₦airaland Forum

By Dipo Olowookere

The Central Working Committee (CWC) of the South East Revival Group (SERG) has declared the emergence of former Vice President Atiku Abubakar as a good omen for the country at large and the south eastern Nigeria in particular.

While hailing the process that led to the outcome of the Peoples Democratic Party (PDP) convention in Rivers State, SERG in a statement signed by its national coordinator and CWC chairman, Mr Willy Ezugwu noted that "a strong signal has come from the PDP that it can get its acts together.

"For the first time in recent years, the PDP seems to have gotten it right by its choice of presidential Candidate, a man who believes in restructuring.

"The South East Revival Group, therefore, urges the candidate of the PDP to bring to the table his comprehensive plan for the south east development in line with his restructuring agenda.

"Beyond the promises of the past, which remained largely unfulfilled by the current governing party and the former ruling parties after the civil war in Nigeria, the PDP and its candidate must at this time present to the long neglected people of the old Eastern Region an implementable agenda for the region's accelerated development.

"Since after the civil war, Nigeria's successive leaders abandoned the Yakubu Gowon's 3R programme of reconciliation, reconstruction and rehabilitation, a policy that would have totally healed the wounds of the past.

"This is such that after the 30-month hostilities, the eastern region and her economy have continued to be deliberately de-developed by the Nigerian government at the centre.

"The effort to get the National Assembly erases the scars of the past by establishing, through an Act of Parliament, a South East Development Commission also failed under the current President Muhammadu Buhari administration.

"Nigeria, as a country, has continued to have divisive leaders, with little or no attention paid to the south east in terms of infrastructure development and formulation of deliberate policy to engender economic growth in the region.

"Rather, men and women of the region have continued to be mistreated in many ways because of where they come from to the extent that they were issued quit notice from the north.

"We cannot continue to roll out tanks to quell the agitations for a sense of belonging in the south east. It is true that some of the agitators are misguided but there is merit in the agitation itself.

"The Nigerian government, over the years, has been consciously throwing the baby away with the bath water and that saw the arrest and incarnation of Ralph Uwazuruike and lately the missing Nnamdi Kanu and other agitators.

"No matter how misguided any of the agitators for the development of south east may be, the truth remains that the region needs deliberate attention and it's time for Alhaji Atiku Abubakar and PDP to show commitment to reconciliation, reconstruction and rehabilitation of our region.”

https://www.businesspost.ng/2018/10/10/group-begs-atiku-to-develop-south-east/

Money Market Rates Remain Calm as T-Bills Yields Shed 0.05%
https://www.businesspost.ng/2018/10/10/money-market-rates-remain-calm-as-t-bills-yields-shed-0-05/

London Listing of Dangote Cement Nears Completion
https://www.businesspost.ng/2018/10/09/london-listing-of-dangote-cement-nears-completion/

Eterna Oil to Issue N10b Commercial Paper to Fund Operations
https://www.businesspost.ng/2018/10/09/eterna-oil-to-issue-n10b-commercial-paper-to-fund-operations/

Buhari Seeks Approval to Borrow $2.8b for 2018 Budget
https://www.businesspost.ng/2018/10/09/buhari-seeks-approval-to-borrow-2-8b-for-2018-budget/

By Dipo Olowookere

President Muhammadu Buhari on Tuesday, October 9, 2018, wrote a letter to the Senate, seeking its approval to borrow $2.8 billion from the international capital market.

This information was made known today by the Senate President, Mr Bukola Saraki, who read the letter to his colleagues.

According to the letter from the President, the money is mainly to fund part of the 2018 national budget, which was signed into law on June 20, 2018.

The Senate resumed on Tuesday after suspending plenary on Tuesday, July 24, 2018 to embark on its annual recess.

At the resumption today, the Senate President informed his colleagues that the President wants the resolutions of the National Assembly for the implementation of the new external capital raising of $2.786 billion from the international capital market approved in the 2018 appropriation act.

Also, the Senate President said Mr Buhari wants an additional external capital raising of $82.54 million to refinance the balance of $500 million matured Eurobond in the international capital market.

Business Post reports that the Debt Management Office (DMO) had planned to raise the $2.8 billion in the outgone third quarter of 2018, but the recess embarked upon by the National Assembly killed the plan.

