₦airaland Forum

By Dipo Olowookere

Nigeria’s Minister of Finance, Mrs Kemi Adeosun, has been urged to “without further delay show responsibility and clear the air over the damaging certificate forgery allegations against her and settle the facts of the case once and for all.”

This appeal was made by a popular group known as the Socio-Economic Rights and Accountability Project (SERAP).

In a statement issued on Sunday by SERAP’s deputy director, Mr Timothy Adewale, the group warned that, “Suspicions of certificate forgery involving a senior member of the government if not urgently and satisfactorily addressed would weaken public trust in the government’s oft-expressed commitment to transparency and accountability.”

Several days after being accused of forging her National Youth Service Corps (NYSC) exemption certificate, Mrs Adeosun is yet to make any official statement in reaction to the alleged scandal.

But Mr Adewale emphasised that, “Clarifying the allegations of certificate forgery would show a commitment to doing the right thing, and a natural disposition toward openness.”

He warned further that, “The continuing failure and/or refusal to speak to Nigerians on these allegations amounts to a betrayal of public trust.”

According to him, “If she can show the courage to clear the air on the allegations, Mrs Adeosun can be a strong promoter of the values of transparency and accountability, something which the government of President Muhammadu Buhari has regularly expressed commitment to embrace and achieve.”

SERAP stressed that, “The failure to address the allegations may create public anger and lead to accusation of cover-up. The public can become passive and cynical if it believes that people in position of public trust are out for themselves. It is the core responsibility of any senior public official to prevent that cynicism.”

According to the organization, “When those in position of public trust refuse to speak up on allegations bordering on certificate forgery, it invariably creates a psychological climate, a moral culture in which citizens are more likely to embrace illegal actions and choose to undertake them.”

Mrs Adeosun, who was born in England in 1967, pursued all her education career in the country, which colonised Nigeria, and graduated in 1989 at the age of 22 from the Polytechnic of East London, now University of East London.

Having graduated before the age of 30, she was by the provisions of the NYSC Act supposed to undergo a mandatory service year for her to qualify for any position, be it in public or private sector in Nigeria.

Mrs Adeosun reportedly obtained the certificate in question 20 years after her graduation in September 2009. The certificate, according to reports, was purportedly signed by a late Director General of the scheme, Mr Yusuf Bomoi, who was said to have retired from service eight months earlier than the date the minster obtained the document.

The management of NYSC admitted that the Minister had actually applied for an Exemption Certificate but was not specific whether Mrs Adeosun had been issued the certificate.

In a statement signed by the Director, Press and Publications Relations, Mrs Adenike Adeyemi, the scheme said it would investigate the origin of the purported Exemption Certificate in question.

Also, the Minister of Youths and Sports, Mr Solomon Dalung, had summoned the Director General of NYSC, Brigadier General Suleiman Kazaure, to obtain first-hand information from the DG on what transpired and how far the scheme had gone with the investigation.

Mr Dalung promised that as soon as he was done getting the brief from the NYSC boss, he would brief Nigerians on the matter

Eligible Nigerians who skipped the service are liable to be sentenced to 12 months imprisonment and/or N2,000 fine, according to Section 13 of the NYSC Act. Section 13 (3) of the Act also prescribes three-year jail term or option of N5,000 fine for anyone who contravenes provision of the law.

Subsection 4 of the same section also criminalises giving false information or illegally obtaining the agency’s certificate. It provides for up to three-year jail term for such offenders.

https://www.businesspost.ng/2018/07/15/certificate-saga-adeosuns-silence-very-dangerous-serap/

By Modupe Gbadeyanka

The International Monetary Fund (IMF) has warned that Nigeria’s economic outlook for 2018 still remains challenging.

The global lender made this observation at the end of its visit to the country this week.

From June 27 to July 9, 2018, an IMF staff team led by the Senior Resident Representative and Mission Chief for Nigeria, Mr Amine Mati, visited Nigeria, where they held “productive discussions with senior government and central bank officials.”

The team also met with representatives of the banking system, the private sector, civil society, and international development partners.

In a statement issued at the end of the visit, which was obtained by Business Post, the IMF said, “Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging.”

The global financial institution said Nigeria’s external reserves have remained stable at about $47 billion, supported by some convergence in existing foreign exchange windows, and despite some reversal of foreign inflows since April.

It noted that inflation declined to its lowest level in more than two years with real GDP expanding by 2 percent in the first quarter of 2018 compared with the first quarter of last year.

“However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending,” the bank stressed.

It pointed out that, “Corporate tax collection efforts improved but revenue shortfalls and the late adoption of the 2018 budget impede its implementation.

“Revenue from higher oil prices is limited by net losses from retail fuel sales while non-oil revenue remains below expectations, with yields from tax administration measures—including the Voluntary Asset Income Declaration Scheme (VAID) and increased tax audits—yet to fully materialize.

“Current spending remains in line with expectations. Carryover from 2017 to 2018 helped increase capital spending in the first four months of 2018, despite delayed approval of the 2018 budget.

“Lower yields have kept interest payments within the budgeted envelope, but the Federal Government’s interest-to-revenue ratio is expected to absorb more than half of revenues this year.”

“Reforms to improve the business environment are progressing, including through identification of priority investment projects and the adoption of the Company and Allied Matters Act (CAMA)—a legislative landmark for private sector development.

