Judiciary Must Help AMCON Recover N5trillion Bad Debt

The successful recovery of the debt owed the country's 'bad bank' would depend on the cooperation and support from received by the corporation from sister agencies as well as critical stakeholders especially the judiciary, Chief Judge if the Federal High Court has said.

Justice A.A. Kafarati stated this at an annual seminar for Hon. Judges of the Federal High Court
organised by the Asset Management Corporation of Nigeria (AMCON).
“The success of AMCON therefore in the discharge of its mandates would, to a large extent be enhanced if other safety net players and stakeholders, which include the judiciary would effectively play their respective roles.
"I am particularly pleased that AMCON has recognised the judiciary as an important stakeholder, which has a critical role to play in the sustenance of financial integrity in Nigeria,” Justice Kafarat said.
Justice Kafarat was represented at the event by Justice J.T. Tsoho.
He said the federal high court should actually do more to support AMCON recovery drive since the court has the unique constitutional responsibility and exclusive jurisdiction in respect of all AMCON matters.
AMCON is currently saddled with the responsibility of recovering over 5 trillion naira owed it by recalcitrant obligors.
The management of AMCON is determined to get debtors to repay their debt as the sunset date of the corporation draws even closer.
The development has led the management of AMCON led by Ahmed Lawan Kuru, Managing Director/CEO to switch its recovery strategy to more of enforcement.
Kuru in his remark told the judges that AMCON had always emphasised that the huge portfolio of debt owed the corporation was not the problem of the 'bad bank' but a national debt, which if allowed to crystalize will portend serious negative economic and social consequences for the entire nation.
He said AMCON is constantly under the observation of international monetary institutions and have entertained visits and inquiries from the World Bank and the International Monetary Fund (IMF) with respect to our strategies for resolving the over N5trillion or $14billion USD debt.
“In April this year, the IMF released its Country Report No. 19/92 where it recognized the Central Bank of Nigeria (CBN) as AMCON’s main creditor and that the AMCON debt creates additional contingent liabilities for the federal government. This underscores the need for a serious concerted effort by all relevant stakeholders, especially the judiciary towards achieving the most effective loan workout option.
“As part of our renewed strategy for recovery, AMCON is focusing more on enforcement. It has become clear to us that in order to attain the target as we approach sunset of 2024, we must redouble our efforts in the area of recovery.
"The AMCON Act anticipated a situation where we may need to enforce if negotiations fail. Negotiations have failed us, given our sun set date. It is also clear to us that we cannot go very far without the strong support of the judiciary. My Lords would have noticed that the volume of AMCON cases have grown since June/July 2018.
“At this stage of our recovery efforts, given our experience with the traditional litigation system, it has become imperative to consider other dispute resolution mechanisms, giving the slow pace of litigation, obligors’ propensity to hide under technicalities, and AMCON’s sunset timeline,” Kuru stated.

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Made-in-Africa Key To Success Of Free-Trade Deal, Says Buhari

President Mohammadu Buhari has said for the continental trade agreement to succeed, African nations must develop policies that promote African production, among other benefits.
Buhari noted that the success of the Africa Continental Free Trade Area (AfCFTA) deal hinges on Africa developing its manufacturing base.
The AfCFTA agreement will only succeed if the continent develops policies that promote production, he said while receiving the report of a committee set up to consider whether the country should join the trade pact.
The African Union Heads of States had on March 21, 2018 adopted the Phase I Agreement on the AfCFTA at its 10th Extraordinary Summit in Kigali, Rwanda.
Nigeria is one of 29 countries yet to sign the agreement seeking to boost intra-African trade, stimulate investment and innovation.
But President Buhari said Nigeria will not rush into joining the Africa Continental Free Trade Area until it finishes extensive consultations with all stakeholders.
He, however, observed the AfCFTA will have both positive and negative effects on Nigeria as a nation and the West African sub-region.
“A lot has been said about Nigeria’s decision to conduct a detailed study on how this agreement will impact us as a country.
“Let me state unequivocally that trade is important for us as a nation and to all nations. Economic progress is what makes the world go around.
“Our position is very simple, we support free trade as long as it is fair and conducted on an equitable basis.
The AfCFTA will have both positive and negative effects on us as a nation and on our region.
“As Africa’s largest economy and most populous country, we cannot afford to rush into such agreements without full and proper consultation with all stakeholders.’’
“Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda. Our vision for intra-African trade is for the free movement of “made in Africa goods”.
“That is, goods and services made locally with dominant African content in terms of raw materials and value addition.
“If we allow unbridled imports to continue, it will dominate our trade. The implication of this, is that coastal importing nations will prosper while landlocked nations will continue to suffer and depend on aid,’’ he added.
President Buhari, therefore, stressed the need to always ensure that all negotiated agreements create business opportunities for Africa’s manufacturers, service providers and innovators.
“The AfCFTA we aspire to have should therefore not only create wealth for investors but also jobs and prosperity for our vibrant and hardworking citizens. The benefits of economic growth must be prosperity for the masses.
“Africa needs not only a trade policy, but also a continental manufacturing agenda,” Buhari said. “Our vision for intra-African trade is for the free movement of made-in-Africa goods. That is, goods and services made locally with dominant African content in terms of raw materials and value addition.”
The trade area should not only create wealth for investors, but also prosperity for Africans, Buhari said.
“The benefits of economic growth must be prosperity for the masses,” he said.

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NCC Warns Telecoms Firms Against Disclosing Customers' Data

Nigeria's telecoms industry regulator has said that it is unlawful for operators to disclose the database of subscribers on their network to anyone without permission.

Umar Danbatta, Executive Vice Chairman, Nigerian Communications Commission (NCC) said such practice is illegal and subscribers should escalate such matter to the attention of the regulator for necessary action.
“It is wrong for telecommunications operators to disclose any data of subscribers on their network without permission. It is unlawful.
“If such instances take place, then the subscriber in question can escalate this matter to the NCC and we will investigate and establish whether that is the case and take necessary regulatory measures.
“The database of subscribers with network operators is not supposed to be disclosed to anyone.
“It can be done lawfully with interception project in place where such data can be acquired in the interest of security of the nation.
“We must try to ensure the security and privacy of all subscribers on the telecommunication networks, that is the only way we can instill confidence in subscribers and other Nigerians (who) patronise telecommunications service,” he said.
Danbatta, spoke at the Telecom Consumer Parliament with the theme: “Challenges to Cybercrime: The Role of Telecom Service Providers ” on Thursday in Abuja.
He said cybercrime had become pervasive in the country, adding that every consumer should be protected, except in exceptional cases and that it should be with the permission of the security authorities.
He, however, said operators had been encouraged to embark on the know-your-customer programme as it was very important for customers to be enlightened on what to do when challenges surfaced.
According to Danbatta, at the national level, we have the Nigerian Computer Response Team that is domiciled in the office of the National Security Adviser and put in place in order to secure the Nigerian cyberspace by keeping cyber attacks at bay.
“The strategies that we are recommending are strategies that are easily implantable; they are strategies that will assist citizens on what to do to protect themselves from cyber attacks.
“People, who commit these kinds of crimes take their identities. There is the need to continue to change usernames as well as some authentication that will ensure the security of data,” he said.

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Uber Plans to Provide Boat Service In Lagos, Expands Operations To Other W/African Countries

Global ride-hailing firm Uber Technologies Inc is in talks with regulators over plans to expand into two West African countries and provide a boat service in Nigerian megacity Lagos, a company executive said on Thursday.