If the parliament gives the President the nod to obtain the $2.8 billion loan through Eurobond, the debt office may carry out the exercise before the end of this year.

https://www.businesspost.ng/2018/10/09/buhari-seeks-approval-to-borrow-2-8b-for-2018-budget/

From information I reliably gathered, that should be paid before or shortly after 2019 election. Though I hear this December is likely, which I doubt.

Lexusgs430:
The remaining half nko ? They should kiss it bye bye ........

By Dipo Olowookere

On Monday, October 15, 201, the verification of retirees of the defunct Nigeria Airways will commence across three centres in the country.

The centres are located in Lagos, Kano and Enugu States.

Business Post reports that the exercise will last one week and the beneficiaries have been grouped according to their departments as at the time Nigeria Airways Limited was liquidated in 2003 by former President Olusegun Obasanjo.

On September 24, 2018, Minister of Finance, Mrs Zainab Ahmed, announced that President Muhammadu Buhari had approved the release of N22.68 billion for the settlement of the pensioners.

This was below the N45 billion earlier approved by Mr Buhari on September 20, 2017 for the severance package.

On Monday, October 8, 2018, some of the Nigeria Airways pensioners held a meeting in Lagos, where they were given updates on how the payment would be done.

Business Post reliably gathered that the beneficiaries have been asked to present themselves physically for the verification exercise on the dates allotted to their names.

However, they will have to come along with their letter of engagement, letter of disengagement, one nationally acceptable identification card/document which could be international passport, national identity card, driver's license and Permanent Voters Card (PVC).

It was also disclosed at the meeting that for deceased pensioners, their family representatives must appear for the verification at their allotted dates with the letter of administration and the documents listed above.

https://www.businesspost.ng/2018/10/09/documents-nigeria-airways-retirees-must-take-along-for-verification/

T-Bills Yields Drop as N175b Inflows Boost Liquidity
https://www.businesspost.ng/2018/10/09/t-bills-yields-drop-as-n175b-inflows-boost-liquidity/

By Modupe Gbadeyanka

The fresh verification of former employees of the defunct Nigeria Airways Limited will commence on Monday, October 15, 2018, Business Post has confirmed.

The exercise will take place for five days and the pensioners across the country would be screened by a committee set up for the purpose ahead of payment of the recently released N22.68 billion by federal government, about 50 percent of the total severance package of the beneficiaries.

Business Post confirmed on Monday morning that names of the ex-workers of the nation’s former national carrier have been pasted with their respective days of verification.

Our correspondent gathered that the names were not alphabetically arranged as it used to be, but done randomly this time around.

On September 24, 2018, Minister of Finance, Mrs Zainab Ahmed, had announced that President Muhammadu Buhari had approved the release N22.68 billion for the part-payment of the ex-workers being owed N45 billion.

Nigeria Airways started flight operations in August 1958, but was liquidated by former President Olusegun Obasanjo’s government in May 2003.

From the information gathered by our correspondent, the verification of the pensioners would be completed within a week.

After the exercise, the former Nigeria Airways workers would be expected to receive their payments from the federal government.

Late September 2018, Chairman of the Nigeria Airways Elders Forum, Mr Godwin Jibodu, had advised the pensioners at a meeting in Lagos to “prepare his or her documents for the verification.”

According to him, these documents should include “letter of appointment, letter of retirement and identity card.”

https://www.businesspost.ng/2018/10/08/fg-begins-verification-of-nigeria-airways-pensioners-october-15/

Fear Grips Ex-Directors of Skye Bank, Seek Soft-landing
https://www.businesspost.ng/2018/10/08/fear-grips-ex-directors-of-skye-bank-seek-soft-landing/

Investors Advised to Hold PZ Cussons Shares
https://www.businesspost.ng/2018/10/08/investors-advised-to-hold-pz-cussons-shares/

Access Bank, Dangote Cement, Others Declare Closed Periods
https://www.businesspost.ng/2018/10/08/access-bank-dangote-cement-others-declare-closed-periods/

N277b Maturing Treasury Bills to Moderate Cost of Funds
https://www.businesspost.ng/2018/10/08/n277b-maturing-treasury-bills-to-moderate-cost-of-funds/

By Peter Albert

Following the landslide victory of Mr Abubakar Atiku as the flag bearer of the People’s Democratic Party (PDP) on Sunday, information available to us reveal that the jostling for who will be his running mate has reached fever-pitch.

