Market Update for Monday 9 Nov 2020 (NSE on turbocharged steroids):
https://www.nairaland.com/6244984/market-update-nigerian-stock-exchange#95872155

VOLUME DRIVERS
Zenith Bank traded about 70.22mn units in 1 deal valued at N1.66bn. First Bank of Nigeria Holdings traded about 67.65mn units of its shares in 549 deals valued N474.57mn. Access Bank traded about 58.02mn units in 497 deals valued N500.23mn.

SOURCE (abridged): http://stocksng.com/equity-market-opens-the-week-with-n641bn-gain/

PERCENTAGE LOSERS
NCR Nigeria Plc led price decliners as it shed 10% of its price to close 1.80 from previous close of N2. Learn Africa and Conoil among other decliners also shed their share prices by 8.70% and 6.30% respectively.

PERCENTAGE GAINERS
Oando, Northern Nigeria Flour Mills (NNFM), WAPCO (Lafarge) and Mutual Benefit Assurance all grew their share prices by 10% respectively. Sterling Bank, Cutix Plc and Fidelity Bank among others also grew their share prices by 9.89%, 9.83% and 9.77% respectively.

SUMMARY
Equity market opens week with N641bn gain: 9 November 2020.

Nigerian equity market on Monday 9 Nov 2020 closed on positive note as the All Share Index appreciated 3.96% to settle at 32,243.05 points, from previous close of 31,016.17 points. Investors gained N641bn as Market Capitalization grew 0.90% to close N16.848trn from previous close of N16.207trn.

Aggregate 636mn units of shares were traded in 7,210 deals valued N8.24bn. Market breadth closed positive as 49 equities gained, while 11 declined, in share prices.

A 10-year-old boy, Ifeanyi, was on Saturday thrown into a fire for allegedly stealing a small measure of uncooked rice in a market at Inikiri Benard village, Effium community, in the Ohaukwu LG Area of Ebonyi State. PUNCH Metro gathered that the lad’s mother was late, while his father was mentally-challenged.

A community source said, “The boy was thrown into a fire by two traders who accused him of stealing rice from a shop at the market to cook for himself and his father.”

Chairman of Human Rights Defenders, Ebonyi State chapter, Mr Sam Nweke, condemned the inhuman act meted out to the kid. He said, “HURIDE got a call from one Mr George Etamesor, on the grave abuse of this poor boy. This was because he was caught trying to steal some rice in their village market. They tied him up, threw him into the fire in a refuse dump in the market and allowed him to roast like a goat.

“The perpetrators are from the village. After committing this evil and seeing the critical condition of their victim, they still abandoned him to groan to death. It took the intervention of sympathisers to rush him to AMURT Hospital in Effium. But due to the severe nature of the injuries, boy was denied treatment. Efforts were thereafter made to take him to the Alex Ekwueme Federal Teaching Hospital, Abakaliki, where he is currently struggling between life and death.”

Nweke added, “When we inquired from the perpetrators why they went that far in maltreating the boy, they said he had the habit of stealing cassava, yam and others. So this time, they caught him stealing their rice and they decided to teach him a lesson so that he would not come back to steal their food again.

“They said it was not their intention to burn his whole body. They said they only tied him up and after beating him, they tried to roast his toes in the fire, but because he was struggling, he slipped off their hands and fell into the fire and got burnt beyond their expectation. We have reported the incident to the police.”

The state Police PRO in the state, Mrs Loveth Odah, said though she was aware of the incident, the police had yet to receive an official complaint on the matter. She said, “I heard about the ugly incident as a person; it is painful. But the command has not been officially communicated.

“We wanted to arrest those who did this evil thing to the small boy, but the attitude of the human rights group which drew my attention to the incident, is not encouraging. The HURIDE people told us we should not arrest them for now because they want them (the perpetrators) to first take care of the boy’s medical bills in the hospital. I don’t know why they keep doing this.”

SOURCE (abridged): https://punchng.com/traders-burn-10-year-old-boy-for-allegedly-stealing-food/

Inspector-General of Police Committee on EndSARS Protest Damage Assessment has said about 100 AK-47 rifles and 2,600 pieces of ammunition are missing as a result of attacks on police formations in Lagos State by hoodlums who hijacked protests.

The committee stated that 37 police formations were attacked during the widespread violence in the state while 367 vehicles, including 10 Armoured Personnel Carrier, saloon cars and Hilux vans were burnt. Chairman of the 10-man committee, CP Yaro Abutu, who disclosed this on Saturday in an interview with our correspondent, said the team was taking inventory of property destroyed in police facilities across the country.

Sunday PUNCH learnt the committee is expected to submit its report to the IG, Mohammed Adamu, within 3 weeks. Abutu lamented that it was unfortunate the destruction happened towards the end of the year “when there is a surge in criminality all over the country.”

