All Posts in "Day: May 7, 2022"

How Nigeria Can Reduce Debt Burden -NESG

The Nigerian Economic Summit Group has advocated the need for tax reforms, fiscal restructuring and project-specific borrowing in order to reduce Nigeria’s high debt burden.

Its suggestion was conveyed in the Debt Management Roundtable’s report on debt management and sustainability in ECOWAS presented by the group to the Debt Management Office, DMO, in Abuja recently.

It emphasized the use of technology in expenditure management and alternative financing to achieve fiscal sustainability.

The group said there was also need for reduction in the cost of governance, debt restructuring, and an independent and autonomous debt management office that would be involved in economic planning, expenditure management and revenue strategy.

NESG CEO, ‘Laoye Jaiyeola, highlighted the depth of research and sub-regional collaboration involved in the production of the report, as well as its significance for sustainable debt management across the region, if implemented.

Jaiyeola said Nigeria was a focal point for debt sustainability, in view of the fact that the country accounted for 50 per cent and 67 per cent of the region’s total debt and Gross Domestic Product respectively.

admin by — May 7, 2022 in News 0
Group Decries Lawmakers’ Failure To Criminalise Estimated Billing

The Energy Consumer Rights and Responsibility Initiative (ECRRI) has expressed disgust over the failure of the National Assembly to criminalise the issuance of estimated bills by electricity Distribution Companies (DisCos) to customers in Nigeria .

Its National President, Mr Surai Fadairo, said Nigeria’s metering gap would have been boosted if the lawmakers had criminalized the act

The Federal House of Representatives had in 2018, moved to prohibit the issuance of such bills to consumers across the country.

The bill would mandate DisCos to provide prepaid meters within a specified period.

Fadairo told journalists that the bill would have put an end to what Nigerians are facing today in the hands of the power distribution companies but unfortunately it did not scale through.

He added:“We believe that there is a need to revive the bill, especially as we are moving toward another election year with the reconstitution of a new national assembly.There is a need to stop the exploitation of Nigerians with outrageous bills and the best way to do that is to make it an offence to issue estimated bills to customers.”

He expressed his group’s readiness to work with the legislators to ensure that the estimated billing system was prohibited in Nigeria which would compel the DisCos to intensify efforts to meter customers.

He explained that the development has become imperative, especially with the implementation of the Multi-Year Tariff Order (MYTO) for the DisCos as approved by the Nigerian Electricity Regulatory Commission.

He added:“The MYTO has been approved for the DisCos until 2025 which will see periodic reviews in tariffs to customers based on certain parameters.We believe the only way customers can be best served is for them to get metered to prevent further exploitation”

admin by — May 7, 2022 in Power 0
CSCS Pays N3.7bn Dividends To Shareholders 

The Board of Central Securities Clearing System (CSCS) Plc has proposed a total dividend of N3.7Billion to its shareholders in the country.

The dividend proposal was announced at the Company’s 28th Annual General Meeting that took place on Friday at the Civic Centre, Victoria Island, Lagos and  unanimously approved by the  shareholders, who commended the  company’s management for an incredible performance, despite the challenging operating environment.

The N3.7Billion dividend, which translates to 83.7% payout ratio, reflects the resilient profitability of the company, notwithstanding the impact of lower trading activity on most Exchanges in the Nigerian capital market and inflationary pressures,it said in a statement.

The  ompany grew revenue from core operations and ancillary services by 39.2% to N6.4Billion from N4.6Billion in 2020, as it almost quadrupled earnings from ancillary services from N526million in 2020 financial year to N2.2Billion in 2021 financial year.

Besides, income from ancillary services contributed 33.3% and 21.5% of operating revenue and total income for the year respectively, underpinning Management’s strategy towards diversifying and strengthening the earnings fundamentals of the Company, with the ultimate objective of creating sustainable and superior wealth for shareholders and its broader stakeholders.

Mr. Oscar Onyema OON, Chairman, Board of Directors of CSCS Plc told the shareholders that notwithstanding the volatile operating environment and moderated capital flows, as reflected in the subdued capital market activities, the earnings fundamentals of  the company remained resilient and indeed stronger than ever.

He said this was evident in the impressive revenue growth of 39.2%, driven by stellar growth in ancillary income.

He added:”The equity market recorded one of the weakest secondary market activities in the past few years, with the average daily trade value of N3.9billion, some 10% below the trading activity recorded in 2020 financial year, explaining the tepid transaction fees. Albeit income from ancillary services recorded a significant boost, contributing N2.2billion or 21.5% of total income in 2021FY, from N526million or 11.3% of total income in 2020FY.

