₦airaland Forum

http://www.globalnigerian.com/

2016 is going to be a year of monumental civil unrest in this country (Nigeria). The federal and state governments are broke, we are fighting an insurgency with imported bullets and the price of our best product is falling. You all know this so why am I expecting unrest? Well the simple truth is that the problem is not the price of oil but rather the Nigerian mentality. The same mentality that has made past generations protest against subsidy removal is the same mentality that will drive the masses to the street. I call it the entitlement mentality.


Nigerians believe they are entitled to things. They fail to realise that government is all of us. We can only get what we put in. If we all feel that because government is wasteful that we are therefore entitled to fuel subsidy then we all suffer. There are two very unconnected arguments linked by the entitlement mentality; firstly there is the government is wasteful argument, I don’t necessarily agree with it but I see its merits. Then there is the fuel subsidy argument. Both arguments aren’t connected unless you want to subconsciously support your entitlement mentality. Anyway Nigerians feel they are entitled to certain things and in 2016 the government simply wont have the money to provide these things. This will ultimately lead to civil unrest.

Let me explain why I feel $35 a barrel oil will look like a luxury this time next year. Iranian sanctions get removed Q1 to Q2 of 2016 when that happens Iran will witness tremendous investment in it’s oil industry. This will push up their production and as we all know increased supply drives down price. The USA just started exporting so that wont help either. Basically oil is going sub $20 for a long time and that means that Nigerian governments (state and federal) would barely have enough money to pay salaries. 2016 will most likely witness the first government pay cut in the history of this country.

If you have funds in your domiciliary account I strongly urge you to either withdraw that cash and keep in your bible or transfer it abroad. We might just witness the nationalisation of foreign denominated savings. If you cant start a farm I advise you invest in one (I happen to be packaging something so watch out). If you currently hold Nigerian equities I advise you to sell and buy dollars.

No sector will be spared, winter is coming and it is going to be arctic cold. We are going to witness acute shortages of things, the shops will be empty; buy as much imported goods as you need as quickly as possible. When things get bad there will be no dollars to pay for our imports. Those who can still manage to get imported goods in will sell them at exorbitant prices.

https://www.youtube.com/watch?v=H81-Qc_luYM

Nigeria needs prayers

Yesterday, the local currency crashed further to N280/$1 at the parallel market, pushing the market premium to all time high of over 41 per cent against the official exchange rate range of N196-N198/ $1.0.

The parallel market has been on daily depreciation of the Naira in the past two weeks worsening this week with market operators indicating the crash has not bottomed out.

At the backdrop of the development, commercial banks sent out letters to their customers informing them that henceforth maximum spending limit on offshore credit/debit card spendings have been further reduced to $12,000.00 per annum.

According to the banks, the letters were sequel to a similar communication from the apex bank directing a downward review of domiciliary account spendings abroad.

The latest downward adjustment will be the second this year, having crashed the limit to $50,000 from $100,000 mid this year.

As the foreign exchange market tension persists, market operators said the apex bank will cancel the weekly sale of foreign exchange to Bureau de Change dealers anytime from now.

An official of the apex bank said the bank would formally give a “forward guidance” on the new policy that is expected to frustrate the booming black market trading of foreign currencies nationwide.

CBN has been battling unwholesome practices and lack of rendition of weekly reports by BDCs.

Vanguard learnt that some authorized BDCs usually buy foreign exchange from the CBN at the official rate of about N197-$1 and resell at the parallel market (black market) to end users at rates ranging far above the stipulated margins.

GOd hel Nigeria!!

Dangote predicted 500 Naira to 1 Dollar. Today it is 280 Naira to a Dollar.

http://abokifx.com/

http://www.vanguardngr.com/2015/12/naira-depreciates-to-n270-in-parallel-market/

The Naira Wednesday depreciated further to N270 per dollar at the parallel market, following reduction of dollar sales to bureaux de change (BDCs) by the Central Bank of Nigeria (CBN).

Vanguard Investigation revealed that from N260 per dollar at the close of business on Tuesday, the parallel market exchange rate rose sharply to N270 per dollar in Lagos, indicating N10 depreciation.

