Ifeanyi Onuba, Abuja

The Federal Government on Thursday said it would mobilise N2.5bn annually as equity investment through qualified fund managers for Small and Medium Enterprises under the Youth With Innovation Entrepreneurship programme.

The development was confirmed in a statement issued by the Ministry of Finance and signed by the Director of Information in the ministry, Mr. Salisu Dambatta.

The YouWin programme is an initiative of the finance ministry, which aims to support young entrepreneurs as they plan, start and grow their businesses.

It seeks to promote entrepreneurship as a viable career option for young Nigerians which in turn, will create jobs and wealth.

The Federal Government intends that additional impact of the scheme would include social inclusion, job creation, youth empowerment and improved human capital.

The ministry said in the statement that the need to attract co-investment funding for the SMEs under the scheme was borne out of the conviction it would help to stimulate and sustain the economic recovery plan being implemented by the Federal Government.

It said since SMEs are the engine of growth in an economy, any fund attracted to the sector would promote industrialisation and job creation.

The statement also quoted the Minister of finance, Mrs Kemi Adeosun, to have said that one of the main emphasis of government its economic recovery plan is to pursue an SME led growth in agriculture, energy, technology, manufacturing, and industry among others.

She said, “The Federal Government has a renewed focus on key economic sectors in line with the Economic Recovery and Growth Plan, with an emphasis on SME led growth in agriculture, energy, technology, manufacturing, industry and key services.

“The revival of these sectors, coupled with increased investment in other sectors, less reliance on foreign exchange for intermediate goods, raw materials and greater export orientation, will improve macroeconomic conditions, restore growth in the short term, help to create jobs and bring about structural change.”

The minister said the government is committed to empowering start-ups and early stage SMEs  by providing innovative solutions to local challenges in Nigeria.

The statement said Fund managers would be expected to demonstrate a strong track record in investing in and advising early stage SMEs, with a knowledge of diverse sectors and a clearly defined investment strategy.

This, it added, is to ensure that fund managers can actively and positively, contribute to improving business performance by bringing on-board their experiences and providing some of the required capital.

The Federal Government says it is targeting about $8bn as annual foreign exchange from the exportation of yams to other countries if its yam export programme succeeds.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said this when he received the Technical Committee on Nigeria Yam Export Programme in Abuja on Thursday.

Ogbeh said the programme to be flagged off on June 29, would enable the countryageingearn foreign exchange from agricultural produce in order to substitute the oil and gas sector.

According to him, Ghana is exporting yams but we are not, yet we account for 61 per cent of the world yam production.

“This programme has to succeed; we must sell whatever we produce to the world because we are buying too much. We allowed ourselves to be deceived.

“I saw the figures of Ghana’s earning from yam export and their targets for the future and it was quite impressive.

“If Ghana can aim at a few billion dollars a year from yams, there is no reason why Nigeria cannot quadruple that.

“I want this committee to begin to engage team of engineers anywhere in the world. Can we design a plough that can make the yam heap?

“We have to mechanise heap making otherwise, in the next five years, because of our ageing farmers, you will find out that we do not have yams again and we will get into fresh troubles,’’ he said.

Prof. Simon Irtwange, the Chairman of the committee, said that the committee was working with the International Institute of Tropical Agriculture to train farmers and also improve some yam varieties.

The chairman said the committee had prepared a four-year action plan for the yam value chain programme in the country.

He solicited for better funding for the committee which was private sector led to commence the programme.

“We have standards that we are following and they have to do with pythosanitary requirements to meet international standards.

“We have combined the standards of Ghana and Nigeria to make sure our yams are not rejected at the international markets,’’ he said.

Mrs Elizabeth Nwankwo, a yam exporter, representing Oklan Best Limited, listed some challenges experienced by exporters to include inadequate transportation and lack of quality seedlings.

She explained that inadequate storage facilities also contributed to the rejection of the country’s agricultural produce at the international markets.

Nwankwo expressed optimism that there would be zero rejection of the country’s agricultural produce if the challenges were tackled.

The committee was inaugurated in February to facilitate the acquisition of warehouses at the receiving destinations, address markets in Europe and Canada.

It will also sensitise farmers and exporters on required international standards of yam before exportation.

The committee is made up of representatives from the Nigerian Customs Service, Nigeria Agricultural Quarantine Service (NAQS) and the Nigerian Ports Authority (NPA), among others.

The Nigeria yam export programme is aimed at taking yam processing to the next level.

The Minister of Agriculture and Rural Development, Audu Ogbeh, has said the country will commence yam exports to Europe and america on June 29.

He said 72 tonnes of yam would be exported on the said date.

A statement by the Special Assistant to the minister (Media), Dr. Olukayode Oyeleye, in Abuja on Thursday, said Ogbeh disclosed this at a meeting with members of the Committee on Nigeria Yam Export Programme.

The minister said the inauguration of the yam export would be done at the Apapa Port and would be exported in three containers of 24 tonnes each.

According to him, one container will be exported to the United Kingdom, while the other two will be taken to the United States.

The minister appealed to the Nigeria Agricultural Quarantine Service to reduce inspection charges on export produce to encourage more exporters and enable the country become competitive in the export market.