“The implementation of the Power Sector Recovery Plan is advancing through a mini-grid policy, and regulations on eligible customers and meter asset providers,” the IMF said in the statement.

It emphasised that, “Under current policies, the outlook remains challenging. Growth would pick up to about 2 percent in 2018, weighed down by lower than expected oil production and relatively weak agriculture growth. The fiscal deficit would narrow slightly, with higher oil revenues offsetting increased spending, including those planned in a supplementary budget.

“Inflation would pick up in the second half of 2018 as base effects dissipate and higher spending and supply constraints in agriculture put pressure on prices.

“Increased oil exports would keep the current account in surplus, helping stabilize gross international reserves even if the current pace of foreign portfolio outflows continues.”

Furthermore, the IMF said, “A coherent set of policies to reduce vulnerabilities and increase growth remains urgent.

“This includes specific and sustainable measures to increase the currently low tax revenue—including through avoiding new tax exemptions — and ensuring budget targets are adhered to even in an election year.

“This process should be supported by keeping monetary policy tight through appropriate monetary policy tools that will help contain inflationary pressures and support a move towards a uniform market-determined exchange rate.

“Moving ahead with structural reforms is needed to invigorate inclusive growth, particularly in the power sector where faster progress would be needed to ensure financing shortfalls in the sector are met in a sustainable manner.”

https://www.businesspost.ng/2018/07/13/nigerias-2018-economic-outlook-remains-challenging-imf/

Nigeria's 2018 Economic Outlook Remains Challenging—IMF Warns
https://www.businesspost.ng/2018/07/13/nigerias-2018-economic-outlook-remains-challenging-imf/

By Dipo Olowookere

Nigeria’s first professor of capital markets, Mr Uche Uwaleke, has warned that the nation’s equities market was too vulnerable to external shocks.

According to him, this was so because of the small size of the market.

To limit the impact of an external shock on the local bourse, efforts must be made to expand it, he said.

The highly respected financial expert lamented that it was unfortunate that foreign portfolio controls larger percent of the Nigerian market when compared with domestic investors.

“Foreign investors are significant players in the equities market, often dictating the pace of market activity. This leaves the market vulnerable to external shocks.

“At another level, the private bond market is very small compared to that for the government,” he noted.

Prof Uwaleke said in general, the Nigerian capital market presently contributes less than 20 percent to the nation’s Gross Domestic Product (GDP).

“Market liquidity, as measured by trading volume and turnover, is comparatively low. The issuer base is not diversified. More specifically, industry composition in the stock market is concentrated in a few,” he said.

Business Post reports that in 2017, the Nigerian Stock Exchange (NSE) was among the top five performing markets in the world, clinching the third place after appreciating by over 40 percent.

This year, the market’s Year-to-Date (YtD) returns, as at the close of market today, stood at -2.66 percent.

https://www.businesspost.ng/2018/07/12/nigerian-capital-market-contributes-20-to-gdp-vulnerable-to-external-shocks-prof-uwaleke/

Nigerian Capital Market Contributes 20% to GDP, Vulnerable to External Shocks—Prof Uwaleke
https://www.businesspost.ng/2018/07/12/nigerian-capital-market-contributes-20-to-gdp-vulnerable-to-external-shocks-prof-uwaleke/

Capital Bancorp Unveils Five Products to Boost Customer Service
https://www.businesspost.ng/2018/07/12/capital-bancorp-unveils-five-products-to-boost-customer-service/

Analysts Accuse DMO of Under-Reporting Nigeria’s Debts
https://www.businesspost.ng/2018/07/12/analysts-accuse-dmo-of-under-reporting-nigerias-debts/

GCR Affirms Ratings on Union Bank of Nigeria
https://www.businesspost.ng/2018/07/12/gcr-affirms-ratings-on-union-bank-of-nigeria/

Are these dealers in Lagos? Because as at today, Airtel was sold for N95.30k, MTN at N96.50k, which is constant now and Glo for N92.

But the major reason for this post is to let those who may have been told they could get these cards at ridiculous prices like N50, N60 and so on to know that it is never possible to get at such prices.

tobisco29:
Some dealers price are even more than what you wrote

By Dipo Olowookere

I have read several times about some Nigerians lamenting being scammed by fraudsters who claim they can go into recharge business by selling in bulk with as low as N10,000.

Each time I read or hear about victims crying about being scammed, I say to myself that they fell for it because they were ignorant and failed to do at least a bit of research before parting away with their hard-earned money.

The purpose of this article is to educate you on some basics of the recharge card business so that no one can fool you next time about it.

It is important I state that recharge card business is capital intensive, especially if you want to make huge profit.

First, none of the GSM network provider sells recharge cards in bulk directly to individuals or small scale sellers. They sell their recharge card pins directly to dealers, who have registered with them and must have millions of Naira to invest into the business.

In some cases, if not most, banks stand in as guarantor for these dealers because dealers are given targets to meet each month. Some networks, like MTN, give their dealers N1 billion turnover per month.

Now, when dealers buy these recharge card pins, which are then printed in cards and papers, they sell to those called the sub-dealers. Dealers also sell the recharge card pins to sub-dealers as Virtual Top Up (VTU).

In some cases, some of these sub-dealers buy recharge cards worth N10-50 million daily from dealers to resell to those who hawk the cards to retailers (those who sell the product under umbrellas by the roadsides, shops and others).