Abutu said, “We are taking a tour around the 17 states where burning of police facilities and killing of police personnel occurred. Since Lagos is the epicentre we decided to come to Lagos first. 37 police stations were attacked in Lagos and about 30% of police infrastructure in the state has been crippled.

“Also, a lot of arms and ammunition were carted away. We are still counting and collating. In some police stations, 15 to 30 firearms and a number of ammunition were stolen. So far from our preliminary report, about 100 pieces of AK-47 cannot be accounted for and up to 2,600 pieces of ammunition are missing. This is when criminals become more aggressive whereas police equipment has been crippled. It is pathetic.”

The committee chairman urged hoodlums in possession of the arms and ammunition to return them to the nearest police station or community leaders, noting that 3 firearms were returned to some police formations on Friday.

He added, “One of them was returned to the Area Commander Ajah, ACP Gbolahan. It was found somewhere and the community alerted him. They (policemen) went to pick it. If the community sees it (firearm) and refuses to report, the weapon will still be used to unleash terror on the population. That is why we are appealing to community leaders, youths and other stakeholders to be on the lookout.”

SOURCE (abridged): https://punchng.com/endsars-hoodlums-looted-100-ak-47-rifles-in-lagos-police-stations-force-committee/

Investors in the Nigerian Stock market are surely having good returns, amid prevailing macro-disruptive global financial market

WHAT WE KNOW
Data from Bloomberg reveals that the Nigerian Stock Index ranks 3rd globally with respect to stock index performances; YTD performance has improved to 13.43%. In October alone, investors made a gain of about N1.934 trillion, as the Nigerian bourse recorded its best monthly gain since 2018.

Emmanuel Orji (an Emerging market/Fixed income trader) in a phone chat to Nairametrics, gave detailed insights into why it seems the Nigerian Stock Market is receiving significant cash flows in relation to low yields prevailing in the Nigerian debt market;

“It’s no surprise seeing the Nigerian equities market among top 3 best performing indexes year to date, after the outlier performance we had in October. The NSEASI was up 13.79% MTD in October, its biggest monthly gain since January 2018, which was largely driven by robust system liquidity coupled with low yields in the fixed income space.

“Aside massive liquidity inflow in October (c.NGN1.7 trillion from OMO maturity repayment and coupon payment), reduced supply at the October Bond auction, coupled with closing rate of 0.98% (1-yr paper) at the NTB auction further strengthened the bullish momentum,” Orji said.

Abiodun Keripe (MD, Afrinvest Research) in an exclusive interview with Nairametrics also spoke on key macros boosting the Nigerian Stock Exchange. “Nigeria now ranks 3rd best-performing stock market in the world out of a basket of 93 indices tracked by Bloomberg. This performance is majorly driven by local investors, given the low yield environment and continued, albeit slow-paced and uneven, rebound in economic activities which has bolstered 3rd-quarter earnings of major Corporates on the NSE.

“This performance is remarkable in context of rising concerns over a 2nd wave of COVID-19 and prospects of weaker external position for the Nigerian economy. It is interesting to see that stock prices have recovered to pre-COVID-19 levels within a short duration while external conditions remain fragile. CBN is not yet out of the FX conundrum, and lower-for-long oil prices remain a key concern.

“We expect strong Naira liquidity to keep fueling equities, even as additional 1% allocation from PFAs can lift stocks higher. However, we note the market may be heating up ahead of strong rebound in the general economy.”

THE BOTTOM LINE
Low yield environment and other market conditions prevailing in the Nigerian economy have triggered significant buying interest in Nigerian stocks at record levels, despite seeming disconnection with strengthened geopolitical uncertainty and resurgent COVID-19.

SOURCE (abridged): https://nairametrics.com/2020/11/04/nigerian-stock-index-ranked-3rd-best-performing-index-globally/

Passenger feet are seen on dashboards everyday, but would that be the case if we understood the real dangers associated with ‘resting their legs’?

Engineers and data scientists at the Road and Maritime Services Crashlab have recently demonstrated this dangerous trend in car accidents at the purpose-built facility located at Huntingwood in Sydney’s western suburbs. The conducted crash simulation shows a Holden Commodore vehicle impacting the wall at 70km/h, which deploys the front passenger airbag, pushing the dummy’s feet back into her face.

Closer inspection of the simulation shows that it is actually the seat belt that causes bulk of the damage. Having the feet up on the dashboard has caused the dummy to slip down underneath the belt, which means the internal organs have borne the brunt of impact.

According to Dr John Crozier, possible injuries with such events include “things like a ruptured bowel, a torn aorta and the spinal column itself can be torn apart.” The trauma surgeon also added that “Injuries like that will paralyse [and] may well kill.”

Putting your feet on the dashboard is dangerous and potentially fatal. Upon impact, passenger frontal airbags are deployed from inside the dashboard and if your feet are up at the height of the dash your legs will be pushed upward rather than keeping your legs and lower body secured in a seated position.