But in Abuja, the parallel market exchange rate rose from N262 per dollar to close at N273 per dollar, indicating N11 depreciation.

BDC operators, who confirmed this development to Vanguard, said that the sharp depreciation was due to further reduction in the weekly dollar sales by the CBN.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe to Vanguard that though the CBN increase the number of BDCs it sold dollars to from 1,170 last week to 2,270 this week, it however reduced the amount of dollars sold to each BDC by 60 percent from $30,000 to $10,000.

There is going to be a steep increase in the cost of living next year o!!!

http://www.vanguardngr.com/2015/12/fg-pushes-for-electricity-tariff-increase/


[b]MINISTER of Power, Works and Housing Mr. Babatunde Fashola, said Nigerians should expect increase in electricity tariff in no distant time. [/b]This is as he also indicated the Ministry of Petroleum has signified their interest to build certain critical pipelines to transport gas to the power plants that will add another 2,000 mega watts to the national grid within 12-15 months.

According to him, “By far the most complex challenge is the problem of tariff. It is complex because it is more in the hands of citizens than in the hands of Government.

“The role of Government is to set the tariff and in doing so, Government has committed to what is called a Multi-Year Tariff Order. This was done in order to attract investors to the market; otherwise we will not have achieved the privatization if the price of the product is not attractive to the investors.

“The tariff is the price of producing power. It covers cost of generation, gas purchase, transportation, transformers, staff costs and so on, disaggregated and charged per kilowatt/hour to make the business of power profitable.

“What Government did was to spread it over a number of years so that the impact is not felt at once but over a periodic incremental process. I know that it has been a contentious matter, but I make this fervent appeal to consumers to give us the benefit of doubt, to forbear and accept it.

http://www.vanguardngr.com/2015/12/fg-pushes-for-electricity-tariff-increase/


MINISTER of Power, Works and Housing Mr. Babatunde Fashola, said Nigerians should expect increase in electricity tariff in no distant time. This is as he also indicated the Ministry of Petroleum has signified their interest to build certain critical pipelines to transport gas to the power plants that will add another 2,000 mega watts to the national grid within 12-15 months.

According to him, “By far the most complex challenge is the problem of tariff. It is complex because it is more in the hands of citizens than in the hands of Government.

“The role of Government is to set the tariff and in doing so, Government has committed to what is called a Multi-Year Tariff Order. This was done in order to attract investors to the market; otherwise we will not have achieved the privatization if the price of the product is not attractive to the investors.

“The tariff is the price of producing power. It covers cost of generation, gas purchase, transportation, transformers, staff costs and so on, disaggregated and charged per kilowatt/hour to make the business of power profitable.

“What Government did was to spread it over a number of years so that the impact is not felt at once but over a periodic incremental process. I know that it has been a contentious matter, but I make this fervent appeal to consumers to give us the benefit of doubt, to forbear and accept it.

Lower quality oil is already selling below $30 on global markets. Basra heavy crude from Iraq is quoted at $26 in Asia, and poor grades from Western Canada fetch as little as $22. Iran’s high-sulphur Foroozan is selling at $31.

The oil market is now in the grip of speculative forces as hedge funds take out record short positions and exchange-traded funds (ETFs) liquidate paper holdings, making it extremely hard to read the underlying conditions.

Russian finance minister Anton Siluanov said his country is bracing for the worst. “There is no defined policy by the Opec countries: it is everyone for himself, all trying to recapture markets, and it leads to the dumping that is going on,” he said.

“Everything points to low oil prices next year, and it’s possible that it could be $30 a barrel, and maybe less. If someone had told us a year ago that oil was going to be under $40, everyone would've laughed. You have to prepare for difficult times."

http://www.vanguardngr.com/2015/12/fuel-subsidy-to-go-next-year/

LAGOS — Following increased pressure on revenue and the expenditure profile, the Federal Government has finally yielded to domestic and international pressures to remove fuel subsidy.

This is coming as crude oil prices hit a seven-year low with global reference crude, West Texas Intermediate and Brent trading yesterday at $34.7 and $36.7 per barrel respectively, effectively disrupting Nigeria’s $38 per barrel benchmark for 2016 budget.