Recharge Card Prices

The prices of recharge cards are influenced by demand and supply. When there is a huge demand for a network’s recharge card, the price goes up because it is scarce in the market. However, when there is less demand for it, the price drops.

In most cases, the prices of recharge cards go up at the beginning of the month and drops at the end of the month. This is because at the end of the month, most dealers are after meeting their targets and would sell at a lower rate in order to get the commission network providers give to dealers who meet their targets.

But MTN, which is the market leader, has somehow stabilised its price at the market unlike in the past.

From my investigation, MTN sells its N100 recharge card to dealers at N96 and it expects them to sell to sub-dealers and retailers at N96.50k. It came up with this policy so as to stop the sale of its cards above the face value like it happened in the past where the N100 voucher was sold for N110.

For Airtel, the price ranges from N94.50k to N95.50k, depending on who is selling it and the volume being purchased.

For Etisalat, the price ranges from N94 to N95, while Glo goes for N90 to N92.

In recharge card business, the prices of other card denominations are calculated using the price of the N100 cards.

If anyone approaches you to say he can get you recharge cards of any network at rates about N3-5 below the above prices, you should raise a red flag.

Also, if anyone says you can start printing recharge cards as low as N10,000, you should raise an eyebrow because no network sells their recharge card pins to sub-dealers or retailers, but dealers alone, who are like partners in the business with them. In fact, the network providers call their dealers Trade Partners.

If you require further information or clarification, please feel free to reach us

https://www.businesspost.ng/2018/07/11/before-you-fall-into-recharge-card-business-scam-read-this/

NSE Nominal Transfers Rules Take Effect Today
https://www.businesspost.ng/2018/07/11/nse-nominal-transfers-rules-take-effect/

Investors Anticipate N314b Maturing T-Bills
https://www.businesspost.ng/2018/07/09/investors-anticipate-n314b-maturing-t-bills/

Cadbury Nigeria Plans to Increase Market Share, May Consider Rights Issue for Fresh Capital
https://www.businesspost.ng/2018/07/08/cadbury-nigeria-plans-to-increase-market-share-may-consider-rights-issue-for-fresh-capital/

Inflation to Drop in June to 10.94% from 11.61%—FSDH Analysts
https://www.businesspost.ng/2018/07/08/inflation-to-drop-in-june-to-10-94-from-11-61-fsdh-analysts/

Dangote Takes Over Katsina Songhai Initiative to Boost Revenue
https://www.businesspost.ng/2018/07/06/dangote-takes-over-katsina-songhai-initiative-to-boost-revenue/

SEC Yet to Hear From MTN on Proposed Nigerian IPO
https://www.businesspost.ng/2018/07/06/sec-yet-to-hear-from-mtn-on-proposed-nigerian-ipo/

We’re Restructuring Our Manufacturing Operations in Nigeria—P&G
https://www.businesspost.ng/2018/07/05/were-restructuring-our-manufacturing-operations-in-nigeria-pg/

VAIDS: FG to Release Names of Tax Defaulters Mid-July
https://www.businesspost.ng/2018/07/05/vaids-fg-to-release-names-of-tax-defaulters-mid-july/

NSE Suspends Trading in Shares of African Alliance, 7 Others
https://www.businesspost.ng/2018/07/05/nse-suspends-trading-in-shares-of-african-alliance-7-others/

Skye Bank Assures Shareholders Positive Turnaround as CBN Extends Board's Tenure
https://www.businesspost.ng/2018/07/05/skye-bank-assures-shareholders-positive-turnaround-as-cbn-extends-boards-tenure/

Flour Mills to Exploit Value-Accretive Opportunities for Business Growth
https://www.businesspost.ng/2018/07/05/flour-mills-to-exploit-value-accretive-opportunities-for-business-growth/

Procter & Gamble to Shut Down $300m Factory in Nigeria, Sacks Workers
https://www.businesspost.ng/2018/07/04/procter-gamble-to-shut-down-300m-factory-in-nigeria-sacks-workers/

Ecobank Plans 5-Year Dollar Bond to Refinance Debts
https://www.businesspost.ng/2018/07/04/ecobank-plans-5-year-dollar-bond-to-refinance-debts/

Dangote Cement Attributes Success of N50b CP Issuance to Market-Leading Positions
https://www.businesspost.ng/2018/07/04/dangote-cement-attributes-success-of-n50b-cp-issuance-to-market-leading-positions/

By Modupe Gbadeyanka

Federal Government has stressed that Nigerians have not become poorer under the present administration of President Muhammadu Buhari as claimed by a recent report.

Few days ago, the World Data Lab in Vienna, Austria released a report titled World Poverty Clock, indicating that Nigeria has taken over India as the capital of poverty in the world with over 80 million Nigerians living in poverty.

The federal government, through the Ministry of Budget and National Planning, which is headed by Mr Udoma Udo Udoma, faulted the World Data Lab report.

In a statement released yesterday, the ministry said it would not accept the report because it was not properly conducted.

“The attention of the Ministry of Budget and Planning has been drawn to a recent publication on the World Poverty Clock by World Data Lab in Vienna, Austria, indicating that Nigeria’s poverty rating was getting worse.

The Ministry has reviewed this report and would like to assure Nigerians that the report is not based on any recent surveys of the poverty levels in Nigeria and cannot be relied upon as a factual indication of recent trends in Nigeria.