Experts says that in this simulated crash had the dummy’s feet been resting on the ground she most likely would have walked away un-injured. But in 2016 alone, more than 400 passengers were admitted to hospital with injuries associated with putting their feet up on the dash. Statistics also show females most at risk, particular on family road trips as men still do the majority of the driving.

Crashes are sometimes unavoidable due to driver mistakes. Vehicle structure, seat belt systems and airbags are all designed to provide crash protection but will only serve their purposes as intended, if the person in the car is in an upright position.

Next time you see anyone's feet up on the dashboard remind your loved ones to put them back on the floor, and always wear your seatbelt over your hips and across your collarbone to stay as safe as possible.

SOURCE (abridged): https://www.mynrma.com.au/cars-and-driving/driver-training-and-licences/resources/feet-on-dash

Apex Igbo socio-cultural organisation, Ohanaeze Ndigbo, has raised concerns over inhuman and degrading treatment meted to innocent Igbo in Oyigbo, Port Harcourt, Rivers State, by the Nigerian military. President-General, Ohanaeze, Chief Nnia Nwodo, in a statement titled: ‘The degenerating situation in Oyigbo, Port Harcourt’, regretted that the situation was threatening the cordial relationship existing between the Igbo and “our kith and kin in Rivers State.”

The statement read in part, “Ohaneze Ndigbo Worldwide is seriously disturbed about the degenerating situation in Oyigbo, Port Harcourt, Rivers State. The misdemeanour of some rampaging youths of both South-South and South-East origin, and the inciting, mindless and provocative statement that was made from abroad by the leader of IPOB, which inflamed passions on all sides, has landed us in a regrettable situation. Pictures on the social media portray very inhuman and degrading treatment meted to innocent Igbo in Oyigbo.

“Ohaneze regrets that the friendly and cordial relationship, which existed between the Igbo and our kith and kin in Rivers State is threatened by this development. So also is the threat to our solidarity with PANDEF and the entire people of the South-South region of Nigeria.”

It added, “We are in consultation with the Chairman of the South-East Governors’ Forum, Dave Umahi, who has kindly volunteered to arrange a meeting between us, Igbo leaders, and the Governor of Rivers State to arrest further drift of this dangerous development. Innocent Igbo in Rivers State, who are caught in between this sad development and whose lives and livelihood are threatened by it are assured that help is on the way and that Igbo leaders will never abandon them.”

SOURCE: https://punchng.com/alleged-oyigbo-killings-threatening-igbo-rivers-relationship-ohanaeze/

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Farmers and other stakeholders in the agricultural sector have projected that the high cost of food in most parts of the country will begin to drop in few months time.

Farmers under the aegis of the All Farmers Association of Nigeria, as well as those of the Nigeria Cassava Growers Association of Nigeria, stated that going by the harvesting of various crops, the cost of some food items would soon fall. They told our correspondent in separate interviews that the current high cost of agro-produce was because the volume of farm commodities stored in warehouses were dwindling, among other reasons.

The National Bureau of Statistics confirmed the high cost of food in its recent Selected Food Prices Watch report. It stated, for instance, that price of rice appreciated in September 2020. This cost further increased in the succeeding month, based on findings from marketers and agro-dealers. “Average price of 1kg of rice (imported high quality sold loose) increased year-on-year by 39.07% and month-on-month by 2.87% to N516.13 in Sept 2020 from N501.71 in August 2020,” the bureau stated.

But farmers and other operators in the industry expressed optimism that cost of food would drop in about 2 months time. The National President, AFAN, Kabir Ibrahim, told our correspondent that food prices would crash, adding that some locations across the country had started witnessing the drop in food prices.

He said, “We know that prices will come down and in some places, the cost is gradually reducing, particularly in interior or remote locations where harvesting has commenced. I know that for maize, for instance, the price for a sack as is usually measured used to be between N17,000 and N20,000 but it is now going for about N15,000 in some locations. Price of rice is still high because farmers are harvesting now and have a lot of paddy. But the price is gradually coming down, especially in places far away from major city centres.”

Also speaking on a possible price crash in the cost of food items, the Coordinator, Nigeria Agribusiness Group, a body of industry experts and operators, Emmanuel Ijewere, said agro-produce stored in warehouses were depleting. He said this had also contributed to the high cost of food items across the country, but was quick to state that in few months the prices of food would drop.

Ijewere said, “At this time of the year, food prices are usually higher because we are approaching the stage of harvesting and the reserves stored in the previous year are dwindling. So you have this happening annually. However, in a few months time the prices of a lot of food items will be going down.”

On his part, the President, Nigeria Cassava Growers Association, Segun Adewumi, also admitted that food prices were on the high side in most cities and villages. “We are seeing some meaningful interventions by government, particularly through the CBN and based on this, we can project that cost of food items will start coming down in one or two months time,” he said.

