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NNPC, DPR intensify clampdown on errant stations

By ‘Tope Fasua The visits, facilitated by the So long as a story touches a The NNPC GMD ordered an on- tackle smuggling of dispensing at its mega
operatives of the Nigerian sentimental nerve in us – tribe or the-spot dispensing of the product petroleum products, cross- station on Lagos Road, Port
religion – we lap it up. We are like the
A team of Nigerian Security and Civil Defence in the storage tank free to border activities and Harcourt, due to a fire which
warrior that goes to war with blinding
National Petroleum Corps (NSCDC), led to the tears dripping from his eyes. Perhaps motorists in conformity with extant diversion of products would occurred near the station.
Corporation (NNPC) and clampdown on a notorious that is why we often lose. The truth is sanction for such misdemeanour . be curtailed, thus allowing
the Department of outlet in Kubwa District where that we should have by now Nigerians to benefit from the The fire resulted from a
Petroleum Resources (DPR) petrol was being sold at N250
developed barriers to stories that NNPC’s Group General Manager massive injection of fuel in Toyota Camry car which
play up our sentiments and they (Public Affairs) Mr. Ndu Ughamadu the last few weeks. exploded outside the station.
officials, led by NNPC per litre, a price well above the should be the last that we believe,
Group Managing Director told reporters yesterday that Baru Also yesterday, the NNPC
approved retail price of because they are often designed to
said with the Presidency’s announced the temporary Although the fire did not
Maikanti Baru, yesterday N145/litre. mislead. Why would we be willingly
misled? On social media for the past directive for security agencies to suspension of products affect the station, the
continued its unscheduled
corporation noted that it was
visits to filling stations in imperative to suspend
the Federal Capital operations to enable security
Territory (FCT) suspected
to be involved in underhand
dealings.
Naira appreciates to N360.7/$ in I&E - Page 4 agencies clear the traffic at
the scene.

DECEMBER 28, 2017 VOL 04

FINANCIAL WATCH
Bringing all your financial & business news

CBN suspends new clearing rules for banks- Page 8


New Policy Takes effect from January 2 CBN to maintain Settlement Account for commercial bank only
By Ezekiel Enejeta Foreign Trade and Exchange
Guideline, says it can only
The Central Bank of Nigeria maintain a Settlement Account for
(CBN) has suspended a review a commercial bank that provides
settlement banking arrangement clearing collateral of not less than
to all clearing sessions for banks N15 billion worth of treasury bills.
and merchant banks, expected to The regulator said achieving the
begin January 2. benchmark gives a bank the right
to engage in clearing and
In a circular to all banks and the settlements operations in the
Nigeria Interbank Settlement country.
System (NIBSS), CBN Director,
Banking and Payments System Fatokun had in an earlier circular
Department, ‘Dipo Fatoku, said: issued last month, said it was
“Please note that the new policy on imperative for the banks to extend
extension of settlement banking to the settlement banking
all clearing sessions with effect arrangement to all the clearing
from January 2, 2018 is hereby sessions. Specifically, he said the
suspended until further notice.” settlement of settlement banks
only. ...Continue on Page 8
The apexbank’s Monetary, Credit,

Oil hits approximately $67 highs


on Libyan pipeline blast
By Princewill Ekwujuru Being held down for years by

LAGOS—OIL prices have


touched two-and-a-half year
conflict and unrest.

Brent crude, the international


LASG pays N325m insurance benefit to beneficiaries
By Cynthia Adigwe Onanuga said that the state government through the
highs in light volume boosted by benchmark for oil prices, has risen
an explosion on a crude pipeline Commission will not rest on its oars until an employee who
to $66.76 a barrel. Prices hit a Lagos State government has paid insurance benefit of N325
retires gets his accrued pension rights almost immediately he
in Libya and voluntary Oil session high of $66.83 a barrel. million to 104 beneficiaries of deceased employees in the
exits from the service.
Producing Exporting Countries, mainstream civil service from August 2015 till date.
OPEC-led supply cuts. U.S. crude climbed to $59.76 a
barrel after touching a session Onanuga advised retirees on the two different benefit options
Director General of Lagos State Pension Commission,
Libya has lost around 90,000 bpd high of $59.86. open to them for receipt of monthly pension, stating, “Please
LASPEC, Mrs. Folashade Onanuga, disclosed this at the
of crude oil from a blast on a take time to decide which payment option between the
presentation ceremony of retirement bond certificates to
pipeline feeding Es Sider port, a programmed withdrawal and life annuity you would prefer
batch 46 of contributory pension scheme retirees in Lagos
before you go for it. There are different types of life annuity
Libyan oil source said, adding The impending restart of a key recently.
arrangements i.e. level or increasing annuity benefits. So
that NOC was still assessing the North Sea pipeline, Forties, request for advice from your annuity service provider if your
damage, according to Reuters. limited the rally. Onanuga said, “The State, through the Commission has paid
choice is annuity plan.
to 104 named beneficiaries of deceased employees in the
mainstream civil service, insurance benefit of N325,
A Libyan military source said The pipeline is being tested after 000,000.00 from August 2015 to date. This insured death
earlier that armed men had repairs and full flows should For those who wish to opt for the programmed withdrawal
benefit is by law to be paid to named beneficiaries to
planted explosives at the arrangement by Pension Fund Administrators, the National
resume in early January, its alleviate the immediate needs of the family members. From
Pension Commission has released the template that allows
pipeline. The country’s output operator said. The producers have January, 2017, the responsibility of payment of the insured
all retirees under the programmed withdrawal arrangement
had been recovering in recent extended the supply cut agreement death benefit has been ceded over to the insurance
to be eligible for increase in pension received based on the
months after to cover all of 2018. department of the Ministry of Finance.”
growth in funds under management.”

Arms importation: Customs, agents trade blame over use of scanners at Apapa port
By Fisayo Soyombo The Public Relations Officer of the “For example, now in APMT, customs wants repair it as many as they can because Okay. If they are okay, let them use it
Command, Nkiru Nwala, who told to scan 100 in a day, but that can only they have to also load back the container.” now because they (Customs) do the
Amidst recent upsurge in the importation Maritime Vanguard that the claim of happen based on the number of containers maintenance. They are making money
of arms and ammunition into the country, abandonment of the scanners is incorrect, that APMT can drop at the time they want Asked how many containers are scanned on that side and they do not want
maritime industry stakeholders are in explained that of the two scanners it. Some it is not just a decision that daily, she said “Between 30 and 50, Let us people to know that these things are not
tango over usage of scanners at the available, only one is working and the use customs take.” assume 50”, she concluded. working. Okay if they are working why
nation’s seaports. of the scanner is dependent on how many are they not using them?”
containers the terminal operators are able On how many containers the Command Similarly, former Chairman of the
to position for the purpose. scans daily, she said, “It depends on how National Council of Managing Directors of When asked of the possibility of the
While the Tin-can Island Command of the many containers the terminal operator is Licensed Customs Agents, NCMDLCA, Service deliberately not using the
Nigeria Customs Service, NCS, claimed able to drop (scanning) per day. It depends Apapa chapter, Tanko Ibrahim, said it is scanner because they do not want to use
that they scan between 30 and 50 She stated: “It depends on how many your on how many are at work per day. It is not not true that the Tin-Can Customs are scanners as they prefer 100 percent
containers daily, the clearing agents on the terminal is able to drop a day. There are like today it must be this, tomorrow it must using the scanners because they are not examination, he said, “I disagree with
other hand said that the scanners are not things you need to understand about the be that. It just depends on the number of in good working condition. that. The scanning machine is even
being used. mechanisms of the work in the ports. working folk-lift that they have. If it is not better than the 100 percent
working for that day, they will have to In his words, “The machines are not ...Continue on Page 7

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FINANCIAL WATCH DECEMBER 28, 2017
NEWS

MLF boosts
more SMEs, NSE to introduce guidelines on derivatives trading Obasanjo becomes UN
envoy to Liberia
launches By Ezekiel Enejeta By Haruna Magaji
social-financial
The Nigerian Stock Exchange, NSE, said UN Secretary-General, António Guterres, has
media platform it would soon introduce guidelines for announced that he is sending former Nigerian
creation, listing and trading of derivative President Olusegun Obasanjo to Liberia to
By Ezekiel Enejeta support the transfer of power peacefully to a
products on its platform.
democratically-elected president.
Many registered members of
the My Liberty family ( Another Nigerian former leader, Goodluck
MLF ) scheme The Exchange disclosed this in a notice Jonathan is at present in the country, at the
(Libertarians) have become
signed by Tinu Awe, General head of a monitoring group.
first time millionaires.
Counsel/Head Regulation of the NSE. The
Exchange said the framework would also Guterres, who announced Obasanjo’s
The Chief Executive Officer appointment as an envoy on Wednesday in
of MLF Mr. Ben Adesokan, regulate the activities of the trading
New York through his spokesperson,
stated this in a statement members and other market participants in Stephane Dujarric, also welcomed the
on the company’s one year the Exchange Traded Derivatives market. peaceful conduct of the second round of the
anniversary held in Lagos. presidential election in Liberia.
According to the Exchange, the plan is in
He said, unlike other multi- Liberians on Tuesday, voted in a second round
level marketing scheme
line with its objective of increasing the
number of asset classes traded on its of elections, deciding between Vice-President
which empowers a few early Joseph Boakai and George Weah, a politician
registered members and platform and in recognition of the need for
and former soccer star.
keeps others as slaves, MLF risk management.
was created to help This would be Liberia’s first peaceful transfer
Libertarians receive It noted that the creation would facilitate which negatively impacts investor times of stressed economic and of power from one democratically-elected
financial support from other confidence, and trading volumes. market conditions.
hedging of investment risks and leader to another in more than 70 years.
family members
diversification of asset portfolios within Derivative instruments enable investors
(Libertarians) without “The Secretary-General hopes that the will of
enslaving any. the market. to hedge their portfolios against adverse The NSE added that absence of
price movements which can result in derivatives products also result in the Liberian electorate will be respected and
that a seamless transfer of power will take
According to him, MLF It said: “In the cash markets, investors are unexpected losses”. lack of confident market participants
place within constitutional timelines,” the
believes that poverty is not typically exposed to asset price risk. In the and volatility in Exchange’s revenue. statement said.
African. It also believes that absence of short selling and the supportive Highlighting some of the disadvantages of
Small and Medium Scale absence of derivatives instruments in a A derivative is a contract between
securities lending options, investors are Guterres had requested Mr Obasanjo, who is
businesses (SMEs) are the
highly susceptible to significant stock market, the Exchange said that the two or more parties whose value is a member of the Secretary-General’s High-
country’s growth engine. Level Advisory Board on Mediation, to travel
diminution in portfolio values once there absence contributes to persistent inability based on an agreed-upon underlying
of risk-averse economic agents to guard financial asset (like a security) or set to the capital, Monrovia, from Thursday, Dec.
Adesokan also noted that is a reversal of a bull trend.
28 to Saturday, Dec. 30 Dec.
SMEs are essential themselves against uncertainties arising of assets (like an index). Common
providers of jobs and “Thus, investors engage in aggressive out of fluctuations in asset prices and underlying instruments include The first round of elections in the west African
economic growth. efforts to lock-in unrealised profits – leads to lacklustre activity in the bonds, commodities, currencies, country was held in October.
thereby resulting in a self-reinforcing underlying cash market, particularly in interest rates, market indexes and
‘’World Bank reports that 95
market downturn, stocks. A runoff was originally scheduled for
percent of jobs in low income November, but was delayed due to allegations
countries are created by of voter irregularities by a third candidate.
SMEs. Further report shows
that they account for about
one third of the country’s
gross domestic product,
MTN Foundation lauded on skills empowerments Obasanjo is one of 18 global leaders, senior