The crash has resulted into about N1.45 trillion shortfall in the value of the projected oil output in the international market based on production target increased in the 2016 plan to 2.2 million barrel per day (mbpd), up from actual 1.9 mbpd in 2015.

May God help Nigeria in 2016!!

http://www.proshareng.com/news/download.php?item=LBSdd.pdf

The Federal Government is removing petroleum subsidy in 2016 in order to save 1 Trillion Naira for the economy.

A comment I love from Sahara reporters goes thus...

"While not trying to downplay any of the charges against these alleged criminals, the most mind boggling of them (these charges) are the transfer of N1.45b to Acacia Holdings Limited’s account for special prayers; and the N750m paid into Reliance Referral Hospital Limited’s account for special prayers. That is what the Yoruba people will call “Owo-Adura”; prayer money. This once again confirms to me that I should have been a prayer warrior in Nigeria, and should not have dabbled into other career. On a more serious note, the crafters of the rule of law (and may God bless their wisdom) did not have a country like Nigeria in mind when rule of law was crafted. This is because these animals in human skin that allegedly stole our money, are not supposed to be accommodated under this noble clause. These Oranguntans are not fit to cohabit with civilise human, or be treated under civilise standards . Although we would assume they are innocent until proven guilty (because of this same rule of law), we all know that many of them have already confessed to accepting to use for PDP publicity and electoral victories, money that was designated to fight Boko Haram .

So ideally, rule of law should not be used to prosecute these Oranguntans that put our poor soldiers in arms ways with their “bare-hands” while sharing the money meant to equip them to defend us. Nigeria constitution should be “modified” to allow the State to apply the Rule of Sharia to prosecute the Muslims among these animals, and the Chinese type Rule of law to prosecute the non-Muslim among them. We should stop fooling ourselves: as at now, to fight this endemic corruption,Nigeria does not need the rule of Law that was designed for the West ; or at least, we need to build a strong moral foundation and strong state institutions that will allow rule of law to thrive. We have neither of these now. You would know things are so bad for Fayose to be astounded with these heists, even when no one broke the figures down to him at his level of basic understanding, such as how many ponmo, bag of gaari, kongo of ewa (or any other stomach infastructures unit of measurements), that the stolen money could have bought!!"

Let them come clean

There is definitely going to be a devaluation of the Naira in January. Analysts predict 240 Naira to the Dollar!!

I wish her story can make fp

http://www.telegraph.co.uk/expat/expatlife/12033149/Dear-Nigeria-goodbye-and-thank-you.html

Dear Nigeria,

After some time as your guest in Abuja, I wanted to thank you for teaching me:

Patience. If you’d told me I’d spend a year of my life waiting for a Nigerian visa, I might have backed out of the plan altogether and never made it to Abuja. I am glad I stuck with it. Now, if anyone wants to help with my next visa ...

To thank God. Whether you have faith or not, this is a philosophy worth taking with you through life: be grateful for what you have. One night when I had no power, no water, no phone, no candles and my air con unit caught fire, a friend told me I should thank God my house didn’t burn down and that I had somewhere to sleep. She was right.

That a day can only be improved with a proper greeting. Say it with me: “How is your day?” “How was your night?”
The kindness of strangers. It made such a difference to hear people shout “I hope you’re enjoying Nigeria” at me in the street.
That the British Airways luggage allowance is a target every time you fly. However hard you try, there’ll always be someone with more than you (it might even be me).

That if someone passes you a baby on a plane, not to worry, just to give it a cuddle and wait for someone to take it off you again.
Your names — Christmas, Paradise, Endurance, Peculiar, Loveth — are the most beautiful around.

Always to light a candle when showering in a windowless bathroom. The day you forget is the day your power cuts when you have shampoo in your eyes.

Not to ask, but instead to admire, how a car got to Lagos from California still sporting US plates and bumper stickers. My favourite ever was the car claiming on its bumper to be driven by a Texan policeman, though what he was doing moonlighting as a Lagos cabbie is anyone’s guess.
Exactly where my limits are with pepper.

