Nigeria's export level to grow as NEXIM Bank MD Elected Honorary President of G-NEXID

Nigeria may begin to enjoy high level of trade partnership with countries across the world following the election of Mr Roberts Orya, the MD/CEO of the Nigerian Export-Import Bank (NEXIM) as the new  President of Global Network of Export-Import Banks.

The G-NEXID, with a membership of 24 institutions has the primary objective of serving as a channel to bridge the gap between financing of trade and the achievement of the development goals of developing and emerging economies by fostering South-to-South trade flows.

In a chat with newsmen in A buja, MD/CEO of the Nigerian Export-Import Bank (NEXIM), Mr Roberts Orya, said Nigeria will leverage on the opportunity to call for more foreign direct investment into the country.

Mr. Orya assured that it will continue to facilitate trade between Nigeria and other countries through development of infrastructure, adding that this will strenghthen the export level of Nigeria.

The Nigerian Export-Import Bank was established in 1991 as an Export Credit Agency with the broad mandate to promoting the diversification of the Nigerian economy and deepening the external sector.

FG Commences Privatisation of Nigerian Railway

In a bid to ensure that the present gains recorded in the railway transport are not eroded in the years ahead, the federal government  has begun moves to privatise the Nigerian Railway Corporation (NRC).
Already, it has directed the Bureau of Public Enterprises (BPE) to commence the privatisation of NRC and other railway facilities across the country.

The National Council on Privatisation (NCP) gave the directive to the BPE and the Nigeria Infrastructure Advisory Facility (NIAF), after its council meeting in Abuja.

Director-General of the BPE, Benjamin Dikki said the decision to reform the railways was borne out of the government’s desire to avoid the collapse and eventual shut down of the railways, generally regarded as a loss making but socially and economically imperative to the nation.

He stated that NIAF was committed to fund the consultancy for the development of the roadmap and framework for the concession of the rail tracks of NRC.

In 2005, BPE through the World Bank funding, engaged the services of CPCS Transcom as transaction advisers to advise in the concession of the rails.

The firm had completed about 80 per cent  of the assignment including the concession of the central railways (Itakpe-Ajaokuta-Warri line which terminates at Ovu) and the due diligence on the entire rail network before its contract was suspended because of the proposed modernisation of the network which was to replace the existing network with wider gauge.

He explained that because of lack of funding, the modernisation  project was shelved by the Federal Government which directed that the existing network should be rehabilitated and concessioned to private operators.

The rehabilitation of the railway system includes track spot renewal of Lagos to Kano and Maiduguri to Port Harcourt lines, supply of 25 new locomotives to boost existing locomotive power base of the corporation, upgrading of carriage and wagon workshops, re-equipping the workshops, supply of service support, strategic rebranding of the corporation, rehabilitation of stations and marshalling yards.

It would be recalled that a new railway bill which is one of the eight reform bills recently approved by the NCP and Federal Executive Council (FEC) is currently before the National Assembly for passage into law.

The new bill seeks to among others, repeal the Nigerian Railway Corporation Act, 1955; provide the appropriate market design and legal framework for the implementation of Government’s reform programme; separate the roles of policy making, regulation and operation; provide a platform for the introduction of private sector concessionaires and promote competition in the provision of railway services nationwide.

The Public Enterprises (Privatization and Commercialization) Act, 1999 scheduled the Nigeria Railway Corporation (NRC) for privatization and the National Council on Privatization (NCP) in 2002 approved that the enterprise be concessioned to private operators to provide freight and passenger railway services using the vertical integration model.

Unpaid salaries: Strike imminent in 18 states

There are strong indications that workers in 18 states may start an indefinite strike on Monday over unpaid salaries.
Reports by Punch Newspaper, quoted the General Secretary of the NLC, Dr. Peter Ozo-Eson, saying the congress had sent its task force team to various geo-political zones of the country.

According to him, the strike has started in Plateau State, adding that a similar exercise will begin in Cross River State and others on Monday.

The National Administrative Council of the Nigeria Labour Congress had, on March 19, 2015, set up a task force to pursue payment of salary arrears owed workers by some state governments.

The report of the task force, which was exclusively obtained by our correspondent, showed that 19 states are owing salaries and pensions.

The states owing salaries or pensions are Abia, Akwa Ibom, Bauchi, Benue, Cross River, Ekiti, Imo, Jigawa, Kano, Katsina, and Kogi. Others are Ogun, Ondo, Osun, Oyo, Plateau, Rivers and Zamfara states.

However, a look at the report reveals that Adamawa, Anambra, Bayelsa, Borno, Delta, Edo, the FCT, Gombe, Kaduna, Kwara, Lagos, Nasarawa, Niger, Sokoto and Taraba are not indebted to their workers.

The report stated that Abia State had not paid salaries of workers of the State Teaching Hospital for nine months.

The state is also said to be owing workers of the Hospital Management Board eight months’ salary; Abia State Universal Basic Education Board, six months; Abia State Polytechnic, five months; local government workers, four months; and teachers, three months’ salary arrears.