officials and experts on the high-level board


GDP. They are an essential By Haruna Magaji “We appreciate MTN foundation who took “We thank Lagos Island Local created earlier this year to advise the
part of private domestic the bold steps to train about 96 of our Government for their support, Secretary-General on mediation and back
private sector and are a SNEPCO, Society of Petroleum those efforts around the world.
Friends of The Disabled (FOTD) students here in four years.”
priority in any country’s
Vocational and Educational Centre have Engineers (SPE), Individual Partners, The former President of Nigeria was involved
economic reform’’. in mediation efforts in Angola, Burundi,
lauded MTN Foundation for having According to her, the beneficiaries have UBEC, Women Affairs, Sage
Foundation Nigeria, Nigeria Institute Mozambique, Namibia and South Africa,
He stated that although, empowered 96 youths with disabilities in conquered the challenges of depending on among others.
Nigerians are known for the past four years to establish their own others and of being idle through the skill of Oceanography and Main Research,
many negative things, MLF businesses. you have learnt. Victoria Island, small world Nigeria The high-level board is part of the Secretary-
is designed to change the and other sponsors,” she said. General’s pledge for the UN to embark on a
perceptions of people about “surge in diplomacy for peace.”
“You have gotten enough training and
Nigerians.
The centre trains people with disabilities advices that can make you establish your
own business. We are here for She explained that the focus of the The idea, according to Tarja Halonen, former
“It is a platform designed to in different skills in shoemaking, sewing,
centre now is not only empowerment President of Finland and also a high-level
change the way Nigerians catering, fish farming, among others consultations and activities that board member, is to prevent wars by “hybrid
are perceived. Nigerians are rehabilitate you. Two of you have been but also rehabilitation with jobs that
peace-building.”
known for many bad things Speaking during the graduation ceremony consulted as instructors, and one other as can fetch them income with what they
but some of us have proven sign language teacher. have learned.
of skilled and empowered youths with Speaking at the UN General Assembly in
that our country is a nation September, outgoing Liberian President Ellen
of talents and creativity. disabilities, at the Oja-Oba Vocational
Centres Lagos Island, Mrs Christy Orduh- Let us know where you are and how you “Two of our ex-students have recently Johnson Sirleaf, said that the polls would
are adjusting to the society. FOTD also been rehabilitated. One is into signal an “irreversible course” towards
It is the first coming out of ED/Founder Friends of the Disables
continuing education here and democracy in the country.
Nigeria and we believe that (FOTD) said: “FOTD was established to remain grateful to National Directorate of
with the right education and develop the talents of youths with Employment, NDE, which gave the features as a tailor too while the other
Sirleaf, the first woman elected as head of an
opportunity, everyone can disabilities in order to make them valued organisation the first start-up equipment works with a bone craft centre for African country, took office in 2006, ending a
live as they wish and go and tools and have collaborated with us to income generation,” she added.
and useful adults in the society. civil war that erupted under the leadership of
where they want to go”. her predecessor, Charles Taylor.
date.
At the commemoration,
Adesokan unveiled a social
media platform ‘SeamWith’
which he described as being
borne out of a strong desire
SEC, Journalists to partner on investor education
to provide solution that will By Ezekiel Enejeta problem of unclaimed dividends and also “All in consonance with the present primarily at strengthening the market and
meet a wide range of needs ensure that investors receive the benefits of administration’s economic strategy, accelerating economic development.
for registered members and The Securities and Exchange Commission their investments in the capital market timely. focused on deepening the capital market
would-be members. ‘’This (SEC) has pledged to work with Finance as a vehicle for encouraging a private Earlier, leader of the delegation, Nduka
platform, SeamWith, is to Correspondents to ensure proper reportage of “We also have the direct cash settlement, sector-led economy with enhanced Chiejina, pledged the support of his
help users feel at home and the capital market and properly educate the dematerialisation, Nigerian Capital Market productivity,” the director-general said. colleagues in assisting the commission to
enjoy several benefits in investing public. Development Fund (NCMDF), National inform, educate and enlighten investors on
addition to financial Investors Protection Fund (NIPF) among others. Zubair therefore enjoined shareholders to the benefits of the Nigerian Capital Market.
benefits’’. Dr Abdul Zubair, the Acting Director-General of take advantage of the initiatives
SEC, said this in a statement on Wednesday in introduced in the capital market aimed
“Of what use is to have 500 Abuja.
friends on facebook who are
of no business or financial Zubair made the pledge when a group of Abuja- Abuja motorists get more free fuel as NNPC, DPR, seal stations
value. But on SeamWith you based newsmen visited him in Abuja.
can have 200 friends with By Haruna Magaji refurbished tanks and could take more requirements.
whom you can discuss He commended the journalists for their than 300 litres, thereby depriving other
business and financial assistance so far in propagating the initiatives Some motorists in Abuja on Wednesday got more motorists the oportunity to fuel on time
free petrol as the Nigerian National Petroleum ”Look at the power lines and high tension
ideas,” Mr. Ben Adesokan of the commission while enjoining them to and ration available product. cables all around.
said. continue to support the SEC in its quest to Corporation (NNPC) and the Department of
educate the investing public. Petroleum Resources (DPR) sealed more ”They go and siphon the tank and come
stations. Moreover, when we spoke yesterday we gave
He further explained that back. The civil defence has arrested him a concession but I think the owner of
Joining SeamWith is free He named some of the initiatives by the SEC to several and will continue to do so. this filling station does not need pity from
and it allows users to seam include direct cash settlement, The team had sealed the Khalif Civic Centre
and Investment Limited at Kubwa, a suburb of any government.
with other users. dematerialisation, consolidation of multiple ”Those who are in the habit of instaling
accounts and e-Dividend Mandate Management Abuja on Tuesday. extra tanks should beware. ”The way he situated this, if there is any
One can create ‘Seamer’s System. accident, the amount of lives that would be
hall, akin to the web page, ”This is an effort of government to continue to ”As at noon, we have gotten 110 trucks
identify all those who are a hindrance to the lost would be massive.
SeamCircle, which is the He said that the initiatives had helped to distributed to Abuja and environs,” he
general timeline page and promote transparency, protect and enhance supply of petroleum products. said. ”We advise that instead of giving this fuel
SeamBox which is the video- investors’ confidence in the capital market. free, the station should be demolished, it
sharing platform. ”Incidentally, this filling station is owned by the He said about 24 marketers that had
same perpetrator of yesterday and to our should not exist at all.
“We have rolled out a number of initiatives diverted products had been apprehended
‘’The SeamCenter, offers a among which is the e-dividend campaign where dismay, not only is he selling to people at N250 and it would be a continuous exercise.
per litre, but he’s also under-dispensing at half ”Under no circumstance should the station
one-stop digital library for investors will now be paid their dividends be allowed to exist within this community
authors, publishers, directly to their bank accounts. the volume as testified by one of the motorists. The Abuja Zonal Operations Controller, because it is very dangerous.
developers. It also serve as a DPR, Mr Mohammed Abba, advised that
platform for advertisers ” E- dividend simply refers to an online system ”DPR confirmed yesterday that he did not have the station should be demolished.
where they can get of paying dividends to investors when licence and they have handed over the station to
civil defence for appropriate action. ” We call on development control that its
maximum exposure and companies declare dividends, which are the ”We have advised the civil defence to Certificate of Occupancy should be revoked.
earn. The SeamPRO is the profits meant for investors. apprehend him, they have put that in
market place for ”Today, this one has more volume about 15,000 motion but he is in hiding.
litres so we are dispensing 5 litres to every Mr Aminu Abdullahi, Assistant
professionals and clients to “Rather than send it by post, Registrars will Commandant-General, Operations of the
meet and transact, while the just wire it to the investor’s bank account motorcycle and 20 to every car and this will ”If you look at this station, it is an illegal
continue,” Maikanti Baru, NNPC boss, said. Nigerian Security and Civil Defence Corps
SeamChat as the name directly. station, there is no way we will give told newsmen appropriate action was being
implies offers instant licence to a station within a community taken against illegal dealers.
messaging.’’ “This will help in no small measure, reduce the He said there were also vehicles that had because it has not satisfied all the

FINANCIAL WATCH December 28, 2017 Page 3


FINANCIAL WATCH DECEMBER 28, 2017
NEWS
Edo develops
CSR evaluation
framework to
Fuel scarcity: Niger gets only a truck in 2 days
foster peace in By Haruna Magaji

oil producing Minna – The lingering petrol scarcity


continues on Wednesday across Niger State as
communities only one truck was allocated to the state in the
past two days.
By Ezekiel Enejeta
Mr Sunday Senchi, Head of Department of
The Edo State Government Petroleum Resources operations (DPR)
has said that its Corporate disclosed this in an interview shortly after
Social Responsibility (CSR) inspecting some filling stations in Minna
evaluation framework has metropolis.
helped in sustaining peace and
cordial relationship between He said that only three filling stations
host communities and oil and dispensed petrol on Tuesday.
gas companies in the state,
noting that the state remains Senchi explained that as at 12 noon on
the most peaceful in the Niger Wednesday no allocation has been sent to the
Delta region. state.
Commissioner for Solid The DPR official said that the state needs an
Minerals, Oil and Gas, Hon. allocation of about 30 to 40 trucks daily to end
Joseph Ugheoke, disclosed this the scarcity.
in a chat with Journalists in
the State capital, Benin City, He explained that the department is
adding that this was achieved monitoring filling stations to ensure that those
by a comprehensive with petroleum products dispense to
community relations NNPC Mega station, which is the only one ”Government should investigate how the attendants to buy the product.
motorists.
evaluation template. selling at N145 per litre. product got to the hands of black
marketers.” NAN reports that many petroleum
The Niger State has two NNPC depots in
According to Hon. Ugheoke, Kabiru Abdullahi, a resident of Sauka marketers in Minna metropolis closed their
Minna and Suleja towns.
“the state government Kahuta, said that he spent two nights to Malam Bashir Musa of Maitumbi told stations, while the few that opened, sold
appreciates the relative peace get the product at the NNPC Mega station. the product at official pump price but
Senchi warned that the department would not
enjoyed by states in the region, NAN that ”all the filling stations in collect extra money before selling.
hesitate to dispense products free to motorists
especially as it concerns the He said that the scarcity was affecting the Maitumbi have the product but are selling
from any filling station caught hoarding.
long existing peace in daily activities of residents. at N400 per litres. Hawkers were seen around filling stations
communities hosting making brisk business as five litres of
According to him, the department will also
companies in the solid Abdullahi called on the Federal ”It’s really business for the black marketers petrol was sold at N3,500 to N 4,000
ensure that no filling station sell above the
minerals, oil and gas sector.” Government to constitute a mobile courts as they are making brisk profit at the depending on the location.
government approved prices of N145 per litre.
to prosecute those found hoarding and expense of motorists.”
He said the government has selling the product above official pump Abdulkarim Bello of Ahmadu Bello way told
At the Maitumbi area of Minna, stations such
developed a document that will price. Musa called on the task force set up by the NAN that the task force set up by the
as Muhabat, First Ja’az Global Resources
allow her improve standard of Nigeria Security and Civil Defense Corps NSCDC should redouble their efforts at
limited and Mutmusa Nig limited were selling
evaluating the CSR ”If you go to Tunga, Bosso, Old Airport and (NSCDC) to investigate how the product ending scarcity.
above pump price when NAN correspondent
programmes of companies and Maitumbi in the metropolis, you see was diverted to black markets.
visited the area on Wednesday.
investors that operate in the children selling the product openly. He also called on the state government to
state. Ishaku Idris, a commercial driver, said that continue to monitor the products
Meanwhile, investigation by NAN indicates
”I just bought a four litres fuel for N2,500. he slept for two days at the NNPC filling distribution to end diversion by marketers.
that motorists spend days at the
The document, he explained, station and pays extra money to petrol
“serves as a reference point for
the communities and
companies, as it is no longer
fashionable for communities to
sign agreement with
NEPZA Licences Three ‘N20b fraud’: EFCC quizzes ex-UBEC
New Free Trade Zones
companies and await crisis
points before consulting
government institutions, on By Samson Gabriel
boss Dikko, others
the way out.”
The Nigeria Export Processing Zones By Ezekiel Enejeta between 20 to 30 per cent of the by some members of the National
Ugheoke added that the Authority (NEPZA) has licensed three new equipment and books purportedly Assembly.“
communities are already Free Trade Zones (FTZs). Economic and Financial Crimes delivered to their schools, whereas
making contributions to fine- This announcement was made wednesday Commission (EFCC) detectives have the contractors were paid in full,” the Some of these projects have been
tune the framework, noting by its Managing Director, Emmanuel Jime.
that efforts are underway to
quizzed a former Executive Secretary of source said. traced to a principal officer of the
present the bill to the State the Universal Basic Education House of Representatives.”
In a statement signed by the Head,
House of Assembly for a law. Commission (UBEC), Mallam Suleiman Some former executive secretaries
Corporate Communications of the agency,
Simon Imobo-Tswam, NEPZA said it had Dikko, for alleged N20billion fraud. and directors of the commission have The projects in UBEC are: One block
“In the first quarter of 2018, been quizzed. of three classrooms at Eru Primary
secured for the country over $2.751billion
the state executive will present Also grilled were contractors and top School, Igbide (N9,180,835.45); one
in Foreign Direct Investments. (FDIs)
the document before the state directors of UBEC, including those in There are indications that the block of three classrooms at Ivori
House of Assembly as a bill, to
allow the state regulate the The new FTZs are Quit Aviation Services, charge of Finance and Procurement. N20billion contract scam is part of Primary School, Isoko (N9,887,778);
relations between companies Nasco Town FTZ and Tomaro FTZ. the cases for which the anti-graft construction of three classrooms at
and host communities.” Dikko’s and some contractors’ passports commission is investigating Dikko. Egburie Primary School, Ozoro; and
Jime said apart from the juicy FDI in flows, have been impounded “to ensure construction of six classrooms on
He added that the state about 50,000 direct jobs will be provided by unhindered investigation”. Another source said: “The ongoing January 21, 2016 at Olordo Primary
government intends to have a the three FTZs. probe of UBEC has many School, Ozoro (N9, 300,000).
legal document that will spell The probe, said a source, who pleaded dimensions. We have also discovered
out the number of persons “Under my stewardship, we have so far
from host communities to be
not to be named, is to unravel how funds many contracts duly paid for but
been able to licence three new industrial
employed by oil companies, meant for primary education and Unity abandoned between 2012 and 2014. The others are: supply of customised
parks i.e. Nasco Town Free Zone, which is
both at the junior and valued $2,086billion. It is estimated, at Schools were either diverted or Some fake contracts were awarded in library equipment to selected schools
management staff levels. completion, to be able to provide 50,000 converted to private use. order to acquire slush funds for in Isoko North Local Government
direct jobs. purposes known only to the former Area at N16,050,000; Supply of
“The fraud involves over N20 billion, UBEC Secretary and the accomplice instructional materials in Isoko North
Naira appreciates “The second is Quit Aviation Services Free allegedly siphoned through the purchase directors. /South Federal Constituency(N14,
Zone, valued at $215million, and is of science and technical equipment and 650,000); supply of customised
to N360.7/$ in I&E estimated to provide jobs in their MDGs’ books for some 104 Unity Schools “There were also reckless awards of equipment to selected schools in Isoko
By Ezekiel Enejeta thousands. And there is: Tomaro Industrial between September 2012 and 2014.” contracts under the guise of Federal Constituency(N15, 950,000);
Park, in Lagos, valued at $450million. It constituency projects between 2012 rehabilitation of six classrooms at
would also provide jobs running into the The Principals of the “beneficiary and 2014. Egware Primary School, Ozoro
The naira, Wednesday, thousands,” the statement said. schools” denied receiving the books and (N9,200,928,90); and construction of
appreciated to N360.7 per The equipment listed against their schools, it “For instance, many unexecuted six classrooms and toilets as well as
naira yesterday appreciated to Jime said when he resumed office, he met
was learnt. constituency projects were awarded supply of furniture at Itebighe
N360.7 per dollar in the staff who were low in morale in addition to
Investors and Exporters (I&E) other challenges including, inter-agency by UBEC to some companies owned Primary School (N12, 988.099.23).
window, in spite 36 percent rivalry, delayed promotions and poor “They claimed that they only received
decline in volume of dollars investor-confidence.
traded.

