₦airaland Forum

Billionaire businessman Aliko Dangote, CEO
of the eponymous Nigerian cement and
construction juggernaut, said his firm will
continue to amass oil and gas assets
despite the low price of commodities.

In my previous capacity as the Chairman of the
Technical Committee of the National Council on
Privatisation up until May 2015, I canvassed for
the privatisation of the power sector, sale of Nitel
and pushed for the sale of the refineries and the
passage of the transport reform bills before time
ran out on the last administration.
The Nigerian economy has since taken a turn for
the worse. We are now confronted by the twin
evils of economic stagnation (2.06 percent
contraction of real GDP in the second quarter of
2016) and a high inflation rate (above 17
percent.) Stagnation + Inflation = Stagflation.
Those calling for a drop in interest rates, at a time
of ravaging inflation and uncontained exchange
rate pressures, are guilty of carrying out a partial/
jaundiced analysis. Their prescription would
further destabilise the macroeconomy.
These same people never seem to conclude their
prescription. They should equally prescribe how
to allocate scarce foreign exchange and attract
forex inflows? If they would go all the way and
recommend that we should allocate the available
CBN dollars via a lottery, conducted on live
television, where the winners pay N320/$1 and
the losers head for the parallel market at N440/$
1, then we can take them seriously. At least such
a lottery would be “scientific”, transparent and
corruption free.
Ideally, the economy would benefit from a dose of
stimulus, but only the type that simultaneously
helps to ease Nigeria’s forex scarcity problem,
rather than simply heating up the forex market
further.
I am an economist, an investment banker and an
entrepreneur too and so I know that, if you offer
investors negative real interest rates and
phenomenal forex arbitrage opportunities, then
few will bother to invest in anything real. They
would rather borrow naira at low interest rates to
chase Central Bank of Nigeria (CBN) dollars at
N320/$1 with the aim of importing goods to sell
to consumers at an effective rate of N440/$1. In
effect, round-tripping will become the only
worthwhile investment game in town. The time to
bring down interest rates is when we have
contained the inflationary pressures or are well on
the road to doing so.
What we need is a combination of well thought
out, calibrated and properly sequenced fiscal and
monetary policies supported by the right mix of
macro-prudential tools. Thankfully, the Monetary
Policy Committee (MPC) of the CBN recently
brushed aside some ill-advised public pleas for a
drop in interest rates in the face of stagflation.
Monetary and exchange rate policy, based on a
sound theoretical underpinning such as the
Mundell-Fleming Trilemma, is clearly not
everyone’s forte.
There are two broad avenues for
quickly increasing the availability of forex
and these are: (1) external borrowing; or
(2) asset sales. Let me quickly add that I
am nervous about the former because we
have weak institutions, a bloated and
inefficient public service and a
challenged economic team.
The elections are over at the Federal level and I
belong to the school of thought that believes that
all hands must be on deck to fight Stagflation.
The last administration did not save for the rainy
day during an oil boom and the current
administration was in denial for close to twelve
months until the acute forex and petrol scarcities,
occasioned by the continued pursuit of clearly
unaffordable subsidies, forced a policy rethink.
The CBN has half-embraced market determined
exchange rates, but then it retains so many
impediments to the smooth functioning of the
market that we are now stuck with confusing
multiple exchange rates which have spooked
investors. Business confidence is exceedingly low
on account of unguarded utterances by several
government functionaries, regulators
overreaching themselves and overzealous anti-
corruption agencies who take turns to harass
private sector businesses. Investors see that the
risk/return equation has altered dramatically –
risks are up and returns are down.
Stagflation is one of the most difficult
macroeconomic conditions to break out of and
the Nigerian elite owe it to the teeming masses to
jettison our differences, end the blame game and
instead work together to initiate a credible path
towards both lowering the inflation rate and
restoring economic growth. If we do not act now,
we may face four to eight years of zero per capita
income growth. Italy has just completed a decade
