₦airaland Forum

By Modupe Gbadeyanka

The sum of $25.46 billion is expected to be raised by the Federal Government from the World Bank, African Development Bank (AfDB) and the Islamic Development between now and 2018.

Also, the Nigerian government will turn to the Japanese International Cooperation Agency and the China Export Import Bank to borrow the money meant to complement the dwindling resources from oil and gas.

It would be recalled that on Tuesday, President Muhammadu Buhari had in a letter to the National Assembly sought the approval of the lawmakers for external borrowing of $29.96 billion to cover the 2016-2018 rolling plan.

Read more here: http://www.businesspost.ng/2016/10/28/fg-borrow-25-5b-islamic-bank-others/

By Ebitonye Akpodigha

During the campaigns ahead of the 2015 general elections, the All Progressives Congress (APC) reportedly promised to pay N5,000 monthly to poor Nigerians. This was hailed by many and caused the party to be massively voted for by the electorates.

However, nearly two years after gaining power, Nigerians have continued to ask when that campaign promise would be fulfilled.

Almost a year ago, November 2015 to be precise, the Deputy Senate President, Mr Ike Ekweremadu, reminded President Muhammadu Buhari of his campaign promises to Nigerians, including the N5000 monthly pay to unemployed youths in the country.

“The ruling APC government must fulfil their campaign promise of paying unemployed Nigerians a sum of 5000 Naira monthly,” he had said on the floor of the Senate Chambers during plenary.

But that promise is about to be fulfilled as the Federal Government has released the sum of N65 billion to address that (monthly stipend) and other National Social Investment Programmes it promised, including the school feeding programme and jobs for unemployed graduates.

Read more here: www.businesspost.ng/2016/10/26/fg-okays-n65b-pay-poor-nigerians-n5000-monthly-stipend/

By Modupe Gbadeyanka

A new data released by the Central Bank of Nigeria (CBN) on its website has revealed that the value of currency-in-circulation is now N1.794 trillion at the end of September 2016.

This, it said, is in contrast to the N1.679 trillion it recorded at the end of August 2016.

Also, the country’s apex bank disclosed that broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts, increased marginally year-on-year from N21.647 trillion as at August 2016, to N22.133 trillion at the end of September.

However, the narrow money (M1), which comprises all physical monies such as coins and currency along with demand deposits and other assets held by the central bank climbed year-on-year to N9.949 trillion in the review month, as against the N9.125 trillion recorded the previous month.

The CBN’s data further showed that banking sector credit to the private sector decreased slightly year-on-year to N22.593 trillion at the end of September, compared with the N22.664 trillion it stood the previous month.

In addition, currency outside banks increased to N1.477 trillion in September, from N1.369 trillion as at the end of August.

The data further revealed that demand deposits, which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution, increased from N7.756 trillion in August, to N8.472 trillion in the month under review.

The latest central bank’s money and credit statistics also revealed that quasi money, which is made up of highly liquid assets that can easily be reserves as reduced to N12.184 trillion as at September, compared with the N12.521 trillion the previous month.

http://www.businesspost.ng/2016/10/26/money-circulation-hits-n1-794tr/

By Ebitonye Akpodigha

Nigerians may have to be getting ready to pay more for electricity they consume, barely eight months they were earlier forced to do so by the government.

This is because power firms in the country are appealing to the Federal Government to approve another increase in electricity tariff by 200 percent.

They last increment done was by 45 percent, though there have been a slight improvement in electricity supply in some parts of the country. However, most consumers are yet to be metred by the power firms.

The power distribution companies fondly called DISCOs have written a proposal to the government, asking for the go-ahead to charge electricity consumers in Nigeria an average energy charge of N105 per kilowatt-hour from the current approved rate of 22.8KWH.

According to Punch, the DISCOs attributed their latest push for tariff increase to high inflation rate in the country, scarcity of foreign exchange, devaluation of the naira and the huge debts being owed them.

Already, they have hinted the Nigerian Electricity Regulatory Commission (NERC) about the proposal but no action had been taken on it yet.

Chief Executive Officer, Association of Nigerian Electricity Distributors, an umbrella body for the DISCOs, Mr Azu Obiaya, confirmed the latest agitation for tariff increase, in an interview with our correspondent, stressing that it was important to raise the tariff in order to remain in business and serve the people well.

Mr Obiaya said, “To review the tariff, we will be looking at an average rate of N70 per kilowatt-hour for residential consumers. But some Discos will like to have the rate as high as N105/kWh.”

Each Disco has a fixed energy charge payable by its customers. The highest charge, according to documents obtained by our correspondent from NERC for the year 2016, is N32.26/KWH and this is payable by R2 consumers under the Jos Electricity Distribution Company.

The lowest energy charge of N15.83/KWH is payable by R2 customers who get power from Ikeja Electricity Distribution Company.

A further analysis shows that the average energy charge for all the 11 Discos is N22.8/KWH.

But the Discos were said not to be comfortable with the current rate, as they argued that it was not cost reflective and was hampering the required expansion of infrastructure as well as the smooth flow of operations.

Mr Obiaya, who spoke to our correspondent on the sidelines of a power dialogue in Abuja on Thursday, said the debts owed power distribution companies by private homes, businesses and government ministries, departments and agencies post-privatisation amounted to N568bn.

He also stated that one reason many Discos had not metered their customers was due to the huge debts owed them, as well as the tariff issue.

This, he said, had hampered the operations of the different Discos, a development that had made it difficult for the companies to meet the funds remittances required of them by the Market Operator.

Mr Obiaya said, “Discos are experiencing revenue shortfall on a monthly basis of N38bn. As of June 2016, the MDAs owed the Discos N53bn post-privatisation.

“The books of the Discos are so bad that they have no chance anymore to access finance. These books do not reflect the cash flow that is necessary for them to be taken seriously by any lender.”

A senior official at NERC told our correspondent that although the Discos had been calling for an upward review in tariff, the regulator had not considered their demand.

“The minor review of tariff is ongoing at present but NERC has yet to consider their plea for such increase in tariff, although the economic fundamentals in Nigeria have seriously changed and are now so high,” the official said.

When contacted, the National Secretary, National Electricity Consumers Advocacy Network, Mr Obong Eko, stated that NECAN would never support such move.

He described the move as the peak of insensitivity to the flight of Nigerian masses.

He said, “They’ve been flying the kite for some time now because the last time tariff review was done was when the exchange rate for one United States dollar was about N190. But now, one dollar is close to N500; and the price of gas in the international market has gone up too.

“Despite all these, it will still be so unreasonable to come out to announce an increase in tariff now that Nigerians are going through severe suffering. Are they aware that people are dying of hunger? We can never support such move and we will resist it.”

http://www.businesspost.ng/2016/10/23/discos-demands-200-electricity-tariff-hike/

By Modupe Gbadeyanka

Largest aircraft manufacturers and leasers in the world, Airbus Group, will establish an operational office in Nigeria, the French Ambassador to Nigeria, Mr Denys Gauer, has disclosed.

Mr Gauer made this known when he visited the Minister of State for Aviation, Mr Hadi Sirika, in his Abuja office recently.

A statement signed on Thursday by the Deputy Director, Press and Public Affairs, Ministry of Transportation, Mr James Odaudu, explained that the ambassador said the decision of Airbus to start an office in Nigeria was a mark of confidence in the Federal Government’s agenda for the aviation industry.

