The Federal Government has barred banks in the country from giving loans to state governments. The decision was taken in line with the Fiscal Sustainability Plan, FSP, which has been agreed to by the Federal Government’s economic team and state governors, to ensure prudent management of sub-national resources.

This comes as the Central Bank of Nigeria, CBN, will today announce details of the much anticipated ‘flexible’ foreign exchange rate policy. President Muhammadu Buhari’s administration, Finance Ministry sources said, was disappointed at the manner some past and current governors took loans from banks and misapplied such funds, while mortgaging their states’ finances.

Currently, some states are left with too little to meet even their recurrent obligations, after deductions are made from their monthly federation account allocations. Gives condition for bond proceeds release Rather than bank loans, the Federal Government asked states to source funds from the capital market for their infrastructure development.

It also insisted that funds sourced through bonds must not only be on bankable, measurable projects but must also be released in tranches. Vanguard gathered that the release of the proceeds of bond issuing will, henceforth, be on the basis of satisfactory utilization of earlier released proceeds.

The FSP aims to improve accountability and transparency; increase public revenue; rationalise public expenditure; improve public financial management; and sustainable debt management. Specific action points of the reform include biometric capture of all civil servants; establishment of an efficiency unit in each state, implementation of continuous audit, improvement in internally generated revenue, IGR, and measures to achieve sustainable debt management. States that meet the above FSP conditions can access a new N50 billion facility to be guaranteed by the Federal Government.

http://www.financialwatchngr.com/2016/06/15/fg-bars-states-bank-loans/

Beneficiaries of the 500,000 direct teacher jobs scheme under the N-Power programme will have a take home monthly salary of 23,000 naira. Applications into the scheme is billed to start on june 12 through the online portal npower.gov.ng.

“Beside their monthly take home pay estimated at about N23,000, the selected 500,000 graduates will also get computer devices that will contain information necessary for their specific engagement, as well as information for their continuous training and development. They get to keep the devices, even after exiting from the programme.

“According to the plan of the Buhari administration, the N-Power Teacher Corps programme is an invaluable opportunity for young Nigerians to make immense economic and social contributions to the nation, while developing their skills. It will also help to address the problems of inadequate teachers in public schools.

“Also, persons enlisted under the scheme will gain work experience and acquire key competencies through academic and non-academic capacity building programmes intended to improve their competitiveness in the workplace. Their devices will come loaded with knowledge-oriented applications and software that will enable them acquire the skills and capacity.

“Under the N-Power Knowledge scheme, there are three aspects: Creative, Technology Software and Hardware. These three sub-divisions will train 25,000 young Nigerians in all. “5,000 of them would be trained in Animation, Graphic Design, Post-Production, Script-Writing, all under the sub-division of N-Power Knowledge-creative category.

“The N-Power Knowledge scheme also has a technology category in two aspects: hardware and software. 10,000 Nigerians would be trained, and equipped in the area of software development, including web designer, and another 10,000 in hardware expertise, including repair, maintenance and assemblage of mobile phones, tablets, computers and other devices.

“Also, the N-Power Build category was designed, realizing that the presence of a well-trained and highly skilled youth population in any economy has direct impact on entrepreneurship/wealth creation, which in turn leads to a decline in unemployment.

“N-Power Build is, therefore, an accelerated training and certification (skills to job/enterprise) programme that will engage and train 75,000 young, unemployed Nigerians to build a new crop of skilled and highly competent workforce of technicians, artisans and service professionals.”

http://www.financialwatchngr.com/2016/06/09/500000-employed-school-teachers-will-be-paid-n23000-as-monthly-salary/

Nice one......let the process speed up before Senate change certain provisions in the constitution

New reports has emerged on the widely publised $6bn loan deal with China with a twist suggesting the fund is not a loan deal, but an additional investment opportunity to Nigeria. The Presidency on Saturday said President Muhammadu Buhari did not sign any loan deal with the Peoples Republic of China during his just-concluded one-week working visit to the country.

The Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, gave the clarification during a chart with a national daily (THE PUNCH).

Ahead of Buhari’s trip which started last Sunday, there were media reports that he would sign a $2bn loan deal with China during the visit as the Federal Government sought funds to finance the over N2tn budget deficit.

Reuters had reported that Adesina confirmed that loan agreement would be signed but he could not say how much until it was signed.

But the presidential spokesman told our correspondent on Saturday that there was no iota of truth in the report.

“There was no loan deal during the President’s visit to China. All that is coming are investments into Nigeria,” he stated.

At the conclusion of the visit on Friday, the Presidency had said the President’s trip yielded over $6bn additional investments for Nigeria.

The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, disclosed this in a statement made available to journalists.

Shehu said the President believed that the agreements concluded with the Chinese during the visit would have a huge and positive impact on key sectors of the Nigerian economy, including power, solid minerals, agriculture, housing and rail transportation.

He said, “In the power sector, North South Power Company Limited and Sinohydro Corporation Limited signed an agreement valued at $478,657,941.28 for the construction of 300 Mega Watts solar power in Shiriro, Niger State.

“In the solid minerals sector, Granite and Marble Nigeria Limited and Shanghai Shibang signed an agreement valued at $55m for the construction and equipping of granite mining plant in Nigeria.

“A total of $1bn is to be invested in the development of a greenfield expressway for Abuja-Ibadan-Lagos under an agreement reached by the Infrastructure Bank and Sinohydro Corporation Limited.

“For the housing sector, both companies also sealed a $250m deal to develop an ultra modern 27-storeyed high rise complex and a $2.5bn agreement for the development of the Lagos Metro Rail Transit Red Line project.”

According to the presidential spokesman, other agreements announced and signed during the visit included $1bn for the establishment of a hi-tech industrial park in Ogun-Guangdong Free Trade Zone in Igbesa, Ogun State.

He added that the Ogun-Guangdong Free Trade Zone and CNG (Nigeria) Investment Limited also signed an agreement valued at $200m for the construction of two 500MT/day float gas facilities.

“An agreement valued at $363m for the establishment of a comprehensive farm and downstream industrial park in Kogi State was also announced at the Nigeria-China business forum.

“Other agreements undergoing negotiations include a $500m project for the provision of television broadcast equipment and a $25m facility for production of pre-paid smart meters between Mojec International Limited and Microstar Company Limited.

“About 100 Nigerian businesses and 300 Chinese firms participated in the Nigeria-China business forum, which took place a day after President Buhari began his visit to China,” Shehu added.

http://www.financialwatchngr.com/2016/04/17/6bln-is-additional-investments-for-nigeria-not-a-loan-presidency/

As a way of finding solutions to the current currency slump in Nigeria, the Industrial and Commercial Bank of China Ltd (ICBC) and Nigeria’s Central Bank have signed a deal on Yuan transactions. Recently, many Nigerians have found it exceedingly difficult to pay for services like education and healthcare in other countries, due to the weak Naira, and this deal is an attempt to resuscitate the currency.

Reuters reports that the director general of the African affairs department of China’s foreign ministry, Lin Songtian, said the deal meant the Yuan will flow freely around Nigerian banks and will even be included in the country’s foreign exchange reserves. This deal is one of the outcomes of the meetings between Presidents Muhammadu Buhari of Nigeria and Xi Jinping of China, during the Nigeria-China Business/Investment Forum in Beijing, China.

Aside from the financial investments China has made in agriculture and infrastructure in Nigeria, the deal will provide a way for both countries to settle trade agreements in the Yuan. It appears that President Buhari is determined to transform Nigeria into an exporting country as opposed to a primarily consuming one, saying it is high time the country started exporting to China.

However, this is the not the first time Nigeria has made attempts to include the Yuan into its foreign exchange reserves.

In 2011, under the governor of the Central Bank of Nigeria at the time, Sanusi Lamido Sanusi, a small percentage of the country’s foreign reserves were in the Chinese Yuan. At the time, Nigeria’s $32 billion in reserves were 79 percent in dollars with the rest largely held in Euros and Swiss francs.

Bloomberg reports that Sanusi was cited saying the decision came because the Nigerian financial sector had a lot of confidence in the Chinese currency. “Confidence in China doesn’t mean lack of confidence in America. Europe and America will continue to be important parts of the world. Having said that, it will be almost living in a dream world to ignore China. It’s the second-largest economy in the world and it’s well managed,” Sanusi said.

In 2014, Central Bank’s deputy governor, Kingsley Moghalu, said the bank was looking to increase the percentage of Yuan foreign reserves in its possession from 2 percent to 7 percent. According to him, 85 percent of its foreign reserves were in dollars and it needed to have more in Chinese Yuan, as the country was taking a more important place in global trade. “It was clear to us that the future of international economics and trade will shift in large part to business with and by China. Ultimately the renminbi (Yuan) is likely to become a global convertible currency,” Moghalu said.

Now, the question is, will this integration of the Yuan help to shore up the Naira as intended by the president? The answer lies in the tentative decision that African countries are taking to dump the US Dollar as the prevailing currency in their foreign reserves. Since 2014, the world market has recognised the Yuan as a likely global reserve currency, a replacement for the dollar, which has led countries like Ghana, South Africa and Zimbabwe to integrate the renminbi (Yuan) into their financial markets. As a result of this, trade (however imbalanced) has increased between certain countries on the continent and China, as well as providing a fertile ground for demand for the currency on the continent.

http://www.financialwatchngr.com/2016/04/13/need-know-currency-swap-agreement-nigeria-china/

The impending doom for certificate forgers in five key federal government agencies may have come to a crescendo as whistle blowers within the agencies reveals troubling information about the number of top officers who got to their positions through the backdoors.

Some of the agencies involved include Nigeria Prisons Service, Nigeria Immigration Service, Nigeria Fire Service and the Nigeria Security and Civil Defense Corps, where hordes of officers were employed in questionable manners and quickly rose to head various departments. Many of them openly parade fake certificates purportedly issued by tertiary institutions.

These men and women now have less than one week (Friday April 15, 2016) to ‘honourably’ resign or risk being jailed for fraud..

According to some documents made available to journalists, some top-ranking officers bagged Masters degrees barely two years out of secondary school. One officer has a certificate from a university in Italy where she obtained a degree in Philosophy nearly ten years before she sat for her GCE.

This discrepancy was noticed in the academic details submitted by an Assistant Comptroller of the Nigeria Immigration Service (names withheld). The senior-ranking officer who heads one of the busiest units in Lagos State bagged a Bachelor’s degree in a foreign university (school name withheld) in 1983, followed by a Master’s degree in same university in 1985, but obtained a West Africa School Certificate in 1981 and GCE in 2005.

The Minister of Interior, Lt. Gen. Abdulrahman Dambazau (Rtd), initiated the certificate verification exercise, which has since been revealing startling and questionable academic certifications, including degrees awarded to some top-ranking officers by ‘unknown’ universities in Europe.

“The honorable minister has directed that officers/men holding and parading fake certificates purported to have been issued by tertiary institutions be given a soft landing to retire from service honorably between now and April 15, 2016,” a source with insight to the development told newsmen.

“Any officer whose certificates are eventually certified to have been issued outside the tertiary institutions so claimed would not only face dismissal from service, but also would be prosecuted in line with the provisions of chapter 030402(a) of the public service rules,” Nigeria Immigration Service said in a circular to all of its staff dated April 1, with reference number NIS/HQ/DFU/1283/T/3, and signed by Raymond T. A. Jaja, Assistant Comptroller General (Admin).

At the Nigeria Immigration Service, the certificates verification exercise which was approved by the Comptroller General of Immigration was conducted in all commands /formations from Monday, April 4 to Friday, April 8, 2016 as indicated in a circular with reference number NIS/HQ/DFU/1283/8.

A team of four officers/men visited each zonal command of the NIS to harness the certificates and credentials of all officers and men of the NIS; the exercise was compulsory for all serving officers/men whom they ensured were physically present as no document was accepted by proxy.

The Ministry of Interior has undergone several structural changes both in functions and nomenclature and today the ministry is responsible for, among others: granting of Nigerian citizenship; consular and immigration services; granting of business permits and expatriate quotas; recruitment of officers and men of the Prisons Service, Immigration Service, Fire Service and the Nigeria Security and Civil Defence Corps; and managing the retirement benefits of retirees of paramilitary services under its supervision.

http://www.financialwatchngr.com/2016/04/10/workers-immigration-prisons-gets-jittery-certificate-verification-exercise/

Swedish government has responded after a top bank got listed in the Panama paper leak scandal for allegedly having helped clients hide their wealth in offshore accounts with a view to evading taxes.

According to Bolund, Sweden’s minister for financial markets, says he is “upset” by the revelations, which have now prompted the ruling administration to consider tightening its laws to prevent such practices.

The government needs to consider “whether the laws we have are sufficient or whether legal changes are needed,” he said in an interview on Thursday. Sweden’s Financial Supervisory Authority and Tax Agency are already investigating the allegations. “That means that we can go ahead and investigate whether there have been cases where the law hasn’t been followed,” Bolund said.

Since the revelation from the Panama paper leaks which have thus far involved top politicians and influential businessmen in many countries like USA, Iceland, Sweden, Denmark, Nigeria and many others.

Some of the affected countries have reacted fiercely to the scandal which saw its first casualty, the Iceland PM resigning earlier this week.

Here in Nigeria, top shots such as Senate President Alh. Bukola Saraki has been named in the scandal. Others are former Senate President David mark, former Delta Governor who is also serving jail term in UK James Ibori, business mogul Aliko Dangote ant his brother Dantata, as well as TY danjuma.

While most countries are reacting fiercely against affected persons, we are yet to receive an official statement from the federal government or any court of competent jurisdiction. It is worrisome considering the fact that as a global scandal, how this is handled by Nigeria is important towards our diplomacy.

It is also surprising that the Nigerian people feel less concerned about who are involved, this may not reflect well on the integrity of Nigeria as a nation if the silence is maintained longer than necessary.

http://www.financialwatchngr.com/2016/04/08/panama-leaks-sweden-considers-stiffer-laws-as-nigeria-maintains-silence/

The forthcoming G20 summit this year according to Chinese government is not going to be about politics, it’s all about economic issues that will address the current economic crises happening globally.

Chinese Foreign Minister, Wang Yi, on Friday in Beijing fired the warning shot ahead of the country’s biggest diplomatic event of the year.

He said the summit, expected to be held in early September in the eastern Chinese city of Hangzhou, would gather major world leaders together like Chinese President Xi Jinping and U.S. President Barack Obama.

