Nigeria: JP Morgan - a Wake-Up Call

As the frenzy over the decision by JP Morgan to phase out Nigeria from its Government Bond Index for Emerging Markets (GBI-EM) effective from October 30, 2015 begins to die down we draw attention to the need to adopt measures that would extricate Nigeria's economy from whims of foreign investors.

The GBI/EM index gives international credibility to economies for foreign investments. Nigeria was admitted in 2012 with JP Morgan suggesting then that the inclusion would translate into inflows of about USD1.5 billion. But by August the 2015 total investments were worth USD2.8 billion, indicating huge foreign investment interest in the Nigerian market.

Sadly, however, in January this year, JP Morgan placed Nigeria on Index Watch signaling a withdrawal of interest in reaction to measures by the Central Bank of Nigeria (CBN), which they claim to have impeded the ability of foreign investors to access the foreign exchange market.

In response, the CBN, Federal Ministry of Finance (FMF) and Debt Management Office (DMO) issued a joint statement saying, in a nutshell, that their overriding concern is for Nigeria and the interest of Nigerians and would only continue to take economic decisions that will impact positively on the lives of all Nigerians.

We hereby identify with and support our government institutions in their efforts to protect the Nigerian economy in the face of seeming threats to our domestic economic interests. In as much as Nigeria desires and needs foreign investment inflows, it is important to begin to appraise the type of foreign investment that should be encouraged.

Measures taken in the recent past had included a removal of foreign investment restrictions opening the door to the unprecedented volume of foreign portfolio investments (FPI's). But these FPI's move out quickly at the slightest presentation of risk. Just within 10 days of the JP Morgan announcement about USD1.2 billion worth of FPI's has left the Nigerian financial market and the exit is continuing.

They can actually pull out everything in one week or less. Stocks on the Morgan Stanley and Barclays Indices are now volatile. Financial institutions with large investments in bonds could record huge market losses in the near term.

The Nigerian economic and monetary authorities should therefore restructure the economy to present stronger incentives for the longer term FDI's, build domestic factors of production and bridge the deficits in critical infrastructure.

They should take measures to stimulate the comatose real sectors, domestic investment and reduce the cost of doing business by influencing interest rates downwards. Additional focus should be on controlling inflation and maintaining a steady foreign exchange regime.

Our JP Morgan delisting could be a blessing in disguise to the economy depending on the federal government's response to it.

Eid-El-Kabir: Buhari Orders Military, Security Agencies to Provide Maximum Security

President Muhammadu Buhari has directed the Armed Forces and national security agencies to provide maximum security across the nation during Eid-El-Kabir prayers and celebrations, especially in areas most vulnerable to terrorist attacks.

The president, in a statement to celebrate Eid El Kabir which was signed  by the Senior Special Assistant on Media and Publicity, Mr Garba Shehu‎, assured all Nigerians that their safety and security remained the highest priorities of his government.

Buhari seized the opportunity to extend heartfelt commiserations to families in Maiduguri and North-Eastern Nigeria who lost beloved relatives in recent terrorist attacks.

The president said his  thoughts and prayers for divine solace were with all those who lost loved ones   to mindless terrorists, at a time when others were celebrating Eid-El-Kabir.

Eid el kabir: Imbibe values of love, peaceful co-existence – Ambode urges Muslims

Lagos State Governor, Mr. Akinwunmi Ambode on Wednesday called on Muslims in Nigeria to imbibe the values of peaceful co-existence and brotherly love as they join their counterparts worldwide to celebrate this year’s Eid-el-Kabir.

In his goodwill message signed by his Chief Press Secretary, Mr Habib Aruna, Governor Ambode said since Islam preaches the message of peace and tolerance, every Nigerian should embrace brotherly love and harmonious co-existence.

He also enjoined Muslim faithful to pray for continued peace and tranquillity in the state and the nation, especially in the North East.

While urging Muslims to shun religious extremism, which according to him, is a challenging development for the country, the Governor described those who hide under the veil of religion to perpetrate terrorism as being ignorant to the teachings of Islam as nobody can fight for God.

