Nigeria's Zenith Bank Eyes Shift to Retail Loans on Oil Risk

Zenith Bank plans to repay its outstanding $500 million Eurobond expected to mature in April, the lender’s chief executive officer has said.
Peter Amangbo told Bloomberg in an interview that the bank does not intend to issue fresh Eurobond going forward due to the limited scope for dollar lending.
“If the opportunity comes, we will go to the market, but now we will pay off that. (Eurobond)”
The Bank had raise $500 million via Eurobond in June 2017 to be used for its general banking purposes. Insiders said the bulk of the fund was disbursed to help oil and gas sector develop capacity.
Zenith is still trying to recover past loans to the oil and gas sector, the CEO said. The industry accounted for 46 percent of non-performing loans in the third quarter of last year, and nearly a third of its total loan book.
“I don’t think there is so much appetite to lend to the oil and gas space,” he said.
He also said the bank, which is the second biggest lender in Africa’s biggest economy would increase its focus on consumer lending as lower oil prices weigh on the economy, hurting its business customers.
Zenith Bank would expand its retail loans as a percentage of total credit to about four percent this year from less than one percent in 2018.
“There is a lot we’re doing on revenue,” Amangbo said. “We expect our retail franchise to grow. Our electronic business, our digital banking is growing.”
Zenith is making the shift as a 30 percent drop in oil prices since October hinders the nation’s main export and foreign-currency earner, damping demand for funding. Nigerian banks are increasingly tapping into digital technology to reach the 50 million unbanked people in a nation of 200 million while protecting their turf from mobile-phone companies -- which have three times as many customers and are bidding to offer money transfers.
The company will probably achieve loan growth of 2 percent to 5 percent in 2019 after missing its target last year, Amangbo said. Customer loans declined by 8 percent in the nine months through September to 2 trillion naira ($5.5 billion).
“We don’t see a very strong growth in the loan book in 2019,” he said. “Demand is still very weak.”

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2019 Election: Distractions not disruptions from elections

Since voting for the next president is due in little more than two weeks, we will try to disentangle some of the muddled views in circulation about the impact of Nigerian elections on the economy. The consensus is that the impact is unremittingly negative and that the investor develops a ‘wait-and-see’ stance on auto-pilot.
One theory in circulation is that the government has no time for any business other than the programme of elections. We would say that a government seeking re-election will be pushing hard on its agenda to soften up the electorate. 

In the current Nigerian context, this means the FGN looking to accelerate its capital releases. Voters who see a new road/school/hospital built in their neighbourhood are more likely to back the incumbent. They will also respond positively if the government, federal or state, settles arrears on salaries and pensions due to family or friends.
Another theory is that existing and potential investors succumb to a state of inertia because they are worried by the “uncertainty” surrounding the elections. The result is uncertain of course but we can say with confidence that, whatever the result, Nigeria should not fear a radical change of direction. In 2015 we had the “change” agenda, and now we have talked of floating the naira and dismembering the NNPC. 

Alongside their negative campaigning and finger-pointing, serious challengers everywhere look to capture the attention of voters with striking policies.
There is a scope on the margins for new policies that can be introduced without the go-ahead from the National Assembly (the equivalent of President Trump’s executive orders). More broadly, the delivery of change is blunted by bureaucratic torpor across the three tiers of government. 

This means that we should limit our expectations of the new government in place at the end of the transition period in May. It works both ways: no fear of change for the worse but equally little hope of a strong market rally like those following the election victories of Lula, now disgraced, in Brazil in 2002 and Mauricio Macri in Argentina in 2015. 

There were very brief, relief rallies after the Nigerian presidential elections of 2011 and 2015.
The outcome to avoid next month is a very close result that is challenged on the streets and in the courts. The presidential term is four years on the US model and the transition period three months. The time for a president and government to make their mark is already limited without such challenges.
The downside from challenges to an election result was evident in Kenya in August 2017. The Supreme Court nullified the presidential election result from earlier in the month. The main opposition candidate, who had cried foul, boycotted the re-run in October, and the incumbent (Uhuru Kenyatta) was declared the winner with 98 per cent of the vote. We cannot say whether a flawed process has any impact on output beyond the very short term but we can say that the developmental capacity of the Kenyan government was weakened for about three months. The stock market saw a sell-off on the intervention of the Supreme Court and has not subsequently recovered (although other factors are also clearly at play).
According to a third theory, the macroeconomy is vulnerable to a slowdown in the run-up to the elections. Our findings suggest that this theory is the result of laziness on the part of analysts, some of whom are looking to create a narrative for their forecasts. (We were taught, in contrast, to construct forecasts on the basis of a tested narrative.) So we looked at historical data for the run-up to the Nigerian presidential elections in April 2007, April 2011 and March 2015.
The series we covered were FGN expenditure, inflation, offshore investment in the stock market and domiciliary bank accounts in Nigeria. We did not find any adverse trends other than a pick-up in FGN spending in the run-up to the 2011 polls, which we can trace to a sizeable increase in the national minimum wage by the Jonathan administration. 

Eight years on, we may well be seeing a repeat (that the FGN insists is incorporated in its 2019 budget proposals).
Our findings indicate that investors could profitably move on from the ‘wait-and-see” stance. They have waited and generally seen little if anything untoward domestically. Foreign portfolio investors have been exiting local debt markets for several months but in response to US monetary policy normalization rather than the Nigerian elections. 

As ever, the domestic events to trigger their exit remain pressure on the naira exchange, public finances and official fx reserves as a result of a steep and sustained decline in oil revenue. This is not our base case expectation.
History does not always repeat itself, and it may be that the lessons we have drawn from 2007, 2011 and 2015, subject to data restrictions, no longer apply. It may also be that the next president is able to push through far-reaching change on taking office in late May. We suggest otherwise.
*Gregory Kronsten
Head, Macroeconomic & Fixed Income Research
FBNQuest

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Coca-Cola Company Assume full ownership of Chivita producer

The Coca-Cola Company on Wednesday announced its acquisition of Chi Limited, a local producer of fruit juice and other beverages, a report by the Cable has shown.

In a statement, Coca-Cola said it has extended its minority investment in the company to full ownership.
In 2016, the company acquired a 40 percent minority stake in Chi and expressed interest in increasing ownership within three years.
“Coca-Cola is continuing to evolve as a total beverage company, and Chi’s diverse range of beverages perfectly complements our existing portfolio, enabling us to accelerate expansion into new categories and grow our business in Africa,” Peter Njonjo, president of the West Africa business unit of Coca-Cola was quoted in the statement.
“We will support the Chi management team in building on the company’s remarkable heritage and achievements while using the scale of the Coca-Cola system to replicate their success in more markets across Africa.”
Chi Limited was founded in Lagos in 1980. It produces juice under the Chivita brand, Caprisonne and value-added dairy under the Hollandia brand.
In a September 2018 interview, Njonjo had said that the company’s drive to diversify its product range would give it some flexibility.
“We realise that in certain pack formats you can only go down so low. But once you start looking at pouches and still products, like juice and drinking yoghurts, that allows you to start accessing much lower price points,” he said.
“Affordability will start becoming a bigger issue in this market than it was in the past. As a company, that is what we need to factor in as we are thinking about the future of our business in Nigeria.”

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Appeal Court Orders Chief Justice Onnoghen To Go Face Trial At CCT

Nigeria's Appeal Court has directed that the embattled Chief Justice Walter Onnoghen should go ahead and face trial before the Code of Conduct Tribunal (CCT), the court declared in a ruling on Wednesday.

President Muhammadu Buhari has last week suspended Onnoghen from office following accusation and charges against the chief justice for his failure to declare his assets as required by the law.
The suspension of the chief justice has generated a lot of reactions both against and support of the president action.

The appeals court in Abuja ruled that Onnoghen can be tried by the CCT over allegations that he broke the law by failing to disclose the full extent of his financial assets.
Onnoghen has not responded publicly to the allegations. The appeals court had originally put the tribunal proceedings on hold indefinitely.
The CCT said on Jan. 12 that Onnoghen would face six counts of alleged non-declaration of assets. The allegations were initially made by an anti-corruption group led by Dennis Aghanya through a petition to the Code of Conduct Bureau (CCB), a body charge to receive declaration form from public officials.

With the appeal court ruling, the case before the CCT will either proceed or be referred on appeal to the supreme court for a final adjudication on the preliminary objections by the counsel to the suspended chief justice. 

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Nigeria To Spend 939.5 billion Naira On Vessels By 2023

Nigeria may require to spend at least $2.59 billion on vessels acquisition in the next four years as experts bemoaned the underperformance of the nation's maritime industry compared with the sector's potentials.

The estimated expenditure on vessels was a product of new forecast released by the Nigerian Maritime Administration and Safety Agency (NIMASA)  on Tuesday. 

The projection, however, represents a decline compared with $3.04 billion said to have been spent on vessels in the last four years.