Speaking to reporters after meeting his German counterpart, Wang Yi said China wanted to make proposals at the G20 about global economic growth.

“We hope that the G7 can be like the G20 and concentrate on economic and development topics countries of the world are the most focused on.

“If certain countries, because of political aims, insert concrete issues like problems left over from history or disputes over territory or sovereignty into the G20, not only will this not benefit the issues’ resolution, it could impact upon the regional situation and stability and is inadvisable,’’ he said.

China has rattled nerves around the region with its increasingly assertive moves over territorial disputes in the East and South China Seas.

China disputes ownership with Japan of a group of uninhabited islets in the East China Sea.

China claims most of the resource-rich South China Sea amid rival claims by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

http://www.financialwatchngr.com/2016/04/08/not-time-politics-economic-issues-g20-summit-says-china/

Nigeria’s Vice President, Professor Yemi Osinbajor, says the Federal Government has developed a Strategic Implementation Plan for the 2016 budget.

Professor Osinbajo said that the plan articulates six thematic strategies that would constitute the short-term priority of the government over the next 12 months.

In his speech at the Nation’s Forum On The Economy held on Thursday in Lagos State, south-west Nigeria, the Vice President said that the government would focus on implementing about 33 Priority Actions under the six themes in the 2016 fiscal year.

Priority Actions

One of the priority actions, according to him, is a plan for lasting changes in the policy environment, national security and governance. He said it would enable the government achieve an appropriate foreign exchange regime, increase low interest lending to the real sector.

“We need to move toward a single digit interest rate, maintain capital spending in the budget at a minimum of 30%, complement this with funds from the infrastructure fund for commercial projects, intensify the implementation of public financial management reforms to grow revenues and cut costs,” he said.

Professor Osinbajo, however, stressed that there was no plan to cut staff numbers.

“You cannot say you are creating jobs and then cutting jobs.

“We will maintain sustainable debt management strategy, introduce fiscal incentives to improve collections, intensify the fight against corruption by increasing transparency, accountability and compliance with law and order and intensify public procurement reforms in projects to obtain value for money and cut cost.”

He said that part of the first plan was the governments’ commitment to sustaining the fight against insurgency, kidnapping and other violent crimes, terrorism, cyber-crimes, piracy, oil theft and illegal mining activities, intensify the reorientation of the populace through integrity campaigns.

On the second thematic strategy, the Vice President said that the government had a plan to further diversify the economy by fast-tracking industrialisation, Agriculture and Agro-Allied Processing as well as attracting investment into the Solid Minerals, Tourism and Entertainment Sectors.

The government is also looking at implementing measures to achieve self-sufficiency and become net exporters of certain agricultural items – rice in 2018, tomato paste in 2016 and wheat in 2019.

“We want to increase local production of maize, soya, poultry and livestock, so as to achieve self-sufficiency. The deadlines are to be announced in due course.

“We will revitalise and expand agro-allied processing to intensify local production and processing of cassava, cocoa, cashew, fruits and sesame seed, utilize 5,000 hectares of irrigable land in the 12 River Basin Development Authorities and utilise 22 dams for commercial farming activities by prospective investors,” the Vice President told the gathering.

He further said that part of the strategy to revitalise the economy were plans to develop Dadinkowa, Gurara and Oyan dams with 82.5 megawatts capacity contribution to the national grid, adopt and implement a roadmap to stimulate investment into the solid minerals sector and plug revenue leakages in the sector.

Professor Osinbajo also stated that the government would implement the National Industrial Revolution Plan, launch the ‘made in Nigeria’ campaign, increase manufacturing capacity through the operationalisation of industrial parks and free export processing zones among others.

Part of the second set of the priority actions are plans to enhance support facilities to provide increased financial, technical assistance, networking and information to new investors and existing enterprises, implement the roadmap to increase private sector investment in culture, tourism, entertainment and sports and create high-technology innovation hubs to support growth in the digital and technology sectors.

In the third category are plans to make critical infrastructure a priority, which the Vice President was optimistic would increase investment in power, rail and roads.

The government will also optimise the 7,000 megawatts installed capacity and ensure associated infrastructure to fuel, transmit and distribute the capacity, ensure tariff includes all costs of transmission, generation and gas at new price, and distribution company costs required to operate, maintain and upgrade distribution networks and resolve all issues on gas pricing, tariffs and payment assurance.

In the short and medium term plan, the government will also conclude roadmap on gas development, complete the Kaduna-Abuja and Ajaokuta-Warri Rail Lines scheduled for 2016, commence the construction of the Lagos-Kano standard gauge Line and finalise negotiations for the Calabar-Lagos Rail Project, undertake the rehabilitation and construction of 31 major road projects scheduled for 2016 to restore degraded sections of the federal highways network and to establish connectivity over a distance of 2,193km (through public works projects, maintenance works, PPP and other interventions) and complete the rehabilitation of 4 Airports – Abuja, Kano, Lagos and Port Harcourt.

In the oil and gas sector, the forth thematic strategy, Professor Osinbajo said that the government would reform the sector by adopting and executing a Comprehensive National Oil and Gas Master-Plan (‘NOGM’), as the roadmap for the petroleum industry’s development, diversification, privatisation and governance.

He said: “We will adopt and execute a roadmap of gas development and flare elimination, set a deadline to be self-sufficient in refined petroleum products and become a net exporter, work with the national assembly on the passage of a revised Petroleum Industry Bill (‘PIB’) or bills to give effect to the NOGM and to resolve fiscal and governance issues of the Sector, eliminate gas flaring and conclude negotiations to deal with all funding gap issues in the Upstream Sector”.

“We Shall Remain Engaged”

Another strategy in the plan is focused on the need to ease the challenges faced by persons interested in establishing a business in Nigeria.

He said that the government planned to move 20 places up in the global Ease of Doing Business rankings, by implementing fast track measures for business approvals and acquisition of land titles.

Nigeria is currently ranked 169 out of 189 countries by the World Bank – 2015 Survey.

The Vice President told the gathering that the government would also fast-track visa application and issuance processes to further ease the system.

He further stated that the Buhari-led administration’s sixth strategy would focus on social investment and would implement social intervention programme and specific health and education projects included in 2016 Budget, introduce health sector interventions, including flagging off the revitalisation of one primary health centre per Ward.

The government said it targets a total of 10,000 health centres nationwide.

According to the Vice President, the Social Investment plans include the training and deployment of 500,000 unemployed graduates as volunteer teachers who would be paid on the job while they seek jobs in their chosen careers, implementation of ‘Homegrown School Feeding’ for primary school pupils across the country paid for by the government.

The government will also introduce a micro-credit scheme that will provide very soft loans to a million market women, artisans, traders and create innovation and technology hubs and parks on a large scale and provide skills acquisition and vocational training for over 300,000 non-graduate youths.

It will also provide a ‘Conditional Cash Transfer’ where one million poor and vulnerable Nigerians would receive 5,000 Naira monthly and a bursary awards for tertiary education students of science, technology, engineering and maths and STEM.

“Journey to Change”

He told the gathering that, as indicated by President Muhammadu Buhari in his 2016 Budget Presentation speech, the Administration remained committed to economic diversification through import substitution, and export promotion, in order to build a robust and resilient economy, as a lasting legacy for generations to come.

“This Strategic Implementation Plan therefore represents a significant step along this Journey to Change.

“It is important to underscore the point that we shall remain engaged with the Nigerian people, including stakeholders in the economy.

“We intend to start a quarterly meeting with members of the private sector and other economic stakeholders soon and thereby create a forum for engagement on an ongoing basis. Town-hall meetings at the presidential level would also be resumed across the country to explain progress and address the challenges with our people,” the Vice President said.

He, however, urged Nigerians to remain patient and indeed expectant while stating that the government acknowledged the pains and was concerned by them.

“We are working diligently to address the tough challenges inherited from the nation’s past.

“We are taking action and in due course they would produce satisfying outcomes, for they are borne out of a leadership that has no other agenda but the progress and greatness of Nigeria,” he added.

http://www.financialwatchngr.com/2016/04/08/fg-rolls-out-33-policy-actions-to-revamp-economy/

Mr Babatunde Fashola, the Minister of Power, Works, and Housing, stated that the Federal Government lost N7.7 billion from 2014 to 2016 due to strikes by government workers.

This is contained in a statement signed by the Minister on Thursday, made available to the News Agency of Nigeria (NAN) in Abuja.

According to the statement, the Federal Government, from April 28 to May 2014, lost N576 million due the strike by Benin Electricity Distribution Company staff union.

It stated that government on June 11, 2014 lost N66 million due NLC strike that resulted to sealing of Port Harcourt Electricity Distribution Company office over sack of 134 workers inherited from PHCN.

It stated that government also lost N144 million due to strike by NLC from Feb. 8 to 10, 2015 in Benin DISCO.

It added that from May 7 to 9, 2015, the strike by Nigerian Union of Electricity Employees (NUEE) led to government losing N65 million because of the strike.

It also listed other losses incurred by the Federal Government due to incessant strikes in the energy sector, including the strike by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on May 22, 2015 which cost the government N2 billion.

The statement urged the workers to unite with their employers and see themselves as part of the government.

It added that the employees could not have become union members if first they were not employed by the government.

It added that government could not improve the welfare of its workers if it continued to loose much of its revenues to strikes.(NAN)

http://www.financialwatchngr.com/2016/04/08/fg-loses-n7-7bn-from-2014-to-2016-due-to-workers-strikes-says-fashola/

International Oil Companies (IOCs) in Nigeria have agreed to provide about $200 million to help fund fuel imports amid a foreign-currency shortage, Petroleum Minister of State Emmanuel Kachikwu said.

“I have been able to convince the upstream oil companies to provide foreign exchange buffers over the next one year for those who’re bringing in products,” Kachikwu said in video posted on his Facebook page on Thursday.

Total SA and Exxon Mobil Corp. will provide dollars to their local retails units, Total Nigeria Plc and Mobil Oil Nigeria Plc, while Royal Dutch Shell Plc has been paired with local oil importer Conoil Plc and Eni SpA with Oando Plc, said Kachikwu.

Companies importing fuel in Nigeria have been hindered by lack of access to foreign exchange, following the plunge in the price of oil, the main foreign income earner in Africa’s largest oil exporter. This has resulted in widespread supply shortages across the country of about 180 million people, that state-owned Nigerian National Petroleum Corp., or NNPC, has been unable to address, Kachikwu said.

Nigeria imports about 70 percent of its refined-fuel needs, after decades of poor maintenance and mismanagement left four state-owned refineries working at a fraction of their 445,000 barrels per day capacity.

Royal Dutch Shell, Total, Eni, Chevron Corp. and Exxon Mobil Corp. run joint ventures with the NNPC that pump about 80 percent of Nigeria’s crude. Shell officials in Lagos declined to comment, while spokespeople at Chevron, Exxon, Total and Eni didn’t immediately respond to requests for comment.

Getting the upstream companies to intervene and matching them to downstream business lines for the provision of foreign exchange is an “ingenious move,” said Oyeyemi Oke, senior associate of energy and projects at Lagos-based law firm Templars.

“Although a short-term strategy, it would mitigate the current challenges faced by major marketers with regards to access to foreign exchange,” he said. “That said, a long-term solution to ensure availability of petroleum products should be put in place,” including ensuring existing refineries are operating at full capacity and new facilities are built, and liberalising access to foreign exchange, he said.

With the backing of President Muhammadu Buhari, the Central Bank has pegged the naira at 197 to 199 a dollar since last year, through capital controls and import restrictions.

The oil ministry has been in talks with the Central Bank to make a special foreign-currency allocation for fuel importers, Kachikwu said.

“I’ve had to box my way through the Central Bank of Nigeria to get a little bit more allocation because we provide the bulk of this foreign exchange; we should have a bit of it to help stabilise the fuel situation,” he said.

http://www.financialwatchngr.com/2016/04/08/iocs-give-200-million-fuel-imports/

Pressure is mounting on Nigeria’s Senate President, Bukola Saraki, to resign following the recent Panama Papers leak.

Saraki is already facing 13 charges at the Code of Conduct Tribunal (CCT) for falsely declaring his assets when he served as governor of the central Kwara state – charges he has obviously in court denied.

But as his trial resumed at the CCT on Tuesday, fresh allegations relating to the leader of Nigeria’s upper house emerged.

It was reported reported that the politician’s family held four undeclared offshore assets, including a multi-million dollar property in London.

But Saraki has denied any wrongdoing in a statement, explaining that he had declared all his assets as required by law, according to the BBC.

A prosecution witness, Micheal Wetkast, appeared before the Tribunal on Tuesday to testify against Mr. Saraki’s not guilty plea by providing evidence of alleged transaction by the Senate president with banks in Nigeria.

The witness said the proceeds of the said transactions were used to purchase properties, some of which were never declared by Saraki.

Reports has it that some senators have asked their leader to consider resigning even before the conclusion of his case to save the senate as an institution and that the Senate president’s resignation is imminent too.

The Nigerian senate president Bukola Saraki stands to lose his position as Senate President if found guilty by the Code of Conduct Tribunal which is a special court set aside to try asset declaration misdemeanors.

He would also be barred from holding any public office for up to 10 years and could be jailed.

http://www.financialwatchngr.com/2016/04/07/senate-president-bukola-saraki-under-pressure-to-resign/

President Muhammadu Buhari appears to be held captive by the fear of bold economic reforms and continues to be indifferent to sound economics, thus pushing Nigeria along a dark alley of power, foreign exchange and fuel shortages which threaten to throw the country into a recession.

Africa’s biggest economy has the continent’s largest gas reserves, yet suffers daily electricity blackouts, is the largest oil producer but is currently enmeshed in petrol shortages, has a huge market that should in theory attract investment flows but now deals with dollar shortages.

GDP growth has slowed considerably, the misery index is worsening and the non-performing loan situation of banks and creating a new pressure point in the economy as beleaguered firms fail to service their credit obligations.

In a note yesterday dated “one year after Nigeria’s elections”, Bank of America said, “approximately one year has passed since President Buhari was elected. Since then, the oil price has fallen by 32%, the equity market is down 26% and spreads on the 2023 Eurobond are 220bp higher. Policy uncertainty continues to weigh on the markets. The Naira peg is overshadowing some significant reforms that have been made.”

Analysts say behind all these problems is the fear of letting market forces allocate resources efficiently and a stubborn fixation on discredited government command and control policies.

“President Buhari must take responsibility for the results of his actions,” a senior investment banking source speaking anonymously, told BusinessDay.