“To make yam competitive, we will work on the packages and the right types of trucks to be used for transportation of the produce.

“Oil and gas cannot employ millions of people, just like agriculture; so, we must work hard to move from oil to earning foreign exchange from agriculture,’’ Ogbeh said.

The Chairman of the committee, Prof. Simon Irtwange, said they were working with the Nigeria Export Promotion Council to commence the process of the export.

An exporter, Mrs Elizabeth Nwankwo, the Chief Executive Officer of Oklan Best Limited, the move would help to rebrand the image of the nation and acceptability of the country’s produce at the international market.

The News Agency of Nigeria recalls that the committee was inaugurated in February to facilitate the acquisition of warehouses at the receiving destinations, address markets in Europe and Canada.

It will also sensitise farmers and exporters on required international standards of yam before exportation.

The committee is made up of representatives from the Nigerian Customs Service, Nigeria Agricultural Quarantine Service  and the Nigerian Ports Authority  among others.

NAN

The Nigeria National Petroleum Corporation has completed the refund of N450bn to the federation account, to be shared among the federal, states and local governments.

The Permanent Secretary, Ministry of Finance, Mr Mahmoud Isa-Dutse, made the statement on Thursday in Abuja at the monthly meeting of Federal Accounts Allocation Committee.

Isa-Dutse, who represented the Minister of Finance, Mrs Kemi Adeosun at the meeting, said that NNPC completed the payment in April this year.

Apart from oil revenue, NNPC had for 67 consecutive months, paid additional N6.33bn into the federation account to be shared among the three tiers of government.

The payment commenced in September 2011 after auditing of the accounts of the oil firm showed that it had been under remitting to the federal government.

During the FAAC meeting, a total of N462.4bn was shared as revenue among the three tiers of government.

The amount is N46.6bn more than what the three tiers of government shared as revenue in April.

Adeosun said that the N462.4bn was distributed under four distributable sub-heads.

“The distributable statutory revenue for the month is N317.6bn. There is also a proposed distribution of N64.8bn being the exchange rate differentials.

“Therefore, the total revenue distributable for the current month including VAT of N79.9 billion is N462.3bn,” she said.

The minister said that the government generated N159.9bn as revenue from minerals in May.

She said that the amount generated from minerals in the month of May was N17.7bn less than the N177.7bn generated in April.

She said that in May, non-mineral revenue increased by N61.1bn, from N96.4bn in April to N157.6bn in May.

The minister said after deducting cost of collections to revenue generating agencies, the federal government got N147.7bn; states, N74.9bn while local government councils received N57.8bn.

She said that N20.5bn was given to oil producing states based on the 13 per cent derivation principle.

She said that the balance in the excess crude account currently stood at $2.3bn.

Adeosun said that oil revenue for the month of May declined as a result of the slight drop in average crude oil price from 55.38 dollars per barrel to 55.18 dollars per barrel.

“There was also a decrease in export volume by 1.023 million barrels, reducing oil revenue by about $57.12m.

“Crude oil production suffers due to leakages, sabotage, shut-ins and shut-downs at terminals for maintenance and the Force Majeure declared at Forcados Terminal since February 2016 subsisted.

Okechukwu Nnodim, Abuja

The Federal Government on Thursday announced that it had commenced the electrification of 37 federal universities and seven teaching hospitals using off-grid captive power plants.

It said the first phase of the Energising Education Programme started with the signing of a Memorandum of Understanding between the Rural Electrification Agency and eight federal universities and one teaching hospital in Abuja on Tuesday.

The FGEEP, the REA stated, “Aims to provide uninterrupted power supply to 37 federal universities and seven teaching hospitals in Nigeria through the utilisation of off-grid captive power plants in a bid to resolve power challenges in institutions of higher learning in the country.”

The REA, which is an agency under the Federal Ministry of Power, Works and Housing, noted that the first phase of the exercise would include nine institutions, adding that it would be completed in 2018 and would benefit over 300,000 students and staff members.

“Seven of the nine planned power plants (10.5MW out of a total of 26.56MW) will be fuelled by solar energy, in line with the Federal Government’s energy mix policy,” it added.

The universities and teaching hospital that signed the MoU with the REA include the Abubakar Tafawa Balewa University, Bauchi; Bayero University Kano; Usmanu Danfodiyo University, Sokoto; and Federal University of Agriculture, Makurdi.

Others are the Nnamdi Azikiwe University, Anambra; University of Lagos, Akoka; Federal University of Petroleum Resources, Delta; as well as Obafemi Awolowo University and Obafemi Awolowo University Teaching Hospital, Ile-Ife, Osun State.

The REA observed that adequate supply of electricity had been cited repeatedly as a major challenge and barrier to effective learning in federal universities.

It said students had limited access to technical laboratories, Internet connection/online resources and high powered equipment.

“Consequently, the Federal Government is keen on facilitating the provision of dedicated and uninterrupted power supply to Nigerian educational institutions. To address this issue, the Federal Government’s Energising Education Programme was created,” it said.