In much of sub-Saharan Africa there are low levels of personal car ownership, rapidly expanding populations and a lack of efficient mass transport systems in fast-growing cities.
Uber, which said it has 36,000 active drivers in sub-Saharan Africa, operates in a number of countries in East and South Africa but is largely absent from West Africa, aside from Nigeria and Ghana.
The firm has identified the region as a target for potential expansion, Chief Business Officer Brooks Entwistle told Reuters. He said the company was in talks with regulators in Ivory Coast and Senegal regarding the possible launch of services.
“Both Abidjan and Dakar are logical opportunities for us,” said Entwistle, adding that discussions were at an early stage. He did not disclose further details.
“We have talked about West Africa today as being a big growth priority for us and launch priority for us moving forward,” said Entwistle.
Ivory Coast and Senegal have two of the world’s fastest growing economies, according to the International Monetary Fund. Nigeria, Africa’s largest economy, is also the continent’s most populous nation.
A number of motorcycle ride-hailing firms have also targeted West Africa as an area for expansion in the last few months.
Nigeria’s commercial capital Lagos, a megacity of around 20 million inhabitants built on a lagoon where Uber began operating in July 2014, is beset by heavy congestion.
Entwistle, who spoke to Reuters during an interview in Lagos, said the company was in talks with state regulators about providing a transport system on the city’s waterways as a way of bypassing its choked roads.
“We are looking at the waterways here, which are very interesting to us as it relates to a potential service,” said Entwistle.
The company has launched a boat service in the Indian city of Mumbai in the last few months.
“We did launch Uber Boat in Mumbai and we have watched the product develop. It’s in its early stages and we think there is high relevance here,” he said, referring to Lagos.
The Uber executive, who described Lagos as “one of the great growth opportunity cities in the world”, said the company has also held discussions with a bus firm and regulators in the city.
He said the talks were in line with a global push by the company to develop products that can work alongside public transit systems.
Entwistle said the combination of population growth and congestion made Lagos, and other cities in the region, attractive.
The United Nations predicts that Nigeria’s population will more than double to 400 million by 2050, which would make it the third most populous country in the world after China and India.
Uber faces stiff competition in African cities from Estonian ride-hailing firm Bolt, which until early 2019 was called Taxify. Bolt has grabbed business largely by taking a smaller cut from drivers using its app.

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MTN Nigeria Share Falls 2.4 % As Tax Dispute Litigation Lingers

Investors sold down their shares in MTN Nigeria on the floor of the Nigerian Stock Exchange (NSE) on Thurrsday, forcing down the price of the stock by 2.4 percent to its lowest level since May 21.
MTN Nigeria shares fell to 128.75 naira per unit on Thursday in what analysts described as the impact created by litigations over a tax dispute with Nigeria authority.

A Federal High Court adjourned the $2 billion tax dispute between the telecoms firm and the government to October 22 on Wednesday, creating uncertainty over the possibility of quick resolution of the case.
Analysts said the court adjournment created uncertainty for investors as the tax dispute would continue to linger.
However, the shares of MTN was still 43.05 percent higher than the 90 naira a unit it was listed on May 16.
Last September.. the office of Nigeria's general claimed MTN Nigeria was in arrears of $2 billion in tax payment, which further compound the woes of the telecoms firm which had previously been fined by industry regulator for selling non-registered SIM.
On its part, MTN said the tax demand is without merit and that the attorney general exceeded his powers in making the request.
MTN Nigeria listed with a valuation of 2 trillion naira ($6.5 billion), making it the second-biggest company on the Nigerian Stock Exchange. It climbed to as high as 159.30 naira in the days after listing.
The listing came after the South African group resolved its dispute with industry regulator over unregistered SIM cards.
In December, the telecoms firm made a $53 million payment to resolve a money transfer allegation out of Nigeria, levelled by the central bank.
Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the group’s core profit. But the Nigerian business has faced several challenges.
MTN has said it would sell more shares to the public and increase local ownership in MTN Nigeria once the tax row was resolved.

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Proposed Banking Sector Recapitalization: How prepared are the listed banks?

Recently, the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, unveiled his plan for the second term in the office. 

Among others, the CBN’s plan to recapitalize the banks was the major highlight of the speech and this brought back the memory of the 2004 banking sector recapitalization wherein the banking sector minimum capital base was revised up from N2.0bn to N25.0bn. 

Notably, the most rational basis for newly planned recapitalization can be linked to the drop in the value of the naira against the dollar (N100/$ in 2004 vs. N360/$ currently) which had weakened the current minimum capital base of banks in dollar terms from c. $250.0mn in 2004 to c. $69.4mn today.
In our analysis, for the CBN to restore the capital base to c.$250.0mn, the dollar equivalent in 2004, the monetary authority will need to revise upward the current capital base from N25.0bn to at least N90.0bn ($250mn at N360/$).
Certainly, most of the listed banks are in a good position to withstand a recapitalization exercise, if the exercise is merely to reflect the current exchange rate environment. 

However, UNITYBNK and WEMABANK will need to shore-up their shareholder's fund which is below N90.0bn. 

STERLNBA is just some level above the estimated N90.0bn. Also, unlisted players such as KEYSTONE, POLARIS and HERITAGE may be affected. 

Overall, we believe the newer or recently licensed banks will feel the heat the most.

(C) United Capital Plc

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SEC Set To Implement Report On Commodities Market Development

The Securities and Exchange Commission (SEC) has commenced the implementation of the report of its Technical Committee on Commodities Trading Ecosystem.

The Acting Executive Commissioner (Operations) of SEC, Isyaku Tilde, disclosed this when a delegation of the Commodity Brokers Association of Nigeria (CBAN) led by its Registrar, Saleh Kwaru, visited the Commission in Abuja on Wednesday.
The committee’s report, published on SEC’s website, contains no fewer than 40 recommendations on how to revive the nation’s commodities market.
One of the recommendations, according to Tilde is capacity building of stakeholders and the public on commodities exchange to bridge existing knowledge gap.
Tilde, who represented the commission’s Acting Director-General, Mary Uduk, said that SEC was ready to partner with CBAN in that regard.
“The aim of SEC is to have an efficient commodities exchange because right now that sector of the capital market is dormant.
“Part of the issues that the committee is trying to address is capacity building and public enlightenment campaigns.
“I believe that part of the things CBAN is doing is capacity building, which is one area where we can collaborate going forward,” he said.
Earlier, the CBAN Registrar said the association started 13 years, and currently had 800 members certified by the Nigeria Commodities Exchange (NCX) to provide training.
Kwaru said, “We have been training people since 2009. We currently have 800 members, 15 of whom are SEC staff members.
“Today, we have close to 200 commodities brokers registered with NCX., and with this, we are set to operate on the floor of the NCX as soon as its trading platform is ready.

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Nigeria Sells 110.34 Bln Naira Bonds At Higher Yields, Despite Strong Demands

Nigeria sold 110.34 billion naira worth of bonds at its regular monthly debt auction on Wednesday, the sixth this year, at higher returns than the previous month's auction.

According to the results of the auction released on Wednesday by the Debt Management Office (DMO), the 5-year paper was sold at 14.30 percent compared with 14.11 percent the same tenor debt sold at the previous auction.
The debt office sold the 10-year bond at 14.50 percent against 14.24 percent previously while the 30-year paper sold for 14.68 percent compared with 14.49 percent at the previous auction.
The DMO sold28.99 billion naira worth of the 5-year paper, 36.36 billion naira of the 10-year debt and 31.49 billion of the 30-year bond at the auction.
It also sold additional 13.50 billion naira of the 10-year paper outside the auction on a non-competitive basis.
Traders said the increase in yields on the paper sold at the auction was influenced by the bearish sentiments within the bond space, which has resulted in higher returns during the month.
The instruments are re-openings of previous issues.
Total subscription at Wednesday’s auction stood at 160.13 billion naira, against a total of 100 billion naira initially put on offer by the debt office.
The central bank and other major government financial institutions are not allowed to participate in the auction but are given a special allotment so that they will not crowd out other investors.
Nigeria, Africa’s second-biggest economy after South Africa, issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

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President Buhari Appoints Acting Alternate Chairman For NNPC

President Mohammadu Buhari has appointed Thomas M John as Acting Alternate Chairman of the state-run oil giant Nigerian National Petroleum Corporation (NNPC) Governing Board, a statement by the oil firm said on Wednesday.