According to sources close to Mr Atiku, he has referred the question of who will be his running mate to the party elders to decide.

This, many believe, would serve to heal any wounds that may have arisen from his landslide victory over Governor Aminu Tambuwal of Sokoto State, who had been enjoying the unhinged support of Governor Nyesom Wike of Rivers State and the state delegates loyal to him.

There are many eminent PDP members across the country who are qualified for the role but discussions with top PDP apparatchiks at the venue of the just-concluded PDP National Convention revealed that the front runners for the position of Vice Presidential candidate are Otunba Gbenga Daniel (OGD), Governor Nyesom Wike, former Governor Peter Obi, Dr Ngozi Okonjo Iweala, Govornors Seriake Dickson of Bayelsa State and Ayodele Fayose of Ekiti State.

OGD is a former two-term Governor of Ogun State and the Director General of the Atiku Campaign Organization who was able to garner the delegates from the south west states, except Ekiti State delegates, to deliver block votes for Mr Atiku at the primaries.

He is believed to be more suited for the job as he would be able to reduce the votes to and the dominance of the All Progressives Congress (APC) in the south west states. He would also balance the influence of the current Vice President to President Buhari who is also from Ogun State.

Governor Seriake Dickson of Bayelsa State was the only Governor that openly supported Mr Atiku and mobilized support from fellow PDP Governors, in direct opposition to people like Mr Wike who publicly supported Mr Tambuwal.

Governor Dickson’s unalloyed support for Mr Atiku also contributed to his recent victory as the presidential candidate of the PDP.

Mr Dickson has been a stabilizing factor in the Niger Delta and is widely accepted as a grassroots politician with strong ties with the Yorubas being that his grandmother is from Ogun State.

His giant strides in various sectors in Bayelsa State continue to stand him in good stead as a purveyor of peace and development to the people in general.

Dr Ngozi Okonjo-Iweala is the renowned Finance Minister and Coordinating Minister of the Economy in President Goodluck Jonathan’s Government. She comes with immense experience and capacity together with a largely unblemished public service record.

Though not a politician, her candidacy should put presidential hopefuls from the south east states at ease as she would not be competing with them to take over from Mr Atiku at the end of his single term plan. She would also help to rein in sympathetic votes from Nigerian women across party lines and ethnic or tribal affiliations.

Governor Wike is arguably the latter day leader of the PDP who has fought to steady the course of the party in the last turbulent years after the loss of the presidency to the APC. Though he did not support Mr Atiku in the primaries, pundits say that his control of the party systems through his appointed Chairman, Mr Uche Secondus, is very strong.

Mr Fayose is the current Governor of Ekiti State who stepped down from the presidential primaries race ostensibly to support Mr Tambuwal. Despite the fact that his candidate lost the governorship elections to the APC candidate, pundits say he still commands a lot of support in the south west states.

Mr Fayose, though considered a rabble-rouser by a cross section of the society for his many verbal engagements, should therefore help the PDP garner votes in the south west states as Vice Presidential candidate to Mr Atiku.

Last but not the least is Dr Peter Obi. He is the immediate past and very successful governor of Anambra State. Mr Obi brings economic sagacity and an unblemished public service record to the table but may raise fears from other possible successors to Mr Atiku at the end of the single term as being vice president would put him in pole position to take over.

https://www.businesspost.ng/2018/10/08/ogd-dickson-iweala-fayose-others-make-atikus-vp-list/

By Dipo Olowookere

The local currency traded mixed against the Dollar at the foreign exchange market (forex) last week as more money is pumped into the economy by politicians wooing delegates and party members for votes ahead of the 2019 general elections.

At the Investors & Exporters (I&E) forex window, the Naira appreciated by 0.03 percent against the Dollar to quote at N363.82.

The marginal rise came on the back of further decline in the nation’s external reserves that fell by 0.86 percent to settle at $43.92 billion as at Thursday, October 4, 2018.

According to analysts at Cowry Asset, the local currency however, was flattish week-on-week (w-o-w) at the interbank market at N361.34/$.

This was mainly due to the weekly injections of $210 million by Central Bank of Nigeria (CBN) into the foreign exchange market via the Secondary Market Intervention Sales (SMIS).

