FG Increases Debt Overhang, Borrows $3 billion From World bank

By

-

October 20, 2019

By Uche Mbah

Nigeria Sunday has increased the debt profile of the country by borrowing $3 billion-approximately N1 trillion-from World Bank to fund the expansion of the transmission and distribution facilities of the power sector.

The power sector has become the bottomless pit of the Nigerian economy, with the previous administration unbundling and privatizing the sector for efficiency. But the various groups were working at cross purposes, over time turning the economy into a generator economy. Critics have accused generator merchants, who have tentacles in high places, of sabotaging the sector. Power generation has been oscillating between 3-5000 megawatts, with constant collapse of national grids becoming a recurring decimal. According to reports, there has been 206 collapses of the grid since 2010.

Government have muted the idea of borrowing money from the World bank to fund the sector, a move critics see as counter productive since the loan will allegedly end up in the nation’s legendary corruption cesspit.

The Minister of Finance, Zainab Ahmad, has announced this Sunday while addressing journalists, saying the loan will be in four tranches of $750 million. She was at the Annual meeting of the World bank and International Monetary Fund, IMF, in New York.

“This financing will cover the gap between the current tariff and the actual cost of generating electricity,” she said.

“It will also enhance our ability to pay previous obligations in the sector that has crystallized so that investors in the sector can go on with expanding investments in the sector.”

“Some portion of the loan will be for the transmission network and if we are able to expand to $4 billion then the extra $1 billion will be for the distribution network.”

“The distribution sector will be at the backend when the other reforms have been carried out.

“It will be a loan to the distribution companies because they are owned by the private sector.”Recently, the minister had complained that Nigeria is finding it difficult to service its debts.

Over two trillions have been budgeted for debt servicing in the 2020 budget.

Nnamdi Kanu Accuses Nigerian Army of Killing His Mother

By

Uche Mbah

-

October 20, 2019

0

By Uche Mbah

The leader of the separatist group, Indigenous People Of Biafra, Nnamdi Kanu, has accused the Nigerian military of being responsible for the death of his mother, Ugoeze Sally Nmemme Kanu, who died last August. Her death, surprisingly, had remained hidden from the press and the general public until Kanu announced it recently on Radio Biafra.

In the said Broadcast, which was through a video he uploaded on social media, Kanu said his mother died as a result of the trauma she passed through during the Operation Python dance. Kanu himself had escaped death by the whiskers when the army invaded his Afarukwu home in Abia state. He had to escape from the country through the help of his loyalists, according to him. Currently he has been criss-crossing Europe and America in search of support for his pet dream, the establishment of the Republic of Biafra. His father was also allegedly arrested by the military, but later released.

In announcing the death, Kanu said:”Today, I announce the death of my Mother Ugoeze Sally Nmeme Kanu. May Chukwu Okike Abiama grant her eternal rest.”

He described her as one who was passionate about actualization of Biafra.

Economy: Furor Over IMF Backing Of Taxes, Border Closure

By

Uche Mbah

-

October 20, 2019

0

By Uche Mbah

The International Monetary Fund has in recent times been making pronouncements on the Nigerian economy, proffering opinions on the economic policies of the country-a position that the new leadership of the International organization has taken to help bring the country out of the woods-apparently.

Recently, IMF has nothing but praises for the closure of Nigerian borders. There has been outcry by the West African sub region on the economic impact, with Ghana Chamber of Commerce threatening to boycott all Nigerian goods in retaliation.

Nigerians in Cotonou were reported to have invaded the Nigerian embassy in Benin republic, attacking and destroying cars. But the Nigerian Ambassador to Benin denied the story, even though there was a viral video that seem to confirm the story.

In the video, Some Nigerians were seen vandalizing an Embassy building and tearing the Nigerian flag.

Indications that the border closure may hurt the Nigerian economy was dismissed by Abebe Selassie, the Director of the African department of the IMF, who claimed that though the closure may impact negatively on Niger and Benin Republic, it is about illegal trade.

“On the border closure in Nigeria which has been impacting Benin and Niger, our understanding is that the action reflects concerns about smuggling that has been taking place.

It is about illegal trade, which is not what you want to facilitate,’’ he said, speaking at the sidelines of the World Bank/IMF Annual meeting in Washington.

“We are very hopeful that discussions will resolve the challenges that this illegal trade is posing.

“If the border closure is to be sustained for a long time, it will definitely have an impact on Benin and Niger which, of course, rely quite extensively on the big brother next door,’’ he said.

