has purportedly composed an open letter to the Federal Government of Nigeria clarifying what benefits Nigerians derive from the business.

As per www.nan.ng the letter was shown on the page of all members of the Scheme.

Review how the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) had cautioned Nigerians against taking an interest in the plan which it depicted as a "Ponzi". Also, the House of Representatives in October likewise requested an examination concerning the operation of the plan.

As indicated by the letter, Mr Mavrodi entreated the administration to take a gander at the event of the plan as opposed to be against it without knowing how it was helping Nigerians. He further demanded that if the legislature was truly keen on the welfare of the Nigerian member, then the plan ought to be allowed to sit unbothered contending that MMM was helping the more than 3 million Nigerian members.

Below the detailed content of the letter, which was extracted from the control panel of one of the member of MMM:

Open Letter from Sergey Mavrodi to the Nigerian Authorities Honorable authorities,

So far MMM has come under a constant attack from you. In this regard, I would like to ask you a few simple questions. Since you are concerned with the interests of millions of your fellow citizens, I hope that you would be so kind to answer them.

What are you trying to get? Do you want the MMM System to collapse and millions of people to suffer? Who will support them then if now MMM is their only means of livelihood? Will you? You even don’t pay wages to people? Or might you not care about them? Might you be using a trendy topic to make a good name for yourselves? What will you say to a mother who will have no money to buy food for her child? Will you let her child die for the sake of the higher interests of the economy?

You say that MMM is a scam. What is the scam here, if all members are warned in advance about all the risks, the possible and impossible ones? They know there are no investments at all. The warning is a red text on a yellow background placed on most prominent place of the website.

You say that MMM is bad. Why? Yes, it produces nothing, but nothing gets out of the country either. The money is just redistributed among the citizens of Nigeria. It gets from those who are richer to poorer ones, in this way restoring social justice. What”s wrong with that?

You have repeatedly stated that “it should be investigated!.. researched!..” It means you know nothing about this System yet; you even haven’t understood how it works………

And finally. If you know what is right for people, why is the life so bad in the country?

Sincerely yours,
Sergey Mavrodi

P.S. As for your statement that “everything will collapse soon”. The system has been working in Nigeria for a year, and according to your estimates, the total number of members now is about 3 million people. In Nigeria the population is approximately 195 million. Can you calculate? Will it be “soon”? :-))


Panic as MMM freezes confirmed accounts in Nigeria

MMM

Pandemonium in Nigeria as both marketers and other participants of Mavrodi Mondial Moneybox aka MMM are worried about the current challenges facing the venture in the country. This is due to decision of the Nigerian government to freeze all accounts confirmed to be used in operating the scheme.

With the latest development, all those who have invested in the scheme and are awaiting their returns on investment won’t be able to get anything, pending the lifting of the ban. This is because the circular sent by the operators stated that, the accounts freeze may last for up to a month

However, the operators encouraged all their clients to exercise patients, as the action is being taken to prevent any potential difficulty MMM may face due to the festive season, which precedes the new year.

Please below details of the circular: “Dear members!

“As usual, in the New Year season the System is experiencing heavy workload.

“Moreover, it has to deal with the constant frenzy provoked by the authorities in the mass media.

“The things are still going well; the participants feel calm; everyone gets paid – as you can see, there haven’t been any payment delays or other problems yet – but!.. It is better to avoid taking risk. (Moreover, there are almost three weeks left to the New Year.)

“Hence, on the basis of the above mentioned, from now on all confirmed Mavro will be frozen for a month.

“The reason for this measure is evident. We need to prevent any problems during the New Year season, and then, when everything calms down, this measure will be cancelled. (Which we will definitely do).

“We hope for your understanding!


“Administration.”

Saturday 3 December 2016

GOOD NEWS AS OPEC GRANTS NIGERIA PRODUCTION CUT EXEMPTION, AS OIL PRICE APPRECIATES

OPEC

At last a ground-breaking deal reached by Organisation of the Petroleum Exporting Countries (OPEC) after the organisation’s 171st meeting which took place at the headquarters in Vienna on November 30 2016. It was unanimously agreed during the meeting that oil production should be reduced by about 1.2 million barrels, which represents around 4.5% per day.