Data from the Financial


According to him, with the cooperative
support of his management team, he had
succeeded in making appreciable impact.
MSMEs reckon 2017 as Year of better
Market Dealers Quote (FMDQ)
revealed that the indicative
exchange rate for the window
dropped to N360.7 per dollar
He similarly described as false the claims
that the authority padded its 2018 budget
access to funding, forex access
yesterday from N361.11 per estimates, saying that NEPZA has neither By Samson Gabriel “We are not yet there but it will get better. Is not being felt by the common-man; there are
dollar yesterday last week padded her budget proposal nor inflated its We are moving in the right direction now.” still signs of the recession everywhere; if things
Friday. personnel cost. OPERATORS in the Micro, Small and continue this way, it will be very difficult for
Medium Enterprises (MSMEs) have According to him, more awareness is being business owners to survive.
reckoned 2017 as the “Year of better access created about Made-in-Nigeria products and
Further analysis revealed that “It is true that the Personnel Cost in to funding and foreign exchange.” more and more people are looking inward “We are also looking up to the government to
the volume of dollars traded in now. continue to promote the ease of doing business
NEPZA’s 2017 budget is N638million and
the window dropped to $74.38 the proposed budget for 2018 is In a review of the outgoing year, and which in the long run will help the MSMEs to
million from $116.3 million outlook for 2018, Kuti George, President Femi Egbesola, National President thrive better. Those are the things we are
N710million, but it is grossly incorrect to Association of Small Business Owners,
last week. insinuate or suggest that the budget was Lagos Chapter of Nigerian Association of looking forward to, come 2018,” he concluded.
Small Scale Industries, NASSI, said: “2017 ASBON, also noted: “2017 is one of the
over bloated or state that ‘there is a toughest and most challenging years for the Also, the Small and Medium Industries (SMI)
is a turbulent year and things can only get
N205million surplus discovered in the 2018 MSMEs sector in Nigeria.
better; the stability of the naira is good even Group of Manufacturers Association of Nigeria
budget estimates of NEPZA.
The improved fortune of the though we are expecting it to improve, but (MAN) looked back at the year in review and
naira was extended to the it is not as volatile as before. “A lot of business had closed shops because said 2017 was better in terms of the Federal
parallel market, were it of the harsh economic situation in the Government series of intervention programmes
appreciated by N1 as the The statement clarified that Authority’s “The Lagos State Employment Trust country but we are hopeful that it will introduced to improve the performance of the
parallel market exchange rate gross monthly salary figure is over improve; we are looking forward to a sector.
dropped to N364 per dollar N53million while staff pensions, PAYE, Fund, LSETF, has helped small businesses situation where power supply will improve.
from N365 per dollar last week NHIS and other deductions are made at in the area of funding and the Bank of “We are also looking forward to a situation Frank Jacobs, MAN President, stated:
source at the Office of the Accountant- Industry, BoI, is also doing its job. whereby the recession will leave our system. “Obviously, 2017 was much better than last
General of the Federation (AGF). We are told that the recession has left but year.
that

FINANCIAL WATCH December 28, 2017 Page 4


FINANCIAL WATCH DECEMBER 27, 2017
NEWS
Afreximbank, ICD sign $100m agreement for SMEs
By Ezekiel Enejeta clients.
2017 Calabar's bikers carnival in Photos
“We are delighted that ICD has
The African Export-Import Bank chosen to partner with us in the
( Afreximbank ) says it has pursuit of Africa’s trade
signed a $100 million financing development.
agreement with the Islamic
Corporation for the Development “This collaboration will
of the Private sector ( ICD ) to contribute to the objective of
promote SMEs in Shariah- fostering sustainable economic
compliant countries. growth in the member countries
of our two institutions leading to
A statement by the bank on job creation, contribution to
Wednesday in Lagos said that export and Islamic finance
the facility being provided by development, among others.”
ICD was for small and medium-
sized enterprises ( SMEs ) in ICD is a multilateral organisation
ICD-member countries. and a member of the Islamic
Development Bank ( IDB ) Group.
The statement quoted Mr
Khaled Al Aboodi, Chief The mandate of ICD is to support
Executive Officer of ICD, as economic development and
saying that the financing facility promote the development of the
was a token in support of private sector in member
private sector businesses in ICD- countries through providing
member countries. financing facilities and/or
investments which are in
According to Aboodi, the facility accordance with the principles of
is for SMEs in the industrial, Shari’ah.
communication, technology,
healthcare, construction and ICD also provides advice to
agricultural sectors. governments and private
organisations to encourage the
Mr. Amr Kamel, Executive Vice establishment, expansion and
President at Afreximbank, said, modernisation of private
“this facility will give a boost to enterprises.
our effort to implement our
current strategy which ICD is rated AA/F1+ by Fitch and
prioritises intra-African trade, Aa3/P1 by Moody’s.
intra-African investments and
export manufacturing of the Afreximbank, on the other hand,
labour intensive type. is the foremost pan-African
multilateral financial institution
“It will also promote our devoted to financing and
knowledge in Islamic finance promoting intra- and extra-
and provide us with additional African trade.
manoeuvring capacity in terms
of product offerings to our The bank has it headquarters in
Cairo.

Private refinery vows to end fuel scarcity


By Cynthia Adigwe -skimming privately owned
refinery in the state and the
Bayelsa industrial businessman, Niger Delta, and as we pioneer
Dr. Azibapu Eruani has rekindled this course others would follow,”
hope in Nigerians that the hydra- Eruani submitted.
headed malaise of fuel scarcity and
acute unemployment would be ‘’it might be difficult yesterday,
reduced to its barest minimum, if but
not eradicated as licensed
privately owned refineries we have move beyond the point of
commences operation. difficulty to success, and we
believe that fuel scarcity in
Eruani, President of the Azikel Nigeria would be a thing of the
Group, conglomerate comprising past soon.
Azikel Petroleum, Azikel
Dredging, Azikel Power and Azikel He dismissed the erroneous
Air said this while speaking with impression that Bayelsa is a
journalists in Yenagoa. militant state, stressing that the
people are enterprising and a
Decrying the yearly fuel scarcity whole lots of small and medium
debacle, particularly during festive business is also thriving in the
periods in the country, he pointed state.
that this challenge has become
embarrassing and biting, as it has Eruani alluded that the
virtually crippled economic multiplier effect of adequate
activities in the country. supply of petroleum product in
the country would drastically
The company disclosed this in a reduce the problem of
statement on Wednesday. unemployment, which is
Accordingly, Eruani noted that the responsible for brain drain, illegal
challenge persists in the country means to greener pasture,
because the efficiency level of particularly the Libya returnees,
existing refineries is low to satisfy as well as other in pathetic
consumers demand; just as the conditions faced by young
nation depends solely on the Nigerians in other countries.
importation of fuel for local
consumption. He shared the optimism that
synergy between the private
The Azikel Group President sector and government at all
averred that the present levels is needed to advance
administration led by President technology driven
Muhammadu Buhari took a industrialization to absorb
pragmatic step to redress low graduates from our universities,
supply, importation of fuel and as a well as create room for
price hike, by issuing licenses to middle and low class manpower.
privately own refineries to
Nigerian businessmen, Azikel The Azikel Group President noted
Group inclusive. that subsidiaries under the group
have created industrialization in
He noted that Azikel Petroleum Bayelsa and the Niger Delta,
has achieved 65% completion; and stressing that with over 1000
that it would soon begin operation, employees from the six geo-
even as he noted that when all political zones and still counting,
licensed privately owned refineries we have reduced unemployment
begin to dispense fuel it would challenge in the state, Niger
shore up production capacity and Delta and in the country.
fuel scarcity and insufficiency
would be outlawed, and Nigeria ‘’We do not want Bayelsans, Niger
would be like other countries Delta youths and Nigerians to be
where availability of petroleum idle, we don’t want them to
product would no longer be an become illegal migrant begging
issue. for jobs and been lured into
abominable social vices, such as
Said he ‘’Azikel Petroleum prostitution and drug addict,
refinery, phase 1, 12, 000 bpsd cultist and robbery.
hydro-skimming refinery would
produce, premium motor spirit, To this end, Eruani noted that an
liquefied Petroleum gas, heavy fuel industrialised state and nation is
oil, Kerosene and diesel, which is the cardinal key to stable
scalable as it will increase economic prosperity, which would
geometrically in the phase 2 level in turn create institutions that
of production with over 50,000 would stamp out unemployment,
bpsd. even as he pointed that Azikel
Group is on a mission to create
‘’Azikel Group is irrevocably the right values towards
committed to bridging the industrial growth, bring
industrial deficit in Bayelsa, we unemployment to its lowest ebb
are on a fast lane of making and promote financial freedom
history, building the first hydro among all Nigerians.

