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Nigeria says working hard to resolve gasoline crisis

In a chat with Nigerians from all walks of life on Sunday evening during the stopover, the Vice President noted that the Federal Government was moving as quickly as it could to solve the fuel crisis and reduce the difficulties Nigerians were facing as a result.

How Jonathan’s officials, cousin shared 27bln proceeds of PHCN sale -EFCC

The Economic and Financial Crimes Commission (EFCC) has narrated how top government officials under the administration of former president Goodluck Jonathan shared 27 billion, part of the proceeds of the sale of Power Holding Company of Nigeria (PHCN) in 2014.

- Nigeria unemployment rate climbs up

Four out of every ten people in Nigeria's workforce were unemployed or underemployed by the end of September, National Bureau of Statistics (NBS) said on Friday.

Why is Jerusalem important, what makes Donald Trump's intervention so toxic

What is the status of Jerusalem? Israel set up its parliament in West Jerusalem when the state of Israel was proclaimed in 1948. The move followed the United Nations’ vote to partition Palestine on the basis of the British pledge known as the Balfour Declaration that paved the way for a homeland for the Jewish people.

- Nigeria's dollar reserves at $34.53 bln as of Nov. 24

Nigeria’s foreign exchange reserves stood at $34.53 billion as of Nov. 24, up nearly 3 percent from a month earlier, central bank data showed on Thursday. The bank did not provide a reason for the increase in reserves, which stood at $33.58 billion at the same date last month.

Tuesday, 27 March 2018

Nigeria and Switzerland sign agreement to return stolen assets

Nigeria and Switzerland signed a memorandum of understanding on Monday to pave the way for the return of illegally acquired assets, the west African country said.
Switzerland said in December that it would return to Nigeria around $321 million in assets seized from the family of former military ruler Sani Abacha via a deal signed with the World Bank.
Since taking office in 2015, President Muhammadu Buhari has sought help from several nations to recover money he said was taken from public coffers of the OPEC member, which is Africa’s biggest oil producer and has the continent’s largest economy.
Buhari’s spokesman said in an emailed statement that the memorandum of understanding ratified was between Nigeria, Switzerland and the International Development Association, (IDA), the World Bank’s fund for the world’s poorest countries.
“The return of illegal assets will not only boost the administration’s anti-corruption drive, bu also provide additional funds for critical infrastructure,” said the spokesman in the statement.
Separately, Buhari also signed an agreement with Singapore on Monday for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, the spokesman’s statement said

President Buhari says plot to elongate APC chairman's tenure illegal

Nigerian President Muhammadu Buhari has said the proposal to elongate the tenure of the ruling party National and state executive violates the constitutions of the All Progressives Congress (APC) as well as the country's constitution.
Buhari who spoke at the National Executive Committee meeting of the party in Abuja noted that the proper thing to do is for the party to put in place process to conduct congress where the new executive will emerge at the expiry of the tenure of the current executive.
According to the president, he has taken some time to review and seek advise on the previous resolution at the party last NEC meeting, seeking to extend the tenure of the national working committee of the party.
"What I found is that it contravenes both our party Constitution and the Constitution of the Federal Republic of Nigeria," the president told the NEC meeting in Abuja.
Buhari was optimistic that the meeting would provide an avenue to resolve the outstanding issues and consolidate plans towards making APC stronger.
Many top leaders if the ruling party were absent at the NEC meeting, indicating the sharp division within the party over the proposal to elongate the tenure of theh pthe executive.
The president position is expected to douse tension in the party and bring some level of sanity into the affairs of the ruling party.
President Buhari said In the present circumstance, he expected the party to conduct fresh elections once the tenure of the current executives approaches its end.
He also forecloses the constitution of a caretaker committee, such contraption cannot remedy "this situation, and cannot validly act in place of elected officers."
He warned the party leaders against deviating against the provision of the party constitutions which guaranty tenure for its executive, saying the party might be endangering its fortunes.
"If the tenure of our party executives can be legally faulted, then it means that any nominations and primary elections that they may conduct, can also be faulted," he said.

Tuesday, 20 March 2018

Ivory Coast Is Selling Africa's Biggest Euro-Currency Bond

Five African countries have issued a total of $12.8 billion of Eurobonds in the first three months of 2018, with the latest issue by Ivory Coast on Thursday, more than half the record $18 billion they managed last year and exceeding the total for the whole of 2016.
On Thursday, Ivory Coast sold 1.7 billion euros ($2.1 billion) of bonds in the biggest issuance in the common currency from an African government, according to a person familiar with the matter.
The world’s largest cocoa producer followed Egypt, Nigeria, Kenya and Senegal in tapping international markets before policy-tightening by the U.S. Federal Reserve lifts borrowing costs.
BNP Paribas SA, Citigroup Inc., Deutsche Bank AG and Societe Generale SA managed Ivory Coast’s sale.
The West African nation’s amortising deal was equally split between a tranche maturing in 2030 and paying 5.25 percent, and another due in 2048 with a yield of 6.625 percent, said the person, who asked not to be identified as they’re not authorised to speak about the matter.
Price guidance was around 5.375 percent for the shorter securities, which have an average life of 11 years, and 6.75 percent for the longer ones, which have a 29-year average maturity, said the person.
That’s the largest amount of euro debt issued by an African sovereign since at least the start of this century when Bloomberg began compiling the data. 
It was also the second-biggest transaction in the currency from emerging markets this year, after Romania’s 2 billion euro-deal on Feb. 1. Investors placed 4.2 billion euros of orders, said the person.
Calls for comment to government spokesman Bruno Kone and Finance Minister Adama Kone went unanswered.
Yields on the government’s 625 million euros of securities due in 2025, its only other bonds in the currency, fell four basis points to 4.26 percent by 8:52 a.m. in London.