In a press statement delivered by Idang Alibi, Director, Press Ministry of Petroleum Resources, stated that the agreement was a follow up to an earlier summit held in September in Algeria where each member state reached a compromise on the need to cut production.

According to the statement “it will be the first time since 2008, that OPEC would be accomplishing such a feat which is expected to tackle the key challenge of low price of oil in the international market which has affected the global economy with most OPEC member countries including Nigeria feeling the impact.”

Although, it was also agreed that some exemptions be given be given to countries like Iran, Libya, and Nigeria to increase their production in 2017.

For example, in the case of Nigeria, the exemption was given as result of the destruction of some of the Oil and Gas platforms destroyed by the Niger Delta militants.

Nigerian delegation at the conference was headed by the Honourable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu. The special treatment to Nigeria was due to the numerous industry has been going through in the hands of militants.

Thus, the prospects of the industry would be improved, as the impact was felt on Wednesday when the price of crude oil increased by over 8 percent in London, reaching $51.84 per barrel.

More so, a steady rise in the price of crude oil which happens to be one of the advantages of agreement is going to bring about economic emancipation to member states, of which Nigeria is included.

Accordingly, Saudi Arabia have said they are going to reduce their production by 486,000 barrel per day, while persuading Iraq to also cut theirs, as well as Russia which is a non-OPEC country to cut theirs by 300,000 barrel per day.

This milestone treaty is coming at a period when Dr. Ibe Kachikwu, the Honourable Minister of State for Petroleum Resources is working tirelessly with Ministers from other OPEC member countries and Nigeria’s Dr. Mohammed Sanusi Barkindo as the Secretary General of the Organization, to steer the organization to achieve and sustain unity and competitiveness in the global energy market.

Tuesday 29 November 2016

Naira depreciates further against major currencies as Centran Bank slashes down dollar supply to Bureaux De Change

FOREX sales in Nigeria

Sequel to the recent pronouncement by the Central Bank of Nigeria to slash down the supply of dollar to the Bureaux De Change (BDC) operators in the country, the local currency (naira) has been put under immense pressure.

Thus, the decision has further depreciated Nigeria’s currency to N473 per Dollar at the black market.

According to Financial Vanguard investigations, the apex bank made the cut by 46 percent by selling $8,000 to each BDC through Travelex Nigeria Limited against $15,000 it usually sold per week to them.

In a statement released by the Chief Executive Officer of H.J Trust BDC, Mr Harrison Owoh, it was disclosed that the reduction came as a big shock to the market.

According to Mr Owoh this was conflicting to the general expectation that the dollar sale will be improved to $20,000 per BDC.

“That is why the currency is under pressure with the rate going up.”

Also speaking, was the Chairman of the South West Zone of Association of Bureaux De Change Operators of Nigeria (ABCON), Mr Taiwo Ebenezer, who stated that the reduction in dollar sales was done to accommodate BDCs in other zones of the country.

He revealed to the Financial Vanguard that “The dollar sales have been limited to BDCs in Lagos and Abuja, but ABCON recommended to CBN to find a way to accommodate BDCs in other zones. That is what the CBN has done though the reduction in supply in Lagos and Abuja has prompted the exchange rate to go up.”

He also included that the CBN will definitely consider the impact on the rates and take a decision on whether to keep it at $8,000 per BDC across board or increase the quantity sold per BDC.


Monday 7 November 2016

Dog meat sellers in Bauchi State of Nigeria, said the business is a money making machine to them

Dog meat

While some breed dogs for the sole aim of selling to people who want them as pets, security guards, guide dogs for those who have some degree of visual impairment, it will surprise you to know that, there are those who breed them for sale as meat to dog eaters as dogs are said to be a favourite delicacy to certain communities in Africa.

Report has it that ladies in Tafawa Balewa town of Bauchi State have now taken over the business of offering dog  meat, that was in the past a male dominated business, as they make huge profit from the trade.

According to journalists who paid visit to the community, the business was giving money related aid to so many ladies. A lot of the ladies said they went into the business on the grounds that the menfolk showed up not to be occupied with the business any more.

The ladies when interviewed stated that before, dog meat business was solely saved for the men-society, however it had now turned into a comprehensive business for both men and ladies.