Vice President of Airbus Group for Africa, Mr Vincent Larnicol, who was also present at the visit, disclosed that his company decided to set up its Nigerian office because the country remains a very big market for the aviation industry in Africa.

Mr Larnicol commended the FG for taking huge steps in growing the aviation industry and promised to work together with Nigeria in the establishment of an Aviation University through its Cooperation Programme.

The Airbus chief further said his company was also interested in the plans of government to concession four major airports in the country as well as the establishment of a national carrier.

In his remarks, the Minister expressed gratitude to the delegation for the visit. He echoed that it was because the government was getting things right in the sector.

Mr Sirika emphasised that the FG was determined to concession four major airports in the country to make them more viable and up to global standards as well as re-position domestic airlines to make them competitive and profitable.

He said Nigeria was ready to partner with all genuine investors.

According to him, the government was committed to the establishment of Maintenance, Repair and Overhaul facilities and development of human capital for the anticipated expansion of the sector.

http://www.businesspost.ng/2016/10/20/airbus-expresses-interest-buy-nigerias-airports/

By Modupe Gbadeyanka

The Nigerian Stock Exchange (NSE) stopped its three-day losing streak at the end of trading on Thursday. This brought a relief to many stock market investors.

The stock market recorded a gain of N41.322 billion on Thursday against N26.5 billion it lost on Wednesday this was also the case with the all-share index, which jumped by 0.44 percent today to close at 27,598.34 points, showing a gain of 120.3 points.

Business Post correspondent reports that the market capitalisation, which ended yesterday at N 9.438 trillion, finished today at N9.479 trillion.

A total of 16 stocks appreciated at the close of activities on Thursday, while 14 equities recorded various slumps.

Seplat topped the gainers’ chart today with a gain of N7 to close at N368 per share, GTBank trailed by gaining N1.19k to finish at N24.49k per share, while Guinness added by N1.9k to end at N80 per share.

Mobil finished fourth with an appreciation of N1 to close at N187 per share and International Breweries finished at N19.95k per share after taking up 95k.

At the other end, ETI lost 40k to close at N10.13k per share, leading the losers’ chart.

It was closely followed by Dangote Sugar, which shed 14k to finish at N6.26k per share, NAHCO fell by 13k to close at N2.92k per share, AFRIPRUD also dipped by 13k to end at N2.56k per share, while Custodian and Allied Insurance Plc (CUSTODYINS) went down by 9k to close at N3.71k per share.

Investors traded 111.898 million shares today at the stock market in 2,699 deals valued at N4.012 billion.

To sponsor Business Post Nigeria daily NSE report, kindly contact us via 08180851450 or businesspostnigeria@gmail.com

http://www.businesspost.ng/2016/10/20/nse-index-bounces-back-0-44-leap/

By Modupe Gbadeyanka

Nigeria has commenced discussions with the Islamic Development Bank (IDB) on how to obtain sukuk to probably fund the 2017 budget.

Specifically, Nigeria is speaking with the investment arm of the Saudi Arabia-based IDB, the Islamic Corporation for the Development of the Private Sector (ICD), about this.

This, the Africa’s biggest economy, desperately needs as a way to get different sources of funding to reflate its dwindling economy.

Sukuk is an Islamic bond structured to generate returns to investors without infringing Islamic law, which prohibits interests or riba.

Chief Executive Officer of ICD confirmed on Tuesday at the Africa Islamic Finance Forum 2016 in Cote d’Ivoire that his organisation was in talks with Nigeria on a possible sukuk deal.

He noted that as soon as Nigeria agrees terms, the deal would be sealed.

Nigeria has struggled revive its economy, which fell into recession largely due to drop in the price of crude oil, its major source of revenue.

Also, renewed attack on oil installations by militants in the Niger Delta region of the country, where the oil is extracted from, has contributed to it.

Nigeria also majority imports what it consumes and this has weakened the country’s currency, the Naira, against major international currencies, including the Dollar, Pounds and Euro.

http://www.businesspost.ng/2016/10/20/nigeria-talks-saudis-islamic-bank-sukuk-deal/

By Modupe Gbadeyanka

A special foreign exchange auction on Wednesday fell short of expectation, making Nigeria’s overnight interbank rate to crash badly.

Business Post correspondent reports that the rate slumped to around 20 percent from 150 percent.

This was after the Central Bank of Nigeria (CBN) traded less hard currency than expected at the special auction, which was expected to yield a good result

It was gathered that Dollars were exchanged at a range of 310 to 350 per Dollar by the CBN.

According to our correspondent, banks now have more surplus liquidity from funds not used to purchase hard currency.

They had been required to fund their accounts to partake in the auction, which consequently allowed the cost of borrowing to rise.

http://www.businesspost.ng/2016/10/19/nigerias-overnight-interbank-rate-falls-20/

By Modupe Gbadeyanka

Investors at the Nigerian equities market lost about N26.5 billion at the end of trading activities on the Nigerian Stock Exchange (NSE) on Wednesday, October 19, 2016.

Since the beginning of trading of equities this week, the market has performed badly resulting into a total loss of about N105 billon on Monday and Tuesday alone.

Today, the all-share index dropped by 77.27 points or 0.28 percent to finish at 27,478.04 basis points.

The market capitalisation on Wednesday fell by N26.5 billion to close at N9.438 trillion compared to N9.464 trillion it ended the previous day.

Total led the losers’ chart today with a loss of N13.97k to close at N290 per share and was trailed by Forte Oil, which shed N10.57k to finish at N127.30k per share.

Ashaka Cement depreciated by N1.46k to end at N13.57k per share, International Breweries dipped by 99k to close at N19 per share and GlaxoSmithKline fell by 83k to finish at N15.78k per share.

Investors today exchanged a total of 81.913 million units of shares in 2,520 deals valued at N592.524 million.

The top gaining stocks today were led by Stanbic, which chalked up 50k to close at N17 per share and was followed closely by CAP, which also gained same amount to end at N33.75k per share, while WAPCO added by 30k to close at N43 per share.

Flour Mill went up by 23k to close at N20 per share and Access Bank grew by 3k to end at N5.55k per share.

FCMB emerged the most traded stocks on Wednesday with investors staking N18.043 million on 16.435 million of its shares, while Transcorp followed 8.570 million shares sold valued at N8.517 million. UCAP sold 7.650 million shares worth N19.797 million.

http://www.businesspost.ng/2016/10/19/stock-market-investors-lose-n26-5b-wednesday/

By Dipo Olowookere

Governor Akinwunmi Ambode of Lagos State has carried out a minor cabinet reshufflement, which has affected three Commissioners.

A statement issued by Secretary to the State Government, Mr Tunji Bello, on Wednesday disclosed that the Commissioners dropped by Mr Ambode are that of Tourism, Finance and Transportation.

It was stated in the press release that the dropping of Commissioners for Tourism, Mr Folorunsho Folarin-Coker; Finance, Dr Mustapha Akinkunmi and Transportation, Dr Ekundayo Mobereola, “comes exactly one year after the Governor constituted his Executive Council, precisely on October 19, 2015.”