The answer is somewhere after suya and before goat’s head soup. Don’t push it any further.
That akara (fried bean cakes) are God’s own breakfast. That eating three akara is fine, four is filling, five is piggy and six is unacceptable.

How to dress properly. I will never again think holes, frays or missing buttons are OK when out in public.

Overdressing is not a thing. Too many sparkles are not enough, pink is always better than black.

Politics is in everything. When your rubbish bin disappears under election posters, when every taxi driver knows which ministry the former governor of Rivers State should take on, then you know you’re in a place for political animals.

That no avocado tastes better than the one from your garden tree and no orange is better than a green orange from Benue State.

That a road trip is never complete without a tyre change.

That anything can be bought and sold. There’s a margin for everything so long as you’re skilled enough to find it.

To express gratitude, not annoyance, when someone says “Clementine, you have added – you look so fat.”

How to kill a cockroach in seconds.

That, unless you want to do the above, to check behind the shower curtain before you get in.

The true meaning of the word traffic.

That it’s OK to dance badly so long as you dance a bit, and that it’s OK to have people tell you while you’re dancing that you’re a terrible dancer because everyone knows oyinbo cannot dance.

The romance of Nigerian English. Never again will someone clear glasses from a table with the words “let me decongest this” or park the car saying “let me find some road that’s unencumbered”.

There is no journey a Toyota Camry cannot take on.

That if you need to feel relaxed, there’s Calabar. If you need to go wild, there’s Lagos. That if you want to see history, there’s Kano. That if you want natural splendour, there’s Plateau State or the confluence of the Niger and Benue at Lokoja. There are many Nigerias in Nigeria.

It doesn’t matter what it says your occupation is on paper because it’s all hustle. In my time here I have been a writer, a business advisor and a playschool teacher. I do not yet have a catfish farm but it must be a matter of time.

That what’s in the news should not cancel out the million things that make this country great. You are extraordinary.

My regards to your families,
Clementine

“So many cash payments were made on a monthly basis to the following beneficiaries: Office of the former Vice President, Arc. Namadi Sambo (N20,000,000). The money was being collected by former Deputy Chief of Staff; ADC to former President (amount not known but in cash payment files; Chief Personal physician to former President Goodluck Jonathan; former coordinator on anti-terrorism, Gen. Sarkin Yaki; former Director PC4, Gen. Terba Waya (rtd); Personal Assistant, Domestic Affairs to ex-President Goodluck Jonathan.

“The amounts and frequency of payments to the beneficiaries as well as the list of other beneficiaries are in the cash payment files.

“I also witnessed several payments in cash to various people. Prominent was about payment of N300million to former Chairman on Security and Intelligence, Dr. Bello Matawalle from the cash in the strong room.

“To get details of cash payments in Naira and individuals and organizations summary and vouchers from January 2011 to July 2015, the documents are kept in Yazidu Ibrahim’s former office. These should be collected from the Director of Finance and Administration, Col. Jafaru Mohammed. I and Yazidu Ibrahim can supply the files and the summary.”.He named five firms allegedly used for curious transfers from the ONSA.

His words: “The amounts of the five companies are ACACIA Holdings Limited (N600,000,000) via account no. 1017330319 with UBA and N650million via account no. 0122012650 with ECOBANK Nigeria Limited; Reliance Referral Hospital Limited (N750m) via account no.2022394057 with First Bank Nigeria Plc; Jabbama Global Nigeria Limited(N400m) via account no. 1013898095 with Zenith Bank; Continental Development etc.”

Meanwhile, ex-Minister of State for Finance, ex-Governor Attahiru Bafarawa and his son, Sagir Attahiru and Dalhatu Investment Limited may have to account for over N18.09billion when their trial begins next week.
Part of the cash was for PDP’s ‘Operation Capture North West’.