It was stated that while Enugu State had paid salaries of civil servants up to date, parastatals were owed 12 months’ salaries and pension and gratuity remain unpaid since 2010.

Others states owing are Osun State with six months’ salary and pension arrears; Plateau with six months salaries and seven months pension; Benue with five months salaries and four months pension arrears; Kogi with four months of pension and salary arrears; and Oyo which owes three months salaries and between five and 11 months of pension arrears.

Also among the states which are likely to owe salaries and pension of workers into the incoming administration on May 29 are Ekiti with three months of unpaid salaries.

Jigawa is owing judiciary workers a month salary arrears in 2015.

Ondo owes one month salary and pension, while Ogun is owing one month salary and 52 months of unremitted pension deductions to the Pension Fund Administration.

Although Zamfara State has paid workers’ salaries up to date, the salaries of workers who were recruited in 2014 have not been paid.

The NLC Task Force also stated that Rivers State owes one month of workers’ salaries and three months of pension while Kano has yet to pay newly employed teachers for three months.

However, the Task Force report was silent on the status of Yobe and Ebonyi on the ground that there was no information on them.

Fuel crisis: Senate summons Okonjo-Iweala, Allison-Madueke, NNPC

The Joint Senate Committees on Petroleum Resources (Upstream and Downstream) on Friday ordered the Minister of Finance/Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, and her counterpart in the Petroleum Resources Ministry, Mrs. Deziani Allison-Madueke, to appear before it on Monday next week over the lingering fuel crisis in the country.

Also summoned along with the two ministers are the Group Managing Director, Nigerian National Petroleum Corporation; Managing Director, Petroleum Pricing and Regulatory Agency; and the Director of the Department of Petroleum Resources.

Representatives of the Major Oil Marketers Association of Nigeria; Independent Petroleum Marketers Association of Nigeria and the National Association of Road Transport Owners, are also expected to answer questions from the senators at the National Assembly Complex by 10:00am.

A statement issued in Abuja by the Chairmen of the two committees, Senators Emmanuel Paulker (Upstream) and Magnus Abe (Downstream), explained that the invitation of the public officers and groups was as a result of the assignment given to them by the senate.

The statement explained that the Deputy Senate Majority Leader, Senator Abdul Ningi, had on Thursday drew the attention of the Senate to the lingering fuel scarcity in the country and the untold hardship on the generality of Nigerians.

It added that Ningi had also urged the federal parliament to look into the matter with a view to finding the causes and lasting solution to the problem.

Power generation drops to 2,000MW —FG

The country is currently generating about 2,000 megawatts of electricity, down from over 4,000MW recorded early last month, the Federal Government has said.

It also revealed that though power generation was a meagre 2,000MW; that was enough gas to produce over 6,000MW.

The government blamed the disparity in the generation potential and actual output on the activities of gas pipelines vandals. Most power generating plants across the country produce electricity using gas-fired turbines.

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Nigeria's NPDC workers strike, 100,000 b/d oil output shut in: unions

Nigerian oil workers' unions at state-owned Nigerian Petroleum Development Co Tuesday said they have begun industrial action to protest the transfer of the operatorship by the government of prolific onshore oil block OML 42, sold by Shell, to an indigenous company.

The strike by the NPDC branches of the white collar Pengassan and its blue-collar counterpart Nupeng to protest the transfer of OML 42 to Neconde Energy, shut down about 100,000 b/d of NPDC's oil production, union and company sources said.

"We have decided to embark on the industrial action after all attempts to get the (NPDC) management to revisit the transfer process proved abortive," the unions said in a joint statement.

Sources later told Platts that protesting workers had pulled out of oil fields operated by NPDC except OML 38.

Nigeria's NPDC workers strike, 100,000 b/d oil output shut in: unions

Nigerian oil workers' unions at state-owned Nigerian Petroleum Development Co Tuesday said they have begun industrial action to protest the transfer of the operatorship by the government of prolific onshore oil block OML 42, sold by Shell, to an indigenous company.

The strike by the NPDC branches of the white collar Pengassan and its blue-collar counterpart Nupeng to protest the transfer of OML 42 to Neconde Energy, shut down about 100,000 b/d of NPDC's oil production, union and company sources said.

Sources later told Platts that protesting workers had pulled out of oil fields operated by NPDC except OML 38.

Court orders GTBank to refund N5.3b illegally withdrawn from customer’s account

A High Court of the Federal Capital Territory (FCT) sitting in Apo yesterday found Guaranty Trust Bank (GTB) guilty of illegally withdrawing N5.3billion from an account owned by one of its customers, Dr. Ted Iseghohi Edwards of Edwards and Partners Law firm.

Justice Valentine Ashi, in a judgment, held that GTBank was without any defence to its action and ordered the bank to pay the money – N5,240,516,186.21 to the owner through his Zenith Bank Plc account.

The judge further ordered that the N5.3billion should attract 10 per cent post-judgment interest, and another 21 per cent interest from December 12 last year when GTBank illegally withdrew the money, until the bank eventually paid Dr. Edwards.