of no growth and Japan has attained that same
state for close to two decades. Brazil has been in
recession for three years and the economies of
Zimbabwe and Venezuela are in free fall. With our
large youthful population, that is unprotected by
adequate safety nets, Nigeria cannot afford to
emulate any of these countries.
Some of the longer term structural changes that
we need to institute to salvage our economy will
require a bipartisan handshake because they call
for constitutional changes. Those who are calling
for some form of political restructuring are right
to put that on the table because it is unclear how
unviable state governments that cannot pay
salaries, can become serious economic actors
over the course of the next decade.
Our economy could do with some fiscal stimulus,
but the Federal Government of Nigeria (FGN) has
no net savings to draw upon and our external
reserves have fallen dangerously low (below $25
billion). Instead, FGN faces a rising local debt
burden which can only become progressively
burdensome on account of high nominal naira
interest rates which are still necessary to contain
inflation and help douse exchange rate pressures.
The harsh reality is that the foreign exchange
scarcity will continue to bite for a while because
business confidence is exceedingly low and
investors (local and foreign) have lost faith and
now prefer to delay forex inflows.
There are two broad avenues for quickly
increasing the availability of forex and these are:
(1) external borrowing; or (2) asset sales. Let me
quickly add that I am nervous about the former
because we have weak institutions, a bloated and
inefficient public service and a challenged
economic team. The recent bad decision to sell
subsidised forex to pilgrims after a sharp naira
devaluation for everyone else speaks volumes.
If we have the discipline to
transparently execute selective and
strategic asset sales, that pass my 3-way
test, then we can significantly reduce the
extent of our recourse to worrisome
external debt. Working together, we can
tame this stagflation monster.
That brings me to asset sales. If these are done
strategically, they can constitute a triple boost to
a flagging economy. They can: (1) bring in forex;
(2) improve efficiency; and (3) reduce the drain
on existing resources which some FGN assets/
investments presently constitute. Call this my
three-way test.
I would not advocate for the sale of a “cash cow”
like the FGN stake in Nigeria LNG (NLNG) at this
time because it does not pass the second and
third pillars of my three-way test. Conversely, I
would advocate for the replication of the very
successful NLNG model, where the FGN stake is
capped below 50 percent across the oil producing
Joint Ventures (JV). The biggest obstacle to
incorporating the existing JVs between FGN and
the oil majors is attributable to the fact that no
right-thinking business house will want to be
“trapped” in an Incorporated JV (IJV) in which the
FGN has majority control. What happens when
FGN dissolves the Board and fails to appoint new
directors, thereby leaving the IJV short of a
quorum? NLNG works because FGN is not in
control there.
This is an excellent time to form separate IJVs
with Shell, ExxonMobil, Chevron, Total etc. but for
this arrangement to takeoff properly and quickly,
FGN must sell down its stake from the 55-60
percent that it presently holds to no more than
40 percent in each of the IJVs.
Anybody in his right mind will gladly pay a
premium to attain 51 percent and move away
from the present clumsy and unwieldy structure
where they are junior partners in a Joint Venture
with a historically meddlesome and value-
destructive Nigerian National Petroleum
Corporation (NNPC).
Adopting the NLNG model also frees the FGN from
the debilitating cash calls that have become
increasingly burdensome on the annual FGN
budget because the IJVs will be able to borrow
internationally to finance their investment
programmes. I would also favour the listing of the
IJVs on The Nigerian Stock Exchange by placing
the balance of the nine percent shareholding in
each of the IJVs with the investing public. This will
provide added public scrutiny (possibly better
than what FGN alone can provide through board
representation.) The refineries should also be sold
outright because NNPC has never been able to
run them and their outright sale also passes my
3-way test above.
If we have the discipline to transparently execute
selective and strategic asset sales, that pass my
3-way test, then we can significantly reduce the
extent of our recourse to worrisome external
debt. Working together, we can tame this
stagflation monster.