Adewumi stated that interventions by the CBN in the rice, cassava and other value chains would no doubt help address the rising prices of food across the country.

SOURCE (abridged): https://punchng.com/expect-crash-in-food-prices-farmers-others-tell-nigerians/

Eager to mobilise enough supporters to cheer the Super Eagles to victory in their 2021 AFCON qualifier against the Leone Stars of Sierra Leone in Benin City, Governor Godwin Obaseki has decided to throw all gates leading to the main bowl of Samuel Ogbemudia stadium open.

The game, which is the first competitive match for the Super Eagles since the outbreak of COVID-19 pandemic, will take place on November 13, a day after the inauguration of Governor Obaseki and his Deputy Philip Shaibu for their 2nd term in office.

Speaking with The Guardian yesterday, the Chief Press Secretary to the Deputy Governor, Musa Ebomhina, said the governor decided to throw the stadium gates open to enable fans from Edo state and other neighbouring states give the Super Eagles the support they need to cage the visiting Leone Stars.

“This match means a lot for the government and people of Edo State,” Ebomhina said. “First, it is coming barely 24 hours after our inauguration on November 12. Our sport-loving governor has thrown the stadium gates open for everyone to be part of the celebration.”

Speaking further, Ebomhina, a member of the Local Organising Committee (LOC) of Edo 2020 National Sports Festival said: “The Super Eagles versus Leone Stars match is the first major competitive game to hold at the Samuel Ogbemudia Stadium since the complex was shut down in March due to the outbreak of COVID-19 pandemic.

"The governor wants the people of Edo state and other Nigerians to see the great work he did at the stadium. They will see some of the best sporting facilities, including the Video Assistant Referee (VAR). The VAR technology at the Samuel Ogbemudia Stadium is among the best anywhere in the world at the moment. It was installed long ago for the National Sports Festival. The Super Eagles won’t lack any form of support in Benin City on November 13.”

SOURCE: https://t.guardian.ng/sport/obaseki-throws-stadium-gates-open-for-eagles/

Ohanaeze Ndigbo and some church leaders have fixed December 27 for street rallies to campaign for Igbo presidency in 2023. They also said they had concluded arrangements to write the President, Major General Muhammadu Buhari (retd), the leadership of the All Progressives Congress and the Peoples Democratic Party to notify them of the need to zone the 2023 presidency to the region. They said the rallies would hold in Abia, Anambra, Ebonyi, Enugu and Imo states simultaneously.

The Ohanaeze Ndigbo Chairman in the Diaspora, Dr Nwachukwu Anakwenze, disclosed these to journalists in Awka, the Anambra State capital. He said, “Those we are considering for the presidential seat from Igbo are present and past governors, senators and House of Representatives members from the zone who are performers. We envision a Nigeria where leadership is based on the ability to work hard, where fairness reigns with a sense of direction and accountability to the various groups and for the common good of the country.

“It’s now the turn of the South-East to provide good leadership for the good of all Nigerians so as to move Nigeria in a positive direction.” Anakwenze noted that the Igbo would need the support of other regions to produce the next president. “We believe in alignment. We cannot get the presidency by ourselves, even if all the Igbo vote. We are already working with people from other zones and we are in talks with them already,” he said.

In a related manner, the President General of Ohanaeze Ndigbo, Chief Nnia Nwodo, will lead a delegation of the pro-Biafra group, Movement for the Sovereign State of Biafra, and other youth groups to meet with Buhari regarding the Igbo presidency in 2023. MASSOB leader, Mr Uchenna Madu, disclosed this on Friday at the Government House, Enugu, after a joint meeting with the governors of the region, leaders of thought, ministers and National Assembly members as well as traditional and religious leaders from the region.

Madu, who read a 10-point demand of the Igbo youths, had earlier demanded that the Ndigbo should be allowed to produce a president in 2023. “We demand that the South-East be given the opportunity to produce the president of Nigeria in 2023,” he said.

2023: IGBOS' INTEREST SUPERSEDES PARTY DIFFERENCES — OKOROCHA
Meanwhile, former Governor of Imo State, Senator Rochas Okoroch, says South-East political leaders have resolved to shelve their party differences to work for the interest of the region ahead of the 2023 general elections. Okorocha, who spoke on the sidelines of South-East leaders meeting held in Enugu on Thursday night, disclosed that Igbo leaders had also taken a decision to properly mentor and empower the youths in readiness to take over from them.

The ex-governor, who is representing Orlu Senatorial District of Imo State in the Senate, said the #EndSARS protests against police brutality which was later hijacked by those with a different motive, was a wake-up call for the South-East and Nigerian leaders to rise to their responsibilities towards the people and the youths in particular.