The judge struck out the Central Bank (CBN), the Accountant-General of the Federation (AGF), Jonah Otunla, Minister of State for Finance  Ambassador Yuguda, Anaocha Local Government Area and the Incorporated Trustees of Association of Local Governments of Nigeria (ALGON) from the suit as defendants on the ground that they were not necessary parties.

Edward initiated the suit marked FCT/HC/CV/939/2015 in January, this year after GTBank carried out the illegal withdrawal of the money on December 12, last year.

The money was paid into Dr. Edwards’ law firm’s account with GTBank on January 2, last year by the AGF as a settlement of a judgment got by his clients, Impecca Services Limited and His Royal Highness, Eze Samuel Ezekwo against ALGON for the consultancy services they rendered to the 774 local governments.

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Marketers insist on payment of outstanding subsidy

Oil Marketers Association of Nigeria (MOMAN), and Depot Petroleum Products Marketers Association (DPPMA), have called on the Federal Government to offset the outstanding subsidy claims to enable them import Premium Motor Spirit (PMS).

Specifically, the association said that the current fuel scarcity in the country might persist till the end of the month, if the Federal Government failed to pay their outstanding claims on subsidy.

The Executive Secretary MOMAN, Obafemi Olawore, said at a media briefing in Lagos last week that the outstanding payment on subsidy and interest remained unpaid by government and this had led to its members’ inability to import petroleum products in the last few days.

According to him, the scarcity may also persist beyond the hand over date that will usher in a new political administration of Gen Muhammadu Buhari (rtd).

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Nigeria's foreign exchange reserves rise by 1 pct by May 15

Nigeria's foreign exchange reserves rose marginally by 1.05 percent month-on-month to $29.80 billion by May 15 from $29.49 billion a month earlier, data from the central bank showed on Tuesday.

The forex reserves of Africa's biggest economy and top crude exporter have been on the decline since last year when the central bank used the reserves to support the ailing naira currency, which has depreciated by 7.5 percent so far this year due to falling global oil prices.

The reserves were however down 20.6 percent year-on-year, compared with $37.54 billion in the same period a year ago.

CBN Retains interest rate at 13 per cent with revived CRR

 

The Central Bank of Nigeria has retained the country’s benchmark interest rate at the current 13 percentage point, at the end of  its two-days Monetary Policy Committee on Tuesday, while stressing the concern to conserve foreign exchange reserves that have been depleted in recent months to support a weakening naira.

It would be recalled that the CBN Governor, Godwin Emefiele, at the last policy meeting said it was not possible for it to intervene on a daily basis to supply banks with foreign exchange and support the naira currency, following the high shrinking state of the Naira.

Emefiele said the cash reserve requirement (CRR), which was previously 20 percent on private sector deposits and 75 percent for public sector deposits, has been revised to 31 percent for both public and private sector deposits.

We created petrol shortage so FG would pay us,’ marketers confess

Oil marketers in Nigeria have said the current fuel scarcity in the country is their creation, according to reports.

The marketers explained that they have been forced to hoard fuel due to the failure of the Federal Government to pay them the remaining subsidy debt, Vanguard reports.

The marketers reportedly said further that they had to manage the product they had due to uncertainty on what actions the incoming government of President-elect, Muhammadu Buhari would take.

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States Finance Commissioners Call for the Scrapping of SURE-P

The Chairman of the Finance commissioners forum, Timothy Odah, has called for the scrapping of the Subsidy Reinvestment and Empowerment programme, SURE-P, describing it as an avenue for looters.

Timothy while speaking with news men in abuja, said the subsidy scheme has denied state governments funds in running the affairs of the states, while many states are unable to pay workers salaries.

It would be recalled that the Federation Account Allocation Committee last week shared N388 billion as revenue for the month of April, N200 billion lower than the previous month’s allocation. It is the lowest revenue shared among the three tiers of government in 10 months.

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SURE-P GIS Employers' forum accuse Ministry of finance of allegedly looting N3billion

The SURE-P GIS Employers' forum has accused the federal ministry of finance for not being sincere following the termination of partnership with Forcecom Networks Ltd.

It would be recalled that the federal government last week allegedly accused Forcecom Networks of deploying interns to work on mobile money business, months after they were deployed to the company and that the firm presented ‘time sheets’ which showed that the interns had worked and requested payment of their monthly stipend when they did not work.

Addressing newsmen in Abuja, Chairman of the SURE-P GIS Employers' forum and the MD Forcecom Networks Ltd, Paul Okafor, accused the federal ministry of finance of last minutes looting in the SURE-P GIS, adding that the actual beneficiaries of the SURE-P GIS are only 12, 500 nationwide, contrary to inflated figures of over 30, 000 Nigerian youths benefiting from the programme. 

He called on the anti-graft agencies to investigate the SURE-P GIS team and the ministry of finance. 

Interns in the programme also called on the federal government to pay the allowances owed them.

Last Friday the Federal Ministry of Finance terminated the partnership with Forcecom Networks and disbanded the SURE-P GIS Employers' forum,  on accusations of requesting payment of their monthly stipend on falsified ‘time sheets’ which showed that the interns had worked when they did not work.

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