Commenting on the development, the Vice Chancellor, Abubakar Tafawa Balewa University, Bauchi, Prof. Abdulrahman Ibrahim, was quoted as saying, “I believe it has the potential to do a lot for the universities. I want to commend the stakeholders for this particular innovation.”

Also, the Vice Chancellor, Federal University of Agriculture, Makurdi, Prof. Emmanuel Kucha, was quoted as saying, “We are very excited that at last we may heave a sigh of relief. So, we are happy that this programme may finally take off and our university is part of the programme from the onset.”

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Samuel Awoyinfa, Abeokuta

Ogun State Governor, Senator Ibikunle Amosun, has urged property owners who subscribed to the state’s Homeowners’ Charter to expose any corrupt officials demanding extra money outside the stipulated official charges for their Certificates of Occupancy and other title documents.

The PUNCH had exclusively reported on Monday that the scheme had been characterised by extortion, delays and failure of the government to deliver to the applicants the necessary documents years after they had paid.

The governor urged the property owners to report cases of extortion on Thursday at the Arcade Ground, Oke Imosan, Abeokuta, shortly before presenting another batch of 1,000 Cs-of-O to beneficiaries of the scheme.

The governor, who was represented at the event by the Head of Service, Mr. Abayomi Sobande, appealed to the residents and subscribers to the scheme to forward to the government any suggestions they felt could make the scheme more effective and ensure better service delivery.

Amosun assured that the government would continue to address grey areas that were causing the delay in the processing of the Cs-of-O and other documents to make it faster.

He said, “We want you to expose any corrupt official or fraudster who may demand anything outside what is required under the scheme.

“We will prosecute any official involved in corrupt practices. We will continue to look into the process so as to make it faster. We are here to serve you better.”

Echoing the governor, the Commissioner for Urban and Physical Planning, Mrs. Ronke Sokefun, urged the people to report any wrongdoing, bribery and extortion on the scheme to her ministry, the Bureau of Lands and Survey and the Ministry of Finance.

She stated that out of the over 170,000 applicants for the scheme, 35,000 have paid the required fees and over 12,000 Cs-of-O and other title documents had so far been distributed by the government.

Sokefun explained that the ministries involved in the issuance of the documents would continue to fast-track the process.

She, however, attributed the delay in the issuance of the Cs-of-O to the inability of some applicants to complete the stipulated documents.

The Commissioner for Finance, Mr. Adewale Oshinowo, said in a statement that 77 per cent of the over 140,000 applicants have had their sites inspected, while the remainder did not show up during inspection of their sites.

Oshinowo also added that out of the 77 per cent that had their sites inspected, 32 per cent could not be invoiced due to non-conformity with the pre-conditions for qualification.

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Okechukwu Nnodim, Abuja

A total of 72 metric tonnes of yam will leave the shores of Nigeria for United Kingdom and the United States of America next week, the Federal Government has said.

It stated that the commencement of the raw food exportation from Nigeria would be done through the Apapa Port in Lagos next Thursday.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, disclosed this at the end of a meeting with the technical committee on the Nigerian Yam Export Programme in his office in Abuja on Thursday.

Ogbeh noted that of the 72 metric tonnes to be exported in three containers of 24 metric tonnes each, one container would go to the United Kingdom, while the other two would go to the US.

The minister, according to a statement issued by his Special Assistant on Media and Communications, Dr. Olukayode Oyeleye, assured the exporters of the government’s support and promised those who led the effort that everything spent would be refunded.

On how to make money from Nigeria’s agricultural export, Ogbeh said, “We must sell all we can to the world. We account for over 60 per cent of yam production, yet people do not know that we grow yam.”

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Everest Amaefule, Abuja

More than two years after the present administration assumed power, the Federal Government finally reconstituted the National Council on Privatisation on Thursday in Abuja.

Speaking at the inauguration, Acting President Yemi Osinbajo said the council had since inception handled the privatisation and reformation of 142 public enterprises.

The Head of Public Communications, Bureau of Public Enterprises, Mr. Chukwuma Nwokoh, disclosed this in a statement made available to our correspondent in Abuja.

The NCP is usually chaired by the Vice President and supervises the work of the BPE and approves every privatisation transaction before it can be deemed to have gone through the established process.

Our correspondent had reported that the absence of the council in the last two years had hampered the privatisation transactions that had been on the schedule, with some government agencies hijacking some privatisation responsibilities.

Osinbajo said that the council had since establishment by Decree 25 of 1988 successfully concluded the privatisation and reform of over 142 public enterprises.

He pointed out that the inauguration of the NCP was a critical step in the process of putting in place part of the institutional framework necessary for the actualisation of the socio-economic agenda of the present administration.

He added, “It is also a demonstration of our administration’s commitment to public sector reform and the central role of the NCP in this process.

“Even though the public sector has been at the centre stage in the provision of critical infrastructure and services cutting across the whole spectrum of the nation’s life since independence, the emerging importance and centrality of the private sector to the actualisation of the economic agenda of the administration cannot be downplayed.”

The Acting President also said, “The government expects the NCP to come up with creative out-of-the box solutions for addressing the numerous challenges facing the privatisation and commercialisation programme such as non-performance by some privatised enterprises and post-privatisation challenges facing some of the privatised enterprises.