“The authors of the report claim that the Poverty Clock is an online analytical/visualization tool that shows the number of people living in extreme poverty worldwide and count(s) ‘excess’ poverty - the gap between the actual number who have escaped poverty since end-December 2015 and the hypothetical number of who should have escaped in order for the world to be on-track to reach the global target of ending poverty by 2030.

“It should be noted that in deriving its poverty estimates, the Poverty Clock does not, and in this case did not, directly rely on household survey data as national statistical offices in most countries do. Instead, as stated in their methodology, they rely on models to estimate poverty rates across countries using data provided by national governments to international agencies.

“The models make assumptions on expected future changes in income, IMF medium-term growth forecasts and long-term projections and analysis developed by the OECD, all of which are significantly influenced by uncertainty. It is, in essence, just a model based on a lot of assumptions which cannot substitute for field work involving actual data collected from households in a consistent and representative way.

“In the specific case of Nigeria, the Poverty Clock uses as baseline the General Household Survey which was not designed to measure poverty indicators accurately and follows a methodology that can be misleading if relied upon for poverty estimates.

“In line with extant laws, the National Bureau of Statistics (NBS) remains the statutory agency of government with responsibility for producing Nigeria’s official statistics, including poverty estimates. Like several other countries, Nigeria’s poverty estimates are obtained from the National Living Standard Survey (NLSS) undertaken every five years, and which was last conducted in 2010.

“While several other household surveys are routinely conducted by the NBS, none are as comprehensive as the NLSS, which is the appropriate household survey to determine poverty estimates. The next round of the NLSS is currently being undertaken by the NBS, in collaboration with the World Bank, and this will be concluded in 2019. There is currently no other comprehensive household study on current poverty trends in Nigeria.

“It is therefore pertinent to note that the World Poverty Clock is a model-based estimation of poverty, relying on projections and assumptions that cannot substitute for actual household survey approach which most countries adopt.

“This implies that it is not possible to conclude Nigerians poverty position until the NBS completes the NLSS, as no comprehensive field work has been done in Nigeria, and among Nigerian households, as is required according to standard international methodology.

“It is however important to point out that the Federal Government of Nigeria, in line with strategies outlined in the Economic Recovery and Growth Plan (ERGP), remains committed to promoting sustainable economic development through various social investment schemes that will yield positive impacts on poverty and unemployment; and will consequently change the trajectory of poverty in the country.

“Apart from the Social Investment Programme (SIP) which has engaged a lot of youths in entrepreneurial and skills training alongside the school feeding programme which has provided balanced meals for millions of school children, government believes that the fastest way to reduce the level of poverty and increase social inclusion is to create jobs.

“In the ERGP, this administration is committed to creating 15 million jobs in four years by 2020 by developing labour intensive sectors such as agriculture, manufacturing housing and construction.

“Government is also committed, and has been vigorously expanding public works in infrastructure, such as railways, roads and bridges, which is catalysing economic growth, as is evident from the turn-around in the GDP growth numbers.

“In order to support and encourage private sector investment, government has placed emphasis on Made-in-Nigeria products; and public procurement is focused on local content and labour-intensive production processes.

“Government is also enhancing the ease of doing business and tackling power challenges to attract private sector investment that will in turn create jobs and further reduce poverty levels across the country.

“The impact of these efforts, amongst others, will certainly translate to a reduction of the poverty levels in Nigeria. After emergence from recession in 2017 all major economic indices have turned positive in the last 12 months.

“We are therefore optimistic that any poverty survey carried out now will show that this administration is succeeding in turning around the negative trajectory that the economy had been on before we took over. And that this turnaround will succeed in lifting millions of Nigerians out of poverty,” the statement said.

https://www.businesspost.ng/2018/07/03/nigerians-not-poorer-under-buhari-fg/

CBN to Auction N170.5b Treasury Bills via PMA
https://www.businesspost.ng/2018/07/03/cbn-to-auction-n170-5b-treasury-bills-via-pma/

Pinnacle Oil & Gas to Acquire 6b Shares of Capital Oil for N600m
https://www.businesspost.ng/2018/06/29/pinnacle-oil-gas-to-acquire-6b-shares-of-capital-oil-for-n600m/

Wema Bank Appoints Adebise Acting MD/CEO as Oloketuyi Retires
https://www.businesspost.ng/2018/06/29/wema-bank-appoints-adebise-acting-md-ceo-as-oloketuyi-retires/

Nigeria Has $1.92b in Excess Crude Account—Minister
https://www.businesspost.ng/2018/06/29/nigeria-has-1-92b-in-excess-crude-account-minister/

By Damilola Faustino

Nearly every week, we hear reports of startups in Africa raise funds. But what do the different types of funding rounds mean?

Well, a funding round is anytime money is raised from one or more investors for a business. They’re given a letter, such as A Round, B Round, C Round, etc. because each round follows another. The letter identifies which number of rounds they’re on.

Here, we take a closer look at the types of rounds and what they mean.

Series A round funding

Investing at this stage is usually regarded as high risk because the company will probably still be at the startup stage with a lot to prove.

Angel investors may be interested, but venture capitalists may also invest. Angels usually invest their own money and are often considered high net worth individuals. VCs and other institutional investors tend to invest other peoples’ money, so, they usually only invest in companies with a proven track record to reduce their risk.