French former president Sarkozy arrested over £42 Mln election campaign fund

Former French president Nicolas Sarkozy has been arrested by the police on Tuesday accused of receiving £42 million in illegal payments from the late Libyan dictator Colonel Gaddafi.
The 63-year-old was arrested by judicial police in Paris and taken to their headquarters in the suburb of Nanterre.
Sarkozy is said to have received the kickbacks in 2007, during the presidential election campaign that swept him to power for a single five-year term.
French law bans candidates from receiving cash payments above £6,300, but the massive donation is said to have been laundered through bank accounts in Panama and Switzerland.
Sarkozy is now under huge pressure to explain himself in the light of what his opponents called compelling evidence, and faces corruption charges over the next 48 hours.
A document made public in Paris is said to show that the French leader and the former Libyan dictator made an illegal financial deal.
Written in Arabic and signed by Mussa Kussa, Gaddafi's intelligence chief, in 2006, it refers to an 'agreement in principle to support the campaign for the candidate for the presidential elections, Nicolas Sarkozy, for a sum equivalent to €50million'.
A bundle of incriminating evidence was originally leaked by senior members of Libya's National Transitional Council to French investigative news site Mediapart.
A governmental briefing note among papers sent to Mediapart points to numerous visits to Libya by Sarkozy and his colleagues which were aimed at securing funding.
One, said to have taken place on October 6, 2005, led to 'campaign finance to NS' being 'all paid' - assumed to be a reference to Sarkozy.
At the time, Sarkozy was an ambitious interior minister who was raising money for his presidential election campaign, even though taking cash from a notorious tyrant would have broken political financing laws.
Mediapart claims that the €50million referred to in the note was laundered through accounts including a Swiss one opened in the name of the sister of Jean-Francois Cope, the leader of Sarkozy's UMP party, who are now called the Republicans.
The money was then allegedly distributed through an arms dealer called Ziad Takieddine, who was acting as a middleman between Arab despots and French politicians.
The news follows claims last year by Gaddafi's son, Saif-Al Islam Gaddafi, that Libya had financed Sarkozy's election.
Saif-Al Islam, who is now being held in Libya following the toppling of his father's regime, said: 'Sarkozy must first give back the money he took from Libya to finance his electoral campaign. We funded it.'
Eyebrows were first raised when Gaddafi was honoured with a state visit to Paris in late 2007.
He was referred to as the 'Brother Leader' by the French president and allowed to pitch his tent next to the Elysee Palace.
The apparently incriminating evidence - which will now be passed to French police - emerged through an investigation into Takieddine's activities. The arms dealer's doctor, Didier Grosskopf, says he witnessed negotiations about funding.
As France's head of state, Sarkozy could not be prosecuted while in office, but fraud squad officers raided his Paris home within days of him losing the 2012 presidential elections.
Sarkozy turned on his friend Gaddafi at the beginning of the Arab Spring in 2011.
French jets were the first to attack Gaddafi's tanks in a brutal military campaign which ended with the Libyan leader being murdered.
Since losing the election in 2012 to his socialist rival Francois Hollande, Sarkozy has been living in Paris with this third wife, former supermodel and pop singer Carla Bruni, 50.
He has tried to make comebacks to power, but all have failed.
A judicial source in Nanterre said: Sarkozy can be held in custody for up to 48 hours. His period in custody started on Tuesday morning.'

Nigeria's state-run oil firm, NNPC move to improve operations

Nigerian National Petroleum Corporation (NNPC), has commenced move to digitalise its operations as part of efforts to ensure the transformation of country’s oil sector, its chief executive Maikanti Baru has said.Image result for Maikanti Baru
Baru said this while inaugurating two committees to achieve this purpose.
The oil firm has set up two major committees to drive the process and they are The Systems Applications and Products (SAP) steering committee and the Group Process Council (GPC).
According to a statement by the firm's spokesman Ndu Ughamadu, the committees will aid the corporation to transform its operations from paperless to digital form.
He said the committees would be responsible for a holistic implementation of SAP and emplace enterprise resource planning which would serve as enablers for the achievement of the corporation’s success.
He quoted Baru as saying SAP was the platform for driving the transformation agenda of NNPC and the 12 Business Focus Areas which include: Ensuring security of the industry assets, Developing new business models, Providing viable alternative funding to Joint Venture Cash Calls, Increasing the nation’s production & reserves base and Growing NPDC oil and gas production.
Others are: Effecting refinery upgrade & expansion, Embarking on renewable energy drive & frontier exploration, Rehabilitating the nation’s oil & gas infrastructure, Strengthening NNPC ventures & common services, Enhancing staff professionalism & Accountability as well as their welfare.
He stated that the platform had the potential to significantly influence the corporation’s ability to compete, operate effectively and create value.
“We have commissioned a new re-delivery project to address the existing SAP challenges we are facing, we are implementing new solutions to manage some of our existing processes not currently on SAP.
”It will also enable us to obtain value from our investments in SAP and provide a working environment where our strategic focus areas are managed in an efficient and effective manner,” Baru said.
He said the Project Steering Committee would be responsible for the overall success of the project and would provide oversight on the management of project issues and risks, approve strategic decisions on SAP and ensure such decisions align with the strategic objectives of NNPC.
”It will also act as SAP ambassadors across the NNPC group to ensure business commitment and ownership of processes deployed on the platform.”
The NNPC boss added that the GPC was accountable for ensuring that processes are optimized and end-to-end assessment of processes are carried out before implementation on SAP.
He charged members of the two committees to firmly establish SAP as the single source of truth for the corporation’s business transactions.
”Let us all be change agents in this journey, drive user adoption, and also see ourselves as leaders committed to setting the right tone for SAP in order to ensure excellence and transparency in our operations,” Baru urged.
Members of the two committees were drawn from all the seven autonomous business units and all the strategic business units of the NNPC.