SOURCE: https://punchng.com/2023-ohanaeze-church-leaders-to-hold-rally-for-igbo-presidency/

I was very skeptical when the current leadership of organised labour in Nigeria objected to FG's decision to withdraw fuel subsidy and hand over pump price of petrol to market forces.

Labour, represented by Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), and their affiliates and privies in civil society, further threatened that they were opposed to hike in electricity tariffs. They issued a statement in which they railed against neo-liberal policies, bad timing, and insensitivity of govt. They made heavy weather of the hardship COVID-19 has imposed and why any form of additional tax would be utterly unacceptable.

Deregulation of the downstream oil sector and removal of subsidy is not a new subject in Nigeria. Only the dumb and the deaf would deny being aware of the persistent argument that a functioning electricity sector in Nigeria would unleash the country’s energy and potential through values derivable therefrom: saving of costs, creation of jobs, value-added small and medium-scale enterprises (SMEs), improved manufacturing sector and happier, more productive citizenry.

In 2012, when the Jonathan administration announced full deregulation of the downstream sector and removal of fuel subsidy, organised labour aligned with opposition politicians and turned the argument on its head. They called out their troops and a thoroughly hypnotised political class, and workers’ community, fostered tension and instability in the system.

In 2016, the party that succeeded the Peoples Democratic Party (PDP), that is the All Progressives Congress (APC) and its leaders who had lied to Nigerians that there was no fuel subsidy in the country but unconscionable theft, and that the Jonathan government was wrong, promptly increased fuel prices. They argued that fuel subsidy was not sustainable: same argument they opposed in 2012. Their conspirators at the time in organised labour kept mute.

In 2020, with COVID-19 disrupting everything in the world, and Nigeria suffering a debt/ revenue crises, collapse of fiscal buffers, and sheer adversity, the FG decided to pull the plugs. It blamed all of these factors and announced removal of fuel subsidy. Pump price of fuel, benchmarked to spot price of crude oil in the international market, jumped through the roof. Nigerians groaned. The FG argued it was not left with any other option.

Everyone expected organised labour to intervene but they didn’t do so. Civil society groups had to picket the Abuja HQ of NLC to protest that they speak up and call people out on the streets, because life had become harsh and hard for the average Nigerian. After being pushed, a combined team of NLC/TUC finally announced they would call labour out on strike and shut down the country. They gave the FG stringent conditions: complete reversal of hike in fuel price and electricity tariffs. Or else, Nigeria would be shut down indefinitely, beginning Sept 28.

I was not impressed. I questioned labour’s sincerity of purpose, as I felt they were just playing a game. The biggest tragedy that has befallen organised labour in Nigeria is the thinking since 1999, that leadership of labour can be used as a stepping stone to a bigger role in Nigeria. Labour leaders use their positions to negotiate big benefits. They mouth progressive slogans and parrot aggressive rhetoric but it is all a lie. Under the military, there was a man called Paschal Bafyau who used the ladder of labour leadership to gain prominence. Matthew Hassan Kukah in his book, Democracy and Civil Society In Nigeria (Ibadan: Spectrum, 1999) considers him “a sell-out”.

With return to democracy in 1999, the new labour hero was Adams Oshiomhole of the Textile Garments and Tailoring Union. He was a thorn in the flesh of the Obasanjo administration. He could talk, dance and make communist-style speeches. He captured the public imagination. He would soon make a leap from labour leader to partisan politics. He became governor of Edo State for 2 terms and later became chairman of Nigeria’s ruling party.

Something tells me every labour leader after Oshiomhole wants to be like him. They too want to ride SUVs and enjoy unfettered access to the seat of power. They too want to be godfathers in Nigerian politics. The danger here is that this transmogrification of labour Leadership in Nigeria, sighted first with Paschal Bafyau and raised to another level with Oshiomhole, created a new brand of labour activism that contradicts norm, culture and tradition in the Nigerian Left.

This new generation of opportunistic labour leaders have devalued the heroism of the likes of Labour Leader No. 1, Michael Imoudu, Herbert Macaulay, Eskor Toyo, Wahab Goodluck, the Sunmonu brothers and Frank Kokori. A compromised labour leadership is a disgrace to the Revolution. I find no better exemplification than the current labour movement in Nigeria led by Comrade Aliyu Wabba, and the incompetent and hypocritical response to labour issues in the country.

In my view, NLC and TUC had no business calling out anybody on strike. When they reluctantly did so, they were playing politics and trying to appear concerned about workers’ welfare. This new set of labour leaders don’t care about the people. They are partisan politicians. Civil society organisations continue to make the mistake that they are dealing with persons of like minds who want to interrogate issues and offer solutions. Truth is that the most conflicted community in Nigeria today is what we broadly describe (for want of a better term) as the “Nigerian Left”. They are just as bad as the conservatives and fascists; they claim to be defenders of the people’s interests whereas they are just interested in themselves.