One Mrs. Lucy John, who happened to be a butcher said that a few ladies chose to take to the trade in light of the fact that their male partners were steadily relinquishing it and wandering into different forms of trade. She said that canine meat, being a delicacy in the region, was quick turning into a rare item in the market in light of the fact that the male butchers were forsaking the business gradually.

John said the disregard of the business by men had opened up an open door for ladies to get ready and offer canine meat, as well as breed and market the creature, particularly in view of the lucrative way of the business.

Speaking further, she stated that huge cash is being made during festive season since canines were costly, with the slightest cost being N5000.

She said “The abandonment of the trade by men created an opportunity for me and other women to make money, feed our family and satisfy other needs of our people.

“Selling dog meat is the best as people in the community love eating the meat.”

John said amid the festival of a yearly social celebration in Tafawa Balewa, she butchered four pooches which costed her N25, 000, sold the meat and made enormous benefit.

He said, “We need to do this for survival and since dog meat is preferred in this community, we make business out of it.

“I used to slaughter only one dog at a time but I now kill six.”

Another lady, whose name is given as Mrs Blessing John, likewise authenticated the announcement of Lucy, saying this was boom time' in view of the just ended and approaching season of celebrations.

She said she had butchered six mutts amid a social celebration which came to an end of recent, including that every "piece" of meat was sold at N100.

She said, “Our men no longer do this (selling dog meat) because they are no longer interested, and for us women, we need to survive, as such had to engage in the trade since the patronage is very high.

Madam Kyauta Illiya, a buyer of pooch meat, clarified that the delicacy had an interesting taste accordingly she favoured eating it over whatever other meat. She further stated puppy meat had turned into a most loved food among a few people of the region, and had esteem.

In his view, Mr Isiaku Gambo, another buyer, guaranteed that pooch meat had therapeutic impact as it could serve as cure for a few sicknesses. He demanded that eating puppy meat kept one from any assault furthermore served as a cure to a few maladies.

He said, “If you serve me varieties like fish, cow, chicken and dog meat, I will opt for dog meat because the meat is nice.


“In this community, those who eat dog meat are the strongest.”              

Tuesday 1 November 2016

Current economic realities under President Buhari's regime makes saving almost impossible in Nigeria

Nigerians saving in the bank

Nigerians on Monday in Lagos clarified that the economic reality currently facing the country was making it hard for them to save any unused cash in the bank. As a cross segment of them told newsmen that rising expansion and expanding costs of products and enterprises left numerous with nothing to spare.

These Nigerians gave their feelings on World Savings Day, a day made to build the general population familiarity with the significance of investment funds for present day economies and people alike.

According to Mr Uche Obodo, a government worker, who lamented how his take home could scarcely take him home, considerably less sparing in the bank.

He further observed that the high rate of inflation and the day by day increases in cost were putting much weight on what was left as pay. I can scarcely sustain my family with my pay. It is not as though I don't have the foggiest idea about the significance of sparing cash for the stormy day, however it is not only workable for me to do as such now.''


Also speaking, miss Bola Ogundele, an instructor, said that sparing required discipline yet included that she didn't have anything left in the wake of paying her bills. As she narrated that “most times I borrow almost half of my salary before it comes. The salary is not enough for my upkeep” she narrated.

Canada becomes best destination for students and other investors as they target immigration figure of 300,000 minimum yearly

Canada immigration

While the United Kingdom in a bid to reduce net migration to the tens of thousands through unfriendly policies that are currently scaring students and other investors away from the country, other countries are beginning to woo such prospective students and investors.

One of such country is Canada which just signed an historic trade deal with the EU. The country has put in measures to welcome a minimum of 300, 00 immigrants yearly, so that the pressure on their economy could be put under control as result of increasing ageing population of the country.

The information was made public by the Canadian Immigration Minister, John McCallum on Monday. Though the targeted figure is in line with this year’s remarkably high intake sum, it was nevertheless below targets after a report was suggested last week to increase the percentage to 450,000 immigrants per year.

“In 2016, we jumped to 300,000 largely as a consequence of our special actions on Syrian refugees,” McCallum said.