“The government has to take some decisions promptly. Removal of FX controls has to be one and fuel subsidies have to go.”

Business sources say a recession (two consecutive quarters of negative growth) may be unavoidable for Nigeria due to the damage being done by ongoing energy and forex shortages and there is also the real likelihood of inflation ramping up to 12% this month say economists.

Signs of the slowdown are evident everywhere in the megacity of Lagos that drives most of Nigeria’s economic output.

International flights into the city are recording half filled seats; while imports that drive consumption were down by 9.2 percent last year, data from the National Bureau of Statistics (NBS), show.

The manufacturing sector contracted again in March, as the Purchasing Managers Index (PMI) printed at 45.9 percent, according to a March 31 report from the Central Bank of Nigeria (CBN). A reading below 50 indicates contraction.

Some 80,000 manufacturing jobs are set to disappear in Nigeria, mostly as a result of the President’s FX policies, according to the Lagos Chamber of Commerce and Industry (LCCI).

“Across manufacturing people are beginning to shut down. It is happening across the sector” said Babatunde Odunayo, a former CEO of Nigerian conglomerate Honeywell Group.

“Family owned businesses are shutting down,” Odunayo said.

President Buhari’s policy of pegging the naira at N199 per dollar has exacerbated inflation and unemployment as traders and retailers base prices on the black market rate hovering near N320/$1.

Nigeria’s inflation rose by 11.4 percent in February and its unemployment rate pushed into double digits at 10.4 percent in the fourth quarter of 2015.

Economic growth dropped to 2.8 percent last year, the slowest since 1999 and will decelerate further to 2.3 percent in 2016, the International Monetary Fund (IMF) said March 31.

By comparison, the World Bank forecasts that Kenya’s gross domestic product (GDP) would expand 5.9 percent in 2016 nearly double Nigeria’s expected growth rate.

Across the vast country, fuel queues are now the norm as the President refuses to deregulate prices, while blackouts have returned with a vengeance.

“Lower oil prices should provide an ideal backdrop to deal with the fuel subsidy regime. Subsidies benefit the rich (who consume more fuel) disproportionately,’’ said Razia Khan, Managing Director, and Chief Economist for Africa, at Standard Chartered Bank.

The dollar shortage is linked to the ongoing fuel shortage because most major oil marketers cannot source dollars to import products, leaving state owned NNPC as the only major importer.

This weekend, the President heads to China which has devalued its currency four times in the last one year but Buhari insists on holding the Naira at an artificial rate and fixing the pump price of petrol in Nigeria at N86.5 per litre, even as no one outside the main cities of Lagos and Abuja is able to get it to buy it at that price.

The latest PMS watch from the NBS shows that the average price Nigerians purchased PMS in January was N109.59 per litter.

Today, with the ongoing scarcity, the retail price has shot up astronomically, making nonsense of the government’s policy choices.

“It’s N1, 500 last price for five litres,” a black market dealer tells BusinessDay in Lagos.

The calculations come to N300 per litre or more than 240 percent above the Government official price.

Government interference in the upstream oil sector through price fixing for gas and NNPCs ineffectiveness and inability to finance its gas JV stakes has made the country with Africa’s largest gas reserves of about 187 trillion scf, unable to generate more than 5,000 Mw leading to daily blackouts.

Actual power generation for some time last week hit a low zero megawatts for the entire country of 180 million people.

Investors have fled Nigeria as a result of the confusion and flawed policy choices.

JPMorgan Chase and Barclays have taken Nigeria off their emerging market bond indices; while the country’s benchmark stock index (NSEASI) has returned negative 11.04 percent ytd with N1.094 trillion in market capitalisation wiped off.

http://www.financialwatchngr.com/2016/04/07/power-fx-fuel-shortages-cripple-nigeria-as-buharimonics-continues-to-fumble/

Airline operators in Nigeria has started feeling the negative impact of the current foreign exchange (FX) policy of the Federal Government as they have an estimated build-up of $575 million held in the country, which they are unable to repatriate.

Experts say this development may result in fewer investments and loss of jobs in the country’s aviation sector, as many airlines may be faced with the option of laying-off staff.

The National Union of Air Transport Employees (NUATE) said last month, that about 2,000 Nigerian aviation workers may be sacked by foreign airlines.

This is because airlines are unable to transfer their earnings to their respective home countries to meet operational costs, in accordance with international aviation industry rules.

Olayinka Abioye, acting General Secretary of NUATE, called on the Federal Government to intervene in the situation and prevent the anticipated job losses in the sector.

In addition to this, many airlines operating in Nigeria may be tempted to cut corners in their maintenance schedules as scarcity of Forex makes it harder to buy and stock consumables for aircraft in reasonable quantities, some aviation experts say.

This is in view of the International Air Transport Association (IATA) rule that monies that are not repatriated within a period of two months should be considered as blocked.

checks reveal that it was this situation that informed the British Airways (BA) downgrade of its flight operations to Nigeria from B747 – 400 with capacity to carry 406 passengers to the B777-200ER which only carries 217 passengers.

“Airline operators are required to change their tyres on a weekly basis, pay for wear and tear on a monthly basis and fix old engines when the need arises, and this is often done outside the country and requires dollars to foot the bills,” Nogie Meggison, chairman, Airline Operators of Nigeria said.

Meggison said that these routine activities which are mandatory are becoming very difficult for the airlines, as the FX is not made available.

Some airline operators told our correspondent that the high exchange rate is also taking a toll on domestic airlines operation because major checks are carried out overseas and payments for such services made in foreign currency, whereas they earn their revenue in naira.

The slide in the value of the naira since last year, prompted airlines to vote more funds from their meagre earnings on maintenance.

Also, in order not to jolt the domestic market, the operators were said to be reluctant to increase fares, fearing it could further shrink the number of air travellers, as purchasing power shrinks, due to the economic crunch.

A recent report revealed that most Nigerians who hitherto travelled by air, now resort to other means of transportation.

Findings show that the huge cost of carrying out mandatory C and D checks has become a very big burden for the airlines, given that when an airline is able to carry out these checks and scales through, “it means it has come to stay.”

A and B checks, which are lighter level checks, are usually done in Nigeria and there are the daily line checks, which airlines do after daily service of the aircraft.

C-check maintenance of a Boeing 737, which cost between $500, 000 and $700,000 prior to the foreign exchange volatility has tripled because of the sliding value of the naira.

However, Benedict Adeyileka, director of Airworthiness Standards, of the Nigerian Civil Aviation Authority (NCAA) has said that there are structures put in place to monitor the airlines and that the structures are so foolproof and transparent that they cannot be compromised by the operators.

Adeyileka said NCAA officials carry out ramp inspection of aircraft operations; they check and review aircraft maintenance status, cockpit and cabin crew and overall airline service.

“We drive through the ramp to review the operations of airlines, so it is difficult to cut corners; in fact, this will be dangerous for them. When we carry out reviews, at the end of the review, if you are found to have compromised the given standard, you are fined or your license can even be withdrawn, depending on the gravity of what you have done,” Adeyileka said.

Aviation experts say the majority of aviation-friendly countries have low interest rates; stable and easily convertible currencies, and no draconian policies that adversely affect airline operations.

“Foreign exchange for our operations is sourced through the Central Bank, via our bankers. Airlines have to bid, same as every other industry, for available funds,” Obi Mbanuzuo, Dana Air’s Accountable Manager, said.

On the home front, Jean-Raoul Tauzin, general manager, Air France KLM Nigeria & Ghana explained that Air France has naira in Nigeria which they routinely transfer to Europe and when there are fewer available dollars, it becomes a problem.

http://www.financialwatchngr.com/2016/04/07/forex-shortage-hits-airlines-575m-stuck-nigeria/

President Buhari’s government hopes to cut down air travel expenditure by 20 percent, amounting to N13.88 billion annually, through the Efficiency Unit initiated run by the Federal Ministry of Finance, especially if the provisions of the new circular issued by the Office of the Secretary to the Government (OSGF) are fully implemented.

The finance ministry which announced this in a statement on Wednesday, said such large savings from travel, which should ordinarily not be a major expense item for the government, will become available for investment in capital projects, such as roads, power, railways and public health facilities.

Kemi Adeosun, minister of finance, established the Efficiency Unit across MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies.

But the unit is now collaborating very closely with the Office of the Secretary to the Government of the Federation (OSGF) and the Office of the Head of the Civil Service of the Federation (OHCSF), to review the provisions of some extant government Circulars on Overhead Expenses one of which is on Travels.

“It is estimated that travel expenditure will drop by about 20% if the provisions of the new circular issued by the OSGF are fully implemented. A 20% reduction in air travel expenditure, using the figure of N69.417 billion incurred on travels in 2014 will result in a cost-cutting of N13.88 billion,” the ministry stated.

Other overhead expenditure items reviewed by the Efficiency Unit are those relating to refreshments and meals, honorarium and sitting allowance, as well as advertising and publicity.

Measures that will standardise spending on these items, cut costs and promote transparency on these items have been recommended to the OSGF and the Office of the Head of the Civil Service of the Federation, from which further cost-cutting on Overhead Expenditure is to be achieved.

Meanwhile, the Efficiency Unit expects the implementation of the price discounts secured from airlines to start in May 2016 when the agreements would have been signed with the airlines and MDA staff would have been trained and equipped for effective administration of the new process.

The savings are expected to be even larger when discounts secured from airlines are added. Already, 11 airlines have offered discounts on local and international routes for travel by MDAs while negotiations are on-going with others.

According to the finance ministry, the discounts received so far vary across routes and airlines and range from seen percent to 50 percent.

The Efficiency Unit, in its negotiation for discounts with local and international airlines also recommended other measures for reducing the government’s large expenditure on travels to the OSGF.

These include the need to restrict Business Class travel to Ministers, Permanent Secretaries, Chairmen of Federal Government Committees, as well as Chairmen and Chief Executives of Parastatals and Agencies. In the past, some government officials who should have been on Business Class usually travelled First Class, while many others travelled Business Class instead of Economy.

http://www.financialwatchngr.com/2016/04/07/finance-ministry-reduce-mdas-air-travel-costs-n13-88bn-efficient-spending/

The Federal Government has voted N14.69 billion for group life for its Ministries, Departments and Agencies (MDAs) in the 2016 Appropriation Bill passed by the National Assembly on March 23, 2016.

The insurance industry on its part would receive N14.69 billion earmarked for Group life for Ministries, Departments and Agencies (MDAs) of the Federal Government, including Department of State Security Service (DSS), Insurance of Sensitive Assets and Corpers.

The N14.69 billion for group life Insurance policy was part of the total of N154.3 billion voted for pension payments of Federal Government retirees, including monthly pensions and arrears of gratuities. Out of the N154.3 billion, the pension industry would receive N139.73 billion on pension payments, including monthly pensions, arrears and gratuities.

A breakdown of the budget showed that the military alone would receive N59.8 billion for payment of pensions and gratuities. It also showed that N7.41 billion was earmarked for Police Pension, while Customs, Immigration and Prisons Pension got N8.42 billion.

Allocation to Department of State Security Service including arrears, got (N7.64 billion), Nigeria Intelligence Agency Pensions and dependants’ benefits received (N3.7 billion). Meanwhile, N26.75 billion was budgeted for Parastatals Pension and Railway Pensions, while pre-1996 Nigeria Railway Corporation Pension got N2.25 billion. The budget showed that N3.52 billion was earmarked for expected retirees in 2016, while N4.3 billion was earmarked for death benefits and N14.34 billion for Universities’ Pensions, including Arrears.

Office of the Head of the Civil Service (Civilian Pension), received N28.39 billion for Pensions and N2.3 billion for Gratuities, while benefits of Retired Heads of the Civil Service of the Federation and Federal Permanent Secretaries stand at N2.59 billion.

Under the Service-Wide votes, N3 billion was earmarked for payment of Arrears of PAYG Pension DPR, N27.4 billion for payment of Arrears of 33 per cent increase in Pension Rates and N500 million for payment of outstanding Death Benefit to Civil.

http://www.financialwatchngr.com/2016/04/05/n14-69bn-allocated-for-group-life-in-2016-budget/

The Federal Government has given automatic employment to 105 candidates and relatives of the botched 2014 Nigeria Immigration Service (NIS) recruitment as compensation for those that died and sustained injuries during the exercise.

This is contained in a statement signed by‎ Mr Bassey Akpanyung, Permanent Secretary, Ministry of Interior and made available to newsmen on Monday in Abuja.

The statement said that after due verification, employment was given to‎ three family members of each deceased applicant from the aborted exercise, of which fifteen families were identified, and a total of 45 family members selected.

It said that 60 others who were injured in th‎e exercise were also given employment after verification by relevant government agencies.

“After verification, 15 families were identified, and a total of 45 family members selected from the deceased families.

“Similarly, approval was given for those who were injured in the same exercise to be employed.

“After due verification by relevant agencies of government, 60 of those affected were considered for appointment‎,” it said.

The statement said that the‎ two categories of beneficiaries are now undergoing training at various camps of the NIS in compliance with the presidential directive.

It said that the recruitment conducted by the Special Presidential Committee constituted in the wake of the aborted exercise of March 2014 was being looked into.

The Ministry advised all those affected in the exercise to remain calm and observe decorum while the Ministry resolves the matter (NAN)

http://www.financialwatchngr.com/2016/04/05/fg-gives-automatic-employment-to-105-candidates/

Speculative investors are moving to reduce their bet on Nigerian equities, following renewed pressure on crude oil prices which reached new lows Monday.

Declining crude oil prices, volatile FX, companies’ unimpressive earnings, as well as the Central Bank of Nigeria (CBN) tightening measures, have forced stock investors into exploring new investment havens.

“Notwithstanding the possibility of further bargain hunting across banks amidst depressed valuations, we think the renewed pressure on oil prices (Brent crude at $38/bbl – one month low) could soften market sentiment in the sessions ahead,” said analysts at Lagos based Vetiva Capital.

Oil held around its lowest at $38.81 a barrel in a month on Monday, as investors ditched some of their bullish bets on another price rise and the chance that top exporters would agree to rein in overproduction appeared to fade.

The stock market of Africa’s biggest economy started this week on a negative foot, an indication that investors are repositioned for a move towards lower oil prices which impacts prices of Custom Street stocks.

Nigerian stocks recorded their biggest quarterly decline in 15 months to Thursday, falling 11.6 percent in the three months to March 31, after a currency rout triggered by the plunge in oil prices hurt sentiment.