I am convinced Nigeria’s labour leaders knew as far back as 2012 that a subsidy regime either in the downstream or electricity sector was unsustainable. They knew getting Nigeria to work in an accountable manner was a useful national priority. They cannot claim ignorance of the inefficiency, leakages and wastages in the system that have (combined) cost Nigeria trillions of naira. The Jonathan administration tried to address this in 2012. Organised labour joined partisan politics and became an instrument to prevent the reforms.

When their clients took over in 2015, and brought up the same issue, they kept quiet. When matters reached a head in 2016/2020, they were bound to be deceptive. And this is what they have done. The strike action promised on Sept 28 was never going to happen. It was unnecessary by the way. The so-called agreements they reached to justify their hypocrisy sound ludicrous. The communique Nigerians saw in the morning of Sept 28 is questionable. It may have been designed to help labour save face, but merely exposed a labour leadership that should be a subject of ridicule.

Three meetings were reportedly held – on Sept 15, 24 and 27. After the 2nd meeting, labour announced it would go ahead with the nationwide strike because it had reached a deadlock with govt. NLC and TUC ended up taking Nigerians for a ride. The Communique that eventually signaled cancellation of the strike exposed their lack of rigour. The document says the FG negotiators and labour leaders agreed on a number of issues. Let’s examine a few.

1. On issue of hike in electricity tariffs, the communique says the bipartite meeting decided to set up an ad-hoc technical committee to re-examine electricity tariff reforms. This committee will sit for 2 weeks effective Sept 28. During that period, “DISCOs have been directed to suspend application of the cost-reflective Electricity Tariff adjustments.” This is a totally meaningless statement and it is surprising that someone like Joe Ajaero, a leader of the National Union of Electricity Employees, who was named as a member of the proposed Technical Committee was not awake enough to point out the problem with this proposal. There are technical questions.

In the first place, the current electricity tariffs are not cost-reflective, they are service-reflective. The new template by the National Electricity Regulatory Commission (NERC) creates a template which ensures houses, factories and businesses that consume more electricity within an A, B, C, D, range pay more than R1 band designated consumers at the lower end, who still pay N4 per unit, thus creating a cross-subsidy regime. The proposed 2-week suspension of electricity tariff is also in every sense ambiguous. Is the FG saying DisCos should not bill any house, factory or business for 2 weeks?

Is the president now going to ask the Ministry of Finance, Bureau of Public Enterprises (BPE), NERC and other relevant agencies to re-adjust meters and return to old tariffs for 2 weeks? Did anyone represent the vice president (who oversees privatisation), NERC, BPE and the DisCos at the meetings with organised labour? At best, the FG team merely threw the 2-week strategy at the unthinking labour leaders just to buy time. Nothing will happen.

FG says it intends to review NERC Act and involve labour in the electricity value chain. This is meaningless. FG, States, and LGs own 40% of the DisCos. Govt can take part of its 40% to the Stock Exchange, but what will be the value of whatever it expropriates? It is a non-issue. Leaders of organised labour could not see through that trick. They were also told the National Labour Advisory Council (NLAC) will be inaugurated before end of the year. And these greedy guys fell for it! If that Council remains moribund, what can they do?

2. The other big issue is deregulation of the downstream. Our labour Leaders were told the FG will now fix Nigeria’s 4 petroleum refineries and that in fact Port Harcourt refinery will be 50% completed by Dec 2021. They were told there will be timelines for delivery and even the national leadership of National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) will be appointed into a Steering Committee and a validation team.

The labour guys embraced this old, jaded lie, as if they were being addressed by King Solomon. How many times have we been told Nigeria’s refineries will be fixed? At a time, the FG wanted to privatise these same refineries but Labour leaders opposed the initiative. Today, most of these labour leaders are struggling to have their children employed in a yet uncompleted Dangote Refinery and the modular refineries by Walter Smith, NIPCO and the Edo State Govt. They want the same private sector (that they disparaged) for their own private benefits!

3. Labour leaders were further told the FG will ensure delivery of 1 million CNG/LPG Auto Gas conversion kits, storage skids and dispensing units by Dec 2021 under Nigeria’s Gas Expansion Programme. With the challenges of coronavirus, this is not possible. To even order the equipment and accessories, or to build the plant, will require not less than 18 months. Who is going to retool the petrol stations? Many of the old vehicles on Nigerian roads cannot also be converted. And even if so, who will bear the cost?

4. We are told the FG will provide 133 CNG/LPG transit buses. Nobody manufactures such buses in Nigeria. They will have to be imported.

In other words, apart from taking care of the interest of labour Leaders, the communique that ended the proposed strike of Sept 28, also very nicely, provided an opportunity for govt officials to award contracts!