During this intervention, the apex bank supplied the sum of $100 million to Wholesale (SMIS), $55 million to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

Also, the exchange rate remained unchanged at both the Bureau De Change (BDC) segment and the parallel market at N358/$ and N361/$ respectively amid CBN’s sustained special intervention.

Meanwhile, most dated foreign exchange rate forward contracts at the interbank over-the-counter (OTC) segment rose; 1 month, 2 months, 3 months and 6 months contracts lost 0.15 percent, 0.11 percent, 0.08% and 1.04 percent to close N367.42/$, N371.05/$, N374.64/$, N386.29/$ respectively.

https://www.businesspost.ng/2018/10/07/naira-gains-0-03-at-ie-as-foreign-reserves-drop-to-43-9b/

Liquidity Squeeze Triggers 0.15% Hike in T-Bills Yields
https://www.businesspost.ng/2018/10/06/liquidity-squeeze-triggers-0-15-hike-in-t-bills-yields/

By Dipo Olowookere

At the treasury bills market on Friday, yields recorded a slight 0.15 percent appreciation on the back of a relatively tighter level of system liquidity.

According to analysts at Zedcrest Research, the cash squeeze occurred as a result of the significant OMO sale on Thursday.

At yesterday’s session, the Central Bank of Nigeria (CBN) did not conduct another sale of the debt instrument via the secondary market.

T-bills rates are anticipated to remain high as market resumes next week as a result of expected further debits for a wholesale SMIS auction by the CBN on Monday.

Meanwhile, Business Post reports that the average money market rate broadly increased by 9.6 percent on Friday to settle at 21.68 percent.

While the Open Buy Back (OBB) went up to 20.86 percent from 11.67 percent, the Overnight (OVN) rose to 22.50 percent from 12.58 percent.

The rise in the rates came on the back of a significant squeeze in system liquidity from the OMO auctions in the previous session.

System liquidity published by the CBN opening yesterday fell below analysts’ expectation at N76 billion, consequently driving the funding rates significantly higher.

“We expect rates to remain higher due to expected outflows for a wholesale SMIS by the CBN on Monday, which is likely to wipe off the existing system liquidity from its current positive levels,” analysts at Zedcrest Research said.

https://www.businesspost.ng/2018/10/06/liquidity-squeeze-triggers-0-15-hike-in-t-bills-yields/

T-Bills Yields Tick Higher as CBN Mops up N553b
https://www.businesspost.ng/2018/10/05/t-bills-yields-tick-higher-as-cbn-mops-up-n553b/

S&P Affirms Ecobank's Ratings, Says Bank Will Sustain Growth
https://www.businesspost.ng/2018/10/04/sp-affirms-ecobanks-ratings-says-bank-will-sustain-growth/

Industry Observers Say Polaris Bank Is Dead On Arrival
https://www.businesspost.ng/2018/10/04/industry-observers-say-polaris-bank-is-dead-on-arrival/

By Dipo Olowookere

A group known as the Pro-Democracy Alliance has demanded for the immediate resignation of national chairman of the ruling All Progressives Congress (APC), Comrade Adams Oshiomole.

A statement issued by the organisation also urged President Muhammadu Buhari to call Vice President Yemi Osinbajo to order.

According to Pro-Democracy Alliance, they want these requests granted as a result of what it described as the duo’s “undemocratic” roles in the conduct of the Ogun State governorship primary of the APC, which the group claimed was won Mr Adekunle Akinlade.

At a press briefing in Lagos on Thursday, the group lambasted Mr Oshiomole for orchestrating a ‘show of shame’ in disregard of the democratic decision of members of the APC in the state, who on Tuesday “overwhelmingly” voted for Mr Akinlade as the party's flag bearer in the March 2019 governorship election in the state.

Speaking on behalf of the group, Comrade Olusegun Soyoye accompanied by other leaders of the group said it was sad that those who were entrusted with positions of high responsibility such as the National Chairman and even the Vice President of the country have proven to be incapable, while also employing every undemocratic means, to undermine the democratic decision of the people of Ogun State by desperately attempting to foist an aspirant, who came in 3rd position, Mr Dapo Abiodun, on the party through illegal means.

The group further said the alleged infamous role of the APC National Chairman, in active connivance with Mr Osinbajo, clearly negates the principles upon which the APC as a party was formed and pursuant to which it has become a party of choice to Nigerians, particularly the people of Ogun State.