A breakdown of the outlook for the next four years showed that top five vessels in projected demand between 2019 and 2023, would be tugboats, security patrol vessels, jargon barges, and crew boats, among others. 

Breaking down the expected expenses, it noted that industry’s expenditure on Category 1 vessels would be $1.65 billion or 51 per cent of total spend compared to $1.04 billion or 33 per cent for Category 2 vessels, and $519 million or 16 per cent for Category 3 vessels, totalling $2.588 billion (about N939.5 billion).

The industry had expended $3.04 billion on vessels in the last four years, between 2014-2018, according to the data released by NIMASA.

Between 2014 and 2018, the industry spent $2.21billion on Category 1 of marine vessels representing 73 per cent of total spend. Category 2 was $393 million or 13 per cent, while $437 million or 14 per cent was invested in Category 3 vessels.

The document tagged “Harnessing The Maritime And Shipping Sector For Sustainable Growth,” predicts a brighter future for Nigeria’s maritime sector, with the industry volume expected to grow by 10 per this year, despite prevailing domestic and global conditions. 

However, growth in the industry is hinged on the successful conclusion of the forthcoming general elections, and assurance of security of the environment given that insecurity is a seen as the biggest disincentive to trade and reinforces the need to protect Nigeria’s territorial waters.

Dakuku Peterside, the chief executive of NIMASA said the maritime sector has the potential to contribute at least 10 per cent of Nigeria’s Gross Domestic Product (GDP) in no distant future.
He noted that Nigeria has the biggest market in Africa; and generates about 65 to 76 percent of cargo throughput in West Africa, while 65 percent of all cargo heading for these regions will most likely end up in the Nigerian market.
Peterside said the Cabotage Vessel Financing Fund (CVFF) has not sufficiently addressed the huge finance need of the industry as a result of huge financial outlay required for the industry.

The agency, he said is looking at other Ship Financing Models to encourage the local operators.
“We have been engaging with government at the highest level to push for special intervention fund, special interest rate of single digit, and other incentives that will drive optimal performance in the sector. 

"We shall not relent in our drive to put the right framework together to help beneficiaries and investors have a good return on investment,” he said.

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CBN Injects $210 Mln Into Interbank, Budgetary Allocation Pushes Interest Rate Down

The Central Bank of Nigeria (CBN) sold $210 million on the interbank foreign exchange market on Tuesday just as the injection of 310 billion naira budgetary allocations to states and local governments help boost liquidity in the money market and pushed the cost of borrowing down.
In a statement, the CBN said it released $100 million for the wholesale market, $55 million for the small scale businesses and individual and $55 million for school fees, medical bills and travel expenses.
At the close of trading on the interbank market, Overnight and Open Buy Back (OBB) declined by 648 basis points and 590 basis points respectively on the back of increased liquidity in the system.
Nigeria shares revenue from crude oil export among the three tiers of government - federal, states and local- while the portion due to states and local government pass through the banking system.
At end of business on Tuesday, OBB closed at 10.17 percent while Overnight closed at 10.83 percent.
Traders said interest rate on interbank borrowing is expected to decline to single digits on Wednesday, giving the current liquidity in the market and the absence of Open Market Operations (OMO) by the CBN.
The local currency traded flat at 306.75 to the Dollar at the CBN Official Window, while the NAFEX depreciated by 0.30 naira to close at 362.42 to the dollar.
The demand for funds at the Investors’ & Exporters’ Window exceeded the supply during today's trading session.
The naira depreciated by 0.59 naira to close at 363.34 to the dollar, while transactions were executed as a high as 363.75 to the dollar at the window. On the parallel market, the naira traded flat at 363 to the dollar.

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United capital says 2019 Presidential Election Too Close To Call

The outcome of the forthcoming general election will be the highlight of events in Nigeria and perhaps Africa this year.

Without being oblivious of the fact that elections would be conducted across the three tiers of government, much attention will be on the presidential polls with spotlights on the ruling party’s President Muhammadu Buhari and PDP’s Alhaji Atiku Abubakar as the major gladiators in the race.
If the last two governorship elections in Ekiti and Osun State is anything to go by, there are indications that the 2019 general election may be a very close contest. 

A glance at election results from 1999 to 2015 shows that the PDP’s popularity slumped from an average of 63 percent (1999-2011) to 45 percent in 2015 amid widespread corruption allegations and unprecedented levels of insecurity. 

This gave way for the APC, a coalition of former ACN, ANPP, CPC and some aggrieved members of the PDP (nPDP), in 2015.
On the other side, while the ability of the APC to leverage the power of incumbency in the 2019 election remains at large, we note that recent political developments in the country, notably the defection of key members of the nPDP faction from APC back to PDP, suggests that the outcome of the election is too close to call.

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Lagos Ambode faces impeachment procedure in House of assembly

Akinwunmi Ambode, governor of Lagos State may face impeachment process from the State House of Assembly members all thing being equal due to his perceived breach of the financial regulations of the state.
Members of the Assembly have accused the governor of spending funds which were not appropriated for.
Already, the House has summoned the governor to appear before it within a week and explain reasons why he should not face impeachment procedure over his handling of the 2019 budget proposal which is yet to be laid before the assembly.
The governor aides have claimed that the 2019 budget has been sent to the House since December, this was against the tradition of laying the budget before the House.
At the sitting of the House on Monday, Speaker Mudashiru Obasa, told lawmakers that it was important to give the governor a fair hearing over the issue.
He said the governor’s action was in violation of the constitution.
“The attorney general, finance commissioner and commissioner for budget and economic planning that ought to have advised the governor did not do so.
“The most important thing is that we should let the people know that a budget that has yet to be approved was being spent, which was why we could not attend to the governor on the budget on Monday 21, January.
“We must give them a fair hearing to come and explain what happened.
“The point has been made that there must be something before the House before you can commence expenditure. We want to call on the governor to come within a week to explain himself…”
“We can start gathering signatures for impeachment. We can wait till another time,” he said.
The discussion was sequel to a report presented by the Deputy Speaker of the House, Wasiu Eshinlokun-Sanni, who is the chairman of an ad hoc committee set up to look into the issues surrounding the 2019 budget during a parliamentary meeting of the lawmakers.
The deputy speaker revealed that the committee met with relevant commissioners and heads of agencies which revealed several infractions.
He said the committee discovered that the 2019 Budget was already being implemented by the executive without being laid on the floor of the House. He also noted that 2018 budget, as of the 3rd quarter of 2018 had not performed up to 50 per cent.
Another legislator, Akeem Bello, called on Ambode and his deputy to resign.
Another lawmaker, Dayo Saka-Fafunmi, said, “Public funds do not belong to any of us, it belongs to the people of Lagos State. Section 120 subsection 2 states that no money should be withdrawn from the accounts of the states unless it is approved by the House.
“All the violations amount to gross misconduct. Section 188 subsection defines gross misconduct. We strongly believe that essential services that ought to be met are missing in the state. I am in line with the statement and decisions of the members that if the executive members are not ready for governance, they should resign or should be impeached.”

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Brexit Will Leave The UK 'Unstable' For Decades ~ EU Secret Report

A secret European Union (EU) intelligence report has warned that violence could erupt on the streets of Britain in the wake of Brexit.

According to senior intelligence officials, civil unrest and rioting is almost inevitable and the UK will be left 'unstable' for decades, adding that there will be independence referendums in both Scotland and Northern Ireland within 18 months of the UK leaving the EU.
Leading Brexiteer Jacob Rees-Mogg dismissed the reports and told MailOnline 'it sounds as if EU intelligence is an oxymoron'.
The claims emerged on Monday amid mounting concern at furious pro-Brexit protests in cities including London and Leeds that have seen MPs abused and arrests following scuffles with police.
Health Secretary Matt Hancock on Sunday refused to rule out martial law being imposed after a no deal Brexit - admitting the powers were available amid claims officials have been 'war gaming' the possibility.
An EU source said "Analysis of the threat levels in Britain is being shared at the top of the EU as we formulate policy for the years ahead. The assessment is that violence is almost inevitable no matter what.
"They are worried that if the current deal goes through the right-wing will kick off. If there's no deal everybody will object and kick off. If there's a second referendum, the right will kick off. The right kicking off is causing most concern."
"This analysis is being kept very quiet for ob­­­­vious reasons."
Tory MP Michael Fabricant said 'The EU should not judge the UK by the standards which sadly exist on the continent of Europe.
'We'll just settle down with a cup of tea - from non-EU India.'