The cumulative cash does not include the $9.809m allegedly collected by ex-Minister of State Yuguda from ONSA between December 23, 2014 and February 10, 2015.

http://www.pmnewsnigeria.com/2015/12/12/ex-vp-namadi-sambo-received-monthly-stipends-of-n20m-from-dasuki/

Ibrahim Idris Wambai, the former Accounts Officer II, has revealed that that the Office of Nigeria’s former Vice President Namadi Sambo was on a monthly stipend of N20million from the Office of the National Security Adviser (ONSA) led by former NSA, Sambo Dasuki.
He pointed out that some presidential aides also benefitted from slush funds from the ONSA, singling out five firms which were used as platforms by some people to receive funds from the office.

Many prominent Nigerians and leaders similarly drew huge funds from the office.

Records of all cash payments to such individuals and organisations are still intact, he said in a Statement of Witness/Accused Person which was filed by the Economic and Financial Crimes Commission (EFCC) in the High Court of the Federal Capital Territory and obtained by The Nations newspaper.

The certified statement on oath is part of the Proof of Evidence for the trial of nine suspects next week.

He said: “In December 2014, I took cash of N4million to Col. Madaki(rtd) in his residence in Wuse II Abuja. I had made many cash payments to Doyin Okupe, Ahmad Idris (PA to ex-NSA), ADC to former First Lady Patience Jonathan as payments for monthly operation allowances.

“The documents showing evidence of the payments are in the office of Yazidu Ibrahim in cash payment files. The exact amounts paid and date of payments I cannot remember but are available in the files.

“The venue for the collection of the money was my office and the money was given to me from the cash in the strong room.

“So many cash payments were made on a monthly basis to the following beneficiaries: Office of the former Vice President, Arc. Namadi Sambo (N20,000,000). The money was being collected by former Deputy Chief of Staff; ADC to former President (amount not known but in cash payment files; Chief Personal physician to former President Goodluck Jonathan; former coordinator on anti-terrorism, Gen. Sarkin Yaki; former Director PC4, Gen. Terba Waya (rtd); Personal Assistant, Domestic Affairs to ex-President Goodluck Jonathan.

“The amounts and frequency of payments to the beneficiaries as well as the list of other beneficiaries are in the cash payment files
“I also witnessed several payments in cash to various people. Prominent was about payment of N300million to former Chairman on Security and Intelligence, Dr. Bello Matawalle from the cash in the strong room.

“To get details of cash payments in Naira and individuals and organizations summary and vouchers from January 2011 to July 2015, the documents are kept in Yazidu Ibrahim’s former office. These should be collected from the Director of Finance and Administration, Col. Jafaru Mohammed. I and Yazidu Ibrahim can supply the files and the summary.”
He named five firms allegedly used for curious transfers from the ONSA.

His words: “The amounts of the five companies are ACACIA Holdings Limited (N600,000,000) via account no. 1017330319 with UBA and N650million via account no. 0122012650 with ECOBANK Nigeria Limited; Reliance Referral Hospital Limited (N750m) via account no.2022394057 with First Bank Nigeria Plc; Jabbama Global Nigeria Limited(N400m) via account no. 1013898095 with Zenith Bank; Continental Development etc.”

Meanwhile, ex-Minister of State for Finance, ex-Governor Attahiru Bafarawa and his son, Sagir Attahiru and Dalhatu Investment Limited may have to account for over N18.09billion when their trial begins next week.
Part of the cash was for PDP’s ‘Operation Capture North West’.

The cumulative cash does not include the $9.809m allegedly collected by ex-Minister of State Yuguda from ONSA between December 23, 2014 and February 10, 2015.
According to the charge sheet filed by EFCC, the suspects benefited from the said funds between April 14, 2014 and May 7, 2015.