"For the purpose of clarity, and we wish to inform you that we active monitored the Ogun State gubernatorial primary on Tuesday, October 2, 2018, where members of the APC in the state voted Abdul-kadri Akinlade with a total of 190,987 votes, Mr Jimi Lawal in second position with 5,046 votes, Mr Dapo Abiodun with 3,648 votes, among others.

“We were therefore taken aback, when on Wednesday, the Muhammad Ndabawa-led electoral committee sent to Ogun State by the National Working Committee (NWC) of the APC, which has made itself unavailable since arriving the state, rose from the comfort of their hotel rooms to announce Mr Dapo Abiodun as the winner of the Ogun State governorship primaries without any election held to the contrary in any part of Ogun State on Wednesday.

“We condemn this shenanigan of a very few, who are out to hijack an otherwise peaceful and successful primaries just for reasons of personal aggrandisement as we hereby call on members of APC and all lovers of democracy to resist it," the group said.

The group therefore called on the President, Muhammadu Buhari and other well-meaning members of the party to direct Comrade Oshiomole and Vice President Osinbajo to immediately hands off their interference in the outcome of the Ogun gubernatorial primary and respect the choice of members of the party over who should be its flag bearer.

https://www.businesspost.ng/2018/10/04/ogun-guber-primary-group-demands-oshiomoles-resignation/

By Dipo Olowookere

The withdrawal of the operating license of Skye Bank Plc by the Central Bank of Nigeria (CBN) late September 2018 has continued to generate reactions from experts, analysts and observers.

When the apex bank collapsed Skye Bank, it announced a bridge bank called Polaris Bank, retaining the management it appointed for the defunct lender in 2016 because it was impressed with their performance.

But some people who have chewed on the statement of the Mr Godwin Emefiele, the CBN Governor, on the establishment of the bridge bank, have described Polaris Bank “dead on arrival”.

According to Mr Emefiele, the license of Skye Bank Plc was withdrawn after noticing that despite its intervention for two years, the financial institution was still visiting the Standing Lending Facility (SLF), a window which allow banks to borrow from the CBN, as a result of liquidity challenges.

To avoid the monies of depositor going down the drain and because the bank was one of the Systemically Important Bank (SIB), the CBN decided to shut down the financial institution and name a new one using its structures, staffs and resources of Skye Bank Plc.

Mr Emefiele was quoted on Friday, September 21, saying that ‘the existing Board, Management and Staff of the defunct Skye Bank has been retained for its good performance’. According to him, Skye Bank Plc’s performance has improved considerably compared to the pre-July 2016 era.

However, there have been questions as to why the apex bank would revoke license of a bank with a performing management. It was understandable when the Mr Tunde Ayeni-led board was sacked by the central bank because the bank found itself in a non-performing loan mess estimated to be almost N700 billion.

The criss-cross in the statement of the CBN has thus seen questions being asked with no one ready to answer them.

There are some who said if the interim management set up by the CBN to manage Skye Bank for two years could not prevent its eventual fall, why keep the team to run the bridge bank.

Also, there are those who insist that there is more to the whole development, as they keep asking if the bank would have been put to rest if it was really doing well. There are also those who believe that the hands of the CBN Governor Emefiele might be tied, hence he is maintaining the set of management and board. Whatever is the situation, one basic truth is that Polaris Bank in the hands of the same management that couldn’t salvage Skye Bank Plc is only poised to fail except of course if the Asset Management Company of Nigeria (AMCON) can quickly find a buyer before the invested N786 billion is known.

Explaining the consequences of the move by the apex bank, Financial Analyst, Tunde Biobaku, said “when a bank is recapitalized, there is always the need to name a new board who will handle the new investment. If you use the same set of people, they will run down the business just like they initially did to make the bank need recapitalization in the first place, so what the CBN has done is very confusing because the same guys that couldn’t do well with Skye Bank are now managing Polaris Bank, the end result is already clear, crystal clear. They would leave Polaris Bank worse than they met it, you mark my words.”

Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), said the CBN need to explain its actions to Nigerians for better understanding.

Okezie said the investors should not be allowed to suffer again for the misdeeds and mistakes of the regulations. He called on the Federal Government to investigate the incessant fall of banks in the country, adding that the past management and board of Skye Bank must be made to account of what led to the the bank’s misfortune.