The Governor has directed the Special Adviser, Arts and Culture to take over as the Acting Commissioner for Ministry of Tourism and Culture, Special Adviser on Transportation will take over as Acting Commissioner for Transportation while the Permanent Secretary in the Ministry of Finance takes over as the Acting Commissioner for Finance pending the appointment of new Commissioners in the respective ministries.

“The statement adds that the Governor expresses his appreciation to the former Commissioners for their service to the State and wished them well in their future endeavours.

http://www.businesspost.ng/2016/10/19/breaking-ambode-sacks-3-commissioners/

By Dipo Olowookere

Lagos State Governor, Mr Akinwunmi Ambode, has approved the payment of bursary and local scholarship to Lagos State indigenes in tertiary institutions across the country.

Special Adviser to the Governor on Education, Mr Obafela Bank-Olemoh, who made the announcement to journalists on Monday, said the bursary would be for fresh beneficiaries and others receiving subsequent payment.

He listed the beneficiaries to include 2015/2016 set and other sets receiving second and third payments for the years 2013/2014 and 2014/2015.

While stressing the commitment of the State Government to sustain the scholarship and bursary scheme in spite of the economic situation of the country, Mr Bank-Olemoh said the Governor is committed to ensuring Lagosians are empowered through education to contribute productively to the local and global economies.

He further said that "the timely release of the awards demonstrates the priority the administration of Governor Akinwunmi Ambode accords to educating its citizens".

Giving a breakdown of the payment, the Executive Secretary of Lagos State Scholarship Board, Mr Steven Oshinowo, explained that the State Government would disburse N250.5 million to 6,368 beneficiaries as Bursary Award.

He also disclosed that N130.1 million in Local Scholarships will be disbursed to 573 successful candidates who took part in the 2015/2016 Local Scholarship Computer Based Screening test.

These sums, according to him, would accommodate the backlog of outstanding bursary and scholarship payments, as well as current awards for fresh and subsequent beneficiaries.

The Executive Secretary urged the beneficiaries to exercise patience as disbursement of the funds will commence in three weeks, at which time beneficiaries would be invited to present relevant documentation to receive their bursary or scholarship awards.

It will be recalled that earlier this year, over 689 bursary beneficiaries of 2011/2012 set, were paid along with 60 students from the School of the Blind and 54 others on Sport Scholarship.

In 2015, the State government also paid N660 million to over 8,567 indigent beneficiaries for bursary, local and foreign Scholarships.

Since its establishment in 1968, the Lagos State Scholarship Board as an agency responsible for the administration of bursary and scholarship awards in the State, has been consistent in carrying out its duties and is poised to continue.

http://www.businesspost.ng/2016/10/17/ambode-okays-n380m-bursary/

By Modupe Gbadeyanka

The stock market could not maintain the positive momentum gained last Friday at the close of activities on the Nigerian Stock Exchange (NSE) today.

The market, which had bounced back from consecutive losses last Friday, recorded a huge slump on Monday with the all-share falling by 226.04 basis points or 0.80 percent to finish at 27,634.99 basis points.

Likewise, the market capitalisation, which ended at N9.569 trillion last week, closed at N9.492 trillion today, indicating a whopping loss of N77.639 billion.

Market analysts informed Business Post that today’s giant slump was primarily caused by price loss recorded by major blue chip stocks.

Forte Oil led the pack with a drop of N7.25k to close at N137.87k per share, while Seplat followed with a plunge of N5.88k to finish at N380 per share.

Nigerian Breweries lost N4.65k to close at N144.5k per share, GlaxoSmithKline shed 91k to end at N17.48k per share and Cadbury depreciated by 78k to close at N14.89k per share.

At the other end, Wema Bank and Africa Prudential Registrars grew by 4k each to finish at 66k and N2.72k per share respectively, while FCMB gained 3k to close at N1.14 per share.

WAPIC added by 2k to finish at 52k per share and NASCON appreciated by 1k to end at N8.1k per share.

Investors rushed the stocks of Law Union and Transcorp today as measured by the volume of their shares traded.

While Law Union sold 100.012 million units valued at N70.008 million, Tanscorp traded 49.561 million shares worth N49.620 million.

Costain traded 32.064 million shares at N16.032 million, First Bank Holdings traded a total of 15.367 million units valued at N46.031 million, while UBA sold 10.123 million shares worth N42.836 million.

At the end of trading today, a total of 255.809 million units of shares were sold in 2,588 deals worth N778.437 million.

To sponsor Business Post Nigeria daily NSE report, kindly contact us via 08180851450 or businesspostnigeria@gmail.com

http://www.businesspost.ng/2016/10/17/nse-indices-plunge-n77-6b-forte-oil-tops-losers/

By Dipo Olowookere

No fewer than 17 personnel of the Nigeria Customs Service (NCS) have been dismissed over issues relating to drug addiction, certificate forgery and others.

A statement signed by Mr Wale Adeniyi, Public Relations Officer of NCS on behalf of the Comptroller-General of Customs, Mr Hameed Ibrahim Ali, also disclosed that the appointment of two other officers was terminated for absence from duty.

“Investigations into offences committed by the officers in the senior category are now being concluded. Officers found guilty are expected to face similar stiff penalties,” the statement issued on Sunday emphasised.

It explained that, “These disciplinary measures were taken after series of investigations and deliberations by the disciplinary committee and recommendations were made to the management.”

Mr Adeniyi concluded in the statement that, “This process is a continuation of the reform agenda the Comptroller-General of Customs, Col. Hameed Ibrahim Ali (Rtd) promised upon his assumption of office which emphasized discipline, good conduct and transparency.”

http://www.businesspost.ng/2016/10/16/customs-fires-17-officers/

By Dipo Olowookere

Last week, President Muhammadu Buhari travelled to Germany on an official visit. During the trip, he addressed the media in Berlin alongside his host, Angela Merkel, the Chancellor of Germany.

After his address, questions were received from newsmen at the event and Mr Buhari was asked to react to an interview his wife, Mrs Aisha Buhari, granted the BBC, where she claimed a cabal had taken over her husband’s government.

Mr Buhari gave a response that has set the cyber space on fire since then and even caused his host in Germany to abruptly end the briefing.

Business Post Nigeria has got hold of what Mr Buhari actually said during the press briefing and it is reproduced below:

I am very grateful to you for this invitation. The Germans have always been concerned about Nigeria. This is very welcome, and we are grateful for it.

They invited me here during the G7 presidency. They asked me to provide the G7 with a report on the security situation in Nigeria, but above all in the region. I have done this very much and I have submitted a report to the G7.

I have mentioned on this occasion that Boko Haram has been considerably restricted in its possibilities. 14 of 177 local regions are still left where they actually have an influence, where they actually hold something like a caliphate.

But there is no real power that they have over any of our communal, regional authorities. In the meantime, they have, of course, concentrated on schools, mosques and markets in their attacks. But this possibility to carry out such attacks is also largely taken away.

We received economic and humanitarian aid from the Federal Republic of Germany. In this way, Nigeria has been enabled to expel terrorists from these areas.

The second point is the economy. We are very grateful for the fact that we have been offered training opportunities. There are about 100 German companies operating in Nigeria - most of them in the manufacturing sector. This means that the Nigerians have not only jobs, but also training opportunities. For this we are very grateful.

The new security problem that has emerged is, above all, that there have been acts of sabotage against institutions of the oil industry in the Niger Delta. I have already submitted a detailed report to the German Government, and this will continue.

