₦airaland Forum

It's not unusual though.  There is correlation between the length of the concession and the average toll.  If you want a shorter concession, the private operator will be allowed to recoup his cost plus any profit element over that shorter period meaning higher average tolls.  Which one you want?

Anyway, I would have thought your experience with the road so far is enough to wish it never return to Govt. management.

Does anyone know if there are minimum traffic guarantees in the concession?  It will be unusual not to have that and most banks (foreign ones at least) may be reluctant to lend to the project.  Let me explain: The private operator says we are paying this fee and taking over the road for 25 years under the assumption we get a minimum of X cars passing through per year. If the number of cars is less than X for whatever reason (eg, economic downturn, Govt. builds another expressway or high speed railway line alongside) then the Govt. compensates them.

Enjoyment1:
I am not feeling bad about the company or the kind of work they will do, neither am I against the toll fees, but my concern is the number of years for these contracts. People are just sucking us dry, under the guise of Privatisation. I weep for this country .

As with an errant child one can despair but at the same time never stop loving. The bonds are way too deep. Even those "Andrews" that claim to have given up are always here on NL looking for gist about the place.

I will always remain proud to be counted as a Nigerian because the bad folks and negative vibes do not sum up the country. In fact, be proud of the unique indomitable spirit that has kept and will continue to keep the underprivileged folks going in spite of all the challenges and negativity. Looking back, I continue to wonder how my grandmother kept a gaggle of kids and grand kids fed and sheltered with income only from selling vegetables off a basic market stall . As I struggle with bills and taxes nowadays, I now recognize she often went without to ensure we didn't.

I believe it is only when you look deep within yourself, existing comfortably in your overseas abode, and you notice that spirit is going, going, gone, you can finally let go. But, you will not be missed.

Problem is that his people are too busy nailing other people and foreigners in the creeks because the funds no reach dem. Na who chop am?

Enjoyment1:
Let people leave Ibori alone. Monkey no fine, but him mama like am. <b>His people would have nailed him</b> if he had stolen as the Obasanjos of this world.

luv2talk:
Confirmed**** they have seen the new moon in parts of Katsina and sokoto state, Barka De Sallah

Confirmed in London too.

http://www.iccuk.org/

Eid Mubarak, my people.

@Ndu_Chucks,

Good question.

I have always beleived that sanitizing the banks could be a good thing in the medium to long run so, unlike some, I do not question his motives (tribalism? gimme a break,  jealousy? Soludo supports a different premiership team? - actually I made that last one up).  The timing and public palaver may be wrong though.

I would probably have sacked the CEOs, but only after due process and adequate respect for all legal processes.  The initial assumption should be that they commited civil offences (ie, incompetence) in the process of giving out the loans and it is a long burden-of-proof leap between that and criminality (ie, fraud).  What I'm saying is that this current spectacle with the EFCC was avoidable and unfortunate because it adds to the general perception of risk.

There are a few questions I have yet to see answered properly in the public domain. We are being drip-fed stories.  Again, I do not question Sanusi's motives but I question his tactics. 

For instance, I still do not know:

- the independence and competence of the "Auditors"

- the arrived-at definition (which, in my observation, appears different from the common definition) of "non-performing" loans

- when loans are non-perfoming, the credit agrements stipulate processes of remedying the default and these do not usually include immediate handing over to EFCC mosquitos.  Again, have the CEOs initiated those processes and, if not, was it because of incompetence (maybe a civil offence) or fraud (criminality)? For instance, I have since read that the portion of the loans relating to margin loans to stockbrokers were already covered under a recent restructuring agreement indicating to me that the CEOs were actively working to mitigate the losses.

- I am sceptical about the importance attached to the publicized lack of collateral.  In the margin loans for stock purchases, the collateral was the stockholding and, possibly, other assets in the broker's portfolio.  Maybe the current gap between the current valuations and the loans has been allowed to widen beyond what is expected in a well managed system, so the brokers must share responsibility for this.  More importantly, the value of those collateralized stock is not zero and the loan exposure being reported is overstated - adding to the perception of risk.  Similarly, loans given for the Oil & Gas contracts are collaterized by the assets and any receivable under the supply contracts.  It is yet to be proven that the CEOs were not taking considered risks in the management of their loans.

So, after all the above, yes, is is established there are some bad loans in the tru sense of the word and the post-audit amounts are quantified and verified.  I would then, as CBN offer to adopt these loans into a separate vehicle that can be managed directly and make up the balance sheet of the banks in equivalent amounts.  Where recapitalization is necessary, take equity positions in the banks and at a latter stage offer them to private (foreign) strategic partners. It would have been possible to achieve an orderly transition of the banks into much better shape in a short period of time.

Of course, if it has come down to this, the CEOs will be  quietly removed on the basis of incompetence and contine to investigate over the next few months whether any fraud has been commited.  No need for all the furore.