Signs that the apex bank would move in to takeover the bank became obvious when it failed to declare its result under the mandatory window. The announcement of the takeover by CBN came like a surprise to many.

With the same old wine in a new bottle, it is hard to see a flourishing Polaris Bank in the near future, especially in the hands of Tokunbo Abiru, leader of the team.

https://www.businesspost.ng/2018/10/04/industry-observers-say-polaris-bank-is-dead-on-arrival/

By Dipo Olowookere

One of the major factors working against the growth of the fisheries segment of the economy in Nigeria has been identified by analysts at FBNQuest Capital.

Despite the abundance of water in Nigeria, not much is earned from the aquatic sector of the nation’s economy.

Aquaculture has remained an integral part of Nigeria’s agriculture sector, with annual fish demand estimated at 3.3 million metric tons (mmt).

According to FBNQuest Capital, over the past three years, domestic fish supply has risen to 1.2mmt, which is attributed to increased government intervention.

Quoting industry sources in its daily Good Morning Nigeria report, the firm said Nigeria’s annual fish import bill is estimated to be around $800 million.

It said however, the fisheries segment continues to suffer from poor access to credit and based on the credit extension data for Q2 2018 released by the National Bureau of Statistics (NBS), agriculture received just 3.5 percent of total credit allocation.

The report noted that based on the national accounts for Q2 2018, fisheries contracted by -1.3 percent y/y, compared with a growth of 4.2 percent recorded in the previous quarter, accounting for 2.1 percent of total agricultural GDP in Q2.

“We note that Nigeria’s per capita fish consumption is 13kg, significantly lower than the global average of 21kg.

“Data from the CBN show that artisanal production accounted for around 76.7 percent of the 1.06 million tonnes of fish produced in 2017,” the report stated.

In addition, it said industrial (trawling) fish farming accounted for only 7 percent of the total, indicating that commercial fisheries segment is still largely untapped.

“The harsh business environment has slowed fishing activity; the cost of trawling has more than doubled over the past few years due to high operational costs,” it said.

FBNQuest Capital stressed that fisheries would benefit from increased financial intervention schemes if given attention by government.

The CBN has set up a few of these to support the sector and compensate for the poor supply from the banks but these have had modest impact on the segment.

https://www.businesspost.ng/2018/10/04/nigerias-annual-fish-import-bill-hits-800m/

Nigeria’s N133.5b Fresh T-Bills Sale Records N305b Oversubscription
https://www.businesspost.ng/2018/10/04/nigerias-n133-5b-fresh-t-bills-sale-records-n305b-oversubscription/

T-Bills Yields to Slightly Fall at Secondary Market
https://www.businesspost.ng/2018/10/04/t-bills-yields-to-slightly-fall-at-secondary-market/

By Modupe Gbadeyanka

Federal government has been warned to as a matter of urgency implement policies that will grow and diversify the revenue base of the country. Failure to adhere to this, according to analysts at FSDH Research, could spell doom for the nation, especially in terms of a debt crisis.

In his weekly report obtained by Business Post on Tuesday, the investment firm said government was spending too much of its revenue to pay interest on loans, leaving authorities with little resources to spend on critical sectors of the economy that could support strong growth and maintain a healthy economy to generate revenue.

Business Post reports that this warning is coming exactly a week after the Central Bank of Nigeria (CBN), at the end of its Monetary Policy Committee (MPC) meeting in Abuja, warned that the country might slip into recession again two years after it first fell into economic crisis.

FSDH Research, in its report today, said its analysis shows that the growth in Nigeria’s debt is higher than the growth in revenue, pointing out that Nigeria has the lowest government revenue to Gross Domestic Product (GDP) ratio at 6 percent among some selected countries.

According to the company, Nigeria’s over-dependency on crude oil revenue, combined with volatility in both the price and production of crude oil are the major reasons for sluggish growth in government revenue.

It said growing non-oil revenue will require that the Nigerian economic environment has inherent structures that can support business growth, noting that such structures include adequate physical infrastructure, policies, legal and regulatory frameworks that will make the economy business-friendly to generate taxable profits.

“Our analysis of the ratio of the interest payment on domestic debt relative to the FGN allocation from the Federal Account Allocation Committee (FAAC) shows that the FGN is spending too much of its revenue to pay interest on loans.