The senator representing Kogi West, Dino Melaye, on Monday asked the Minister of the Federal Capital Territory, Mohammed Bello, to order pastoralists out of Nigeria’s capital city of Abuja. Mr. Melaye made the call when the minister testified before the Senate Committee on the Federal Capital Territory. The committee is chaired by Mr. Melaye. Mr. Melaye reminded Mr. Bello that an earlier directive issued against the activities of herdsmen within the city had been ignored and a drastic action must be taken to end the menace. “Honourable Minister, Senate as an institution is not happy at how Fulani herdsmen continue to move their cows across the city centre, which we are aware you have given directive against that some time ago,” Mr. Melaye said. Mr. Melaye said Mr. Bello should direct municipal workers to move about with tools to either slaughter cows or seize them and place heavy fines on their owners. “From now, get knives and ask your men to slaughter cows found in the capital city or prosecute herdsmen seen with cows in the city centre with a fine of N50, 000 per cow. This order must be carried out,” Mr. Melaye said. Concerns have continued to mount about the activities of herdsmen across the FCT in recent months, as cows could be seen wandering around the city center, causing traffic gridlock and sometimes accidents. City residents called on the Nigerian government to proffer solutions to the menace.

“My brothers in Islam, what I want to tell you in
Hausa is, all of you unbelievers in Nigeria, Buhari
and your likes and Idris Deby ( the President of
Chad) with his goat-like eyes and the people of
Niger, Africa, and the entire world, listen to me
now. I am alive and healthy. But you should know
that were my days of living over, you wouldn’t
have seen me here.
“So many people live even when they are wanted
dead, and so also people die when they should
have lived.
“Prophet Muhammad (SAW) have been tested
with similar hatred because of the religion of
Allah.
“Keep doing all your evil planning with Benjamin
Netanyahu (Israeli Prime Minister), keep doing all
your evil planning with John Kerry (U.S. Secretary
of State), keep doing all your evil planning with
Ban Ki Moon (UN Secretary General), keep doing
all your evil planning with the people of Geneva.
Anything you are planning is not up to one house
of a spider. And that is what I believe and stand
for and what I intend to tell the world.
“We are not sociologist, we are Quranists, and we
follow the Hadith and those who came before us.
“We are fools as people but the Quran is what is
guiding us and that is why you couldn’t defeat us
and we are sure of that.
“Don’t think you can oppress us with your fighter
jets. The Allah we worship lives above your jets
and you think you can defeat us knowing fully
that it that Allah we worship.
“So you think democracy is a religion. All of you
the Hausa people in Nigeria, The Kanuri People in
Nigeria and Miyetti Allah (A Fulani association of
cattle rearers).
“Buhari you are worshiping cows, you better
worship Allah. You think you are a general in the
Army but you should know that Allah have said
that you are not up the house of a spider in his
eyes. What we believe in is the Quran and we do
not know 2anything apart from that. Anytime we
say Allah all of you will not live in peace.
It is Allah that we believe and trust that makes us
live till this day and doing very well in our quest.
“Oh my brother, anywhere you are you should
turn to the Quran, turn to the Hadith of the
prophet, anywhere you are turn to Allah.
“Prophet Muhammad forbade us from using any
plate used by a Jew without washing it first. He
also forbade you from wearing the dress of the
Jews.
“Buhari, all your actions are fake. You are lying to
the people, collecting their money and saying you
will free their children and you know you are
lying.
“Buhari, Buhari, your people will soon betray you
for all this lies.
“I am talking to you Buhari, sit back and think
carefully. It is not this small Shekau that is
disturbing you. No. It is Allah that is doing
everything for us, continue and see.
“You deceived the people and you think you are
doing the right thing.
“Continue and see, one day you will not even be
able to go to the toilet and stool. But if you
repent, then you are a brother. Repent and follow
the Quran.
“Buhari let me advise you now, fear Allah.
“People of Chibok, let me tell you today, you still
have to prepare for a longer Bring Back Our girls
campaign.
“If you want your girls, bring back our brothers.
“(Bragging) This is the same Shekau and I am
good and healthy.
“The people of Kano you are in trouble. The
Sokoto people have betrayed Usman Danfodio
and they must repent.
“People of Kaduna and El-Zakzaky (detained
Shiite leader in Nigeria), you should repent. And
all of you, the followers of Tijjaniya (a sect in
Islam), you should repent.

Nigeria’s Minister for Information and Culture, Lai
Mohammed, has threatened to sue the Daily
Independent newspaper for libel over a news
report that the ‘Change Begins With Me’ concept
was stolen by the minister, and that the launch of
the campaign gulped N3.4 billion.
Mr. Mohammed has also threatened to sue Akin
Fadeyi, a creative artist and former head of
communications at Airtel Nigeria, and one Omo
Bazuaye for allegedly claiming that he stole the
campaign concept from them.
President Muhammadu Buhari on September 8
launched the national re-orientation campaign, in
Abuja, to reset the nation’s decaying value
system. But the event was immediately tainted
with allegations of copyright theft.
The Information Minister, through his lawyers,
Falana & Falana’s Chambers, said his reputation
has been badly hurt by these allegations.
The minister, through separate letters, gave the
newspaper and the duo of Mr. Fadeyi and Mr.
Bazuaye seven days to retract the “libelous”
statements or be ready to meet him in court.

The Minister of Information and Culture, Alhaji Lai
Mohammed, has hailed the global endorsement
which President Muhammadu Buhari received
from world leaders during his recent trip to the
US for the 71st session of the UN General
Assembly, and appealed to Nigerians to continue
to support the President.
In a statement issued in Lagos on Sunday and
signed by the SA to the Minister, Segun Adeyemi,
Lai said it was
particularly delightful to hear from world leaders
that President Buhari’s determined and
committed leadership as well as his integrity have
given Nigeria a positive image in the comity of
nations.
He said the global community’s appreciation of
the giant strides that have been made by
President Buhari’s Administration in fighting
terrorism and corruption, as well as in deftly
managing the nation’s economy at a time of
global economic downturn, is an indication that
the Administration is on course in its quest to
ensure a better life for the people.
”These three areas (economy, security and the
fight against corruption) are the priorities of the
Buhari’s Administration, and its efforts have not
gone unnoticed globally, despite the attempts by
naysayers to pull the wool over the eyes of
Nigerians. World leaders including US President
Barrack Obama, UN Secretary-General Ban
Ki-moon, French President Francois Hollande and
Switzerland’s President Johann Schneider-
Ammann all took turns to extol President Buhari’s
leadership.
”This should be a source of hope and pride to
Nigerians, who have borne the brunt of the
difficulties associated with the current economic
downturn as well as the country’s negative global
image in the past. While thanking Nigerians for
their perseverance, there is no doubt that by
continuing to give their unalloyed support to the
President, they will be ensuring that these tough
times will not last,” Alhaji Mohammed said.
He said the fact that the President was able to
highlight and seek a global rallying point on
critical issues issues during his trip will have a
positive effect on the country.
”The President sent ‘a clear and direct message’
to world leaders on such issues as poverty,
climate change, terrorism, plight of IDPs arising
from Boko Haram activities, diversification of the
economy and the creation of enabling
environment for Foreign Direct Investment in
Nigeria.
”The timing of the President’s message and the
platform in which he highlighted those issues
could not have been more apt, and this will
undoubtedly complement the Administration’s
efforts at tackling those key issues,” the Minister
said.
He also expressed the optimism that the country
will soon begin to reap the benefits of the US-
Africa Business Forum and the meeting with top
Nigerians professionals, which took place on the
sidelines of the UN General Assembly.