Oil prices have fallen by more than 65 percent since mid-2014, when booming US shale oil output and supply from within and outside OPEC created one of the largest global surpluses of crude in modern times. Equity investor sentiment at the Nigerian bourse has been largely negative of recent, despite an influx of earnings releases (over 40 companies performance score cards released) into the market.

The NSE benchmark performance indicator was down by 1.5 percent last week, to 25,507.1 points, putting YtD loss at -10.9 percent and the month of March returns at 3 percent.

The month of March recorded the first positive month-on-month close in 2016, driven by bargain hunting, as investors moved to position for attractive dividend at the peak of Full Year 2015 earnings releases.

“While investors ‘optimism is fast diminishing, and the domestic economy projected to experience slow growth, the prospect of a sharp recovery in the market remains dim; even as investors have shifted positions in anticipation of other market surprises,” said analysts at another Lagos-based investment house, Dunn Loren Merrifield.

Trading began this year at the Nigerian Stock Exchange with equities market capitalisation at N9.850trillion and NSE All Share Index (ASI) at 28,642.25 points but it closed the first quarter at N8.704trillion and 25,306.22 points respectively–signifying a loss of about N1.2trillion in the first-quarter (Q1) to March 31 2016.

“We expect profit taking on earlier gains to continue this week, as the FY-15 earnings season draws to a close. Though we may see moderate bargain hunting, as speculators exit positions post closure of registers. “This should leave the market in search of new triggers, which will likely shift attention to the strength of domestic macro fundamentals,” research analysts at United Capital said in their newest investment views.

Meristem Securities analysts said that, “declared corporate actions were insufficient to cause significant rallies on the equities of some of the companies that released results, adding that they envisage that the sell-down witnessed last week will persist this week, especially on counters with their closure dates elapsing this week.

“It is not very strange to see a wave of profit-taking and some unwinding of long positions, and some people even saying they could reposition for a move towards lower prices. That is part of a normal cycle that I think can continue this week. “We might see $36 or $37… Prices are coming down because of speculation that Saudi Arabia will not join (the freeze deal) and that is probably what we will see over the next three weeks – more speculation and more verbal intervention,” said ABN Amro’s chief energy economist, Hans van Cleef.

Fears of Nigeria’s economic slowdown, increased volatility in FX market, falling oil prices and the current equity market turbulence have all contributed to the slow start to the year for Initial Public Offerings (IPOs).

Nigeria’s IPOs market which would have helped to entice liquidity into the stock market dried-up in year-to-date, as many prospected companies showed there are more alternative funding avenues than Customs Street capital. “Most of the negative news is in the price, and for oil prices to weaken materially, something big would have to happen,” Gain Capital analyst Fawad Razaqzada said.

http://www.financialwatchngr.com/2016/04/05/stock-market-faces-uncertainty-as-oil-price-decline/

Some operators of Nigeria’s downstream oil industry have blamed the Federal Government’s fixation on the price at which refined products are delivered to motorists for the lingering fuel shortage that has virtually grounded the economy and brought pain and misery to Nigerians.

According to them, problem began after the government tacitly excluded any provision for fuel subsidy in 2016 without deregulating the sector.

Instead, the government went ahead in January 2016 to alter the PPPRA template for determining petrol price by eliminating the importer’s margin of N10 per litre and cutting the terminal charge of N2 by 50 kobo by litre.

It was gathered that once government did this, many of the private importers who were already facing acute shortage of foreign exchange, completely abandoned the business of importing petrol.

According to one senior industry chief, “today’s scarcity can be traced to the decision taken by government that there will be no subsidy in 2016. There would not have been any problem with this if the price were deregulated. However, the government insisted on maintaining the regulation of the sector and at the same time, taking away the margins, so some of the importers simply walked away.”

It was to rescue the crisis that this created that forced NNPC to take over the task of importing 100 percent of the petrol requirement for Nigeria and because this was done without any proper planning, orders were not placed on time and in sufficient volume to meet the entire domestic demand. More importantly, many of the refineries abroad were re-tooling ahead of the summer busy period, producing reduced volumes of PMS, thereby resulting in a significant decline in availability, especially for unplanned requests like those from Nigeria.

Stunned by its policy failure, the Federal Government has now made a volte-face and admitted that subsidy will be paid, while also adjusting the pricing template by restoring a margin of N2 per litre to the importers and also increasing the terminal or storage charges by a third to the old level of N2 per litre.

The government has also begun discussion with the IOCs to sell foreign exchange directly to importers without crude oil producing affiliates to improve their access to foreign exchange.

Some importers like Mobil Oil and Total Oil were already enjoying this relationship with their IOC affiliates.

Under the new dispensation, the NNPC will by itself import 60 percent, while the private companies will bring in the balance of 40 percent going forward.

About $16 million is required daily to fund Nigeria’s petrol requirement.

The allocation documents were sent out by NNPC to the oil companies in the last one week and even if the firms were to issue purchase orders this week, the earliest that the bulk of the consignments will arrive Nigeria and spread out to areas outside Lagos and Abuja will be the end of the month or May, which Ibe Kachikwu, Minister of Petroleum had mentioned last week, when he got into trouble.

“The minister was being honest when he said May,” said one industry chief. “He probably did not reckon that he would be quoted, and given the pain people were already feeling, he was bound to get into trouble once it was published.”

Our reporter learnt that the success of this arrangement will be contingent upon the IOCs making enough foreign exchange available to the importers and also upon NNPC playing its role of supplying the 60 percent of the daily requirement of 40 million litres.

Because there is no guarantee this will happen, operators cannot bet that the days of fuel shortage in Nigeria can be forgotten for as long as government fails to deregulate the sector to promote the flow of the required investment into a sector nearly abandoned.

Meanwhile, fuel queues across the nation continue to grow longer by the day, while fewer and fewer stations are getting fuel to dispense and the black market is thriving, while hapless Nigerian households and businesses are being cut off from this lifeblood.

There are three categories of businesses selling fuel across the country. The first two are fuel stations owned by the major marketers and independent operators respectively. Then there is the black market operating from the roadside.

As at yesterday in Abuja only a few stations were selling petrol while desperate motorists resorted to buying from the black market at N150 per litre.

In Benin, the black market price for petrol rose to between N230 and N300 per litre. The same was the case in Jos and Abeokuta.

In Lagos, motorists endured long queues at petrol stations, some of which had no petrol to dispense while independent marketers sold at N180 and the black market operators sold at N220.

http://www.financialwatchngr.com/2016/04/05/cause-fuel-scarcity-blamed-fg-rigidity-pricing/

In what could be seen as a fallout of the trial of Senate President, Bukola Saraki, and in a bid to deepen the ongoing anti-graft crusade, the Code of Conduct Bureau (CCB) and the Estate Surveyors and Valuers Registration Board are collaborating to implement the Asset Declaration of public office holders and Federal Civil servants across the country.

Under the new arrangement, all political appointees and workers are to obtain and attach property certificates of all assets declared in the Asset Declaration forms, to be endorsed by certified surveyors and valuers.

William Odudu, chairman, Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), confided in our correspondent that the policy would be unveiled after the Board’s approval this month (April).

According to Odudu, registered surveyors and valuers are to ascertain the veracity of the property declared on assumption of office by the declarant, which will be subjected to verification.

“We are going to have a policy put in place as a regulatory body, which is the Estate Surveyors and Valuers Registration Board. We will now make it compulsory for a property that is going to be registered to carry a valuation certificate that will be signed by a registered estate Surveyor and valuer. So you won’t be declaring false values. For you to go and register your property, you must carry the correct value.

“The law in paragraph 4 of the Asset Declaration form stipulates that they must indicate the property, the location and the market value. Who determines the market value is the surveyor not the declarant. So, we are now talking and discussing with the Code of Conduct Bureau that any asset that is declared, must carry a valuation certificate by a registered estate surveyor and valuer and that is to be done by the Bureau not the individual.

“When you submit your form, there will be clear indication that the Bureau has power to verify, determine and value the asset. Our registered surveyors are going to be involved in that exercise. We are going to work in conjunction with the Code of Conduct Bureau, so that anybody declaring, whether in the local level, state level, the national level, a surveyor will go and verify, document and value the assets,” Odudu explained.

Odudu further stated that the Board does not require fresh approval of the National Assembly to implement the policy and observed that the Act establishing the institute, empowers it to discharge the functions.

He assured that the initiative when operational, would reduce the spate of false declarations made by many highly-placed Nigerians, particularly politicians, who through their legal practitioners, indulge in falsification of asset with the intention of defrauding the government evading taxes.

To avoid compromise, the ESVARBON chairman underscored the need for the Bureau to take sole responsibility for financing the verification exercise, stressing that “if you say individuals should pay, some may resist it. We are going to make it a nominal sum, to make sure there’s no complaint and we want to encourage the Code of Conduct Bureau to pay on behalf of those that are declaring.

“So government will make funds available for that purpose and we are going to make it very simple and affordable to all those who are going to declare because if you allow the person declaring to pay, he might want to influence the surveyor. So you don’t even need to know the surveyor, once you have declared your form is with the Code of Conduct, the Code of Conduct will have a list of surveyors.”

He said to ensure compliance, the board would set up an enforcement committee, adding that anyone who flouts the rule would be recommended for prosecution before the Code of Conduct Tribunal (CCT). “We are going to have a Committee set up to enforce the use of this new policy we are putting in place. So if you falter, we have an investigative panel of the Board that will look into your issue and if you are found culpable, your matter will be referred to the tribunal and that tribunal can remove your name from the register of the institute,” Odudu said.

http://www.financialwatchngr.com/2016/04/05/under-declaration-of-assets-policy-underway-to-curb-further-occurence/

Africans migrate more from one Africa country to another, contrary to belief that almost every African migrates beyond the continent, a report by United Nations Economic Commission for Africa (UNECA) has revealed

The revelation was made on Saturday by Mrs Takyiwaa Manuh, Director, Social Development Policy Division, UNECA, who gave highlight of the report entitled “Challenges of International Migration in Africa’’ at ongoing African Development Week in Addis Ababa.

Manuh said that the situation contained in the report was contrary to popular belief that Africans migrated more to other continents.

“Media coverage and research on irregular migration and high death toll amongst those crossing the Mediterranean have falsely reinforced the belief that Africans migration is essentially directed towards Europe.

“Migration streams within Africa are much larger than those out of Africa. About 31 million of the continent’s population has migrated internationally.

“ This is little more than 3 per cent of the continent’s population. More than half of those migrating internationally do so within Africa, with only about 28 per cent of migrants from Africa going to Europe.

“Of the total migrant stock in Europe, less than 12 percent are from Africa,” she said.

Manuh said UNECA research also showed that remittance inflows to Africa quadrupled between 1990 and 2010, reaching nearly 49 billion dollars in 2010, equivalent to an average of 2.6 per cent of Africa’s Gross Domestic Product (GDP).

“The proportion of remittances invested in food, health and education ranged from 30 per cent in Kenya and 37 per cent in Nigeria to 47 per cent in Burkina Faso and 67 per cent in Senegal.

“Thus, international migration has tremendous potential to improve development and welfare in origin countries,’’ she said.

Manuh urged countries to embrace regional integration and border management to facilitate migration and visa-free travel for Africans in Africa.

She further appealed for consultative processes in the designing policies to secure the benefits of migration at global and regional levels.

According to her, designing policies should involve countries of destination and origin. (NAN)

http://www.financialwatchngr.com/2016/04/02/report-says-africans-migrate-within-africa/

The Republic of South Korea said it would establish a Cultural Creation Convergence Belt (CCCB) in Nigeria to enrich the development of Cultural contents industry between Nigeria and Korea.

Mr Noh Kyu-duk, the South Korean Ambassador to Nigeria, made this known during a media chat with newsmen on Wednesday in Abuja.

Kyu-duk said the CCCB would comprise six institutions.

“They will include: Creative Centre for Convergence Culture (cultural contents planning), Creative Economy Leader Venture (commercialisation) and K-Culture Valley.

“Others include: K-Experience and K-POP, Arena (realisation and consumption) and Cultural Creation Academy (Human Resource Development).

“The CCCB is expected to create 53,000 jobs over the next five years,’’ he said.

According to him, Korea’s total amount of cultural export has surpassed “$5.7 billion in 2015’’ and will continue to be a new economic growth engine.

On the economic cooperation between Nigeria and Korea, Kyu-duk said that he was doing his best to foster economic relations between the two countries.

“The annual trade volumes between Nigeria and Korea had exceeded $4.4 billion in 2014, making Nigeria Korea’s 52 largest export market and the 26th biggest import market’’.

The ambassador noted that about 8,000 Nigerians were being employed by more than ten major Korean companies in the key business sector such as oil and gas, electronics and automobiles.

“The President Buhari Government has launched various reform policies such as industrial diversification, job creation, expansion of infrastructure and others.

“The Korean Government is interested in partnering with Nigerian government in those areas of the reform policies.

“I am certain that Korean companies will contribute to Nigeria’s economic growth by increasing trade volume and their investment in the country,’’ he said.

On the Korea-Nigeria Avoidance of Double Taxation Agreement, the Ambassador said that the issue was still pending.

He, however, said that if successful, the agreement would motivate Korean companies to increase their investment and boost their business activities in Nigeria by reducing their tax burden.

According to him, the executive bill for the domestication of the agreement had been sent to the Nigerian National Assembly.

“My embassy is working very closely with the National Assembly; and I must also thank the leadership of the National Assembly for paying great attention to this agreement.

“However, it is my sincere hope that the bill will pass through the house within the next few weeks,’’ he said.

On Korean aid to Nigeria, the ambassador said that the Korean international Cooperation Agency (KOICA) had provided Nigeria with development aid since 1991 mostly in areas of education, vocational training and e-government.

He added that KOICA was building junior and senior secondary model schools in Abuja worth $150 million and also building capacity of e-government worth $8.56 million.

“We have established a vocational training Centre in Lokoja, the Kogi capital, and a rice processing centre in Bida, Niger, among many others.

“In addition, more than 1,500 Nigerians have been invited to Korea to attend various kinds of training for human resource development,’’ he said. (NAN)

http://www.financialwatchngr.com/2016/03/31/south-korea-establish-cultural-creation-convergence-belt-nigeria/

The South Sudanese arm of the Africa’s telecom giant, MTN South Sudan, is cutting dozens of jobs and cancelling expansion projects such as the construction of new cellular sites due to an economic crisis.