Monday, 19 March 2018

Foreign investor seeks to inject $1 bln fresh capital into Nigeria's Unity Bank

Nigeria’s Unity Bank Plc is set to receive about $1 billion fresh capital injection from a foreign investors barring all unforseeable circumstance, two people familiar with the deal told Bloomberg on Monday.Image result for Nigeria's Unity Bank
According to the report, New york Based Milost Global Inc has offered to invest $700 million in equity and $300 million in five-year bonds that can be converted into shares in the Nigerian commercial lender. 
The private-equity firm will get an initial stake of about 30 percent in the Lagos-based bank in exchange for its first equity investment of $250 million, the person said.
The transaction is still subject to a due diligence as well as regulatory approvals, the people said. The first part of the deal may be completed in the second quarter, one of the people said. 
The rest of the cash will be drawn down in intervals over a period of four years, provided Unity Bank has sufficient shares to issue to Milost, one of the people said.
An investment in Unity Bank will be Milost’s third in a publicly traded Nigerian company since it agreed to pump $350 million into oil-services company Japaul Oil & Maritime Services Plc in February and to provide a $250 million financing facility to Resort Savings & Loans Plc. Several calls to the numbers listed on Milost’s website went unanswered.
The private-equity firm is targeting companies that trade at less than half of their intrinsic value using a facility combining debt and equity that it calls the Milost Equity Subscription Agreement, it said in an emailed statement on Monday.
Unity Bank, mid-size commercial lender has been struggling to recapitalise in the last two to three years and has changed management more than twice during the peeriod. At some point, PENGASAN, the senior staff working union of the Nigeria's oil sector has offered to buying into the bank, but the deal failed to sail through.
Unity Bank, which was formed out of the merger of nine banks between December 2005 and March 2006, said in April last year that it is in talks to sell its non-performing loans to avoid penalties after missing a deadline set by regulators on its recapitalization plans.
Milost buys shares of a company at a minimum 50 percent premium to its market value, and then pegs this price over the next 90 days. If the stock fails to exceed this threshold, the target company will pay the difference to Milost in the form of extra stock, and a penalty of 10 percent to 20 percent of the discount that the share is trading at over a five-day period, it said.
“The Milost Equity Subscription Agreement is a growth instrument that creates and builds confidence in the stock of the companies in which it invests,” the company said. The targeted company cannot draw down the full committed facility in one tranche and is only allowed to use it from time to time over a three- to five-year period, with Milost eyeing a seven- to nine-year horizon for an exit, it said.
Milost is taking a bet on Unity Bank as the economy of Africa’s largest oil producer shows signs of recovering from a recession after three straight quarters of expansion in gross domestic product, which the International Monetary Fund estimates will grow 2.1 percent this year.
Net income at Unity Bank slid almost 54 percent to 2.18 billion naira ($6.1 million) in the 12 months through December 2016, with assets of 493 billion naira, according to the company’s latest annual report. Its NPLs stood at 48 percent in 2016, when it reported its second straight year of negative capital adequacy ratios, the report showed. The stock has gained 10 percent this year, giving Unity Bank a market value of 15.8 billion naira.
Shares Fall
Nigeria’s banking regulator allows lenders to count certain classes of debt and equity among the buffers that they need to set aside to survive market turmoil without causing risk to the financial system. Capital adequacy ratios across the banking industry worsened to 11.51 percent in June from 14.78 percent a year earlier, according to the central bank.
Unity Bank’s shares fell 8.9 percent to 1.23 naira, its lowest since Jan. 25, amid a global selloff in equities. The stock has more than doubled over the past six months and is the third-best performer in the 162-member Nigeria Stock Exchange All Share Index.
The drop in Unity’s share price is probably linked to concerns that the Nigerian central bank will ease interest rates, which will make it harder for lenders to generate income by buying fixed-income securities, according to Omotola Abimbola, a banking analyst at Lagos-based Afrinvest West Africa. Some investors are also cashing in after the rally in the stock, he said.
Milost’s interest is positive for Unity because it will support the company’s capital base, making it possible for the bank “to be able to grow loans,” Abimbola said. “For an investor to say they’re putting their money into the bank, it shows they have a turnaround plan.”

Wednesday, 14 March 2018

South Africa Sees Receptive Market for $3 Billion Bond Sale

South Africa plans to tap international markets for as much as $3 billion as the country seeks to take advantage of relatively low rates and strong demand from yield-hungry investors.
“We will be coming shortly and taking advantage of the favorable market conditions,” Tshepiso Moahloli, chief director of liability management at the National Treasury, told reporters in London after meetings with investors. “The market is conducive and we’re keen to access that. We are opportunistic in terms of the approach we take.”
South Africa budgeted to raise $3 billion in international markets in the next fiscal year. Though the funding period only starts on April 1, the country has pre-funded in the past. African sovereigns including Kenya, Nigeria and Senegal have sold $10.7 billion of Eurobonds in 2018, already more than half the record $18 billion they managed last year and exceeding the total for the whole of 2016, with record demand from investors.
South African assets have outperformed emerging markets overall since late last year, as Cyril Ramaphosa, then deputy president and a former businessman and lawyer, maneuvered to succeed Jacob Zuma as president. The rand has strengthened 22 percent against the dollar since mid-November, the most globally, as the government moved to rein in the budget deficit, cut debt and stimulate growth. South Africa’s foreign debt is less than 10 percent of total borrowing.
The country’s dollar spread over U.S. Treasuries is 237 basis points, down from as high as 320 in mid-November and compared with 311 for similarly rated Turkey, according to JPMorgan Chase & Co. indexes. The average for emerging-market countries is 312.
“South Africa traditionally has been relying more on domestic funding rather than external, which explains why South African Eurobonds trade so tight compared to some of their peers like Turkey,” said Delphine Arrighi, a London-based portfolio manager at Old Mutual Global Investors Ltd. “The credit story is finally improving after years of slow deterioration. Increased external debt supply should be met with decent appetite from offshore investors.”
South Africa last sold Eurobonds in September, when it issued $2.5 billion of notes maturing in 2027 and 2047 in September. Yields on the 2027 securities climbed two basis points on Tuesday to 5.04 percent.
“South Africa has always enjoyed not oversupplying the market with paper,” Moahloli said. “I think at $3 billion it is comfortable and I don’t think we should push it beyond that.”