“You cannot fight to protect an authority that we owe our existence to or on behalf of one who is greater than the sum total of us,” he said.

He explained that the significance of the season should be beyond the festivities, rather it should be a moment to reflect on why God has united everyone with a common humanity of blood, food and water as these should constitute what binds the people.

“As we celebrate this auspicious occasion, therefore, let us renew our faith in our nation and implore the Almighty Allah to restore to us those values that place high premium on human life, love of neighbour and sharing even as we ventilate our faith in the unity of our dear country and the possibility of her taking her proper place in the comity of nations”, the Governor said.

He expressed appreciation for the support given to the present administration, and sought for the sustenance of the peaceful co-existence in the midst of diversity of ethnic origin and religion in the state.

While wishing all Muslim brothers and sisters in the State a happy Eid-el-Kabir celebration, Governor Ambode enjoined Nigerians in other parts of the country to take a cue from Lagos and continued to be their brothers’ keepers.

FG spends N222b on fuel subsidy from January to July 2015

The Permanent Secretary, Federal Ministry of Finance, Mrs. Anastasia Daniel-Nwaobia, has said that the Federal Government spent N222.1billion on fuel subsidy from January to July this year, The Nation reports.

Mrs Daniel-Nwaobia, told the House of Representatives  panel investigating the implementation of the capital component of this year’s budget, that a supplementary budget would be sent to the National Assembly to cover what has been spent so far.

She defended the extra-budgetary spending, saying it was spent under Emergency Intervention (Fuel Subsidy Crisis) to end the eight-month long fuel scarcity which started in December last year  and ended in July this year.

She also said Nigeria’s Excess Crude Account (ECA) was depleted to about $4billion by the end of last year and $2.08billion as at June this year due to the drop in oil revenue and payment of petroleum subsidies.

She said the drop in oil prices also affected  Federal Account Allocation Committee’s (FAAC’s) distribution.

OPEC forecasts rise in oil price to $80 in 2020

THE Organisation of the Petroleum Exporting Countries, OPEC, said that oil price will rise gradually to $80 a barrel in 2020 as supply growth outside the group weakens, a slower recovery than several member nations have said they need.

The average selling price of OPEC’s crude is expected to rise by about $5 annually to 2020 from $55 this year.

“It’s much harder for OPEC to lift prices” after the revolution of U.S. shale oil, said Bjarne Schieldrop, Oslo-based chief commodities analyst, which forecasts Brent crude at $73 by the end of the decade. “Eighty dollars by 2020 is pretty close to consensus view.”

The price of crude has tumbled more than 50 percent in the past year as OPEC followed Saudi Arabia’s strategy of defending its share of the global market against competitors like U.S. shale oil. While OPEC and the International Energy Agency, IEA, expect growth in global supply to slow as low prices bite, Goldman Sachs Group Incorporated predicts that a persistent glut will keep crude low for the next 15 years.

Production from nations outside OPEC is expected to be at 58.2 million barrels a day in 2017, 1 million lower than previously forecast by OPEC. “The impact low prices is most apparent on tight oil, which is more price reactive than other liquids sources. Supply reductions in U.S. and Canada from 2014 to 2016 are clearly revealed,” Goldman Sachs said. While demand from China, Russia and OPEC members will grow more slowly than forecast a year ago, developing nations with still account for the bulk of the expansion.

High onshore tax:   The predictions come as the Chairperson of Famfa Oil Limited, Mrs. Folorunso Alakija, said that Nigeria’s 85 percent tax on onshore crude oil production is dissuading local investors from taking over assets from international oil companies, IOCs.

Famfa had sought to acquire stakes in onshore oil fields, but was deterred by high tax regime. Onshore producers pay 30 percent corporate tax and 55 percent tax on petroleum profit, while offshore producers who bought stakes in the 1990s are exempted from corporate tax and pay 50 percent profit tax.