The firm, a unit of South Africa’s MTN, is the latest among foreign firms to reduce operations after a currency devaluation, spiraling inflation and lower revenue from oil on a drop in production and weak global crude prices.

Corporate services head Khumbulani Dhlomo said the company had reduced foreign staff numbers by 75 percent and would cut 55 percent of local staff, without giving exact figures.

Dhlomo said subscriber numbers had dropped by 10 percent since October last year, and the company was expecting more losses this year.

MTN South Sudan had scrapped plans to put up 40 new cellular transmission towers and 100 third generation (3G) transmission sites, he said.

“If the economy continues it’s downward trend, MTN may be forced to close,” Dhlomo said.

The world’s newest nation plunged into civil war in late 2013 when a political crisis provoked fighting between forces loyal to President Salva Kiir and rebels allied with his former deputy, Riek Machar.

http://www.financialwatchngr.com/2016/03/31/mtn-lays-off-staff-economic-crisis-bites-ssudan/

Nigeria’s leading online retailer, Jumia has initiated a conversation with five principal marketers in Nigeria on the prospects and advancement of affiliate marketing in Nigeria.

Fatoumata Ba, Managing Director, Jumia Nigeria, is optimistic that this partnership will boost product knowledge while providing endless means for affiliates to earn more money.

“Our vision for the affiliate programme has been to create a seamless avenue for all bloggers or website owners to earn substantial income conveniently from our collaboration while increasing our brand awareness to their visitors and followers”, said Fatoumata Ba.

A marketing tool used to reward members for every customer they usher into the partner’s website; affiliate marketing involves promoting products on platforms and tracking sales to earn a certain percentage as commission on every successful order made within a specified number of days after a click on affiliate link.

This is specifically for those who own a website, blog or just any useful social media account like facebook, twitter or Goggle+, to make money online effortlessly by advertising products that appeal to their target audience on their affiliate account using banners from the partner’s advertising media.

The online giant expressed confidence over the relationship it says has recorded huge success for both parties.

“It is a collaboration we are most proud of and will work towards further strengthening. Indeed, it now accounts for a very high share of Jumia’s total traffic on its website,” Jumia Boss added.

There are ongoing deliberations to increase Jumia’s brand identity and visibility on its affiliate partners’ websites as well as how partners have benefitted from Jumia’s Partnership.

Jumia, Nigeria’s largest online retail store had earlier predicted boom sales in 2016 amidst declining consumer spend occasioned by the harsh economic challenge in the country.

“We have already started the year 2016 with a big boom with the biggest Fashion Sale of the Year and have many more surprises coming your way!” Fatoumata Ba, said in January.

http://www.financialwatchngr.com/2016/03/31/jumia-begins-dialogue--prospects/

Hard times await any politically exposed persons (PEPs) and those working in the private sector who indulge in any form of economic and financial crimes, as the House of Representatives is set to commence debate on a new legislation that seeks to establish specialised courts to try all economic and financial crimes.

The amended Bill to the EFCC Act, 2004 sponsored by Bassey Ewa, is already gazetted for second reading on the floor of the House of Representatives and also seeks to “provide for quick recovery procedures for stolen assets; implement active pursuit of cases, build capacity and improve trust and cooperation with foreign counterparts, as well as ensure adequate funding of the Commission.”

As specified in the bill, corruption offences include: “bribery of national public officials, bribery of foreign public officials and officials of public international organisations; embezzlement, misappropriation or other diversion of property by a public official; trading in influence; abuse of functions; illicit enrichment; bribery in the private sector; embezzlement of property in the private sector and laundering of proceeds of crime.”

In discharging its functions, the Economic and Financial Crimes Court, as encapsulated in the bill, is also expected to handle cases of bribery of by legal persons and bribery in the private sector.

With the proposed amendment to section 18 of the EFCC principal Act, “all convicted persons shall serve an imprisonment of a term not less than 20 years and have their ill-gotten property, accounts, or investment confiscated by the government” though there is provision for plea bargaining for any accused persons who accepts to refund the total amount standing in his/her name, who shall be convicted for not more than two years.

Meanwhile, any company found guilty of offenses under the Act, stand to be blacklisted for 50 years from doing business in Nigeria and have its assets and finances frozen.

Section 3(4) provides that any petitions against the EFCC chairman or any of its members of staff, from the public or private sector, shall be submitted to the National Assembly, and if upon investigation found culpable, a simple majority vote of members of the National Assembly is required in considering the fate of the chairman or any affected member.

While section 3(5) empowers the National Assembly to forward such recommendations to the Presidency for implementation, “if the President objects to the removal of the chairman or any affected members of the commission, he shall communicate in writing to the National Assembly, advancing reasons against the removal of the chairman or an affected member, within 30 days.

“However, a two-thirds majority vote of the National Assembly shall be required to veto the decision of the President for the affected member to be removed.”

The proposed bill also seeks for the amendment of section 12 of the EFCC principal Act, by providing for the appointment of a retired Assistant Inspector-General of Police, or its equivalent in the Nigerian Army, that will head the Financial Investigative Unit.

Meanwhile the Financial Investigative Unit (FIU) is empowered to “have access to all accounts and investigate any account” without complying with the Evidence Act, “provided that the investigation emanates from the Financial Investigative Unit.”

The FIU can also access unconditionally, the bank accounts of individuals, public or politically exposed persons working or (who) had worked in any strategic position exposed to public funds; monitor cash transactions of all accounts in Nigeria, to determine inflow and outflow daily.”

In a related development, Edward Pwajok, also seeks amendment of the principal Act of the Money laundering (Prohibition) Act, by defining ‘anonymous person’.

According to the proposed amendment in section 25, “Anonymous account means an account that is opened in the name of a different person but used by the beneficiary of the transaction, in the account or person proven to be the real owner of the account.”

It also seeks to define the numbered account as “an account that does not have an owner but numbers or other symbols are used to identify it.”

It also seeks to amend Section 11(2b) of the principal Act by increasing the existing penalty from N10 million to “not less than N50 million”.

To ensure effective funding of the FIU by way of amending section 35 of the EFCC Principal Act, the bill provides that “ 0.1% of all contracts awarded by Federal Government shall be credited to the Commission to facilitate prosecutions, practitioner networks (global or regional Asset recovery), enforcement efforts to combat economic and financial crimes, and asset recovery.

“0.1% of the internally generated revenue shall be credited to the fund of the Commission. 0.1% of the sums of money recovered from the looted funds,” section 8 of the amendment bill stated.

http://www.financialwatchngr.com/2016/03/29/no-hiding-place-looters-reps-moves/

With the 2016 budget now passed by the National Assembly and a N3trillion war chest, the government of President Muhammadu Buhari says it is set to take on the struggling Nigerian economy and is promising it will win.

Analysts said last night that the package and the stimulus budget would aid the growth in GDP that has been experiencing slow growth.

Bola Agbola, executive director, Cashcraft Asset Management limited, said: “The resumption of spending by the Federal Government eleven clear months after inauguration of the government and three months into the new year, should reactivate the economy all things being equal. The fundamental issues of sagging imports and fuel scarcity may dampen the impact of the reflationary spending .

“The much awaited new foreign exchange policy should be released without further delay, as the existing huge gap between official and parallel market rates is not only fueling inflation but might be creating a cesspool of corrupt practices in the opaque foreign exchange allocation chain, which may not boost the image of the government.”

Johnson Chukwu, managing director, chief executive, Cowry Asset Management Limited, had last week told BusinessDay that, “The expansionary nature of the budget and the package will offset the negative effect of the contractionary monetary policies,”

According to Chukwu, “In a situation of slowing economy, the emphasis should rather be on stimulating the economy and addressing the structural impediments that are triggering the inflationary pressure. It must also be noted that without addressing the current challenges in the foreign exchange market, increases in interest rates will not lure investors, particularly foreign portfolio investors back to the Nigerian market.”

The president who is planning a number of town hall meetings to make his case directly with the Nigerian people, has come under attack for failing to halt the economic slide and for his insistence on applying outdated solutions to some of the country’s economic challenges.

Emboldened by the N3trn stashed away in the TSA purse, the government has already announced it will immediately reflate the economy with about N350bn in payment to contractors and many say while this will be helpful in oiling the economy, concerns will still continue about how to expand productivity in the economy, so as not to push up inflation.

The economy is still better defined with its debilitating foreign exchange shortage which is leading to declining factory activities and resultant job losses, with even the local manufacturing which the government hopes to promote being some of the worst hit.

A large foam maker had to turn down a single order for over 3,000 mattresses because the company cannot get the required raw materials and even local cable making firms which are having increased demand from builders and construction firms, are finding they cannot meet the demand because of their inability to access the required raw materials.

Nigeria’s lawmakers passed the budget after months of political wrangling, pushing through record federal spending even as low oil prices have brought the worst economic slowdown in 15 years.

The Federal Government plans to spend a record breaking N1.8 trillion on capital projects, N1.5 trillion to service debts and N2.65 trillion on recurrent expenditures excluding debt, Senate President Bukola Saraki said in parliament in the capital, Abuja, on Wednesday.

“The budget reflects efficient and equitable allocation of resources,” Saraki said. “For once, there was no bickering over the benchmark oil price, but rather we all devoted time and energy to ensure that we have a budget that is implementable.”

The spending plan factored in oil at $38 per barrel and projected output of 2.2 million barrels a day.

“This budget empowers us to invest in the infrastructure needed to unlock our non-oil economy and reduce our vulnerability to the oil price”, Nigeria’s finance minister, Kemi Adeosun, told the Financial Times.

The prolonged and sometimes dramatic process which the budget has undergone at the parliament and the lack of speed by the government, fuelled concerns that Buhari’s government is not responding quickly enough to the economic problems caused by the collapse in oil prices.

Now that the budget has been passed, financing the high spending — and dealing with a deficit of N3tn ($15bn) — will be a challenge according to analysts. Nigeria’s government is in talks with the World Bank and the African Development Bank over $3.5bn in loans, but it is not clear where the rest of the funds needed will come from.

Buhari’s proposed budget in December included cautious expectations for oil revenues “but the problem at the time was there was not a great deal of detail about where the rest of revenues were going to come from”, said Razia Khan, chief Africa economist for Standard Chartered.

“Where that revenue comes from and what measures are going to be driving it are the key questions,” Khan added.

Nigeria’s economy grew about 2.8 per cent last year, its slowest rate since 1999, as lower crude prices took their toll.

Nigeria has traditionally earned 70 per cent of its revenue from crude exports and has few other sources of foreign exchange earnings.

The Buhari administration argues that heavy state spending is needed to cut oil dependency in the long term, adding that such a move has been put off for too long.

Despite the government’s optimism, many in the investor community remain worried about the success of the govenrment’s plan.

Matthew Page, of the Council on Foreign Relations wrote a piece in the FT in which he said

Africa’s largest economy will continue to struggle to find its feet as sliding oil prices threaten to derail Buhari’s efforts to put Nigeria’s public finances back in order, fund planned infrastructure spending, and field much-needed social programmes.

According to him, “until global crude prices rebound or he undertakes more ambitious reforms, Mr Buhari almost certainly will need to borrow just to make ends meet.

“The good news for Mr Buhari is Federal Government debt is relatively low, as a percentage of GDP, which was estimated at $488bn in 2013. In 2005, Nigeria struck a deal with Paris Club lenders to write off over half of the country’s $30bn debt. Since then, however, Nigeria’s debt profile has steadily grown. As of the end of last year, Abuja owed domestic and international creditors roughly $55bn.

“The bad news facing Mr Buhari is that a disproportionate amount of government borrowing is in the form of high interest loans from domestic banks. Fiscal federalism means that federal government liabilities could balloon suddenly if Nigeria’s 36 states begin defaulting on their debts.”

Oluseun Onigbinde, co-founder of the Nigerian civil society organisation BudgIT, said the budget showed that there was still a long way to go.

The National Assembly, comprising the Senate and the House of Representatives, was allocated the equivalent of $600m — higher than Nigeria’s expenditure on its universities, said Mr Onigbinde.

Nigerian lawmakers may be the highest paid in the world, according to BudgIT, which has lobbied lawmakers to release the breakdown of how that money will be spent. It says their annual salary is the equivalent of $150,000 to $190,000, or about 50 times gross domestic product per capita.

http://www.financialwatchngr.com/2016/03/29/rays-of-hope-for-economy-as-fg-fights-back-with-n3trn-tsa-fund/

6. The entire believe system of watch tower is built around the year 1914: Tell this to an average JW and they will quickly discard it as a hearsay. But the truth is that the watch tower is founded on a foundation that is based on 1914. The founder Russel taught that the world as we know it will end in that year, and that Jesus's presence started in 1874. You may have known about this controversial date and the many inconsistencies surrounding it, a simple google search will help. It might interest you to know that how they arrived at this date has been proven wrong time after time, this is because 1914 is based on another pivotal year 607BC which watchtower believe to be the date of the fall of Jerusalem, a date every intellectual researcher discarded as false, in fact the most probable date for the fall of Jerusalem is 586/587BC, but since much of their believes and doctrines hover around that date such as the 1919 date watch tower taught is the year Jesus appointed them as the faithful and discrete slave, it becomes therefore impossible to shift grounds, if they do, they have to humble themselves and tell JWs that they are never appointed to any faithful and discrete slave, but of course pride will not let them humble themselves.

According to C. T. Russell's explanation, the date 1914 was itself dependent on another pivotal date, namely, 606 B.C.E., the year it was believed that Jerusalem was destroyed. This, however, was later changed to 607 B.C.E. Why? Here is how one Watchtower article explained the discrepancy:

At this point some will inquire why Charles T. Russell in 1877 used the date 606 B.C. for the fall of Jerusalem whereas The Watchtower of late years has been using 607 B.C. This is because, in the light of modern scholarship, two slight errors were discovered to have been made which cancel each other out and make for the same result, namely, 1914. Concerning the first error, Russell and others considered 1 B.C. to A.D. 1 as being two years whereas in fact this is only one year because, as has been said above, there is no “zero” year in the B.C.-A.D. system for counting years. “The Christian era began, not with no year, but with a 1st year.”—The Westminster Dictionary of the Bible, p. 102.—w52 5/1 p. 271 pars. 21-22 Determining the Year by Fact and Bible. (Bold mine)

As explained above, Russell had made a mistake in that he did not take into consideration the fact that there was no zero year between 1 B.C. and 1 A.D. (now commonly referred to as B.C.E and C.E.—Before Common Era; Common Era). If he had understood this from the beginning, he would have publicized the year 1913 rather than 1914, and we probably would not have heard anything further about it. When the mistake was discovered after his death, it became necessary to make an adjustment to his calculation. This error and its correction was finally acknowledged in 1944. For obvious reasons 1914 was untouchable! After all, did not the outbreak of the great war that same year vindicate Russell as a prophet from God, whereas nothing significant took place in 1913? (See footnote)

It's a delicate matter to correct a mistake without losing one's credibility. It could not simply be announced that upon further examination it was discovered that Russell was off by a year, and then go ahead and remove the one year from the far end in the way of correction. The adjustment needed to be justified and explained, which is called Russell's "second error." It was proposed that due to "inaccurate" and "not up to date on archaeological evidences," C. T. Russell used the wrong year as the starting point in calculating his 2,520 years. In other words, Pastor Russell made not one but two errors, and the two errors cancelled each other out, resulting in the wonderful truth as we know it today.