We will say what we need for help, for example, information of a message service type or other, but also ways to provide us with equipment. With the leadership of the militants in the Niger Delta, with the traditional institutions there, we are currently talking. But oil companies, which have been operating in Nigeria for more than 30 years, must of course also participate in this dialogue.

As far as the economy is concerned, it is this year that we have had a lot of rain in Nigeria and we expect a very good crop so that the problems with the food imports will not be so great. We will not be so dependent on it. In a few months we will be able to create food security and even export food. Most of the foods that we have imported were, for example, wheat, maize and rice. I think in about 18 months we will be self-sufficient in this area.

As for the girls from Chibok, you have probably learned that 21 of these girls have been released. But still 100 of these girls are somewhere in the area around Lake Chad, Cameroon, Niger or Nigeria. Where they are, we do not know exactly. We have been able to free these 21 girls. We hope that we can provide it with the appropriate information to find even more and to find out. We are very grateful to the United Nations who have participated in the mission of saving these girls. But please do not forget that the whole thing takes place against the background of terrorism in Nigeria. Thousands of Nigerians have been killed by Boko Haram. There are 1.5 to 2 million people who are internally displaced and have to live in camps for internally displaced persons. At least 60 percent of them are women and children. 60 percent of these children are orphans who do not know their parents and do not know where they come from. This is a great concern for my government, which we must face. We must, of course, provide the appropriate infrastructure, especially in education and health, so that these children and displaced persons can return to their region, their city, their village and live a normal life. That is why we are very grateful for the support given by the German government. We hope for further support whenever we need it and ask for it.

Thank you very much.

Question and answer time

I come from Nigerian television. Federal Chancellor, Mr Buhari has devoted himself to combating corruption. One option he pursues is to retrieve funds outside the country. What do you do to help him? As you have said, you appreciate him.

Merkel: I appreciate him very much. We will, if he has hints, follow these instructions, of course. In all that the President has to say to Germany, we will, of course, look to help him work against corruption.

In addition, our finance minister has worked very hard to ensure the international exchange of information is compulsory. This means that in the future, it will be much harder to deal with such corrupt business. As countries, we will also work much more closely with banks to pursue all traces.

I have a question to the President. In the context of the migration crisis, the importance of re-transferring the foreign Nigerians is always written and reported. How important are these retransferments for the Nigerian economy?

Your woman has today given an interview in which she said she does not support you in the 2019 re-election if you do not transform your government. Maybe you can comment on that. Are you ready to meet your wife's demands?

Buhari: I do not know exactly which party my wife belongs to. Actually, she belongs to my kitchen, my living room and also to the other rooms in my house. It is not easy to deal with the opposition, with those who were not with one in the election campaign. I hope that my wife will remember that I was 12 years in the field, that I have tried three times to win. The fourth time I was successful. The first three times I was in Nigeria's highest court. So I would say that I know better about all this.

I think I know better than the members of the opposition. After all, my efforts had been successful. It is not so easy to satisfy everyone, the entire opposition of Nigeria and all parties there. They all want to be at the government, of course.

Perhaps I may briefly tell you what we have inherited.

From 1999 to 2014, Nigeria averaged 2.1 million barrels of oil per day at a price of $100. Then we had less than 40. It must also be said that the production by the actions of militants has reduced by half. This means that Nigeria has inherited a huge problem. You certainly know that 27 of the 36 states could not pay salaries to their employees. That is, there were very serious economic problems, problems of security, business, corruption, problems we try to resolve to the best of our knowledge.

I told you what the problem was with Boko Haram. We almost succeeded in preventing them from dominating somewhere in Nigeria. As far as the economy is concerned, we have now concentrated on agriculture. We ask you to invest primarily in the mineral sector, in the field of mineral resources.

In the Niger Delta, too, we have turned to the militant leadership and the people they support locally. We have approached the oil companies, which have been operating in the country for a long time, more than 30 years, and know the whole environment, including the local people. We want to negotiate with them, so that there will be a truce.

The government has the ability and the ability to cope with these people, just as we have come to terms with Boko Haram. But it is in the interest of Nigeria and all regions of Nigeria that we solve these issues through dialogue, as a much more civilized way of dealing with each other.

Your country has opened its doors to a large number of refugees from other countries, with a great deal of insecurity and a great deal of poverty. But this is now a problem for you. How can you prevent such a destabilization from happening to you and also in Nigeria?

Merkel: Firstly, we must, of course, be politically committed to peace and security. This is very difficult, for example, in Syria or Iraq. We are therefore all the more pleased that much has already been achieved in the fight against terrorism in Nigeria and at Lake Chad.

People who do not really live peacefully have big problems, of course. But there are also the economic problems. We have said in Germany that we want to give protection to many who have come to us because of war and expulsion. This is why the rate of recognition in legal proceedings is very high, for example, for people from Syria and Iraq. But for people coming from Nigeria, the recognition rate is only 8 percent. That is, we must assume that many come for economic reasons. We can understand that. But we must then say that in order to provide humanitarian protection to those who really flee before the war, we must return to those who do not have a right of residence in Germany.

This is what the European Commission is talking about. We also talked today about how we can do this and send out the signal at the same time: We want to put the smugglers and the traffickers the craft. But we also want to help people who are in need in Nigeria. That is why we want to offer those who do not go on the illegal path, for vocational training, for training, for the acquisition of skills, so that they have a better chance of achieving a good future for themselves. Then this is good for both sides.

There can be no business about corruption, illegal trafficking, arms trafficking, drug trafficking - all of which are connected - and states are destabilized, but we are working together as states, so that the people of Nigeria have some of it and at the same time the signal "Those who do not have a right of residence in Germany - 92 per cent of the people from Nigeria who come to us - have to return" to stop the illegality.

You said you had talked about the problem of return. Have you received any commitments, or do you intend to conclude a regular return contract with Nigeria?

Just a quick glance into the next week: Are you confident that a meeting in Normandy will be held here in Berlin?

Merkel: As for the next week, I cannot say that yet, because I have to wait and see what messages I get from the now ongoing conversations on the workbene. We keep this open, but we have not yet reached the decision.

On your first question: the negotiations with the European Commission are only starting in October. That is, we have not made specific arrangements today. But I have, of course, said that Germany supports these negotiations by the European Commission, and that in return, both on the basis of the Valletta agreement, we can use both European and German resources, especially to promote legal opportunities for vocational training that illegality can be combated. But we have not discussed details yet.

www.businesspost.ng/2016/10/16/full-text-buharis-controversial-press-briefing-germany/

By Ebitonye Akpodigha

Wife of President Muhammadu Buhari, Aisha, has lamented that those who did not work for her husband’s victory have taken over his government.

Mrs Buhari made this statement in an interview with the BBC Hausa, which was conducted by Naziru Mikailu.

It was reported yesterday that the Presidency does not the UK-based media house publish the said interview on Saturday as it could be embarrassing to the government. It was also rumoured yesterday that Mr Buhari, who is away in Germany, has directed his wife to stop granting interviews.

In a report on Friday, the BBC said Mrs Buhari disclosed in the interview that she may not campaign for her in 2019 if things continue the way they are presently.