FINANCIAL WATCH December 28, 2017 Page 5


FINANCIAL WATCH DECEMBER 28, 2017
NEWS

Germany based Nigerian engineer tasks FG on energy conservation


By Ezekiel Enejeta In his analysis, engineer Victor Drastically in the latter”, environmental preservation providing energy saving education and need to
Aruwah showed the students that Aruwah said. consciousness in the minds and increase environmental awareness among school
Leading environmental expert and Germany based he had installed meters in each hearts of young people of school children in both private and public schools.
Nigerian engineer, Victor Aruwah, has called on the building which measured In his statement following the age in Nigeria. He said “while I am environmental preservation consciousness in the
Nigerian government through the ministry of consumption levels prior to the successful implementation of the doing this here, I am also thinking minds and hearts of young people of school age in
environment to adopt new ways of ensuring an increase Green Boot competition, without energy saving and about how similar initiative can be Nigeria. He said “while I am doing this here, I am
in awareness and action towards energy conservation in staff knowing, so that he could get environmental awareness implemented in Nigeria. I strongly also thinking about how similar initiative can be
Nigeria. an accurate baseline program, engineer Victor believe this kind of program will implemented in Nigeria. I strongly believe this kind
measurement. “In comparison, Aruwah called on the Nigerian help our young people understand of program will help our young people understand
He made the call in Germany after he successfully led consumption levels during the Ministry of the Environment and their role in preserving energy and their role in preserving energy and in keeping the
some students to implement an energy saving initiative Green Boot competition decreased others concerned to look at the in keeping the planet safe”. He planet safe”. He called on environmental agencies and
at the the US Army Department of Public Works in in both the garrison building and possibility of putting in place called on environmental agencies other relevant bodies in Nigeria to see the possibility
Germany. the Department of Public Works similar initiative in Nigeria with and other relevant bodies in of providing energy saving education and need to
building — a view to instilling Nigeria to see the possibility of increase environmental awareness among school
The initiative, called the Green Boot competition, children in both private and public schools.
according to a report on US Army website, was to
encourage staff implement the best daily practices to
conserve energy.
SEC restates commitment to
And to implement the program, seven student experts
from Ramstein High School Environmental Club in
investor education
Germany were invited to examine the two sections of the
By Cynthia Adigwe
Department of Public Works building and provide
feedback on energy saving levels within the period of the
The Securities and Exchange Commission has
competition.
pledged to work with the media to ensure proper
reporting of the capital market in order to enlighten
The Ramstein High School Environmental Club,
and educate the investing public.
according to the report, achieved Green Boot certification
in 2016 after reducing energy consumption at their
The Acting Director-General, SEC, Dr. Abdul Zubair,
school building by five percent over the course of one
stated this while addressing financial journalists in
school year, saving thousands of dollars in the process.
Abuja.
With energy reduction and awareness as its primary
focus areas, the environmental club has already
Zubair commended the media for their assistance so
continued its energy reduction efforts in 2017 by
far in propagating the initiatives of the commission
initiating a plastic water bottle reduction campaign,
and enjoined them to continue to support SEC in its
encouraging students and teachers to recycle their
quest to educate and enlighten the investing public,
plastic water bottles and switch to reusable ones.
as means of further deepening the market.
According to the organizers of the competition, to further
Some of the initiatives, he stated, included direct cash
contribute to energy conversation outside of their school
settlement, dematerialisation, consolidation of
environment, the student were tasked to bring their
multiple accounts and e-dividend Mandate
experience and expertise to the US Army garrison and
Management System; as they promote transparency,
were required to inspect the two buildings competing in
protect and enhance investors’ confidence in the
the challenge, accompanied by the Department of Public
capital market.
Works Senior Facility Engineer Gregory Williams and
engineers Konstantin Gross and Engineer Victor
Zubair said, “We have rolled out a number of
Aruwah.
initiatives among which is the e-dividend campaign
where investors will now be paid their dividends
During the inspection, the students made suggestions
directly to their bank accounts. E- dividend simply
about how staff of the Department of Public Works could
refers to an online system of paying dividends to
better conserve energy. Some of the suggestions included
investors when companies declare dividends, which
unplugging appliances such as toasters and microwaves
are the profits meant for investors. Rather than send
when not in use, turning off or reducing the lights in a
it by post, registrars will just wire it to the investor’s
room when natural light is coming in through the
bank account.’’
windows and turning off monitors at vacant desks.
“This will help in no small measure, reduce the
problem of unclaimed dividends and also ensure that
Police Parade 30 Inter-State investors receive the benefits of their investments in
the capital market timely.
Robbers, Kidnap Suspects In
Lokoja “We also have the direct cash settlement,
dematerialisation, Nigerian Capital Market
By Samson Gabriel Development Fund, National Investors Protection
Fund, among others, which are all in consonance with
The Police on Wednesday in Lokoja paraded 30 inter- the present administration’s economic strategy
state armed robbery and kidnap suspects terrorising focused on deepening the capital market as a vehicle
Kogi and the neighbouring states. for encouraging a private sector-led economy with
enhanced productivity.”
Parading the suspects, the Force Public Relations Officer,
Jimoh Moshood (CSP) said those arrested included some The SEC boss, therefore, enjoined all shareholders to
who allegedly kidnapped and killed an expatriate take advantage of the initiatives introduced in the
engineer with Dangote Cement Company. capital market, which are aimed primarily at
strengthening the market and accelerating economic
Moshood said at the Kogi Police Command headquarters development.
that the arrests were in response to the Inspector-
General of Police (IGP) Ibrahim Idris’ directive to rid the Ecobank CEO praises
nation of crime.
Okpekpe road race upgrade
“The IGP directed the Commissioner of Police in the
state, Ali Said Hangs to quickly address armed robbery, By Ezekiel Enejeta
kidnapping, social miscreants, cattle rustling, cultism on
Auchi-Okene-Lokoja, Lokoja-Ajaokuta-Anyigba, Kabba- The Managing Director/CEO, Ecobank Nigeria
Oshokoshoko-Obajana highways. Limited, Charles Kie, has commended Pamodzi
Sports Marketing, organisers of 10 kilometre
“Effort of the commissioner and his team through vigour, Okpekpe International Road Race on the
dedication, utmost professionalism and passion for the
job, led to the arrest of the 30 suspected criminals and
recent upgrade of the Road Race to silver Labe.
recovery of several weapons, he said. The upgrade was done by International
Association of Athletics Federations (IAAF).
He said four of the suspects were alleged to have on Oct.
23, kidnapped an expatriate, Mr Jose Machada, a He said the elevation does not only lend
construction engineer with Dangote Cement Company, credence to the standard and popularity of the
Obajana. Race, but also represents a milestone in the
Moshood said that the suspects killed the expatriate
development of sports in Nigeria.
when the ransom they demanded was not forthcoming.
Kie said the upgrade further justifies
“Police operatives attached to Special Anti-Robbery Ecobank’s consistent support to the annual
Squad, Kogi State Command, in synergy with the DSS event. He reiterated that the Okpekpe’s vision
promptly swung into action and arrested the four of a top quality competition that affords top
suspects,’’ he said. athletes from across Africa the opportunity to
He said one of the suspects killed a senior staff of
compete and socialize ties with the bank’s pan-
Dangote Group of Companies, Istifanus Bello, for African posture.
allegedly trying to shortchange his kidnap gang.
He maintained that the bank supports and
The company worker was said to have been killed for encourages creativity and excellence among
paying them N5 million instead of N7 million ransom for Africans, especially the young people, who are
the release of another staff earlier abducted by the the future of the continent.
suspect and his gang.

The police image maker said two other suspects were In his words “we are delighted to be a strong
arrested on Kano road, Idah, for terrorising the residents part of the success story of the Okpekpe Road
through cultism while another was arrested in Okene for Race, especially on this latest elevation to the
kidnapping and cattle rustling. Silver Label Race, which is the first to be so
recognised in West Africa”.
He noted that during interrogation the suspects
confessed to participating in the killing one Haruna
Baso, a resident of Achoze, and carting away the cattle of
the deceased. The annual Okpekpe international 10km Road
Race has had Ecobank Nigeria as its major
Moshood listed items recovered from them to include, 11 banking partner. The Road Race is the first
AK-47 rifles, two Beretta pistols, two Revolver pistols, and only road race in Nigeria that has been
334 rounds of AK-47 live ammunition, a dagger, a cutlass granted full membership of Association of
and military camouflage uniforms. The force public International Marathons and Distance Races
relations officer said the suspects would soon be
prosecuted and called on parents to monitor their wards.
(AIMS) and recognised as one of the
prestigious road races in the world.