This is how The Watchtower in 1952 explained the necessary adjustment made to legitimize the correction to Russell's "slight second error":

The second error had to do with not beginning the count of the 2,520 years at the right point in view of historic facts and circumstances. Almost all early Bible chronology ties in with secular history at the year 539 B.C., in which year the fall of Babylon to Darius and Cyrus of the Medes and the Persians occurred. In late years several cuneiform tablets have been discovered pertaining to the fall of Babylon which peg both Biblical and secular historic dates. The one tablet known as the “Nabunaid Chronicle” gives the date for the fall of Babylon which specialists have ascertained as being October 12-13, 539 B.C., Julian Calendar, or October 6-7, 539 B.C., according to our present Gregorian Calendar. This tablet also says that Cyrus made his triumphant entry into Babylon 16 days after its fall to his army. Thus his accession year commenced in October, 539 B.C. However, in another cuneiform tablet called “Strassmaier, Cyrus No. 11” Cyrus’ first regnal year is mentioned and was determined to have begun March 17-18, 538 B.C., and to have concluded March 4-5, 537 B.C. It was in this first regnal year of Cyrus that he issued his decree to permit the Jews to return to Jerusalem to rebuild the temple. (Ezra 1:1) The decree may have been made in late 538 B.C. or before March 4-5, 537 B.C.—w52 5/1 p. 271 pars. 21-22 Determining the Year by Fact and Bible. (Bold mine)

Jehovah’s witnesses from 1877 up to and including the publishing of “The Truth Shall Make You Free” of 1943 considered 536 B.C. as the year for the return of the Jews to Palestine, basing their calculations for the fall of Babylon on secular histories that were inaccurate, not up to date on archaeological evidences. This meant that Jeremiah’s seventy years of desolation for Jerusalem ran back from 536 B.C. to 606 B.C., instead of more correctly as now known from 537 B.C. to 607 B.C. (2 Chron. 36:21; Jer. 25:12; Zec. 1:12) With the above Absolute date for the fall of Babylon, the date 607 B.C. is on solid ground for the fall of Jerusalem, when King Nebuchadnezzar of Babylon terminated the reigning Davidic dynasty by taking Jerusalem’s last ruler, King Zedekiah, captive. This leads to the important modern date of 1914, which marks the end of the “seven times” of 2,520 years of Gentile domination since the first fall of Jerusalem 607 B.C. (Dan. 4:9-16; Luke 21:24) This adjustment of one year for Jerusalem’s fall to 607 B.C. was acknowledged in the book “The Kingdom Is at Hand” of 1944, footnote of page 171, and also in The Watchtower of 1952, page 271.—w55 2/1 p. 94, Questions From Readers. (Bold mine)

How reliable is the claim that "the date 607 B.C. is on solid ground for the fall of Jerusalem," when it is based on two slight errors, which cancel each other out? Please reflect on Jesus' words when he said: "What I teach is not mine, but belongs to him that sent me." (John 7:16,17) Can you imagine Jesus making two errors in his teaching—which cancel each other out to make a truth—and yet still claim that he is taught by his Father? As is evident in the above case, and as we shall further see, a lie always takes longer to explain than a simple truth. Often, the person telling a lie will get confused in the process of explaining it, spawning yet other lies, in the believe that one lie will cover another, thereby canceling each other out. Prosecutors in a court of law seize on the inconsistencies to expose these errors, and thus in the end the person is found guilty, having been condemned out of his own mouth. (2 Sam. 1:16; Isaiah 3:12-15; Luke 19:22)

The 2,520 years, mentioned in the above article, was the number Russell had deciphered from the Bible as indicating the length of the "Gentile Times" ("appointed times of the nations," NWT) as spoken of by Jesus, which he identified with Daniel's appointed time, appointed times and a half. (Luke 21:24) He reasoned that the Gentile Times started in 606 B.C. (today's 607 B.C.E.), with the destruction of Jerusalem and the removal of the last Israelite king, who was said to sit on Jehovah's throne. With that information, he calculated that they would end 2,500 years in the future, in 1914, when God would again establish his kingdom, and have a king sit on his throne. (1 Chron. 29:23; Matt. 25:31) Permit me to refer to the book LET YOUR KINGDOM COME, published in 1981, to explains this:

We are helped to fix the calendar date for the start of the Gentile Times by consulting God’s Word. As we have already noted, Jehovah allowed the Babylonians to conquer his people, destroy Jerusalem and its temple, remove Zedekiah from “the throne of the kingship of Jehovah” and take the Jews into Babylonian exile. (1 Chronicles 28:5) Events that followed “in the seventh month” led the few Jews who had remained in the land to flee to Egypt, so that Judah then lay completely desolate. (2 Kings 25:1-26; Jeremiah 39:1-10; 41:1–43:7) Jehovah’s prophet Jeremiah had foretold that the desolation would last for 70 years. (Jeremiah 25:8-11) Then Jehovah would ‘call to account against the king of Babylon his error’ and ‘bring His people back to this place,’ their homeland.—Jeremiah 25:12; 29:10.

Daniel himself lived in Babylonian exile for many years. On the night that Babylon fell to the Medo-Persians, he was an eyewitness to the fulfillment of his own prophecy, and of other prophecies, against that city. (Daniel 5:17, 25-30; Isaiah 45:1, 2) Historians calculate that Babylon fell in early October of the year 539 B.C.E. Soon thereafter, Daniel discerned from Jeremiah’s prophecy that the 70-year captivity and desolation for Jerusalem was about ended. (Daniel 9:2) And he was right! In the first year of Cyrus the Persian, which most historians date from the spring of 538 B.C.E., Cyrus issued a decree permitting the Jews to return to their homeland to repopulate it and to rebuild Jehovah’s temple there. (2 Chronicles 36:20-23; Ezra 1:1-5) The inspired historical account tells us that the Jews responded readily to Cyrus’ decree, so that “when the seventh month arrived the sons of Israel were in their cities.” (Ezra 3:1) By our calendar that would be October, 537 B.C.E., which date therefore marks the completion of the foretold 70 years of desolation.

That historical information is important to us in determining the beginning of “the appointed times of the nations.” Since the 70 years of desolation for Judah and Jerusalem ended in 537 B.C.E., they began in 607 B.C.E. That would be the year when Zedekiah ceased to sit upon the “throne of the kingship of Jehovah” in Jerusalem. It therefore marks also the date for the beginning of the Gentile Times. Counting from October 607 B.C.E., the “seven times” of 2,520 years bring us down to early October 1914 C.E., when, as we have already seen, Jesus’ great prophecy on “the conclusion of the system of things” started to be fulfilled. Reliable information in God’s Word is the basis for this conclusion, which the Watchtower magazine has been championing now for more than 100 years.

Thankful, indeed, we can be that Jehovah preserved in his inspired Word an accurate picture of the needed details involving the Jews, the Babylonians and the Medo-Persians in the sixth century B.C.E. Otherwise it would be difficult to piece together the exact timing of events back there, for secular records of that period are certainly incomplete.—kc chap. 14 pp. 136-139 pars. 25-28 The King Reigns!

The above article explains how the momentous year of 1914 was arrived at, based on the pivotal year of 607 B.C.E. Does it merit our confidence? In fact, does it really matter how 1914 was calculated? Have events since then not confirmed it as being accurate? Let us allow the Society's own publications to establish the claim that "the date 607 B.C. is on solid ground for the fall of Jerusalem." It is vital that we do so because an entire system of worship has been built upon that declared "solid ground"; and unless our worship is solidly based on God's Word of truth, our worship is in vain. (Matt. 15:8,9; John 4:23,24; 17:17; Acts 20:30; 2 Tim. 4:3,4)

TO BE CONTINUED............

5. The watchtowers teaching on "dedication" deflects honor from Jehovah and bestows it on the watch towers governing body: Salvation according to the watct tower happens when somebody accept Jesus Christ and there after make a "solemn dedication" to Jehovah to do his will and they symbolise it by water baptism. Well since the concept of "dedication" as a requirement for salvation is not found in the bible, the society therefore preys on it to manipulate JWs into doing their own bidding, thereby making themselves god rather than direct all honor to Jehovah.

But how do they do this? well they strike fear in the hearts of most JWs that their dedication, in other words their vow to do Jehovah's will is directly tied to their salvation, meaning that whenever the vow is broken, the loose favour in the sight of God. Part of that vow also include accepting the governing body as the "faithful and discrete slave".

The most dangerous thing about this teaching is that it is not found anywhere in the bible, neither is it a requirement for salvation. This simply suggests that they earn their salvation by living up to their dedication to God, something clearly forbidden in the scriptures that one cannot earn salvation through works, but by grace through Christ Jesus. They even go further boasting about how they work tirelessly for God by keeping record of how many hours they spend in their preaching work, and the watchtower in turn boast about their efforts in the year book how they print millions of literature for the preaching work.

While dedicating oneself to God is noble, it should be noted that since Jesus didnt preach dedication (actually Jesus taught repentance) nor the apostles, it has obviously gone beyond what is written, something clearly violating God's word that we should neither add or remove from scriptures.

The Watchtower of August 15, 1997 said: “Studying the Bible, applying what is learned, dedication, and baptism are steps leading to salvation.” —w97 8/15 7 Salvation-What It Really Means.

There are some Bible subjects that evoke strong emotions in their believers. Christendom has its Trinity. To question the Trinity is to question the very identity of God himself and to deny Jesus. To them, accepting the Trinity is necessary for salvation. Is it taught in the Scriptures? We argue that it is not; that neither the word nor the idea is found in the Bible, and that those who teach it are twisting the Scriptures. But we have our own "Trinity."

The apostle Paul asks, "Do you, however, the one teaching someone else, not teach yourself?..." (Rom. 2:21) If we find fault with the Trinity teaching because of its lack of clear scriptural support, then why are we just as zealous about our own teaching on Dedication, when we have even less Scriptures to point to? Look at the following Watchtower quote regarding the purpose of our baptism:

For What Purpose?
Why did Jesus require that his disciples be baptized? Well, it was a fitting symbol of their wholehearted dedication to God. . .
Being dipped under the water showed that those being baptized had died to a life course that had centered on themselves. Their being raised up out of the water symbolized that they were now alive to the doing of God’s will and were putting it first in their lives, as Jesus had done. (Matthew 16:24)

What Will You Do?
A person who truly has such love and wants a special relationship with Jehovah God would not hold back from freely dedicating his life to him. Baptism is but an outward symbol of that dedication. It is a necessary step toward salvation. —w93 4/1 5-7 Should You Be Baptized? (Italics mine)

How many Scriptures will you find to support the above statement from the 1993 Watchtower? What Scriptures do you use when you teach your bible study as to WHY they must get baptized?

Acts 2:37-38 simply says: "Now when they heard this they were stabbed to the heart, and they said to Peter and the rest of the apostles: “Men, brothers, what shall we do?” Peter [said] to them: “Repent, and let each one of YOU be baptized in the name of Jesus Christ for forgiveness of YOUR sins, and YOU will receive the free gift of the holy spirit."

By our "Dedication and the symbolizing of it by baptism" are we not teaching that we must EARN salvation? That is what the following Watchtower articles say:

Dedication and Our Obligation to God
Some baptized Christians need to pray earnestly because they are not living up to the ministerial obligations they assumed when they made a dedication to God. —w99 11/15 19 Are You Fulfilling Your Whole Obligation to God? (Italics mine)

Therefore, regardless of how many years we may eagerly have awaited the end of this wicked, unjust, and violent world, we must zealously live up to our dedication in accord with our circumstances. —w98 6/15 21 Jehovah's Organization Supports Your Ministry.

May we therefore fulfill our dedication to Jehovah and not “shrink back to destruction.” —Hebrews 10:39. —w98 7/15 19 Have You Entered Into God's Rest? (Italics mine)

The articles offer no Scriptures that mention the necessity for any dedication. Neither will you find any at all. Like Christendom with its Trinity, we cite a scripture and then stretch it a bit here and there to make it fit just what we want it to say. And we fully expect faithful servants of Jehovah to accept that. But, just as we tell others, if it is not found in the Bible it is not from God. And somewhere along the line it will conflict with God's Word.

Teaching that we gain salvation due to our dedication contradicts what the Bible teaches.

Ephesians 2:4-7,
"But God, who is rich in mercy, for his great love with which he loved us, 5 made us alive together with the Christ, even when we were dead in trespasses—by undeserved kindness YOU have been saved— 6 and he raised us up together and seated us together in the heavenly places in union with Christ Jesus, 7 that in the coming systems of things there might be demonstrated the surpassing riches of his undeserved kindness in his graciousness toward us in union with Christ Jesus."

Hebrews 2:9,
"but we behold Jesus, who has been made a little lower than angels, crowned with glory and honor for having suffered death, that he by God’s undeserved kindness might taste death for every [man]."

Galatians 2:21,
"I do not shove aside the undeserved kindness of God; for if righteousness is through law, (or works of law) Christ actually died for nothing."

Galatians 5:4-5,
"4 YOU are parted from Christ, whoever YOU are that try to be declared righteous by means of law; YOU have fallen away from his undeserved kindness. 5 For our part we by spirit are eagerly waiting for the hoped-for righteousness as a result of faith."

Romans 4:2-5,
"If, for instance, Abraham were declared righteous as a result of works, he would have ground for boasting; but not with God. 3 For what does the scripture say? “Abraham exercised faith in Jehovah, and it was counted to him as righteousness.” 4 Now to the man that works the pay is counted, not as an undeserved kindness, but as a debt. 5 On the other hand, to the man that does not work but puts faith in him who declares the ungodly one righteous, his faith is counted as righteousness."