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Year 2020 ECOWA Regional Common Currency Date Not Realistic, Economist

The proposed single currency for the West African coast by its members may not be realised by the target date of 2020, an economist has said.
Marcel Okeke, an ex-chief Economist with Zenith Bank Plc, said the single currency proposal for the region comes with some challenges and criteria that many of the member's countries will not be able to meet
Okeke, who is now the Lead Consultant, Mascot Consult Limited noted that the single currency has been on for many years and needs the member countries to attain key milestones for its successful takeoff,.
He spoke at the Finance Correspondents Association of Nigeria (FICAN) 2018 Economic Review and 2019 0utlook held in Lagos at the weekend.
"It is not certain that it will happen in 2020. For instance, a country like Nigeria and other countries must not have inflation rates that are double digits. They must not have exchange rates that move up and down. So, there must be stability in all those indicators across the board. As I stand with you, many member countries have not attained this feat," he said.
He said there are pros and cons for its implementation. "You see, some member countries of the Eurozone are having serious economic problem, which is rubbing off on the rest of the members. That is the type of challenge we might have in ECOWAS and I do not believe that the common currency plan will happen by years 2020," he added.

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AMCON Seeks Exclusion Of Contractors Owing Banks, Taxes From Govt Business

Nigeria’s ‘bad bank’ Assets Management Corporation of Nigeria (AMCON) has recommended that government should bar bank’s debtors and tax evaders from doing business with it.
Ahmed Kuru, chief executive of AMCON seeks resolutions to the huge debt portfolio of the corporation through government intervention.
“Those that are doing big business with government must be made to settle either with AMCON or the Federal Inland Revenue Service (FIRS) because they can’t be owing and still want to do business with the government,” Kuru said.
He spoke at the inauguration of the new board of the corporation led by Muiz Banire by the Minister of Finance, Zainab Shamsuna Ahmed in Abuja.
He suggested that payment to any contractor who is indebted to the corporation should be frozen until such obligations to AMCON were met.
“We know that with the inauguration of this board, things will be more efficient. The turnaround time will be faster. We have been able to recover N1 trillion but we have more than N5 trillion that is outstanding.
“If today, AMCON disposes of all that is in its possession, we may be able to recover maybe N1 trillion.”Nigeria’s ‘bad bank’ Assets Management Corporation of Nigeria (AMCON) has recommended that government should bar bank’s debtors and tax evaders from doing business with it.

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Council of Europe warns Britain sharia law conflicts with universal human rights

The Council of Europe has named Britain in a resolution highlighting how sharia law conflicts with universal human rights.
A measure adopted by the 47-nation body, which oversees the European Convention on Human Rights, raises concerns about the role of sharia councils in family matters.
It also said it was 'greatly concerned' that sharia is applied either officially or unofficially in member states.
According to The Law Society Gazette, the resolution said that in Britain 'sharia councils attempt to provide a form of alternative dispute resolution, whereby members of the Muslim community, sometimes voluntarily, often under considerable social pressure, accept their religious jurisdiction mainly in marital and Islamic divorce issues, but also in matters relating to inheritance and Islamic commercial contracts.'
The resolution, passed at the Parliamentary Assembly of the Council of Europe, also said Muslim couples getting married in the UK should be legally required to civilly register their union before or during the Islamic ceremony.
It raised concerns about the role sharia councils play in the areas of family, inheritance and commercial law.
'The assembly is concerned that the rulings of the Sharia councils clearly discriminate against women in divorce and inheritance cases,' it added.
In February last year, a government-ordered review of Sharia law concluded that Muslim couples should be legally required to have a civil marriage in addition to an Islamic ceremony.
The measure would mean more women had protection under family law and would face 'less discriminatory practices', the independent assessment said.
It would bring Islamic weddings into line with religious Christian and Jewish weddings, the review said.
The Government has refused recommendations that would formalise Sharia councils in Muslim communities.
The report said banning Sharia councils was not 'viable' because they were fulfilling an important role and called for them to be regulated instead.
But ministers have said they will not do anything to formalise a secondary legal system in Britain.
The exact number of Sharia councils operating in England and Wales is unknown but estimates vary from 30 to 85.
The Council of Europe’s new resolution welcomed the 2018 recommendations and called on Britain to ensure councils operate within the law 'especially as it relates to the prohibition of discrimination against women, and respect all procedural rights'.
According to the Independent, a Home Office spokesperson said of the resolution: 'Sharia law does not form any part of the law in England and Wales. Regardless of religious belief, we are all equal before the law. Where Sharia councils exist, they must abide by the law.
'Laws are in place to protect the rights of women and prevent discrimination, and we will work with the appropriate authorities to ensure these laws are being enforced fully and effectively.'
Albania, Azerbaijan and Turkey were also named in in Council of Europe's resolution.
These three countries have all endorsed the 1990 Cairo Declaration on Human Rights in Islam which is a declaration of Human Rights compatible with sharia.
The declaration does not contain a right to freedom of religion. According to sharia, a Muslim does not have the right to change his religion or become an atheist.
This is a key difference from the Human Rights declaration, reports the European Centre for Law and Justice.

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Ghana Seeks $300 Million To Prop Up Loss-Making Cocoa Regulator

Ghana Cocoa Board, which oversees sales and purchases in the world’s second-biggest grower of the chocolate-ingredient, needs 1.1 billion cedis ($223 million) to meet its commitments for the annual season through September, according to a document that was submitted to lawmakers on Dec. 22. The board recorded a shortfall of 2 billion cedis in the previous harvest, it said.
The proceeds of the loan will be used to refinance 1.4 billion cedis in so-called cocoa-bills that were sold in the previous season, some at rates of as much as 18.3 percent, according to the document. 

The board is in talks with a syndicate of lenders including Cooperative Rabobank UA and Societe Generale SA to borrow the money at 295 basis points over Libor, it said.
Ghana’s cocoa regulator is struggling to cover its expenses after keeping farmers’ minimum pay unchanged for three seasons straight, even though prices have declined from highs that were reached mid-2016. While cocoa rebounded in 2018, forecasts of bumper crops from West Africa’s biggest growers have again weighed on prices since the beginning of the year.
The loan will be repaid over three years after a one-year moratorium, according to the document. The board will set aside 50,000 tons of beans per year at a projected price of $2,200 per ton to service the agreement, it said. Futures contracts in London traded at 1,627 pounds ($2,128) per ton at 1:36 p.m. on Friday.
The plan will allow Ghana ‘to prolong the maturity of our debts,” Finance Minister Ken Ofori-Atta said by phone. “We expect this to allow us the fiscal space to develop the cocoa industry.”

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Condemnations Trail Suspension Of Nigeria Chief Justice By Buhari

Opposition political parties have described President Muhammadu Buhari’s suspension of the Chief Justice of Nigeria, Justice Walter Onnoghen, as a coup against the judiciary that must be resisted by all lovers of democracy.
The first national spokesman of the Coalition of United Political Parties, Imo Ugochinyere, said this in a statement made available to journalists in Abuja.
Ugochinyere said Buhari had, by his action, overthrown the constitutional order.
He, therefore, called on the Senate to begin the process of removing the President from office.
He also called on lawyers and others to begin to boycott courts in protest against Onnoghen’s suspension.
The statement read, “Buhari has finally overthrown constitutional governance. This fictionalisation of the judiciary will not stand.
“As far as the law of the land is concerned, Onnoghen remains the CJN. We will not recognise any other person who may be occupying that office illegally.
“Justice Tanko Muhammed is a usurper. The NJC must sack him. Lawyers must ignore him as long as he remains on that seat.
“Onnoghen’s illegal removal was aimed at stopping the swearing-in of members of the 2019 general election petition tribunal.

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Nigeria's Access Bank Shelves Plans To raise Capital

Nigeria’s Access Bank may not need to raise additional capital to meet the Central Bank of Nigeria’s (CBN) minimum capital thresholds.
Chief executive of the lender, Herbert Wigwe has cancelled its initial plans to raise around 75 billion naira through a rights issue to boost its capital.
Access bank, which has called an extraordinary shareholders meeting for March 5, to ratify its scheme of merger with a middle-tier Diamond Bank believed that its present capital is adequate to meet the regulatory requirement.
The bank CEO also revealed plans to fast tract the merger plans with Diamond Bank ahead of the June deadline earlier set.
Last year, Access Bank disclosed plan to merge its operations with Diamond Bank to become Africa’s largest retail lender by customers.
The bank said last week it has obtained approval-in-principle from the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) to go ahead with the merger plan.
Access Bank had planned to $250 million tier 11 capital and 75 billion naira in a rights issue to fully consolidate its hold in the market and provide a buffer for the merged entity.
But Wigwe said the lender has shelf the capital raise plan, which initially was expected to be concluded by June this year.

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Ex-Governor Fayose Left 155.79 Bln Naira Debt For His Successor

It has been revealed that former governor of Ekiti State, Ayodele Fayose left behind 155.76 billion naira debt for his successor to tackle,

According to the new governor of the state, Kayode Fayemi the figures, which encompass the accounts of the state from October 2014 to last October, was arrived by the report of an external auditing firm, PwC engaged to audit the state’s books.

Fayemi, who spoke on the floor of the state house of assembly on his first 100 days in office, said his administration inherited a state that was in chaos and a people severely disoriented under a suppressive government that allegedly raised and promoted deceit into a statecraft.