“This leaves the government with little resources to spend on critical sectors of the economy that could support strong growth and maintain a healthy economy to generate revenue,” it said.

FSDH Research said further that, “The current high interest payment relative to revenue may also increase the credit risk of the country. Although the government has been able to meet its debt obligations (interest and principal payments) so far, if the current situation is not addressed, the interest rate on government loans may increase because of the perceived elevated risk. This would also lead to higher interest rates for private sector operators.”

The firm disclosed that the external environment was becoming tighter than before because of the rising interest rate in the US.

Last week, the Federal Open Market Committee (FOMC) of the US Federal Reserve raised the Federal Funds Rate by 0.25 percent to a range of 2 percent to 2.25 percent.

In the report, FSDH Research predicts that the FOMC will still announce another rate increase before the end of the year.

The investment firm fears that this development will increase the borrowing cost on any new Dollar denominated loan.

“Consequently, borrowing in the international market is no longer as attractive as it was before. It is crucial, therefore, to structure the Nigerian economy to enable it to generate revenue and rely less on borrowing to meet its basic needs,” it submitted.

https://www.businesspost.ng/2018/10/02/analysts-warn-fg-to-avert-imminent-debt-crisis-in-nigeria/

MTN Considers Cancelling Nigeria IPO
https://www.businesspost.ng/2018/10/02/mtn-considers-cancelling-nigeria-ipo/

Happy Independence Day to everyone here.

Actually, CBN said minority shareholders of Skye Bank may have part of their money back. Read this

CBN Gives Hope to Minority Shareholders of Defunct Skye Bank
https://www.businesspost.ng/2018/09/26/cbn-gives-hope-to-minority-shareholders-of-defunct-skye-bank/

Remii:
its hard but its the truth, Skye bank shareholders have all lost their investments, like those of bank PhB, Intercontinental, Spring, etc that went under in 2008/2008, Skye bank share certificates are mere papers now. CBN governor only talked about depositors nothing on the shareholders because they have nothing again.

By Dipo Olowookere

An oil company owned by Nigerian businessman, Mr Arthur Eze, Oranto Petroleum Ltd, is planning to build two schools in South Sudan.

Already, the firm has completed the award of the contract for the construction of two primary schools to be located in Yirol and Rumbek, two communities located in central South Sudan and northwest of Juba, the country’s capital.

Estimated at over $800,000, the project for the construction of the schools will be executed by local construction company Dynamic Supplies and Construction Limited, in line with Oranto’s policy to significantly engage local human and material resources in all its activities in the Republic of South Sudan.

“We are delighted to be working with such an investor as Oranto in the development of South Sudan’s oil sector,” said Petroleum Minister, Mr Ezekiel Lol Gatkuoth. “Oranto has proven to be a reliable partner, committed to support both the growth of South Sudan’s local content and the socio-economic development of our communities.”

The construction of the state-of-the-art schools signals a further boost to value addition to the people of South Sudan from their oil and gas resources as championed by Oranto, against the backdrop of the various peace initiatives being embarked upon by the Government of South Sudan.

“The construction of these two schools is a reflection of Oranto’s engagement to invest in social infrastructure in all areas where we operate in Africa,” declared Prince Arthur Eze, Founder and Executive Chairman of Oranto Petroleum. “Oil has to benefit all citizens and education is key to development. We are only going to see true peace and development in Africa when we leave no child behind and continue to invest in our human resources. I am thankful that I have been blessed and I have a chance to bless others.”

Oranto signed its EPSA with the Ministry of Petroleum in March 2017, committing to the development of the 24,415-square kilometre acreage.

Following a competitive tender process, geophysical specialist BGP was selected to perform an airborne gravity and magnetic survey of the contract area, Block B3.

Oranto completed data acquisition on Block B3 in the second quarter of 2017 and is currently in the data interpretation stage. The block is believed to be highly prospective, with productive parts of the Muglad Basin to the northwest and estimated reserves in place of more than 3 billion barrels of oil.

https://www.businesspost.ng/2018/09/30/nigerian-oil-firm-to-construct-8m-schools-in-south-sudan/

Wema Bank Sells N20b Bond to Foreign Investors
https://www.businesspost.ng/2018/10/01/wema-bank-sells-n20b-bond-to-foreign-investors/

Fidson to Issue 900m Shares for Strategic Capital Expenditure
https://www.businesspost.ng/2018/09/30/fidson-to-issue-900m-shares-for-strategic-capital-expenditure/

Sovereign Trust Insurance Raises Share Capital to Meet Tier-1 Requirements
https://www.businesspost.ng/2018/10/01/sovereign-trust-insurance-raises-share-capital-to-meet-tier-1-requirements/

You are welcome

4601CE:
Thank you very much for this explanation!

