Wednesday
Nigeria: Pipeline Bombings - Militant Group Announces 2-Wk Ceasefire
A militant group, Niger Delta Revolutionary Crusaders, NDRC, based in Bayelsa State, Wednesday, declared a two-week armistice within which it urged President Muhammadu Buhari to review his hard-line stance to consequential dialogue with militants and first-rate leaders of Niger Delta to prevent total devastation of crude oil export facilities.
This came as the Niger Delta Avengers, NDA, accused ExxonMobil of telling lies about the bombing of its Qua Iboe 48-inch crude export pipeline on Monday evening.
Spokesperson of the militant group, self-appointed Brig Gen Mudoch Agbinibo, stated: "ExxonMobil can deny and fool the general public about their Export Pipeline blown, yesterday (Monday). How long can they lie to their investors? Just in matter of days, the whole world will see the truth. Qua Iboe 48" crude oil export pipeline is down, so said the Avengers."
NDRC, which recently blew up the Brass Creek Manifold, the largest in West Africa, situated in Peretorugbene, Ekeremor local government area, Bayelsa state, said: "With clear evaluation of the happenings and advice of well- meaning Nigerians and Niger Delta stakeholders, we hereby declare a two- week ceasefire for a sincere and proper dialogue.
Flexible Forex Policy Arouses Positive Sentiments
The decision to implement a flexible foreign exchange policy has once again being described as one that would certainly have positive effect on the Naira in particular and the Nigerian economy in general.
Prominent financial analysts, who spoke to Independent, believed that the implementation of the policy at this period will bring back the lost glory and restored the country’s currency, the naira, back to its good old days.
Johnson Chukwu, the Chief Executive Officer of Cowry Asset Limited, said that the Naira has enjoyed some stability in all the market segments since the introduction of the new forex policy unlike when we had wide fluctuations in the parallel market.
“It should be emphasised that what business managers seek for is not necessarily a revaluation of the Naira, but exchange rate stability to enable them plan.
“For those expecting Naira to appreciate, this may be feasible in the medium to long-term when the country’s foreign exchange earnings improve and previously active but now dormant sources of foreign exchange inflows get reactivated, particularly Diaspora remittances, foreign portfolio investments and foreign direct investments and non-oil exports.
“The introduction of the flexible foreign exchange policy, which removed the peg of the Naira from an artificially overvalued rate of about N197/$ to a more market reflective spot rate of N280 – N282/$ has restored some stability, including the parallel segment where Naira is still trading at about N350 – N352/$, against fluctuations between N320/$ -N400/$.
“Also the new forex policy has eliminated some distortions in the economy by creating a fair playing field as against the previous arrangement where some people accessed forex at N197/$ while others sourced theirs from the parallel market at N380/$,” he said.
But, he said that readmitting BDCs is hinged on the desire to create multiple sales outlets and reduce the spread between the interbank rate and the parallel market rate.
Citing the CBN-led Prof. Chukwuma Soludo era, he said increased dollar sales to BDCs led to drastic reduction in the spread between the official and parallel market rates to about N2/$.
“Given that there is no longer an official exchange rate, what the CBN is considering may be to allow the BDCs buy from the banks and resell to their customers who need minimal dollar cash for personal and business travel allowances. It will certainly improve supply in that market and reduce the current premium of about N70/$ between the interbank rate and the parallel market rate,” he added.
For a currency expert and Research Analyst at FXTM, Lukman Otunuga there was a strong feeling of positivity dispersed across the economy in June following the unexpected decision to de-peg the Naira against the dollar in an effort to ease the severe pressures on external reserves and foreign exchange supply shortages.
For an extended period, depressed oil prices have weathered the nation’s government revenues, while supply disruptions heightened concerns over a potential slowdown in domestic economic momentum.
“With fears elevated that Nigeria could enter a potential technical recession in second quarter, the swift decision taken by CBN consequently boosted investor sentiment.
“Unfortunately, the policy faces noticeable pressure now, following the fading optimism over the effectiveness of the Naira de-peg and such has created unease throughout the Nigerian economy.
“However, while it was expected that the Naira should depreciate heavily post de-peg as the natural forces of supply and demand create an equilibrium price, it really does not reflect on the official exchange that showed N281 against the dollar.