The federal, states and local governments have shared N2.53 trillion as proceeds of revenues from the Federation Account from January to July. The figures, according to the News Agency of Nigeria (NAN), were derived from documents obtained from the Federal Ministry of Finance, showing that the total revenue generated for the months under review was N2.73 trillion. However, deductions were made for cost of collection to Nigeria Customs Service (seven per cent); Federal Inland Revenue Service (four per cent) and the Department of Petroleum Resources (four per cent). The revenue is usually shared in arrears; for example, revenue generated in January is shared in February; thus, the revenue shared between January and July was actually generated between December 2015 and June 2016. In the months under review, the Federal Government alone received a total of N1.1 trillion; states got N727.5 billion and the local governments got N544.9 billion. This was shared based on the formula of the Federal Government receiving 52.68 per cent of the amount generated, states, 26.72 per cent and local governments, 20.6 per cent. Also, oil- producing states shared an additional N148.1 billion based on the 13 percent derivation. The revenue shared was the mineral earnings from the Nigeria National Petroleum Corporations (NNPC) and DPR and non-mineral revenue from Customs and FIRS. Additional revenue came from Petroleum Profit Tax, Import Duty, Exchange gains and NNPC refunds. Also, in the month of May, the sum of N1.5 billion, being excess bank charges, was recovered into the Federation Account and shared among the three tiers. To break it down, in January, N417.1 was shared and the Federal Government received N180.3 billion; states, N113.5 billion and local governments, N85.4 billion while N208.2 was shared as derivation revenue. In February, N370.3 billion was shared and Federal Government received N155.4 billion, states N104 billion and local governments N77.8 billion. N345.1 billion was shared in March with the Federal Government taking N144.5 billion, states N96.4 billion and local governments, N72.1 billion. Oil-producing states also got an additional N23.2 billion. In April, N306 billion was shared and the Federal Government received N126 billion; states, N86.9 billion and local governments, N64.7 billion, while N20.1 was shared to oil-producing states as derivation fund. May recorded low revenue as only N289.4 billion was shared. The Federal Government got N118.9 billion; states, N83.7 billion and local governments, N62.2 billion. Also, N16 billion was shared as derivation revenue to oil-producing states. In June, N311.5 billion was generated and Federal Government took N129.7 billion, states received N89.1 and local governments made N66.4 billion and as usual, 13 per cent derivation revenue of N17 billion was shared to oilrich states. Based on the data, N691.7 billion was shared in July. This has been the highest amount generated in a month since the beginning of the year. From the amount, Federal Government received N255.6 billion, states, N153.9 billion and local governments, N116.3 billion. The sum of N20.9 billion was shared among oil-producing states. N150 billion has also been given in the last three months to state governments under the Fiscal Sustainability Plan of the Federal Government to enable them to pay salaries. However, not all states are benefitting from it as some have decided not to participate due to their buoyancy.

Lagos lawyer, Femi Falana, has kicked against
suggestions that Nigeria should sell off its national
assets to raise funds for the country’s ailing
economy.
Nigeria’s business mogul and Africa’s richest
man, Aliko Dangote, had suggested that the
federal government should sell off some national
assets like the multi-billion dollar Nigeria Liquefied
Natural Gas Limited, NLNG, and use the proceeds
to pull the country from the current economic
recession.
“If I had challenges in my company, I would not
hesitate to sell assets to remain afloat, to get to
the better times. It doesn’t make any sense for
me to keep any assets and then suffocate the
whole organization,” Mr. Dangote, who is the
chairman, Dangote Group, told CNBC Africa.
“We have a lot of assets to sell. We can sell part of
the joint ventures, or part of the shares. My
suggestion before was that they should even sell
100 percent of NLNG. I don’t think government
should be in any business of investing in sectors
like LNG.”
Mr. Dangote’s suggestion, backed by notable
figures like Senate President, Bukola Saraki, and
Governor of Central Bank, Godwin Emefiele, has
generated intense debates among Nigerians.
Mr. Falana told PREMIUM TIMES, Thursday, that
the suggestion was “in total conflict with section
16 of the (Nigerian) Constitution which has
prohibited the concentration of the nation’s
wealth in the hands of a few people or a group.
“Indeed, by virtue of section 44 of the
Constitution, the nation’s natural resources shall
be held in trust for the Nigerian people by the
federal government.”
Falana said that senators would have been
expected to kick against Dangote’s suggestion,
since they had sworn to protect the constitution.
“But for selfish considerations, a few legislators
who may be queuing up to participate in the
purchase of the nation’s assets are not prepared
to defend the Constitution.
“If the senate is genuinely desirous to contribute
meaningfully to the debate on the economy, it
should, as a matter of urgency, propose a
substantial reduction in the jumbo emoluments of
federal legislators which are said to be the highest
in the world.”
Falana said the country’s privatization
programme in the past was discovered to be a rip
off on the nation and the people, but that nothing
was done about it, despite a senate resolution,
under the leadership of the then senate
president, David Mark, that the government
should recover such assets.
President Muhammadu Buhari’s administration
could still implement the resolution of the senate
for the interest of the national economy, Mr.
Falana said.
The lawyer advised the government to also go for
the official quarters that he said were “illegally
sold” to the then Chief Justice of Nigeria, Katsina-
Alu, the then Senate President, Mr. Mark, and the
then Speaker, House of Representatives, Dimeji
Bankole.
“It is on record that whereas the federal
government had spent billions of Naira to
renovate the properties, each of them was
fraudulently sold for about N50 million,” Mr.
Falana said.
“Many other properties of the federal government
in Abuja, Lagos and other cities were undersold to
many public officers and their cronies. Apart from
the recovery of the NET building in Lagos which
was sold to the father of a legislator for N4 billon
instead of the market value of N75 billion, the sale
of the other 531 properties of Nitel and other
agencies of the federal government located in the
various parts of the country have not been
accounted for.”
Mr. Falana said, instead of selling the nation’s
remaining assets, the federal government could
liquidate “over N5 trillion” of toxic debts and also
recover huge funds that were given as bailouts to
banks and other private companies during the
eras of Sanusi Lamido and Chukwuma Soludo as
CBN governors.