Tuesday, 13 March 2018

Ghana May Struggle to Repay Lenders for $1.3 Billion Cocoa Loan

Ghana Cocoa Board may struggle to fully pay back loans of $1.3 billion as this season’s harvest will likely be smaller than first anticipated, according to the head of the industry regulator.
The world’s second-biggest grower signed for the loans with lenders such as Credit Agricole SA and Natixis SA prior to the start of the annual harvest in October to pay farmers for their beans. Ghana will probably not meet its target of 850,000 metric tons due to dry weather and plant disease, Joseph Boahen Aidoo, chief executive officer of the regulator, said Monday in an interview in the capital, Accra.
While recent rains may improve yields in the smaller harvest that runs from June to September, it may not be sufficient to make up for losses suffered in the main harvest that continues until then, he said. He declined to give a new forecast for the crop.
“We are only praying that we’ll be able to meet our collateralized facility because the crop wasn’t as good as anticipated,” Aidoo said. “We just started paying the first installment” in February, he said.
The board purchased 625,111 tons of cocoa for the season through Feb. 22, compared with 640,075 tons for the same period in the previous crop, according to a person familiar with the matter.
While Ghana may not achieve its forecast for the season, it’s already selling cocoa at a loss after it chose not to lower prices for farmers even as global prices slumped by a third from July 2016 through the end of last year. The regulator is losing the equivalent of about $600 for every ton sold this season, it said in February.
The board is in talks with the government on ways to pay for operational expenses and liabilities as the cost of debt on local markets is too expensive, said Aidoo. Over the past year, it sold bills and notes at rates of as much as 22 percent, according to data compiled by Bloomberg.
“We are still discussing with government and we’ll find some solutions,” Aidoo said.
For the next harvest, the cocoa board will target a harvest of 900,000 tons and again seek to raise $1.3 billion in syndicated loans, Aidoo said.
Neighboring Ivory Coast is the top global producer.

Wednesday, 7 March 2018

Nigeria's SEC appoints Deloitte to audit Oando books

Nigeria's Securities and Exchange Commission (SEC) said it was going ahead with the forensic audit of energy firm Oando after the company dropped a lawsuit against the market regulator opposing the probe.Image result for Nigeria SEC
SEC in a statement said it has it has instructed Deloitte, an accounting firm to conduct the audit.
According to the regulator, "Oando has withdrawn the pending lawsuit against the Commission by an application heard and granted by the Court of Appeal on March 05, 2017."
Oando had filed a lawsuit against the SEC to halt the regulator’s suspension of the company’s shares and the planned audit, based on concerns about possible insider trading.
The SEC in 2017 investigated Oando on the basis of petitions from shareholders and a whistleblower, the statement said.
As a result, “the SEC placed the shares of Oando Plc on technical suspension and ordered a forensic audit of the affairs of Oando Plc,” the statement said.
An Oando spokeswoman said the firm is fully cooperating with the regulator.
With the lawsuit dropped, the SEC has asked Deloitte to conduct the audit, the regulator said.
Last month, Oando said it had settled a dispute with a key shareholder and was working on resolving remaining shareholder disputes and getting the suspension of its shares lifted.

Tuesday, 6 March 2018

Nigeria Fidelity Bank seeks loan growth as treasury yields fall



Nigeria’s Fidelity Bank expects loans to grow at a faster pace this year than the 7.5 percent it forecast for 2017, helping lift profits after Treasury bills yields fell, an executive said on Monday.
Nigeria, which emerged from its first recession in 25 years last year, has been working to lower its costs by borrowing abroad to redeem local debt, forcing local treasury yields down.
It redeemed 130 billion naira (307.76 million pounds) in treasury bills last week and paid off 198 billion naira bills in December, leading to rates dropping by around 300 basis points.
Fidelity Chief Operations and Information Officer Gbolahan Joshua told Reuters banks expected their net interest margins to fall to 5 and 6 percent due to the drop in treasury yields, which he said meant banks needed to boost lending this year to lift income.
Net interest margin at Fidelity was 6.4 percent in 2016, while analysts said it was 6.5 percent for the sector.

Nigeria minister says majors in shale, OPEC should keep crude price stable

Oil producers that operate in U.S. shale fields and OPEC member nations should do more to help stabilize crude prices, Nigerian Oil Minister Emmanuel Ibe Kachikwu said on Monday.Image result for oil
The Organization of the Petroleum Exporting Countries plans a “company-based workshop” with companies that operate in both areas, Kachikwu said on the sidelines of the CERAWeek energy conference in Houston. Exxon Mobil Corp, Chevron Corp and Royal Dutch Shell Plc have large U.S. shale operations and also operate in Nigeria.
“Some of the same companies that are working in shale are the same companies working in OPEC,” Kachikwu said. “We need to begin to look at companies that are very active in these areas and begin to get them to take some responsibilities in terms of stability of oil prices.”