The breakdown of the debt profile included loan, 57.7 billion naira; salary arrears, 16.77 billion naira; outstanding leave bonus, 4.40 billion naira; outstanding (National Youth Service Corps) Corpers’ allowance, 28.88 million naira; outstanding subvention, 4.77 billion naira; pension and gratuity arrears, 39.77  billion naira and outstanding contractors claims, 28.57 billion naira.

Others include outstanding furniture allowance, 470.27 million naira; outstanding severance allowance, 586.14 million naira; monetised vehicle arrears, 101.24 million naira; outstanding warrants, 386.78 billion naira; outstanding (Federal Inland Revenue Service) FIRS obligation, 184.21 million naira; traditional rulers’ arrears, 150.21 million naira; judgment debts, 95.05 million naira and other outstanding liabilities, 1.79 billion naira.
Fayemi said though his administration had tried to distance itself from political witch- hunt and media trials, he noted that “the fact that the present is the product of the past is incontrovertible”.
“We must examine our tortuous path with a view to charting a new path to economic recovery and value restoration,” the governor stated.

“Despite the meagre resources at our disposal, we are meticulously delivering on our promises to the people through our various short, medium and long-term socio-economic intervention programmes."

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NDIC Remits 7 Bln into Consolidated Account in 2018

The Nigeria Deposit Insurance Corporation (NDIC) has remitted N7billion into Consolidated Revenue Account as its operating surplus for 2018 operations.
Its Managing Director/Chief Executive, Mallam Umar Ibrahim made this disclosure on Thursday in Abuja at the inauguration of newly appointed board of Director of the Corporation by the Minister of Finance Hajiya Zainab Ahmed.
Umar Ibrahim stated the fund, was Corporation’s normal contribution as required by the fiscal responsibility Act.
Before inaugurating the NDIC Board, Minister of Finance Zainab Ahmed urged members of the board “to exhibit high ethical values in the discharge” of their responsibility.
According to her: “You are assuming duty at a time when the Nigerian financial system is still facing some challenges and requires efforts aimed at addressing issues such as corporate governance, high level of non- performing loans etc.
“You are also coming at a time when the system is grappling with the issues related to meeting the target of reducing financial exclusion in Nigeria to about 20 percent by year 2020”.
She added: “The potential benefits and risks associated with the financial technology and block chain technology are also on the front burner.
“These and other challenges can cause threats to the stability of our financial system and must be addressed promptly for the sector to play its role in facilitating the implementation of the Economic Recovery and Growth Plan (ERGP).”
Members of the NDIC board inaugurated on Thursday include Barrister Festus Keyamo, (SAN); Alhaji Garba Bello; Bri-Gen. Josef O. J. Okoloagu; Mustapha Adewale Mudashiru and Mr. Adewale W. Adeleke.
Responding on behalf of the board members, board Chairman, Mrs. Ronke Sokefun, assured the board members would put their wealth of experience gathered over the years to impact positively on the corporation overall mandate.
She assured the Minister and all stakeholders of the Nigeria financial system that they will live up to the responsibility reposed in them by President Muhamnadu Buhari.

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South Africa's Absa says has not Nigeria expansion plan

South African top lender Absa said it has no plan to buy into any Nigerian bank but prefers to gradually build its presence in Africa's biggest economy, its CEO said.

Chief Executive Maria Ramos cleared the air on the lingering question over how it will execute its aggressive growth strategy.

According to Ramos, while Nigeria is a big and exciting banking market, it would build its presence there slowly and organically and did not plan to become a top lender.

“For us to be in the top three or four would mean us going out and acquiring a Nigerian business,” she said on Thursday. “The Nigerian banks are big and expensive and we wouldn’t be looking to do that.”

The World Bank in a report in 2017 put the figure of people who did not have a bank account in Nigeria at 60 million, that is about 30 percent of the country's population estimated at 200 million.

South Africa’s third-biggest lender had not previously been so explicit on its intentions in Nigeria, which is set to become a lively battleground in the fight for Africa’s banking market.

It has highlighted the country as key to its plan to double its share of banking revenues on the continent to 12 percent - one of a series of ambitious targets Absa has set as it tries to carve out a name for itself after separating from Britain’s Barclays in 2017.
On Thursday, however, Ramos was cooler on the potential in Nigeria, described by McKinsey last year as a “sleeping giant” where banking penetration is far lower than expected relative to income levels.
The market was “big and exciting” and remains important, she said, but Absa was concentrating on the “huge amount of opportunity” in its other markets outside South Africa.
While offering huge potential in financial services, which both lenders and African telecoms giants like MTN are looking for ways to tap, entering Nigeria has proven complicated for some foreign firms.

Ramos also said Absa’s strategy elsewhere in Africa would be centred on organic growth rather than acquisitions.

“To go and acquire something has to make a huge amount of sense, it has to be value-accretive,” she said.

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Dangote Cement, GTBank Lift Nigeria's Bourse To Positive Territory

Nigeria's share index gained 0.36 percent on Thursday, lifted by gains in the shares of Dangote Cement and top lender GTBank, data from the Nigerian Stock Exchange shown.

Shares in cement company majorly owned by Africa's richest man Aliko Dangote rose two naira to top gainers' chart, while GTBank share rose by 0.60 naira at the close of market. Dangote Cement closed the day at 192 naira per share while GTBank closed at 33.60 naira a share.

Access Bank, which proposes to merge its operations with middle tier lender Diamond Bank came third on the chart with 0.35 naira gain to close at 6.0 naira.

Access Bank claimed that its proposed merger plans with Diamond Bank will create Africa's largest bank by customer base. The merger is expected to be completed by end of the first quarter of this year.
Top lender, First bank Holdings (FBN Holdings) gained 0.20 naira to close at 7.60 naira while Ikeja Hotel gained 0.15 naira to close at 1.67 naira per share.

The market key index rose by 111.04 points to close at 30,989.60 against 30,878.56 it closed on Wednesday.
The market capitalisation climbed 44 billion naira to close at 11.558 trillion naira, compared with 11.514 trillion naira it closed the previous day.
The market is expected to rally in the medium term, but seeing falling subsequently as investors may likely take profit ahead of next month presidential election.

Nigeria is expected to hold its presidential and senatorial election on February 16, while analysts predicted political risk pushing back the market to negative territory.

Marcel Okeke, a former chief economist at Zenith Bank said political risk could lead to more capital flight from the market as Foreign Portfolio Investors (FPIs) move their funds to developed economies where yields have become attractive.

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Nigeria To Raise 360-440 Bln Naira In 5-, 7-, 10-Year Bonds In Q1

Nigeria plans to issue between 360 billion naira and 440 billion naira in sovereign bonds with maturities ranging between five to 10-year in the first quarter of the year, Debt Management Office (DMO) has said.

The debt office said it will issue between 135 billion naira and 165 billion bonds in January, same amount in February and 90 billion naira and 110 billion naira in March.

In its latest debt issuance calendar posted on its website, the DMO said all the debt instrument are reopening of the previously issued paper.

Nigeria issue bond at an auction every month as part of measure to raise cash to finance a portion of the country's budget deficit, curb inflation and help banks manage their liquidity.

 The five year bond will mature in 2023, seven year paper to mature in 2025 while the 10-year debt will due for redemption in 2028.

Nigeria recently raised 100 billion naira through the Islamic debt note, Sukuk and distributed the proceeds to finance road projects in the six geo-political regions.

Many economists have expressed concerns that the government is over leveraging on debt as a substitute for increasing tax revenue and back up falling incomes from crude oil export. 

Meanwhile, the debt office said it will raise only 150 billion naira at the debt auction slated for January 30, 50 billion naira apiece in the 5-year, 7-year and 10-year maturities.

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Boeing’s Launches Flying Car, Airbus To Build Air Taxis

A Boeing Co. flying car designed to whisk passengers over congested city streets and dodge skyscrapers completed its first test flight on Tuesday, offering a peek into the future of urban transportation the aerospace giant and others are seeking to reshape.