“The 85 percent that those who are onshore have to pay is going to be too high for indigenous companies to be able to stand on their own two feet,” said Alakija, who has a fortune of $1.8 billion, according to an estimate by Forbes magazine.

Tinubu bars pro-Saraki senator from APC caucus meetings

he National Leader of the All Progressives Congress, Asiwaju Bola Tinubu, has barred the lawmaker representing Ondo-Central senatorial district, Senator Tayo Alasoadura, from attending South-West caucus meetings, our correspondent has learnt.

It was learnt that the senator was ostracised for allegedly working against the interest of the party’s South-West leadership and for taking sides with Senate President Bukola Saraki.

Alasoadura was also among the senators that followed Saraki to the Code of Conduct Tribunal in solidarity on Tuesday.

A reliable source within the party told our correspondent that Alasoadura had been sidelined from all APC South-West meetings for his disloyalty to Tinubu.

The source said, “Alasoadura was a Commissioner for Finance under the late Dr. Olusegun Agagu for over five years. He later defected from the Peoples Democratic Party to the Action Congress of Nigeria. Tinubu accepted him and appointed him the Director-General of the Rotimi Akeredolu governorship campaign organisation in 2013.

“Alasoadura was not even supposed to have emerged the senatorial candidate of the APC in the last election but the party favoured him. However, when he got to the Senate, he returned to his PDP family and started working against the party. He also supported Saraki against the interest of the party.

“When Tinubu convened a South-West meeting in Abuja during the height of the National Assembly crisis, Alasoadura came. However, Tinubu walked him out of the meeting and told his orderly to ensure that the senator was escorted off the premises.

“Tinubu also warned senators present to ensure that sensitive issues were not discussed in the presence of Alasoadura as he was an enemy within.”

Two days after the faceoff with Tinubu, however, the Ondo State senator issued a statement wherein he pledged his loyalty to the party and denied supporting Saraki.

Alasoadura said he was only working in the best interest of his constituents.

An APC leader, who spoke to our correspondent on the condition of anonymity, however, said that the fact that Alasoadura accompanied Saraki to the Code of Conduct Tribunal in solidarity on Tuesday, confirmed their suspicions.

He said the party would ensure that he remained irrelevant in the APC.

Buhari orders IG to rescue Falae

Following a briefing on the abduction of elder statesman, Chief Olu Falae, President Muhammadu Buhari has directed the Inspector-General of Police and other security agencies to take all necessary action to ensure the safe and speedy rescue of the former Secretary to the Government of the Federation.

Falae was abducted from his farm on Monday by suspected Fulani herdsmen who are demanding N100m ransom for his release.

Buhari according to a statement on Wednesday by his spokesman, Femi Adesina condemned the “callous and reprehensible kidnapping of the former Secretary to the Government of the Federation and elder statesman.”

The President assured Falae’s family, friends and other concerned Nigerians that the Federal Government would do all within its powers to ensure his swift release.

Buhari, who had requested constant updates from the police and other security agencies on efforts to find and rescue Falae, also denounced the recurring incidents of criminal abductions across the country.

He assured all Nigerians that ongoing efforts to significantly enhance the security of lives and property in the country would continue, adding that under his leadership, Nigerians, irrespective of their status, “will no longer be left at the mercy of criminal elements.”

Nigeria: Grounded Aircraft Pays N11 Million Fine

Lagos — Gama Aviation, United (UK) Limited, operator of the Bombardier 700-100 aircraft, one of the two aircraft grounded by the Nigeria Civil Aviation Authority (NCAA) early this week, has paid the sum of N7 million as fine imposed on it for operating in Nigeria without clearance.

The money was paid to the Federal Airports Authority of Nigeria (FAAN), it was learnt, while another $20,000 (about N4.5 million) was paid to the Nigeria Airspace Management Agency (NAMA).

The other grounded aircraft, Embraer 135 BJ is yet to pay and as such remains grounded.

Acting General Manager, Public Affairs of NCAA, Mr. Sam Adurogboye, who briefed newsmen yesterday confirmed the development.