Nigeria's trade account turns positive in 2017 after recession

Nigeria’s trade account turned positive in 2017 as a rise in oil exports outweighed imports after dollar shortages frustrated transactions, the National Bureau of Statistics (NBS) said.
The balance of trade last year was 4.03 trillion naira ($13.2 billion). The net trade balance stood at minus 290 billion naira for 2016.
The rise boosts Nigeria’s ambition to promote exports to support its fragile economy and earn foreign exchange while reducing imports. Its 2017 gross domestic product rose 0.8 percent to emerge from Nigeria’s first recession in 25 years.
Nigeria, which faced a currency crisis in 2016 as oil revenues fell, has been trying to diversify its economy away from oil, boost local production and generate non-oil exports. But it needs to build infrastructure such as roads and rails to help boost non-oil exports.
The NBS said oil and gas exports accounted for more than 93 percent of exports in the fourth quarter, with cocoa bean exports, largely to the Netherlands, Malaysia and Indonesia, making up 0.37 percent.
Nigeria’s manufacturing capacity is limited, so it imports most of what it consumes. Fourth-quarter imports dipped 8.5 percent from the previous year to 2.11 trillion naira, the statistics bureau said.
But exports more than compensated, jumping 31.3 percent in the fourth quarter from a year earlier to 3.91 trillion naira, the NBS said.
The trade balance for fourth quarter more than doubled to 1.8 trillion naira from a year earlier.

Monday, 5 March 2018

Germany, EU plan 500MW renewable energy for Nigeria

Germany is collaborating with the European Union (EU) plan to invest about 33 million Euros to increase power generation in Nigeria by 500 megawatts (MW) through renewable energy to serve 100,000 people.Image result for Renewable energy
Iner Hommers, The Programme Head, Nigerian Energy Support Programme (NESP), said in Abuja at a presentation of a compendium of the achievements of the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).
Hommers said that 33 million Euros had been earmarked to execute the project which is the second phase of NESP to enhance further developments in Nigeria’s power sector, especially renewable energy.
She said the EU would provide 20 million Euros in the programme while the German government through, its federal ministry of economic cooperation and development, would give 13 million Euros to support it.
”The programme will ensure as part of its schedule that up to 500 MW of solar photovoltaic electricity would be procured and generated to serve about 100,000 people.
“It will also provide support to renewable energy operators to scale up their electricity provision,” she said.
She added that it was also to support Nigeria’s provision of stable data for electrification planning, sustainable on-grid and off-grid electricity, as well as creating an enabling environment for renewable energy and energy efficiency investments.
Hommers explained that the new financial package would be used in the second phase of the NESP which would last from December 2017 to November 2020.
She stated that the first phase of the NESP was successful and contributed in providing electricity to about 10,000 people in Sokoto, Niger, Ogun, Cross River and Plateau.
The European Union Ambassador to Nigeria and ECOWAS, Ketil Karlsen, stated at the event that studies had shown that Nigeria could generate up to 53,950MW of electricity from solar and hydro sources.
He said there was a need for to ensure that right investments were made in this regards.
Karlsen explained that the success of the first phase of the NESP inspired the EU to continue with its support for the second phase.
He called for a replication of the same expertise that was used in implementing the first phase.

South Africa to raise GDP growth forecast by Oct

The South African government will probably raise projections for economic growth this year in its October mid-term budget as the country overcomes governance and financial problems that have lowered confidence, Finance Minister Nhlanhla Nene said.Image result for south africa ramaphosa
Newly appointed president Cyril Ramaphosa reappointed Nene to the role last month. When former leader Jacob Zuma fired him and replaced him with a little-known lawmaker in 2015, the move triggered a sell-off in the rand and bonds. Policy uncertainty and state graft concerns saw Fitch Ratings Ltd. and S&P Global Ratings lowered their assessments of the nation’s debt to junk. The economy slumped into a recession in 2017 and has mounted a fragile recovery since.
South Africa’s economy is forecast to expand 1.5 percent this year, compared with the previous projection of 1.1 percent and an estimated 1 percent in 2017, National Treasury said in its 2018 budget review on Feb. 21. Growth will probably accelerate to 2.1 percent in 2020 as measures aimed at creating policy certainty and attracting investment pay off, it said.
“Prospects look good for an improvement in growth forecasts,” Nene told reporters east of Pretoria Monday.
The government will from April 1 raise value-added tax for the first time since 1993 as part of measures to stabilize debt and prevent a third junk credit rating. Higher taxes will raise an additional 36 billion rand ($3 billion) in the year through March 2019 and be coupled with budget cuts totaling 85 billion rand over three years.
The funds will go toward plugging a revenue shortfall estimated at 48.2 billion rand for this yea. Concerns about corruption and poor governance, increased tax avoidance and administrative problems at the nation’s tax-collection agency have contributed to revenue shortfalls.
The nation has to demonstrate efficiency in spending to raise tax morality, Nene said. If “resources are spent in a responsible manner, they’re able to make a huge difference in our people’s lives,” he said.