A prototype of its autonomous passenger air vehicle completed a controlled takeoff, hover and landing during the test conducted in Manassas, Virginia, the maker of military and commercial jets said in a statement Wednesday. Propelled by electricity, the model is designed for fully autonomous flight, with a range of as much as 50 miles, Boeing said.
The Chicago-based plane maker and arch rival Airbus SE are among a slew of companies racing to stake a claim on flying cars and parcel-hauling drones, which have the potential to be the next disruption to sweep the aerospace industry. Boeing’s push was boosted by a 2017 acquisition of Aurora Flight Sciences, whose projects include a new flying taxi it is developing with Uber Technologies Inc.
Boeing CEO Sees Air-Taxi Prototype Ready for Takeoff Next Year
Others are also rushing rotorcraft concepts to market. Vahana, the self-piloting air taxi developed by A3, Airbus’s tech-centric Silicon Valley outpost, completed its first test flight last year. Intel Corp. and EHang Inc.are also testing their flying vehicles.
Morgan Stanley analysts, in their most bullish estimates, predict such technology could lead to a $2.9 trillion industry by 2040, while their most pessimistic view pegs the value at about $615 billion.
Boeing’s urban air mobility arm, Boeing NeXt, enlisted Aurora to design and develop the prototype. The company didn’t say if the model is the one being developed for Uber. Boeing NeXt’s portfolio also includes a fully electric cargo air vehicle -- designed to transport as much as 500 pounds -- which completed its first indoor flight last year and is slated for outdoor testing this year.
The Birthplace of the Walkman Wants to Be First in Flying Cars
Future flights of the 30-feet-long and 28-feet-wide PAV prototype will test forward, wing-borne flight and the transition phase between vertical and forward-flight modes, according to the Boeing statement. The company will also continue testing to advance safety and reliability of the aircraft, it said.

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AMCON Plans To Sell Former Skye Bank To New Investor

Nigeria has concluded plans to put for sale former Skye Bank, renamed Polaris Bank last year by Asset Management Corporation of Nigeria (AMCON) after it was taken over by the government-backed corporation.
According to AMCON, Polaris Bank will be sold to new investors after the forthcoming general election in a bid to divest government interest in the financial institution.
Nigeria’s “bad bank” had taken over the lender last year after the bank’s shareholders failed to recapitalize and restructure the troubled lender.
“The election season has slowed down things,” Jude Nwauzor, spokesman for Asset Management Corporation of Nigeria (AMCON) said.
He noted that the corporation is taking stock of the assets of the lender and would call for bids for the company as a prelude to offloading its stake to new core investor.
“We would advertise for expressions of interest from investors after elections and commence the sale process,” Nwauzor said.
Some of Nigeria’s banks have faced tough times since low oil prices put pressure on their business of lending to the oil and gas industry. The country emerged from a recession in 2017 but economic growth remains sluggish and this has weighed on credit growth.
Polaris Bank was a bridge bank set up last year by AMCON to take over the assets of Skye Bank after the Central Bank of Nigeria (CBN) revoked its licence
AMCON has previously sold three other nationalised banks.
The AMCON spokesman said the bad bank was seeking to recover debts owed to Polaris that were non-performing and had asked for proposals on repayment.
AMCON was set up in 2010 to take on non-performing loans from banks as part of the country’s efforts to resolve a financial crisis at that time.

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Nigeria needs to be saved urgently, says Ezekwesili

Nigeria is need of urgent redemption from the present government due to endemic poverty, poor management of the economy and leadership deficit, ex-World Bank Vice President and a candidate in the February 16, the presidential election has said.

Obiageli Ezekwesili said the country is suffering from leadership deficit coupled with incompetence and highly-spirited zeal to loot the nation.
“Nigeria needs to be rescued urgently. What we see in our country is a massive failure of our leaders. Some 60 per cent of our women are poor. There is massive poverty. We have no business being the poverty capital of the world. We must disrupt the current political setup. 

"As a technocrat in government, I served the Nigerian people. I have the competence and capacity to serve Nigerians.
The presidential candidate of ACPN in the forthcoming presidential election said this is a historical moment and urged Nigerians to change the bad narratives about Nigeria. 

"Nigeria needs a leader that truly cares and has the competence. We will mobilise ourselves for the urgent rescue.”
On corruption, Ezekwesili called for a structural change, saying, “As the President of the country, exemplary leadership is key, which will help reduce corruption. There will be structural change like deregulation of the petroleum sector to reduce corruption. Good behaviour will be rewarded, while bad behaviour will be punished.”
Assuring youths of participation and inclusion in policymaking, she said: “We have said it that 50 per cent of our cabinet will be made of young people. We will ensure that our youths are competitive globally.”
Expressing displeasure over the state of education and health in the country, the ACPN presidential candidate said, “Education is currently in a dysfunctional state; based on global factors, I cannot guarantee a particular budget on education. We will work to better the educational system.
“We will expand the National Health Insurance Scheme by ensuring that jobless people also have access to it. Primary health care, secondary health care and tertiary health care will operate on a value chain basis.
“We will fix the learning outcomes in our public schools, which is the quality of the teachers. We will focus on a better remuneration for our teachers and improve the curriculum.
“Education has always been known as a pathway to human progress. Economic and social mobility is possible through education. The early childhood education will be integrated. We will focus on technical and vocational education. We must modernise teaching and equip our teachers.

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Obasanjo Accuses President Buhari Government Of Corrupt, Nepotism

Ex-Nigeria President Olusegun Obasanjo has claimed that many of those in the present government are tainted with corruption and if exposed could end up not only in jail, but they will go to hell.

Obasanjo, a major critic of the present administration accused President Muhammadu Buhari of nepotism and members of his government of corruption. But he could not provide proof of his claims in an interview with BBC Yoruba.

“This is not a prophecy. Those in government today, if we expose them, all of them will enter hell; they will not only go to jail. They will go to hell. Whoever that God does not expose his sins to the public is the person whose secret is kept.”

The ex-president noted that Buhari did not pay attention to the sensitive configuration of the country as a multi-ethnic and multi-region diversity.

According to him, the President gave priorities to his ethnic group when appointing people into sensitive positions.

"“In Nigeria, where we have tribes numbering about 500, you now said you could not trust some people. That is what we are saying," the ex-president lamented.

“Look at what is happening, the person that is leading us says he cannot appoint any other tribes into the posts he considers sensitive because he does not trust them. If he cannot trust my tribe and your tribe what is the benefit? 

"He still wants my tribe and your tribe to vote for him. So, he can ask us to vote for him but he cannot trust us to be appointed into sensitive positions. What is sauce for the goose is also sauce for the gander.
“If you don’t trust us, how do you want me to trust you? If you trust me and I misbehave replace me with another person. But if only your maternal and paternal relatives are the only people you can appoint because they are the only people you can trust…
He also assessed the president performance in the area of the economy, he concluded that the country is worse than his initial assessment of the president ability in 2015.

“Look at our economy, is it the way it should be? Our economy can never develop if foreign investors do not come to invest in the economy. But, as it is, they are not coming into the country and they will never come.”

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Nigeria Approves 27,000 Naira Minimum Wage

The National Council of State on Tuesday endorsed 27,000 naira as new National Minimum Wage, the Minister of Labour and Employment, Chris Ngige, has disclosed
Ngige made this known when he briefed State House correspondents on the outcome of the Council’s meeting which was presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.
The minister revealed that the bill on the new minimum wage of 27,000 naira would be transmitted to the National Assembly in the next 24 hours for passage into law.
According to him the 27,000 is the benchmark for all employers of labour with more than 25 workers on their payroll, emphasising that no employer of labour with more 25 workers should be paid less than the proposed 27,000 naira.
The minister, however, stated that the Federal Government had resolved to pay its workers 30,000 naira as the new national minimum while the State Governments are free to negotiate with their respective staff.
The organised labour had insisted on a 30,000 naira minimum wage as proposed by the Ama Pepple tripartite committee, while the Nigeria Governors Forum (NGF) proposed 24,000 naira.
The reports that the meeting which lasted for about three hours, was attended by Vice-President Yemi Osinbajo, former Presidents Olusegun Obasanjo, Goodluck Jonathan, Abdulsalami Abubakar and the former Head of the Interim Government, Chief Ernest Shonekan.
Others, who attended the meeting included three former Chief Justices of Nigeria, namely; Muhammadu Uwais, Alfa Belgore and Mahmud Mohammed while Chief Justice of Nigeria (CJN), Justice Walter Onnogen, former military President Ibrahim Babangida and Gen. Yakubu Gowon were however absent at the meeting.

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Nigeria says inflation outlook mix in Q1, retains MPR at 14 pct

The Central Bank of Nigeria (CBN) said the outlook for inflation growth remain mix in the first quarter of the year due to spending on political activities, surge in insurgency and herdsmen killing in some part of the north.
The regulatory bank also retained monetary policy rate at 14 percent, saying tightening rate will damping investment and output growth.
The outlook for inflation in the first half of 2019 is mixed, with the expectation of an increase in the near-term before a gradual decline towards the mid- 6 year.
“Inflation is expected to rise marginally amidst palpable tailwinds, which include increased spending preparatory to the 2019 general elections and continued disruptions to the food supply chain in the insurgency prone areas and herdsmen attack regions of the country.
The Committee observed that the near-term risks to inflation remain: the residual impact of flooding on agricultural output, insecurity in parts of the food producing belts of the country, exchange rate pass-through to inflation due to weakening oil price and campaign-related spending towards the 2019 general elections.
The MPC urged the government to sustain its current effort towards improving security to ease the food supply chain bottlenecks.