John appointment was meant to fill the vacancy left behind by former minister of state for petroleum, Emmanuel Ibe Kachikwu, whose tenure expired on May 28, when the president dissolved his cabinet.
The new acting chairman was a former Group Managing Director of the NNPC and was before the appointment, a member of the corporation's Governing Board.
"He will hold the position of the Acting Alternate Chairman of the Governing Board until a new Minister of Petroleum Resources or Minister of State for Petroleum Resources is appointed to assume the Chairmanship or Alternate Chairmanship position, respectively in line with Sections 1(3) and 2(1) of the NNPC Act," the NNPC said in the statement.
Buhari, who holds the position of the country's petroleum minister during his first term in office, remains the chairman of the board.

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Nigeria Court Fixes Oct 22 For MTN Vs Attorney-General $2 Bln Tax Dispute

A Federal High Court sitting in Lagos on Wednesday adjourned the case of tax evasion against MTN Nigeria by the office of the Attorney General of the federation to October 29.

The office of attorney general has demanded that MTN should pay $2 billion in outstanding tax arrears in September.
However, MTN has said the tax demand is without merit and the attorney general has exceeded his powers in making the request.
Lawyers for the government requested the adjournment.
Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the South African firm’s core profit. But the Nigerian business has faced challenges, ranging from the tax demand to a fine over unregistered SIM cards.
MTN Nigeria was listed on the Premium board of the Nigerian Stock Exchange (NSE) last month in a 2 trillion naira flotation and became the second-largest stock on the bourse by market value.
The listing followed MTN Group’s agreement with Nigerian regulators to settle most of its long-running disputes.
MTN said it would sell more shares to the public and increase local ownership in MTN Nigeria once the tax row was resolved.
MTN agreed in December to make a $53 million payment to resolve a separate dispute in Nigeria after the central bank ordered the company and its lenders to bring back to Nigeria $8.1 billion it was alleged to have repatriated using improperly issued paperwork between 2007 and 2008.
The settlement ended a four-month row that had hammered MTN’s share price in Johannesburg.

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NIGERIAN MARKET DEVELOPMENT: Of SEC New Board, CBN Banking Sector Reform

New SEC board inaugurated and works ahead
Four years after the last board of the capital market regulator led by Peter Obi was dissolved by President Mohammadu Buhari, a new board was constituted for the Securities and Exchange Commission (SEC) this week.

The new board is headed by a commercial lawyer, Olufemi Lijadu and also comprise of the representatives of the Central Bank of Nigeria (CBN) and the finance ministry in accordance with the SEC enabling Act.
The inauguration of the new board came at a time when the regulator has been trying so hard to assert its position in the market and stamp its authority on the issue of governance in the capital market.
The board may have also inadvertently inherited a huge task of either scouting for a substantive Director General for the regulator or better still implementing the decision of the Federal Court, which ordered the restoration of the suspended DG.
Presently, the most senior commissioner in the commission is heading the regulator’s operations in an acting capacity. Mary Uduk, the acting director general of the commission has been proving her mettle since she ascended the position in the wake of the suspension of Munsur Gwazor by the then finance minister Kemi Adeosun.
The released of the report of the investigations into the operations of the energy firm Oando Plc by the Commission was received by the market as a pleasant surprise considering the political influence wielded by the chief executive of the oil company, Wale Tinubu.
The issues relating to the result of the investigations of SEC into the operations of the oil company and the subsequent sanction imposed on the Oando key principal officers may have to be essentially resolved by the judiciary.
However, the new board have critical role to play in the final resolution of the face-off between the commission and the oil company so as to help salvage the interest of investors in the embattled firm.
The manner the board chooses to resolve the issue will go a long way to either restore confidence in the market or undermine the integrity of the regulator.

CBN 5-Year road map for banking reform
The financial sector regulator, Central Bank of Nigeria (CBN) on Monday unveiled its five-year road map for the bank and the economy. In the presentation made by the governor of the CBN, Godwin Emefiele, he disclosed that he has a vision to position Nigerian banks in the league of 500 top banks in the world. To this end, he will be proposing a recapitalization programme for the industry to enhance their liquid assets and reduce the impact of any economic crisis on the financial system.
The recapitalization programme is one of the major policy thrust that have generated some discuss within the financial sector and investing public.
Many Nigerians may not be so enthusiastic about the new move in view of the state of the economy and the unpalatable experience of the past.
The last banking reform under Charles Soludo was significantly received by the investing public with huge expectations as many people even borrowed money to invest in the stocks of many of the banks.
However, 14 years down the line, many of those who embraced the share sales embarked upon by the banks in the course of the recapitalization exercise back then got their fingers burnt as a result of the subsequent development in the economy with grievous impact on the capital market.
The planned recapitalisation exercise this time around could face some resistance from the investing public who may require more than a mere campaign to get them to part with their money.
Besides, the imperatives of the expected new capital for banks are glaring in the face of massive devaluation/depreciation of the local currency since the last recapitalisation exercise.
At the time, when Soludo announced his banking reform and recapitalisation programme in 2004, the exchange rate of naira was at an average of 150 to the dollar. However, by the present exchange rate, the naira has depreciated to around 360 naira to the dollar on average at both the parallel market and Investors and exporters window.
The depreciation in the value of the naira has equally eroded the value of the capital base of the banking industry over the years.
Aside from the problem of Non-Performing Loans (NPLs), which has hindered many banks from extending credit to some key sectors of the economy, the issue of inadequate capital has continued to limit the ability of some banks to lend to big ticket businesses.
The exercise whenever it kicks off by the regulatory bank will definitely bring back to live the primary segment of the stock market.
However, the notice giving by the CBN for the recapitalisation of the banking industry is sufficient for the capital market regulators to fine-tune their processes to enable investors take advantage of the possible avalanche of new issues in the market when the time comes.
Investors may also have to look out for those banks that have been consistent in providing value for their investment and compensate them with subscription into their shares whenever they come to the market to raise funds.
The success of the planned recapitalisation would definitely depend on the discipline and commitment demonstrated by both the regulators and the financial institutions willing to raise funds in the market.

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First Bank Opts To Repays $450 Mln Eurobond Ahead Of Maturity

First Bank, Nigeria's oldest lender on Tuesday said it has decided to exercise the option of repaying a $450 million Eurobond ahead of its due date.

In a regulatory filing on Tuesday, the bank said it "will exercise its option to call the $450 million 8 percent subordinated notes, raised from the International Debt Markets, due in July 2021."
"The bank seeks to call and pre-pay holders of the Note at the next callable date of July 23, 2019," the commercial lender, which is the largest subsidiary of FBN Holdings Plc listed on the Nigerian Stock Exchange (NSE) said.
The filing signed by Seye Kosoko, company secretary of FBN Holdings said the liquidity management exercise demonstrates the strength of the bank's foreign currency liquidity and robust capital base.
It said the option will also further enhance the efficiency of the balance sheet of the commercial lender.
Last July, the bank also repaid a $300 million Eurobond debt, two years before it matures in 2020.

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Nigerian Breweries To Raise 15 Bln Naira From Commercial Paper

Nigerian Breweries PLC, local unit of Heineken Brewer has again approached the market to raise up to 15 billion naira through 91-day and 172-day tenor commercial paper.
The offer which opened on Monday has an implied yield of 13.50 percent for the 91-day paper and 13.75 percent for the 172-day debt.