“What I am announcing today is that for 2017 we will make that 300,000 permanent and it will become the foundation for future growth in immigration,” he said, adding that this rate is “40,000 above the historic norm.”

According to the announcement, over 50 percent of the newcomers will be economically active immigrants and investors who that would accepted under an economic class.

While the rest will be spouses, children or parents of children who have become Canadian citizens, refugees, and others admitted on humanitarian or compassionate grounds.


This year’s large influx of immigrants was notably boosted by the urgent resettlement of some 30,000 Syrian refugees in desperate need at the start of the year.

Thursday 27 October 2016

ECONOMY: Another mouth watering promise made by Buhari's minister to Nigerians


Okechukwu Enelamah

Nigerians have been guaranteed by several members of the Buhari’s government at different times that this will happen and that will happen when that takes place. They used the ministerial list which took several months to get ready, used the national budget etc as excuses for several months, yet after all that, rather than improving the lives of the citizenry, things have gone beyond words that one lacks the right adjective to qualify the level of hardship being faced by the masses.

Now the Minister of Industry, Trade and Investment, Okechukwu Enelamah, has guaranteed Nigerians that they will begin seeing the exertion of President Muhammdu Buhari from the end of this current year and right on time one year from now.

Enelamah made the comment in Abeaokuta, the Ogun State capital while tending to newsmen at the eighth Session of the National Council on Industry, Trade and Investment.

The Minister said the Buhari-led government will astonish Nigerians in the coming year, focusing on that the regime is attempting to end the present recession desolating the nation.

According to him,”You will start seeing result at the end of this year and early next year. As far as I am concerned, next year is a year of results. All the work we are doing will start yielding results from this quarter.

“The level of delivery in 2017 will surprise everybody. People may be saying we are not doing anything but it is impossible for a man to start broadcasting a plan we haven’t really put together well.”



Saturday 22 October 2016

Asian Infrastructure Investment Bank appoints former Minister of Finance, Mrs Ngozi Okonjo-Iweala as a panel member

Ngozi Okonjo-Iweala

Mrs Ngozi Okonjo-Iweala has been made a member of the international advisory panel of Asia Infrastructure Investment Bank. The AIIB Senior Communication Officer, Mr. Song Liyan, in an announcement on Friday, declared that Okonjo-Iweala would join 10 other key people on the board.

According to the announcement, “The Panel provides impartial, objective and independent advice to the President, allowing the Bank to benefit from the international experience and expertise of panel members.”

In a statement, the AIIB President, Jin Liqun, was cited as saying that the members of the panel  would educate the bank on the improvement with respect to its system.

It said, “It is a great honour to convene such an experienced and diverse group of international leaders to advise on the development of the Bank’s strategy.

“I have no doubt that the advice the panel provides will help shape the development of the Bank in the years ahead.

“I could not ask for a better group of ambassadors to help promote our new Bank to the world.”

Members of the panel are made up of previous Bank Negara Malaysia governor Dr Zeti Aziz, previous Pakistan Prime Minister Shaukat Aziz, and previous Swedish finance mininster Anders Borg.

The others includes previous Timor-Leste finance minister Emilia Pires, previous World Bank boss financial expert Nicholas Stern and previous Japanese Prime Minister Yukio Hatoyama, Global Foundation secretary-general Steve Howard.

Likewise included are Korea National Diplomatic Academy chair educator and previous Hong Kong delegate leader and technique, and finance mininster Dr Oh-Seok Hyun.

Previous U.S. minister Paul Speltz and London School of Economics educator and previous Hong Kong CEO Tung Chee-Hwa are the rest of the board individuals.


AIIB, a multilateral international development bank was set up on Dec. 25, 2015, with an underlying capital of 100 billion U.S. dollars (RM419bn), one million shares and an underlying paid-up capital of 20 billion U.S. dollars.

Thursday 20 October 2016

Naira strengthens against major world currencies


Naira appreciates
Good news as the Nigerian naira gradually appreciates against major currencies of the world at the interbank market. According to sources, the naira exchanged at the rate of N307.25 against the USD which is 0.5%.

Though in the black market, it still exchanges for N425 to a dollar, while the GBP traded at N550, and the Euro N470 correspondingly.