“Although there are fears that a weakening Naira could drive inflation higher in the short term, this same weak Naira could attract foreign investments while boosting demand for domestically created products.
“The decision taken by the central bank to float the Nigeria may have been a painful move in the short term, but this could be the first critical steps needed to steer away from oil reliance, while also promoting economic stability in the long term.
“Naira weakening on the parallel markets cannot all be put on CBN alone. Global instabilities have exposed the Nigerian economy to downside risks while the awful mixture of depressed oil prices and a firming dollar will translate back to a vulnerable Naira.
“With liquidity still lacking, coupled with the 41 banned items, which cannot be purchased on the official exchange, market participants will be naturally attracted to the black markets,” he said.
Also, the Executive Director, Investment Finance, BGL Capital Limited, Olufemi Ademola, assessed the new policy as going in the right direction as expected.
The implementation of the flexible exchange rate policy is going on very well. As expected the level of the demand in the market is driving the exchange rate rather than the CBN fixing the prices.
However, it appears that the CBN is the only supplier of foreign currency to the market for now and the market is pricing the high demand into the rates.
“If you check the bids submitted to the CBN by banks on the first day of trading, some were as high as N382/US$. This is based on the request of the customers (since they are requested by banks to state the price in their bid instruction) who just want the foreign currency to complete their transactions.
“With the clearing of the backlog of forex demand and the introduction of forward contracts and futures market, it is expected that going forward, future demand would be lower and even over the period as artificial demands and speculative activities moderate significantly.
“Therefore, as more forex supplies enter the market from International Oil Companies, other exporting companies and foreign investors, the rate is expected to moderate in the very near future.
“The continued ban of some 41 products from accessing the interbank forex market will continue to create opportunities for black market and account for a large amount of forex transactions.
“Additionally, the difficulty in accessing the interbank market by end users, especially retail and individuals due to the stringent requirements for accessing the market otherwise, is leading to the continued patronage of the black market by the end users. These are making the efforts of the CBN to appear futile,” he said.
Still, he said BDCs need to be accommodated and given a role to play, otherwise they will continue to trade outside of the official market and keep the parallel market significantly active.
“The consideration to engage the BDCs for forex trading was a good one, which need not be politically motivated by big economic players or any other persons for that matter. It should be a rational economic decision with a view to make the foreign exchange policy successful,” he added
Agriculture as engine of diversification
Nigeria’s current economic woes are primarily as a result of over-dependence on oil, a commodity presently known for its pricing volatility. The current economic quagmire has made many Nigerians to proffer soluations to the current situation. While some are calling for a restructuring of the nation’s political-economic architecture to free up the potential of the States, others have advocated the maintenance of the status quo, with greater emphasis on economic diversification. However, the present nature of our convoluted federal system calls for a more satisfactory and accomplished discussion of economic diversification.
The efforts to diversify the economy should be considered and effected with a robust approach towards bolstering the economy. Agriculture is one of the sectors we should focus on for the purpose of actualizing our economic diversification goal. There is no doubt that the present administration and its predecessor made agriculture one of the focal sectors to invest in towards strengthening our economy.
The previous administration under the stewardship of the then Agriculture Minister, Dr. Akinwumi Adesina, commenced the process of maximizing the potentials of the sector. Some initiatives were introduced such as: the utilization of technology in a sector that has been mostly archaic in approach and practice, exemplified via updates and information to farmers through small holder farmers. In addition, concerted efforts were made to attract private sector participation to the industry, among other laudable interventions.
The current administration, acknowledging that more work needs to be done, has consolidated on the efforts of the previous administration by granting N40 billion in form of soft loans for rice and wheat production through the CBN Anchor Borrowers Programme (ABP). The creation of this fund is a strategic move for the the attainment of national food security, job creation and poverty reduction.
As laudable as the efforts of the current administration are, it should be said that more efforts are still required in order to positively transform Nigeria’s agriculture sector and turn it into a major revenue earner for the nation, as it once was. The issue of financing indigenous farmers has been a major impediment to the take off and growth of the agriculture sector.