Sorry for dogo turenchi, my brother.

ndu_chucks:
JNdupu,


my question for you be say, na for how long sanusi for let dem to continue to operate their banks with loans and without the capitalization wey CBN required? dem do am already for 1 year, e for better if Sanusi give dem another year or 2? how you for take handle de situation if you be Sanusi? i dey wait for ya answer. i no like to dey write long text, you sabi say na oyinbo spell checker dem get for here, de ting no understand pidgin, so forgive me in advance.

Good explanation. Anyone asking for comfort letters is probably just looking for evidence of a banking relationship They are inherently useless for credit assessment purposes because the banks' legal departments would have inserted some form of disclaimer language.

ndu_chucks:
Ok, no vex. I go try rewrite am.


BANK COMFORT LETTER

In this illustration, Putin Incorporated LLC has a refinery in Russia and they are offering to sell 1000MT/month of diesel to willing buyers.  Now, a Nigerian Diesel importer may show an interest  to enter into a contract with Putin LLC for the purchase of the offered diesel for the duration of, say, 12 months. Putin could require you, the Nigerian importer,  to provide a bank comfort letter before they enter into an agreement with you. The comfort letter issued by your bank is used to offer "comfort" to Putin LLC  as to the your  ability or willingness to perform your obligations. Note that the comfort letter is not a payment mechanism, per se, like the letter of credit.

I used to evaluate several countries as potential investment destinations and one important tool in my armory was a subscription to a risk intelligence service such as EIU (The Economist Intelligence Unit). Unfortunately, I have let my subscription lapse but you can be sure all the foreign investors, financial institutions and potential counterparties will be fully subscribed and ready to "drop it like it's hot" if you know what I mean.

You can find the current (free to view) summary for Nigeria on

http://viewswire.eiu.com/index.asp?layout=RKcountryVW3&country_id=1650000165

Let us watch this page and any ongoing revisions.

By themselves, the very low ratings do not matter as the type of investor interested in Nigeria would have taken them into consideration. But when the trend starts getting worse, and the accompanying headlines strike a chord, you need to be very worried. Personally, if I read that the Chief Regulator can unilaterally dump an amount of money representing a significant percentage of the countries income onto the local market without any check and balance, I will "drop it like it's hot".

A lot of people here are getting abusive and making personal attacks on people pointing out that these actions could have severely negative consequences for the country in the short run. Consequences already being experienced by many people at the coalface of international finance.

If the majority do not wish these people to share their experiences with you, because perhaps it jars with deeply held beliefs and prejudices, why not make this forum a closed shop and we will respectfully gravitate elsewhere? After all, most of us only come here because we love our country.

In the short term, Sanusi's actions have increased the premium on all business activities to do with Nigeria. It is not accurate to say LCs are not being issued but the number of foreign banks prepared to do has reduced and they are charging a lot more as a result of Economics 101 (price elasticity vs supply vs demand) and a larger premium to cover increased perceived risk of default.  Businesses are hurting, trust me.

In the long term, the sanitization of the industry might result in a marked reduction of that premium as the industry as a whole is seen to be more robust.  Its just that I think you can achieve the same goal without the fanfare. Perception is a big thing in business.  Consider for a moment the movement of share prices on the stock market.  It is not as a result of a roomful of lemming accountants continously poring over balance sheets.

qblaze:
@SapeleGuy,

First of all, The Guardian did not name the banks whose LCs have turned to "tissue paper". I am positive that the five banks that scaled the initial audit are still enjoying good relations with their correspondent banks. If they are referring to Intercontinental, Oceanic, Finbank and company, then their argument is baseless because for the past seven months, those five banks have been seldom operational in the forex market talk less of facilitating international trade.

Rhetorical question (as it is unlikely both will ever compete against each other) but my National team everytime.

It hurts when my Club team loses but I'm usually back eating yanfu yanfu after a couple of hours. As at today, pepper soup still tastes like brackish water to me. And, I won't pay $3000 for tickets to follow my Club team in a distant tournament they have not qualified for yet.

Chei, god go punish all those Super Chickens.

At the end of every friendly match in london, Osaze is usually the only player to go towards the fans and acknowledge them.

Can we begin to imagine how many flight connections he has to take to answer the national call-up each time? Can we begin to imagine his frustration at having to maintain his game while "coaching" the clueless mugus Amodu surrounds him with?

God knows why but the boy really loves his country. We should love him back.

This is my recurring hang-up when those in "civilized" countries go around prescribing democracy at all cost.  The country is like a mother cow with milk teats reddened and sucked dry by a thousand unproductive leeches.

In recent history, rapid development has only been achieved in societies ruled through a form of benevolent dictatorship and that is what we need to raise overall living standards before we decide on what form of democracy we can really afford.