FINANCIAL WATCH December 28, 2017 Page 6


FINANCIAL WATCH DECEMBER 28, 2017

...Cont’d from page 1


Motorists decry crisis as
examination because they do not have equipment to do illegal vendors make fortune
the examination.
in FCT
“The question here is that if they do not want to use it,
why did they made provision for scanning. We do not
DPR closes two filling stations in C’River
need to know why they do not want to use it but they do
not want to use it because they are not good. Let them
prove that they are good, we will now ask them why they By Haruna Magaji
are not using it.”
As the effects of the lingering fuel scarcity
On claims by the Nwala that they are good and that they bite harder on the citizenry, some unpatriotic
scan about 50 containers a day, he said “That is a bloody Nigerians have made and still making huge
lie.”
fortunes from this unsavoury situation by
Efforts to speak with APMT Communications Manager, vending the product at very exorbitant rates
Austin Fischer, proved abortive as he could not be in the Federal Capital Territory.
reached on phone neither did he respond to a text
message sent to him. While motorists groan over the
unavailability of petrol in filling stations,
Ogun civil servants urged to illegal vendors, popularly known in the local
embrace agribusiness parlance as black marketers, have swooped Banks’ borrowing from CBN That the banks’ borrowing from the apex bank rose
on the streets of Abuja dispensing the significantly.
product between N400 and N500 per litre to
increases by 52% in
By Tosin Adesoji
the already weary citizens. December Some analysts attributed the trend to liquidity
squeeze and banks’ demand for funds to participate in
The Ogun State civil servants have been urged to explore
By Ezekiel Enejeta the special foreign exchange auctions conducted by
the advantages of agribusiness to improve their living By implication, they are becoming the the regulator.
standard rather than depend solely on personal gainers of the crisis, smiling to the banks
emoluments. Liquidity challenges in the economy made the
with good fortunes.There were also amount of money that commercial banks borrowed In November, the commercial banks borrowed
indications yesterday that attendants were from the Central Bank of Nigeria to increase by 52 N2.77tn with an average amount of N154bn.
Commissioner in the State Civil Service Commission,
Alhaji Surajudeen Olusesi, gave the admonition at Oke- equally getting gratification as high as per cent in the first three weeks of December, data
N1000 before selling to people with jerry obtained from the CBN website showed on Monday. The highest and lowest amounts the lenders
Mosan, Abeokuta, at a quarterly training organised by
borrowed from the central bank last month were
the State Civil Service Commission for civil servants cans.
The CBN Standing Lending Facility window data N260bn and N108bn, respectively.
with the theme, “Agribusiness: A Way of Contributing to
the Economy.’’ revealed that the Deposit Money Banks in the
The Group Managing Director of the country borrowed N2.305tn from the regulator to Economic and financial experts said that the CBN’s
Nigerian National Petroleum Corporation cover their cash shortfall positions between lending to banks had increased in recent times on the
Olusesi said civil servants in the state constituted a large
(NNPC), Maikanti Baru, recently accused December 1 and 22, 2017. back of liquidity issues in the economy.
population and have the tendency to boost the economy if
they strategically engage in agribusiness as alternative the illegal vendors of sabotaging efforts to
end the crisis, saying most of the peddlers This represents a 52 per cent increase over the Banks with liquidity challenges are often seen more
means of generating income aside from their official pay.
N1.515tn the nation’s lenders borrowed from the on the CBN SLF window than others.
In his contributions, Director of Planning, Research and permanently put their vehicles in queues at
Statistics from the Ministry of Rural Development, Mr. petrol stations, procure product, discharge apex bank to cover their positions between November
1 and 22, 2017. For example, Skye Bank Plc was said to be more
Adekunle Oyesanwo, described agribusiness as the sum content in containers and later rejoin the frequent on the CBN SLF window months before the
total of all operations that entail the production and queues. Commercial banks use the CBN’s SLF to support CBN sacked its board and appointed a new one.
distribution of farm produce.
their liquidity shortfalls and meet trading obligations
Curiously, motorists and residents of the on short-term basis. The apex bank, which is described as a lender of last
He said the role of government was to formulate policies
FCT are accusing the security agencies and resort, has been accused of lending more to the
and provide enabling environment that would promote
The DMBs borrowed N1.019the, N671bn and N614bn Federal Government in recent months.
the development of agribusiness enterprises through the concerned authorities of aiding and abetting
provision of inputs, export and general trading. perpetrators of the illicit business. through the CBN’s SLF window during the first,
second and third week of December respectively, the A member of the CBN Monetary Policy Committee,
Adekunle maintained that the success of any agricultural
central bank data showed. Dr. Doyin Salami, had recently accused the central
venture depends on the individual contemplating on According to them, the ubiquity of the black bank of acting like a “piggy bank” with its funding of
establishing an agribusiness venture and how well the
marketers remains an eyesore. A motorist, While the N614bn borrowed last week was eight per the government.
business is coordinated.
who identified himself as Shola Babatunde, cent lower than the N671bn loan obtained the
decried that the product which was non- penultimate week, the latter was 34 per cent lower Salami said he was struggling to understand the apex
Responding, one of the participants, Mr. Oduntan
than the N1.019tn the banks borrowed from the CBN bank’s economic rationale for such action.
Ibikunola, from Ogun State Management and Multi- existent in filling stations was readily
Purpose Credit Agency (OSAMCA), appreciated the Ogun available at street corners within the city. three weeks ago.
Monetary data showed a sharp rise in the CBN’s
State Civil Service Commission for putting in place such
The CBN SLF data showed that banks borrowed financing of the government deficit this year, Salami
training, adding that he has benefited a lot from it. A commercial transporter, Wasiu Sulyman, N231.92bn, N217.08bn, N228.26bn, N178.28bn, and said after the MPC meeting some months ago.
Another participant, Tokunbo Salami, from Ogun State
described the situation as unfortunate, N164bn, respectively from the central bank between
Road Management Agency (OGROMA), said he was
stressing that the sabotage would continue if December 4 and 8, 2017. He stated that the CBN’s claims on the government
happy to be part of the training, describing it as an eye
government refuses to act timely.Another had risen 20-fold to N814bn from the end of 2016,
opener to huge potential of agribusiness in the country.
Between December 11 and 15, the amounts borrowed while its purchases of government treasury bills
motorist, Edwin Uche, blamed government
were N178.02bn, N135.3bn, N123.77bn, N116.73bn increased by 30 per cent to N454bn.
for alleged shabby handling of the entire
and N117.64bn, respectively.
NB wins Sectoral Leadership crisis. “It is clear that the CBN has provided piggy-bank
Between December 18 and 22, the banks borrowed services to the Federal government. While I still
Award However, Department of Petroleum N119.836bn, N132.651bn, N163.135bn, N110739bn, wonder what the underlying economics is, I sincerely
Resources (DPR) has shot two fuel stations and N87.892bn, respectively. hope it works,” Salami added.
By Gabriel Samson
in Calabar for selling above the N145 official
During the last week of October and November, the The Federal Government is struggling to raise
Nigerian Breweries Plc has been honoured for its pump price. The affected facilities were
CBN data showed enough revenue amid economic challenges.
outstanding performance in the Consumer Goods Sector reportedly dispensing the product at the rate
of the Nigerian economy at the 2017 Pearl Awards. The of N190 to N205 per litre.The Controller of
company was presented with the 2017 Sectoral DPR in Cross River, Bassey Nkanga, told CSCS canvasses strong Christmas tragedy: Policeman
Leadership Award in the Consumer Goods Category
(Breweries) at the event, which held at the Grand Ball
reporters that the big hammer was wielded financial market infrastructure shoots colleague dead in
due to infraction.
Room, Eko Hotel and Suites, Victoria Island, Lagos.
By Haruna Magaji
Yenagoa
While commenting on the award, Corporate Affairs United States to sell A29 The Central Securities Clearing System has stressed
By Cynthia Adigwe
Adviser, Nigerian Breweries, Kufre Ekanem, stated: “We
view this award as a recognition of our previous Super Tucano aircraft to the need for a strong financial market infrastructure, A police officer in Yenagoa was inadvertently shot and
saying it will contribute to the stability and growth of
performances and as our call to duty to keep delivering Nigeria the financial system as a whole.
killed by a fellow policeman during a gun duel
value. between the police and suspected cultists.

As Nigeria’s foremost brewer, our commitment to our By Samson Gabriel It likened a well functioning financial market An eyewitness who preferred anonymity said on
shareholders and other stakeholders drives our passion infrastructure to the human backbone, explaining Tuesday that the incident occurred on Christmas day
for high performance and delivery of quality, not just in The United States (U.S.) has accepted to sell that it would ensure fast and smooth movements, at Obele Area of Ovom in Yenagoa, leaving residents
channel relevant information-settlement information,
our product offering, but also in all our interactions with one of its A29 Super Tucano aircraft to the in apprehension.
Nigeria. We remain committed to these values.” Ekanem protect the channels for the transmission and reduce
Federal Government to boost the ongoing risk.
thanked the organisers of the award for the recognition counterinsurgency operations in the North According to the eyewitness, trouble started when a
and congratulated them for sustaining the initiative in misunderstanding among some members of a cult
East. The U.S. Ambassador to Nigeria, Problems in the financial market infrastructure, the
the last 22 years. Nigerian Breweries emerged winner in group cultists degenerated to a fight, resulting in
the Consumer Goods (Breweries) category which Stuart Symington, presented the Letters of CSCS said, could lead to dysfunctions in the financial gunshots which eventually attracted a police patrol
Guinness Nigeria Plc and International Breweries Plc Offer and Acceptance (LOA) to the Chief of market, which meant lack of options for transactions; team to the area.
were also nominated for. Air Staff, Air Marshal Sadique Abubakar on misleading information and disturbed information
channel; and systemic risk.
behalf of the Federal Government. The Police Command Spokesman, DSP Asinim
Butswat, who confirmed the incident, said the killing
NIMASA to release maritime It listed financial market infrastructure to include was shocking.
A statement signed by NAF’s Spokesman, payment system (sets of instruments, infrastructure,
industry forecast in Q1 Air Vice Marshal Olatokunbo Adesanya in procedures, and rules for the transfer of funds; “Yes, the incident was between cultists but as the
Abuja, yesterday said the LOA represents central securities depository (providing securities police went to find out what was going on, the cultists
By Ezekiel Enejeta
the official U.S. Government offer to sell U.S. accounts, central safe keeping services, and asset started shooting and one of the policemen mistakenly
defence articles and services to the Nigerian services); securities settlement system (enabling shot an officer.
As part of the initiative to reposition the maritime sector
securities to be transferred and settled by book entry
for greater efficiency in line with International best government.
according to a set of predetermined multilateral “Though, we are yet to get the full details because
practices, the Nigerian Maritime Administration and
rules). some of our men, who were at the scene, are supposed
Safety Agency (NIMASA) will release the empirical While presenting the LOA to Abubakar, at
forecast that will determine the outlook of the industry to brief us on the matter.
NAF Headquarters in Abuja, the U.S. According to the firm, it also involves central
in Nigeria by the first quarter of 2018.
Ambassador noted that peaceful existence in counterparties (which interposes itself between “Nevertheless, the Police are intensifying efforts to
Nigeria was strategic to the security of the counterparties and contracts traded in one or more ensure a crime-free environment for people in
The Director General of NIMASA, Dr. Dakuku Peterside,
entire West African sub-region in particular financial markets through innovation; therefore Bayelsa this period of Christmas celebration; we
who disclosed this in Lagos recently further stated that
ensuring the performance of open contracts); and
the Nigeria forecast would deal with how developments and the entire world at large. deployed over 4,000 personnel for patrol.
trade repository (an entity that maintains a
on the international scene affects the industry in Nigeria,
centralized electronic record of transactional data). “We adopted some strategies like ‘Cordon and Search’;
which would also serve as a guide for investors and Ambassador Symington expressed the
stakeholders in the maritime sector. I must tell you, our men and women are fully on
commitment of the U.S. government to The CSCS, this year, said it would increase operations to safeguard lives and property,” Butswat
helping Nigeria completely defeat the Boko automation and improve efficiency in the Nigerian said.
Peterside noted that the forecast would be released from
Haram terrorists and also eliminate all capital market with the deployment of the TCS
a holistic perspective in order to know areas of advantage
forms of terrorism from its territory.He, BaNCS, a world-class multi-asset class solution for The spokesman urged the residents to continue with
that will be of immense benefit to stakeholders and
securities depository, clearing and settlement.
industry players, both locally and internationally. however, conveyed the U.S. Government’s their lawful endeavours and support the police by
“On the positive side, it will look at where the belief that the capacity of the NAF could providing timely and credible information on criminal
The solution replaced the NASDAQ Equator which activities.
opportunities will be in 2018 and 2019; will greater greatly be enhanced by the acquisition of the had been in use since inception of the company in
investment in oil and gas translate to more demand for Super Tucano Aircraft, adding that “the U.S. 1997.
offshore support vessels? What are the industry
would therefore continue to support the NAF The solution change, according to CSCS, is core to the “I also urge them to continue to enjoy the Christmas
perspectives? What government and its agencies should
in its capacity building efforts, including the company’s business transformation initiatives which celebration and steer clear of every criminal activity,”
do to attract more investment in the industry, among
timely supply of needed aircraft spares.” aim at improving efficiency in depository, clearing he said.
other salient issues,” he said.
and settlement services.