Nigeria's central bank faces hurdles on benchmark interest rate reduction

Nigeria's central bank plans to cut back on benchmark interest by the middle of this year may not materialise against the backdrop of persistent fuel shortages and sticky inflation rate, analysts have predicted.
The Central Bank of Nigeria (CBN) governor, Godwin Emefiele had last month said the regulatory bank may slash its benchmark interest rate downward from the present 14 percent by mid-year provided the country's inflation figure inches down closer to a single digit.
The West African country's inflation is currently at 15.13 percent while the price of domestic fuel consumption has gone up in some part of the country due to persistent shortages.
Also, the expected increase in government spending ahead of the country's general election next year could further boost inflationary trend as injection of huge cash into the system due to political spending could upsets inflattion projection.
“With inflation remaining sticky, it is unlikely that the CBN would want to cut rates so soon,” Gaimin Nonyane, London-based economic-research head at Ecobank Transnational Inc., said in an email to Bloomberg.
Currently, interest rate is negative comparative to inflation rate as and discourage savings and investment in money market instruments, which also have dropped significantly since the government started repaying maturing short-dated treasury bill with proceeds of Eurobond.</div>
<div>Even if the central bank decides to lower interest rate, the regulatory bank would have to cross the hurdle on the road to convey the first meeting of the Monetary Policy Committee (MPC), which has been short of few members to form a quorum.
The National Assembly has refused to confirm President Mohammadu Buhari's nomination into the board of the regulatory bank and MPC due to a lingering face-off between the two arms of government
The MPC has not been able to sit since the beginning of the year and it's not likely to meet this month due to lack of quorum.
Africa’s largest oil producer imports almost all its refined-fuel requirements because local capacity can’t match demand.
While higher crude prices have increased Nigeria’s revenue, they have also raised the cost of processed products, with the average gasoline price surging 27 percent in January from a year earlier. The resultant fuel shortages prompted retailers to increase pump prices above the official cap of 145 naira a liter, adding to inflationary pressures.
“Unless fuel pricing is resolved, bouts of fuel shortages could keep prices sticky, feeding into other items,” said Razia Khan, head of macroeconomic research at Standard Chartered Bank Plc in London.
Price growth might fall further before rising again in the second half because of election spending, Statistician-General Yemi Kale said Feb. 16. Buhari hasn’t declared if he will seek re-election in the planned February 2019 vote but attempts to appease voters may see spending increases.
Capital investments will continue as planned, and that will help the ruling All Progressives Congress win votes, Finance Minister Kemi Adeosun said in a Jan. 23 interviews. There will be no fiscal indiscipline, and no inflation attributed to such spending, she said.
Lawmakers are debating Buhari’s proposal to increase spending plans this year by 16 percent to 8.6 trillion naira, with a focus on increasing investment in roads, rail, and power.
The International Monetary Fund (IMF) forecast gross domestic product (GDP) expansion at 2.1 percent this year, strengthening the recovery in an economy that contracted for the first time in a quarter-century in 2016.
“With oil prices and production outlook appearing positive and with external reserves strengthening, the CBN has greater scope to than a year ago to reduce the policy rate,” Ecobank’s Nonyane said. “However, this would depend on how fast consumer prices fall.”

"We are waiting on National Assembly for 2018 budget," says Osinbajo

Q: The delay in 2018 budget.


Vice President: We have a democracy that has, as you know, three arms. The two relevant arms for budget are the executive and legislature. If you recall when I was Acting President, I signed the 2017 budget and, at that time, I made the announcement with the full consensus of the National Assembly that, from 2018, we are going to have a budget that is going to apply in January and end in December the normal financial year. We agreed that we will submit our proposal in good time, and we did that first week of November. The President did so. We fulfilled that part of the agreement. The budget is with the National Assembly. There is very little we can do to control that. That's the system that we have.
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Q: Seeming rift between the Executive arm of Government and the Legislature.



Vice President: Well, I’m not so sure that the tensions are unknown. The democratic system anywhere as, for example, in the US where we borrow our bicameral legislature from, you find that despite the fact that the Republican Party controls major part of parliament, it still doesn't mean that bills are necessary going to go through.



So one must assume that the responsibility of the National Assembly is to scrutinize what the executive is doing and not just to be a rubber stamp. But I also agree with you entirely that it’s important for us, for the sake of our country, our economy and for the sake of many young people who are relying on us to deliver. We ensured that we released our budget on time. I want to believe that the executive has done its part and we wait on the National Assembly.



Q: On Nigeria’s debt reportedly now being higher than what was inherited by this administration.



Vice President: No, No, I don't think so. First let me explain that we have a government that is very prudent, a government that believes in financial prudence, a government that condemns impunity - the way that the thing was practiced before now, and a government that spends resources on the right thing. For the first time in the history of our country, we are spending about N1.3 trillion on capital; it means that we are investing in the right place. We are not just borrowing money anyhow; no, we are investing in the right place.

Every government or most governments anywhere probably look for some points to borrow, but the important thing is what are you borrowing for? And that's why we building the Lagos-Kano rail, doing the Lagos-Calabar rail, the second Niger Bridge and the Mambilla hydro project that has been abandoned for almost 40 years.



We are improving capacities in power, we are investing in social investment, we are investing long-term in the things that will create an economy that can support a large number of young graduates, who are coming in the market every day. That's a process that needs a lot of thinking; that needs a lot of investment.

I think the most important thing is to ask that when there was a N9 trillion debt, where is the infrastructure to account for that? I think that is the most important question to ask. It's not whether you borrow, but what you spend that money on. I think we should be able to prove that the earning is 60% less than the earning in the past five six years. So we are spending far more on the right thing and we are able to ensure that we build a future that young people can truly look forward to.



Q: What about the 50% revenue reportedly being spent on settling debts?



Vice President: No, we are not spending 50% of our revenue servicing debt. Let me explain that, we have a deficit somehow in the region of about N2.6 trillion now, a lot of our revenue has to be spent on capital and recurrent, and recurrent is 70% of revenue. But for the first time we are spending 30% on capital. Before now when oil was a $115 a barrel, we were spending 11% or 15% on capital, and capital is the most important expenditure because that is where you do the infrastructure in order to be able to build the economy. So the reality is what we are spending is to provide the infrastructure that will last.