According to the notice of the offer, bids will close on June 28, while settlement day is June 31.
The commercial paper was the third and fourth series being offered under the company's renewed 100 billion programme.
The brewer had in April this year raised 15 billion naira in 91-day and 182-day series one and two paper at yields of 11.59 percent and 14.43 percent.
The debt is meant to support the company's short-term funding requirements.
Investors who are interested in subscribing to the paper have to possess a minimum entry of five million naira
Commercial paper is a short-term debt note deploy by blue-chip firms to bridge their financial needs and reduce cost of borrowing from commercial lenders.
The debt note is unsecured loan subscribed to by individuals or institutional investors who are seeking higher yields for their short-term funds through such investment channel.
Nigeria Central bank reports showed that many banks have slowed down on extending credit to the private sector, with many of them preferring to invest their surplus funds in fixed income assets.

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MTN Nigeria Says Launches 4G+ Data Service in Lagos, Abuja, P/Harcourt

MTN Nigeria has launched 4G+ mobile data services in three Nigerian cities to enhance customer's experience in Lagos, Abuja and Port Harcourt.
The telecoms firm revealed this in a regulatory filing with the Nigerian Stock Exchange (NSE) on Tuesday.

MTN said the 4G+ runs on 4G LTE advanced technology using a combination of its recently acquired 800 MHZ spectrum and 2600 MHZ.
"The added spectrum and advanced technology extend the reach and capacity of the MTN's data network in Nigeria and enable speeds of up to 200Mbps," the telecoms firm said in a statement signed byUfo Nkpanah, company secretary.
According to the filing, a 30-minute HD video could take as little as three minutes to download on 4G+, while the same video would take around eight minutes to download on standard 4G.
"With this enhancement, our customers in covered locations can expect faster downloads and uploads, and better browsing and streaming experience," MTN said.
MTN Nigeria listed on the NSE last month with the stock currently trading at 128.95 naira per share on Tuesday, down 0.81 percent at 12:17 from previous day's close.

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How Amosun, Ex-Ogun State Gov Left Empty Treasury For His Successor

Dapo Abiodun, the Ogun State Governor has narrated how his predecessor in office, Ibikunle Amossu now a Senator left empty treasury behind compelling him to borrow 7 billion naira barely two days in office to enable him to pay worker's salary.

Abiodun told the leaders of the ruling All Progressives Congress (APC) in the state, that he has chosen to concentrate on rebranding and rebuilding the state and ignore some of the past misdeeds of his predecessor.
“I cannot begin to describe in the open to you the Ogun State that we inherited. I cannot begin to describe it to you. I will not because I have made up my mind that publicly and privately, I will not discuss anything about the past administration.
“We have resolved to draw the line and to move forward from there. We need to be focused on. We are going to rebrand and re-launch the security trust fund.”
He said, “We have by far too many things to do than to begin to be bogged down by what someone did or what he did not do or what he left behind."
He added that he would rather focus on ensuring good governance in the state than pre-occupy himself with the actions or inactions of his predecessor.
Narrating his first baptism of fire as the state governor, Abiodun stated that his first challenge in office was how to pay the May workers’ salary, saying he had to call his friends who are managing directors of banks to get a credit facility of over 7 billion naira to pay the workers.
“30th day of May was our first day in office. And on the 31st, it dawn on me that it was the end of the month and we need to pay salaries.
“But here we are on our second day in office. I don’t even have an office; I don’t even know how to sign any document; I don’t even know what the protocols are. Suddenly, we realised it was 31st and I intend to keep my end of the tripartite agreement. So, I called the Head of Service; I told him we must pay salary. But he said to me, ‘You are new in government and everybody understands that you just assumed office and we don’t have that expectation of you paying salaries now. They (workers) will understand. There is very little or no money. We can talk to them.’
“I told the Head of Service, whether they (the workers) were expectant or not, it was my promise to the people that salaries would be paid as and when due.”
Convinced of his oath and promise to the people of the state, the governor picked up his phone and called his friends in the banking industry for loan obligations.
“So, I picked my phone and called my friends who are MDs in different banks. I told them I needed to pay salaries and this is the little I have; almost nothing in the state account.
“I requested for a credit facility to allow me to pay over N7bn which is the state wage bill. That day, my intention was that maybe one or two will oblige me, but the five banks I called obliged me.”
He said civil servants received their alerts that evening and that gave a sense of fulfillment, being his first task in office.

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Elumelu Seeks Changes In Finance Training Curriculum To Reflects Tech Development

Tony Elumelu, Chairman of United Bank for Africa (UBA) has called for the overhaul of the finance training curriculum to reflect current technological influences.

Elumelu in his paper titled: “The Future of Finance – Technology at Play,” at the Faculty of Management Sciences, Lagos State University (LASU) said it was not enough for tertiary institutions to train students in the techniques of traditional accounting without exposing them to realities of technological influences on accounting practice.
He was represented by UBA executive director in charge of Lagos West, Ayoku Liadi at the session.
"The academia needs to graduate from imparting traditional technical accounting and finance skills to embracing modern technologies in the delivery of both technical and soft skills needed to build a global finance professional of the future.
“I am not certain if the finance and accounting graduates of today are familiar with modern financial software packages, including global accounting and financial reporting standards.
‘’Have they been imbued with ready-to-market soft skills like leadership, communication, commercial acumen, flexibility/openness to change and strategic vision?
“If not, I will like to propose an overhaul of the curriculum to accommodate these. The academia should go beyond churning out finance and accounting graduates on a yearly basis to building ready-to-market finance professionals thoroughly equipped for modern finance functions.”
Elumelu, who is also the founder of Tony Elumelu Foundation, which supports entrepreneurship startups across Africa, said with technology replacing basic financing, the finance professional that would excel in the future must be quick to retool and adapt to changes.
“Traditional knowledge of finance is getting stale in today’s business world and indeed there is a dire need for retooling our skills if we must remain relevant n tomorrow’s financial world. Technology is fast replacing the basics of finance.
‘’Financial reporting is increasingly being automated, just as data analytics is demystifying performance analysis. Tomorrow’s finance professionals must have capabilities for business intelligence and cognitive analysis.
‘’We must apprise ourselves of the most recent technology and continue to retool our skills to remain relevant today and into the future,” he said.

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Lijadu Heads SEC New Board As Chairman

Nigeria has finally constituted the board of its capital market regulator four years after the last board headed by Peter Obi was dissolved by President Mohamadu Buhari.

The Securities and Exchange Commission (SEC) new board is headed by Olufemi Lijadu as Chairman.
Lijadu, who hails from Ogun state, and a leading commercial lawyer with over thirty years’ experience, was also Executive Director of one of Nigeria’s top four banking institution, United Bank of Africa Plc.
Other members of the board are; Okokon Ekanem Udo (Representative of the Federal Ministry of Finance), Angela Adewumi Sere-Ejembi (Representative of the Central Bank of Nigeria), Faruk Ladi Rekiya (part-time Commissioner), Lamido Abubakar Yuguda (part-time Commissioner). Full-time members are Mary Joseph Uduk – Acting Director-General, Isyaku Bala Tilde – Ag. Executive Commissioner (Operations), Reginald Karawusa – Ag. Executive Commissioner (Legal and Enforcement), Henry Adekunle Rowlands – Ag. Executive Commissioner (Corporate Services).
President Buhari dissolved the previous board of the SEC on July 16, 2015, and set up an eight-man panel headed by a former Secretary to the Government of the Federation, Babachir Lawal, two months later, to reconstitute it.
The inauguration of the Board comes with much expectations as market operators and stakeholders in the sector have been calling for the reconstitution of the board to strengthen SEC’s operations.