The present relative stabilisation of the local currency seem to the attributed to the probable change in policy by the MPC meeting which is being worked out by the CBN, as anticipated by forex dealers

Is hoped that the CBN would likely have a rethink about its forex policy and introduce an option that seem best for the country.


Saturday 8 October 2016

Brexit hits Sports Direct as its projected profit for 2017 drops by about £15m as a result of the fall of the pounds

Sports Direct

Could the sharp fall of the pound sterling mark the beginning of doom talked about by the remain camp of Brexit, as this came almost immediately after the PM’s speech at the Conservatives Conference held in Birmingham.

Thus Sports Direct has issued an announcement stating that its projected profits for one year from now will now be essentially lower because of the sharp drops in the pound.

The organization said it had foreseen its benefits for 2017 to be in the area of £300m, however that those figures had been founded on the presumption that the estimation of the pound would stay at a rate of around $1.30.

After the money market crashed in Asian exchanging overnight on Thursday, in any case, Sports Direct has now needed to re-examine its profit forecast, taking £15m off its expected aggregate.

The firm additionally cautioned that if the estimation of the pound does not recoup, it hopes to lose a further £20m in profits, in light of the present pound estimation of around $1.20.

The cash markets have seen noteworthy instability in the months taking after the UK's choice to leave the European Union, with sterling exchanging at 31-year lows for a lot of this current week.

The latest crumple, frequently alluded to as a 'flash-crash', saw the pound-dollar rate plunge from an effectively low $1.26 to $1.18 in a matter of minutes - hitting $1.14 quickly at one phase, as indicated by Thomson Reuters.

The drop equalled a 9% decrease in the profit of sterling and is thought to have been created by a harsh calculation with controlled programmed exchanging amid the moderately moderate British overnight hours, or by a blunder in information section.


Thus, the share in Sports Direct fell by 12.5% after the announcement was issued.

Thursday 29 September 2016

Is the naira now a mere paper under this current Buhari led APC government?

Forex

With the continuous depreciation of the naira, Nigerians from all segments of the economy and regions are now wondering why the much publicised 'yaun/naira' deal has not made any significant impact?

 As Naira went under new weights in the black market Wednesday, the Central Bank of Nigeria, CBN, issued more mandates limiting utilization of domiciliary bank accounts by bank clients, evidently to stem the weights and enhance official supply of outside trade to the interbank market.

 As an aftereffect of the weight, Naira collided to around N460 and N465/USD1, against the opening rate of N445/USD1 in the black market, however the interbank rate devalued only imperceptibly to N312.9/USD1, against N310 prior in the week.

Cash merchants from the official and black market segment of the business sector credited the repeated weight on rates to a declining supply hole at all the fragments, even as CBN's mediation, as indicated by them, has turned out to be too thin to mollify the immense demand.

According to one of the merchants in a commercial bank: “CBN may have started finding it difficult to intervene with significant supply of foreign currency to the interbank market.

“On the other hand we have been having increased demand from our customers but we are unable to source their requirements for some weeks now.”

Against the setting of the gigantic free market activity hole, CBN seemed to have rejuvenated its limitation measures on access and utilization of autonomous foreign exchange assets.

Recently, some bank clients said they had gotten messages from their banks cautioning them to stop from utilizing foreign exchange inflows as a part of their domiciliary bank accounts purpose of trading.

The orders, as indicated by a source in a bank, came against the rise of a flourishing cash exchange by a few people with their domiciliary bank accounts.

 According to the e-mail, the guidelines stated: “All customers of financial institutions are expected to only use their accounts for their direct personal/company related transactions.

“No customer of any financial institution is permitted to engage in any activity that could be perceived as international money remittance service (IMTO) or bureau de change (BDC) activities without the express approval of the CBN.

“Any customer who fails to adhere to these guidelines runs the risk of being reported not only to the CBN but subsequently to the security agencies.’’

A portion of the banks' record officers who addressed Vanguard trusted the CBN bank would catch up this order with more stringent control of access and utilization of domiciliary records.

Also a financial expert at CardinalStone Partners Limited said: “There is no liquidity yet in the foreign exchange market and the situation is worsening. We need emergency borrowings, foreign exchange inflows as soon as yesterday.

