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The Oil Sector: What Ghana can learn from Nigeria

First, I must say that this discussion is not merely academic, but an issue that must be critically examined if the Ghanaian polity and economy will be sustained.

1. AGRICULTURE: The agriculture sector in Nigeria was the main stay of the economy before oil was discovered- we had the great groundnut pyramids of Kano; palm oil was so much in the East and South-South that the area was called the oil river-we had cocoa, cassava, potatoes, and many other crops that yielded good returns in the export market. Even our rubber plantations were doing very well and rubber factories were yielding good returns. But when oil came, the agric sector was so disregarded that now it is still difficult for it to find its place and make meaningful contributions to the economy.

2. THE ENVIRONMENT: The adverse effects that come with the expropriation of oil is something that may not have been conclusively anticipated and effectively planned for by the government. The soils are eroded, the waters and air are polluted and peoples’ areas of livelihood (plus their health) have come under very intense attacks. Once oil is mined, the environment will deplete. The government of Ghana must pay serious attention to this and have a system in place which will address the issue

3. Nigeria is a country with very few of its population doing white collar jobs (just like Ghana), and majority of the country’s population having not had the privilege of classroom education, still rely on subsistent farming/fishing to sustain themselves and their families-The lack of attention to them due to the oil find is one of the chief reasons the country seems to be very eager to plunge in capital intensive projects instead of labour intensive projects. And where the people get the support necessary for subsistent agriculture, the environment is polluted-so they cannot achieve much.

4. THE LAND USE LAWS: Just like Ghana, lands in the country are held in custody by the chief executive of the country (and a few by the state and chiefs) as provided by the Land Use Act. This means that any land upon which oil is found automatically belongs to the state. The process of relocation, rehabilitation and compensation of the communities/families displaced is either slow or non-existent. The government must realise that beyond generating revenue for the state, if the people that make up the state are not effectively taken care of, anarchy is imminent-it is just a matter of time. See the Niger Delta.

5. THE CONSTIUTION: In the constitution of Nigeria there is a concept referred to as the “derivative principle”, which presupposes that the communities wherein oil are found, will enjoy a certain percentage of the proceeds of the oil revenue over and above the rest of the country-This is so that funds will be made available to repair and ultimately sustain the environments being degraded by oil expropriation; and so that people whose main stay of income have been perverted by virtue of the oil, can get other meaningful activities to engage in (especially classroom education). The implementation of the derivative principle has been a very big issue and has resulted in a lot of riots and killings. “Laws are useless when they are not applied in the right situations. They are mere paper prints when they are not implemented”. The government of Ghana must ensure that the legal regime that governs the oil sector is taken seriously and they should also make provisions for addressing situations that are not immediately anticipated.

6. ENVIRONMENTAL IMPACT ASSESSMENT MUST BE TAKEN SERIOUSLY.

7. UNSCRUPLOUS AND SHARP PRACTICES: A legal regime which should take care of criminality in the oil sector must be seriously considered and addressed. One of the reasons why it looks like the impact of the oil boom in Nigeria is not felt is because the laws are so porous and the implementation is not taken seriously, so criminals are engaged in smuggling and brokerage. Smuggling is already an enigma in Ghana-this must be addressed.

I congratulate Ghana today, But I hope that the sign posts mentioned above would help the people of Ghana chat a destiny for themselves presently, and for posterity. It is interesting how whatever happens in Nigeria repeats in Ghana and vice versa. Nothing says it must happen in this case. Beware the lies of the West. Protect the Western Region. Long live the Republic of Ghana.


Thank You for being our dear reader always despite many choices out there. Many thanks from Darey P.N.G (Chief Editor)eNews Nigeria.

5:29 AM | Posted in , , , | Read More »

Goodluck Jonathan gets boost to Nigeria election bid

A group of Nigeria's powerful governors have said they will back President Goodluck Jonathan for next year's elections - seen as a major boost to his campaign. Half of the 36 governors backed Mr Jonathan's bid to be selected as the ruling party's candidate.
Whoever wins the PDP nomination will be the favourite for the April 2011 poll.

