Acting Chairman of the Nigerian Electricity Regulatory Commission, Dr. Anthony Akah, has insisted that the new tariff plans for electricity consumers across the country will take effect on Monday, saying that the new tariff structure will enable the power distribution, generation and transmission companies to acquire needed infrastructure.
Akah said the absence of cost-reflective tariffs had impeded the electricity companies from acquiring the necessary infrastructure, adding that there wouldn’t be an excuse for not delivering with the new tariffs made available.
He added that the new Multi-Year Order would allow the generating, transmission and distribution companies to provide the needed infrastructure for higher generation and supply of electricity to meet the needs of consumers.
Also all premises must be metered and consumers who subscribe to specific metering models must be supplied meters within 60 days after which they would not be disconnected or charged on estimation if a meter was not supplied.
The Chairman added that the Power Consumer Assistance Fund had been would cater for the electricity needs of the less-privileged in the country, adding that the visit was part of the establishment of a coordinated approach to creating public awareness ahead of the February 1 implementation date of the new MYTO.
President Muhammadu Buhari has said that he was yet to be convinced that Nigeria and its people will derive any tangible benefit from an official devaluation of the Naira.
Speaking at an interactive meeting with Nigerians living in Kenya, President Buhari maintained that while export-driven economies could benefit from devaluation of their currencies, devaluation would only result in further inflation and hardship for the poor and middle classes in Nigeria’s import-dependent economy.
The President added that he had no intention of bringing further hardship on the country’s poor who, he said, have suffered enough already.
Likening devaluing the Naira to having it “killed”, President Buhari said that proponents of devaluation will have to work much harder to convince him that ordinary Nigerians will gain anything from it.
The President also rejected suggestions that the Central Bank of Nigeria should resume the sale of foreign exchange to Bureaux de Change (BDCs), saying that the Bureau de Change business had become a scam and a drain on the economy.
“We had just 74 of the bureaux in 2005, now they have grown to about 2, 800,” President Buhari noted.
He alleged that some bank and government officials used surrogates to run the BDCs and prosper at public expense by obtaining foreign exchange from government at official rates and selling it at much higher rates.
“We will use our foreign exchange for industry, spare parts and the development of needed infrastructure.
“We don’t have the Dollars to give to the BDCs. Let them go and get it from wherever they can, other than the Central Bank,” President Buhari told the gathering.
The President reaffirmed his conviction that about a third of petroleum subsidy payments under the previous administration was bogus.
“They just stamped papers and collected our foreign exchange,” he said.
The President appealed to Nigerians studying abroad to bear with his administration as it strives to address the challenges they are facing as a result of new foreign exchange measures.
He said that he was optimistic that the Nigerian economy would stabilize soon with the efficient implementation of measures and policies that have been introduced by his administration.
Tragedy struck in the early hours of Thursday morning as fire gutted parts of the Ketu Sawmill in Lagos South West Nigeria.
Although no life was lost in the inferno, but machinery worth millions of naira were destroyed in the fire.
It is believed that excessive current from the circuit breakers may be the cause of the fire, which has been put under control by men of the Lagos State Fire Service
The federal government plans to increase tax collection by 20 per cent in order to fund the deficit in the 2016 budget, Minister of Budget and Planning Udoma Udo Udoma said on Thursday, January 28.
Udoma, who stressed that the government does not want to increase the suffering of Nigerians, he said that the government will increase corporate tax and Value Added Tax (VAT) collections.
The Minister, spoke with State House reporters after the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo.
He was accompanied by Governors Akinwunmi Ambode (Lagos) Willy Obiano (Anambra) and Badaru Abubakar (Jigawa).
Ambode said Edo State Governor Adams Oshiomhole gave an update to the Council on NEC’s Ad-Hoc Committee on the management of the Excess Crude Account and payment into the Federation Account.