FINANCIAL WATCH December 28, 2017 Page 7


FINANCIAL WATCH DECEMBER 28, 2017

...Cont’d from Page 1


Sack those responsible for Rivers, Shell sign MoU on gas Facts about $1b security vote
of net clearing obligations from Central ongoing hardship, petrol supply distorted, says Federal Govt
Securities Clearing System (CSCS), cheques,
cards Automated Clearing House (ACH), NIBSS
scarcity: Nigerians tell By Haruna Magaji By Cynthia Adigwe
Instant Payment (NIP), National Electronic Buhari
Funds Transfer (NEFT) and other clearing The Rivers State Government and Shell Nigeria Gas Information and Culture Minister Alhaji Lai
instruments shall be through the account By Cynthia Adigwe (SNG,have signed a Memorandum of Understanding Mohammed has shed light on the approval of $1
(MoU) for the distribution of gas to industries in the billion by the Nigerian Governors’ Forum (NGF) to
Nigerian have called on President Muhammadu Greater Port Harcourt area and its environs. fight insecurity nationwide.
Besides, such a Settlement Bank, will have the Buhari to deal decisively with those responsible for
ability to offer agency facilities to other banks and the current scarcity of petrol. MoU sets out broad terms and conditions to guide co- He said the money was approved to assist the
settle on their behalf, nationwide. It will equally operation between the two parties in the development military in tackling serious security challenges,
have a branch network in all the CBN locations Some of the Nigerian who took to their twitter of new gas distribution opportunities in the Greater including the Boko Haram insurgency, illegal oil
even as the guidelines will be reviewed from time handles prayed the President to punish those who Port Harcourt area and its environs, in addition to its bunkering, kidnaping and cattle rustling.
to time. by their actions or inaction, caused the ongoing existing gas distribution network in the State.
scarcity. Mohammed took exception to the criticisms of the
“The agreement is key to government’s efforts aimed approval by the opposition, saying that they were
It said that banks that meet the specified criteria Replying to a Christmas Day message from at boosting industrialisation in Rivers State,” said unnecessary, uninformed and in bad faith.
will continue to be designated as “Settlement President Muhammadu Buhari on his twitter Richard Hart, Permanent Secretary, Ministry of
Banks”. This implies that non-settlement banks, handle @MBuhari, some of them particularly called Energy and Natural Resources, who signed for the To the minister, $1 billion is not too much for the
called “Clearing Banks” will continue to carry out on the President to sack any of his appointees government. military to fight insecurity. Security of lives and
clearing operations through the settlement banks responsible for the ongoing hardship. property is at the core of the government’s existence,
under agency arrangement. He said: “We believe that the agreed terms in the he said.
President Buhari on Christmas Day wrote on his MoU will lead to the signing of the “Build-Operate-
handle: “I wish all Nigerians Happy Christmas Own-and Transfer” (BOOT) agreement early next He said while Boko Haram had been largely
In the circular titled: Extension of Settlement celebrations. year, so businesses can begin to reap the benefits of a degraded, as claimed by the critics, fighting such an
Banking Arrangement to all Clearing Sessions’, steady source of energy.” asymmetric war is costlier than fighting a
Fatokun recalled that the CBN introduced “As I noted yesterday, the fuel scarcity that has conventional war.
settlement banking framework on April 1, 2014. caused many of you to spend this period on fuel SNG Managing Director, Ed Ubong, who also signed
queues is deeply regretted.All relevant agencies of for hiscompany, said the partnership was an The minister reminded the critics that the war
“The framework categorised deposit money banks Government are working round-the-clock to bring opportunity to further promote gas as a more against terror had never been fought with budgetary
relief to you. reliable, cleaner and cost-effective alternative to provisions.
into settlement and non-settlement banks. The
liquid fuels in the Niger Delta.
settlement banks settle their net settlement But his message was greeted with negative replies, Mohammed spoke with reporters in Lagos on the
obligations and that of their non-settlement banks some calling for his resignation as Petroleum “Gas is the key to boosting industrialization. It is no motivation for approving the cash and its anticipated
arising from cheque clearing and other Minister and others urging him to reshuffle his coincidence that states that currently do well on impact on the capacity of the military to frontally
instruments during sessions 1 and 2.” cabinet and take on more productive ministers. internal revenue generation have also encouraged the confront the multi-dimensional security challenges.
use of gas to boost industrial output, which in turn
He said that non-settlement banks should going They urged President Buhari to quickly do provides employment and improved livelihood, Obong Justifying the financial assistance to the military, the
something to redeem his government and the said, adding that SNG is grateful to the Rivers State minister said it had played a dominant role in in
forward, enter into agency agreement with
ruling All Progressives Congress (APC) in line with government for the foresight and co-operation in resolving the various security problems across the
settlement banks and pledge appropriate all its campaign promises. signing the MoU, and will reciprocate the gesture by federation.
collaterals accordingly. “The aforementioned taking every step to fulfill its obligations in the
framework has been working well and contributed agreement. Mohammed said: “The annual budgetary allocation to
to the relative stability in the net settlement A twitter user, Victor Lawal, with handle @Vlawal, the military is not commensurate with the internal
operations for settlement of clearing sessions 1 said that the President should stop apologising for In his comment, Country Chair, Shell Companies in security challenges we face, for which we have had to
and 2 on the Real-time Gross Settlement System the long queue ocassioned by petrol scarcity and Nigeria, Osagie Okunbor harped on the leadership continuously rely on the military to assist the police
sack non-performing appointees. role of Shell in the domestic gas market, saying, “for and the Civil Defence Corps. When insurgents take
(RTGS),” he said.
more than 50 years, Shell has been in the forefront of over a chunk of our nation’s territory, we turn to the
“Oga please stop giving excuse. Who have you the campaign to develop and monetise Nigeria’s huge military. When the farmers/herders clash escalates,
“In view of this, it has become imperative for the fired? The #FuelScarcity is primarily a failure of resources and it is good to see SNG continuing in the we turn to the military.
bank to extend the settlement banking your government and until heads roll, I have tradition to grow the domestic gas market and also
arrangement to all the clearing sessions, with stopped taking you serious. No difference between help to improve lives and earnings in Rivers State.” “When kidnappers up their game, we turn to the
effect from January 1, 2018. Specifically, the you and previous governments. military; when illegal bunkerers and pipeline vandals
settlement of net clearing obligations from CSCS, Access Bank gets CBN’s are seeking to overwhelm our oil production and
export, we turn to the military; when ethno-religious
cheques, cards ACH, NIP, NEFT and other
clearing instruments shall be through the account
For Charles Ameh, with twitter handle sustainable banking awards clashes occur, we turn to the military. But when it is
@engrameh, he believed that the only solution to time to give the military the resources it needs to
of settlement banks only”. the problem of scarcity of petrol was for there to be By Ezekiel Enejeta function, we say it is a waste of scarce resources; we
consequences for failures. come up with spurious reasons to deny the military
The CBN advised settlement banks to update the its due.”
agency agreements with their respective non- She wrote: “How can the country move forward
settlement banks. “Merchant banks that do not when there is never consequence for failure and “The scriptures say to whom much is given, much is
ineptitude? How many Ministers have really expected. That also presupposes that to whom much
have settlement banks should appoint a
delivered in their role? is expected, much is given. The Nigeria Governors
settlement bank and inform the CBN Director,
Forum acted wisely in approving the withdrawal of 1
Banking and Payments System Department on or billion dollars from the Excess Crude Account (ECA)
before December 15, 2017 with a copy of the letter “Under your government, the consequence for to fight Boko Haram and other security challenges in
from the settlement bank, accepting to settle for failure is to keep the job and keep failing. This is the country.”
them,” it said. shameful.
Mohammed said: “The aircraft being used for the war,
including fighter jets and helicopters, altogether,
Tokyo stocks close lower on Another user who goes by the name Process consume 64,021.08 litres of fuel per day. With the
profit-taking Advocate on twitter also reiterated that there was
need for non-performing employees and appointees
aircraft flying a total of about 30 sorties a day, and at
N275 per litre, it costs a total of N15,153,428.25 daily
By Ezekiel Enejeta of the president to be sacked. to fuel the aircraft.

Tokyo stocks fell Tuesday on late profit-taking, with “The spares for the aircraft from January to
investors keeping to the sidelines as major global She wrote: Baba we voted for you to change the November 2017 cost N20,019,513,739.88, while
markets remained closed for the Christmas holidays. way things are done in NIG. You have indolent and consumables for the aircraft, and here I am talking of
incompetent array of staff, but can’t change them. Access Bank Plc engine oil, and plugs amounted to N3,863,600
“As trading has gotten thinner with a lack of fresh Your appointees mess your govt up but it’s ok by monthly and N46,363,200.00 yearly. What about the
trading factors, investors appear (to be) cashing in on you. No price for incalculable damage they do. We cost of ammunition? Just for 42 days, from 5th
their recent gains,” said Hikaru Sato, senior technical can no longer defend these. Access Bank Plc has received top honours at the November to 17 December, the cost of ammunition
analyst at Daiwa Securities. inaugural Nigeria Sustainable Banking Awards. was over 5 million dollars.

“Sluggish trading is expected to continue for now as the For another user Oluwatobi John, he prayed the “Since we are using the Air Force as a reference point
market is in holiday mode,” Sato told AFP. President to make the agencies work by setting up The bank won in four categories during the award here, what about the cost of acquiring Air Force
effective rewards and punishment systems. presentation in Lagos. platforms? For example, the 12 Super Tuscano
The benchmark Nikkei 225 lost 0.20 percent, or 46.49 aircraft recently approved for sale to Nigeria by the
points, to close at 22,892.69 while the broader Topix US Government costs a whopping 490 million dollars,
index was down 0.27 percent, or 4.92 points, at 1,827.01. The categories are: Sustainable Bank of the Year, yet this is government to government contract, and
Guinness lifts small Sustainable Transaction of the Year (Oil and Gas the costs of spares, munitions and other consumables
Sector), Sustainable Transaction of the Year are not included.
“It is difficult to see a clear direction in the market as businesses, creates 13 (Agriculture) and Excellence in Women Economic
foreign investors are absent from trade with transaction
volumes low,” Okasan Online Securities said in a millionaires Empowerment. “The costs stated above are for the air force alone and
commentary. restricted to operations in the Northeast alone. We
The awards were conferred by the Central Bank of have not even talked of the army or the navy, which
Investors are awaiting the release Thursday of minutes By Ezekiel Enejeta Nigeria (CBN) in recognition of Access bank’s are also fully involved in tackling internal security
from the Bank of Japan’s policy meeting last week, it outstanding success and leadership in Nigeria’s challenges. Nor have we included the operating cost
said. sustainable banking development. of the Nigerian Air Force in the Niger Delta to curb
Guinness Nigeria Plc said it has created 13 pipeline vandalism, in the Northwest to contain cattle
The dollar changed hands at 113.29 yen, almost millionaires through its just ended, ‘Go Get Access Bank’s Group Managing Director/CEO, rustlers, in the Northcentral to curtail herdsmen and
unchanged from 113.25 yen in Tokyo late Monday. It’promo aimed at helping the growth of small-scale Herbert Wigwe, said: “We are truly honoured to have farmers clashes or kidnapping, armed robberies and
businesses. been selected as the overall winner in all the separatism in other parts of the country.”
Some blue-chip shares were lower, with Nintendo losing categories of this prestigious award. Sustainability is
1.60 percent at 41,680 yen and Canon trading down 0.47 embedded into every aspect of our business
percent at 4,398 yen. operations. It is simply a way of life for us at Access Noting that the opposition has the right to offer
The idea of the promo, according to the company, is Bank. It is inspiring to receive recognition for our constructive criticism, Mohammed said that such a
Mitsubishi UFJ Financial was down 0.45 percent at 836 to help consumers who have business ideas but longstanding success in adhering to sustainable right was not a liberty to distort facts, engage in crass
yen while its rival Sumitomo Mitsui Financial slipped required some capital to start. Aside from the banking principles.” sensationalism and play politics with national
0.67 percent to 4,884 yen. millionaires, other consumers were rewarded with security.
N100, 000, N5, 000 and millions of airtime. These honours cap-off a year during which the bank
Chinese stocks ended higher on Tuesday, led by has received 14 awards across various categories.
heavyweight banking and gas-related shares. Some of these awards are the Most Sustainable Bank He chided those viewing the security fund from the
The company said that through its Malt drink of the Year Award by World Finance for the seventh prism of partisanship for wrong perception, pointing
The benchmark Shanghai Composite Index advanced ‘Goodness to Greatness’ campaign, which, aims at time; the Most Outstanding Business Sustainability out that the military, as a national institution, serves
0.78 percent, or 25.66 points, to close at 3,306.12. celebrating Nigerians who use their positive can-do Award by Karlsruhe Sustainable Finance Awards for all Nigerians, irrespective of their religion, ethnicity
attitude to turn goodness into greatness. the second consecutive time; five awards presented at or political party.
The Shenzhen Composite Index, which tracks stocks on the recently-concluded Sustainability, Enterprise and
China’s second exchange, climbed 0.43 percent, or 8.13 Responsibility Awards (SERAs) including Most Mohammed said if the military had been better
points, to 1,892.02. Brand Manager Malta Guinness, Ifeoma Agu, said: Responsible Company of the Year Africa (Overall equipped to tackle Boko Haram in the early days of
“This is such an exciting time for Malta Guinness Winner), Best Company in CSR/Sustainability in the insurgency, thousands of lives, including service
“The markets regained some of the ground lost in in Nigeria. West Africa. men’s, could have been saved and the war would have
previous sessions but it is hard to predict if they will ended long time ago.
maintain steam as the end of year approaches,” said Wigwe said added: “While we are delighted by the
Zhang Yanbing, an analyst with Zheshang Securities. Coming straight off the back of an incredible numerous accolades, this level of recognition from our He added: “If the funds meant to equip the military
promotion where we were able to give away regulators is, particularly, significant because it have not been diverted into private pockets, there
South Korean shares closed down 0.54 percent on profit- millions in naira cash prizes, this new set of serves as validation that our tireless efforts are may be no need today to withdraw any money from
taking by investors following last week’s rally. activity from Malta Guinness will blow the minds essential to the development of Nigeria’s the ECA for that purpose.”
of Nigerian consumers. sustainability journey.”