Guinness Nigeria has revealed that it was forced
to take a loan from parent Diageo, related to
dollar shortages in the country. The
announcement came even as the unit reported
its first full-year pre-tax loss in 30 years.
Guinness Nigeria said it took a $95m loan to help
cover dollar shortages, caused by the sharp drop
in prices of crude oil. The Nigerian economy is in a
recession, and in June, the country’s central bank
allowed the naira to float free – a move that has
seen it lose almost 40% of its value against the
dollar since.
The pressure on imported goods meant the unit’s
currency requirements were much bigger than
what it could source locally and from exports,
forcing it to turn to Diageo for the loan (priced at
3-month Libor plus 4.75%). The company also
said it will change strategy to avoid such issues
again in the future, noting: “Longer term we
intend to source raw materials locally”. It will also
begin locally producing spirits in 2017.
Guinness Nigeria also recorded a pre-tax loss of
2.35bn naira for the year ending June 2016,
compared to a profit of 7.8bn naira last year.
Revenue was down 14% to 102bn naira due to
lower consumer demand and currency
fluctuations, while operating profit was down to
4.4bn naira (from 15.7bn naira).
Guinness said it would lower its dividend to 0.50
naira, from 3.20 naira in the preceding year.

Until a few years ago, Africa Rising was a
dominant theme in conversations about the
global economy. That enthusiasm has since
cooled, so that in newsrooms and think tanks and
conference panels, “Africa Rising!” has given way
to a more questioning “Africa Rising?”
While some of that pessimism may be justified,
we do not have the luxury of distracting ourselves
with lamentations about our current
circumstances. Instead of hoping for commodity
prices to rise, African countries should seize the
opportunities that these times present — not
least here at today’s U.S.-Africa Business Forum
— to lay a foundation for the kind of economic
growth that transforms the lives of our people.
One of our biggest challenges during the boom
years was that we failed to convert the benefits of
high commodity prices into more jobs and
significant improvements in standards of living.
Hence the great debate, during those years,
about how to ensure that the growth became
“inclusive.”
Now that we are face to face with the
vulnerabilities somehow hidden during the years
of plenty, we should turn away from the unhelpful
habits of the past and chart a new course. Since I
signed the 2016 budget into law in May, Nigeria’s
Ministry of Finance has released more than 400
billion naira for infrastructure spending — more
than the total amount spent in 2015.
In the face of dwindling oil revenues, we are
turning to debt. We have begun raising a $1
billion Eurobond, our first in three years. We are
also raising debt from the World Bank, the African
Development Bank, the Chinese Ex-Im Bank and
other development finance partners.
Unlike in the past, when borrowed funds were
frittered away on unproductive ventures, we will
ensure their investment in the revival of stalled
road, rail, power and port projects, and in
agricultural initiatives that will significantly boost
domestic production of food. For far too long we
have under-invested in infrastructure — the most
critical element for creating sustainable economic
growth. The net effect: an avoidably high cost of
doing business in Nigeria.
But even more important than what the
government is able to spend is the limitless
investment potential of the private sector. This is
why one of our main priorities is creating an
environment in which private-sector capital can
thrive. We are in particular using Public-Private
Partnership models to support game-changing
private-sector projects in power, refining, gas
transportation and fertilizer production.
We are also putting in place measures to ensure
that monies intended to revamp our
infrastructure do not end up in the pockets of
corrupt officials and their collaborators. Already
we are investigating the theft of several billion
dollars in public funds by the previous
administration. We are not only bringing these
corrupt officials to justice, we are also setting up
systems to make it impossible for such a grievous
abuse of public trust to happen again. And of
course, we are as committed to playing by the
rule of law as we are to accounting for every naira
and recovering them for our treasury. These were
funds meant to build roads and railway lines and
hospitals and schools, and to equip our military —
which has for the last seven years been fighting
one of the deadliest terrorist groups in the world.
In that regard, we are already seeing the positive
results of our anti-corruption efforts. Long starved