According to him, the Ad-hoc Committee submitted a memo for approval on its findings which included 81 government revenue generating agencies identified for forensic auditing while 18 core revenue generating agencies like the NNPC to be audited by KPMG, an international audit firm.
He said that other revenue generating agencies would also be forensically audited by SIAO, a local auditing firm. Council, he said, approved engaging of the forensic auditors.
Udoma said: “We expect about 20% increase in VAT collection, which is conservative in terms of our revenue projections. We are expecting much more than that. Occasionally we try to be conservative.
“With reference to the budget, one thing we are determined not to do is to cut any of those capital projects, because we need them to stimulate the economy. We are going to work with the National Assembly, to see how we can get savings.
“One of the areas we are looking at is our cash call elements. The minister of state for petroleum (Ibe Kachikwu) is looking at how we can cut our cash call elements which is about N1trillion by innovative financing.
“So he is discussing with some oil companies and looking for some innovative financing which might pick up some of the financing so that we reduce our financial output and contribution by the federal government.
“That will be a major saving which can be used to plug the gap particularly with falling oil prices. In addition some of the capital projects, the various ministers for infrastructure are looking at how we can get private sector funding for some of them.
English Premier League side, West Ham United will conclude the signing of Nigerian striker Emmanuel Emenike this week,it was gathered.
According to reports, the 28-year-old forward is now expected to undergo a medical after West Ham and Fenerbahce agreed to a deal that will see Emenike join the London club on loan for the rest of the season.
Emenike has already agreed to personal terms with the English club and will officially become West Ham’s second signing of the January transfer window once he passes his medical and is unveiled.
West Ham manager, Slaven Bilic, has also shed light on the move for a striker in the current transfer window.
He revealed that West Ham are in the transfer market ‘to strengthen our squad’ following injuries that have sidelined a few key players in the course of their campaign this season.
“We are still in the market for a striker. We are looking to strengthen our squad. If we can loan one, we will do,” Bilic said in a press conference yesterday ahead of their FA Cup clash with Liverpool this weekend.
Emenike had to cut short his season-long loan move to UAE club, Al Ain, return to his parent club, Fenerbahce, to pave way for the deal to West Ham.
The state governors are partnering with the Federal Government and stakeholders in the Solid Minerals sector in order to create more jobs and increase revenue generation in the country.
The Chairman of the Nigeria Governors’ Forum and Zamfara State Governor, Abdulaziz Yari disclosed this to State House correspondents at the end of the Forum’s meeting.
Reading the communique at the end of the meeting, Governor Yari, stated the agreement to partner with the ministry was consequent upon a detailed briefing by the Minister of State for Solid Minerals Development, Bawa Bwari during the meeting.
The forum commended Justice Muhammed Uwais Committee on revised procedures to simplify States Peer Review Mechanism, SPRM.
It said: “After a comprehensive presentation made by the Minister of State, Ministry of Solid Minerals Development, Hon. Abubakar Bawa Bwari, members resolved to partner with the Ministry and other key stakeholders to create an enabling environment for the sector to act as a catalyst for job creation revenue generation industrialisation, environmental sustainability and inclusion.
“Following the presentation made by the Chairman of the States Peer Review Mechanism (SPRM) Steering Committee, Justice Muhammed Lawal Uwais, on the revised tools and procedures to simplify SPRM operations, the forum resolved to commend the Steering Committee for its contribution to the implementation of the programme, and pledged to strengthen the Mechanism.
“The forum has further launched the Revised SPRM Base document to reinvigorate the SPRM programme and improve good governance and service delivery in States.”
The Japanese government, on Wednesday, January 27, awarded $360,615 grant for the execution of four community-based projects in the Federal Capital Territory (FCT) under the Japanese Grant Assistance for Grassroots Human Security Project (GGP).
The projects included the construction of a primary school in Angwa Dio, Gwagwalada, Durumi Vocational Training Centre, Shere Koko Health Centre in Bwari, and the procurement of medical equipment for Bwari General Hospital.