Are we not "parted from Christ. . . fallen away from his undeserved kindness," by our insistence that we can receive everlasting life only through works by living up to our dedication? Are we not also robbing Jehovah by emphasizing our dedication rather than his undeserved kindness? Does Jehovah owe us anything? Must we earn everlasting life? As Paul clearly explains, if we were to be "declared righteous as a result of works," then we would have ground for boasting, because we had earned it as payment of a debt, and not as a result of God's undeserved kindness. By teaching that we must "live up to our ministerial obligations" that we assumed when we made a dedication to God, we have placed a heavy burden on all who want to please God. And, of course, those in responsible positions are free to define, by means of their many publications, what living up to our dedication involves. (Matt. 11:30; 23:4) Note how they boast about doing this:

Each year, printing plants of the Watch Tower Society and similar legal bodies supply Jehovah’s Witnesses with millions of Bibles, books, brochures, and magazines for use in their worldwide preaching activity. These legal entities are therefore invaluable in helping dedicated servants of God to live up to their dedication to him. —w98 3/15 18 Living Up to Christian Dedication in Freedom.

If they agree that the unbaptized publisher has a reasonable understanding of Bible teachings and qualifies in other ways, they will tell him that he may be baptized. As a result of his dedication and baptism, he becomes ‘marked’ for salvation.—Ezekiel 9:4-6. —w96 1/15 17 Jehovah's Sheep Need Tender Care. (Italics mine)

Interestingly, the Daily Text for Thursday, January 14, 2010, noted the following in contrast to the above quotes: "Sinful humans cannot earn everlasting life by their imperfect efforts to do what is right. (Isa. 64:6) Gaining everlasting life is possible only by putting faith in God’s loving provision of salvation through Jesus Christ. Let us do all that we can to show our appreciation for that undeserved kindness of God! —w08 6/15 2:2, 3".

Why the contradiction? If we cannot "earn everlasting life by [our] imperfect efforts to do what is right," and that our salvation is due to the "undeserved kindness of God," then why the insistence on living up to our dedication? We may not be confused about the identity of Jesus and GOD, but when it comes to the ransom and salvation we ARE confused, and for the same reason that Christendom is about their Trinity; we have broken "the rule" about not going beyond what is written. (1Cor. 4:6; Deut. 12:32) Whereas Christendom's Trinity deflects honor from Jehovah and bestows it upon his Son, our "Dedication" deflects the honor from Jehovah and his Son and bestows it upon ourselves.

Proverbs 30:5,6 also says, "Every saying of God is refined . . . Add nothing to his words, that he may not reprove you, and that you may not have to be proved a liar."

4. Most JW do not know that the watchtowers governing body are not the faithful and discrete slave: Do you know that since 1919, the governing body of JW claim they are the faithful and discrete slave Jesus talked about in Matthew 24:45. they base this teaching on the premise that Jesus returned in 1914 and judged Christendom (other churches) as wicked servants and apostates and bestowed on them (watch towers governing body) the position of the discrete and faithful slave that the master found feeding his domestics, and as such rewarded them with the task of all of Jesus's domestics. This teaching and doctrine is very dear to the heart of most JW and because of this they are obligated to accept all their teachings as "truth" even when the bible warns that we should test all inspired expressions to know if they originate with God.

The facts remains that Jesus did not return in 1914, and he definitely did not apoint anybody as faithful and discrete slave in 1919. This is a pure lie not found in the bible and unfortunately most JW are blinded to this truth.

A good indicator as to the nearness of Jehovah's day is not necessarily studying world events, but more importantly witnessing certain developments within God's household. These things must first take place as foretold in the Scriptures. (Matt. 26:54) Having convinced ourselves that we are nothing but wonderful in Jehovah's eyes, and shrugging off his condemnatory prophecies as applying to the world, particularly the churches of Christendom rather than to ourselves, we have failed to comprehend our true situation before Jehovah. (Amos 3:2; 4:12) Jehovah's people have been led astray by being told that they have "peace, when there is no peace." (Jer. 8:11; Ezek. 13:10) For that reason it will be just as Jesus warned, we will be caught by surprise when he arrives to settle accounts with his slaves at a time we do not think to be it. (Luke 12:40; Rev. 3:3) Paul wrote for our benefit—those living in the last days—that Jehovah's day will not come unless there are first certain developments taking place, and this in connection with an apostasy and revealing, or identifying, of "the man of lawlessness."

Apostasy, from Jehovah's standpoint, is a turning away from him and a rejection of his word. (Isaiah 9:16,17; Jer. 17:13, NWT) It is clear that apostasy can develop only from among God's own people, within his household, his temple. It is not at all unusual for an anointed one of Jehovah to become presumptuous and apostatize. We can recall such well known examples as the anointed cherub (who made himself Satan the Devil), Saul, Solomon, and Jeroboam, just to mention a few, each of these having been anointed for their privileged position before apostatizing. Sadly, the great majority of God's anointed kings proved rebellious; some becoming extremely wicked and cruel, resulting in much suffering for their subjects. It should therefore not be at all surprising to God's people today that a wicked "man of lawlessness" would be seating himself prominently right inside God's temple, "publicly showing himself to be a god." This "son of destruction," as he is also called, is said to be actually sitting in "opposition" to true worship.

Paul says that the man of lawlessness, in his ambition to be "someone or something considered to be extremely valuable or important" (Webster's definition of "god", has elevated himself over those who are "called 'god' or an object of reverence." (John 10:34-36) Who does the Bible identify these ones to be? The Scriptures speak of them as "holy" (NWT) or "chosen ones" (CEV), who will receive "the kingdom and the rulership and the grandeur of the kingdoms under all the heavens," and upon their proving faithful unto death will "rule as kings with the Christ for the thousand years." Yes, they are the ones who make up the foundation stones of God's temple, each one of them chosen and put in place by Jehovah God himself. Evidently, the man of lawlessness has desired to especially dominate these within God's temple. —Dan. 7:18, 27; NWT; 1 Cor. 8:5; Rev. 2:10; 3:21; 20:6.

In agreement with what Paul foretold, among God's people today there is actually a small group of men who have fulfilled this prophecy in great detail. It is the Governing Body of the Watchtower Society. The members of this elite group of men assert that there was such a governing body arrangement over God's people in the first century, and therefore justifies their exalted position within God's household. A recent Watchtower article states: "The apostles and the elders of the Jerusalem congregation acted as a governing body. Christ used this instrument to lead the entire group of his anointed 'brothers' on earth. (Heb. 2:11; Acts 16:4, 5) In this time of the end, Christ has committed 'all his belongings'—all the earthly interests of the Kingdom—to his 'faithful and discreet slave' and its representative Governing Body, a group of anointed Christian men." —September 15, 2010 Study Watchtower.

Contrary to their claim, though, there is no scriptural evidence to support the idea of a governing body in Jerusalem that Christ used to "lead the entire group of his anointed brothers on earth." The apostle Paul certainly did not recognize any "special leaders" (CEV) exercising authority over him or other fellow believers; nor, as he says, did he submit to any such ones. And neither did Jesus acknowledge such an entity when he wrote directly to the seven congregations in Asia Minor. (Gal. 1:15-19; 2:47; Rev. 1:11, 19,20) In fact, the very idea of a governing body goes contrary to what Jesus told his disciples on his last night with them, when once again they argued as to who the greatest among them was: "The kings of the Gentiles dominate them, and those who have authority over them are called 'Benefactors.' But it must not be like that among you. On the contrary, whoever is greatest among you must become like the youngest, and whoever leads, like the one serving." —Luke 22:24-26, HCSB; Matt. 20:25,26.

In imitation of the kings of the nations, and in connection with a secular corporation, the governing body members have elevated themselves within God's household over God's people, and "dominate them." They have publicly shown themselves to be a "god" by the authority they have claimed for themselves, and by presenting their teachings as equal in authority to God's Word, considering their publications as official as the Bible itself. (Matt. 23:2-4) For example, in one Watchtower article elders were told: "If the Bible and the publications of the 'faithful and discreet slave' do not clearly outline a course, the elders should not impose their personal likes and dislikes, as if these were rules to be followed by the others." —w75 8/1 p. 474 par. 12, Elders Presiding in a Fine Way.

Another article addressing congregation elders admonished: "What is your attitude toward directives from 'the faithful and discreet slave'? Loyalty should move you to be 'ready to obey.' (Jas. 3:17) Always try to capture the spirit of information published by the 'slave' class. Then convey this to the congregation. The brothers need your loyal example as you cooperate with the rest of the body of elders." (w81 12/1 pp. 11-14 “Kingdom Loyalty”—What Does It Mean to You?) You may have noticed in your congregation that the visiting Circuit Overseer will frequently refer to the Society's publications as the authority for establishing a scriptural matter, or "proving" one of their many traditions. This, of course, is in an effort to instill trust and confidence on the part of God's people in the self-proclaimed "faithful and discreet slave," and encourage loyally following their leadership. You can see many of the elders imitating this.

They also teach that we cannot enjoy a relationship with Jehovah apart from the governing body: "We cannot hope to acquire a good relationship with Jehovah if we ignore those whom Jesus has appointed to care for his belongings. Without the assistance of 'the faithful and discreet slave,' we would neither understand the full import of what we read in God’s Word nor know how to apply it. (Matt. 24:45-47)". The same Watchtower says further: "The anointed and their other sheep companions recognize that by following the lead of the modern-day Governing Body, they are in fact following their Leader, Christ." (September 15, 2010 Study Watchtower) Another article declared: “It is vital that we. . . respond to the directions of the 'slave' as we would to the voice of God, because it is His provision." —Watchtower 6/15/1957, p. 370, JEHOVAH’S CHANNEL OF COMMUNICATION.

Compare the above Watchtower statements with Jesus' own words: "I am the way and the truth and the life. No one comes to the Father except through me." (John 14:6) Also note the apostle Peter's statement regarding the uniqueness of Jesus' position: "There is no salvation in anyone else, for there is not another name under heaven that has been given among men by which we must get saved." (Acts 4:12) The governing body should be teaching God's people to obey Jehovah's command, "Don't put your trust in human leaders. Don't trust in people. They can't save you." —Psalms 146:3, NIRV.

Aaron, as high priest, was called by God and blessed with a prominent and prestigious position within the nation of Israel, as did his sister Miriam as prophetess. (Heb. 5:4,5; Ex. 15:20) Yet both of them coveted the superior appointment of their brother Moses, for God had "entrusted [Moses] with all his house," and spoke with him "face to face." (Ex. 33:11; Num. 7:89; 12:7,8; Heb. 3:5,6) Therefore Aaron and Miriam started to complain: "Is it just by Moses alone that Jehovah has spoken? Is it not by us also that he has spoken?" The account goes on to say: "And Jehovah was listening," and "Jehovah's anger got to be hot against them. . . and, look! Miriam was struck with leprosy as white as snow." (Num. 12:1,2, 9,10) Has the governing body not become guilty of the same aspiration as that of Aaron and Miriam? Are they not in effect saying, as expressed in the above Watchtower quotes, "is it by Jesus alone that Jehovah has spoken? Is it not by us also that he has spoken?"

In coveting the glory and the authority that has been given only to Jesus—the greater Moses—the governing body members have also become guilty of imitating the ambitions of the infamous rebels Korah, Dathan and his brother Abiram. By wanting to elevate themselves to the position of Moses as leader over God's people, those three men, along with their 250 followers, became guilty of rebelling against Jehovah. By the awesome display of power that Jehovah used in executing them and everything that belonged to them he proved beyond any doubt to all onlookers that those rebels had "treated Jehovah disrespectfully." Yes, it was not only Moses that they had opposed, but also Jehovah himself.—Num. 16:12-14, 30-35; Jude 11; Matt. 23:10; 1 Peter 3:22.

The modern-day Korah·Dathan·Abiram claims to be God's channel of communication in our day. Thus in one Watchtower it was stated: "God spoke to his people through Moses and other prophets. Then, Jehovah spoke to them through his Son, Jesus Christ. (Hebrews 1:1, 2) Today, we have God’s complete inspired Word, the Holy Bible. We also have 'the faithful and discreet slave,' appointed by Jesus to provide spiritual 'food at the proper time.' (Matthew 24:45-47) Thus, God is still speaking. But are we listening?" (w98 7/15 p. 12 par. 15 Beware of a Lack of Faith) Yes, today Jehovah is still speaking to his people; no, not by any men or group of men, but rather by means of his Son Christ Jesus, as Paul tells us: "God, who long ago spoke on many occasions and in many ways to our forefathers by means of the prophets, has at the end of these days spoken to us by means of a Son, whom he appointed heir of all things." (Heb. 1:1,2; 2:16-18; 8:1,2) The above Watchtower appropriately notes, "today, we have God's complete inspired Word." It is within the pages of that inspired Word that we find Jesus' teachings preserved for our benefit, by means of which God is speaking to us. There is no need for anyone else to replace Jesus, for he himself promised his disciples: "And, look! I am with you all the days until the conclusion of the system of things."—Matthew 28:20.

We are commanded not to add anything to God's Word, nor take away from it. (Deut. 4:2; 12:32; Prov. 30:6; Rev. 22:18,19) In fact, it is this food—Jesus' teachings—that God's appointed servants ought to be dispensing. (John 6:35; Luke 12:42) Rather than any governing body, Jehovah has provided "the spirit of the truth, which the world cannot receive," which not only teaches his people but also unites them. That has not changed since the first century! This truth never changes. (John 14:16,17, 26) The man of lawlessness, whose "presence is according to the operation of Satan," has replaced Jesus as head in the congregation. He has also blasphemously replaced the holy spirit within God's household. Therefore, he does not have "the spirit of the truth," and neither can he receive it. To him it is not about truth, but about authority and domination! The apostle Paul explains, "because they did not accept the love of the truth," but "took pleasure in unrighteousness," God allows "an operation of error go to them, that they may get to believing the lie." (2 Thess. 2:10-12) This explains why many of their predictions have failed to materialize, and the reason certain "truths" taught at one time are now no longer valid. That is why the apostle John wrote: "Beloved ones, do not believe every inspired expression, but test the inspired expressions to see whether they originate with God, because many false prophets have gone forth into the world." —1 John 4:1.