It is pertinent to note that commercial banks, with the exception of a few, are still reluctant to provide credit facilities to the Agricultural sector, in spite of the encouragement by the Central Bank to do so. CBN has consistently encouraged commercial banks to meet and comply with their agricultural credit financing thresholds through schemes like Nigeria Risk Incentive-Based Sharing System for Agricultural Lending (NIRSAL) and Micro Small and Medium Enterprises Development Fund (MSMEDF). Yet, many banks still fail to avail farmers credit facilities.
Understandably, some of the reasons for the unwillingness of banks to give agricultural loans can be found in the widespread subsistent nature of farming in Nigeria. Especially, in rural areas which makes it practically impossible for farmers and banks to agree on loan modalities combined with the illiteracy level of some farmers. Furthermore, the farmers are scared of the double digit-interest rate associated with these loans. There is also the issue of diversion of funds by some farmers.
Moreover, there is a varying degree of improper engagement of the youths in the agricultural sector which is in dire need of well-trained manpower and technological advancement. A friend once made a remark that if a Nigerian farmer who died fifty years ago resurrects today, he can simply walk into a farm and carry on farming activities since nothing in practice and tools have changed.
Indeed, nothing has changed except the rhetoric. The farms we have are largely un-mechanized, with Nigeria having the lowest tractorization in the world in terms of intensity and density. Our youths who are known to be dexterous and creative, can resolve most of these issues inhibiting modern day technology in today’s farming. However, the youths cannot provide succour if graduate youths are not engaged in agribusiness. They need to be sensitized on the value chain of agriculture and the benefits it can provide. The Nigerian youths can provide the skilled manpower and managerial skills that are deficit within the sector considering the enterprising nature of some of these youths.
There is no gainsaying the fact that having agriculture as one of the big revenue earners of our economy would be to our benefit. It will, among other things, serve as a source of raw materials for agro-allied industries, help advance Nigeria’s quest and march to industrialisation. Furthermore, research comes up with new findings of breakthroughs and solutions obtained from agricultural produce, most of which can be found in our geographical entity.
The citizens and government of Nigeria should be more proactive in investing in the restructuring of this viable sector and harnessing its value chain in boost its contribution to the GDP and sustainability of our livelihood and economy. An example is Benue state, which recently took bold steps towards achieving citizens’ participation by declaring Friday a work-free day for civil servants to take part in farming activities in this year’s crop season.
The efforts to diversify the economy should be considered and effected with a robust approach towards bolstering the economy. Agriculture is one of the sectors we should focus on for the purpose of actualizing our economic diversification goal. There is no doubt that the present administration and its predecessor made agriculture one of the focal sectors to invest in towards strengthening our economy.
The previous administration under the stewardship of the then Agriculture Minister, Dr. Akinwumi Adesina, commenced the process of maximizing the potentials of the sector. Some initiatives were introduced such as: the utilization of technology in a sector that has been mostly archaic in approach and practice, exemplified via updates and information to farmers through small holder farmers. In addition, concerted efforts were made to attract private sector participation to the industry, among other laudable interventions.
The current administration, acknowledging that more work needs to be done, has consolidated on the efforts of the previous administration by granting N40 billion in form of soft loans for rice and wheat production through the CBN Anchor Borrowers Programme (ABP). The creation of this fund is a strategic move for the the attainment of national food security, job creation and poverty reduction.
As laudable as the efforts of the current administration are, it should be said that more efforts are still required in order to positively transform Nigeria’s agriculture sector and turn it into a major revenue earner for the nation, as it once was. The issue of financing indigenous farmers has been a major impediment to the take off and growth of the agriculture sector.
It is pertinent to note that commercial banks, with the exception of a few, are still reluctant to provide credit facilities to the Agricultural sector, in spite of the encouragement by the Central Bank to do so. CBN has consistently encouraged commercial banks to meet and comply with their agricultural credit financing thresholds through schemes like Nigeria Risk Incentive-Based Sharing System for Agricultural Lending (NIRSAL) and Micro Small and Medium Enterprises Development Fund (MSMEDF). Yet, many banks still fail to avail farmers credit facilities.
Understandably, some of the reasons for the unwillingness of banks to give agricultural loans can be found in the widespread subsistent nature of farming in Nigeria. Especially, in rural areas which makes it practically impossible for farmers and banks to agree on loan modalities combined with the illiteracy level of some farmers. Furthermore, the farmers are scared of the double digit-interest rate associated with these loans. There is also the issue of diversion of funds by some farmers.