“The government also expects the NCP to make measurable progress in respect of the outstanding transactions affecting some of the areas critical to the economic recovery of the nation. You must make deliberate and conscious efforts to learn from past experiences and guard against avoidable mistakes of the past.

“A mega reform process in the power sector is ongoing with ambitious expectations. Although there are numerous challenges trailing the process, the NCP is expected to critically analyse these challenges and come up with sustainable solutions as part of the government’s commitment to make power available at accelerated rates and to wide sections of the populace.”

Osinbajo said that apart from playing a dominant role of generating employment opportunities, the intervention of the private sector enhances the process of industrialisation, and delivers critical infrastructure and services to the country.

He stated that the role could only be unleashed when the government’s duty of regulating and creating an enabling environment was robustly undertaken.

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’Femi Asu

The Ibadan Electricity Distribution Company on Thursday stated that it would spend a total of N5bn to audit its assets and enumerate customers on its network, as part of measures to provide better services.

Following the privatisation of the nation’s electricity and distribution companies in November 2013, the core investors in the firms were expected to carry out asset and customer enumeration.

The Managing Director, IBEDC, Mr. John Donnachie, said at a briefing in Ibadan that it had taken the company a long time to get around the project because of the cost.

He said the liquidity challenge in the sector had made it difficult to fund projects, adding, “Our tariff and our collection issues don’t allow us to make enough revenue. We lose over N4bn a month. The cost of running this business, including the accumulated cost of fund, is over N70bn. So, what we are trying to do is to prioritise our key projects.

“The asset and customer enumeration project is a N5bn project that will span over two years. It is the technical audit of our assets and the data capturing of existing and prospective customers. It also involves the identification of developed, undeveloped and vacant properties within our franchise.”

The IBEDC’s franchise area spans Oyo, Ogun, Osun, Kwara as well as parts of Ekiti, Niger and Kogi states.

Donnachie said the pilot exercise would commence in Ibadan-Elebu from June to August, adding that the company had engaged Exernegia-Geotechnics Consortium to carry out the exercise across the franchise areas.

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Femi Makinde, Osogbo

The newly resuscitated Osun State Cocoa Processing Industry in Ede has started processing cocoa in line with the industrialisation plan of the current administration in the state.

The company, which was inaugurated on October 17, 1982, had stopped production in 2001 due to obsolete equipment and management issues.

The Commissioner for Industries, Commerce, Cooperatives and Empowerment in the state, Mr. Ismail Alagbada, however, said the company was now processing 20,000 tonnes of cocoa on a daily basis.

He stated that the Aregbesola administration in partnership with Golden Monkey of China revived the company and brought it back to start production.

This, he said, was meant to ensure that it started adding value to cocoa instead of exporting it overseas in its raw form.

The commissioner said, “At present, the company is processing 20,000 tonnes of cocoa  into cocoa liquor for both local and international consumption, thus increasing the production capacity of the company by 400 per cent from 2001 period.

“The revival of the CPI is part of the realisation of the industrialisation plan of the current administration, to put the company into effective use for optimum performance.

“The commissioner will soon begin the production of cocoa powder and cocoa cake, stressing that no fewer than 200 employments have been generated since the revival of the industry.”

Alagbada explained that more workers would still be recruited as expansion of the company was being carried out.

He disclosed further that going by the new arrangement, the state government owned 30 per cent equity, which gives it a 30 per cent revenue derivable from all resources and funds generated in the plant.

 “Through this partnership, many people in Osun will learn the trade of cocoa processing. The possibilities are just endless. At least, now, our people know that more value accrues to them if they process cocoa rather than exporting in its raw form,” he added.

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Ifeanyi Onuba, Abuja

The Nigerian National Petroleum Corporation has finally offset its indebtedness of N450bn to the Federation Account.

The Permanent Secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, confirmed the development at a media briefing shortly after the Federation Accounts Allocation Committee meeting in Abuja on Thursday.

The N450bn indebtedness has been a subject of controversy since 2010 following discoveries that the corporation failed to remit part of the revenue it generated for the country to the Federation Account.

The corporation had failed to remit the money despite persistent pressure mounted by the then Chairman of FAAC and former Minister of State for Finance, Mr. Remi Babalola.

While the NNPC had claimed that it was insolvent, and as such, did not have the resources to settle the debt, Babalola had maintained that the fund must be remitted.

The wrangling led to the redeployment of the minister to the Ministry of Special Duties, a development that led to his resignation in 2011.

However, after much pressure by state governors, the corporation agreed to a monthly repayment plan of N6.33bn from September 2011.

Speaking after this month’s FAAC meeting held at the headquarters of the Ministry of Finance in Abuja, Dutse said, “As regards the NNPC repayment, the figure is zero because the NNPC has finished making the payment that they are supposed to make.”

He said the committee shared the sum of N462.4bn among the three tiers of government as statutory allocation for the month of May.

The amount was N46.6bn higher than what was shared in April.

Dutse said, “The distributable statutory revenue for the month is N317.6bn. There is also a proposed distribution of N64.8bn, being the exchange rate differentials.