Series B funding

A series B round is the second round of funding by private equity investors and VCs. By this stage, the company will probably have a higher valuation than before. The risk will be lower than before as the business will have a track record – so the cost to invest will be higher. Investors will expect to see signs of growth at this stage in revenue, users and product/service success

Series C round

A series C round is needed when a company is ready for rapid growth. The company will usually: have become a proven success in its market, wants to make acquisitions of competitors, increase market share and scale up or develop new products or services.

Venture Capital

This type of situation is different than an angel in that it is an organization of investors. Usually, this type of investor isn’t as interested in the early stages of a startup and prefers to see some return before they get involved. They like to make deals where they know they will get a return so they can be turned off by too much risk. However, they are more likely to invest a larger sum of money, but typically require ownership and to be placed in a decision-making position.

Seed/angel fund

Seed round usually occurs when the company is at the initial idea stage, or once the founder has a prototype/proof of concept, as well as some kind of sign that there’s a demand for what could be offered.

Meanwhile, an angel round often occurs when a company is only just launching, if not before. Chances are that it will need an investment to support the business because it probably won’t be generating a big enough cash flow to cover all the day-to-day running costs. Sometimes a seed round and an angel round aren’t two separate rounds, they can be a hybrid of the two.

Despite the name, both seed and angel investment rounds usually include a large proportion of funding from friends and family. It can also include money from angel investors who are focused on early-stage companies.

https://www.businesspost.ng/2018/06/28/types-of-startup-funds-for-nigerian-entrepreneurs/

By Dipo Olowookere

The management of Cement Company of Northern Nigeria (CCNN) Plc has confirmed merging with a subsidiary of BUA Cement Company Limited, Kalambaina Cement Company Limited (Kalambaina Cement).

The aim of this merger, Business Post gathered, is to boost operations of CCNN, a company listed on the trading platform of the Nigerian Stock Exchange (NSE).

Shares of CCNN closed flat at the market today at N23.50k per share, while share price of its main industry competitor, Dangote Cement, finished at N225 per share. Dangote Cement controls over 60 percent of the cement market in the country.

A statement issued today on the NSE disclosed that the merger between CCNN and BUA Cement is still subject to approvals of the relevant regulatory agencies and shareholders.

However, the boards of directors of CCNN and Kalambaina Cement have agreed to the deal.

Kalambaina Cement is a wholly owned subsidiary of BUA Cement Company Limited.

According to the statement, both boards are resolute in their aspiration to strengthen the competitive position of the enlarged company among cement manufacturers in Nigeria.

“It is in furtherance of this aspiration and a collective vision to create value for all key stakeholders of both companies that the proposed merger is being considered.

“The Proposed Merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue from the Proposed Merger.

“As consideration for the Proposed Merger, the shares of CCNN will be issued and allotted to all shareholders of Kalambaina Cement in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN's 30-day volume weighted average closing price (VWAP) to June 22, 2018 of N25.99k per share.

“It is proposed that each shareholder in Kalambaina Cement shall be entitled to receive 19,811,372 new ordinary shares of CCNN for every 100,000 Kalambaina Cement shares.

“Should the necessary regulatory approvals, including those of the NSE and the Securities and Exchange Commission (SEC) be received, the parties will take further steps to consummate the proposed combination including obtaining the approval of their respective shareholders at separate Court-Ordered Meetings,” the statement said.

https://www.businesspost.ng/2018/06/28/ccnn-bua-cement-merge-to-dominate-market-give-shareholders-value/

CCNN, BUA Cement Merge to Dominate Market, Give Shareholders Value
https://www.businesspost.ng/2018/06/28/ccnn-bua-cement-merge-to-dominate-market-give-shareholders-value/

By Dipo Olowookere

The Ekiti State government and its Lagos State counterpart have signed a Memorandum of Understanding (MoU) on the cultivation of rice.

Governor of Ekiti State, Mr Ayodele Fayose, confirmed this development on his Twitter page on Thursday.

According to him, his government will provide land for the rice cultivation, while the Lagos State government would provide the funds and expertise.

This development follows a similar deal signed between Lagos State and Kebbi State on the production of LAKE Rice few years ago.

The move was applauded then by many Nigerians, who challenged other state governments to look at ways to work together to boost their respective economies.

“Ekiti government has signed an MoU with Lagos State government on rice cultivation.

“Land [for the project is] to be provided by the Ekiti government while Lagos government [will] provide fund and technical expertise,” Mr Fayose disclosed today.

Rice is a staple food consumed by many Nigerians, but it is unfortunate that the country relies on importation of the commodity to meet local demands.

Since the inception of this present administration, there have been efforts to stop importation of rice into the country.

Few days ago, federal government threatened to close a border with a neighbouring country over the smuggling of foreign rice into Nigeria.

“Our other problem is smuggling. As we speak, a neighbour of ours is importing more rice than China is importing.

“They do not eat parboiled rice, they eat white rice, they use their ports to try and damage our economy.

“I am telling you now because in a few days, you will hear the border has been shut, we are going to shut it to protect you, us and protect our economy.

“You will start seeing all sorts of negative things on the internet.

“Let me tell you why we need to shut the border, I grow rice, I was the first Nigerian to mill rice free of stones, if you plant rice in certain parcels of land, some poisonous materials get into the rice,” the Minister of Agriculture and Rural Development, Mr Audu Ogbeh, had told youths in a leadership clinic under the auspices of Guardians of the Nation International in Abuja.