Moreover, there is a varying degree of improper engagement of the youths in the agricultural sector which is in dire need of well-trained manpower and technological advancement. A friend once made a remark that if a Nigerian farmer who died fifty years ago resurrects today, he can simply walk into a farm and carry on farming activities since nothing in practice and tools have changed.
Indeed, nothing has changed except the rhetoric. The farms we have are largely un-mechanized, with Nigeria having the lowest tractorization in the world in terms of intensity and density. Our youths who are known to be dexterous and creative, can resolve most of these issues inhibiting modern day technology in today’s farming. However, the youths cannot provide succour if graduate youths are not engaged in agribusiness. They need to be sensitized on the value chain of agriculture and the benefits it can provide. The Nigerian youths can provide the skilled manpower and managerial skills that are deficit within the sector considering the enterprising nature of some of these youths.
There is no gainsaying the fact that having agriculture as one of the big revenue earners of our economy would be to our benefit. It will, among other things, serve as a source of raw materials for agro-allied industries, help advance Nigeria’s quest and march to industrialisation. Furthermore, research comes up with new findings of breakthroughs and solutions obtained from agricultural produce, most of which can be found in our geographical entity.
The citizens and government of Nigeria should be more proactive in investing in the restructuring of this viable sector and harnessing its value chain in boost its contribution to the GDP and sustainability of our livelihood and economy. An example is Benue state, which recently took bold steps towards achieving citizens’ participation by declaring Friday a work-free day for civil servants to take part in farming activities in this year’s crop season.
World Bank loan for Port Harcourt
The World Bank's private sector arm, the IFC, has granted $73.5 million for the build of a new port terminal in southern Nigeria, says Reuters.
The aim behind the new terminal currently being constructed at Port Harcourt in Nigeria's Niger Delta, will be to help increase the country's non-oil exports.
It will be used to ship 2 million tonnes of dry bulk urea exports per year from Indorama Eleme's fertiliser plant.
It’s a joint venture between Indorama Eleme Petrochemicals Limited and Oil and Industrial Services Limited and will cost $150 million in total to build.
Finance for the terminal is made up of The IFC grant plus an additional $31.5 million loan for the terminal from Rand Merchant Bank.
Nigeria currently relies on crude oil sales for around 90% of its foreign exchange, but it’s suffering from a plunge in oil prices spurring the government on to steer the economy towards other trading goods.
- See more at: http://www.portstrategy.com/news101/world/africa/world-bank-loan-for-port-harcourt?#sthash.kwuPf34F.dpufFederal Govt. of Nigeria to establish renewables, power sector committees
The minister of state for Works, Power and Housing, Mustapha Baba Shehuri, has said committees will be established and saddled with dealing with the specific issues that need attention with regard to the power sector, adding that all stakeholders need to be on board in moving the sector forward,opinionvoices reports.
Addressing participants at the second edition of the National Council on Power organised by his ministry in Kaduna, Shehuri, represented by Louis Edozien, permanent secretary, Power in the ministry, said the power industry is currently going through specific challenges and it is important the council deliberate on them especially as the industry is in transition.
He tasked stakeholders in the sector to come up with the right energy mix among the volumes of energy resources in the country that will serve the best interest in delivering power to all Nigerians. He noted that committees would be established to discuss how to effectively harness these various energy resources and develop an energy target and mix that will better serve the country as well as on the prospect of better utilization of gas resources in the country.
Why Mikel Should Remain At Chelsea
The future of Nigeria Captain and Chelsea midfielder John Obi Mikel looks very uncertain, and it seems his days at Stamford Bridge is coming to an end.
His agent John Shittu who brokered the move to Chelsea following the saga between the London Club and Manchester United has shot down reports suggesting him leaving Stamford Bridge citing all of such links as rumours. However, the future of the midfielder who have spent 10 years at Chelsea is still under massive speculation without a clear picture of where the Chelsea man should pitch his tenth come next season.
Following the announcement of Antonio Conte as new Chelsea Coach in the latter stage of last season, Mikel rejected a new three year deal and decided to wait till summer to make a decision about his future with first team football in mind. Following an £8 million interest from Turkish Giant Bekistas and other suitor’s interested in his services, it could be in Mikel's best interest to remain at Stamford Bridge amid all the speculation.