The border closure has already resulted in galloping inflation in the country, as foodstuff prices skyrocketed in a short time.

Though they showed reservations on the border closure on long term basis, they all but applauded the Value Added Tax increase by Federal government, tending to confirm the position of some analysts that government was acting on their dictates as a precondition for more loans.

“So now is the opportunity to look at a comprehensive reform to sustainably increase non-oil revenue. The government has taken welcome steps with tax audits, e-filling, closing loopholes, combating corruption in tax offices, increased exercise taxes and it also launched its strategic growth initiatives that calls for this high-level committee. All these are very welcomed. And the article IV consultation earlier this year had our staff recommend further VAT reforms and broadening the tax base by removing CIT exemptions and customs duty waivers”, said the Assistant Director, Fiscal Affairs Department, IMF, Cathy Pattillo, at the same forum.

“For Nigeria, that is very important for a couple of reasons; one because right now, interest payments as a share of tax are very high. Around a third of overall federal government revenue is for interest payments, which is particularly high. Nigeria has one of the lowest tax to GDP in the world. It is not because Nigeria does not have big development problems.”

They did not take into consideration of the cost of governance in Nigeria, which is one of the highest in the world. Nigerians are taxed for infrastructures which the government does not provide.

“Nigerians provide their own water through private boreholes, electricity though generators-making the country a generator economy. They pay tax on roads that are never maintained. They provide chairs and desks for their wards, pay school fees and examination fees while government provides nothing-and collect education tax. The issue is not paying the tax, but paying tax for amenities not provided”, says an analysts over the weekend.” It appears the government is anti-poor people, since government officials receive humongous amounts for conspiring against the masses”.

Former governor of Anambra state, Peter obi, recently said that every six minute, a Nigerian slips into poverty.

“The border closure does nothing except enrich some custom officials, who now take over the smuggling business in the guise of stopping smugglers”, he concluded.

It will be recalled that the beginning of the devaluation of the Naira was on the instance of the IMF, which continues to play major role on the negative impact of globalization on African countries.

AFCON 2013 Super Eagles Stars Living In Past Glory

By

The Source

-

October 18, 2019

0

By Akinwale Kasali

Time was when Sunday Mba was a household name. He became the ‘beautiful bride’ in Nigeria football.

He scored the only goal that gave the Super Eagles of Nigeria victory at the 2013 African Cup of Nations Championship in the former apartheid nation, South-Africa, against the Stallions of Burkina Faso in the final played at the Moses Mabhida Stadium, Johannesburg, South Africa.

Mba was the toast of Nigeria Professional Football League, NPFL, as he gave hope to the fledgling domestic league and its players that they also could make it to the top just like Mba.

Many European top club sides came asking for his signature, but his national team coach who brought him to limelight from obscurity, late Stephen Okechukwu Keshi, had other intentions.

He persuaded him not to leave his domestic club side, Enugu Rangers Football Club, but to rather up the ante, and perform better as the 2013 FIFA Confederations Cup was just few months away in Brazil, where he could further showcase himself for better money spinning offers.

As envisaged, at the FIFA Confederations Cup in Brazil, Mba kept on performing brilliantly, which brought more suitors to his doorsteps, but ‘Big Boss’, as Late Keshi was referred to, told Mba to be patient before making a move to Europe.

Mba played every single match for the Super Eagles in the 2014 FIFA World Cup qualifiers and also shone like a superstar in the African Nations Championship, CHAN, qualifiers that was hosted by South Africa in 2014. The tournament was for Home Based players called Super Eagles B team.

Mba scored a brace against the Elephants of Cote d’Ivoire in the 4-1 win at the Sani Abacha Stadium in Kano, to qualify Nigeria for the inaugural competition.

Keshi was full of belief and trust for the productive youngsters.

Sadly, Keshi’s hope was dashed few weeks to the 2014 CHAN tournament, as Mba excused himself from the camp to travel to France to sign a deal with French Second Division Side, AS Bastia Football Club.

His exit from the team had a strong effect on Keshi and his coaching crew, because the team was built around Mba.

Though, the team went to the tournament and won a bronze medal, but that was the beginning of the dwindling fortunes of Mba.

Mba fell like a pack of cards, as his new team, Bastia, were relegated to the third tier of French League, shutting him out of prominence and out of the national team.