“The forex is not available at the interbank market and that is why the demands are going into the parallel market and hence the rate there is shooting up.”


Tuesday 27 September 2016

Nigerian government outlines conditions for sale of its national assets against the popular will of the masses

Buhari and national assets

As a result of the call to sell some of Nigeria’s national assets by business mogul Alhaji Aliko Dangote, President Buhari’s government has decided to dispose the federal government’s share in most of the asset which are yet to be revealed.

Though well-meaning Nigerians from different part of the country is strongly advising Buhari against making such decision as, it may practically not be in the interest of the common man, President Buhari’s body language so far seem to be adamant to such advices from other professionals and seasoned economist.

Some have even said, if what they claimed with respect to all the recovered loots, and savings from the TSA is true which runs into several trillions, then there is absolutely no need to take such a risk that may further impoverish the masses in favour of the elites.

So far, report reaching us has it that the Federal Government has listed some conditions, that may lead to the disposal of such national assets. One of such condition is the insertion of a clause which may empower the government to re-buy the sold assets when the economy improves.

But the questions Nigerians are asking, is does anything ever reverses to favour the masses? Because over so many decades, government usually bring untold hardship true policies that do not favour the general masses, which never reverses back to the status quo even when things get better globally. Thus Nigerians have found it extremely difficult to trust the government, more so, the current government which many say came into power with numerous mouth-watering promises that they have failed to deliver, with one excuse after the other, with the blame game being the hallmark of this current regime.

According to a presidential source: “The Federal Government has no plan to sell off its shares outright in the LNG, where it owns 49% shares. The balance of 51% is owned by private foreign interests.

“The Federal Government doesn’t own the entire gas company and will certainly not sell off its entire shares, but it’s open to the possibility of selling down its 49% ownership by 5% or thereabout.”

With regard to repurchase clause, he said: “Just as in other potential asset sales, there would be a repurchase option that guarantees the Federal Government’s opportunity to buy back any such assets if circumstances change anytime in the future.

“Some of the intended sales could be in form of time-bound leases, advance renewal payments on leasing licences and concessioning which would attract buoyant signature fees.

“If we even want to sell down certain assets, while our target is to get foreign currency, specifically dollars, the option would also be opened to Nigerians at some point to buy limited shares through the Nigeria Stock Exchange.”

The presidential source further said that one of the concession deal almost finished is the East-West lines of the Nigeria Railways, with the General Electric-GE-being the concessionaire.

The source said the global giant would invest $2 billion in the economy, including for the refurbishment of the single-gauge lane of the lines that have been largely left idle for years.

“GE under the deal, is expected to hire back some of the laid off staff of Nigeria Railways and also open a Transport University in Nigeria while building/assembling train coaches in the country.

“Federal Government would also receive a signature fee in foreign currency as it would in other assets that might be concessioned.

“The important thing to keep in mind is that the sales down of some of the assets is an option to raise the much-needed dollars at a critical time for the Nigerian economy”.


“Nigerians can be sure that there would be no shady deal, considering the character of the Nigerian leadership at this time”, the source said.

Sunday 18 September 2016

The plot to take over Nigeria thickens, as Alhaji Dangote wants NLNG sold

Dangote

Multi-billion dollar business mogul and Africa’s riches man Alhaji Dangote in an interview with CNBC Africa suggested measures that can be taken by the Buhari led federal government to take the country out of the current economic recession.

Amid the media chat with CNBC Africa, Dangote suggested to the government to sell off one of Nigeria’s major asset, the Nigerian Natural Liquified Gas (NLNG) company along with other national assets, which are deemed dormant, that generates has the capacity to accrue huge income the nation. He further suggested that proceeds of such sales should be ploughed back into the economy before the year runs out.

Find below excerpts of Dangote’s statements:
“The only way for us to get out of this recession is to make sure we move into action quickly; action by diversifying the economy quickly.

“If I had challenges in my company, I would not hesitate to sell assets, to remain afloat, to get to the better times, because it doesn’t make any sense for me to keep any assets and then suffocate the whole organisation.