“Therefore, the total revenue distributable for the current month, including Value Added Tax of N79.9bn, is N462.3bn.”

He added that the government generated N159.9bn as minerals revenue, which was a reduction of N17.7bn from the N177.7bn generated in April.

The permanent secretary added that after deducting the cost of collection for the revenue generating agencies, the Federal Government got N147.7bn; the states, N74.9bn; and local government councils, N57.8bn.

In addition, he said the sum of N20.5bn was given to the oil producing states based on the 13 per cent derivation principle.

On the balance in the Excess Crude Account, Dutse stated that it currently stood at $2.303bn.

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’Femi Asu with agency report

Julius Berger Nigeria Plc, the largest construction company in Nigeria by market value, plans to acquire oil assets and expand into the power industry as it seeks to diversify its business and stay competitive after the country’s worst economic slump in decades.

Bloomberg quoted the company’s managingadirector, Wolfgang Goetsch, as saying in an interview in Abuja.

The company, which derives two-thirds of its earnings from government contracts, is also considering bidding for business in other countries in the region, such as Ghana, Benin and Ivory Coast, where it has conducted market studies.

Goetsch said, “Within Nigeria, we aim to diversify our business beyond our core competence of civil engineering, looking into power and oil and gas, or to diversify outside the country, but only in our core business.

“We believe with strategic partners that we are more attractive to clients who want to have a whole industrial or power plant.”

Julius Berger, operating in the country since 1965, saw its earnings slide as Nigeria fell into its worst economic slump in a quarter century amid lower oil prices and a shortage of foreign exchange.

Julius Berger was “really hurt” as it struggled to raise funds from the parallel, or street markets, to meet its foreign exchange obligations and was forced to restructure and cut costs, Goetsch said.

“This was very difficult, it still is. It was a struggle to survive. It is now much better, if you look at the statistics. The gap between the central bank rate and the parallel market window is much smaller now and availability is much better,” he stated.

Julius Berger’s 2016 full-year profit of N3bn is more than 60 per cent lower than the annual net income it earned in the three years before the economy suffered contraction in 2015. The stock fell by five per cent to close at N41.52 in Thursday’s trading in Lagos. It has gained eight per cent this year compared with a 23 per cent surge of the Nigerian Stock Exchange Main-Board Index.

The company on June 19 said it had formed a partnership with Petralon Energy to work on oil fields in the Niger Delta. It is currently in talks with about eight power industry investors to build generating plants, Goetsch said without providing details because the negotiations are still confidential.

Negotiations for new projects are now mostly about agreements on the foreign currency component of the contracts, Goetsch said.

“Eighty per cent of the negotiation is just to find an agreement on the currency, which in the past was a minor issue and one of the last points. Now, it’s always the first point because this is a risk that really can kill a company,” he added.

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Akinpelu Dada and Ozioma Ubabukoh

The controversies surrounding Etisalat Nigeria’s indebtedness to a consortium of 13 banks deepened on Thursday with the telecoms firm insisting that it had repaid about 42 per cent of the $1.2bn loan, while some of the banks involved in the transaction maintained that it had “only paid $58.9m.”

Sources privy to the series of meetings between Etisalat and the banks, said that the $58.9m was just 10 per cent of the total sum owed the consortium by the telecommunications company.

However, Etisalat Nigeria said in a statement by its Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko, “Contrary to the widely reported misrepresentations about Etisalat Nigeria’s debt obligation to the consortium of 13 banks, it has become pertinent to set the records straight. Prior to this time, Etisalat had in fact consistently and conscientiously met up with its payment obligations.

“As of today, we can categorically state that the outstanding loan sum to the consortium stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US dollars. This, in essence, means almost half of the original loan of $1.2bn has been repaid. Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced.”

One of the bank officials said, “Etisalat has over $600m debt due to creditors, distributors and vendors like Huawei Technologies and IHS.

“Rather than map out a plan to pay the 90 per cent that is remaining of its debt to the consortium of banks, it asked the banks to stand still and write it off as a bad debt after it paid $58.9m.”

However, Dikko told one of our correspondents that the firm had paid about $574m, which was known to the Central Bank of Nigeria and the regulator of the telecoms industry, the Nigerian Communications Commission, adding, “That’s the figure we have in our books and which we reported to the regulators.”

However, the bank officials dismissed reports that the lenders had taken over the running of Etisalat operations.

One of the sources explained, “That can’t be true, because there is no legal takeover, neither has there been any operational takeover.

“For you to legally take over a company, you have to go through the courts and the Corporate Affairs Commission; and for you to take over operationally, there has to be a change of management structure. But none of these has happened.

“The banks, at the last meeting with the Etisalat management, made it clear that they were not interested in taking over Etisalat and they would never be interested. What they want is nothing but their money in full and the full interest charges.”

The officials also stated that the banks had been fair to the telecoms company by making the payment plan flexible.

“They reduced the debt burden by between 20 and 30 per cent. The banks also agreed that they would ask for discounted rate on the interest rate by six per cent, to cushion the effect. They banks also asked them to pay over an eight-year period,” the source added.