It would be recalled that the NCAA in a statement said the operator of G-RBEN aircraft were found operating in Nigeria's airspace with falsified flight clearance information and conducting illegal domestic flight operations in Nigeria.

Other infractions he had said included conducting illegal commercial revenue flight operations contrary to conditions contained in Nig. Civil Aviation Regulations (NCARs) Part 10 and security violations.

Based on the offences, the NCAA spokesman said fine was imposed on them and should be paid within seven days.

He said the two aircraft operated ten chartered flights locally before they were discovered.

He said: "As we speak, the GAMA Aviation has paid the fine because following the conclusion of our investigation, a letter of sanction was written to them which I'll read out. In the light of the above, that's the violation, you are hereby sanctioned in accordance with the provisions of section 1.3.3A and section B of the Nigeria Civil Aviation Regulations, 2009 and of course they are required to pay within seven days from the date of the receipt of this letter being the total civil penalty for the above violations. This was what was imposed on them and it covers the aircraft and crew."

Adurogboye said other steps were being taken to punish aircraft operators for their infraction.

During My Playing Days, I Used Juju – Taribo West Reveals

Former Super Eagles Defender, Taribo West has just made a shocking confession recently. The ex-footballer has just revealed that during his football career days he used juju to play on the field.

The ex-footballer turned pastor said he had a manager from Senegal and his manager would take him to several native doctors in Senegal where they will cut his tongue, hands and legs and then cook it.

He said,

“I spend most of my time at home meditating. All I want to do is to keep spreading the gospel. In my own little way, I have been into evangelisation visiting places like Ughelli and within the Orile community, Ajegunle and so on. God has been kind during these visits to preach the gospel to people who are yet to receive Christ. We believe He will take us globally very soon.

Taribo revealed that his move to Europe found him entangled in another life of charms and superstitious beliefs.

With a new-found life of affluence, the defender paid huge sums of money for him to be supplied charms to win games, protect him from career-threatening injuries and also to be foretold the results of matches before they were played.

He used to burn candles and hold a magical stone from Israel before games.

Buhari condemns Chief Falae’s abduction, directs police to ensure his safe rescue

Following a briefing on the abduction of former Secretary to the Government of the Federation, Chief Olu Falae, President Muhammadu Buhari has directed the Inspector-General of Police and other security agencies to take all necessary action to ensure the safe and speedy rescue of the former SGF who was abducted from his farm on Monday.

In a statement signed by Mr. Femi Adesina, Special Adviser to the President on Media & Publicity, President Buhari condemned the callous and reprehensible kidnapping of the former Secretary to the Government of the Federation and elder statesman.

The President equally assured Chief Falae’s family, friends and other concerned Nigerians that the Federal Government would do all within its powers to ensure his swift release.

The statement further disclosed that President Buhari, has requested constant updates from the police and security agencies on efforts to find and rescue Chief Falae. He also denounced the recurring incidents of criminal abductions across the country.

He assured all Nigerians that ongoing efforts to significantly enhance the security of lives and property in the country will continue apace and that under his leadership, Nigerians, irrespective of their status, will no longer be left at the mercy of criminal elements.

World Bank to Support Lagos Farmers to Boost Agricultural Productivity

The World Bank is set to assist farmers in Lagos State to increase agricultural productivity and enhance market access.


The State Project Coordinator, Commercial Agriculture Development Project, CADP, Kehinde Ogunyinka who spoke on Monday, September 21, in Lagos before the award of certificates to participants at its women and youth empowerment training, said 55 persons will be sponsored by theWorld Bank to start their businesses in areas such as rice cultivation, poultry farming and others.

Ogunyinka said 55 persons, which include women and youths were chosen from 125 persons who interested in participating in the training programme.

According to him, the bank will support the farmers in three value chains to create agro-business ventures that will be better managed as a step toward boosting livelihoods.

The World Bank through CADP has helped to lay the groundwork for vitalisation, offering technical expertise, bringing international best practices and engaging stakeholders on building a shared vision to renew agro business development, he said.