“I have decided as his wife, that if things continue like this up to 2019, I will not go out and campaign again and ask any woman to vote like I did before. I will never do it again,” the President’s wife said.

She expressed worry that those that did not have the vision of the ruling All Progressives Congress (APC) were now in charge of President Buhari’s administration.

“Some people are sitting down in their homes folding their arms only for them to be called to come and head an agency or a ministerial position,” she reportedly said in the interview.

Mrs Buhari disclosed that the President “does not know” most of the top officials he has appointed, suggesting her husband’s government had been hijacked.

Asked if Mr President was in charge, she said, “That is left for the people to decide.”

She also said “few people” were behind presidential appointments.

“The president does not know 45 out of 50, for example, of the people he appointed and I don’t know them either, despite being his wife of 27 years,” the President’s wife was quoted to have said in the interview to be aired in full tomorrow.

When asked to name those who had hijacked the government, Mrs Buhari said, “You will know them if you watch television.”

According to her, one of the major achievements of her husband in his almost two years in office is the relative peace restored in the north east.

“No-one is complaining about being attacked in their own homes. Thankfully everyone can walk around freely, go to places of worship, etc. Even kids in Maiduguri have returned to schools,” Mrs Buhari said.

http://www.businesspost.ng/2016/10/14/husbands-government-hijacked-strangers-aisha-buhari/

By Modupe Gbadeyanka

Nigeria has raised a total of N95 billion in local currency denominated bonds at an auction on Wednesday, October 12, 2016, which was carried out by Debt Management Office (DMO) on behalf of the Federal Government.

Data obtained by Business Post from website of the DMO on Thursday disclosed that the FG obtained N10 billion of 2021 paper at 15.29 percent with a maturity of 4 Years, 9 Months (July 15, 2021). The settlement date for this bond is October 14, 2016.

The debt office had initially offered to sell N35 billion in this segment, but investors were not attracted to the offer.

Instead, investors went for the same amount advertised for the 10-year bond period, which raked N45 billion at 15.47%. The maturity of this bond is January 22, 2026.

Also, the DMO sold N40 billion of 2036 paper (20-year) at 15.48 percent at the Wednesday's auction, with the maturity precisely on March 18, 2036.

Business Post correspondent gathered that the DMO was not willing to pay more for 12-17 percent yields asked for on all debt offers by most investors at the auction yesterday.

http://www.businesspost.ng/2016/10/13/fg-raises-n95b-local-bond-auction/

By Ebitonye Akpodigha

The Presidency has confirmed the release on Thursday morning of 21 out of the over 200 schoolgirls kidnapped by Boko Haram group in 2014.

In a statement issued Thursday by the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, disclosed that the 21 girls were now in the “custody of the Department of State Services (DSS).”

According to him, “the Director-General, Malam Lawal Daura just finished briefing President Muhammadu Buhari.”

He said further in the statement that, “The release of the girls, in a limited number is the outcome of negotiations between the administration and the Boko Haram brokered by the International Red Cross and the Swiss government.”

The negotiations, Mr Garba said, “will continue.”

“The President welcomes the release of the girls but cautioned Nigerians to be mindful of the fact that more than 30,000 fellow citizens were killed via terrorism.

“Malam Lawal wants the girls to have some rest, with all of them very tired coming out of the process before he hands them over to the Vice President, Professor Yemi Osinbajo,” the Presidency said.

“The names of the released girls follow shortly,” Mr Shehu concluded.

http://www.businesspost.ng/2016/10/13/presidency-confirms-release-21-chibok-girls/

By Modupe Gbadeyanka

Following the takeover of Visafone by MTN, the Nigerian Communications Commission (NCC) has approved the transfer of Visafone shares to MTN as requested.

MTN had written the independent regulatory body for the telecommunications industry in Nigeria to allow it transfer shares of the former CDMA service provider into its own.

But on Tuesday, October 11, 2016, the NCC, in a statement, said it has now given MTN the nod to carry out the request.

Part of the statement read, “The NCC, in line with its procedure granted a Final-Approval to Visafone for the change in its shareholding structure.”

The NCC further said it was yet to approve the request by Visafone to transfer its licence to MTN.

It would be recalled that in January, MTN acquired Visafone.

http://www.businesspost.ng/2016/10/12/ncc-okays-transfer-visafone-shares-mtn/

By Dipo Olowookere

South Korean company, Samsung Electronics, has halted the production of the Galaxy Note 7, which has had battery explosion issues lately.

Samsung disclosed that it would no longer manufacture the flagship smartphone.

This is coming weeks after the company requested for a global recall of the product after there were initial complaints about the phone’s battery overheating and subsequently catching fire.

In Nigeria, the Nigerian Civil Aviation Authority (NCAA) banned the use of Samsung Galaxy Note 7 on board aircrafts because of the manufacturing flaw.

Business Post has learnt that the Galaxy Note 7 woes have caused a sharp drop in the value of Samsung Electronics shares at the stock market.

The company has struggled to maintain its market share since the issue started, which came almost a week before its arch competitor, Apple, launched its iPhone 7 smartphones.

When Samsung launched the 5.7-inch screen Galaxy Note 7 smartphone, it won the admiration of many high-end mobile phone users, especially because it was water resistant and had curved contours.

http://www.businesspost.ng/2016/10/11/samsung-stops-production-galaxy-note-7/

By Modupe Gbadeyanka

Authorities of the Adekunle Ajasin University, Akungba-Akoko (AAUA), Ondo State, have directed students of the institution to return to campus immediately.

In a circular issued on Tuesday by the school’s Registrar, Mr Michael Sunday Ayeerun, the Vice Chancellor, Professor Igbekele Amos Ajibefun, on behalf of the Senate, “approved that students should resume immediately for the remaining part of the Second Semester 2015/2016 academic session.”

Mr Ayeerun stated further that “lectures will commence on Monday, 17th October, 2016.”

According to him, “This directive is sequel to the suspension of the strike action embarked upon by the Adekunle Ajasin University Chapter of the Academic Staff Union of Universities (ASUU) since July, 2016.”

He also said, “Students living on campus are expected to check into their respective halls of residence immediately.”

Concluding, the Registrar said, “All staff and students are to note the contents of this circular and ensure that the academic calendar is accomplished in the interest of the system.”

http://www.businesspost.ng/2016/10/11/aaua-orders-students-resume-immediately/

By Ebitonye Akpodigha

The Federal Government has announced on Tuesday that the implementation of its Social Investment Programmes would commence before the end of this month.

This, according to a statement issued in Abuja by the Senior Special Assistant on Media and Publicity to the Vice President, Mr Laolu Akande, is in fulfilment of the government’s campaign promises.

Mr Akande noted that the Vice President, Mr Yemi Osinbajo, confirmed that implementation plans for the effective commencement of a number of the Social Investment programmes of the Buhari presidency has reached advanced stages as the selection of the first 200,000 unemployed graduates to get jobs is now being completed.

According to the statement, Mr Osinbajo made this known while fielding questions in an interview with a small group of radio journalists and producers at the Presidential Villa.

“We expect that before the end of the month, we will engage 200,000 out of the 500,000 unemployed graduates the Buhari administration plans to hire in the N-Power jobs programme.

“The direct government jobs are meant to keep these young people occupied, pay them some amount of money and also give them a device, which will also help them to learn several skills that they can develop as time goes on.