On this note we highlight some reasons why the Mikel Obi should remain at the club next season.
John Obi Mikel has paid a big price in world football and in Nigeria football at large and it is right for him to reap the fruits and the dividends at the moment.
A player who was converted from attacking midfield position to a defensive midfield player under Coach Jose Mourinho at Chelsea in 2006 have been a long serving player for the club along side John Terry and Branislav Ivanovic and with the aforementioned staying put at the club, it will be nice for Mikel to bury the hatchet and settled down at the club which have fetched him glory in the UEFA Champions league in 2012 and some other trophy with 2015 Premier League crown a worthy of note.
There is need for Mikel to remain at Chelsea alongside Cesc Fabregas, Gary Cahill, William and star player Eden Hazard as his presence around the Chelsea bunch will endear him with massive recognition and possible limelight. A further stay at Chelsea will enable Mikel remain among there elite as the pre-season approaches in earnest.
His agent John Shittu who brokered the move to Chelsea following the saga between the London Club and Manchester United has shot down reports suggesting him leaving Stamford Bridge citing all of such links as rumours. However, the future of the midfielder who have spent 10 years at Chelsea is still under massive speculation without a clear picture of where the Chelsea man should pitch his tenth come next season.
Following the announcement of Antonio Conte as new Chelsea Coach in the latter stage of last season, Mikel rejected a new three year deal and decided to wait till summer to make a decision about his future with first team football in mind. Following an £8 million interest from Turkish Giant Bekistas and other suitor’s interested in his services, it could be in Mikel's best interest to remain at Stamford Bridge amid all the speculation.
On this note we highlight some reasons why the Mikel Obi should remain at the club next season.
TO REMAIN AMONG THE ELITES
 |
| Mikel celebrates first Champions League goal against Sporting Lisbon among the Chelsea elite players. |
A player who was converted from attacking midfield position to a defensive midfield player under Coach Jose Mourinho at Chelsea in 2006 have been a long serving player for the club along side John Terry and Branislav Ivanovic and with the aforementioned staying put at the club, it will be nice for Mikel to bury the hatchet and settled down at the club which have fetched him glory in the UEFA Champions league in 2012 and some other trophy with 2015 Premier League crown a worthy of note.
There is need for Mikel to remain at Chelsea alongside Cesc Fabregas, Gary Cahill, William and star player Eden Hazard as his presence around the Chelsea bunch will endear him with massive recognition and possible limelight. A further stay at Chelsea will enable Mikel remain among there elite as the pre-season approaches in earnest.
Euro 2016 participants only absentees as Jose Mourinho readies Man Utd for pre-season fixtures
New Manchester United signings Henrikh Mkhitaryan and Eric Bailly as well as the fit-again Luke Shaw are among the players who have been training under Jose Mourinho's watchful eye ahead of the club's first pre-season friendly this weekend.
United's maiden fixture under Mourinho - appointed as manager in May, succeeding the sacked Louis van Gaal - is a trip to Wigan on Saturday.
The contest could see first run-outs for forward Mkhitaryan and central defender Bailly following their big-money summer moves from Borussia Dortmund and Villarreal respectively.
And there is also a chance of it featuring Shaw, the full-back who missed the rest of United's season and England's Euro 2016 campaign after suffering a broken leg in September.
A statement on United's website on Wednesday said a number of youngsters are likely to feature in the match as well, with some, including James Wilson, Andreas Pereira, Tim Fosu-Mensah, Axel Tuanzebe, Joel Castro Pereira and Dean Henderson, having trained with the first team that morning.
The likes of Memphis Depay, Juan Mata, Ander Herrera, Michael Carrick, Ashley Young, Jesse Lingard, Adnan Januzaj, Antonio Valencia, Phil Jones and Daley Blind were also part of the proceedings at the club's Aon Training Complex in Carrington, overseen by Mourinho and his long-time assistant Rui Faria.
Not present was Zlatan Ibrahimovic, United's other new summer recruit who is currently on holiday after playing for Sweden at Euro 2016.
Other Euro 2016 participants not involved included England's Wayne Rooney, Marcus Rashford and Chris Smalling, a trio Mourinho has said will be on the club's tour of China that begins next week but not play in either of the games.