of both materiel and morale by the corruption in
the military’s upper echelons, our reinvigorated
troops have now put Boko Haram permanently on
the back foot. Some of the more than 2 million
persons displaced by Boko Haram have started
returning to their homes. Just last week, the
people of Nigeria’s northeast celebrated their first
incident-free Eid in years.
Our troops have rescued thousands of men,
women and children trapped in areas held by
Boko Haram. To meet their urgent humanitarian
needs, we are working with the United Nations
and other partners to provide food, medical help
and shelter. We will strive to ensure that no
victim is left behind, including the 219 Chibok
girls who have, since their abduction in April
2014, served as a global symbol of the war
against Boko Haram and a reminder of the horrors
that it has inflicted on innocent Nigerians.
Even though the times are still dire, our economic
recovery plan is already showing positive results.
Investment’s share in gross domestic product is
at its highest since 2010. Inflation is slowing;
manufacturing confidence is rising. People are
seeing and seizing opportunities to make money
catering to the needs of Africa’s most populous
country. Finally, our Social Investment Program —
the most ambitious in Nigeria’s history — will kick
off this month. In its first year it will provide cash
transfers to 1 million of our poorest people, hot
meals to 5 million primary-school children, cheap
loans to more than 1 million artisans and traders,
and job opportunities in health care, agriculture
and software and hardware development for half
a million young people.
The journey ahead remains long and difficult. Our
double-digit inflation, currency turmoil and
downgraded ratings will not vanish overnight. We
also know that the current recession is partly
driven by the production outages in Nigeria’s
Delta region, and we are confident that growth
will accelerate as problems in that region are
resolved.
But the real story here is not the challenges,
which are all too visible, but the opportunities. We
have learned the necessary lessons. We will
ensure that Nigeria does not slip back into a lazy
and dangerous dependence on the price of crude
oil. We will continue to insist on transparency and
accountability in the use of government funds.
And we will build an economy that prioritizes the
ease of doing business and investing, and that
thrives on the entrepreneurial energy and
ingenuity of our people.
To achieve these objectives, Nigeria needs robust
and reliable partnerships such as we have with
the United States. This is why I value the
Commercial and Investment Policy Dialogue that
we have just launched, and which we shall
announce at today’s U.S.-Africa Business Forum.
The months ahead will show not only that Nigeria
is on the rise, but that this “Rising” is real and
lasting — one that touches not just the statistical
databases, but the lives of the people who elected
us to deliver positive change.

President Barack Obama of the United States
passed vote of confidence on the administration
of President Muhammadu Buhari.
A statement by Femi Adesina, special adviser to
the president on media and publicity, quoted the
US leader as making this statement during a
bilateral meeting on the sidelines of the 71st
edition of the UN General Assembly.
Obama, the statement noted, described Buhari as
a man of “integrity and honesty,” and said his
administration would assist Nigeria within the
short period it has left.
The 44th president of the US will be bowing out
of office in January after serving two terms.
“We have confidence in your leadership. There
are some difficulties you face, but this
administration is willing to assist in the short time
we have left,” Adesina quoted Obama as saying.
“You have made real progress in defeating the
brutal organisation called Boko Haram, and that
was achieved because of your leadership.”
Obama also reportedly offered a hand of
fellowship to Nigeria “in the final and
comprehensive defeat of Boko Haram, resolution
of the Niger Delta crisis, which would help ramp
up oil production and increase revenue, resolving
the humanitarian crisis in the North East,
recovering stolen money, and revamping the
economy”.
He described Nigeria as a big and important
country in sub-Saharan Africa, and said his
country looked forward to a framework for
sustained partnership between the two nations.
Earlier, Buhari assured Obama of the progress of
his administration, and the efforts being taken
towards resolving the economic crisis.
“We are making definite progress on how many
factions of the militant groups exist, their
leadership and operational basis, and we have
equally sought the cooperation of the oil majors,”
Buhari said.