Dikko also denied reports that the management of Etisalat Nigeria was being investigated by the Economic and Financial Crimes Commission following a petition to “the Federal Government asking that Etisalat be investigated” on how the funds from the syndicated loans were utilised.

He stated, “Etisalat wishes to categorically affirm, for the avoidance of doubt, that the reports are patently false and most unfortunate considering the damage such misleading information can have not only on our business, but indeed on the telecommunications industry and the country as a whole.

“Concerned parties have access to our books and do not require an investigation into how the loan sum was utilised. All of the infrastructure investment and services for which the loan was secured were paid through our banks and these are verifiable.

“It will be recalled that the $1.2bn loan, a medium-term seven-year facility, was obtained by Etisalat Nigeria for the purpose of expanding its network and improving the quality of service on its network. The economic downturn of 2015 and sharp devaluations of the naira negatively impacted on the dollar-denominated loan by driving up the loan value, thus prompting Etisalat to request a loan restructuring from the consortium of banks.”

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Nike Popoola

The Group Managing Director, Continental Reinsurance Plc, Dr. Femi Oyetunji, has said the capacity of African insurers and reinsurers can only be enhanced if they are patronised.

He spoke on the impact Continental Re has made in Nigeria and the African continent in the 30 years of its existence according to a statement.

According to Oyetunji, over the years, two big global insurance companies write over 30 times more business than all African reinsurers and insurers put together.

He said, “The argument in support of that is that local insurers do not have the capacity. However, without giving any of the projects to African carriers, that situation can never change.”

Oyetunji applauded the stance of insurance regulators, who were keen to see an increase in the market shares of local players, with foreign carriers picking up once local capacity was exhausted.

He pointed out that the message should be reinforced at the government level because too many projects were being agreed at the highest levels.

While mentioning some of the giant strides of the company in the past three decades of its existence, he said Continental Re had provided support to over 200 insurance companies in Africa, with its main offices in Nigeria, Cameroon, Kenya, Côte d’Ivoire, Tunisia and Botswana.

According to him, the firm has a specialist subsidiary, Continental Property and Engineering Risk Services, registered in South Africa.

Oyetunji said Africans must find solutions to their challenges because some vested interests from outside the continent have no interest in Africans doing things for themselves.

He observed that the answer to many of African insurance market’s dilemmas lied in greater collaboration.

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Ifeanyi Onuba, Abuja

The Standards Organisation of Nigeria has said it will soon commence the certification of the services offered by the Micro, Small and Medium-scale Enterprises such as barbing, tailoring and masonry.

Others are cobbling, events management, automobile maintenance, car wash and carpentry, among others.

The Director-General, SON, Mr. Osita Aboloma, disclosed this in a chat in Abuja during the celebration of the 2017 African Day of Standardisation.

The theme of this year celebration was, “The role of standards in promoting women’s rights.”

According to the SON boss, the aim of the certification is to improve the quality of services rendered by the practitioners so as to satisfy the needs of consumers, create orderliness and enhance competitiveness that will promote continuous improvement.

He said, “Our own business is to ensure provision of safe foods, buildings that do not collapse killing people, clothing that do not cause skin irritations among others. Our watchword is quality and we will be unrelenting in this drive.

“In furtherance of this drive, SON is in the process of the commencement of the certification of services offered by the MSMEs like barbing, tailoring, masonry, cobbling, events management, automobile maintenance/repairs services, car washing, carpentry etc.

“The aim is to improve the quality of services rendered by the practitioners to satisfy the needs of consumers, create orderliness and enhance competitiveness that will promote continual improvement.”

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’Femi Asu with agency report

With Nigeria’s oil output recovering to its highest level in more than a year, industry analysts have raised concern over the country’s exemption from the production cut deal reached by the Organisation of Petroleum Exporting Countries and other producers.

The deal called on OPEC to cut 1.2 million barrels per day and 10 major non-OPEC countries, led by Russia, to cut a collective 558,000 bpd until March 2018.

Output from Nigeria plummeted to near 30-year low of around 1.2 million bpd in 2016 from 2.2 million bpd previously, as attacks on oil facilities in the Niger Delta rose at an alarming pace due to resurgence of militancy.

But Nigerian crude oil production in May jumped to 1.73 million bpd, up by 80,000 bpd from April, its highest level since March 2016, according to the most recent S&P Global Platts OPEC survey.

Since then, the Forcados’ resumption of production has boosted flows and production is expected to increase even further this summer, according to recent loading programmes.

Exports of crude oil and condensate are set to jump to over two million bpd in August, making it the longest loading programme in 18 months, according to the Platts estimates.

With output of crude and condensate now near its full capacity of 2.2 million bpd, Nigeria, which is exempted from the current OPEC cuts, could be asked to join the deal if the recovery continues.

In late May, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, acknowledged that Nigeria had a “responsibility” to join in the OPEC-led output cuts should its crude production returned to 1.8 million bpd.

With Nigeria’s production of condensate averaging around 300,000 to 400,000 bpd, it looks like this milestone might be reached sooner than expected.