The apostle Paul says that the existence of the man of lawlessness, and his identity, would be revealed in God's due time. Jesus also said: "For all that is secret will eventually be brought into the open, and everything that is concealed will be brought to light and made known to all." (Luke 8:17, NLT) Thanks to the internet, the ambitions and errors of our leaders have now become widely known. They have been humiliated yet it has not humbled them. Neither have they felt embarrassed. On the contrary! Their insistence on our absolute trust and obedience has become even more pronounced. It is as Jeremiah wrote: "Prophets and priests and everyone in between twist words and doctor truth. My people are broken—shattered!—and they put on Band-Aids, Saying, 'It's not so bad. You'll be just fine.' But things are not 'just fine'! Do you suppose they are embarrassed over this outrage? No, they have no shame. They don't even know how to blush. There's no hope for them. They've hit bottom and there's no getting up. As far as I'm concerned, they're finished."—Jer. 6:13-15, The Message.

They have not blushed in connection with their bold promise as expressed back in a 1969 Awake! magazine: "If you are a young person, you also need to face the fact that you will never grow old in this present system of things. Why not? Because all the evidence in fulfillment of Bible prophecy indicates that this corrupt system is due to end in a few years. Of the generation that observed the beginning of the 'last days' in 1914, Jesus foretold: 'This generation will by no means pass away until all these things occur.' Therefore, as a young person, you will never fulfill any career that this system offers." (Awake! 1969 May 22 p.15) Ironically, many of the ones especially trusting in the Society's leadership and their promises are now suffering the most, finding themselves destitute. Contrary to their expectations, they have grown old in this present system of things and are now working at menial jobs way past their retirement age, not having prepared financially for their old age. But do not allow the failed promises of the self-professed "faithful slave" throw you off your spiritual balance! You can continue to have full confidence in Jehovah's promises, for they will never fail to come true, nor lead to disappointment, although appearing to delay.—Habakkuk 2:2-4.

The Governing Body members, in their effort to hold on to their lofty position within God's temple, have hired powerful lawyers whom they trust and who have become their advisers rather than Jehovah or Jesus, even when their advice goes contrary to what the Scriptures teach. (John 13:34,35) Under the direction of these lawyers they have dealt harshly with many of Jehovah's sheep. It is not unusual to have one of the Society's lawyers represent in a court of law a prominent elder who has been charged with child molestation, or sexual harassment of a sister. Thus they protect their own interest and wealth from lawsuits, and attempt to hide wrongdoing, and in the process deny justice to the innocent ones, although they know full well Jehovah's view of such matters: "Woe to those enacting crooked statutes and writing oppressive laws to keep the poor from getting a fair trial and to deprive the afflicted among my people of justice, so that widows can be their spoil and they can plunder the fatherless. What will you do on the day of punishment when devastation comes from far away? Who will you run to for help? Where will you leave your wealth?"—Isaiah 10:1-3, HCSB.

Anyone not submitting to their authority is expelled from the congregation as being apostate; even God's chosen ones. (Matt. 24:22,24,31; Col. 3:12) They are Diotrephes personified, of whom the apostle John wrote in his short third letter: "I wrote something to the congregation, but Diotrephes, who likes to have the first place among them, does not receive anything from us with respect. That is why, if I come, I will call to remembrance his works which he goes on doing, chattering about us with wicked words. Also, not being content with these things, neither does he himself receive the brothers with respect, and those who are wanting to receive them he tries to hinder and to throw out of the congregation." (3 John 9,10) Do they imagine that God approves of their action, and that there will be no accountability? —Romans 14:12; Hebrews 4:13.

If we seem surprised, even shocked, by all this development within God's organization we should remember Paul's words: "Do you not remember that, while I was yet with you, I used to tell you these things?" (vs. 5) Yes, these things must take place in order for the Scriptures to be fulfilled. (Luke 21:22) This wicked element was already evident in Paul's day, in the form of the "superfine apostles" who had elevated themselves over their fellow believers and had started to rule over them. But as Paul said, any such authority they felt they had was not from Jehovah. (1 Cor. 4:8-10) In fact, their presence and position of authority within God's temple is "according to the operation of Satan," and reflects his own ambitions. —2 Thess. 2:9.

3. They Teach Most JWs that they are not part of the new covenant: Infact this particular teaching is the one that scares me most, how can you tell me that i am not part of the new covenant of which Jesus Christ shed his precious blood for? The watch tower teaches that since 1935, the gathering of the "great crowd" started and they associated the great crowd of Rev. chapter 7 with the "other sheep" Jesus talked about in John 10:16, a teaching that has been proven false by context since Jesus was talking to the Jews that He (Jesus) have other sheep (the gentile nations) which are not of this fold (the jewish nation) which he will bring together so that the little flock (the jews) will be one flock with the other sheep (the gentile nations) and they two will become one flock. This bringing together started when Cornelius became the first non-jew to be converted to Christianity. Since then the epistles teaches that there is no more distinction between the jews and other nations, meaning that the two flock have become one.

But the watch tower does'nt see it that way, they teach JWs that the little flock consist of only 144,000 co-rulers with Christ, and that the new covenant of our Lord Jesus Christ include only them. They explained other sheep as the great crowd that came out of the great tribulation and which their destiny is to live on earth forever while the little flock have their destiny in the heavens. Thus the "other sheep" are not in the new covenant, but simply associating with Jesus's brothers (the 144,000). If you attended the memorial earlier this week, you may notice either one or two persons partook in the emblems or no one at all! why? Because according to the watch tower's teaching only those in the new covenant can partake from the wine and bread.

At first when President Frank Rutherford identified the great crowd in 1935, they were not regarded as JWs, they were called the "jonandabs" and later it was changed to other sheep of the great crowd. In early 1930s, these set of witnesses are not allowed to be baptized, it was later on that the accepted them as Jehovah's witnesses and subsequently started baptizing them.

Does the above understanding make any sense? my reasoning is that if i am not in the new covenant, then i can never be saved, if not how can my sins be forgiven if i am not allowed access to the "blood of Christ" which is the blood of the new covenant? As a JWs doesn't this teaching border you? if it does'nt then your salvation is probably not important to you.

An average JW that comes knocking at your door probably do not know these facts, because technically peeping into these things will invalidate their "dedication" which includes accepting the governing body and their teachings as the faithful and discrete slave.

The issue of the New Covenant, and who's included, has been examined many times that I have seen. However, a brother that I've come to know has a saying that keeps me grounded... "The truth is simple, it only becomes complicated when we deviate from it". Back while Jesus was on earth, we know how religious leaders were in charge of teaching the Jews the law. However, we also have come to understand that Jesus condemned them for corrupting that law, by adding to it abundantly. (Matthew 15:1-6)

To better understand the New Covenant, we should review the Abrahamic Covenant, and the subsequent Law Covenant Jehovah had made with the nation of Israel:

“I shall surely bless you and I shall surely multiply your seed like the stars of the heavens and like the grains of sand that are on the seashore; and your seed will take possession of the gate of his enemies. And by means of your seed all nations of the earth will certainly bless themselves due to the fact that you have listened to my voice." (Genesis 22:17, 18)

It is good to remember that up to this point Jehovah's cryptic promise about the "seed" that was to crush the head of the serpent has not yet been expanded upon. (Gen. 3:15) Now, Jehovah, "the One telling from the beginning the finale", has stated that this promised seed will come through Abraham's lineage. This promised seed will "take possession of the gate of his enemies" and, the most important point of all: all nations of the earth will certainly bless themselves because of this seed. Additionally, Jehovah promised to multiply Abraham's seed "like the stars of the heavens and like the grains of sand that are on the seashore".

Of course, Abraham's seed multiplied greatly, through his grandson, Jacob, who had 12 sons. Jacob's name was later changed to Israel, hence we have the 12 tribes of Israel. Under Joseph, this Abrahamic family was protected, and grew exponentially over the course of 400 years. (Genesis 15:13)

After their miraculous escape from Pharaoh's army by Jehovah's hand, Jehovah made a covenant with the nation of Israel:

"And now if YOU will strictly obey my voice and will indeed keep my covenant, then YOU will certainly become my special property out of all [other] peoples, because the whole earth belongs to me. And YOU yourselves will become to me a kingdom of priests and a holy nation.’ These are the words that you are to say to the sons of Israel." (Exodus 19:5, 6)

However, if we were to stop right here, one would ask: "Didn't Jehovah promise that all nations will bless themselves by means of this seed?" Yes, he did, which brings us to an important point. Jehovah has always intended on turning his attention to the Gentiles, the non-Jews. It was not predicated on whether or not the Jews were faithful.

“Look! There are days coming,” is the utterance of Jehovah, “and I will conclude with the house of Israel and with the house of Judah a new covenant; not one like the covenant that I concluded with their forefathers in the day of my taking hold of their hand to bring them forth out of the land of Egypt, ‘which covenant of mine they themselves broke, although I myself had husbandly ownership of them,’ is the utterance of Jehovah.” “For this is the covenant that I shall conclude with the house of Israel after those days,” is the utterance of Jehovah. “I will put my law within them, and in their heart I shall write it. And I will become their God, and they themselves will become my people.” “And they will no more teach each one his companion and each one his brother, saying, ‘KNOW Jehovah!’ for they will all of them know me, from the least one of them even to the greatest one of them,” is the utterance of Jehovah. “For I shall forgive their error, and their sin I shall remember no more." (Jeremiah 31:31-34)

Notice the reason why Jehovah instituted this New Covenant. True, Jehovah did mention that the Israelites did break the first covenant, but that was not the reason why he is concluding a new one. This new one, as Jehovah says, will allow permanent forgiveness of their sins. Remember, the original covenant had two very big limitations:

(1) It only applied to the natural Jews, but Jehovah's original promise to Abraham regarding his seed would benefit ALL mankind.

(2) As the Apostle Paul noted, the old Law Covenant, with the sacrifices that were offered through the Levite priesthood, does not allow for complete forgiveness of sins, but instead pointed out the need for Christ's perfect sacrifice:

"For since the Law has a shadow of the good things to come, but not the very substance of the things, [men] can never with the same sacrifices from year to year which they offer continually make those who approach perfect. Otherwise, would the [sacrifices] not have stopped being offered, because those rendering sacred service who had been cleansed once for all time would have no consciousness of sins anymore? To the contrary, by these sacrifices there is a reminding of sins from year to year, for it is not possible for the blood of bulls and of goats to take sins away." (Hebrews 10:1-4)

So this New Covenant was not instituted for the sole benefit of the 144,000 chosen to rule with Christ, but rather, it is what allows all faithful mankind to have their sins permanently forgiven, and declared righteous by means of their faith. (Galatians 3:7-9)

In Hebrews chapter 9, Paul compared the two covenants. Here are a few excerpts, showing the superiority and subsequent need for the New Covenant:

"However, when Christ came as a high priest of the good things that have come to pass, through the greater and more perfect tent not made with hands, that is, not of this creation, he entered, no, not with the blood of goats and of young bulls, but with his own blood, once for all time into the holy place and obtained an everlasting deliverance [for us]. For if the blood of goats and of bulls and the ashes of a heifer sprinkled on those who have been defiled sanctifies to the extent of cleanness of the flesh, how much more will the blood of the Christ, who through an everlasting spirit offered himself without blemish to God, cleanse our consciences from dead works that we may render sacred service to [the] living God?" (Hebrews 9:11-14)

We further read:

"Therefore he is the mediator of a new covenant, so that those who are called may receive the promised eternal inheritance, since a death has occurred that redeems them from the transgressions committed under the first covenant.[a] 16 For where a will is involved, the death of the one who made it must be established. 17 For a will takes effect only at death, since it is not in force as long as the one who made it is alive. 18 Therefore not even the first covenant was inaugurated without blood. 19 For when every commandment of the law had been declared by Moses to all the people, he took the blood of calves and goats, with water and scarlet wool and hyssop, and sprinkled both the book itself and all the people, 20 saying, “This is the blood of the covenant that God commanded for you.” 21 And in the same way he sprinkled with the blood both the tent and all the vessels used in worship. 22 Indeed, under the law almost everything is purified with blood, and without the shedding of blood there is no forgiveness of sins." (Hebrews 9:15-22; English Standard Version―ESV Footnote: a. Hebrews 9:15 The Greek word means both covenant and will; also verses 16, 17)

As we can see, the purpose of the New Covenant, is the redemption of all mankind, be it Jew or Gentile, anointed or non-anointed. The Old Covenant Jehovah had made with nation of Israel was voided, serving its purpose of pointing the Jews to Christ. (Galatians3:24)

Under this New Covenant, faithful mankind's sins are forgiven permanently, something that was not possible until Jesus' death as Paul mentioned. Through Jehovah's mercy and love for the entire human race, he has opened a way out of the turmoil that Adam placed his offspring in due to his disobedience. (John 3:16; Romans 5:12)

As Paul stated, under this New Covenant validated by Jesus' perfect blood, all faithful Christians are finally able to worship Jehovah with a clean conscience. Furthermore, as you can see, there is no mention of these provisions being exclusive to the anointed ones.

Jesus states that his blood validates the New Covenant: "This cup means the new covenant by virtue of my blood, which is to be poured out in your behalf." (Luke 22:20)

In Revelation, John's vision of the "great crowd" that survives the Great Tribulation references Jesus' words: "These are the ones who come out of the great tribulation, and they have washed their robes and made them white in the blood of the Lamb. That is why they are before the throne of God, and they are rendering him sacred service day and night in his temple…" (Revelation 7:14b, 15a)

Consider this final point: Did you notice a parallel in John's vision, and what Paul stated in Hebrews 9:14? Because of Jesus' sacrifice, we are all able to render "sacred service" that is acceptable to Jehovah. Or in other words, it is impossible to worship Jehovah without being part of the New Covenant! This fact alone precludes the notion that only the anointed are included in this covenant, for such a premise would mean that the vast majority of God's people are unable to worship him. Jesus' perfect blood gives all of Jehovah's people a righteous and clean standing (depicted by the white robes); and they are all "in his temple," which would be impossible unless they are in the New Covenant. The same was true with the physical tabernacle, where only those who were in the covenant mediated by Moses, and were clean in Jehovah's eyes, could worship God acceptably. (Exodus 30:17-21; Leviticus 22:1-3; 1 Corinthians 3:16,17; 2 Corinthians 6:16-18)

Ken4Christ:
Please tell them. The JW are the most deceptive religious group on earth. They are not Christians because they do not believe in the death burial and resurretion of Christ. There commitment though admirable but their doctrines are false.

obviously that is not the purpose of this thread, JWs are still God's peaple regardless of what watch tower teaches. As this thread progresses i will bring out scriptural proves supporting my statement. The evil element among them is the watch tower society which i am out to lay their sins bare in no distant time.