“We expect that before the end of this month, we should have engaged 200,000 of them and we are hoping that before the end of the year we should have engaged more,” the statement quoted Mr Osinbajo as saying.

The Vice President explained that on the Home-Grown School Feeding programme, this will kick off in several states by the end of October.

“Definitely before the end of this month, we expect that several states would have come on stream with their Home-grown School Feeding Programmes.

“This will energise agriculture in the different states because it is what you plant that you feed the children with, we will be hiring caterers, cooks, etc in each state because it will be Federal Government funded from Primaries 1-3 and the state governments hopefully would be able to cater for the other classes,” Osinbajo was further quoted as saying.

http://www.businesspost.ng/2016/10/11/fg-employ-200000-graduates-october/

By Modupe Gbadeyanka

President Muhammadu Buhari has revealed to Nigeria what he plans and dreams for the country despite what people think about him.

Mr Buhari, speaking at the opening ceremony of the 22nd Nigerian Economic Summit (NES) in Abuja, said he was doing everything possible to make Nigeria work again.

According to the President, Nigeria needs to diversify her economy and not rely on crude oil alone again.

The President, while declaring the occasion open on Monday at the Transcorp Hilton Hotel, said he dreams of Nigeria with an export economy in goods and services.

“We need to diversify the economy so that we can produce the food we eat, make our own textiles, produce most of the things we use and create the right environment for our youth to create jobs through ICT,” he said.

Mr Buhari further said, “My greatest desire is that Nigeria moves from import dependence to self-sufficiency in local production and become an export economy in goods and services.”

He commended the NESG for the platform, noting that it has over the years strengthened the relationship between the public and private sectors.

http://www.businesspost.ng/2016/10/11/greatest-desire-nigeria-buhari/

By Ebitonye Akpodigha

Commissioner for Works and Housing in Nasarawa State, Mr Godwin Makeri, disclosed on Monday that the sum of N400 million would be used to construct two pedestrian bridges in the state.

Mr Makeri, while inspecting the progress of work on the bridges at the Mararaba Orange Market in Karu Local Government Area of the state, said the projects, when completed, would reduce the plight of commuters wanting to cross the highway to enter the market.

The Commissioner appealed to the contractor handling the bridges to ensure speedy completion of the projects to bring development to the state.

He assured the state government’s commitment to initiating projects that would touch on the lives of residents of the state.

“I am here to inspect the bridges at the Mararaba Orange Market and see by myself the quality of the job done so far by the contractor.

“The importance of embarking on the construction of roads and bridges by any government cannot be over-emphasised.

“Apart from boosting the socio-economic development and the revenue base of the state, it will also help in reducing the plight of the people.

“That is why the State Government has decided to embark on bridges and road construction across the state in order to fight poverty, youth restiveness and unemployment,” Mr Makeri said.

http://www.businesspost.ng/2016/10/10/nasarawa-build-2-pedestrian-bridges-n400m/

By Modupe Gbadeyanka

Most stock exchanges work according to the forces of supply and demand, which determine the prices at which stocks are bought and sold. What this means is that no trade can occur until one participant is willing to sell the stock at a price at which another is willing to buy it, or until an equilibrium is reached.

If there are more buyers than sellers, the stock’s price will rise due to increased demand. On the other hand, if more people are selling a stock, its price will decrease.

During a regular trading day, the balance between supply and demand fluctuates as the attractiveness of the stock’s price increases and decreases.

These fluctuations are also why closing and opening prices are not always identical.

In the hours between the closing bell and the following day’s opening bell, a number of factors can affect the attractiveness of a particular stock.

For example, good news such as a positive earnings announcement may be issued, increasing a stock’s demand and raising the price from the previous day’s close.

Conversely, bad news can negatively affect price with less demand for the shares.

Along with good and bad news, the development of after-hours trading (AHT) also has a major effect on the price of the stock between closing and opening bells.

AHT used to be restricted to institutional investors and high net worth individuals; however, with the development of electronic communication networks (ECNs), AHT is now available to average investors.

With wider spreads and liquidity than what is seen during the day, AHT creates greater volatility in a stock’s price.

http://www.businesspost.ng/2016/10/10/stocks-dont-begin-trading-previous-days-closing-price/

By Modupe Gbadeyanka

**As Denis Hasdenteufel takes over

Chairman of the Nigerian Aviation Handling Company PLC (NAHCO Aviance), Mallam Suleiman Yahyah, has resigned from the board.

His letter of resignation has been communicated to the regulators.

Mr Yahyah cited the urgent need to attend to his failing health as the reason for his decision to bow out.

With the resignation of Mr Yahyah, the Vice Chairman, Mr Denis Hasdenteufel, would take over the leadership of the Board in an acting capacity and will preside over all meetings of the Board pending the approval of regulators and further announcements from stakeholders.

Mr Yahyah, who was appointed a director of the Company in November 2006, became the Chairman of NAHCO in July 2012.

He had in recent months come under mounting pressures from his family to step down to enable him undergo a proper medical attention.

Credited with the strategic reorganization of the company to its current modern status, Mr Yahyah had been battling with an undisclosed health issue for a couple of years now.

During his tenure, NAHCO witnessed unprecedented turnover which grew from N6.92 billion when he took over leadership of the board to N8.5 billion at Year End 2015.

This, we learnt, is in addition to increase in number of employees from about 1,100 to an all-time high of 1,980.

During this period, the company’s asset base also grew from N9 billion to N15 billion.

The hallmark of Mr Yahyah’s tenure at NAHCO was the modernization of company’s equipment to align with world’s standards in modern ground handling service.

He was credited with equipping NAHCO with state-of-the-art equipment that made the Company the great force that it is today in ground handling service in sub-Sahara Africa.

The diversification of the company which the board under his tenure embarked upon led to the establishment of NAHCO FTZ with the granting of a licence for same by the Federal Government. The Mainland Cargo Options also joined the growing list of companies in the group.

Mr Yahyah also promoted a harmonious company-labour relations which ensure minimal disruption in company’s business operations.

His welfare–oriented policies include the introduction of performance based pay (PMP) to employees and profit–sharing for workers.

He introduced a management succession programme into the Company that ensured a smooth transition from one CEO to another.

Under his leadership, NAHCO became the most successful privatisation story in the history of privatisation programme in Nigeria.

http://www.businesspost.ng/2016/10/08/nahco-chairman-suleiman-yahyah-resigns/

By Modupe Gbadeyanka

The embargo earlier placed on importation of rice through land borders in Nigeria has now been lifted by the Nigerian government.

Comptroller-General of the Nigeria Customs Service (NCS), Mr Hameed Ali, directed the immediate removal of rice from import restriction list.

He directed further that payment of import duty on rice brought into Nigeria at land borders should be re-introduced.

According to Mr Ali, the all rice imports through land borders by rice traders would attract the prevailing import duty of 10 per cent with 60 per cent levy.

Public Relations Officer of the NCS, Mr Wale Adeniyi, informed the News Agency of Nigeria (NAN) in an interview on Wednesday in Abuja that rice millers (preferential levy) with valid quota allocation would also attract duty rate of 10 per cent with 20 per cent levy on rice importation.

He said, “Over the years importation has been restricted to the seaports because border authorities have found it difficult to effectively monitor and control importation of rice.