That might have to be unique to our circumstance and not some imported garbage that will bleed us dry.

mbulela:
A Lawmaker could pocket most of this N40 mil payment every month or quarterly. The true cost of a lawmaker’s service per year is beyond outrageous. Factor in the figures for each governor, state assembly legislator, commissioner, special adviser to governor, special adviser to president, LG chairman, LG council person, president, deputy president, minister, etc. and you will conclude that this is indeed a very expensive democracy.

These emoluments are criminally outrageous and absolutely repugnant. There is no way we can afford or survive this kind of democracy. It's either we end up cannibalizing out ourselves in a do-or-die struggle or the state goes bankrupt.

Yet this has been the state of affairs, even under military regimes. The only difference is that under democratic rule, people have more access to data on the true costs of the corrupt administrative state.

My people, and the greatest tragedy , whether we qualify for the World Cup or not, this yeye goat will still lead an "official delegation" to the tournament. Their executive suites are already booked at the Don Micheangelo Johanessburg with estacode provided for in next year's budget.

How him no go beg Presido to save him neck.

Where u dey live? Na there gan gan your papa and mama come from?

U no understand the meaning of citizenship?

Bushwoman.

namun:
its their country but not their states. they are putting weight on the infrastructure and not adding anything to lagos state. their governors should be able to take care of them

Mikel!!

Ah don comot shirt ready to fight any living soul wey disagree, maza maza.

Who wan fight? I need to release some tension.

Ladies & gentlemen, we have a winner

larimo:
The days of the Super Eagles are gone! Welcome to the days of the Standing Eagles.

Did you see him fall over the ball looking for a foul before they broke and scored the second goal? When he had two other players he could have passed the ball to in his vicinity?  This at a time we were relatively comfortable.

He's useless!!

davidylan:
Lets be honest, the problem wasnt Mikel or the team, we didnt have a coach!

Wetin u shak?  Allthose long balls?  All those strolling with the ball like say na Bar beach em dey?

Sagamite:
But this is the best attacking football I have seen us play for a very long time.

Mikel lost that ball in midfield

Why all these long passes to their keeper?

Mikel is useless!!!!  Long pass to their keeper??

Goallll

Our buildup is too slow (and predictable) largely due to Mikel - can't help it, it's the only way he knows.  Compared to the Tunisians, we are snails.

Carry ya own go quench for dat your Germany you form-fool. With the kin tension wey dey here you come talk this kind yeye nonsense. Who cares if you dey lick dem y*nsh for there. Shior!!

dayokanu:
I dont understand why you want to give yourself heart attack over Naija.

I am currently watching the recorded match of Bayern vs Wolfsburg, after that watch Germany vs RSA.

If Naija doesnt win, we would start permutation and combination and hoping Kenya and Malawi helps us win Tunisia.

Damn

Lord forgive me for my lack of faith!!!!

This is awful.  Our midfiled is a joke!!!  Strikers have no movement!!

Odemwingie is playing too deep!!

I'm nervous, I no fit eat tonight even!! Because, my tickets are all paid for for the entire tournament next year. If Nigeria no qualify, man go vex oh!!

Thanks ladies. I've therefore been googling and seen one Tefal Actifry model which claims to fry 1 kg of potatoes with only one spoonful of oil! Meets all my needs as I really don't like all that dunking in too much oil.

Not cheap at over £120 in most shops but I'll try ebay.

My neighbor walked into my kitchen this evening and laughed because I had my sunglasses on. It was for protection because, for the first time in a long time, man was frying up some dodo and not making a good job of it. The hot oil was splattering everywhere and I could not even enjoy the meal afterwards thinking of the cleaning up afterwards.

There must be another way. Some device you can just fill with the chopped plantain, relax with some Guinness before serving up succulent dodo, no molest. No? In these days of healthy eating too, I could do with something that does not need gallons of oil to fry-up the dodo.

Any recommendations? I like my dodo too much and recession means man must DIY from now on. No more takeaways.

I booked to fly Bellview from Lagos to Douala this february (it was the only connecting flight at the most convenient time for me).  Upon checking-in, we were told the aeroplane was running three hours late.  This became seven hours as I got acquainted with the MMA airside mosquitoes.  

Apparently, they have one aeroplane that runs kabu-kabu along the West African coast, stopping at the various capitals to pick up passengers as required so any minor delay is amplified to a point the entire schedule is unreliable.

BUT, to be fair, the employees were making the best of a difficult situation not necessarily of their own making.  From the booking office in Kilburn to the weary check-in staff at MMA, they displayed patience (comes with practice, I suppose) and tried to assist as best as possible even as the information they were getting kept changing.  In particular, that airline does not deserve the manager on duty at MMA that day (I forget his name to my continuing chagrin).

The return journey was with Virgin Nigeria and the difference was 7-up.