Since then, Mba’s career has witnessed a landslide backwardness. On leaving Bastia, he went to Turkey, where he signed for Yeni Malatyaspor Football Club in the Turkish league, and has been on and off before his contract was terminated by the club.

He has been a free agent and clubless since 2017 at just 30-years of age, and he has been full of regrets.

In his words, ”Football is everything I have and I cannot just give up. I believe there’s something out there for me. As a free agent, things are not really that easy, but you can only be hopeful. My desire is to get back into club football and I am working hard to start playing again.

He added, “First you’d need the luck to find someone that believes in you and ready to give you a chance. I’ve continued to stay in shape, train daily and be physically ready for any opportunity.

He has scored three goals in 16 appearances for the three time African champions.

Mba played for both Enugu Rangers and Warri Wolves in the Nigerian top flight before switching to French club CA Bastia.

He left for Turkish side Yeni Malatyaspor in July 2015- where he netted eight goals in 55 appearances.

Chigozie Agbim, Fegor Ogude, Reuben Gabriel, Godfrey Oboabona, Ejike Uzoenyi and Emmanuel Nosakhare Igiebor were players given opportunities by the late Keshi to showcase their skills and talents, despite the Nigeria Football Federation, NFF, bigwigs not being happy with decision of Keshi to take rookies to the 2013 AFCON tournament.

But, Keshi stood his grounds, took six home based players, 13 debutants and just four AFCON experienced players to the continental showpiece.

All the aforementioned players are all presently unattached to any club. They have remained clubless over the years, as they have become free agents and no club is willing to sign them due to their rustiness, age, fitness and other issues.

Some of this players who have returned to the country with the hope of playing for any NPFL clubs have seen their hopes dashed.

Some, out of pride, still hopes to secure a deal with a foreign club.

Soccer analysts are of the opinion that age has been a factor while all the players are languishing unattached.

“Age will always play a role in one’s life. It’s a determinant and major factor. All these players lied about their ages, and they can maintain the trend and the energy required for the game, so they just have to be booted out”, Damilola Towobola, a soccer analyst said.

Ebuka Nsofor, another soccer analyst believes that Mba was too anxious to play in Europe. That was what led to his grace to grass situation.

“We keep saying this that we Africans are always economical with the truth as regards age. Age has caught up with these players. You can’t keep deceiving Europeans, at a stage, your body can’t go farther.

“All these players are exhausted, so there is no club that is ready to waste money, time and energy on an ‘old cargo’ when there are younger players. They should all look for another business to do, at least, they made a lot of money during active football. You can’t play ball forever. The problem is that some of them squandered all they had, living large and purchasing irrelevant things. Now, they have realised their mistakes, and want to go back to football, play at least a year or two and, make some money, then go into business. Sadly, the time is not there”, Nsofor concluded.

Ota Diamond Lions Club Inaugurates Third Female President, Vows To Impact Less Privileged

By

The Source

-

October 18, 2019

0

By Akinwale Kasali

The auditorium of the Police Wives Association Hall at GRA, Ikeja, Lagos, was filled to capacity, with notable guests in the society defying the traffic snarl and gridlock in the State to felicitate with the International Association of Lions Club, Ota Diamond Lions Club District, as it inaugurated Mrs. Temilade Adeyosoye Amadi, as it’s 19th President and the third female president of the club.

It was a carnival of sort. The receptiveness that greeted the incoming President was fascinating. The uniformity in terms of attire was worthwhile, as guests and Members had a lot to wine and dine with.

Lion Amadi became the third woman in the history of Ota Diamond Lions Club to become the President of the International Club, which the Club executives and members said was well deserved for her selfless service to the Club and humanity at large.

Lion Amadi is serving in the capacity as the President of the club for the 2019/2020.

Passing the mantle of leadership of the Club to Lion Amadi, the immediate Past President of the Club, Lion Opeyemi Omotayo Akinnola thanked the Club for giving him the opportunity to serve and lead.

He charged Lion Amadi to continue from where he stopped, and shouldn’t rest on her oars.

He reiterated that the incoming President should uphold the tenets of Club and further surpass him in developmental strides.

In her acceptance speech, Lion Amadi thanked her predecessor and the members, promising to further make the community a better place to live by showing love to the needy, underprivileged and service to humanity.

She added that she is poised in making the impact of the Club felt better and more in the Ado Odo Ota Local Government Area of Ogun State.