In March this year, Africa’s richest man, Mr Aliko Dangote, had said he was determined to ensure rice importation in Nigeria became a thing of the past.

This he said he was doing by aggressively investing in the rice sector by laying a foundation stone for the construction of a multi-billion Naira rice processing mill in Hadin, Jigawa State.

According to him, the plant will in one year process paddy rice worth N14 billion bought directly from the famers in Jigawa at market rate.

Recalling that the Dangote Rice limited started the outgrowers scheme in 2016 with thousands of hectares of land in Hadejia, Jigawa state, creating over 10,000 jobs (direct and indirect) to farmers, the business mogul said with the new ultra-modern mill enough paddy rice will be grown and harvested for processing.

Last year, WACOT Rice Limited, a member of the TGI Group, commissioned its newly built rice processing mill with 120,000 metric tonnes capacity in Argungu, Kebbi State.

In August 2017, Managing Director and CEO of First Bank of Nigeria, Dr Adesola Adeduntan, claimed Nigeria imports nearly a shipload of rice every week despite the nation being one of the most agriculturally fertile countries in Africa.

Business Post recalls that in November 2017, Minister of Information and Culture, Mr Lai Mohammed, had said the importation of rice into Nigeria had significantly dropped from 644,131 Metric Tonnes to about 21,000 MT between September 2015 and September 2017.

https://www.businesspost.ng/2018/06/28/breaking-ekiti-lagos-sign-agreement-on-rice-production/

NEM Insurance Plc’s 48th AGM and Associated Governance Issues
https://www.businesspost.ng/2018/06/28/nem-insurance-plcs-48th-agm-and-associated-governance-issues/

Overnight Rate Jumps by 14.58% as T-Bills Yields Add 0.09%
https://www.businesspost.ng/2018/06/28/overnight-rate-jumps-by-14-58-as-t-bills-yields-add-0-09/

UPDC Gets Regulatory Approval to list N4.4b Bond
https://www.businesspost.ng/2018/06/27/updc-gets-regulatory-approval-to-list-n4-4b-bond/

Union Bank Completes N1.6b Off-Market Shares Deal
https://www.businesspost.ng/2018/06/27/union-bank-completes-n1-6b-off-market-shares-deal/

Nigerian States’ Domestic Debts Hit N3.4tr, Lagos Tops Chart
https://www.businesspost.ng/2018/06/27/nigerian-states-domestic-debts-hit-n3-4tr-lagos-tops-chart/

By Dipo Olowookere

Data released by the Debt Management Office (DMO) has revealed that as at December 31, 2017, the total domestic debts of the 36 states in Nigeria and the Federal Capital Territory (FCT) Abuja have increased to N3.35 trillion.

According to the data obtained by Business Post from the website of the debt office, the debts rose sharply by 13.2 percent from N2.96 trillion as at December 31, 2016

A breakdown of the figures released by the DMO showed that Lagos emerged as the most indebted state in Nigeria with N363.3 billion as at December last year in contrast to N311.8 billion it was in 2016, representing a 16.5 percent rise.

Lagos was followed by Delta State, which owed N228.3 billion against N241.3 billion in 2016.

Rivers State followed with N191.2 billion, while Akwa Ibom State came fourth with N187.2 billion and the fifth place was occupied by Osun State with N138.2 billion.

However, the least indebted state in Nigeria is Anambra with a total of N2.6 billion.

The next is Sokoto State with N26 billion, Yobe State with N26.5 billion, Kastina State with N31.1 billion and Jigawa State with N33.3 billion.

Check here for the full debt profile: https://www.businesspost.ng/2018/06/27/nigerian-states-domestic-debts-hit-n3-4tr-lagos-tops-chart/

Treasury Bills Yields Rise to 13% amid Selloff
https://www.businesspost.ng/2018/06/27/treasury-bills-yields-rise-to-13-amid-selloff/

CBN Resumes OMO Auction as Overnight Rate Jumps to 12.83%
https://www.businesspost.ng/2018/06/25/cbn-resumes-omo-auction-as-overnight-rate-jumps-to-12-83/

Dangote Cement Targets Additional 6Mta Plants by 2020
https://www.businesspost.ng/2018/06/25/dangote-cement-targets-additional-6mta-plants-by-2020/

It is very easy to tag a write-up as blackmail. As stated in the report, this piece was inspired by recent alleged fraud stories in the public space about the bank, which brought about the headline.

If the intention of this piece was to blackmail or de-market the bank, I would not have contacted them to ask about efforts they are making to address the incessant frauds linked with the bank lately.

Let me point out that I reached out to the bank for their reaction on May 23, 2018 and they gave a response last week and the story was eventually published June 24, 2018 (over a month). Thanks

helphelp:
Such headlines pose a RED FLAG already on the bank. I do not know your intentions, but if CBN can assure me of my deposit in case the bank goes downtrodden then your write up points to nothing but blackmail.

On the other hand, do your research with NDIC quite well you'll see that all the banks are as guilty as FCMB, curbing fraud is a continuous process and no single bank in the world is void of it.

And again, you mentioned UBA in your write up but fail to put them in your headlines, just because you know most people won't read the whole thread, to know they were involved at a point in your search.

I ask you, to what end is this your write-up? To be honest, it's far from eye-opener more like an attempt to drag the bank's name in shambles.