“When the decision to ban it (rice) was taken it was not an effective measure because smuggling of the product thrives with people using different means of conveyance including small trucks, bicycles and even animals – putting them on donkeys and some actually carry it on their heads.

“These new measures will be for customs to recognise their anti-smuggling operations in the border areas and ensure that all those importers through the borders bring their rice through approved routes and pay their extant duty.”

http://www.businesspost.ng/2016/10/08/customs-lifts-ban-rice-importation/

By Dipo Olowookere

Business Post has confirmed that Cameroonian football legend, Rigobert Song has not passed away as being reported in some sections of the media.

Mr Song is said to be responding to treatment at a hospital in Paris, France, where he was taken to from the Yaounde Central Hospital in Cameroon this week.

On Saturday, a former sports journalist with the BBC and CNN, Mr Gary Al-Smith, cleared the air concerning the death hoax in a tweet.

“Confirmed from multiple sources; Rigobert Song NOT dead. He actually waved his hands this morning and was able to speak,” Mr Al-Smith posted on Twitter.

“CAF boss Issa Hayatou will be seeing Rigobert Song at La Pitie Salpetriere Hospital in Paris. Song had a cerebral aneurysm, not a stroke,” he said further.

On Sunday, the former Liverpool and West Ham defender slipped into a coma and was rushed to the hospital before being flown abroad for further treatment.

On Tuesday, the Yaounde Emergency Centre Director, Dr Louis Joss Bitang A Mafok, confirmed that the oxygen put on Mr Song had been disconnected and that his high blood pressure had returned to normal, adding that the cerebral haemorrhage had been stabilised and that the former football star was out of his coma.

But on Friday, African News Today posted on its platform that Mr Song had died at 40 in France after suffering a stroke.

The report quoted the football legend’s nephew, Mr Alex Song, as confirming the alleged death.

“Our beloved passed on this morning. At this moment the family is bereaved,” the website claimed Mr Alex Song, a former Arsenal and Barcelona midfielder, posted online.

However, when Business Post checked Mr Song’s Wikipedia page, no record of his death has been posted. His profile, as at 4:37pm on Saturday, October 8, 2016, shows he is still alive and not dead.

http://www.businesspost.ng/2016/10/08/breaking-rigobert-song-not-dead/

By Modupe Gbadeyanka

Report released by the Central Bank of Nigeria (CBN) says Nigeria’s foreign exchange reserves fell to $24.59 billion as at September 28, 2016.

This showed a 3.37 percent slump from the previous month.

The CBN, which released this figure on Friday, September 30, 2016, noted that it was stepping up its intervention to boost the free-falling Naira.

In August 2016, Nigeria’s reserves remained at $25.45 billion.

http://www.businesspost.ng/2016/09/30/nigerias-dollar-reserves-drop-to-24-59b/

By Modupe Gbadeyanka

Trading on the Nigerian Stock Exchange (NSE) ended on a good note on Thursday compared to the two previous days when the market slumped back-to-back.

The all-share index appreciated by 11.33 points or 0.04% to close at 28,247.56 points after it opened at 28,236.23 points on Thursday morning.

In the same vein, the market capitalisation gained N3.9 billion to close at N9.703 trillion against N9.699 trillion it finished on Wednesday.

Business Post gathered that a total of 365 million shares were traded in 2,905 deals worth N2.1 billion.

Seplat Petroleum led Thursday’s gainers log, appreciating by N16.5 to close at N346.5 per share, while Nestle added N9.82 to finish at N825 per share.

Mobil appreciated by N6.48 to close at N195 per share, Forte Oil gained N1.99 to end N161.99 and ConOil added N1.7 to close at N37.7 per share.

In contrast, 7up lost the losers’ table, closing at N139 per share after it lost N3.5, while Nigerian Breweries followed, losing N1.57 to finish at N145.43 per share.

GlaxoSmithKline shed 9k to close at N19.6 per share, Ashaka Cement lost 85k to end at N16.27 per share and GTBank dropped 56k to close N24.34 per share.

www.businesspost.ng/2016/09/29/nse-share-index-gains-0-04-thursday/

By Modupe Gbadeyanka

***Proposes Deeper Diversification, Better Policies

An analysis conducted by the World Bank has advocated for better economic policies and deeper diversification for African countries.

The World Bank noted in the report that countries of Sub-Saharan Africa present a diversified landscape of economic growth.

The bi-annual analysis of the state of African economies named Africa’s Pulse pointed out that while economic growth across the continent is projected to fall to 1.6% this year, the lowest level in over two decades, the GDP growth is showing resilience in about a quarter of countries.

Some of the best performers—Ethiopia, Rwanda, and Tanzania—have continued to post annual average growth rates of over 6%, and Côte d’Ivoire and Senegal have recently climbed into the ranks of top performing countries.

The weak aggregate economic performance is mainly a reflection of deteriorating economic performance in the continent’s largest economies: Nigeria and South Africa, which together account for half the region’s output.

In Nigeria, GDP contracted during the first two quarters of the year due to low oil revenues and a fall in manufacturing, among other things.

In South Africa, the economy contracted slightly in the first quarter, before rebounding in the second quarter, thanks to an increase in mining and manufacturing output.

Generally, oil exporters in Sub-Saharan Africa continue to experience slippages in economic growth due to shocks from the collapse of commodity prices. This underlines once more the limited diversification of their economies.

“Adjustment to low commodities has been limited in several commodity exporters, even as vulnerabilities have mounted,” says Punam Chuhan-Pole, World Bank Lead Economist for Africa. “Adjustment efforts should include measures to strengthen domestic resource mobilization, so as to reduce overdependence on resource-based revenues.”

A deeper analysis of economic growth patterns in the region shows that countries’ economies have performed differently in the years before and after the global financial crisis of 2008.

Some countries, those categorized as “established”, have sustained strong performance in both periods. Several other countries are seeing strong performance in recent years, and are categorized as “improved”.

Overall, these resilient groups of countries show more diversified export structures and have made more progress on structural reforms, business regulation, rule of law, and government effectiveness. Outlook Against this backdrop, a modest rebound is forecast for Sub-Saharan Africa in 2017.

Economic activity is expected to rise to 2.9%. The uneven growth performance we currently see should continue, with the region’s largest economies and other commodity exporters experiencing modest growth, as commodity prices strengthen slowly, while other countries continue to expand at a robust pace, supported in part by infrastructure investments.

Looking ahead, increasing agricultural productivity on the continent is central to transforming Sub-Saharan Africa. Analysis shows that addressing the quality of spending and the efficiency of resource use is even more critical than addressing the level of agriculture spending.

Rebalancing the composition of public agricultural spending could reap massive payoffs. The Report’s Key MessagesAfter slowing to 3% in 2015, economic growth in Sub-Saharan Africa is projected to fall to 1.6%in 2016, the lowest level in over two decades.

The sharp decline in aggregate growth reflects the challenging economic conditions in the region’s largest economies and commodity exporters as they continue to face headwinds from low commodity prices, tight financing conditions, and domestic policy uncertainties.

At the same time, in about a quarter of countries, economic growth is showing signs of resilience. Some countries—Ethiopia, Rwanda, and Tanzania—have continued to post annual average growth rates of over 6%, exceeding the top tercile of the regional distribution; and several other countries—including Côte d’Ivoire and Senegal—have moved into the top tercile of performers.