“In my reign as President of the Club, we will give Public Primary Schools within this area breakfast. Though, we know the Federal Government Public Primary School Feeding Programmes is ongoing, which is Lunch, but we will provide them with breakfast.

“Reason for this is that most children don’t eat from home in the morning because they are always in haste to get to school and to be on the Assembly ground. So, we want to give them breakfast to ease the pressure on their parents”, Lion Amadi concluded.

At A Minimum Wage Lower Than Jonathan’s, Labour, FG Come To Truce

By

Uche Mbah

-

October 18, 2019

0

By Uche Mbah

In the wee hours Friday, Nigeria Labour Congress and the Federal government finally came to an agreement after several days of wrangling over the minimum wage. They have been pitted against each other over a template on consequential adjustments for the N30,000 minimum wage.

The new template suggests that workers on grade level 07 will have their wage increased by 23.2%, grade Level 08 at 20%, Grade level 09 at 19%, Grade level 10-14 at 16% and from 15 to 17 at14%.

Festus Keyamo, the Minister of state for Labour, in a tweet, said they have agreed with the Unions.

“At about 3am this morning, we signed this Terms of Settlement b/w Govt & Labour which reveals different percentages of adjustments in other wages after the minimum wage adjustment. Those of the law-enforcement agencies have also been done, but are not captured in this Memorandum”, he tweeted.

Before the elections, the government agreed on N30,000 minimum wage, but after the elections, the government developed cold feet, necessitating the current negotiations.

Labour had threatened the nation with a strike action, which was test run in Asaba, Delta state, where workers were forced into strike by the Unions. Government allegedly had tried a divide and rule tactic by allegedly backing a splinter group of the unions to break their ranks, but that obviously did not work.

There have been reservations on the willingness of the present crop of NLC leaders to effectively fight for the welfare of the masses. But the result of the negotiations appears to give a lie to such reservations.

The minimum wage has come a long way. During the presidency of Goodluck Jonathan, the minimum wage was 18,000, which translated to about $90 at the then prevailing exchange rate of N200 per dollar. Currently, the minimum wage is 30,000 which translates to $83 at N360 per dollars-seven dollars less than Jonathan’s minimum wage.

Enugu Airport: Buhari Approves N10 billion Intervention Fund

By

Uche Mbah

-

October 17, 2019

0

By Uche Mbah

President Muhammadu Buhari Thursday approved the sum of N10 billion Naira for the rehabilitation of Akanu Ibiam International airport, Enugu, saying he had to do that despite competing projects that are meant for his attention.

Federal government had closed the Airport following security concerns, but faced criticism for not being ready for the rehabilitation before closing down the Airport.

Since the Closure, no sign of activities have been noticed at the airport., raising fears that it may not be ready before the Christmas rush by travelers. Untold hardship has been meted on travelers who had to pass through either Port Harcourt or Owerri if they must travel by air.

With opposition accusing the presidency of deliberately stalling the rehabilitation because they are paving the way for the airport downgrade, Eastern governors and leaders Thursday met with the president with the Airport as a major item on the agenda. At the end of the meeting, Presidnet Buhari approved the said amount.

“I have approved the sum of Ten Billion Naira for an Intervention fund for the upgrade of Akanu Ibiam International Airport, Enugu. I have assurance of Minister of Aviation that the work will be done speedily and to the highest standards.

Even as we have limited resources, we will continue to prioritize infrastructure in every part of the country. It is our responsibility to ensure Nigeria’s infrastructure is fixed. We will keep doing this”, Buhari said. He, however, did not give a time frame for the project to be completed.

During the renovation of Abuja Airport, a time frame was given.

The minister of Aviation, Haddi Sirika, recently said he has requested for a N10 billion intervention fund for the rehabilitation of the airport. Apparently, it took the meeting of the governors for Buhari to approve the request.

“We are here to kindly urge Mr. President to approve special fund for the Akanu Ibiam Airport just like what was done for Abuja Airport”, spokesperson for the governors, Dave Umahi of Ebonyi state told reporters before going into the closed door meeting with the president.

No contractor has been mobilized to site, and there are indications that the aviation Ministry is only about to scout for contractors. The contract awarding protocol may take time.

Umahi also said they talked about the deplorable condition of Federal roads in the South east.

Governor Willie Obiano of Anambra state was not present at the meeting.

Boxer, Patrick Day, Dies From Brain Damage

By

The Source

-

October 17, 2019

0

By Akinwale Kasali

The International Boxing Federation, IBF, has been thrown Into mourning, following the death of Patrick Day, the United States of America Junior Middleweight Title holder.