5. There is also something in there about a 10% housing allocation for Nigerian workers. This is mere wishful thinking. Did anybody talk to Babatunde Fashola (SAN), Minister of Works and Housing, before making this commitment? They didn’t need to bother, of course, because both labour and the FG negotiators knew they were both playing a game and taking Nigerians for a ride.

Organised labour, having obviously embraced deregulation and market forces, should have raised other questions that could be helpful to Nigerians as follows:

A. If FG is eliminating subsidy, what does it intend to do with savings from the downstream and electricity tariffs?
B. Can the savings be used to fund education and healthcare under a mutually agreed framework? Instead, labour leaders were discussing buses and houses!
C. They could also have asked what the FG intends to do with savings in the electricity sector. Is it possible to use the savings to strengthen transmission infrastructure? Instead, they were discussing how labour leaders can become members of the regulatory board!

Govt negotiators deserve our commendation. They did a good job of preventing a “worthless” national embarrassment in the shape of a labour strike in the same week Nigeria celebrated its 60th Independence Anniversary. They also helped expose the incompetence and hypocrisy of the current Labour leadership in Nigeria. They have also won an ideological war over the subsidy regime.

Those Labour leaders who grumble about neo-liberalism have now embraced it. Their lack of rigour, clarity and intellect provides a strong case for an urgent reform of Labour Leadership in Nigeria. Once upon a time, Labour used to be a strong voice in this country. In those days, govt controlled everything: Telcom, Banking, Insurance etc. It was quite easy then to blackmail govt and use that as a platform to become a national figure. Times are changing; indeed the times have changed. Labour must reinvent itself or risk the tragedy of becoming irrelevant.

Reuben Abati, a former presidential spokesperson, wrote from Lagos.

SOURCE (abridged): https://opinion.premiumtimesng.com/2020/09/29/how-organised-labour-deceived-nigerians-by-reuben-abati/

By Derrick Kissa

There was drama at Our Lady of Fatima Church in Jinja City, Uganda, after a woman who separated from her husband 30 years ago stormed the church service to block his plan of marrying another woman. Ms Mary Baseka Norah, 58, stormed the Sunday morning service demanding that church leaders halt the marriage preparations for her husband, Mr Martin Tibalira with whom she has two children.

Flanked by her daughters, Ms Baseka interrupted the church service, saying she could not allow her husband to take on another woman (Ms Proscovia Nabirye) as his wife because they are still legally married. However, as she was still explaining, police was called to intervene before she was hounded out of the church and ordered to leave the premises.

Her daughters faulted police officers for unfair treatment of their mother whom they said was seeking justice in a peaceful manner. “Why are you chasing our mother from the church? What has she done? She has come to pray. Is it because Mr Tibalira has paid you? It isn’t right at all,” One of the daughters shouted.

A copy of the marriage certificate seen by this reporter show that Ms Baseka and Mr Tibalira, a prominent businessman in Jinja City got married on March 28, 1981. However, they separated in 1985 over Mr Tibalira’s "promiscuous" actions, and Ms Baseka went on to have 3 children for other men.

SOURCE: https://www.mywedding.co.ug/real-stories/202010/drama-as-woman-58-storms-church-to-block-estranged-husbands-wedding-plans.html

NASCON Q3 - 2020 result...

Flour Mills Q2 - 2020 result...

Nigerian Police maxim...

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If YES, which part do you agree with?...

Latest stop rates from Nigerian Treasury Bill auction held last week reveals the lowest rates for T-Bills in recent times. 91-day bills had stop rates of 1%, the 182-day bills 1% and 364-day bills 2%. This is actually a good thing, as investors will become more creative, amongst other benefits. In 2019, the rate was as high as 13.029% – enough to give you a fighting chance with the equally high rate of inflation, as opposed to a savings account offering around 4%.

However, while current prevailing rate of 2% might not be good news for investors; theoretically, the low rates could be better for the Nigerian economy. Why?

1. DOUBLE DIGITS RISK-FREE RATES IMPEDE DEVELOPMENT
Having risk-free investment yielding guaranteed interest rate about 15% means investors can put in funds and fold their hands. Therefore, the option of making riskier investments become less alluring, as lower T-bills rates can easily be mitigated by safety of the principal (and return!) – something many businesses cannot boast of today. Put simply, why should business owners risk employing people and possibly make losses, when they can simply invest in Treasury bills? After all, they too are exposed to the same inflation rate.

Unsurprisingly, this has contributed its own share in impeding growth of the country. Think about the percentage income of Nigerian financial institutions like banks that are from Treasury Bills. Conservatively, Nigerian PFA’s also have a significant percentage of their funds in Treasury bills – doing little and gaining little. It is always about the “cheapest to deliver.”

No society can effectively spur development with only safe investments, as riskier investments come with benefits like creating more jobs, building the stock market, and ultimately strengthening industries in the country.