Some of the charges are : “That you Col. Mohammed Sambo Dasuki whilst being National Security Adviser and Shaibu Salisu, whilst being the Director of Finance and Administration in the Office of the National Security Adviser between 14th April and 7th May 2015 in Abuja within the jurisdiction of this Honourable Court entrusted with dominion over certain properties to wit: an aggregate sum of N3.350billion being part of the funds in the account of the National Security Adviser with the CBN, committed criminal breach of trust in respect of the said properties when you transferred same to the account of Dalhatu Investment Limited with United Bank for Africa Plc purporting same to be payment for the supply of security equipment and you thereby committed an offence punishable under Section 315 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Dalhatu Investment Limited, Sagir Attahiru and Attahiru Dalhatu Bafarawa between 14th April 2014 and 7th May 2015 in Abuja within the jurisdiction of this Honourable Court, dishonestly received stolen property, to wit: an aggregate sum of N3.350billion with UBA Plc from the account of the Office of the National Security Adviser(ONSA) with the Central Bank of Nigeria(CBN), which belonged to the Federal Government of Nigeria and knowing the said sum to be stolen property but purporting same to be payment for the supply of security equipment and you thereby committed an offence punishable under Section 317 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Dalhatu Investment Limited, Sagir Attahiru and Attahiru Dalhatu Bafarawa between 14th April 2014 and 7th May 2015 in Abuja within the jurisdiction of this Honourable Court knew that an aggregate sum of N3.350billion directly represented the proceeds of criminal conducts of Col. Mohammed Sambo Dasuki and Shuaibu Salisu who were National Security Adviser and the Director of Finance, Office of the National Security Adviser respectively ( to wit: criminal breach of trust in respect of the said amount) had possession of the said property and you thereby committed an offence punishable under Section 317 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Col. Mohammed Sambo Dasuki whilst being National Security Adviser and Shaibu Salisu, whilst being the Director of Finance and Administration in the Office of the National Security Adviser on or about 20th December 2013 in Abuja within the jurisdiction of this Honourable Court entrusted with dominion over certain properties to wit: N500million being part of the funds in the account of the National Security Adviser with Skye Bank Plc, committed criminal breach of trust in respect of the said property when you transferred same to the account of Dalhatu Investment Limited with United Bank for Africa Plc purporting same to be payment for the supply of security equipment and you thereby committed an offence punishable under Section 315 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Col. Mohammed Sambo Dasuki whilst being National Security Adviser and Shaibu Salisu, whilst being the Director of Finance and Administration in the Office of the National Security Adviser, Bashir Yuguda whilst being the Minister of State for Finance between 5th February and 16th April 2015 in Abuja within the jurisdiction of this Honourable Court entrusted with dominion over certain properties to wit: an aggregate sum of N1.1billion being part of the funds in the account of the National Security Adviser with CBN committed criminal breach of trust in respect of the said property when you transferred same to the account of Jabbama Ada Global Services Nigeria Limited for the purpose of financing the campaign of PDP in the 2015 general election and you thereby committed an offence punishable under Section 315 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you, Bashir Yuguda whilst being Minister of State for Finance between 23rd December 2014 and 10th February, 2015 in Abuja within the jurisdiction of this Honourable Court dishonestly misappropriated certain property to wit: an aggregate sum of $9,809,619 which was an equivalent of the aggregate sum of N1,950,000 belonging to the Federal Republic of Nigeria, which sum was transferred to Jabbama Ada Global Services to be converted into the said dollars and you thereby committed an offence punishable under Section 309 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Col. Mohammed Sambo Dasuki whilst being National Security Adviser and Shaibu Salisu, whilst being the Director of Finance and Administration in the Office of the National Security Adviser, between August 2013 and February 2015 in Abuja within the jurisdiction of this Honourable Court dishonestly misappropriated certain property to wit: an aggregate sum of N1.675billion belonging to the Federal Republic of Nigeria which sum was transferred to the account of Vibrant Resources Limited controlled by Abubakar Dasuki, the younger brother of Col. Mohammed Sambo Dasuki, the then National Security Adviser and you thereby committed an offence punishable under Section 309 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Col. Mohammed Sambo Dasuki whilst being National Security Adviser and Shaibu Salisu, whilst being the Director of Finance and Administration in the Office of the National Security Adviser, Bashir Yuguda whilst being the Minister of State for Finance between 14th April 2014 and 7th May, 2015 in Abuja within the jurisdiction of this Honourable Court agreed to do an illegal act to wit: criminal breach of trust by public officers in respect of an aggregate sum of N5,050b being part of the funds in the account of the National Security Adviser with CBN and that the same act was done in pursuance of the agreement among you and you thereby committed an offence punishable under Section 97 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

“That you Bashir Yuguda, Dalhatu Investment Limited, Sagir Attahiru and Attahiru Dalhatu Bafarawa between 2013 and 2015 in Abuja within the jurisdiction of this Honourable Court agreed to do an illegal act to wit: dishonestly receiving stolen property to wit: an aggregate sum of N4.633b being part of the funds in the accounts of the ONSA and that the same act was done in pursuance of the agreement among you and you thereby committed an offence punishable under Section 97 of the Penal Code Act, Cap 532, Vol.4, LFN 2004.