Last Saturday, 12th October, 2019, Patrick Day and Charles Conwell battled for the Junior Middleweight title in Chicago.

Day was initially knocked down in round fourth, eighth and tenth round.

Sadly, the tenth round knockout was so hard that Day sustained brain injury.

According to reports, Day had a seizure, and the ring side doctor treated him. He was immediately rushed off on stretcher by paramedics and transported to Northwestern Memorial Hospital where he underwent emergency brain surgery and fell into coma shortly afterward.

Day later died as a result of the pummeling he received from Conwell.

In an emotional open letter to Day on Monday, Conwell said he had replayed the fight “over and over in my head” and was riddled with feelings of guilt and regret over the outcome.

“If I could take it all back, I would. No one deserves this to happen to them,” Conwell wrote in a post.

“I prayed for you so many times and shedded so much tears because I couldn’t even imagine how my family and friends would feel.”

Deficit Budget: Government Targets Tax, Borrowing, Others for Funding with Cautious Hope

By

Uche Mbah

-

October 17, 2019

0

By Uche Mbah

With the Debt servicing taking over two trillion Naira and the tax office falling short of their target by about 50%, the Federal Government may end up starting off the 2020 budget on a completely non -performing note, particularly as capital expenditures is put at 2.46 trillion Naira and investors are skeptical about the ability of the Budget to stimulate growth.

With the possibility of the funding dimming, government suddenly remembered that the Oil majors owe the country over sixty two billion dollars-about twenty one trillion Naira- from unremitted funds. This is from the agreement with the government that if the oil increases beyond $20 per barrel, they should bring out the excess for a pre-agreed sharing formula. The oil majors have not been doing that. In fact, many of the oil majors have gone to court to protest the payment.

“Nobody can bring out that kind of money,” Timipre Sylva, Minister of State for Petroleum, told reporters after a weekly cabinet meeting in Abuja. “I mean, we can’t get $62 billion. We can maybe get something from them but not $62 billion. It’s an opportunity we have lost.”

Besides this, the government is bent on taxing the poor while increasing the cost of governance. Recently, the presidency has announced cut in travel expenses for government officials- a drop in the pan for the huge amount needed for the running of the budget. It has increased the value added tax from 5% to 7.5%, and threatened the tax man-Babatunde Fowler- with sanctions if he did not meet the target. The banks has also been told to charge money for deposits and withdrawals by the Central Bank of Nigeria, apart from other numerous charges.

All these have not impressed the International Monetary Fund, IMF, which insists that Nigeria is being overtaxed.

Buhari has estimated that the Oil production will be pegged at 2.18 million barrels per day at that it will be sold at $57 per barrel.

Maybe the new economic team will work wonders. But critics believe their work is only to offer legitimacy to the government that has lost fate with Nigerians. Most of the members are rabid critics of the government. It is believed their appointment is meant to shore up confidence in the government, while at the same time being rubbished. Whether the critics are right can only be proved by time.

GTBank Posts N147bn PAT

By

Bayo Bernard

-

October 17, 2019

0

Gross Earnings Stands At N324bn

By Fola James

Guaranty Trust Bank Plc has released its unaudited financial results for the nine months ended September 30, 2019, indicating that the bank’s gross earnings dropped to N324.262 billion compared to N334.711 billion in the corresponding period year 2018.

According to the bank, Net interest income rose to N172.937 billion from N170.641 billion in 2018, while net fee and commission income rose to N46.497 billion, compared with N37.84 billion in 2018.

The result also indicate that loans impairment charges increased from N1.736 billion to N2.761 billion. Profit before tax (PBT) stood at N170.651 billion, up 3.9 per cent from N164.245 billion, while profit after tax (PAT) grew by 3.4 per cent to N146.989 billion as against N142.224 billion in 2018.

Further analysis of the report also indicate a decline in interest income by 5.6 per cent to N224.19 billion as income from loans to customers declined by 6.3 per cent to N134.47 billion while income from cash surged by 18.6 per cent to N10.11 billion.

According to the release, interest exepense declined by 23.4 per cent to N32.63 billion while, interest on deposits from customers declined by 20.4 per cent, to N42.90 billion.

The report also show that fees/commissions income grew by 22.9 per cent to N46.50 billion, transaction volumes rose to N11.04 billion, while credit related business charges increased to N9.08 billion.