At the end of its first Monetary Policy Committee (MPC) meeting in 2019, the central bank governor, Godwin Emefiele disclosed that it would soon expand the list of items restricted from accessing foreign exchange on the official window.

He disclosed that once the bank can be ascertained that some of the items can be produced in the country; the CBN will place such items on no valid for forex.
The CBN will get more aggressive and ensure that all food that can be produced in Nigeria will be placed on forex restriction. Importers of such items will not be able to access forex from the official window, Emefiele said.
He also said the telecoms firm MTN has paid the fine imposed on it in lieu of initial directive on the illegally repatriated fund while the term of settlement already lodged with the federal high court.
MTN paid $53 million to settle a money transfer dispute with the bank.
The central bank had ordered MTN and its lenders to bring back a total of $8.1 billion it alleged the company had illegally repatriated using improperly issued paperwork between 2007 and 2008.



Emefiele said the money paid by MTN was a notional sum and that the company has been absolved from any wrongdoing

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Nigeria's forex reserves rise to $43.11 bln by Jan 18

Nigeria’s foreign exchange reserves rose marginally by 0.06 percent to $43.11 billion by January 18, compared with $43.08 billion a month earlier, data from the central bank showed on Tuesday.
The country’s forex buffer also rose 8.0 percent within one year, from $39.92 billion a year ago, but is still far off a peak of $64 billion hit in August 2008.
Accretion to the foreign exchange reserves has been slowed in recent time due to fluctuation in global crude price and falling revenue from the non-oil sector. 

Oil price rose to $62 per barrel on Tuesday from $58 a barrel previously as the Organisation of Petroleum Exporting Countries (OPEC) cut back on output to stabilise prices.
Nigeria depends largely on earnings from oil export to build its forex reserves and finance government budget.
However, huge import bill on gasoline importation, food items and raw materials for manufacturing firms continue to eat up Nigeria’s foreign exchange earnings and erode forex buffer.
The Central Bank of Nigeria (CBN) has continued to inject dollar into the domestic foreign exchange market to steam pressure on the local currency and help stabilize the exchange rate.
The naira closed at 306.8 tto the dollar on the official interbank market on Monday, 362 to the dollar on the parallel market and 362.46 naira at the investor's window.
The local currency has remained relatively stable on all segment of the forex market due to regular dollar sales by the CBN to support the naira.

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United Capital Sees Recovery in Equity Market in 2019

Over 2018, key equity markets in Sub-Saharan Africa (SSA) ended the year in red territory as Foreign Portfolio Investors (FPIs) exited the market following rising rates in developed markets, amid growing uncertainties in the region. 

Election-related concerns spooked FPIs in Nigeria, while underwhelming economic growth weighed on South Africa’s market performance. 

Thus, major benchmark indices in the region ended 2018 broadly negative.
Looking ahead, we believe SSA equities are relatively cheap from a valuation standpoint, with a much lower price multiple after being badly beaten following FPIs exit. 

However, downside risks remain elevated as potential headwinds from changing financial conditions in the global space to higher US Treasury yields, remain a threat to fund flow.
Overall, we expect the equity market to improve relative to 2018 as SSA macro conditions continue on the path of recovery. 

If the recent trend is anything to go by, Ghanaian and Kenyan markets remain our top picks with an expectation to outperform peers, especially given their relatively stable economic and political environment. 

We are also more positive on the South African market than Nigeria’s, considering that the upcoming South African election is expected to be less contentious (ANC is expected to win).

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INEC says not under pressure to rig election

Nigeria's election body, Independent National Electoral Commission ( INEC) is said not under pressure to manipulation the forthcoming general election, its chairman Mahmoud Yakubu has said.

On Sunday, ex-president Olusegun Obasanjo made wide allegations that the electoral body was working in concert with the ruling All Progressive Congress (APC) to manipulate the general election in favour of President Muhammadu Buhari.

The former president said he doubted the ability and integrity of INEC to conduct a free, fair and credible election.

At a meeting with the Acting Inspector-General of Police, Mohammed Adamu, the INEC chief reiterated the commitment of the commission to conduct a credible election.

“This is to be expected in an election year when people make all sorts of insinuations.

“I want to tell you that we as a commission have never been under any pressure to do what is wrong.
“We will never compromise our integrity to do what the law says that we shouldn’t and for the 2019 general elections, I want to assure and reassure Nigerians that votes and nothing but votes will count.
“WIth this level of cooperation from the security agencies, I want to assure you that Nigerians will have a pleasant voting experience in 2019,” he said.
He said that the nation was looking forward to INEC and the Nigeria Police Force to conduct credible elections.
Yakubu said that the media would be provided unimpeded access to the commission during the elections.
He called for a close working relationship between the commission and the police at all levels.
“The more we collaborate with the police, the easier the prosecution of election offenders.
“We are going to consult the security agencies for the deployment of personnel for the elections.
“We must work in partnership to give Nigerians a pleasant election in the upcoming elections, our responsibility is to serve the Nigerian people,” he said.
He urged the police personnel to be on ground early enough to escort officials of the commission to polling units.
Earlier, the Acting IGP said that the Deputy Inspector-General of Police in charge of Force Criminal Intelligence and Investigation Department (FCIID), has been directed to set up a special lectionaries investigation teams.

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Insurance Regulator Sacks Goldlink CEO, Reconstitute Board

The National Insurance Commission (NAICOM) has sacked the managing director of Goldlink Insurance Place, Mrs Funke Moore effective from January 18, and reconstituted the board of the insurance firm.
The commission also approved the appointed of Kenneth Egbaran and the new chief executive officer of Goldlinks to replaced Moore who until her removal was the acting chief executive of the insurance firm.
The industry regulatory also appointed Nahim Ibraheem as the c

hairman of the newly constituted board of the insurance company.
In 2012, the insurance regulator had taken over the management of Goldlink and appointed an interim management board for the company in furtherance of its regulatory oversight function.
Other members of the new board are; Adeyinka Olutungase, Olarenwaju Suliamon, Tonbofa Eva and Farouk Yola.
The commission also last year approved a recapitalisation scheme for the insurance company in a bid to restructure the company and return it to profitability. The company is yet to take any step in the capital raise process.
This would be the umpteenth time the commission would remove the chief executive of the insurance firm and replace with new ones.

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Nigeria's Central Bank Supports Dangote Refinery With 75 Bln Naira Worth In Forex

Nigeria's central bank has supported Dangote Refinery with 75 billion naira worth of foreign exchange to enable the company import equipment and other facilities in a bid to fast track the completion of the projects, the bank governor has said.

Godwin Emefiele said the $9 billion investment by the Dangote group investment in crude oil refining is a reality of an indigenous company’s commitment that is interested in the socio-economic growth of Nigeria.

The Central Bank of Nigeria (CBN) governor spoke while on a facility tour of the refinery project in Lagos on Sunday.
"This has made us to support Dangote Group with N75 billion in Forex to import equipments and other facilities to ease completion of the refinery,” he said.
According to the regulatory bank chief, the refinery project is the kind of investment the country needs to empower Nigerians and boost her revenue.
” I am happy that this project by Dangote Group came up in my lifetime. The Federal Government will continue to support the project and any other projects in the country.
“The ongoing nine-billion-dollar-refinery investment will enjoy our support, no doubt.
” We are doing this to fast-track other importation of equipments you will need for a speedy completion of that project and to encourage other Nigerians to follow your lead,” Emefiele said.
According to him, the tour is necessary to lend our support to this laudable project that will transform Nigeria’s downstream oil sector.
Emefiele said that the CBN would continue to support tremendous and impactful projects that would improve the socio-economic profile of the country through such investments.
He said the diversification of the Dangote Group was worthy of emulation by other industrialists.
“By the time this refinery is completed, it will not only service the needs of our domestic economy but shore up our international oil investments.
“Projects like this and our support will encourage more Nigerians to begin to think like the Dangote Group,” he added
Emefiele commended Africa's richest man,, Aliko Dangote for his resilience and dedication to create wealth.
“It may interest you to know that we always expend one-third of our total foreign exchange obligation to import petroleum products.
“When the fertilizer plant will commence operation between April and May this year and the Refinery commences operation in April 2020, we will have a lot of savings from foreign exchange.
” In near future, we may be buying foreign exchange from the Dangote Group ,” he said.
Emefiele urged other private refinery licensees to develop capacity to build more refineries.
“I have not seen any licensee approach the bank for credit to build refinery.
” Remember, such licensee will approach his bank which will, in turn, assess his capacity to build such refinery and such request will be forwarded to the CBN for approval.
” If they have the capacity, we will support them through their banks,” Emefiele said.
In his remarks, Dangote commended the CBN for their support and for believing in the project.
He said that the largest single train refinery in the world, Dangote Refinery, would commence operations in April 2020.
Dangote said that the construction of the refinery that would be producing 650,000 barrels of crude oil per day by the Dangote Group was expected to help Nigeria save over $7.5 billion through import substitution.
He said that it would also put the country on the global map as a major oil and gas hub in Africa.
He said that the Dangote Refinery, therefore, would help the government create a robust domestic refining sector.
Dangote said that it would reduce the importation of petroleum products and save the country from capital flight.
“The refinery is going to save a huge amount of foreign exchange outflow because, today, forex is being used in the importation of petroleum products and our foreign reserves are being heavily depleted.
“And whatever little forex we are earning from the sale of crude oil, is being used to import petroleum products.
“Our petroleum refinery is going to have a major beneficial impact on the economy in terms of foreign exchange savings,” he said.
Dangote expects the company when it becomes operational to generate $5.5 billion in revenue from exports of refined petroleum products, fertiliser and petrochemical products.
Dangote said: “We will be adding value to our economy as all these projects are currently creating about 26,000 employment opportunities. The company is also expected to create about 80,000 employment opportunities.