Utomi, Falana, Oyinlola, Odimegwu others make President Buhari's list.

The Department of State Service, (DSS) recently completed a screening process for some of the ministerial nominees to make up the cabinet of President Muhammadu Buhari.

Among the list of those who were said to have been screened by the DSS are, former presidential candidate, Prof. Pat Utomi, Femi Falana (SAN), a former Governor of Osun State, Olagunsoye Oyinlola, a former finance commissioner in Lagos State, Mr. Wale Edun and Former Managing Director of Nigerian Breweries Limited, Mr. Festus Odimegwu.

Others in the list are, Abubakar Malami (SAN), former Chief of Army, Lt.-Gen. Abdulrahman Dambazu (rtd.); an former chief executive of the Federal Inland Revenue, Mrs. Ifueko Omoigui-Okaru.
A source very close to the presidency who pleaded anonymity that the aforementioned nominees had appeared before the DSS for their screening at the weekend.

It was gathered that they had been instructed not to leak details of their screening to the media.

‘‘What was done was not physical screening but mainly background checking,” one of the already-screened nominees told one of our correspondents late on Sunday.

Multiple sources within the All Progressives Congress told our correspondent on Sunday that Falana was favoured by a camp in the party to emerge as the Minister of Justice and Attorney-General of the Federation.

A top APC chieftain said the Vice President, Prof. Yemi Osinbajo and the National Leader of the APC, Asiwaju Bola Tinubu, had convinced Buhari to appoint Falana.

Tinubu and Osinbajo were said to have told Buhari that appointing Falana, who he jailed over 30 years ago, would boost his image as a ‘converted democrat.’

It was, however, learnt that Malami was being favoured by the President.

A source within the party added power blocs within Falana’s home state, Ekiti, might not be disposed to the choice of the human rights lawyer because he is not a member of the APC.

The APC has three former governors in Ekiti State: Niyi Adebayo, Segun Oni and Kayode Fayemi.

An APC top official said, “Falana has already been screened by the DSS. However, Buhari is closer to Malami who is from the North.”

Sources within the party also told our correspondent that Utomi, a renowned economist and former presidential candidate of the African Democratic Congress, had been screened by the DSS and the police.

Utomi, who is now a member of the APC, was one of biggest critics of former President Goodluck Jonathan’s government.

It was learnt that Edun, who served under former Tinubu as Lagos State governor, had also been screened by security agencies.

It was learnt that Edun was being considered to emerge as the Minister of Finance while Utomi for Minister of Economic Planning.

Sources within the party told our correspondent that Tinubu convinced Buhari to appoint Edun based on his antecedents.

He said the Chairman of the Federal Inland Revenue Service, Babatunde Fowler, Edun and Utomi might be given the task of reviving the economy.

A source said, “Oil prices are dwindling and Nigeria will need to diversify but in the short term, increasing the nation’s Internally Generated Revenue is the key. Tinubu explained to Buhari that when former President Olusegun Obasanjo withheld Lagos State allocations, Edun and Fowler helped to ensure that the state’s IGR increased exponentially.’’

It was learnt that Odimegwu, was nominated by the President.

Odimegwu fell out with former President Goodluck Jonathan when he openly criticised the Federal Government. He had resigned and then travelled to the United States.

Two weeks to the March 28 presidential election, however, Odimegwu openly supported Buhari and called him ‘the best man for the job.’

Odimegwu is also close to former President Olusegun Obasanjo.

Oyinlola, a one-time secretary of the Peoples Democratic Party, defected to the APC shortly before the Osun State governorship election and he is a close associate of Obasanjo.

Repeated calls made to the telephones of Odimegwu and Utomi were not responded to.

One of the nominees who picked his call, simply said, “I don’t know if screening has been done or completed.”

Another nominee, who pleaded anonymity, said, “Although I have met the director-general of the DSS twice, I don’t think such visits could be regarded as screening.

“I understand the service has done its research on ministerial nominees. For now, nobody is sure of anything until the names are announced.”