“If they hit 2.1 or 2.2 (million bpd) and we get through the summer and potential situation with the [president’s] health, and it looks like production is stable, at that point you consider making them make the same level cuts as everybody else,” the Head of Commodity Strategy, RBC Capital Markets, Helima Croft, said.

Some analysts said that one of OPEC’s mistakes when it granted exemption to Libya and Nigeria was that it failed to outline conditions when the two countries would be brought back, which was “contributing to a credibility gap.”

“The increase in output of both these countries has exceeded expectations among the vast majority. For OPEC not to devise a strategy for this has damaged market sentiment,” a geopolitical analyst at Energy Aspects, Richard Mallinson, said.

The OPEC and non-OPEC cuts have failed to have the desired effects so far, with oil inventories not falling at a preferred pace and prices now hovering at seven-month lows.

But despite strong OPEC and non-OPEC compliance, surging US shale output and stubbornly high US inventories have led to bearish sentiment.

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Everest Amaefule, Abuja

Some Ministries, Departments and Agencies of the Federal Government have defrauded the country through the purchase of Information and Communications Technology services and equipment, the Director-General, National Information Technology Development Agency, Dr. Isah Ibrahim, has said.

Ibrahim said this when he led a management team of the NITDA to the Economic and Financial Crimes Commission,.

In a statement by the Head, Corporate Affairs and External Relations, NITDA, Hadiza Umar, in Abuja on Friday, Ibrahim was quoted as saying that an alliance between the EFCC and the NITDA had become imperative in the face of wanton corruption being perpetrated by the MDAs through the IT procurement.

He said the MDAs were able to use the procurement of the IT products and services to perpetuate fraud because most of the projects passed through less scrutiny during budget defence at the National Assembly.

This, Ibrahim said, was so because expertise was required to ascertain the needs and specifications of the IT requirements.

The NITDA boss said, “Many of the MDAs consider the IT projects as conduit pipes to siphon public funds and I believe partnering the EFCC will bring sanity to the sector and by then the commission will be empowering the NITDA in strengthening its regulatory function through which it will also be developing and promoting local content in the IT sector.

“The EFCC may help in asking the MDAs to produce procurement clearance issued by the NITDA during their investigations. Supporting the NITDA will go a long way in blocking loopholes in the IT procurement.”

Ibrahim said the two organisations could form a working group, which would also serve as a desk to deal with sharp practices in the IT procurement.

He said the NITDA had been empowered to subject the IT procurement to value-for-money analysis, reduce projects duplication, justify the spending of public funds on the IT projects and to advise the MDAs on the alternative options of the IT products and services with a view to reducing cost, especially on the sharing of software among the MDAs.

The NITDA boss commended the Acting Chairman of the EFCC, Mr. Ibrahim Magu, for what he described as his doggedness, fearlessness and outstanding performance in acting capacity, adding that the feat could have taken some people 20 years to achieve in substantive capacity.

In his remarks, Magu expressed happiness about the visit and pledged that the EFCC would be “complying with the NITDA’s request” to bring some level of sanity to the procurement of the IT products and services by the MDAs.

Magu also pledged that the EFCC would comply with government’s directive on the procurement of the IT equipment and services in order to be an example to other organisations in the public service.

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Local economy news

Freshly released real sector data by the National Bureau of Statistics showed that Nigeria’s National Disposable Income at 2016 purchasers’ value increased year-on-year by 3.89 per cent (and quarter-on-quarter by 12.35 per cent) to N19.15tn in Q3 2016.

The y-o-y increase in the NDI resulted from improvement in primary (factor income) and secondary income (transfers) from abroad.

Specifically, “Other current transfers from the rest of the world” spiked y-o-y by 75.68 per cent to N2.52tn; “compensation of employees from the rest of the world” increased y-o-y by 54.03 per cent to N25.96bn; while “property & entrepreneurial expenses to the rest of the world” (i.e. income paid to foreigners) declined y-o-y by 49.43 per cent to N97.15bn. These offset a 5.04 per cent y-o-y decrease in “net taxes on products” to N220.53bn and a 2.71 per cent y-o-y decline in “domestic factor income” to N16.48tn of which “operating surplus” declined y-o-y 0.98 per cent to N12.94tn and “compensation of employees” fell y-o-y by 8.55 per cent to N3.54tn.

In the review period, real the GDP measured by expenditure approach showed that the Domestic Absorption–comprising final consumption by households, general government plus net investments by corporations – decreased year-on-year by 4.77 per cent to N13.58tn.

Equity market-listed securities on NSE

The Nigerian equity market succumbed to profit-taking activities by investors as the twin market indicators slumped, surrendering the gains garnered in the previous trading weeks.

Consequently, the NSE ASI and Market Capitalisation depreciated significantly by 4.99 per cent (499 basis points) week-on-week to close at 32,122.14 points and N11.107tn respectively. With this, the NSE ASI has now delivered a positive YTD return of 19.53 per cent

In a related development, Conoil Plc (12 months, December 2016) recorded a 28.53 per cent increase in gross earnings to N24.47bn and recorded N173.00m in profit after tax representing a 118.38 per cent increase from the previous period.