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Mobile Phone Active Subscribers In Nigeria Rise To 172 Mln ~NCC

Active telecommunications subscribers in Nigeria rose to 172.88 million by the end of December last year, from 169.11 million in the previous month, the industry regulator said on Saturday.

According to the latest data from the Nigerian Communications Commission (NCC), active subscribers increased by 3,766,264 within the period under review.

The number of subscribers to telephone network also known as Global System for Mobile Communications (GSM) network services stood at 172.48 million. 

The GSM operators’ active customers’ figure increased by 3,756,800 in December, after the 168,729,005 subscribers recorded in November.
MTN Nigeria, a local unit of South Africa's telecoms giant remain the leader in the local market with a total of 67.13 million subscribers in December, an increase of 158.02 million from the 66.97 million in November.
Telecoms firm majorly owned by Africa's second richest man, Mike Adenuga, Globacom came second in the market share with the number of subscribers increased in December by 1.98 million, to 43.27 million in November.
The local unit of Indian telecoms carrier Bharti Airtel, had 44.18 million subscribers in the month under review, which showed an increase of 1.06 million users, from the 43.12 million it recorded in November.

9mobile recorded 15.92 million in December, with an increase of 555,344 subscribers over one month period.

The Code Division Multiple Access (CDMA) operators recorded 124,092 subscribers in the month under review, indicating a decrease of 723, from 124,815 users in November.
Visafone which is one of the two surviving CDMA operators had 119,632 customers, showing a decrease of 723 from the 120,355 recorded in November.
On the other hand, Multi-Links had 4,460 in the month under review, same with the record of November.
The monthly subscriber/operator data showed that the Fixed Wireless network (landline) consumers remained at 26,865 in December.
One of the two landline networks, Visafone had 26,437 subscribers, while Multi-Links maintained its record of 428 customers in the month under review.
It also revealed that the Fixed Wired operators (landline) subscriber base increased by 4,795 coming up to 113,626 users in December, as against 108,831 recorded in November.
In the Fixed Wired arena, MTN Fixed moved from 5,499 users in November to 5,450 users in December, thereby decreasing by 49 customers.

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Nigeria's NNPC paid $993.7 mln cash call arrears by September

Nigerian National Petroleum Corporation (NNPC)  is behind in cash calls payment to its joint ventures with multinational oil companies by $3.95 billion, the corporation spokesman said.

The oil giant said it paid $993.7 million part of the arrears owed its joint partners up till September last year, but outstanding debt remains huge.
As part of measures to off-set the balance owed its partners, it plans to raise about $2.3 billion in financing from third parties to help cover the costs.

NNPC also said it was raising $3.15 billion through a firm called SEEPCO to develop 416 million barrels of reserves from the Oil Mining Licence (OML) 13 field.
NNPC has over the years piled up unpaid bills, so-called cash calls, that it was obliged to pay Western firms with which it has joint ventures for oil exploration and production.
The delay in payments has hindered oil and gas investment in the OPEC state and worsened a budget crisis as the government seeks to increase spending to boost an economy still recovering from a recession.
Minister of State for Petroleum Emmanuel Kachikwu said this month Nigeria was producing 1.78 million bpd.
In November, NNPC said it would increase oil production in 2019 to 1.8 million barrels per day (bpd). At that time it was producing roughly 1.6 million bpd.

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Nigeria's Access Bank Seeks CBN, SEC Approval To Raise 15 bln naira Green Bond

Nigeria's Access Bank said it has applied to both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for regulatory approval to issue 15 billion naira Green bond.

According to a letter to the Nigerian Stock Exchange, Access Bank said it has however yet to get any approval from the two regulators on the proposed bond issuance.
The letter signed by Sunday Ekowuch, company secretary, the bank has not taken any decision regarding the launch of the bond.
The bank said it will evaluate the market and take a decision on the bond issuance as soon as it receives approval from the regulators.

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Ex Nigeria's SEC Chief Oteh Joins Ecobank Board As Director

Former Securities and Exchange Commission (SEC) director general and immediate past treasurer of the World Bank, Arunma Oteh has been appointed to the board of Pan-African banking group Ecobank Transnational Incorporated (ETI).
Oteh, who was until last year was a vice president with the World Bank joined the board of the bank as a non-executive director.
She was Treasurer of the World Bank from 2015 to 2018 where she led a team that managed the Bank’s $200 billion debt portfolio as well as an asset portfolio of $200 billion for the global financial institution and 65 central banks and other public sector clients.
Oteh recently joined Oxford University as an Academic Scholar at St. Antony’s College and an Executive-in-Residence at SAID Business School.
Her research areas of focus are capital markets, development and financial technology.
Oteh holds a Masters degree in Business Administration from Harvard Business School and a First Class Honors Bachelor of Science Degree from the University of Nigeria, Nsukka.

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I’m the only one that can fix Nigeria, says Ezekwesili

Presidential candidate of Allied Congress Party of Nigeria ( ACPN ), Obiageli Ezekwesili on Thursday said she is eminently qualified to lead Nigeria to the Promised Land.

She lamented Nigeria has over the years lack quality leadership that can take the country to where it ought to be in the comity of nations.
Addressing a group of artisans, youths, students, people with disabilities and some market women at popular Arewa House, Kaduna, the former Education Minister said she was the only candidate with the capacity and competency to deliver the country from its complex problems.
She said: “We have lacked quality leadership in Nigeria. It doesn’t matter that all those that have governed us are men. It doesn’t make any difference in quality of life of Nigerian persons.
“I am that candidate with competence and capacity to solve the complex problems that seem to have eluded us for so long.
“We cannot afford to have many more millions of Nigerians to join more than 87 million that are already poor.
“Therefore, anyone who is thinking of me being a woman has not come in term with other Nigerians I have interacted with in the course of our campaign. They have always saying Oby is the candidate we can trust.”
She added: “When you are tired of mediocrity, the only person you can think of is Oby Ezekwesili, who is offering herself to lead.
“The reason is simple. I have always been known in this society as one who has a strong voice for the fact that Nigeria can be better than it is now.
“Nigeria has no reason to be a failure and that is why I am running in this election.”
Asked if she was not happy with the current government because she was not given political appointment, she said: “I rejected to be a minister many times since I was a minister in this country. I don’t need to be a minister.
“What I need is that this society must be mobilised immediately to see how we can come out of the whole failure and incompetence they have thrown us into.”

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Atiku Confirms Arrival In America, To Meet Government Officials

Presidential candidate of main opposition People's Democratic Party (PDP) Atiku Abubakar has confirmed his arrival in the United States (US).
In a post on Twitter, he said: “Just arrived Washington D.C for meeting with US government officials, Nigerians living in D.C metropolis and the business community. -AA”, with a photograph, showing him clutching a bouquet of flowers, along with Senate President Bukola Saraki and a lady.
The Embassy of Nigeria in Washington, DC, had said it was not sure if the former Vice-President would be visiting the United States any moment soon.
A competent source at the embassy told the News Agency of Nigeria (NAN) that the embassy was yet to get official information about the former vice president.
Atiku was being rumoured to have arrived in the United States on Thursday night. Some other reports said he was on his way.
The embassy source, however, said the embassy was still awaiting official communication to that effect.
“Actually, we have not received any information for the embassy but we are just trying to find out whether really he is coming. That is what we are doing right now.
“They told us he’s coming tonight, today, so we are trying to find out whether he’s really coming.
“Mr (Peter) Obi, (Atiku’s running mate), he was to come last week but the event was cancelled.
“So we are still trying to see but if you get anything, please just let us know also because they said he’s coming here so that if you’re able to get any updated information, just inform us so that we can prepare vehicles to go to the airport and meet him and all that.
“For now, we have no information. If I am able to confirm anything, I will get back to you and please, if you too get any confirmation or any update, just get back to me, just call me.
“As a former Vice President, the Embassy is supposed to organise to receive him at the airport and all that, but then we have not received anything in that regards,” the source said.
Obi was billed to be in the U.S. last week and was scheduled to have a New Jersey/New York Townhall but the event was postponed.
The PDP vice-presidential candidate is now rescheduled for the New/Jersey/New York USA Town Hall Meeting at Robert Treat Best Western Hotel, New Jersey on Monday, January 21.
The clarification from the embassy came as online reports said Atiku has either landed in the US or has taken off from Nigeria to address the US Chamber of Commerce on Friday, from 2:30pm to 4pm local time.
The Cable claimed that Atiku secretly flew out from Lagos on Wednesday night with most of his aides and associates taken unawares.
He was scheduled to be in Ogun state on Thursday morning but the event was cancelled, it said.
Atiku was said to have been issued last December with a US visa for the first time in 13 years. The visa was reportedly facilitated by his former boss, President Olusegun Obasanjo, a former foe, turned campaign endorser.
But reports said Atiku sensed the visa could be a trap by the Americans and thus asked for a guarantee from the US government that he would not be arrested over a case of money laundering, for which there were reports of a sealed indictment by the US Justice Department.
In another case, former congressman William Jefferson was jailed for 13 years for accepting a bribe from an investor, Lori Mody, who was wearing a wire.