“What we need to do now in my own thinking… we have a lot of assets to sell. We can sell part of the joint venture; part of the shares. You know government normally owns 60 percent.

“We can sell in an open tender be it Chinese. We can change the term and make it an operating one, just like what we have in NLNG. We also have another asset I think we don’t really need.

“The African finance corporation; it can fetch them $800million easily. My own suggestion before was that they should even sell 100 percent of NLNG. I don’t think government should be in any business of investing in sectors of LNG.

“A company like that, with earnings of $1.5 billion on the average, they should get anywhere between $12 billion and $15 billion.”

 “You will not believe that the crisis that we have today, if we have $15 billion, adding it to our $25 billion, that is $40 billion reserves. That will give confidence, confidence will come back, then government will back it up with proper economic policy, where people can see the roadmap.

“Latest by fourth quarter, we will be out of recession. It should be a partnership between government and private sector. We have all the answers, Nigeria falling into recession does not really scare me, if we take action.”

“Once we can sell assets, and put $15 billion together, you’d be very shocked at how much the dollar will actually drop, you can easily see 250. What is happening today is mere speculation.

“To currency, everybody will speculate, banks will speculate, companies will speculate, individuals will speculate, because if you have money, you want to send in from abroad you will keep sending in trickles.

“If you know that CBN has $40 billion in reserves today, if you have $100,000, you might even sell it forward because you know that this rate is going to crash and you must quickly sell it.”

Dangote’s advice is coming at a time the Federal Government said it is set to release a fresh N350bn to finance capital projects, a move aimed at resuscitating the dwindling economy.

But questions being asked by many Nigerians are: is the NLGN really dormant? If such assets are to be sold indeed, can they be done within a short period of time, and the proceeds used as suggested? Considering the shortness of time, will due process be followed to the latter? Is it that the Northern cabals want to use him as a shield to buy all the assets that matters to the nation? These and many more questions need to be given genuine answers to convince Nigerians beyond reasonable doubt that this call has no ulterior motive attached to it, considering the meagre amount former President hurriedly sold of the nation’s refinaries, before late President Yar’Adua reversed such dubious sales.



Friday 16 September 2016

In President Buhari's regime, eating too much rice is one of the reason for recession - Audu Ogbeh

Audu Ogbeh

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, stated in Abuja on Wednesday that the eating of rice in the nation was rising and that many individuals didn't know that the rice had some level of arsenic.

The minister further stressed that eating rice in substantial amount all the time poses some kind of risk to heathy living, including that substituting it with potato would be a good option.

“The volume of importation of virtually everything into this country is too much.
“The demand for dollars in this country as at today is 2.5 billion a week; this is the quantum of dollars Nigerians are asking for to import things.

“Since 1986, we began this habit of importing everything and doing virtually nothing at home to sustain ourselves; now, we do not have the dollars and people are very hungry.

“This day was coming anyway, no matter who was in power; we have the most ridiculous method of devaluing our currency; every week, we auction the dollar and naira goes up.

“We sat and were hoping that by devaluation, we are going to arrive at Eldorado; if we continue like this, it will be a thousand naira to a dollar,’’ Audu said.

While lauding the financial specialist, Ogbeh said that any private sector investor’s exertion that would create local generation of goods and services would be completely upheld by his ministry.

“We should aggressively take the West African market; there is no reason why we should allow Irish potato from Ireland and France and Belgium into West Africa; it is the same story with onions.

Earlier on, the Chief Executive Officer of VICAMPRO, Mr Michael Agbogo, said that potato could bring esteem worth more than one trillion naira yearly if appropriately embark upon.

He emphasised that potato was the fourth most essential harvest on the planet and that a barrel of oil was a likeness 14 kilograms of potatoes.

Agbogo took time to explain that, while current cost of unrefined petroleum will bring the nation about N16,000 per barrel, the comparable in potato will get the nation N39,000.

In terms of value, he said potato had three times the estimation of unrefined petroleum, including that it was an enormous industry the nation could get into.

Agbogo cited Egypt and Algeria as the main potato producing nations in Africa, with Egypt delivering four million tons every year from around 100,000 hectares of land.


He said that Nigeria, which had almost 500,000 hectares, was attempting to create one million tons of potato per year.