The Ambassador of Japan to Nigeria, Sadanobu Kusaoke, who awarded the grant in Abuja said the GGP intervenes in different project areas like education, poverty reduction, maternal health and water.
He said the project was aimed at solving urgent socio-economic problems at the grassroots level, adding that the Japanese government has, so far, implemented 152 projects in Nigeria under the scheme since 1998.
The envoy, however, regretted the unfortunate cases where patients cannot receive swift and proper medical care due to shortage of medical equipment, which, he said, has led to loss of lives.
The project, he added, was expected to improve the functioning of the hospital and eliminate such tragic events.
Kusaoke urged the implementing partners to execute the projects as scheduled and mobilise community members for them to achieve a sustainable impact.
The Senate on Thursday, January 28, has asked its joint committee on Power and Privatisation to probe the sale of 10 National Integrated Power Projects (NIPP) by the Bureau for Public Enterprises (BPE). The Federal Government lost $3billion in the transaction.
This followed a motion by Senator Mohammed Hassan (Yobbe South) and five others over alleged “unwholesome practices by Manitoba Hydro International Nigeria Limited under the direction and control of the BPE.”
In his lead debate, Hassan criticised the activities of Hydro International ((Manitoba), a Canadian company contracted to manage the Transmission Company of Nigeria (TCN).
The lawmaker said though the firm was incorporated under the laws of Nigeria, it has insisted to be paid in dollars instead of naira.
He said: “It is a criminal offence stipulated in Section20(5) of the Central Bank of Nigeria (CBN) Act, 2007 for any person or body corporate to refuse the acceptance of naira as legal tender.
“We are worried that the TCN is imposed with this burden, under the management Services Contract, of paying all taxes for the management contractors while Manitoba does not pay taxes on monies paid under the contract.
“Section 9(2) of the Companies Income Tax Act(CITA) Cap 21, 2004 provides that tax shall be assessed and payable upon the profit of any company accruing in Nigeria.
“The Management Service Contract prepared by BPE for the management of TCN is fraught with apparent illegalities and total violation of the laws of Nigeria.”
Chairman, Senate Committee on Appropriation, Senator Mohammed Danjuma Goje in his contribution lamented that the entire privatisation exercise seemed to be a failure.
He noted that the idea of the exercise was to empower the private sector to make power more stable in the country.
The downward trajectory that plagued trading at the Nigerian Equities market came to an abrupt halt at the close of trading on Thursday, January 28.
Trading on the Nigerian bourse gained N91 billion as the NSE All Share Index closed higher at 23,598.85 points as it added 265.51 basis points translated to 1.14 per cent.
Volume and value of trades both improved by 4.99 per cent and 17.75 per cent respectively from their previous trading levels. Transactions in the shares of Africa Insurance, Guaranty Trust Bank, Zenith Bank, UBA and Universal Insurance topped the activity chart as most traded equities by volume.
NSE Al, Share Index and all sector indices closed upbeat save for NSE Insurance and NSE Oil & Gas with daily losses of 1.03 per cent and 2.75 per cent.
The market breadth tilted to the bull’s camp with 27 gainers against 13 losers.
The federal government has stated that despite the current dwindling oil revenue, there will be no increase in tax revenue.
This was an offshoot of the meeting of the National Economic Council (NEC) presided over by Vice President Yemi Osinbajo at the Council Chambers of the Aso Rock Presidential Villa in Abuja, on Thursday, January 28.
Briefing State House correspondents later, Budget and National Planning Minister Udoma Udo Udoma emphasized that the government did not intend to increase either the Value Added Tax (VAT) or the Corporate Tax at the moment as it did not want to impose additional burden on Nigerians.
According to the minister, the government only desired an increase in taxes collection rate currently standing at about 20 percent.
He said the executive would collaborate with the National Assembly to explore other innovative financing methods for the 2016 budget especially by considering private sector funding for some capital projects.
Udoma added that the government was also considering tolls collection as an option for road construction projects.