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Court Now To Hear Oando Case Against SEC On July 22

A Federal Court in Lagos has fixed July 22 as a new adjourned date for the case filed against the Securities and Exchange Commission (SEC) by oil company Oando Plc to stop the capital market regulator from removing its chief executive and his deputy from office.

Last month, Oando has obtained the court approval to stop SEC from carrying out its sanction against its chief executive Wale Tinubu and his deputy Omamofe Boyo who were indicted by the investigations into the affairs of the energy firm.
The regulator in its finding, SEC said it had found evidence of financial infractions by the company and its key principal officers.
Oando has dismissed the SEC charges as unsubstantiated and called for the SEC to release the full audit on which it is basing its charges.
Oando, which also has a dual listing in Johannesburg, has evolved from a fuel retailer into a major indigenous oil producer that competes with multinationals such as Royal Dutch Shell and Exxon Mobil in Nigeria.
SEC had announced on June 2 that it had set up an interim management team to oversee the affairs of Oando and conduct an extraordinary general meeting on or before July 1, 2019, to appoint new directors who would subsequently select a management team for the company.
However, Justice Mojisola Olatoregun of Federal High Court sitting in Lagos granted an interim injunction on June 3 following an application by Oando’s GCEO and his deputy, restraining SEC from executing the sanctions.
In a ruling by Justice Olatoregun, the Federal High Court barred SEC from giving effect to the decision pending the determination of a suit filed by Tinubu and Boyo.
Justice Olatoregun ordered the parties to maintain status quo and adjourned till June 14, 2019, for further proceedings.

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Nigeria Needs More Reciprocal External Trades

A one-sided relationship is rarely good or sustainable for individuals, organisations or countries. Most enduring relationships are anchored on mutually beneficial tenets. Our review of Nigeria's external trade figures over the years and the relationships with her trading partners show that there is a need to negotiate more reciprocal trading relationships that benefit Nigeria.

One of the principles governing international trade is that a country should concentrate on the production of goods that it can produce more cheaply than other countries, export those goods and import other items it cannot produce or could only produce relatively more expensively than other countries. Natural endowment in certain resources allows a country to be able to produce certain goods cheaper than other countries. Nigeria has huge petroleum deposits which, over the years, it has been exporting in its crude form, since the local refineries are not operating at reasonable capacities. With the huge investments going into Dangote Refinery, this situation may change very soon.
FSDH Research also expects the Federal Government of Nigeria (FGN) to sell the four non-functional refineries in the country to private investors.
Alternatively, the FGN may convert the refineries to a form of joint venture arrangements with the private sector so that the wasting assets are used to generate export earnings for Nigeria.
The country also has natural endowment in agriculture, but the country has not taken full advantage of this to increase its exports or to reduce its imports.
FSDH Research analysis of the external trade figures that the National Bureau of Statistics (NBS) published for Q1 2019 shows that Nigeria's exports and imports by destination are not well-aligned. Therefore, Nigeria's external sector is highly vulnerable.
Nigeria did not export anything to the three leading countries (China, Swaziland and the United States of America) which accounted for over 50% of its total imports.
China, which accounts for over 26% of Nigeria's total imports, is not even among the ten leading countries buying goods from Nigeria.
Remember, China is not an oil-producing country. There should be high-level negotiations with Chinese authorities to buy goods made in Nigeria on a consistent basis to compensate for the large market China enjoys for its products sold in Nigeria.
This will make the trading relationship between China and Nigeria a mutually beneficial one. Otherwise, the trading relationship will become one that drains away Nigeria's hard-earned foreign exchange.
On a medium to long-term basis, Nigeria must develop strategies that will enable it to enjoy cost advantage in the production of many exportable goods from its natural resources.
Although both the fiscal and monetary authorities have announced particular import-substitution measures, the Next Level agenda should include clear strategies on how to make the business environment more conducive for the manufacturing sector to thrive.
Most export-led economies around the world that we can identify today formulated and implemented specific programmes at certain points in the past to invest in their local competitiveness.
This generally included massive investment in infrastructure to enable companies to scale up production at low costs, maintenance of law and order that support the growth of businesses and entrepreneurial development, maintenance of security in the country to protect lives and property, and the development of the financial system that can act as catalyst for economic growth.

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Lagos, 10 Other States Remain Opaque Tn Budget Spending

Lagos top the list of 11 States that have failed to publish details of their 2019 budget online despite incentive created by the World Bank to encourage public finance transparency in the top Africa’s economy.

The other states in the list are Cross River, Akwa Ibom, Bayelsa, Ebonyi, Imo, Nasarawa, Oyo, Rivers, Sokoto and Zamfara, according to finding by BudgIT.
“This contravenes the ideals of openness and transparency in the management of public resources, which is the requisite guideline for the World Bank’s State Fiscal Transparency, Accountability and Sustainability (SFTAS) programme,” BudgIT said in a statement on Monday.
The World Bank in conjunction with the federal government has set up $750 million to strengthen fiscal transparency, accountability and sustainability in Nigerian states as a means to boost their revenue base, increase fiscal efficiency in public expenditure while reducing debt overhangs.
BudgIT, a civic society organisation that applies technology to intersect citizen engagement with institutional improvement in public sector finance said its 8-month painstaking effort, the assessment of the availability of public finance documents in state government domains reveals that only twenty-five states’ approved budgets are available online, a few of which are summarized scanned documents.
“We must emphasise that Imo, Zamfara and Sokoto states have not published their budget documents since 2017, whereas Lagos State, which provides only a thumbnail of it, has a history of notoriously resisting attempts to uncover its financial dealings, thus embedding corruption’” BudgIT said.
“It is commendable that many other states have released full budget documents to the public. However, those documents must always be published within a reasonable timeframe in an accessible format. This is pivotal in enabling citizens to engage legislators during budget debates. States with partially detailed budget documents – in public domains – must provide details of capital projects being executed for the fiscal year,” said Gabriel Okeowo, BudgIT’s Principal Lead.

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CBN To Order Fresh Recapitalisation In Banking sector

Nigeria central bank is mulling fresh recapitalization programme for the banking sector, coming 14 years after the major reform by ex-governor of the regulatory bank, Charles Soludo.

Godwin Emefiele, who unveiled his five-year roadmap for the CBN on Monday said the recapitalisation process to be carried out within the next five years was to make the banking industry contribute significantly to country's economic growth.
"In the next five years, we intend to pursue a program of recapitalising the Banking Industry so as to position Nigerian banks among the top 500 in the world.
"Banks will therefore be required to maintain higher level of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system," Emefiele said.
He said the apex bank will work with the industry players within the period of his tenure as the governor of the Central Bank of Nigeria (CBN) to boost credit to the real sector as well as the creative and education sector.
Emefiele also promised to sustain the bank's intervention in the critical sectors of the economy to discourage smuggling and boost local productions of goods and services.
He said the apex bank target a double-digit growth for the economy while lowering inflationary growth to a single digit.
He said the bank will leverage on low inflation rate while sustain positive interest rate regime and ensure foreign exchange stability in the economy.

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Cement Produces More Pollution Than All the Trucks In the World

The most astonishing thing about cement is how much air pollution it produces.
Manufacturing the stone-like building material is responsible for 7 percent of global carbon dioxide emissions, more than what comes from all the trucks in the world. And with that in mind, it’s surprising that leading cement makers from LafargeHolcim Ltd. in Switzerland to Votorantim Cimentos SA in Brazil are finding customers slow to embrace a greener alternative.

Their story highlights the difficulties of taking greenhouse gases out of buildings, roads and bridges. After wresting deep cuts from the energy industry, policymakers looking to extend the fight against global warming are increasingly focusing on construction materials and practices as a place to make further reductions.