2. ‘MODEL’ ECONOMIES HAVE VERY LOW RISK-FREE INTEREST RATES
Some of the largest economies like the US, Japan, and Germany are known to have some of the lowest rates for risk-free assets. Whilst their rates cannot also be isolated from their equally low borrowing costs, the facts are crystal clear. From a demand and supply standpoint, at 15%, it means what the government is willing to pay to get capital is high. This makes it even more expensive for government to fund infrastructural development.

From a private sector standpoint, it is by taking risks that angel investors emerge, companies get seed funding, and further development is enhanced. Without this development, very few jobs will be created. Interestingly, most of the countries with the highest amount of venture capitalist investments also have some of the lowest rates for risk-free assets.

3. HOW INVESTMENTS SHOULD BE DONE
There is an old investment strategy known as “Carry Trade.” The way it works is simple – borrow at a low interest rate, convert the borrowed sum into another currency, and invest in assets that provide higher rates of return in that currency. If Treasury Bills offer such high rates, “foreign investments” of this nature will not aid overall development of the economy. As long as the exchange rate is stable, investors get to make a killing with no value-added. This is just one of the many lapses of investing in risk-free assets.

With T-bills rates low, people can now invest the way it should be done. Investors will now be forced to be creative. Consequently, this will birth even further infrastructural developments. For example, with this rate sustained, mortgage-backed securities and other forms of infrastructural funding can now take place.

Though not without its own limitations, keeping the free money low is always a better option!

SOURCE (abridged): https://nairametrics.com/2020/10/26/why-treasury-bills-at-2-is-actually-a-good-thing/

#EndSARS: Police Arrests 229 Arsonists, Hoodlums In Lagos...

A cleric in the Fagba area of Lagos, Solomon Ajao, has recounted the devastating loss a clash among youths in the community left on his family. His church and apartments within the premises were burnt down in the clash and his family displaced.

Sunday PUNCH learnt some youths, claiming to be staging #EndSARS protest mounted a roadblock at the Fagba junction on Wednesday and stopped a truck conveying cows from the northern part of the country. The hoodlums reportedly set fire to the truck when they demanded a cow from the owners who turned down their request.

The owners reportedly mobilised and launched a reprisal, leading to burning of properties, including houses, church, shops, a bank and a filling station. Many people were allegedly feared dead in the clash that lingered till Thursday but there was no confirmation by the police.

Narrating how the incident affected his family to our correspondent on Saturday, Ajao said the violence started on Monday when he left home for a prayer ground in Ifo, Ogun State. He said, “I went for a prayer at Ifo early Monday, leaving my wife and children at home. I was at the prayer ground around 8am when I got a call that Fagba was boiling. Some of my church members relocated my family to their house because our church was at the centre of the violent spot.

“They broke into my premises through the gate and burnt down the church and our home, including a car I bought recently. I just returned from the prayer ground today (Saturday) and saw that everything was gone. My family and I have been displaced.” The pastor said the attack on his property was premeditated, adding that the arsonists only exploited the clash to execute their plan.

A resident, Ibrahim Adeniyi, said many yet-to-be-identified people were killed in the mayhem. He, however, said normalcy had returned as people had started going out. A video clip sighted by our correspondent showed some thugs breaking shops in broad daylight. Some of the looters ran away with stolen items as residents and bystanders watched in dismay. “They are breaking shops at Fagba. These are not #EndSARS protesters. See them; they are hoodlums,” someone, who was filming the scene, said in the background.

Meanwhile, the police spokesperson in the state, SP Muyiwa Adejobi, in a statement on Friday said the Commissioner of Police, Hakeem Odumosu, visited the community and appealed to the warring groups to sheathe their swords and live together peacefully.

The statement read in part, “The police chief, who was accompanied by the Area Commander, Area G, ACP Ibrahim Zungura, Commander PMF 2, Lagos, ACP Waheed Ayilara, CSP Mohammed Odunlami and some other officers, also visited Fagba area of Lagos where some Hausa and Yoruba youths engaged in attacks resulting in the destruction of property as a result of a minor conflict which has been settled amicably to forestall any further attacks in the area

“The Commissioner of Police immediately ordered investigation into most of the cases across the state including the incidents at the palace of the Oba of Lagos and Fagba respectively.”

SOURCE: https://punchng.com/my-family-homeless-after-losing-church-house-to-lagos-clash-cleric/

The Lagos State government has set up a judicial panel of enquiry and restitution on human rights abuses by the defunct SARS.

Members of the public are hereby invited to submit petitions on human rights abuse by SARS or compensation claims in Lagos State via:

EMAIL: judicialpanelonSARS@lagos.gov.ng

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#EndSARS curfew in Lagos relaxed from Saturday 23 October 2020...

Some 17 police formations were burnt in the Lagos violence...

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Destruction by hoodlums at a First Bank Plc branch in Lagos...