FINANCIAL WATCH December 28, 2017 Page 8


FINANCIAL WATCH DECEMBER 28, 2017

It would be recalled also that following the


NBS: Expect worse ‘Tackling youth We discovered also among youths that the spirit of
establishment of banks along the Assumpta Avenue,
volunteerism is no longer there. When you volunteer,
unemployment figures from Q4 unemployment key to you are learning something. some residents, including commercial motorcyclists,
started calling part of the Avenue, Bank Road.
improving our economy’ A young graduate lawyer will leave school with the
By Ezekiel Enejeta
mindset of getting a job with an established law firm. A staff of one of the banks, who spoke to Vanguard on
By Haruna Magaji strict grounds of anonymity, said that most of the
With the situation in the economy, he might stay
The National Bureau of Statistics (NBS) says the banks bear Assumpta Avenue as their official address.
home for three years without getting his dream job.
number of unemployed people in Nigeria will Lagos State is set to undertake new investments
to boost youth employment. In this interview with
increase in the fourth quarter of 2017. The bureau Rather than stay home without a job, it will pay him He stressed that “it is this Avenue that Governor
Daniel Essiet, Commissioner for Wealth Creation
made this prediction in the third quarter and Employment, Babatunde Durosinmi-Etti, to volunteer with a legal firm. If he continues to stay Rochas Okorocha has sadly changed to Muhammadu
unemployment report, which was recently gives an insight into government’s programmes home, he will become rusty. Buhari Road”.
released on its website. aimed at reducing unemployment.
If he decides to volunteer with a legal firm, he will Another resident of Owerri, Bro Ikay, equally
How is Lagos tackling youth unemployment? not only learn something, he will be considered when lamented that Okorocha has changed the names of
“An economic recession is consistent with an other major roads in Owerri.
there is a vacancy within the firm. He may not earn a
increase in unemployment as jobs are lost and As you are aware, rapid urbanisation comes with salary, but he gains experience.
new jobs creation is stalled. The unemployment its attendant problem of high youth unemployment. “Wetheral Road is now Sam Mbakwe Road, while
rate, induced by a recession, typically peaks about This is expected, Lagos being the commercial and We are trying to reorient our youths about Okigwe Road has been renamed Nnamdi Azikiwe
15-18 months after the beginning of a recession or economic nerve centre of Nigeria. While the Lagos volunteerism, to go out and volunteer if they want to Road”, Bro Ikay said.
four-eight months after the end of a recession boasts of high potential for growth of small get jobs.
businesses, it battles the negative effect of Continuing, Bro Ikay recalled that Okorocha had
before it returns to its pre-recession trend,” the earlier renamed Douglas Road after the 10-year old
development which is high youth unemployment. What about school leavers?
report read. boy, Somtochukwu Ibeanusi, who was shot dead,
Bearing this in mind, Governor Akinwumi Ambode We also have school leavers who couldn’t advance during the destruction of Ekeukwu Owerri market.
on assumption of office, decided to set up the because of family financial difficulties.
Ministry of Wealth Creation and Employment, first Reacting also online, Agunwa Emeka Nzeribe, who
of its kind in the entire federation that will address How do we address it? claimed to be a chieftain of All Progressives Congress,
these issues. APC, and a Catholic faithful from Oguta, said that
There are two things we are trying to achieve the action of Okorocha in renaming the Assumpta
He reasoned that if the state is to grow small through the school system. While in school, we want Avenue is unacceptable, but quickly added that “we
businesses, it must create an enabling environment the system to produce students who can be employed must treat it with caution”.
for them to operate, with access to finance and or can become entrepreneurs.
market . When they grow, they will be able to He wondered why Governor Okorocha should not
employ more people. They can come out to work for people or set up their have opened an entirely new road and name it after
businesses. We are going back to schools to the President, like the former Governor, Chief Ikedi
On the other hand, a lot of youths have problems of campaign to inculcate entrepreneurship skills in Ohakim did on Musa Yar’Adua Road.
employability skills. We have lots of unemployed students.
graduates. “He is no longer loved by Imo people and he is playing
That is why we are working with Lagos State to the gallery to ensure that he wins the favour of the
The question is, are they unemployed because there Technical and Vocational Education Board Presidency to enable him install a preferred
are not jobs? We need to look at the causes of under (LASTVEB) to create youth entrepreneurs clubs in candidate as his successor. We should ask ourselves
employment, to find out whether the situation is technical and vocational colleges in the state. what made him stop the unveiling of the remaining
structural, or are there jobs the people cannot fill? statues moulded in New Owerri,” Nzeribe said.
How do they get the jobs they are trained for ?
What strategy have you adopted to address the Continuing, this Catholic faithful recalled that
problem? That is why we are reaching out to private everybody in Imo State knows this road as Assumpta
organisations that know the industry skills’ needs. Avenue, until recently when banks took over both
“This, in the case of Nigeria, will be a peak in Q4 Lots of government programmes have been created We have reached out to companies such as General sides of the road, from Douglas Road Junction, which
2017, which means we will only expect in the past to address this challenge. Right from Electric, Sterling Bank and quite a number of others. became known as Bank Road.
unemployment to return to its normal trend in Operation Feed the Nation (OFN), National
2018. The length of the lag depends on how deep Directorate of Employment (NDE) and National We sat down with them and say, let us work together “As his days are numbered, I implore all Imolites to
Poverty Eradication Programme (NAPEP), these and solve the problem because it affects all of us.The tarry awhile in order not to jeopardize chances of
and long the recession was.”
were all run by the government. responses have been good and gradual. Of course we desired change Imo people are yearning for in 2019”,
The report had said the number of people in full- Nzeribe pleaded.
are expecting more. The important thing is that we
time employment reduced from 52.7 million in the Taking a realistic view, we believe that government are involving the private sector.
second quarter to 51.1 million in the third
quarter.
does not create jobs. Only the private sector can
create jobs.
IST demands increased
The private sector knows the kind of skills they need.
funding for operational
According to the report, the number of Consequently, we decided that the best strategy
was to put in place an initiative to enable small efficiency
unemployed people within the labour force (15-64
businesses.
years) increased from 13.6 million to 17.7 million By Ezekiel Enejeta
while the number of underemployed people
increased from 15.9 million to 18 million. The Investments and Securities Tribunal, IST, has
The people captured in the unemployed bracket requested for increased funding in order to effectively
are those who recently lost their jobs and those cope with expansion in its operational
responsibilities.
who just joined the labour force either by age or
completion of the pursuit of an educational Chairman of the Investment & Securities Tribunal
degree. (IST), Isaiah Idoko-Akor, made this request when
members of the Tribunal visited the Acting Director
FG approves LPG extraction General of SEC, Dr. Abdul Zubair in Abuja.

plant for Green Energy He said: “IST is serving the market, it is very
important to the market and that is why we commend
By Haruna Magaji SEC for its support to the IST.

“However, IST needs to be strengthened to be able to


Green Energy International Limited, the operator carry out its functions effectively. As the market is
of the Otakikpo marginal field in OML 11, has Lagos State Commissioner for Wealth Creation expanding, we also need funds to expand our
We have also reached out to international
secured the Federal Government’s nod for the and Employment, Babatunde Durosinmi-Etti
development partners ,such as Ford Foundation,
operations to be able to serve better” he said.
establishment of a Liquefied Petroleum Gas (LPG Mercy Corps and the United Nations Development
) extraction plant at Ikuru Town, Rivers State. How did we do this? Akor, while commending the SEC on the various
Programme(UNDP). We work with them on our
The License To Establish (LTE) of the initiatives it has rolled out, also called for increased
problems. We know our problems. We seek for areas
The state government decided to set up the enlightenment and sensitisation of the investing
12MMSCFD capacity plant was issued to the of synergy.
Employment Trust Fund. The government public especially as it relates to seeking redress on
company by the Department of Petroleum allocated N6.25 billion every year to small and issues relating to the capital market.
Resources (DPR) as the company moves to fulfil What about the informal sector?
micro businesses as small loans. The loans range
its obligations as a pilot project approved by from N250, 000 to N5milion. The fund is easy to
At the informal sector, we have artisans and trade
Speaking earlier, Zubair said that the Commission
government for zero gas flares operation in the access but at the same time, there are eligibility will partner with the IST
associations. We have welders, mechanics, painters
Niger Delta. criteria.
and others. All these are jobs. They are part of small
in its quest to ensure zero tolerance on infractions in
businesses.They can also access the ETF and grow
In the past, such funds were run by government. In Nigeria’s capital market and to ensure that
The company, which began production last their businesses.
this case, we are dealing with tax payers. In line perpetrators of fraudulent acts are brought to book.
February, said it was determined to ensure full with Governor Ambode policy of inclusion, the
utilisation of the gas produced from the field for We keep saying that Togolese and artisans from
government decided that all the stakeholders He said: “SEC has zero tolerance on infractions
neighbouring countries are stealing our jobs. Do we
LPG and power generation. affected in the ecosystem, the young entrepreneurs,
know our artisans are now doing better. To address
adding that anyone that flouts the rules will be made
the civil society organisations, gender groups, to face the consequences of such actions.
this, we have created a compendium of registered
It stated that the approval has made it possible young people should be part of the machinery that
artisans and tradesmen. The compendium provides
will set the criteria and methodologies on how to
for the company to make final investment details on 20,000 registered artisans.
run the fund to get to the right people. Today, the
decision (FID) by awarding the engineering, fund is managed by nine people, out of them, only
procurement, construction and installation of the Every artisan on the compendium has a unique
two of them are government officials, my self and
LPG extraction plant to PCC-LAMBDA identification number, and an identity card. Apart
the Commissioner for Finance.
from these, the artisan will be given a unique ATM
Consortium, formed between Nigeria indigenous card that is linked with Ibile Micro Finance Bank for
companies and a Chinese company, Peiyang The trust fund is being run independently by this
loans. The other benefits is access to the state’s
Chemical Equipment Co. Ltd (PCC), which is the group of eminent citizens of Lagos and Nigeria.
health insurance scheme.Those on compendium will
That is why the programme is a success.
original equipment manufacturer (OEM) and will be listed on the market place where they can
be responsible for manufacturing and design advertise their businesses.
How about employability challenges?
activities associated with the project.
We examined three layers of those that are Tension in Owerri over
The company’s Director of Legal and Corporate unemployed. In our study of the factors that have
Services, Mr. Olusegun Ilori, explained that the led to low employability skills, we discovered that
renaming of Maria Assumpta
gas utilisation programme involves the use of the there are jobs that our youths lack the orientation Avenue as Buhari Road
to contest for them.
lean gas to power the 12MW gas generator at
Otakikpo field out of which 5MW would be By Cynthia Adigwe
From my experience, some of the youths don’t know
dedicated to the host communities in line with its where the jobs are. Then, there is the issue of OWERRI—Uneasy calm has enveloped Owerri, Zubiar told the IST team that the SEC has been
MoU with the government while the LPG and cognitive skills’ building institutions. following the renaming of Assumpta Avenue by embarking on a number of initiatives to protect
propane would be bottled and sold. Part of the Governor Rochas Okorocha, to Muhammadu Buhari investors in the market and ensure that they reap the
LPG shall be for domestic use within Otakikpo The challenge is that the youths are not exploring Road. benefits of their investments.
communities to support small scale industries. those institutions that can help them build their
cognitive skills. We are talking about groups and The Road which was named after the magnificent “SEC has rolled out a number of initiatives and
social institutions, such a Boys Scout, Girls Guild, Maria Assumpta Catholic Cathedral, Owerri, several campaigns which have been yielding results. These
He said the LPG plant, which is expected to be Red Cross andDebating societies. initiatives are to ensure that investors are aware of
decades ago, had remained so until it was renamed
completed within 12 months would be a booster by Okorocha. what to do to protect their investments
for Nigeria’s drive toward utilisation of gas All these groups are vital in building employability
resources for domestic gas. The company recently skills. These days ,we don’t have active extra Rrecall that Assumpta Avenue, with the Zip Code “The e-dividend is one of such campaigns and we
delivered 6MW gas generator to the community curriculum activities in schools. These activities go 460211, stretched from the old Library Roundabout, enjoin investors to key-in so that they can reap the
while the other batches will arrive in the new a long way in helpling youths to build Okigwe/Wetheral Roads, to Assumpta Cathedral, benefits of their investments” he added.
employability skills. Control Post.
year.

FINANCIAL WATCH December 28, 2017 Page 9


FINANCIAL WATCH DECEMBER 28, 2017
NEWS

Profit-taking drags
equities to N225b loss
By Haruna Magaji

Nigerian equities reopened yesterday with a


tinge of bearishness as profit-taking
transactions on many large-cap stocks dragged
the overall market position to a net loss of
N225 billion.

The two main value-based indices at the


Nigerian Stock Exchange (NSE) closed on the
negative, underlining that the decline was due
to price depreciation. The All Share Index
(ASI) dropped by 1.64 per cent to close at
37,889.57 points. The market capitalisation of
all quoted equities declined by N225 billion to
close at N13.484 trillion.