This week, we expect a mix of profit taking and bargain hunting activities amidst improved investors confidence

NASD –Unlisted securities

The northward trek in the key performance indicators of the NASD OTC market continued as the twin market indicators closed on a promising note. Consequently, the Unlisted Securities Index and Market capitalization appreciated significantly by 1.73 per cent to close the week at 654.42 points and N442.87bn, respectively.

Money market

The OBB and Overnight rates opened the week at 30.00 per cent rose to 70 per cent and eased at the end of the week to close at nine per cent due to OMO maturities.

During the week, FAAC met and approved N462.359bn for the month of May.

In the coming week, rates may nosedive slightly as FAAC inflow of approximately N462.359bn is expected to hit the system. We also expect the CBN to mop excess liquidity by way of OMO auction

Treasury bills market

It was a relatively quiet week in the treasury bills space with yields trading sideways across the short and mid dated maturities. The week started with some sell off on the short dated papers (July 2017), however it closed with a rally on the mid dated papers following the credit of OMO maturities of approximately N152.00bn to the system on Thursday. On the average, yields on the short and mid-dated papers closed at 17.30 per cent & 18.10 per cent from last week’s levels of 18 per cent & 18.50 per cent. There was very little activity on the long dated papers, which closed at 18. 50 per cent.

In the just concluded week, the Central Bank of Nigeria auctioned treasury bills via primary market, viz: 91-day bills worth N28.122bn (Stop Rate, SR, fell to 13.499 per cent from 13.50 per cent) 182-day bills worth N43.837bn (SR rose to 17.50 per cent from 17.30 per cent) and 364-day bills worth N61.287bn (SR fell to 18.6499 per cent from 18.6899 per cent) which outstripped inflows via matured treasury bills worth N104.679bn.

With anticipated FAAC inflows of approximately N462.359bn and OMO maturities of N236.00bn hitting the system next week, the rally on the short and mid dated papers should persist. However, we also expect an aggressive mop up stance by the CBN to maintain an optimal level of money supply.

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Ifeanyi Onuba, Abuja

The Federal Government has issued a warning to the chief executive officers of all its Ministries, Departments and Agencies against inflating their personnel budgets for the 2018 fiscal period.

The move is part of the measures aimed at checking cases of ghost workers as well as reducing the rising wage bill, which accounted for about N1.88tn or 63 per cent of the recurrent non-debt expenditure of N2.99tn in the 2017 budget.

The warning is contained in the 2018 Personnel Budget Call circular issued and personally signed by the Minister of Budget and National Planning, Senator Udo Udoma.

The circular with reference BD/2000/EXP/S.651 was sent to the Chief of Staff to the President, the Deputy Chief of Staff to the Vice President, all ministers, the Secretary to the Government of the Federation, all service chiefs and the Inspector-General of Police.

Others are the Head of the Civil Service of the Federation, all chairmen of commissions, all permanent secretaries/heads of extra-ministerial departments and the Auditor-General for the Federation.

The minister said since the Federal Government had commenced the preparation of the 2018 budget, the circular was issued to provide special instructions to all the senior officials of government agencies charged with the responsibility of preparing and submitting their personnel budgets.

Udoma in the circular said it had become necessary to commence the preparation of the 2018 budget early in order to ensure adequate budgetary provisions for personnel cost.

To guide against the insertion of extraneous items in the budget, the minister said the payroll templates for all the MDAs had been prepared using applicable salary structures as approved by the National Salaries, Incomes and Wages Commission.

He emphasised the fact that payment of salaries and allowances were for members of staff only, warning that “any extraneous payments from personnel costs will attract appropriate sanctions.”

The circular said, “The payroll templates for all MDAs have been prepared using applicable salary structures as approved by the NSIWC.

“Therefore, you are required to complete the personnel template in line with extant rules and regulations. Only persons employed in the public service of the federation should be on the nominal roll.

“Staff due for retirement as of December 31, 2017 should not be included on the nominal roll. Please, check this carefully as violations will be treated as wilful introduction of ghost workers.

“A list of all members of staff due for retirement as of December 31, 2017 must be attached separately with your submission to the Budget Office of the Federation. The list will be cross-checked against the existing nominal roll with the BOF.”

Udoma informed the head of agencies of government that they were to assign non-regular allowances only to employees who were clearly entitled under the terms of service.

He stated, “The MDAs are required to reflect appropriate grade level/step for all the workers, including provisions for annual increments.

“The MDAs are not required to provide for promotions of their workers taking effect from January 1, 2018 because such promotions cannot be predicted with certainty.

“Any new hire/recruitment included must be supported with all necessary approvals, including prior clearance by the BOF for the MDAs to recruit new employees. This is to ensure provision of adequate funds for their emoluments.”

He also said, “Consultants, contract workers and legionnaires should not be included on the nominal roll as they are not permanent and pensionable members of staff of the Federal Government.

Udoma had during the public presentation of the 2017 budget assured workers that the Federal Government had no intention of sacking its employees during the year and would continue its recurrent obligations, including meeting the personnel cost.

He, however, observed that there would be prudent management of overhead costs in order to provide adequate funds to execute capital projects.

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