As Nigerians continue to lament over the ongoing
hardship caused by economic recession, Special
Adviser to President Muhammadu Buhari on
Political Matters, Senator Babafemi Ojudu, has
said even minister and other appointees of the
president are not left out of the pains.
He said a lot of ministers, special advisers and
chief executive officers of government agencies
and parastatals are sacrificing for the betterment
of the nation.
Ojudu likened the current situation of the political
appointees to that of the ordinary Nigerian in the
face of the economic crisis in the country.
He said: “Here is my office. People tell me what
this office was like when I was not here. The air
conditioners you are seeing, I had to buy them
myself. These bulbs you are seeing, I bought
them myself. The TV inside, I bought it myself.
The government couldn’t even do it for me. I
have no personal staff, no official car.”
On why it is taking the present government to
reduce the number of aircraft in the Presidential
fleet, Senator Ojudu said, “Again, you should
know the workings of government. Sometimes, it
could be very slow to take such decision. You first
want to know how many you have. How
serviceable they are, what use would you want to
put the ones available, all of that decision.
“The President has said I want to provide free
food for students, it’s taking six months to do
procurement, to go through all of the steps in the
civil service. If you don’t do them, in future when
you are not there, they can come and pounce on
you and say you contravened government
processes.
“So, some of these things you cannot blame on
the President or the vice president. There are laid
down procedures for doing this. What you cannot
say is that since he got there, he has made
approval for the purchase of new aircraft.
“He cannot use more than one, neither could the
vice president use more than one but he has
insisted that something must be done but the
system is still there.’’
Asked whether the aircraft would be sold
eventually, Ojudu said: “Of course, he has said it
many times over that look, get buyers for those
that are not of use to me. Those ones that will be
of use to the Airforce, give it to the airforce. But
as I said, government processes move so slow
and that’s why, for example, we are requesting
for some powers to enable him take decisions
quickly.”
Recall that The Minister of State for Education,
Anthony Anwukah, has admitted that Nigerians
are truly suffering as a result of the current
economic recession.
According to him, most products consumed in
Nigeria were imported, adding that Nigerians
failed to “swiftly” adjust to the present economic
recession in the country due to their “bloated”
lifestyle.

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LAGOS— A FORMER presidential candidate, Prof Pat Utomi, has said the current economic crisis would have been avoided by the Federal Government, if proper policy choices were made, noting that the crash in oil prices was not enough to have resulted in recession. He noted that if government had borrowed money against its assets, devalued early and applied intelligent leadership, Nigeria would not have been at a crossroad now. Utomi, who said this, yesterday, in Lagos at the 2016 Men Summit convened by the Catholic Men Organisation of the Holy Family Catholic Church, FESTAC Town, said the collapse in oil prices ought not to have plunged the country into crisis, if the authorities had acted rightly. He also took a retrospective look at most factors that led to recession in Nigeria and submitted that the attitude of the present government, in the face of the dwindling oil prices, scared investors away from the country.

His words: ‘’There is what we call the big man hamburger quotient which economists use to evaluate exchange rate. Macdonald hamburger in London is exactly the way it is in New York. How many naira will it take to produce this hamburger in Lagos and how many pounds will it exactly cost to produce it in London? This is what is called the big man hamburger quotient. “At that time, the difference in Nigeria’s nominal exchange rate was there and because the major revenue was oil, whose prices had gone down, all that an intelligent leadership needed to do was to borrow against some assets, ensure they continue to fund things, use strong determination to make sure people don’t buy more than what they don’t need because that is part of what happened and ensure that there is confidence in the system so that people will know that the people in charge know what they are doing.

“That would have made people to start transacting normally. But they said how can we devalue? We will not devalue, people who have money and who wanted to bring in money felt that these people are about to make decision that might jeopardise our money tomorrow. So they didn’t bring it. Even oil companies were not bringing back their receipts and Nigerians who were exporting were not bringing back, so there was a major crisis. Instead of the thing devaluing by 6 percent, it went down to what we are seeing. So it is self-inflicted and quality of leadership.’’

Responding to a question on the fete that befell defunct Bank PHB, Utomi said:’’ A country where justice is abused. The Yardaus wanted to steal the bank, they got CBN to devalue the bank so they can get their foreign partners and take over the bank. That was what happened. Regulatory functions are well abused in Nigeria and it is still going on.’’

No fewer than 41,161
graduates have benefitted
from the Graduate Internship
Scheme, GIS, of the Federal
Government and supervised
by the Ministry of Finance.
The scheme’s facilitator in
Ogun, Abubakar Orumah,
made the disclosure in an
interview with the News
Agency of Nigeria, NAN, while
reviewing the success of the
programme in the state.
The GIS commenced in
October 2012 as a social
safety net component of
Subsidy Reinvestment and
Empowerment Programme,
SURE-P.
It is implemented by the
Federal Ministry of Finance
with a mandate to provide
short term employment for
graduates.
Mr. Orumah said that 60
participants graduated from
the programme in Ogun on
September 3 after 12 months
of internship and were
presented with certificate by
the Ministry of Finance.
He said the certificate was in
recognition of the
participants’ skills during the
programme.
According to him, the scheme
is initiated by government to
assist young graduates to
become employers rather
than seeking for job.
“So far, 41,161 graduates
have benefitted from the
scheme with 68 per cent
males, 31 per cent females
and 1 per cent vulnerable.
“Over 35,000 have exited
the scheme, with thousands
of them having secured jobs;
many have secured credit
facilities and grants to
expand businesses they set
up using GIS stipends.
“Many have set up
cooperative associations,
some of which have
transformed into SMEs.
“The programme presents
an opportunity for graduate
interns to gain employment in
organisations where they
worked and in other
establishments or self-
employment,” Mr. Orumah
said.
He noted that the scheme
had demonstrated high
prospects for job creation
and social protection of the
youth since its inception.
He also said that Nigerian
youth had proven that no
amount of pressure, threats
and inducement could derail
their resolve for change
when they were focused.
Mr. Orumah, who is the
Director of Abusanigo Global
Concept, a consulting firm
based in Abuja, said that the
changes currently being
witnessed in Nigeria was a
product of the resilience of
Nigerian youths.
He urged the participants to
use the opportunity of the
internship period to face the
challenges and attendant
curiosities in life.
“It has also brought you to
a crossroad where you are
now able to ask yourself the
question of who you have
become through the process
of the GIS.
“And how that has prepared
you for where you want to
be in future,’’ he added.
He commended the public,
private and non-
governmental organisations
that had over the years
demonstrated their
commitment to Nigerian youth
by agreeing to partner with
the scheme and host
graduates for 12 months.
Mr. Orumah urged the
graduates to join hands with
the government to achieve
its task of national
development.
He assured that government
was working hard to ensure
that unemployed graduates
acquired skills which would
make them employers of
labour.
Mr. Orumah added: “As long
as thousands of graduates
still remain unemployed, I
assure you that government
will continue to improve the
capacity of the scheme to
absorb more applicants.
“My hope is that the GIS will
be yet, another example that
Nigeria will sell to the world
as a way out of graduate
unemployment.