The downtrend was due to widespread profit-


taking transactions, especially losses recorded
by large-cap stocks such as Dangote Cement,
Nigerian Breweries, Okomu Oil, Presco and PZ
Cussons Nigeria.

There were nearly two losers for every gainer


with 14 gainers and 24 losers. Cadbury Nigeria
recorded the highest gain, in percentage terms,
with 9.91 per cent to close at N15.75 per share.
11, formerly Mobil Oil Nigeria, gained 4.89 per
cent to close at N178.31. Fidelity Bank
appreciated by 4.62 per cent to close at N2.49
per share. Law Union and Rocks Insurance
Airlines count losses as bad weather disrupts flights nationwide went up by 4.23 per cent to close at 74 kobo
while NEM Insurance appreciated by four per
cent to close at N1.56 per share.
By Ezekiel Enejeta complicated its schedules with the reports that the affected flights
attendant revenue loss and fidelity to on On his part, Arik spokesman, Ola involved Air Peace, Dana Air, Arik On the negative side, Okomu Oil led the losers’
Inclement weather occasioned by the time performance. Adebanji said the airline could not Air, Azman and Air France. chart by five per cent to close at N67.69 per
harmattan haze has forced many domestic operate flights into Asaba, Benin, Warri , share. Omoluwabi Micro Finance Bank shed
carriers to cancel flights from the Lagos He said most passengers have refused to Ilorin and Ibadan. NAN reports that the affected cities 4.88 per cent to close at 78 kobo. Presco
Airport into Port Harcourt, Enugu, show understanding that the delays and are Port Harcourt, Owerri, Enugu depreciated by 4.86 per cent to close at N68.50
Calabar, Uyo, Benin, Warri, Asaba , cancellations are beyond the airlines but He said :” This poor visibility is and where both out-bound and in- per share. MC Nichols dropped by 4.76 per cent
Ibadan and Ilorin. forces of nature. impacting negatively on our flights bound passengers are currently to close at N1.20 while Nigerian Breweries
because the airline is loosing revenue.” stranded nationwide. declined by 4.26 per cent to close at N134.04
The harmattan haze resulting in poor He said :” The inclement weather is per share.
visibility is preventing airlines from seriously affected our operations . We have DANA Air spokesman Kingsley Ezenwa The Nigerian Meteorological Agency
operating flights into airports less than no choice but to either delay or cancel said though the airline operated flights , (NiMet) had on Tuesday predicted The momentum of activities however improved
800 meters approved weather minima by some flights because we will not fly into but it had to monitor the prevailing that dust haze weather conditions in as total volume traded appreciated by 103.9 per
aviation regulatory agencies. any airport below the approved weather weather that it meets the prescribed horizontal visibility range of one to cent to 425.96 million shares worth N2.12
minima. minima. three kilometres would prevail over billion in 2,937 deals. Transactions in the
Airports in South South and South East most parts of the county on shares of Transnational Corporation of Nigeria
are worst hit by the inclement weather. “This is forcing us to lose money and our He said: “Though DANA Air did not Wednesday. topped the activity chart with 107.1 million
Airlines are losing revenue. name because passengers will not cancel any flights, but we experienced a shares valued at N154.77 million. Fidelity
understand . This could even force some lot of delays .” NiMet also predicted a reduced Bank followed with 94 million shares worth
Air Peace and Arik Air, the biggest passengers to attack our staff, we think localised visibility of less than N220.75 million while Skye Bank traded 51.65
operators by volume of flights, are hugely the relevant security agencies should Investigations reveal that many 1000m over many cities throughout million shares valued at N25.82 million.
affected. provide security for our workers and passengers remain stranded at airports the forecast period.
equipment . waiting airlines to announce boarding for Analysts at Afrinvest Securities Limited said
Air Peace Corporate Communications flights. When NAN visited the airport they remained optimistic on the outlook for
Manager Mr Christian Iwarah told The “Whatever has happened, we are Lodi g h yesterday, there were series of flight equities.
Nation that the airline was badly affected eavily on all sides. How do we handle the Some domestic and international airlines announcements on either
by the weather; it cancelled six flights on backlog of passengers, issues about refund yesterday delayed or cancelled flights at cancellation or delay of different “Given the significant rise in oil prices in recent
Wednesday. and other challenges.” the Nnamdi Azikiwe International flights. At about 10 a.m. it was times and the broadly bullish outlook for
Airport, Abuja, due to adverse weather announced that Dana flight to Port commodity prices for 2018, we maintain our
Iwarah said the cancellation of flights into He said airline only operated flights today conditions. Harcourt had been cancelled due to positive short- to medium-term perspective for
Benin, Calabar, Uyo, Enugu, Port into Lagos , Accra, Owerri, Abuja and Port prevailing bad weather conditions equities,” Afrinvest Securities stated.
Harcourt and Akure has hugely Harcourt. The News Agency of Nigeria (NAN) across the country.

Miss Ifidon Sarah representing Edo

Bitcoin slumps through $15,000 after biggest rally State Miss Onyeabo Amarachi
representing Abia State, emerged
first and second runner ups,
By Cynthia Adigwe be zero or $1m or anything in between.” Bloomberg Television. Rebound from the respectively. The award given to her,
past week’s selloff portends further “Once a market like this one locks which was an artefact (African queen
The bitcoin fell below $15,000 after the For skeptics doubting whether declines. into those patterns it becomes bronze head in a moulded box),
cryptocurrency’s biggest rally in two individuals and businesses will truly pretty good” to follow via chart- speaks of African culture and
weeks ended a rout that wiped more start using bitcoin as a medium of “It’s much more likely once you’ve made a based analysis, he said.
big downward movement like the one we
symbolic of the Bank’s pride of its
than $9,000 off the price. exchange — as opposed to some
made last week that you have a bigger and heritage.
officially backed digital currency — the Spooner said it was possible
Cryptocurrencies including the bitcoin short-lived more complex correction,” a Sydney-based bitcoin could drop to $5,700 or
have become a subject of controversy in analyst at CMC Markets, Ric Spooner, told $8,700 in coming months. Miss Nigeria focuses on issues that
Nigeria and the Central Bank of Nigeria affect Nigerian women; she is an
has said it is studying the situation. ambassador of culture, of purpose, of
The largest digital coin dropped 6.5 per Investors sell off shares after Yuletide celebration the environment. The ambition of the
new beauty queen is to provide
cent to $14,874 at 11:44 a.m.in New York
on Wednesday, having earlier climbed as Similarly, the banking index lost 0.3 per Bullish investor sentiment also
medical and psychological help for
By Haruna Magaji
much as 3.6 per cent. cent — pressured by Ecobank prevailed in the Treasury bills space, women who are victims of rape as
As businesses opened on Wednesday after Transnational Incorporated and United as the average T-Bills yield declined well as empower them.
Among rival digital currencies, ripple the Yuletide holiday on Monday and Bank for Africa Plc, which shed 2.8 per by 0.44 per cent to settle at 13.86 per
rose by eight per cent, while ethereum Tuesday, investors in the Nigerian cent and 0.8 per cent, accordingly. cent. Yield declines were recorded on Speaking with journalists
and litecoin fell, according to data equities market started the week on a the one-month, three-month and six- immediately after the crowning of the
compiled by Bloomberg. negative note as share sell-offs On the other hand, the insurance index month tenors, while the nine-month new pageant queen, Fela Ibidapo,
characterised trading. closed one per cent higher as investors and 12-month tenors recorded
The relatively quiet day for bitcoin came positioned in NEM Insurance Nigeria Plc respective yield advancements of 0.39
Head of Corporate Communications
on the heels of a five-day slump that The Nigeria Stock Exchange market and Axa Mansard Insurance Plc, which per cent and 0.57 per cent. of Heritage Bank said, “We are
reached 44 per cent at its depths and capitalisation dropped by N225bn to close gained four per cent and 0.5 per cent, partnering with Folio Group to
took the coin below $11,000 on Friday. at N13.483tn from N13.708tn recorded on accordingly, while the oil/gas index gained The average money market rate shed empower women”, adding that this is
Friday. 0.5 per cent, solely on account of Mobil 0.63 per cent to settle at 5.38 per cent what the Daily Times used to be
Just four days earlier, it rose within Nigeria Plc, which appreciated by 4.9 per as the open buy-back and overnight known for and we wants to help them
striking distance of $20,000 after a torrid A total of 425.959 million shares worth cent. rates declined by 0.67 per cent and to revive it. “Our involvement in this
advance that started in early December. N2.121bn exchanged hands in 2,937 0.58 per cent, respectively.
Investor sentiment weakened as indicated
is not because of beauty per se, it’s
deals.
Investors continued to snap up shares in by market breadth which retreated as 14 primarily to empower ladies and
companies often seen as a safer The equities market recorded a 1.6 per stocks gained while 23 declined. women generally; to encourage them
alternative to investing directly in cent decline at the end of trading on Heritage Bank, Group to always put in their best in
cryptocurrency itself. Wednesday to buck a three-day gaining Cadbury Nigeria Plc, Mobil Nigeria Plc whatever they do to make a living.”
streak; thus, paring the benchmark index and Fidelity Bank Plc topped the gainers’ partner on pageant
Digital Power rose in early trading after year-to-date return to 41 per cent. chart, appreciating by 9.9 per cent, 4.9 per
By Ezekiel Enejeta Ibidapo agreed that the impact of the
saying it was boosting its computing cent and 4.6 per cent, respectively while
infrastructure to mine digital coins. On Okomu Oil Palm Plc, Presco Plc and
initiative might not be so visible in
Dangote Cement Plc was the major drag Heritage Bank Plc has partnered with Folio
Track Innovation also advanced. to performance after it shed 3.9 per cent; Nigerian Breweries led the losers’ chart, the short-term period, but he was so
Media Group, publishers of the Daily Times, to
although selling pressure were also sliding by five per cent, 4.9 per cent and organise the 60th anniversary of Miss Nigeria optimistic that it would impact
Bitcoin futures on the CME Group observed in large-cap stocks within the 4.3 per cent, respectively. and the 2017 edition of the beauty pageant. positively on their contributions to
exchange slipped by 3.6 per cent. consumer goods, banking and agriculture the nation-building process in the
Miss Ehiguese Mildred Peace, representing
sectors. However, activity level waxed “Given the significant rise in oil prices in long run. Also speaking, chairman of
Adamawa State, emerged Miss Nigeria at the
Bitcoin’s volatility is adding to an stronger as volume and value rose by recent times and the broadly bullish grand finale of the beauty pageant held at Eko Folio Media Group, Mr. Fidelis
ongoing debate about how to value the 103.9 per cent and 37.9 per cent to outlook for commodity prices for 2018, we Convention Centre in Lagos. Miss Rita Chinedu,
digital coin which has surged about maintain our positive short — to medium-
Anosike said the group would use the
N416.9bn and N2.1bn, respectively. representing Delta State and Miss Benjamin
1,600 per cent this year. term perspective for equities,” analysts at Anne Ufuomanefe, (Ondo State) were first and Miss Nigeria pageant to create a
Sector performance was mixed as three of Afrinvest Securities said in a draft. second runners-up. strong female platform, remarking
“Nobody knows the ultimate value of this the five major NSE indices closed in the that the group has signed a
Miss Cross River, Ana Victoria Lawrence
underlying asset,” the President of the red. The industrial goods index led the In the Treasury bonds space, the average emerged as Miss Emerald Queen, after winning partnership deal with the National
American Institute for Economic losers chart, plunging by 2.6 per cent on yield declined marginally by 0.009 per the task organised by Heritage Bank, which Agency for the Prohibition of
Research, a Massachusetts-based account of sell-offs in Dangote Cement cent to close at 14.06 per cent. Yield centred on assessing the contestants on their Trafficking in Persons (NAPTIP) over
research group, Edward Stringham, said while the consumer goods index trailed, advancements were recorded on two knowledge, complement, fluency, articulation,
on Bloomberg Television. tenors as yields on five tenors declined appearance based on ingenuity and creativity of the next five years to tackle the
closing 1.2 per cent lower, following price
depreciation in Nigerian Breweries Plc, while all others traded flat. the Nigerian contemporary hairstyles. Whilst, scourge of human trafficking.
“We cannot predict whether it’s going to which declined by 4.3 per cent.

FINANCIAL WATCH December 28, 2017 Page 10

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