Q: On Nigeria’s rating by Transparency International’s Corruption Perception Index.



Vice President: I think that by even Transparency International’s own assessment, Transparency International uses nine different indexes to come to a conclusion. In four out of those indexes, Nigeria moved up, in another four Nigeria stabilized & dropped in only one index. So in aggregation, it (T.I) then decides that it has fallen in certain number of points below where we were.



I think the important thing to bear in mind about Nigeria’s anti-corruption fight is that the government has done what it ought to do by focusing on grand corruption. Grand corruption is the type we experienced years before when, for example, $15 billion was lost in defence contract. Two, three weeks to election, N100 billion in cash was taken out, and again $293 million in cash, two weeks, three weeks to election. That's the kind of impunity. And of course you are also familiar with the scam that went on in the NNPC at the time; the so called statutory contracts, that's grand corruption. That is the corruption that crippled the economy of the country.



Let me tell you very quickly how you can recognize that we have scaled a good deal on grand corruption today: despite the fact that we are earning 60 percent less in revenue, we are actually able to spend more than ever before in the history of this country on infrastructure. In 2017, we spent about N1.3 trillion on capital. That's the highest in the history of the country. So we are able to do far more with far less because we have controlled the impunity that went on, the grand corruption, and all of that.



Now, how does that translate to perception; because grand corruption is a big aspect of corruption. It's a big one because if you cannot control grand corruption, you can't do what you want to do. But then you cannot address the corruption as you go through our airports, our ports or as you go through government offices, in many cases. That's where the whole perception emerges.



We must have a deeper and much wider way of dealing with corruption. How are you going to do that? You must have an efficient way of doing that; like automation, removing discretion from individuals.



Q: What is the institutionalized process of fighting corruption?



Vice President: Institutionalization is not a one-off thing, it's a process, and we are dealing with that, that's exactly what we are doing. For example, the TSA and being able to look at government accounts and all of that is one way of institutionalizing a process by which you can be sure of what people are doing, how this things are happening. The process of allowing the EFCC to do its work without dictation, saying that “look, this what the EFCC is doing”, and giving them every support that you can. These are ways of institutionalizing. And it is that same process that we are taking in the public service - Automation.

For example, look at all that we have done in the ease of doing business. The whole point of doing that is institutionalizing processes, so that when you come into Nigeria you can get your visa after applying online; so that Customs don't have to sit around the airport, that is why we are putting in the I-check and we are putting all sorts of other processes. That is to institutionalize; it's not a one-off process.



Q: What’s the national strategy on anti-corruption?



Vice President: That's a long conversation, but put simply, the national strategy is to ensure that public officers in particular are not able to privatize public finances. And how do we intend to achieve that? We intend to achieve that by ensuring that there is consequence for corruption and also by automating processes, removing discretion from individuals because if you don't remove discretion from individuals the individuals can have discretion as whether or not they will grant certain approvals through certain processes; then you continue to encourage corruption at one level or the other.



Q: Asides from the EFCC, it seems the other anti-corruption agencies such as the ICPC are doing nothing…



Vice President: Well, I don't agree. I think that you will find that alongside the work of the EFCC, in fact one of the critical things we do is, we try and re-direct the ICPC. We appointed the executive secretary of the Presidential Anti-Corruption Advisory Council, PACAC, Prof. Bolaji Owasanoye, to head that body and we believe the ICPC is the important part of the whole fight against corruption. We revamped the leadership of the ICPC. Unfortunately we were stalled because it requires Senate confirmation, that hasn't been done. That is the area of focus for us because the ICPC is supposed to be involved, not just in corruption, but in orientation and re-orientation of the public service. So, it's an important part of our work.



Q: Nigerians in diaspora are one of the biggest foreign exchange contributors of about $20 billion. Aside from having a Special Adviser to the President on Diaspora Affairs, does Nigeria have a Diaspora partnership?



Vice President: I think we've also gone beyond the Office of the Adviser; we now have a Diaspora Commission by law, which I think is a policy step. That Commission will aggregate a lot of the records through data for diaspora in order to encourage the diaspora to interact more with government, with private sector and all that. But don't forget that, with the whole diaspora experience and what is in tune with other nations of the world; the usual focus is on remittances; what are they able to remit as it is pointed out, it is a substantial amount of money. It is something in the region of $20 billion.



But it obviously goes beyond that. In developing the economy we also need diaspora's talent. So we need diaspora in technology, we need diaspora in education, medical practice and all that. The Ministry of Health, for example, actively engaged with the personnel in diaspora for specialists, setting equipment and all of that. But I believe that one of the most critical ways of doing so is through the diaspora commission, ordering it, measuring it; once that is constituted.



Q: Allegations of nepotism against the Buhari administration.



Vice President: Look at the cabinet, for example, from the point of view of the religion, it has an equal number - 18 Christians, 18 Muslims; but, we have the Secretary to the Government of the Federation as well as the Head of Service who are Christians. So we have 20 Christians to 18 Muslims; that's the structure of the cabinet. So if you take that narrative you may argue that perhaps the Christian have the upper hand; that's a possible narrative.



Let us look a little deeper into that, so there are those who may argue, for example, that the north has an upper hand or perhaps one section has an upper hand in the cabinet as one narrative. The South East, for example, has five states. Four of the South Eastern states have senior ministers; all of them, except one, who is Minister of State for Education.



Q: The President has no choice in that, it is a constitutional requirement.



Vice President: In assigning particular portfolios he does. In the north, seven northern states have no senior minister, including the President's home state, Katsina. Now, there are those who will say, if you are nepotistic; surely seven northern states have no senior minister. It's a narrative depending on how you want to run it.