Telecom operators have threatened to shut down network services in seven states over closure of Base Transceiver Stations (BTS) by the state governments.
Chairman of Association of Licensed Telecommunications Operators of Nigeria,ALTON, Gbenga Adebayo said many sites in the listed states have been shut down or about to be shut by agents of government not minding the security and economic implications on their states.
He said the Association has resolved that its members will not reopen any sites closed by state or local government authority.
“The arbitrary sites closure without following the Nigeria Communications Commission, (NCC) guidelines and best practices will no longer be tolerated,” he added.
He noted that ALTON’s members continue to record cases of sites closures in many states in an attempt to force service providers to pay local taxes and levies.
He said some of these levies and taxes are multiple in nature because most of them are only aimed toward telecom operators.
He said:“We are considering very carefully the situation of site closure and harassment of our members in some of those states and we may begin anytime soon to have them feel the impact of their actions on telecom operators if they do not desist from deliberate disruption of our operations.”
A management expert,Biodun Adedipe, has warned the Federal Government against devaluing the naira to prevent widening the gap in resource distribution in the country.
Adedipe, who is a chief consultant at B. Adedipe Associates Ltd., gave the advice at a Breakfast Meeting organised by the Nigerian-South Africa Chamber of Commerce on Thursday, January 28, in Lagos.
He spoke on: “The Nigerian Business Environment: Navigating the Rocky Road Ahead”.
He said the call for devaluation is misplaced with focus on the U.S dollar as a tradable commodity rather than as a means of exchange.
He said that the underlying problem lied with the goods and services being exchanged for the currency.
According to him, devaluation of the naira will increase the cost of doing business and living in the country.
Adedipe said that this was because the economy was still largely dependent on imported goods and equipment for its manufacturing sector.
He said that the ripple effects of the devaluation would be transmitted to the consumers who would bear the cost of price differentials.
He urged the government to stimulate economic growth through investment in infrastructures, alignment of fiscal and monetary policies as well as accountability.
The bear sentiment racing through the Nigerian Stock Exchange, NSE, in the past few days,came to a screeching halt on Thursday, January 28.
All Share Index gained 1.14 per cent to close at 23,598.85 points from 23,333.34 on Wednesday while market capitalisation also rose from N8.025 trillion to N8.116 trillion.
The market recorded 27 gainers today led by Access Bank with a gain of N0.35 or 9.21 per cent to N4.15 followed by Tigerbrands with a gain of N0.07 or 5.93 per cent to close at N1.25 while UBA gained N0.14 or 5.09 per cent to close at N2.89 per share.
On the other hand, Unilever topped 13 stocks on the losers’ chart with N3.80 loss or 9.73 per cent to close at N35.24 followed by Forte Oil that lost 15.67 or 5.00 per cent to close at N297.83 per share, and NPF Microfinance Bank that lost N0.05 or 5 per cent to close at N0.95 per share.
All together, a total of 273,064,602 shares worth N2.007 billion exchanged hands in 2,794 deals.
Federal government revenues jumped by 5.6 per cent in December to N315.019 billion, from N297.450 billion the previous month despite a drop in oil prices and production hiccups, the finance ministry revealed.
Permanent secretary at the ministry of finance, Mahmoud Isah Dutse, said shut-ins, shut-down of production for repairs and production shortfall due to technical hitches at different terminals throughout the month had a negative impact on crude oil and gas revenue.
He said there was a revenue loss of $143.96 million because of a reduction in export sales and a drop in the average price of crude to $43.40 in November from $49.58 in October.
Nigeria would distribute N387.771 billion to its three tiers of government, federal, state and local, for the month of January, including revenues, cash from VAT, gains on the exchange rate and refunds from the state oil company of N6.330 billion, Dutse said.
He added that $150 million in dividends from the Nigeria Liquefied Gas Co had already been distributed in December. The Excess Crude Account, Nigeria’s rainy day fund however, remained unchanged at $2.258 billion.