“This performance reinforces the capacity of the Management in delivering on the Board’s vision result of diversifying the business and enhancing the value accretion prospect to shareholders in a sustainable manner.

“More importantly, my colleagues and I on the Board of your Company, are excited at the prospect for new offerings arising from strategic partnerships and new initiatives. In our oversight role, we are working with the management to invest relevant resources towards exploring new frontiers for growth, especially as these initiatives are expected to foster retail investor penetration and broader capital market growth.”

Mr. Haruna Jalo-Waziri, the Chief Executive Officer, CSCS Plc said; “Reflecting the ingenuity of our participants and more importantly quick adoption of new remote access technologies, the Nigerian capital market remained active through the prolonged COVID-19 crisis. The collaboration of our regulator and participants has been incredible in sustaining our operational protocols and IOSCO PFMI standards.

“Though clearing and settlement activity waned by 10.2% due to lower participation of foreign investors in the Nigerian equity market and a host of macro challenges, we are excited at the growth in our depository assets by 6.1% to N23.0trillion, reflecting new listings of securities across our multiple Exchange partners as well as issuers’ and investors’ confidence in the safety and secured accessibility of our systems.

“Despite the average inflation rate of 17.0% during the year, we sustained our cost efficiency strategy, leading to a 1.6% decline in operating expenses. Overall, we achieved N5.8Billion and N4.4Billion Profit Before Tax and Profit After Tax respectively, underpinning the resilience of the business and commitment of my colleagues and I, in delivering on our pledge to sustainably create value for shareholders and our broader ecosystem.

admin by — May 7, 2022 in News 0
Don’t Go On Strike, Reps, Minister Beg Airline Operators

The House of Representatives has appealed to indigenous airlines to halt their plan to ground operations from Monday due to the high cost of Jet A1 in the country

Nnolim Nnaji, the Chairman, House of Representatives Committee on Aviation on Saturday, who promised that the House of Representatives would intervene on the issue,regretted that despite the last intervention of the leadership of the House of Representatives, Aviation  and other relevant committees, the problem remained unabated.

He disclosed that the House of Reps leadership had already summoned a meeting of the stakeholders including the chairmen of the relevant committees of the House to a meeting on Monday  to address their matter.

He commended  the operators for their patriotism and further urged them not to ground their operations, lamenting that such act would inflict more pains on an already distressed economy.

He added: ”The National Assembly is determined to ensure that the aviation fuel crisis is urgently resolved because air transportation has become the safest mode of travel. It is equally the catalyst of economic development so we cannot afford to entertain any disruptions in the sector especially now that election process is ongoing “.

Besides, Sen. Hadi Sirika, the Minister of Aviation has appealed to the carriers to rescind their decision.

This is as the three leading unions in the Nigerian aviation industry have declared that there was no going back on its two days warning strike over Condition of Service (Cos) for its members as scheduled to commence on Monday.

A statement by Dr. James Odaudu, the Special Assistant to the Honourable Minister on Public Affairs, stated that the minister wanted the operators under the auspices of Airline Operators of Nigeria (AON) to consider the multiplier effect of their action on Nigerians and the global travellers.

Sirika said that efforts were presently ongoing to assuage the situation as it the ministry was presently in talks with agencies and organisations involved in the delivering of aviation fuel to the airlines.

The statement added: “As the ministry charged with the management of the industry, we are greatly concerned about the difficulties being faced by the airline operators in the country in procuring aviation fuel, which has resulted in spiraling costs in air transportation in the immediate past.

“We also acknowledge that the airline operators are in the business to make profits, while servicing the very critical sector that is not only the preferred mode of transport for most Nigerians, but also the main international gateway to the nation.

“Unfortunately the issue of fuel supply is not within the purview of the Ministry and so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions to provide succour to the airlines. This is already being done by the relevant team led by the Honourable Minister.”

He  further assured Nigerians, especially stakeholders in the aviation sector that the President Muhammadu Buhari administration remained stoic in its commitment to the creation and sustenance of an enabling environment for operators in the sector.

Airline operators had yesterday  threatened to ground operations from Monday due to the high price of the product in the local market.

The operators said that it had continued to subsidize its operations in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.

They lamented that overtime, aviation fuel price has risen from N190 per litre to N700 currently, maintaining that no airline in the world could absorb the sudden shock from such an astronomical rise over a short period.

“While aviation fuel worldwide is said to cost about 40 per cent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95 per cent.

“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.

“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to  ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated thereby  creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and the airlines can no longer absorb the pressure.”

They  regretted any inconveniences the very difficult decision might cause the travelling public and appealed to travelers to reconsider their travel itinerary and make alternative arrangements.

admin by — May 7, 2022 in Aviation 0
 Nigeria’s Financial System Sound,Stable — NDIC

Nigeria’s financial system has remained stable and resilient in spite of the macroeconomic shock and stress occasioned by COVID-19,the Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has said.