We need to diversify the economy ASAP!!!

.

Russia claims to have the strategic depth to sit out a long siege. It is pursuing an import-substitution policy to revive its industrial and engineering core. It can ultimately feed itself. The Gulf Opec states are one-trick ponies by comparison.

The deputy premier, Arkady Dvorkovich, told The Telegraph in September that Opec will be forced to change tack. “At some point it is likely that they are going to have to change policy. They can last a few months, to a couple of years," he said.

Kremlin officials suspect that the aim of Saudi policy is to force Russia to the negotiating table, compelling it join Opec in a super-cartel controlling half the world’s production.

.

Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.

Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.

It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti.

The cold blast from Moscow came as US crude plunged to $35.56, pummelled by continuing fall-out from the acrimonious Organisaton of Petrol Exporting Countries meeting last week. Record short positions by hedge funds have amplified the effect.

Bank of America said there was now the risk of “full-blown price war” within Opec itself as Saudi Arabia and Iran fight out a bitter strategic rivalry through the oil market.

Brent crude fell to $37.41, even though demand is growing briskly. It is the lowest since the depths of the Lehman crisis in early 2009. But this time it is a 'positive supply shock', and therefore beneficial for the world economy as a whole.

The International Energy Agency said in its monthly market report that Opec has stopped operating as a cartel and is “pumping at will”, aiming to drive out rivals at whatever cost to its own members. Opec revenues will fall to $400bn (£263bn) this year if current prices persist, down from $1.2 trillion in 2012. This is a massive shift in global wealth.

Russia’s $40 warning is the latest escalation in a game of strategic brinkmanship between the Kremlin and Saudi Arabia, already at daggers drawn over Syria.

The Russian contingency plans convey a clear message to Riyadh and to Opec’s high command that the country can withstand very low oil prices indefinitely, thanks to a floating rouble that protects the internal budget.

Saudi Arabia is trapped by a fixed exchange peg, forcing it to bleed foreign reserves to cover a budget deficit running at 20pc of GDP.

http://www.telegraph.co.uk/finance/economics/12046185/russia-opec-saudi-arabia-bluff-40-oil-price.html

http://www.telegraph.co.uk/news/science/science-news/12027265/Type-2-diabetes-can-be-cured-through-weight-loss-Newcastle-University-finds.html


Millions of people suffering from Type 2 diabetes could be cured of the disease if they just lost weight, a new study suggests.

Scientists at Newcastle University have shown the disease is caused by fat accumulating in the pancreas and losing less than one gram from the organ can reverse the life-limiting illness and restore insulin production.

Type 2 diabetes affects 3.3 million people in England and Wales and, until now, was thought to be chronic. It can lead to blindness, stroke, kidney failure and limb amputation.

“For people with Type 2 diabetes, losing weight allows them to drain excess fat out of the pancreas and allows function to return to normal”

But now researchers at Newcastle have shown that the disease can be reversed, even in obese people who have had the condition for a long time.[b][/b]

18 obese people with Type 2 diabetes who were given gastric band surgery and put on a restricted diet for eight weeks were cured of their condition. During the trial the patients, aged between 25 and 65, lost an average of 2.2 stone, which was around 13 per cent of their body weight.

Crucially they also lost 0.6 grams of fat from their pancreas, allowing the organ to secrete normal levels of insulin.

http://www.thisdaylive.com/articles/nigeria-is-broke-so-what-s-buhari-doing-/226834/


President Muhammadu Buhari must urgently address the nation’s deteriorating economy and stop just talking about it, writes Desmond Afolayan

The presidency in its rejoinder to a recent statement by the PDP upbraided its spokesman, Mr. Olisa Metuh for “unjustly denigrating the president, who continues to strive with all his might to alleviate and reverse the harm done to the nation by PDP’s misrule and corruption.”