The Central Bank of Nigeria, CBN, has injected the sum of N350billion intervention fund into NEXIM bank to keep the bank afloat.
The managing director, Robert Orya revealed this to the Senate committee on Banking, Currency and Financial Institutions on Thursday, January 28.
Orya who said the monies would be invested into Agriculture, solid minerals, transportation and hotel industry also called on other investors to do business with the bank to achieve its goals.
He also told the committee that although he inherited a very unhealthy institution, he has tried to carry out certain reforms in line with the mandate of the bank in other to achieve its goals.
“We inherited a system that was not working, shareholders funds were depleted and the overall system was deteriorating. The problem was that the bank deviated from its core mandate and veered into oil and gas which moped up cash and rendered the bank in a bad shape”, the NEXIM boss noted.
The Chaiman of the committee, Senator Rafiu Adebayo yesterday assured that it would not hesitate to inject direction and light to ensure a stable financial system.
Speaking during the interractive session with the management of NEXIM bank led by its MD, the committee chairman also emphasized the importance and strategic roles of banking panel of the Senate, adding that, “ banking is important in our economic life and we need to keep our financial institutions safe.
“We want to ensure that the engine of our national economy does not break down, we also need rapid changes in our economy and we must serve the best interest of Nigerians. We shall attempt to identify the problems affecting the sector and profeer solutions and we will not hesitate to inject diercrion and light to ensure a stable financial system”.
The NEXIM boss also called on other investors to do business with the bank to achieve its goals.
According to him, “ we inherited a system that was not working, shareholders’ funds were depleted and the overall system was deteriorating.
Orya added:“The problem was that the bank deviated from its core mandate and veered into oil and gas which moped up cash and rendered the bank in a bad shape.”
Oil price leaped on Thursday, January 28, after a Russian official said Saudi Arabia had proposed that oil-producing countries cut output by up to 5 percent each amid a massive supply glut in the world market that has depressed prices for a year and a half.
The comments initially sent Brent crude up more than 8 percent to almost $36 a barrel and U.S. crude up nearly 8 percent, cresting just below $35.
The price gains later moderated a little, and as of 10:09 a.m. EST, Brent futures for March delivery, two days ahead of expiry, were up $1.50, or 4.5 percent, at $34.60 a barrel. U.S. crude was up $1.39, or 4.3 percent, at $33.69 per barrel.
Russian Energy Minister Alexander Novak announced the proposed cuts on Thursday.
The reduction would amount to about 500,000 barrels a day of cuts by Russia, a major non-OPEC producer.
If implemented, the output reductions could help ease a supply glut that has caused oil prices to fall more than 60 percent since mid-2014. Prices hit their lowest level for more than 12 years last week.
The Ambassador of Poland to Nigeria Andrzej Dycha has stated that his country is set to partner with Nigeria through investments in areas bordering on agriculture, energy, construction, pharmaceutical.
According to him, both countries can build a new big powerful engine of economic growth.
Dycha, who spoke during Polish-Africa Economic Forum (POLAFRO) in Abuja,said that agriculture, which is the main source of growth in Poland can be an engine for further cooperation between Poland and Nigeria.
“Nigeria has citizens with unique agricultural skills who can be the source of further growth and economic diversification with the technological experience of Poland which we are willing to share with Nigeria. We can build a new big powerful engine of economic growth in Nigeria… we did it in Poland and together, we can do it in Nigeria.” he said.
He noted that Polish economy is growing at an annual rate of 4% since 2004 and that export of Agricultural products from Poland has grown from €5b in 2004 to €22 in 2014 while inflation rate has declined from over 600% in 1990 to less than 1% at present.
Also speaking at the Forum, the former polish MP and President, African Institute, Hon. John Godson while elaborating the benefits of the new partnership for both countries said that Nigeria, as the largest economy in Africa and 25th largest economy in the world is unique for such an investment opportunity.