President Muhammadu Buhari has left Abuja for New York, United States ahead of the 71st session of the United Nations General Assembly.

The President who departed Nnamdi Azikiwe International Airport at about 11 o’clock Saturday morning was seen of by Minister of FCT MUhammad Musa Bello and other senior government officials.

The President will also attend series of high level meetings of significant interest to Nigeria and lead discussions at the United States – Africa Business Forum devoted to Investment opportunities in Nigeria.

In the same vein, Minister of Foreign Affairs Geoffery Onyeama, at a media interactive session he held at the United Nations Headquarters, New York revealed to journalists that the President will signs the Paris Treaty on Climate during the cause of the 71st UN General Assembly .

Some of the world leaders including President Barrack Obama of America & his Chinese counterpart had already signed the Treaty.

According to the Minister, top on Nigerian UN agenda during the General Assembly is to engage African Union and other countries to work towards the reform of the United Nations, to be more democratic and responsive to the needs of the world.

In addition to the wave of change, Nigeria will like to propose to the UN body to create an Agency dedicated for the youth.

As the UN prepares to elect a new Secretary General, Onyeama assured the international community that Nigeria will support a new Secretary General that will be Development and Africa friendly, as well as sympathetic to the course of Nigeria.

while responding on questions on investment, power and insecurity, the Minster said the government has established various security mechanisms to create attractive investment environment for would be investors.

He added that with the fall in oil price, Nigeria is looking into diversification of its economy towards agriculture and solid minerals.

It is expected that there will be a lot of investment opportunity for foreign investors during the US-Africa Business Forum, scheduled to take place next week in New York.

Nigeria has been invited as one of the focal countries whose economies search light is beamed on.

The Minister responded to various questions on poverty, migration, human right, terrorism & security ( BokoHaram), and other challenges the country is facing in retrieving the Abacha’s loot and other Nigeria’s assets stashed abroad.

Onyeama said Nigeria will host a High level side event on Climate Change, to showcase Government’ efforts in the Ogoni clean up

President Buhari is being accompanied by Governor AbdulAziz Yari of Zamfara State and his Lagos State Counterpart Akinwunmi Ambode, Ministers and Some members of the National Assembly.

The Minister of
Finance, Mrs Kemi Adeousn,
has assured Nigerians that
the current economic
recession the nation was
experiencing will not be
prolonged.
She gave the assurance on
Friday in Abuja while
addressing a news
conference.
She said that there was a
strategic plan by the
administration to see that the
recession ended soon and
also ensure that the
economy recovered fully.
“We have a strategic plan
that will take us out of the
recession we have found
ourselves in; we want to
make sure the recession is
as short as possible
because we do not want a
prolonged recession.
“From what we are looking at
we do not think that it will be
a prolonged recession; we
think that some of the
initiatives that we are
working on will now begin to
bear fruits.
“We are on course and are
confident that the plan we
have put together will work
and put the economy back on
track.
“It is a long term plan that
would reposition the economy
so that we do not go into this
boom and burst circles that
are driven by the oil price.
“The economy has to be
more resilient than that so
that we do not find
ourselves back where we
are.’’
She said that although there
was no specific date to end
the recession, the fact that
there were measures in
place was enough indication
that the end of the recession
had begun and that Nigeria
would come out stronger.
Listing some of the measures
the administration had taken
to address the situation, she
said that since the budget
was released in May, over
N420 billion had been
released and cash backed
for capital projects.
She said that the largest
sector that the money was
spent on was Power, Works
and Housing.
She also said that a lot had
been done in the defence
sector to rebuild the
capability of the army,
especially on efforts in the
North East.
“Agriculture has received
significant funding because
of the time sensitivity of
agriculture and because of
the fact that food prices
were rising, we needed to
intervene so that we could
get food prices down.
“There is activity resuming
on roads, power projects
and health projects and we
have released money to
water resources and solid
minerals.’’