In his reaction, Oyinlola said he had not been screened as a ministerial nominee.

He said, ‘‘To the best of my knowledge, I have not been called. May be they called others, not me.”

The former governor, however, said he was one of the nine persons, whose names were submitted to Governor Rauf Aregbesola – as a ministerial nominee – having been picked by his senatorial district.

It was learnt that the report of the DSS screening would be sent to the President this week.

A top DSS operative, who confided in NE said the agency had conducted extensive checks on the nominees, including their financial transactions and their records with the Economic and Financial Crimes Commission and the police.-Nigerianeye

- See more at: http://nigerianreviews.com/buharis-ministerial-list-utomi-falana-oyinlola-odimegwu-others-undergo-dss-screening/#sthash.O6HLubPr.dpuf

Corruption is cause of poverty in Nigeria – Buhari

Apart from barefaced theft of public funds, corruption has also been cited as the main reason for poor policy choices, the prevalence of poverty in the midst of plenty and waste of resources in the country, according to President Muhammadu Buhari in his Goodwill message to the Conference of Catholic Bishops of Nigeria earlier on Sunday in Port Harcourt.

In a message delivered on his behalf by the Vice President, Yemi Osinbajo, the President declared that “corruption in our country is so endemic that it constitutes a parallel system. It is the primary reason for poor policy choices, waste and of course bare- faced theft of public resources.”

While further clarifying his administration’s commitment to the war against corruption, the President said “our fight against corruption is not just a moral battle for virtue and righteousness in our land, it is a fight for the soul and substance of our nation.”

Giving an insight into the way corruption destroys the nation, the President told the Second Plenary of the Conference that “it is the main reason why a potentially prosperous country struggles to feed itself and provide jobs for millions.”

In the same way, the President posited that “the hundreds of thousands of deaths in the infant, maternal mortality statistics, the hundreds of thousands of annual deaths from preventable diseases are traceable to the greed and corruption of a few. This is why we must see it as an existential threat, if we don’t kill it, it will kill us.”

On security, the President disclosed that “we are on course to militarily rout Boko Haram, and make them incapable of taking and holding territory, ” adding that suicide bombings in some parts of the North East are the desperate acts of the terrorists to create a sense that they are still in play.

He assured that “with vigilance and good local intelligence, we will make those cowardly acts practically impossible.”

Briefing the conference on the economy, the President disclosed that “we must change the paradigm of thinking about our economy and the ultimate good of the majority. While we create an enabling environment for free enterprise, we must reason, plan and budget with the understanding that almost 2/3 of our people are extremely poor, and must be helped first to survive and then to fully participate in the economy of the nation.”

Consequently, he continued, “we must create a safety nets for the very poor and vulnerable while ensuring that social spending is also a direct investment in the economy. We must invest substantially in relevant education, teacher training , and vocational and entrepreneurial training.”

The President who had attended the First Plenary of this year’s Conference in February as the presidential candidate of the APC, expressed a sense of honour at the invitation, and delivered to the Conference, “warm felicitations on behalf of the Government and people of our great nation Nigeria.”

He praised the Catholic Bishops noting that he has “always been impressed with the social consciousness exhibited by the Catholic Bishop’s Conference.”

The President praised the Bishops’ Conference that their “bold critical interventions at various crucial moments in our national journey have helped to caution, admonish and ultimately stabilize the polity. This is as it should be. This nation belongs to us all, leaders in every sector owe it to this generation to contribute in building a good society.”

He concluded by asking for daily prayers while promising that “for us elected into government we have since set about the daunting tasks before us, with vigour and commitment in the full assurance that by the grace of God our country will become safe, secure, prosperous and virtuous.”

In his speech, the President of the Conference, Igantius Kaigama, the Archbishop of Jos, commended the Buhari administration’s commitment to the fight against corruption and praised the formation of a Presidential Advisory Committee on Anti-Corruption.

According to him, “the president is dead right that if we don’t kill corruption, corruption will kill us.” He also prayed that God will give the citizens of Nigeria a new heart.