The companies are working on solutions, but buyers are reluctant to pay more.
“There is so far too little demand for sustainable materials,” said Jens Diebold, head of sustainability at LafargeHolcim. “I would love to see more demand from customers for it. There is limited sensitivity for carbon emissions in the construction of a building.”
Significant Share
The cement industry's CO2 emissions were more than all the trucks on the road in 2017
While architects and developers concentrate on the energy used by their buildings, it’s actually the materials supporting the structure that embody the biggest share of its lifetime carbon footprint. Cement’s contribution to emissions is especially immense because of the chemical process required to make it.
About two-thirds of the polluting gases that come from cement production stem from burning limestone. Kilns are heated to more than 1,400 degrees Celsius (2,600 Fahrenheit), about four times hotter than a home oven set to the self-clean cycle. Inside the kiln, carbon trapped in the limestone combines with oxygen and is released as CO2, the most abundant greenhouse gas.
A ton of cement yields at least half a ton of CO2, according to the European Cement Association. That’s more than the average car would produce on a drive from New York to Miami. And a single mixer truck can carry about 13 tons. Hundreds or even thousands of tons go into ordinary office buildings.
The scale of the problem has drawn the attention of research groups like the IEA and Chatham House along with policymakers from the C40, which represents the world’s largest cities. The IEA estimates cement production will rise 12 percent to 23 percent by 2050, though it could cut emissions with a series of actions. All the groups are looking for levers to prompt change.
“It’s very difficult,” Shirley Rodrigues, deputy mayor for London and a C40 board member, said in an interview. “What we can do is to start to send a signal. We’ve got a new requirement for developers that they must develop a circular economy statement to show how they will reduce, reuse and recycle materials.”
Cement makers are responding but have found customers hesitant. LafargeHolcim, the second-largest maker by capacity, once launched a carbon-free product. It was more expensive and used a different production process. Customers were “very price sensitive” and didn’t show interest, Diebold said. Buyers acknowledge that cost is crucial.
“There are cement products with lower environmental impact, but they usually cost more than the normal ones,” said Lennart Henriz, chairman of the sub-commission on environment at the European Construction Industry Federation. 

“There are many types of strict targets on the European construction sector. But sometimes there is a lot of talking but low action.”
Cost is a problem because greener forms of cement can cost triple what the traditional mix does. Researchers led by Brett Tempest at the University of North Carolina at Charlotte found a yard of geopolymer cement may reach $161, while the most commonly used Portland variety is $51, their 2015 paper in the PCI Journal published by the Precast Concrete Institute.
What comes out of the kiln is called clinker, the key raw ingredient of cement. It’s the substance that, when mixed with gypsum and water, binds with gravel to harden and form concrete. Many companies are working to cut the amount of clinker in their cement, which requires new and sometimes untested recipes.
Others are looking at substitutes. Those include fly-ash, which comes from the chimneys of plants that burn coal, or slag from steel-making blast furnaces. They trigger a chemical reaction and form what’s known as a geopolymer binder.
Geopolymer cement has performance advantages and a huge sustainability edge over traditional mixes, according to Cameron Coleman, chief executive officer of Wagners Holding Co., which is based in Toowoomba near Brisbane in Australia.
Wagners has poured its Earth Friendly Concrete for taxiways at the Brisbane West Wellcamp Airport as well as in foundations and wall panels for the terminal building. While it’s gaining customers, Wagners still needs more regulators to sign off on using the material in more applications. The availability of slag and fly ash is also a challenge in some countries.
“This alternative eco-friendly binder technology reduces the carbon emissions associated with normal Portland cement by 80% to 90%, and also has a much lower embodied energy,” Coleman said by email. “We have been working with leading companies in South East Asia, New Zealand, India, Europe and the Middle East who are extremely interested in adopting this technology.”
Brazil is one place making rapid progress, partly because of the availability of raw materials such as pozzolan, a type of siliceous and aluminous material that results in a product with the same technical properties as the traditional cement.
The country has one of the lowest clinker contents in the world for its cement, below 70% in 2014. That compares with 75% in Europe. Brazil aims to reduce that ratio to about 50% by 2050, according to Alvaro Lorenz, global director of sustainability at Votorantim Cimentos, one of the largest cement producers in Latin America.
That strategy won’t work for long in Europe and the U.S., where fly-ash is the main clinker substitute and coal plants are closing. There, the focus is on efficiency and using fossil-fuel alternatives for heat. The European Cement Association says its producers already get 44% of their energy from cleaner sources and wants to raise that proportion to 60% by 2050. Instead of using coal, it’s creating heat with used tires, mineral oil and industrial waste.

The next frontier would be using carbon capture and storage devices to siphon off pollutants and trap them underground permanently. That technology isn’t in widespread use and would be expensive – hundreds of millions of dollars for each factory – but it could reduce emissions 80% by the middle of the century.
Cement makers know they must act not only because pollution rules are tightening everywhere, but also because the cost to emit CO2 has pressured their revenues. Companies are paying more for carbon allowances, which has “a serious cost impact for the cement industry,” said Koen Coppenholle, chief executive officer of the European Cement Association.
What’s less certain is the desire of developers and construction companies to buy greener products. Without action from policymakers, green cement may remain a low priority for the builders, said Tiffany Vass, who assesses energy technology and policy on the IEA’s industry team.
“I don’t believe the pressing need for decarbonization has broadly reached the construction industry in many parts of the world,” Vass said.

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Peace Air Overshot Port Harcourt Airport Runway, Averts Crash

Nigeria's domestic flight Air Peace on Saturday overshot the runway at the Port Harcourt International Airport in Rivers State under heavy rainfall.

According to one of the passengers on board, the incident occurred as the plane was landing at the airport. The plane came to a halt some 200 meters in the bush by the runway.
The incident, which was said to have happened about 4pm, caused panic among airport officials.
The witness said all of the passengers have been evacuated and driven to the arrival area.
It was gathered that no life was lost and none of the passengers was injured as they left for their various destinations shortly after the incident.

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Rice Disease Threatens Production Capacity In Nigeria Bauchi State

Nigeria drive to increase local production of rice is under threat with a fresh attack of disease suspected to be Rice Blast in some farmland in Bauchi state.

The disease which was said to have ravaged farmlands in Ayaya near Adabda in Gamawa Local Government Area of the State is threatening production of the commodity.
The District Head of Gamawa, Alhaji Adamu Abdulkadir Dahuwa, disclosed on Saturday that the disease, noticed in the area in the last three weeks, had destroyed about 20 hectares of rice farms, parts of 2018/2019 dry season farming.
“The invasion of the disease suspected by experts as destructive fungal infestation has wreaked havoc, infesting about 20 hectares of rice farms across the area.
“I detected the disease in my farm in late May when the crops were reaping and when the good dry season we experienced in the area raised hopes of a decent harvest.
“It is very difficult to assess the extent of damage to yields as the crops are at varying stages of growth,” he stressed.
“This is an alien pest because we have never recorded such pests in the last four years we have been carrying out irrigated (dry season) farming in the afected areas.
“We were not able to report the invasion to government officials but I am making it public now since I have spotted an official from the Bauchi State Agricultural Development Authority (BSADP) who is here on a condolence visit.
“I know he will carry the news to BSADP that most of the times is responsible for pests control in the state,” the district head said.
He, therefore, called on appropriate authorities to come to their assistance to avoid future occurrence.
Efforts made to obtain official side of the story from the Programme Manager, BSADP, Dr Illiyasu Gital, proved abortive as he was not on seat.
An official with the Department of Crops Protection, BSADP, who pleaded for anonymity, confirmed that “we heard of pocket cases of the disease but it was not officially reported to us.
“The state is ill-prepared for the pest due to lack of information or warnings, so farmers cannot identify such scourge.
“The farmers equally lack the knowledge and requisite skills on how to contain the damages,” he said.
The official who claimed that he had visited the affected areas on different assignments, confirmed that significant hectares of farms were affected.
“The disease is much more damaging to rice and it is harder to detect and eradicate because it has a dispersal capacity of over 2,000km per annum.
“It might occur due to a combination of ecological and climatic factors such as weather patterns, mono-cropping, the introduction of new species and pests migration,” he added.