Risks to the outlook remain tilted to the downside. On the external front, old risks remain salient and include slower improvements in commodity prices, tighter global financial conditions, and security concerns.

Post-global financial crisis performance in the region as a whole has not been as stellar as it was pre-crisis.

However, there are some diverging growth experiences across countries.

Increasing agricultural productivity is central to transforming Sub-Saharan African economies. Addressing the quality of public spending and the efficiency of resource use is even more critical than addressing the level of spending.

http://www.businesspost.ng/2016/09/29/world-bank-predicts-1-6-fall-african-economies/

By Dipo Olowookere

If there is one scheme that is spreading in Africa like wildfire, then it is no other than the MMM Global Ponzi scheme that emanated from Russia in the 1990s.

Those who have wholeheartedly embraced this programme are from African countries facing economic downturns.

Zimbabwe and Nigeria have been the two main countries in Africa where the scheme is gaining more grounds.

Not too long ago, reports from Zimbabwe indicated that the MMM scheme had crashed, causing thousands of investors grieving over loss of their money.

The Nigerian government, through the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have warned citizens not to invest in the programme, but these warning have largely been ignored.

It was the same story in Zimbabwe, where the country’s apex bank, the Reserve Bank of Zimbabwe, warned its citizens not the put their money in the scheme.

According to The Independent UK, the MMM Ponzi scheme was established by former Russian politician, Sergey Mavrodi, who went on the run when the original MMM, standing for Mavrodi Mondial Moneybox, “collapsed in the late 1990s, losing investors an estimated $100m.”

It reports that, “On its website, MMM Global unashamedly advertises itself as a scheme whereby new members ‘assist’ older members by paying a fee to join. Older members are allowed to withdraw money after a certain period of time, and receive bonuses for encouraging others to sign up.

“Mavrodi himself is reported to have gone into hiding after a separate entity designed to reward investors with the cryptocurrency bitcoin – dubbed the ‘Republic of Bitcoin’ – folded in April this year.”

It was also reported that a criminal investigation has been launched into MMM Global branch in South Africa, after a probe by the National Consumer Commission “found something” to suggest the scheme was acting illegally.

It was gathered that Zimbabweans started to notice changes when investors reported being unable to withdraw any funds earlier this month.

One of them told The Herald newspaper that, “When we started putting our funds in the scheme one could get assistance within seven days but things later changed to 14 days and when we were shut out the waiting period was 21 days.

“What it simply means is that the number of people in need of help has outnumbered the number of people joining. Right now we have nowhere to get our money which we invested.”

However, some members of MMM Global across Africa have continued to defend its legitimacy, publishing screenshots showing withdrawals as proof the scheme pays out.

An anonymous member told business website Fin24 that, “MMM honestly tells people how it really works and do not promise people any return on the investments.

“As a donation programme, how is it possible to lose your donation? In MMM people ask each other to help them. It depends on the members themselves to maintain the continuation of the process of the provision of help to each other.”

http://www.businesspost.ng/2016/09/28/investors-lost-100m-mmm-ponzi-scheme/

By Modupe Gbadeyanka

After being granted approvals by relevant agencies in Nigeria, the Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40 have been officially opened at the Nigerian Stock Exchange (NSE), with Stanbic IBTC Asset Management Limited (SIAML) acting as the fund manager to both funds.

Both SIDF and ETF 40 were given the nod by the NSE and the the Securities and Exchange Commission (SEC).

While SIDF provides retail and institutional investors the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as to optimize returns on investments, ETF 40, an Exchange Traded Fund (ETF), will mirror the Pension 40 Index (Pension Index), replicating as closely as possible the total return of The NSE Pension 40 Index.

The Index, launched last year by the NSE to drive market optimization, is a tracking mechanism for investors, particularly institutional investors like Pension Fund Administrators (PFAs), that invest in line with guidelines set out by the National Pension Commission.

The NSE Pension Index monitors the top 40 most capitalized and liquid companies in the market.

The initial public offerings (IPOs) for units of both Funds opened on Monday, September 26, 2016 and will close on Wednesday, November 2, 2016.

The signing of the enabling agreement by the various parties to the transactions took place on Tuesday, September 6, 2016, when the directors of SIAML, the fund manager, and all other professional parties indicated that the signing completed the initial phase of the previously announced plan to float the products.

Under the terms of the deal, the parties agreed to proceed with the solicitation of offers for 5,000,000 units of the Stanbic IBTC Dollar Fund (SIDF) available at $1 each and multiples of 500 units thereafter.

The Chief Executive, Stanbic IBTC Asset Management Limited, Mrs Bunmi Dayo-Olagunju, said the Stanbic IBTC Dollar Fund was launched based on the need to spur the preservation and appreciation of wealth.

“We believe that even in these volatile times, the Fund will foster the diversification of portfolios and investments in currency terms, which in turn will help in the preservation and appreciation of wealth for investors,” she said.

In the offering for the SIAML Pension ETF 40, there will be 10,000,000 units available for subscription at 100 each at par and multiples of 10,000 units thereafter. The Fund has an offer size of N1 billion.

Mrs Dayo-Olagunju added that the primary objective of the SIAML Pension ETF 40 was to provide investors access to the most liquid publicly quoted companies on the NSE that are compliant with the regulatory requirements for investing pension assets in terms of taxable profits, free float, dividend, sector and individual stock weighting.

“The SIAML Pension ETF 40 is designed as an instrument of choice for PFAs, Life Assurance companies, institutional investors, as well as foreign portfolio managers who are desirous of the Nigerian exposure with minimal liquidity and exit risk,” Mrs Dayo-Olagunju stated.

Highlighting some of the benefits of the ETF, she said it would provide investors with a strategic exposure to the equities market, allowing for flexibility, cost effectiveness, diversification of investment, as well as liquidity. She added that it would act as a benchmark for PFAs to measure performance and report same to Retirement Savings Account (RSA) holders.

On his part, the Chief Executive of Stanbic IBTC Capital Limited, Mr Funso Akere, commended SIAML for its efforts in deepening the Nigerian capital market through the introduction of new and innovative products with specific characteristics to meet the needs of various market categories.

Apart from SIAML as the fund manager, First Registrars and Investor Services Limited will serve as the registrar while Stanbic IBTC Capital is the issuing house.

Stanbic IBTC Stockbrokers Limited is the authorized dealer; FBN Trustees Limited will serve as trustees while Standard Chartered Bank is the offer custodian.

Stanbic IBTC Asset Management Limited, Mrs Dayo-Olagunju also said, will continue to leverage its expertise in asset and wealth management, built over the past 20 years, as well as the Stanbic IBTC Group’s rich heritage in corporate and investment banking to provide quality products and services that will not only deepen the market but enhance transparency, add value and lead to investor confidence.

Stanbic IBTC Asset Management Limited is a wholly-owned subsidiary of Stanbic IBTC Holdings PLC, which is part of the Standard Bank Group, Africa’s largest bank by assets.

Standard Bank Group has been in operation for 153 years and has direct, on-the-ground representation in 20 African countries.

Stanbic IBTC Holdings PLC provides the full spectrum of financial services with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

http://www.businesspost.ng/2016/09/27/stanbic-ibtc-dollar-fund-pension-etf-40-open-nse/