Either ways, I hope people base their decisions on further research and also, to confirm that the bank is still standing strong.

NB: I don't have a FCMB account, I run a business and I know the length competitors can go to drag a business down.

Great week ahead. And hopefully, we reunite after our victory against Argentina

By Dipo Olowookere

A bank is a financial institution that accepts deposits, which could be in form of cash or valuables, from the public with intention of keeping them safe for the owners.

However, when an institution that is supposed to be the safest place to keep valuables is riddled with stories of alleged fraudulent activities, then one must begin to wonder if the hard-earned deposits in their care are still safe.

Early this year, a report by the Nigeria Deposit Insurance Corporation (NDIC) had revealed that the number of employees of banks operating in Nigeria involved in malpractices in the financial sector increased in 2017 to 320 from 231 in 2016.

The report also documented other miscellaneous crimes such as fraudulent transfers/withdrawals, cash suppression, unauthorised credits, fraudulent conversion of cheques, diversion of customer deposits, diversion of bank charges, presentation of forged or stolen cheques, among others.

It had disclosed that the 22 licensed commercial banks and four merchant banks rendered 286 returns on dismissed/terminated staff as a result of fraud and forgeries during the year under review.

NDIC had said out of the 26,182 fraud cases reported by the 26 licensed banks, 320 cases were attributable to internal collaboration by bank staff.

The report relied on a total of 286 responses received from 26 banks during the period under review.

“The 286 responses received from banks in 2017 cited 26,182 cases of fraud and forgeries which is 56.30% higher compared to 16,751 cases reported in 2016.

“Similarly, the amount involved in the fraudulent activities documented increased by N3.33 billion from the N8.68 billion reported in 2016 to N12.01 billion in 2017 or 38%.

“However, the Expected/Actual loss slightly decreased by N24.42 million or 1.03% from N2.39 billion in 2016 to N2.37 billion in 2017,” Head of Communications and Public Affairs Unit of NDIC, Mr Mohammed Kudu Ibrahim, had said.

On fraudulent activities in the online-banking and ATM/card-related fraud-types, Mr Ibrahim said it constituted 24,266 or 92.68 percent of all the reported cases, resulting in N1.51 billion or 63.66 percent loss in the industry in 2017.

In recent times, there have been unpalatable news stories coming out from First City Monument Bank (FCMB), a mid-tier lender in Nigeria.

Recently, it was reported that eight members of staff of the bank were declared wanted by police in Lagos over the disappearance of N600 million from accounts of customers of FCMB.

The Divisional Police Office, Lion Building, Campbell Street at the Lagos Island had urged members of the public with information of the fleeing suspects to get in touch with the nearest police station or call 08033068667 and 08182465467.

The names of the bankers declared by the police were Linda Natufe Chekwube, Matthew Akpan Benny, Juwon Faromoh, Oluwasoji Ajetumobi, Ogunlaja Olasukanmi Ganiyu, Oshiojum Chibuzor Wilson, Akanaga Christian Chika and Nelson Omuzagha.

Recall that on January 19, 2018, two officials of the bank identified as Walter Ekomaye and Ebenezer Adelowo, were arraigned for allegedly making illegal withdrawal of N23 million from customers’ accounts and stealing N17.5 million from Automated Teller Machine (ATM) deposits.

In another case, a staff of FCMB known as Adejare Sonde was arraigned recently over the theft of N124 million from a depositor’s account.

Operatives of the Economic and Financial Crimes Commission (EFCC), in Ibadan Zone, arraigned the suspect before Justice A. A. Akinyemi of the State High Court sitting in Abeokuta, Ogun State, on a 12-count charge bordering on stealing, forgery and uttering.

Sonde was accused of using his position as the account officer to a micro-finance bank to steal N124 million from the customer’s account.

The petitioner explained that Sonde, as account officer of the customer, allegedly collected cash from the micro-finance bank on several occasions totalling N124 million which were not credited into the customer’s account.

Further investigations revealed that the defendant (Sonde) allegedly doctored emails which he sent to the micro-finance bank as monthly statements of account, while there was no remittance in the account.

Few weeks ago, a Federal High Court sitting in Lagos ordered FCMB and United Bank for Africa (UBA) Plc to appear before it to explain their roles in an alleged N131.2 million fraud charge.

Justice Hadiza Rabiu-Shagari gave the order during the trial of four accused persons, who were arraigned before her court by the Force Criminal Intelligence and Investigation Department (FCIID), Alagbon-Ikoyi, Lagos.

The four accused persons are: Honourable Anthony Alaka, (a.k.a General, a former member of the House of Representatives, representing Eti-Osa Federal Constituency, Saidi Oke, Bashir Mohammed: and Alhaji Umar Ali.

The four accused persons were arraigned on charges bordering on conspiracy and fraud to the tune of N131.2 million.

Also charged with the accused persons are two firms: Grantland Investment Nigeria Limited and Abroad Development Foundation.

At the resumed trial of the accused persons, the fraud victim, Austin Albert Ugochukwu, had informed the court the suspected fraudsters, carried out the alleged act through the three banks.

Consequently, the prosecutor, Dr Iman E., asked the court to summon the banks so that they can come and explain their roles in the alleged alleged fraud.

Upon the request of the prosecutor, Justice Rabiu-Shagari, summoned the banks and ordered that hearing notice should issue to them.