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MultiChoice, Owners Of DSTV To Cut 2,200 Jobs

MultiChoice Group, owners of DSTV is planning to lay off close to 2,200 workers in a shake-up of its customer care service, the company said on Friday.
The axing will affect workers in South Africa.
MultiChoice, which competes with Netflix in online streaming via Showmax, said in a statement it is launching a consultation process to cut 2,194 positions in MultiChoice South Africa’s customer care call centres and walk-in centres.
“This has not been an easy decision to make but, in a business driven by advancing technologies, we must continue to drive efficiencies yet be agile enough to adapt to evolving customer needs,” MultiChoice Group Chief Executive Calvo Mawela said.
“We must act decisively to align to the change in customer behaviour and competition from over-the-top services,” he added, referring to video services that stream directly over the internet.
“If we don’t reposition now, we run the risk of being completely misaligned and we put everyone’s jobs at risk.”
Under the Labour Relations Act, the consultation process will take 60 days.
Over the past three years, MultiChoice has seen a steady decline in the number of customer telephone calls and e-mails into its call centres and walk-ins to its customer service centres, the company said.

In contrast, self-service digital channels have continued to grow, now accounting for 70 percent of all its customer service contacts.
“The company is also in an environment where it will rely more on technology than people,” it said.
Job cuts are politically sensitive in South Africa, where the unemployment rate is more than 27 percent.
In his state of the nation address on Thursday, President Cyril Ramaphosa called the unemployment rate among the youth a “national crisis” that demands urgent, innovative and coordinated solutions.
MultiChoice said it will make new roles available for multi-skilled workers with the “expertise, skills and technological prowess to enhance the customer experience”.
As part of a support program agreed with unions and other employee representatives, the firm will offer voluntary severance packages, wellness support and financial planning, it said.
It will also continue paying for the current studies of MultiChoice bursary-funded employees, and some other benefits.
However the Information Communication and Technology Union (ICTU) said in a statement it had not been officially informed of the action, “which makes the process unlawful”.
“The employer has timed Friday to make announcement, which shows some cowardice tendencies of not dealing with the consequences of their actions,” it said, adding that it will seek an urgent engagement with MultiChoice.
Shares in the company closed nearly 2% stronger at 134 rand prior to the announcement.

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Vodacom To Sell Operations In Nigeria, Four Other Countries

South African mobile phone operator Vodacom Group Ltd said on Friday it had entered into agreements to sell some of its Business Africa operations, which offer business-managed services to enterprises.

Vodacom, which is majority-owned by Vodafone Group Plc , said it had agreed to sell the Angolan assets of its Business Africa unit to Internet Technologies Angola.
It has also agreed to sell Business Africa’s operations in Nigeria, Zambia and Ivory Coast to Synergy Communications and to Vodafone Ghana in Ghana, it said.
Through Vodacom Business Africa, the company said it offers business-managed services to enterprises in 50 countries.
“In each of the five Vodacom Business Africa markets, the respective partners will acquire all of the operations and assets held by Vodacom,” the company said in a statement, adding that the financial terms were confidential.
Vodacom said it would no longer directly service global enterprise customers in the five markets covered in the agreements, but would continue to operate as a telecommunications network provider through local service provider agreements.
“The transactions support Vodacom Group’s enterprise strategy in Africa, which has been refocused to grow and strengthen its core business,” the company said.
A Vodacom spokeswoman could not immediately provide more details on the reasoning behind the disposals of the operations.
In the year ended March 31, enterprise service revenue contributed 23% to group service revenue, with 77% of the revenue coming from consumer service.
Vodacom said the agreements were subject to regulatory approvals in all the relevant markets.

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Nigeria Restores Teaching Of History In Schools From September

Nigeria government has directed the restoration of the teaching of History in all basic and secondary schools across the country as a standalone subject from the next academic calendar in September.
Sonny Echono, Permanent Secretary, Ministry of Education made this known on Friday in an interview with the News Agency of Nigeria (NAN) in Abuja.

According to Echono, the directive has already been given and it is automatic that all the schools should implement simultaneously.
“By the next academic calendar, history will be taught as a standalone subject.
“It is with immediate implementation. So, definitely for the next academic year everybody will fall in line because we already articulated the curriculum and the examination should be done along those lines,” he said.
It would the recalled that the Federal Government on June 18 promised the return history to school curriculum while ensuring that all primary school teachers are trained to deliver digital literacy.
Vice President Yemi Osinbajo has declared at the launch of Education for Justice Programme that government had kick-started implementation in 12 primary and secondary schools across the six geopolitical zones and instructional classes have also commenced.

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What Nigerian Investors Need To Know About Airtel IPO ~United Capital

Earlier, Airtel Africa Plc ("the Company") released the prospectus for a global Initial Public Offer (IPO) of ordinary shares worth $780mn (or N270.0bn). The expected price of the offer is set at a range of 80 pence and 100 pence/share or (£0.8-£1.0/share). The Company is expected to be admitted to the premium listing segment of the main board of the London Stock Exchange (LSE) at the end of the transaction. Additionally, a Nigerian offer of the issue is opened at an offer price expected to be between N363 and N454/share (technically a naira conversion of the pounds sterling expected price per share) which will be followed with a secondary market listing on The Nigerian Stock Exchange (NSE).

What Nigerian investors need to know about Airtel IPO:
* Airtel Africa is raising approximately $750mn from the global issue including proceeds from the Nigerian offer (this offer is 14.0% and 18.9% of the issued ordinary share capital, depending on the offer price.
* In addition, ordinary shares worth 10% of the total number of offer shares, may be made available by the Company pursuant to an over-allotment option described in the prospectus.
* The proceeds from the issue of the ordinary shares are proposed to be principally used for the deleveraging the Company’s balance sheet, particularly, to achieve a targeted leverage ratio of 2.5x.
* The Nigerian offer (or ‘The Offer’) will be offered in Nigeria through a ‘book-building’ exercise pursuant to Rules 320 to 323 of the Nigerian SEC Rules, to determine the issue price and the level of demand.
* The interested individual in the Nigerian offer will be deemed to have represented and agreed that it is either a ‘High Net Worth Investor (HNI)’ or a ‘Qualified Institutional Investor (QII)’ as such terms are defined in Rule 321 of the Nigerian SEC Rules.
* All ordinary shares subject to The Offer will be issued or sold at the offer price, which will be determined by the Company, following a book building process and in consultation with the Joint Global Co-ordinators.
* The price range stated above (between N363 - N454/share) is indicative only and may change in the course of The Offer or be set within, above or below the price range.
* A number of factors will be considered in determining The Offer price, share size and the basis of allocation. This will include the level and nature of the demand for The Offer during the book-building process and prevailing market conditions.
* The Nigerian Offer is not underwritten
* Application has been made to the Nigerian SEC for the registration of all of the ordinary shares to be issued in connection with The Offer and to the council of the NSE, to be listed and admitted to the official trading list of the NSE.
* There are no restrictions on the free transferability of the Nigerian Offer Shares.
* In relation to the Nigerian Offer and the listing on the NSE, Barclays Securities Nigeria Limited and Quantum Zenith Capital & Investments Limited have been appointed as Nigerian joint issuing houses. Greenwich Securities Limited and Chapel Hill Denham Advisory Limited have been appointed as Nigerian receiving agents.