I give you another example; I'm from the South West. There are people who will say “I am from the South West, the North has everything.” The South West, for the first time in the history of this country, has one Minister who is in charge of three ministries: Power, Works and Housing. The Ministers of Finance & Communications are also from the South West. These are critical ministries. You can run the narrative in whichever way that you choose. There are those who will say, for instance, look at the number of CEOs of agencies of government; the highest number of CEOs in our nation today comes from Ogun State, the state has the largest number. There are those who will say that's his state (i.e VP’S State). So you can run the narrative depending on how you want to run it.



The President has admitted that, yes there are situations where you can find certain things as true and he intends to have a look at that. For example, you've given the example of security positions and he said he is going to take a look at look at it. I believe that is the way to go because you can run any narrative that will suit the figures you are showing. And that is where we have legal process. There are people who don't know that the number of CEOs from Anambra State are more than the number of CEOs from Katsina State or anywhere else, except Ogun.



Q: Revamping Nigeria’s education system.


Vice President: If you will recall about a few months ago, I think it was in January, we had an education retreat; what needs to be done again is to unfold a whole direction in education. We came in with a manifesto on education, we had a few points that we were looking at and we also had some time to look at it. But many of us raised the issue that you don't just pick the whole education; what about engineering because what we are seeing is such a dramatic change, not just in method of instruction in the requirement, job requirement, employment requirement, in technology and all of that, and that's exactly what we are trying to do.



For example, we cannot have primary education the way it is, we've got to teach young people, we've got to introduce technology; you've got to have collaboration in education. We discovered, for instance, when we were doing the N-power - employment for young graduates, we discovered that it was also an opportunity to train the graduates. For the first time we were able to open a portal that has educational materials for graduates to just go in there. We also have devices for them to use.




But one important advantage of what we are doing is that all of a sudden, you can now train tens of thousands of people without sitting them in one place. So technology is going to play a role. We are in a very interesting place in terms of education today because you can leverage a great deal on technology. You can leverage a great deal on what is happening in other parts of the world. And we are trying to harness all of those resources and try to do something that will make a difference in our country. Here we are, in another 10 years we will be moving closer and closer to 2050 when we are going to be the 3rd largest population in the world. And there is almost a 70% youth population. We are not going to provide them with the number of classrooms that will be required, so we’ve got to really leverage on technology. We've got to leverage on verified trend that we see here and there.



Q: Abduction of 110 Dapchi girls in Yobe and the killings in states like Benue and Zamfara. Why didn’t the President or you visit these places?



Vice President: Let me say it first that no amount of condolence can compensate for the loss of life, whether in Calabar, Mambilla or Benue or where people were killed in Adamawa or Zamfara, any of these states. There is no amount of condolence that can compensate for the loss of life. Benue killing is one set of killing far too much; there is no amount of condolence that can compensate for that. And I want to say that it's a massive tragedy. But the question that you seem to ask I've been to Zamfara, I've been to Adamawa when this killing took place. There are those who said, ‘oh, why don't you visit the Fulani settlement, why do visit only where Christians were?’ I even visited Benue in September where there have been killing before; then I've visited them when the flooding took place and we looked at all the issues and tried to address many of these. There have been several of these issues in different places, recently Dapchi. We have expressed condolences, but no amount of condolence would do.



The more important thing, and our focus has been, is first of all ensuring security in these places.

We have to address the security question in a much more robust way; that the police are able to do these effectively. We have deployed the military to Kaduna, two battalions to Kaduna. In Benue and Taraba axis, we have the 93 battalion, we have 72 Special Forces. We have full concentration in Taraba and all of that, and by the way, the military is fighting in most of the North East. So there is a situation where the military is overstretched. So I think the most important thing is first of all to ensure they actually address the security of the people.



Q: Nigerians definitely appreciate all you are doing. But they want to see their leaders come to them to grieve with them in the face of national human tragedy...



Vice President: Let me say that I definitely agree with you, the more places that we can go to the better. But I made a point earlier that we also have to address the serious concern that people have. We have to address those concerns; we have to address the rehabilitation concern. I am going round and the President is also going round, there is no question at all and I agree that if we go to all these places it would be so much better.

Nigeria redeems $413 mln T.bill from Eurobond proceeds

Nigeria's Debt Management Office (DMO) said it has paid back 130 billion naira matured treasury bills this week in accordance with its decision to refinance maturing domestic debt with the proceeds of its recently issued Eurobond.
In February, Nigeria raised $2.5 billion Eurobond to help refinance portions of its treasury bill portfolio to lower costs.
The director general of the DMO, Patience Oniha said details of treasury bills issuance calendar for the second quarter of the year will be made available next week to reflect the new plans of the debt office on domestic debt.
Nigeria has a treasury bill portfolio of 2.7 trillion naira. It paid off 198 billion naira worth of bills in December, leading to rates dropping by around 300 basis points.
Yields on short-dated Treasury yields have been falling on expectations that the government will sell less debt at its second quarter auction after it sold the Eurobond. Traders expect rates to fall further after the repayment of the matured bills.
The debt office has been working to lower cost of borrowing by replacing domestic debt with foreign ones, especially now that inflationary figure has started trending downward. The consumer price index fell for the 12th time in a row in January.
This week, the DMO issued about 130 billion naira treasury bills at an auction, short of the 260 billion naira initially proposed with the yield on the lower range of the curve.
Investors demanded as high as 20 percent for the one-year bill which fetched 13.5 percent at the auction. The DMO sold the three-month bill at the lower-end of the curve at 11.85 percent.
Finance Minister Kemi Adeosun last month said the country would redeem 762.5 billion naira worth of treasury bills.