Jefferson told the investor that he would need to give then Nigerian Vice President Atiku Abubakar $500,000 “as a motivating factor” to make sure the company obtained contracts for iGate and Mody’s company in Nigeria.
But Daily Trust, quoting Atiku’s Special Adviser on Media, Paul Ibe debunked the report of Atiku travelling to the United States.
Ibe told Daily Trust via a telephone chat Thursday afternoon that online reports which stated that Atiku had travelled to the US were a figment of the imagination of the authors.
“You know what the social media can do. You know the social media for what they are now. It is not true. His Excellency hasn’t gone anywhere,” he said.

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Nigeria Feb Election; Buhari, Atiku are not most qualified, but top contenders

Oludare Mayowa

Wednesday, January 16 was a very busy day for Journalists in Nigeria, especially those who are paid to follow the trend in the political circle. The social media was also not left out of the flurry of activities around the key political figures jostling for attention ahead of the February 16, presidential election.
It was the day President Muhammadu Buhari, the candidate of the ruling All Progressive Congress (APC) was selected to appear before a live television audience which was beam live to millions of viewers in what the organisers said was a town hall meeting with presidential candidates and their running mates.
In Lagos, the candidate of the main opposition party, People’s Democratic Party (PDP), Atiku Abubakar equally was hosted to an event coordinated by the Organized Private Sector (OPS).
The two top candidates were in the companies of their top aides and supporters at the two separate gathering to cheer them up.
At the Abuja town hall live television show, candidate Buhari was busy dogging questions from kadaria Ahmed, the host of the programme and at some point his deputy Professor Yemi Osibanjo has to interpret or rather break down the questions to enable his principal effectively digest it. Even with that, the president was unable to decipher meaning out of many of the questions asked him by the host; he was mostly off the range.
Buhari refused to answer question on his next move concerning his most trumpeted anti-corruption campaign, he was most of the time off-key when asked what he would do differently in the fight against corruption if he was elected again.
The best the president could mutter was to go into how difficult it has been to prosecute the war against corruption due to lengthy legal procedure, resistance from the accused, etc.
He evaded the question on what he will do if he lose the forthcoming election, he rather preferred to inundate the audience with the story of the previous loses and how he went to court to challenge the result of past elections.
He was also not forthcoming on the question on his state of health and his capacity to continue in office due to his well known health challenges.
During the interview session, the president came on as someone who was tired, that could be understandable considering his age and combining the rigour of running the country with ongoing electioneering. How do someone explain away his illogical responses to many of the questions asked by the host.
Overall, the president appear not to remember many things, even with the help of his deputy, he was far from being articulate on many of the issues raised by the host at the town hall meeting.
If the live television broadcast were to be a job interview for the country’s chief executive officer, our president will not only have lost his chance to complete his tenure but would have been denied any opportunity to get a fresh mandate to continue in office.
No reasonable member of panel of interviewer would have offered him a second chance at the job from the appraisal of his past performance and prospect of the next four years.
If I was a member of such panel, my verdict would have been; “Mr President Thanks for coming, but you needs to go home and rest in the company of your children and grandchildren, you really deserve it.” .
However, the candidate of the main opposition party, Atiku Abubakar has remained the more vibrant of the two top contenders to the position of Nigeria CEO. His speeches were well delivered; his position on many issues was articulated and well passed on.
At the Lagos event, he reiterated his position that he would privatise the country’s oil behemoth, the Nigeria National Petroleum Corporation (NNPC). He was also bullish on his determination to restructure the country and other sundry issues.
The turn off of his response to many of the issues raised at the event was his blatant claimed that he will enrich his friends and not family under the privatization programme as long as it is not done under any corruption tendency. He asked his audience if his friends are not qualified to be enriched.
Atiku, as he is fondly called by his supporters simply confirmed the damning verdict on him by the global political analysts and consultancy group Eurasia on his tendency for corrupt enrichment of self, family and friends.
In its report on the forthcoming general election, Eurasia described Atiku as “another gerontocrat who would focus on enriching himself and his cronies, avoiding the difficult and politically unpopular tasks necessary for reform.”
The same Eurasia equally described President Buhari as “an elderly, infirm leader who lacks the energy, creativity, or political savvy to move the needle on Nigeria’s most intractable problems.”
Atiku who is banking largely on his promise to restructure the country to gain the votes of the electorate in the southern part of the country is mostly seen as merely playing to the gallery so as to win the heart of the core southerners who have chosen restructuring theme as their major bargaining issue.
Atiku may have warmed himself to the heart of some of the private sector operators with the way he attended to the issues of multiplicity of exchange rates, which is one of the major banes of the slow growth in the economy.
Also with his promise to reduce the size of government and promote private sector driven economy, some people within his audience may have also decided to give him an average mark for his performance at the event.
Going by this presumptuous average score if the event in Lagos was to be an interview to select a chief executive for the country, Atiku would perhaps be smiling home by now as the possible candidate for the post in view of the fact that he outpaced his major contender, Buhari.
However, the snag is that both Buhari and Atiku are just two out of many candidates jostling for the position of the chief executive of the country; so narrowing the choice down to the two of them was a misnomer and should not be allowed to continue to fly.
The two candidates are the least qualified in terms of academic, records of performance and proposal to turn around the wheel of the country’s economy so far made to the electorate or interviewers as the case may be.
Although the two main contenders score higher in terms of followership, ability to induce those who will decide their fate and experience on the job assessment; nonetheless, they failed woefully using other parameters to judge them.
Other candidates lining up for the top job include; former vice president of the World Bank and a minister in the regime of ex-president Olusegun Obasanjo, Oby Ezekwesili, a former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Morghalu, publisher of the raving online news, Sahara Reporter and a former student activist Omoyele Sowore and a motivational speaker and entrepreneur, Fela Durotoye, among the scores.
As it is today, a leader that Nigeria needs is the one who is knowledgeable about the economy and understand what should be done to revive the floundering ship of the nation.
Nigeria definitely needs a young, very agile and intelligent chief executive officer who will not be encumbered bypass misdeed, have less garbage and have the flexibility to adapt fresh method to tackle the many challenges facing the country.
Nigeria requires the service of a CEO who will be creative, innovative and not bug down by loyalty to primordial tendency, someone who could empathise with the yearnings of the majority of Nigerians irrespective of tribe, religion and political affiliation.
Nigeria needs someone who will be bold enough to confront the behemoth of corruption irrespective of whose horse is goaded and with the capacity to break the shackles of oligarchy dominating every facet of the economy.
If I was to be a member of the panel interviewing candidates for the position of the chief executive officer for the country, both Buhari and Atiku will not have any opportunity to proceed further beyond the campaign period. I would have long bided them out of the boardroom in preference for one of the egg heads who have demonstrated capability within their field of endeavors.
For Atiku, the testimonial of his former boss, ex president Obasanjo on his corruption tendency, his divisiveness and his inability to rein his cronies’ appetite for dipping their hands in our commonwealth is sufficient to disqualify him.
On the part of Buhari, his abysmal performance in the more than three and half years he has been in the saddle is enough evidence that he lacks the right skill to direct the ship of the country.
Unfortunately, Nigeria is not a progressive-minded country; many members of the panel of interview, of whom I am one, are not sensitive to good quality but are rather driven by sentiment and affiliation to other unimportant parameters than the best for the country.
Many members of the panel; the electorate are focused more on appeal to their political orientation, who is more aligned to their godfathers and who could perhaps pay more attention to line their pocket than the other. It is almost certain that both Buhari and Atiku are likely going to be the predominant choice for the job and one of the two is on his way to grab the job and be on the driver seat for the next four years at the end of the contest.
Those who are parading more quality credentials and possibly the energy and capability to be in the driver seat may not and never get there with the way our politics is structured unless there is a miracle soon.
* Mayowa is a Lagos Based international financial journalist

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