Expected timetable of principal events for the Nigerian Offer

Event	Date
Announcement of the offer price, offer size, the publication of the pricing statement and allocation of ordinary shares	28-Jun-19
Allotment of new ordinary shares to the shareholders	29-Jun-19
Crediting of ordinary shares to accounts	3-Jul-19
Nigerian listing and start of unconditional dealings on the NSE	4-Jul-19

N.B: It should be noted that, if UK Admission does not occur or unsuccessful, all conditional dealings will be of no effect and any such dealings will be at the sole risk of the parties concerned. Temporary documents of title will not be issued. UK Admission shall not be conditional on Nigerian Admission, but the Nigerian Admission shall be conditional upon the UK Admission. There can be no assurance that Nigerian Admission will occur on the date indicated above or at all.

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Ex-President Obasanjo Accuses Buhari Of Corruption, Says President Condones Nepotism

Ex-President Olusegun Obasanjo has described nepotism as a form of corruption that is impeding the current fight against graft in Africa's biggest economy.

Obasanjo, who spoke to investors at the ongoing yearly meeting of the African Export-Import Bank (Afreximbank) in Moscow, accused the administration of President Muhammadu Buhari of fiscal indiscipline and bias in the fight against corruption.
While describing corruption and development as strange bedfellows, Obasanjo warned that people in authority would remain deluded as long as their definition of corruption is when money, goods and services are involved.
“Nepotism is a form of corruption and condoning what is bad is a height of corruption. Lack of fiscal discipline is corruption. So, corruption and development cannot meet. You must eschew corruption to make sure that you make significant progress.
“Fighting corruption is not a matter of do it today and tomorrow you are absent. It must be consistently fought.
"There must not be sacred cows, and it must be comprehensive and inclusive,” he said.
The Buhari administration has repeatedly come under criticism for allegedly favouring a section of the country on appointments and targeting the opposition in its campaign against graft.

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New Owners Effect Changes In Forte Oil, Appoint New CEO, CFO

Nigeria's Forte Oil Plc has announced the appointment of new chief executive officers and chief financial officer as new owners take charge of their investment in the oil marketing company.

Billionaire businessman, Femi Otedolar this week announced his exit from the oil marketing company after he successfully transferred his majority holding to Prudent Energy in a crossed deal on the floor of the Nigerian Stock Exchange (NSE).
The deal worth 64.9 billion naira was crossed on the floor of the NSE, putting an end to Otedola's 75 percent holding in the oil marketing firm.
According to a regulatory filing by Forte Oil, Olumide Adeosun and Moshood Olajide will take over as Chief Executive Officer and Chief Financial Officer respectively.
The change of guard was necessitated by the exit of Otedola from the company as chairman, leading to the resignation of the previous holders of the office, Akin Akinfemiwa and Julius Omodayo-Owotuga.
The regulatory filing was signed by Forte Oil General Counsel, Akinleye Oalgbende, Ignite Investments and Commodities Limited, led by Prudent Energy Service Limited had completed their acquisition of Otedola's 74.02 percent shareholding in the oil marketing company.
It said, “As a result of this and further to the announcement on December 28, 2018, Ignite will take over controlling stake in Forte Oil Plc, the downstream company.
The Chairman, Ignite and Chief Executive, Prudent Energy Services, Abdulwasiu Sowami, said the investment was of strategic importance to support their quest of continuously adding value to the Nigerian oil and gas industry.
“The next phase of Forte Oil’s growth will focus on increasing volumes, diversifying business operations, widening distribution networks and extracting potential synergies with partners. We look forward to working as part of the Forte Oil family to achieve this growth.”
The statement signed by Olagbende said parties to the sale indicated that the Forte brand will remain in place and that the transition of the board of directors has begun and new directors have been appointed subject to ratification by the shareholders at the next general meeting of the company.

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Nigeria To Borrow $2.7 Bln From External Sources In 2019

Nigeria will raise $2.7 billion from external sources finance part of the 2019 budget deficit, the Debt Mangement Office (DMO) has said.

In a statement on Thursday, the debt office said contrary to reports in the media the country intend to sources for money to bridge the 2019 budget gap this year from both local and external sources.
According to the DMO, the 2019 budget provides for nex external borrowing of around 824.82 billion naira.
"Consistent with the Debt Management Strategy of reducing debt service cost, the plan for raising the New External Borrowing is to first access cheaper funding from Multilateral and Bilateral lenders as may be available.
"Thereafter, any balance will be raised from Commercial sources which may include Securities Issuance such as Eurobonds in the International Capital Market," the debt office said.
The agency responsible for managing the country's debt portfolio noted that it will continue to focus on its objective of reducing debt service costs by emphasizing borrowing from concessional sources while considering Eurobonds and other commercial sources as secondary options.
Reports on in the media on Tuesday quoted the Director General of the DMO as saying Nigeria has no intention to raise funds from the International Capital Market (ICM) this year. But patience Oniha in a statement by the debt office said he was basically referring to dollar Sukku raising and not Eurobond
Nigeria approved a three-year plan in 2016 to borrow more from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.
In this year’s budget, Nigeria had proposed to borrow 802 billion naira from external source out of the 1.86 billion naira budget deficit proposal.
The West African country borrowed $3 billion via Eurobonds in 2017, part of which it used to fund its budget that year. It then followed with a $2.5 billion Eurobond sale last year to refinance local currency bonds at a lower cost. Many Nigerians are not happy with the government borrowing policy as the cost of debt servicing has deprived the country of huge resources to fund projects of economic benefits.
Nigeria currently spends 60 percent of its revenue to service its outstanding debt, leaving the country barely with around 40 percent to finance recurrent and capital expenditure.

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Otedola Finally Exit Forte Oil, Takes Over Geregu Power Plc

Femi Otedola, has sold his stake in Nigeria's energy firm Forte Oil Plc, the billionaire businessman took to social media to announce his exit from the company on Wednesday.

Otedola in a message posted on his verified Instagram page said he has divested from the business and will now concentrate on his power generation business.
“In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc,” Otedola wrote on his social media handle.
Otedola sold his 75 percent majority stake in the oil marketing company to Prudent Energy, a local oil trading firm.
Last December, Forte Oil has informed the investing public of the move by the billionaire businessman of the move to sell off its shares in the oil firm to an indigenous firm.
“Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 percent direct and indirect shareholding in the company’s downstream business,”
However, Otedola did not disclose how much he made from the deal and when it was finalised in his celebrated post on the Instagram middle week.
But the businessman may have invested part of his exit fee on the purchase of Geregu Power Plc, which was part of the subsidiaries of Forte Oil.
Forte Oil, was formerly British Petroleum until the federal government took over the oil company during the fight to free South Africa from White minority rule and renamed it African Petroleum Plc.
Forte Oil operates mostly in the downstream sector of the oil and gas industry.
The federal government later divested from African Petroleum Plc during the privatisation programme to Sodiq Oil, linked to former Vice President Atiku Abubakar before Otedola group later took over the oil firm and renamed it Forte Oil.
“We wish our successors the very best and urge them to build on our legacies which have been established since 1964,” he wrote.
Forte Oil is yet to formally file a regulatory notice on the final disengagement of its former chairman and majority shareholder from the company.
Below is the full text of his post on IG:
"A few years ago, my team and I embarked on an arduous task of transforming a moribund petroleum marketing business, African Petroleum Plc (formerly British Petroleum) into Forte Oil Plc; a leading integrated solutions provider with solid footprints in downstream petroleum marketing, Upstream Services and Power Generation and one in which we built intrinsic value to the benefits of our shareholders. In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc. We wish our successors the very best and urge them to build on our legacies which have been established since 1964 ?? ...F.Ote?

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