United are scheduled to face friendlies on the tour against Borussia Dortmund and Manchester City on July 22 and 25 respectively.
Friday
Euro 2016: Italy qualify for last 16
Brazil-born striker Eder overcame an otherwise patchy performance to hit a cracking late winner in a 1-0 victory over Sweden that sent Italy into the last 16 of Euro 2016 on Friday.
Eder, playing in his first major finals for Italy after being naturalised last year, came close to being substituted by Antonio Conte after a dismal opening half up front alongside Southampton striker Graziano Pelle.
But the Inter Milan striker had the Italy bench celebrating wildly on the pitch at the Stadium de Toulouse with a well-taken 88th minute strike after running on to Simone Zaza’s header to beat Andreas Eriksson at his far post.
“I’m very happy with the goal,” said Eder, who this season has struggled to make an impact at Inter Milan after moving from Sampdoria in January.
“I’m delighted for the team, and I’m very happy the coach has kept faith with me.
“I think it helped me I wasn’t playing for Inter Milan a lot at the end of the season. That helped me to save some energy for this championship and also allowed me to work a lot of my fitness.”
Italy, 2-0 winners over Belgium last week, now top Group E with six points, leaving Sweden, who had late claims for a penalty waved away, realistically needing to beat Belgium on Wednesday if they are to have any hope of making it to the knockout phase.
After a mediocre display in Sweden’s 1-1 draw with the Republic of Ireland, all eyes were on captain Zlatan Ibrahimovic as the towering striker sought to make his mark by becoming the first man to score in four editions of the competition.
But a cautious Italy restricted the former Juventus and Paris Saint Germain striker to few real chances in front of a huge army of yellow-clad Sweden fans.
Defender Giorgio Chiellini was handed that task but he said it took a concerted effort.
“You can’t afford to give strikers like him an inch. He can transform balls that most humans can do nothing with into goals,” said the Juventus defender.
“But it took the whole team to help close him down. Zlatan is 80 per cent of Sweden’s team.”
Tinubu buys 250 GCE forms for students in Lagos.
Lagos – Sen. Oluremi Tinubu (APC-Lagos Central), on Friday distributed 250 General Certificate of Education (GCE) forms to students to enable them write the examination and seek to advance their education. Oluremi Tinubu Tinubu distributed the forms at a Town Hall Meeting organised by her in Lagos with the theme: “Creating Purposeful Partnership.’’
She said the gesture was to appreciate the partnership and support of her constituency, as well as bring government closer to the people. “The purpose of this gathering, among other things, is to bring the government closer to the people. “Your cooperation and partnership over the years has been purposeful as elders, men, women and youth,’’ she said. Tinubu, while giving account of her stewardship in the senate, said she belonged to six different committees.
“I have been assigned to the following Committees: Women Affairs, Environment, Air Force, Employment, Labour and Productivity, Tertiary Institution and TETFUND as well as Constitution Amendment. “I will continue to give my constituency a great voice in the senate and be a representative you can trust and count on,’’ she said. The senator urged her constituency to continue to pray and support the present government as it strives to make Nigeria better. “All hands have to be on deck to achieve that new Nigeria we voted for. “I implore you to keep your unwavering confidence and faith in this nation and in the present government as we are all in the planting season and sooner there shall be bountiful harvest.
She said the gesture was to appreciate the partnership and support of her constituency, as well as bring government closer to the people. “The purpose of this gathering, among other things, is to bring the government closer to the people. “Your cooperation and partnership over the years has been purposeful as elders, men, women and youth,’’ she said. Tinubu, while giving account of her stewardship in the senate, said she belonged to six different committees.
“I have been assigned to the following Committees: Women Affairs, Environment, Air Force, Employment, Labour and Productivity, Tertiary Institution and TETFUND as well as Constitution Amendment. “I will continue to give my constituency a great voice in the senate and be a representative you can trust and count on,’’ she said. The senator urged her constituency to continue to pray and support the present government as it strives to make Nigeria better. “All hands have to be on deck to achieve that new Nigeria we voted for. “I implore you to keep your unwavering confidence and faith in this nation and in the present government as we are all in the planting season and sooner there shall be bountiful harvest.
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