The presidency further made several diversionary and hominem attacks on the person of Mr. Metuh and the PDP, failing to address a very serious issue raised by the main opposition party in the country. The presidency needs to be reminded that in a healthy multi-party democracy, the opposition party takes on a crucial role of holding the ruling party and the current administration to account for every action or inaction that can hurt the country, and ultimately help to articulate the frustrations of those, who bear the brunt of bad governance.

The PDP, warts and all, has a role to play in our democratisation journey, while the Muhammadu Buhari administration as the legitimate bearers of the mandate of the Nigerian people also have their role to play.

In this case, the PDP has chosen the very apt concept of De-Marketing to pass across a message. A dispassionate consideration leads any true patriot to agree that it does appear the president's media handlers truly have a challenge in helping their principal play his role as the Chief Marketing Officer of Nigeria effectively, inadvertently de-marketing Nigeria instead.

The global economic space is a very hostile environment not given to sentiments, where visionary governments take every opportunity to sell their countries' competitive advantage while downplaying the challenges and unsavoury aspects about them.

President Buhari needs to be advised to rest his vapid rhetoric about all of Nigeria's woes being caused by his predecessor and the PDP – Nigerians and the rest of the world know that already. He needs to be guided on how to sell Nigeria; he needs to tell us what we don't know.

He should restrict discussions about our flaws to his strategy sessions with his team back home. When he is in the field as a marketer with definite performance targets, he is to convincingly sell Nigeria by highlighting our strengths that make us such a viable country to invest in.

It is pertinent to note that Nigeria needs the international community more than ever before to work with us to address our economic and security challenges. We urgently need fresh foreign direct investments in our economy, not the type that milks our country and increases capital flight, but tangible models that will help bridge our huge infrastructure deficits and broaden the economic opportunities available to our people.

We are best positioned to get at least, a fair end of the stick if we speak from a position of strength, a position that tells that the current administration might have been fazed by the depth of the moral and material rot they inherited, but is energised by a greater force – that of clarity of vision, and the capacity to marshal intelligent and pragmatic solutions. Whining about the past will not help us. Mr. President, Nigeria is broke, so what are you going to do about it?

At some point, our challenges will stop being the fault of former President Jonathan and the PDP. Five months into the tenure of this administration, we are nearing the tipping point when the sun on the Buhari administration’s honeymoon will rise and Nigerians will turn our frustrations in the direction of those, who currently hold the power to make a difference in our lives.

In fact, if the truth be told, some of our challenges have been exacerbated by the absence of neither a coherent economic policy framework nor a cabinet in place to drive the much anticipated changes, long after President Buhari’s assumption of office.

http://www.thisdaylive.com/articles/access-bank-shut-as-enraged-customer-begins-execution-of-n636m-credit-judgment/226828/


Christopher Isiguzo in Enugu

Banking activities were on Tuesday grounded at all the branches of Access Bank within Enugu state as F. G. Onyenewe Motors Nigeria began the execution of a N636 million credit judgment it obtained against the bank.

It was gathered that the legal tussle, which lasted several years, ended at the Supreme Court in April this year, with the ruling in favour of the transport company.

Some newsmen who monitored the execution observed that the court officials carried the bank's properties, including computers and vehicles while the gates were shut against customers.

The exercise, which began at the bank's regional headquarters at the Garden Avenue in Enugu, was also carried out at the Ogui Road branch.

Hundreds of customers ran from one branch of the bank to another in order to make panic withdrawals but it was not possible as banking activities were suspended.

Lawyers to the judgment creditor, court bailiffs and a unit of policemen from Enugu State Police Command enforced the judgment against the bank, which drew hundreds of passersby to the scene.

Speaking to journalists at the Ogui Road branch of the bank, counsel to the plaintiff, Barr. Tagbo Ike, said it was evident that the bank was not financially viable to pay the judgment debt.