‘”Nigeria has a huge population, enormous potential for growth and diversification, a vibrant, young and entrepreneurial population desirous of achievement and betterment and Poland on their own part, is the 7th largest economy in the EU, 23rd largest economy in the world, a member of the European Union which give Nigeria access to a market of over 500 million people and also the only country in the European union to not have experienced economic crisis.’’ he said.
The Association of Nigeria Licensed Customs Agents, ANLCA, said it has presented a draft bill for indigenisation of the customs brokerage in the country to the National Assembly and is currently working to ensure its passage by the legislature.
This move is an effort to stop the current influx of foreign nationals into the cargo clearing and freight forwarding business in the country.
National Publicity Secretary of the association, Dr Kayode Farinto Collins told journalists in Lagos yesterday that when passed into law, it will be an offence for a foreigner to clear cargoes in Nigeria.
In the last few years, Chinese, Indians and Lebanese have been involved in clearing of consignments especially for companies owned by investors from those countries. Nigerians in the business have maintained that the situation has become a source of concern since everywhere else in the world, customs brokerage and freight forwarding industry is purely of local labour.
“It is not possible for a Nigerian customs broker to go to Ghana or United States of America to practise but in Nigeria, Lebanese and other foreign nationals are seen clearing goods at our ports,” Farinto said.
Farinto averred that the National Assembly should rise up to the occasion and pass laws that will protect interest of Nigerians and provide jobs for our teeming unemployed youths.
The media and publicity team of President Muhammadu Buhari has pledged support for the advocacy campaign of the Public Relations Consultants Association of Nigeria (PRCAN), which is aimed at ensuring that the laws governing PR practice in Nigeria are complied with.
Receiving the PRCAN delegation, led by its President, Mr John Ehiguese, at the Presidential Villa, Abuja, the Special Adviser to the President on Media and Publicity, Mr Femi Adesina, said the government would ensure that PRCAN member-agencies became significant players in its communications drive.
: L-R Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu; the Vice President of the Public Relations Consultants Association of Nigeria, Muyiwa Akintunde; the Special Adviser to the President on media team in Abuja recently.
He said that the Buhari administration was willing to seek and secure support from all stakeholders in the quest to rescue the country from national and economic decline occasioned by past errors.
Adesina recalled the significant strides of PRCAN, particularly its thought leadership and capacity development programmes, as well as its determination to sanitise PR practice in Nigeria.
He promised that the administration would lend support to the initiatives of the association, which he believed would promote the goals of bridging the gap between the government and the populace.
The Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu commended PRCAN for finding time to rub minds with the team, and pledged support for the association.
Earlier, PRCAN President, Mr John Ehiguese had condoled with Adesina on the recent passage of his sister, Professor (Mrs) Foluke Ogunleye and prayed that God would forever stand by the family.
He expressed gratitude to Adesina for his past association with PRCAN, recalling that he was among the panellists during the inaugural PRCAN Gold Medal Lecture in 2013 and also a resource person at one of the PRCAN Masterclass workshops.
Ehiguese assured the government of the support of the association and its members in achieving its set objectives, while also urging that government should lead the crusade for the promotion of PR practice in Nigeria. “It is about time the public sector ensured compliance with the laws enacted by government which are at the moment observed in the breach even by public institutions,” he further said.
Others in the PRCAN delegation are the Vice President, Mr Muyiwa Akintunde and the Assistant General Secretary, Mr Mike Nzeagwu.
PRCAN, the umbrella body of Public Relations consultancy firms operating in Nigeria, has as its primary objective the promotion of professional reputation management in Nigeria, in both the public and private sectors. It is also committed to maintaining professional standards and discipline among members and providing the right environment for the public and private sectors to thrive and meet their PR consultancy needs.
PRCAN is chartered by NIPR Bye Law No 3 of 1993, to cater to the interests of the consultancy side of PR practice in Nigeria. It currently has a membership of 51 PR firms providing services across at least 21 PR practice areas.