Hassan,who announced this at the opening of a 3-day retreat organised by the corporation for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos,attributed the development to his agency’s   proactive policies, supervision and support of the regulatory authorities.

He said:“The macroeconomic shock and stress brought about by COVID-19 are unprecedented. It has been recognised as the ultimate test of resilience so far to financial systems. As evidenced by the financial soundness indicators, Nigerian banks have remained resilient, by being safe, stable and sound in spite of the challenges posed by the COVID-19 pandemic. This success was due largely to the proactive policies and support of the regulatory authorities,” he said

Some of the measures taken by NDIC to strengthen the deposit insurance system in the country to include, the migration to the Differential Premium Assessment System (DPAS) from the flat-rate method of assessing and collecting premiums with a view to aligning the pricing of deposit insurance to the risk profile of individual banks and the collaboration with the Central Bank of Nigeria, CBN to shift from the compliance-based examination to Risk-Based Supervision (RBS) and the adherence to corporate governance principles in the banks among others.

According to him,NDIC is embarking on robust collaboration and cooperation with relevant stakeholders, other deposit insurance agencies and global bodies, particularly in the area of knowledge and information sharing to effectively address the technological, legal, regulatory, and supervisory challenges facing the deposit insurance system in a rapidly changing environment.

He tasked  the lawmakers on appropriate legislation as well as emphasized  that the maintenance of financial resilience requires preparation, in advance, through diligent planning, laws, robust policies and sound institutions to implement the laws and policies.

admin by — May 7, 2022 in Business 0
We Won’t Shelve Warning Strike – Aviation Unions

Three aviation unions; National Union of Air Transport Employees (NUATE), Association of Nigeria Aviation Professionals (NAPA), Amalgamated Union of Public Corporation of Public Corporation Civil Service Technical and Recreational Services Employees (AUPCTRE), said that there was no going back in its plans to ground activities in three agencies starting from Monday.

The agencies are the Nigerian Airspace Management Agency (NAMA), Nigerian Civil Aviation Authority (NCAA), Nigerian Meteorological Agency (NiMET) and the Nigerian College of Aviation Technology (NCAT), Zaria.

Speaking on Saturday,Comrade Ocheme Aba, General Secretary, NUATE,said  that aviation activities would be grounded totally on for two days next week.

Aba said that the unions had exercised patience for nine years on the matter.

He regretted that salaries and wages commission was intentionally depriving workers in the sector their rights to better living, lamenting that since 2013 that the cause started, some of the workers had retired, while others died without benefitting from the new conditions of  service

He expressed confidence that the aforementioned agencies were willing to implement the new structure, but said they could not do so without the approval of the commission.

He  commended  Sirika for being the first aviation minister to assist the workers for the implementation of the new wages by visiting the salaries and wages commission personally, but regretted the efforts did not yield result so far.

He said: “We are grateful to the aviation minister and the agencies who have supported us since the struggle began. Several CEOs have told us that they documents have been approved by the ministry of aviation, but we can’t implement due to the refusal of the salaries and wages commission to give its approval.

“We will ground activities in the entire aviation industry on Monday and Tuesday and after that, if after one week, we are not attended to, we will commence indefinite strike.”

admin by — May 7, 2022 in Labour/Human Resources 0
 I was Not Disqualified From 2023 Presidential Race -Anakwenze

One of the presidential aspirants under the banner of the Peoples Democratic Party(PDP), Dr Nwachukwu Anakwenze, says he has not been disqualified from the 2023 presidential race.

He also urged those spreading fake news about his disqualification to desist from the act and allow the party appeal committee to make its recommendations on the direction of the primaries billed for May 28,this year.

The presidential hopeful conveyed the clarification in a statement by the Director General of his Campaign Organization, Comrade Eric Oluwole,while addressing support groups on the delayed clearance, the appeal and the party’s position on the matter

Hr said:”There  are lots  of rumor on social media that Dr Anakwenze, has  been disqualified from the presidential race.As Director General of the campaign organization, I don’t have any option than to clear the mind of  Nigerians  that it was fake news designrf to paint my principal black because of his rising popularity and chance of clinching the ticket to represent the party at the presidential election next year”

He explained that the  screening on Friday led by former Senate President, David Mark, went well but that his principal was asked to supply additional documents  which were not available immediately during the exercise.

He said the documents were later sorted and presented to the avid Mark led Committee and expressed  surprise that it was not admitted,but referred to the Presidential Appeal Committee which should sit after the holidays

“We brought the documents to the appeal with a well articulated statement as was instructed and presented to the appeal panel and after examination asked him to go.