By Dipo Olowookere

Governor Akinwunmi Ambode of Lagos State has stressed that he will not bow to pressure from his political godfather’s camp to step down for his anointed candidate for the governorship primaries slated for Monday, October 1, 2018.

Former governor of the state, Mr Bola Tinubu, who is regarded as the political godfather of Lagos State, had reportedly backed Mr Babajide Sanwo-Olu to replace Mr Ambode in 2019.

But at a world press conference held in Alausa, Ikeja on Sunday, September 30, 2018, the Governor said he will not step down for Mr Sanwo-Olu.

Mr Ambode said he will participate in Monday’s primaries to pick the sole candidate of the ruling All Progressives Congress (APC) for the 2019 poll.

“I am going nowhere. We want to consolidate on what we have done in the last three years,” the Governor emphatically told newsmen.

According to him, “The aspirant put up against me is not a fit and proper person. He spent fake American Dollars at a night club in America.”

He further said, “We cannot allow our esteemed members not have an opportunity to participate in the direct primaries,” adding that, “We must allow our people to come out and vote for their candidate in the direct primaries, that is the essence of democracy.”

Mr Ambode expressed confidence that he would emerge victory at tomorrow’s exercise, which has been shifted for about three times now.

Also, he hopes the process would be free and fair, but urged that no card carrying member of the APC in Lagos State is disenfranchised.

https://www.businesspost.ng/2018/09/30/ambode-dares-tinubu-says-sanwo-olu-not-fit-for-governor/

FG Probes Defunct Skye Bank Directors, May Begin Trial Soon
https://www.businesspost.ng/2018/09/30/fg-probes-defunct-skye-bank-directors-may-begin-trial-soon/

C&I Leasing Acquires Two New Vessels for Better Services
https://www.businesspost.ng/2018/09/29/ci-leasing-acquires-two-new-vessels-for-better-services/

GTBank Board Meets for Q3 Results, Announces Closed Period
https://www.businesspost.ng/2018/09/28/gtbank-board-meets-for-q3-results-announces-closed-period/

**Hails Mama Taraba for Dumping APC

By Dipo Olowookere

United Democratic Party (UDP) has described the national chairman of the ruling All Progressives Congress (APC), Mr Adams Oshiomhole, as an “Elevated Garage Boy.”

A statement signed by the Director of Communication of UDP Youths Forum, Mallam Abubakar Isah, disclosed that the likes of former Minister of Women Affairs and Social Development, Mrs Aisha Jummai Alhassan, should not have associated herself with Mr Oshiomhole’s APC, which Mr Isah said it dominated by miscreants.

UDP, while reacting to the resignation of Mrs Alhassan and her eventual exit from the APC, stated that it would “expect more of her supporters across the federation” to join its fold.

“We received the news of the resignation of the former Minister of Women Affairs and Social Development, Senator Aisha Jummai Alhassan from the sinking and rudderless All Progressives Congress led Federal Government with great joy.

“We had wondered what such an impeccable character and personality is doing in a party where 'Agbero' Misogynist and Elevated Garage Boy' like Adams Oshiomhole is heading?

“We were surprised that in spite of her numerous sacrifices and personal sponsorship of the party in Taraba State, the National Working Committee of the rudderless APC led by its Elevated Garage Boy Chairman, still have the gut to disqualify her from the party she laboured to build in Taraba State,” the statement said.

UPD described itself as “a home for all democrats and refined politicians who truly want to serve the nation in various elective capacities,” thanking the former Minister for joining the party “with seven serving lawmakers in the state House of Assembly and 169 ward chairmen of the rejected APC in Taraba State.”

Concluding, Mr Isah expressed confidence that the UDP will “form the next government in Taraba State.”

https://www.businesspost.ng/2018/09/30/udp-calls-oshiomhole-elevated-garage-boy/

The Yuan deal is still on.

globemoney:
what about the yuan deal lmaoo.. Buhari is Fraud