Narrating his ordeal before the court, the fraud victim, Ugochukwu, told the court how each of the accused persons induced him to give them the sum of N350 million in exchange for $1 million, and how they reneged only to give him $29, 900, 000.

In his evidence before the court, the victim said: “I transferred the sum of N350 million from my Bank account, to Grantland Investment Nigeria Limited, domiciled in UBA and FCMB, belonging to Alhaji Umar (fourth defendant), from my account. And since the money was paid, the fourth defendant refused to pick my calls, it was then I told my account officer to place post-no-debit order on the account, so that they would not be able to access the money.

“I was surprised, when the fourth defendant who have not being picking my calls, quickly called and said he was with the General (first accused) and was confirming the Dollars cash, and wanted to transfer the N350 million into the account of Grantland investment Limited, before General will allow him to bring the $1 million to me, but my account has been restricted, and told me to lift the restriction, so that he can come to me with the dollars”.

Ugochukwu said he refused the fourth accused person plea, but later yielded due to the intervention of one Dr. Cyraicus Anyawu, who is now at large, whom he said convinced him in Ibo language, and that he later called his account officer to lift the restriction.

He also told the court that after he lifted the restriction on his account, the second accused, Saidi Oke, only came to him with $29,199, USD, and promised to come on the next day with the balance of $870,100, but to his surprise, the second accused called and told him that he was at the Ikoyi office of the Economic and Financial Crimes Commission (EFCC), where a petition was written against him and seller of the Dollars.

Ugochukwu further told the court that while the other accused were arrested except first accused, they told him that he had been defrauded and he collapsed upon hearing that, and that when he regained his consciousness, they told him to withdraw the matter if he wanted to get his money back.

He also told the court how the men of Inspector-General of Police Monitoring Team (IGP monitoring) mounted pressure on the Area ‘J’ Command, Lagos, to transfer the matter to them in order to frustrate it, but added that the first accused, Honourable Alaka, who had been elusive while the case was in Lagos, was arrested.

These are few of the many negative stories of FCMB in the public domain, giving the financial institution a bad perception, which is might not merit.

FCMB, led by Mr Adam Nuru, prides itself as one of the most reliable financial institutions in Nigeria, but issues like these leave many to doubt this claim.

Apart of cases of fraud, which have made some depositors of the lender to continue to wonder how safe their monies are, there are reports and allegations that the bank treats its workers like slaves, a claim Business Post has not independently verified and would not want to subscribe to.

However, one key question some may have asked is what FCMB is doing to ensure its bank is not a safe haven for fraudsters in banker’s clothes.

Business Post reached out to the management of FCMB on the issues raised in this piece.

In his reaction, Head of Media Relations at FCMB, Mr Louis Ibe, said “from all indications, no customer has shown any fear about the safety of his or her deposit and there’s no inquiry from any other person either, on the rumoured allegation in the Social Media you mentioned.”

He further said the financial institution was growing stronger, “reporting a gross revenue ofN169.9 billion” in the 2017 financial year.

“Going by the audited results, the Group recorded a profit before tax (PBT) of N11.5 billion, while profit after tax (PAT) was N9.4billion. Following these, the financial institution has recommended a dividend of 10 kobo per share to be paid to shareholders.

“And in demonstration of the enhanced confidence of customers in FCMB, deposits grew to N689.9 billion as at the end of December 2017, an increase of 5 percent, from N657.6 billion in the corresponding year.

“The Group’s capital adequacy ratio also improved to 16.9 5 percent from 16.7 5 percent, just as asset base increased to N1.19 trillion, compared to N1.17 trillion at the end of 2016. Non-interest income as at the end of 2017 was N32 billion, while loans and advances stood at N649.8 billion.”

According to him, “in spite of the reduction in the headline numbers, the Group’s performance for the year 2017 witnessed an improvement in core operating performance over the previous year after adjusting for the significant foreign exchange revaluation income enjoyed in 2016.

“In line with the repositioning strategy of the Group for better performance, the key drivers of the performance include increase in income from our non-banking activities, lower impairment charges from the Bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology.”

Mr Ibe further said in his reaction that, “In November 2017, FCMB completed the acquisition of an additional 60 5 percent stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2 5 percent to 88.2 5 percent, thereby making Legacy a subsidiary of FCMB.

“The acquisition helps achieve further diversification of service offerings and, consequently, earnings within the FCMB Group, which will be felt from the 2018 financial year.”

“FCMB Microfinance Bank Limited, the Group’s dedicated group lending and financial inclusion vehicle, commenced operations as a state microfinance bank in January 2017.

“The business will be the key driver of FCMB’s informal and agricultural sectors (particularly small-holder farmers) drive across the country. These two sectors account for over 40% of the country’s gross domestic product (GDP),” he added.

“Following these developments, FCMB Group Plc’s operating companies are now divided along three business groups – Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); and Asset & Wealth Management (Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited),” Mr Ibe noted.

The bank’s spokesman disclosed that “barring any unforeseen circumstances, we see improved operating performance in 2018 based on the improving macro-economic and capital markets environment, declining cost of funds for the bank, and the growing contributions of asset and wealth management following last year’s acquisitions.”

https://www.businesspost.ng/2018/06/24/how-safe-are-customer-deposits-at-fcmb/

T-Bills Yields to Remain Slightly Pressured
https://www.businesspost.ng/2018/06/22/t-bills-yields-to-remain-slightly-pressured/