“As at today, there hasn’t been any official communication from the PDP event after their extraordinary NWC meeting on the matter. So all these news about disqualification is absolute nonsense and should be disregarded.

“We urge all supporters to be calm.The campaign Organization will take a critical review and make a strong statement the moment the appeal committee discloses its position on the cleared aspirants”

He reiterated the need for  the party’s members to support the aspiration of his principal,saying he has the pedigree,passion and requisite determination to take the nation to greater heights.

admin by — May 7, 2022 in Politics 0
Group To Buhari: Declare TCN,Abuja DisCo National Security Risk

The Nigeria Consumer Protection Network, has appealed to President Muhammadu Buhari to declare the Transmission Company of Nigeria,TCN,and Abuja Electricity Distribution Company,AEDC as national risk.

President of the group, Kunle Olubiyo,said his position was premised on the fact that the two power institutions have performed abysmally with adverse effects on consumers of electricity.

In a statement,Olubiyo,said the two institutions have exhibited act of irresponsibility and insensitivity to the plights of electricity consumers, adding that Nigerians deserve better engagement from
power service providers.

He said in the last five days,the Abuja Electricity Distribution Company, has grounded the operations of Ministries,embassies, courts,military headquarters and business concerns on account of black out without requisite remorse by the power company.

He said:”Over 5 million population of electricity consumers have been on interrupted power supply for the past 5 days .There was no blink of power supply in the last 120 hours.There was no effective communication from Abuja Electricity Distribution Company Transmission Company of Nigeria to electricity consumers.The duration of the maintenance was not stated ..

“What we have at hand is that power supply was shut down since Monday evening and till now there is no blink at all.

“This is sad and quiet unfortunate.The Federal Government, the Department of States Services (DSS),Defence .Intelligence Agency ( DIA ) should investigate the technical/ operations of Abuja Electricity Distribution Company and Transmission Company of Nigeria.This is nothing but
national security risks and direct undermining of the entire nation’s security architecture.

“With 120 hours of total power outages to President Village, 3 Arms Zone ,major hospitals ,foreign embassies, bank districts and others,over 5 million people denied electricity for five good days back to back without a blink of power supply .This against the national grid code,distribution and transmission code .This undesirable, unheard and unimaginative in any sane clime.

“In conclusion, we are appealing to Mr. President Muhammadu Buhari
to as a matter of urgent national importance and overall public interest reverse the power sector privatisation exercise.The public has lost interest and confidence in the exercise.The drift and increasing negative dimensions of the power privatisation has become a global embarrassment”

admin by — May 7, 2022 in Brands&Marketing 0
Nigeria To Export Finished Jewelries Soon -Minister

Nigeria will soon be a gemstone and jewelry destination for other countries,Minister of Mines and Steel Development, Ach. Olamilekan Adegbite,has said

He also said and that in no distant time, the country will export finished jewelries which would increase the sector’s contribution to the Gross Domestic Product.

He spoke at the graduation ceremony of the first batch of the gemstone and jewelry making trainees of the Abuja Chambers of Commerce and Industry

Adegbite in a statement made available to newsmen in Abuja by the Director of Press Mrs Etore Thomas ,stated that the seven months training was part of the Federal Government’s efforts at discouraging exportation of raw ore and ensuring that whatever is produced in the country is also processed in Nigeria.

He said this would create jobs and wealth for the youth.

On the essence of the programme, he said; “this programme was designed to impart knowledge on you, so that we can make jewelries in Nigeria, we are going to retain our gold and gemstones in Nigeria, add value to it, sell to our people and export to other countries.

Addressing the graduands, Adegbite charged them to impart the knowledge they have acquired to others in their communities.

“The best gift you can impart on anyone is knowledge and this is what you have been endowed with. What you have acquired in the last seven months is to help yourselves to be engaged meaningfully and fruitfully but more importantly, to help this country to move forward, create employment and combat youth restiveness, he added”.

“You will not be cast adrift, we are working with your State Governments to provide space where you can operate while we empower you with equipments and materials to practice your skills”, Adegbite further assured them as he disclosed that the second phase of the training is in progress.

Earlier in his opening remarks, the Project Coordinator, Mineral Sector Support for Economic Diversification (MinDiver) Project, Engr. Sallim Salaam, appreciated the commitment and support of the leadership of the Ministry led by the Hon. Minister which he believed culminated into the success of the project.

He commended the doggedness of the participants of the first batch of the training for staying through to the end. The Project Coordinator disclosed that there are plans for advanced training for the 21 successful master training graduands, this, he said would be communicated to them in due course.

admin by — May 7, 2022 in News 0