Mr Jonathan, a southerner, is opposed by some in the PDP, who say the party should choose a northerner.
The PDP (People's Democratic Party) has a tradition of alternating power between north and south every two elections, meaning a northerner would normally stand in 2011.
Several northern powerbrokers have backed the campaign of former Vice-President Atiku Abubakar, a northerner, to be the PDP candidate.
'Principle of incumbency'

At an emergency meeting in the capital, Abuja, 18 governors and two deputies said they would support Mr Jonathan in PDP primaries on 13 January 2011.
"Democratic systems all over the world recognise the principle of incumbency and continuity," said Ibrahim Shema, governor of the northern state of Katsina, reports the Reuters news agency

They did, however, say he should seek only one term.
The chairman of the governors' forum, Bukola Saraki, also later dissociated himself from their position, saying he would support a candidate from the north.
The PDP has 26 of Nigeria's 36 state governors and, in the party's structures, they wield considerable power.

In previous primaries, they have instructed delegates from their states how to vote.
So the BBC's Bashir Saad Abdullahi in Abuja says their announcement is a significant boost for Mr Jonathan.

But he says that if state delegates vote independently, rather than how governors tell them, Mr Abubakar could still secure the party's nomination.
Mr Jonathan became president in February after the death of Umaru Yar'Adua, a northerner.
He is the first president from Nigeria's southern, oil-producing Delta region.

Nigeria's recent elections have been tarnished by fraud and violence.
Mr Jonathan has promised to introduce electoral reforms, but correspondents say it will be difficult to implement radical changes before April.
The main opposition candidates are former anti-corruption campaigner Nuhu Ribadu and Gen Muhammadu Buhari.

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5:26 AM | Posted in , , , | Read More »

Excess crude account reached N450billion in November

The balance in the Excess Crude Oil Account surged to about N450billion at the end of last month, the accountant general of the federation, Ibrahim Dankwambo, said at the end of the monthly Federation Accounts Allocation Committee meeting in Abuja at the weekend. He said the balance of revenue in the dollar-denominated component of the ECA was about $1.9billion, while about N50billion was transferred into the domestic ECA. This excludes the $1billion already deposited by the federal government as seed money for the take-off of the newly created Sovereign Wealth Fund (SWF).

Mr. Dankwambo attributed the surge in the revenue in the ECA to increased oil production capacity under the various Production Sharing Contracts (PSCs) in recent times as a result of the declining tension in the Niger Delta as a consequence of the impact of the federal government amnesty initiative in the region, improved oil prices at the international oil market above the $60 per barrel benchmark in the 2010 budget as well as a rise in the modified carry agreement receipts by the oil companies.

“The production capacity of the multinational oil operators improved tremendously in recent times as a result of the improved operational environment as a direct consequence of the Federal Government Amnesty Programme for Niger Delta militant groups as well as increase in crude oil prices at the international market. Revenue, generally, was good, that was why there was a transfer to excess crude account (dollar), which has a balance of $1.9billion, (domestic) N50billion) and Sovereign Wealth Fund of $1billion, bringing it to close to $3billion in revenue savings. Our hope is that this level will be sustained,” he said.

More money to share
The AGF said gross revenue available for distribution among the three tiers of government for the month of November was N557.839billion, made up of N407.554billion as statutory revenue, including Value Added tax (VAT). The total figure is higher than N451.074billion from the previous month by N106.766billion. The distributable statutory revenue for the month was N364.639billion, an increase of N564million, or 0.15 percent compared to the October figure. There was no augmentation revenue for the month, neither was there an exchange gain,

considering that the prevailing exchange rate of N147 per dollar was lower than the N150 per dollar set as the benchmark. A total of about N143.043billion was transferred to the ECA, as well as for Petroleum Profit Tax (PPT) and Royalty.



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9:56 AM | Posted in , , , | Read More »

Once again Nigeria loose its Heros

THE Nigerian Premier League was thrown into dark moment on Sunday with the death of Ocean Boys of Yenagoa left back defender, Emma Ogoli.
Ogoli, e News sports learn he slumped on the pitch of the Samson Siasia Stadium, Yenagoa after playing only for 39 minutes during the team's week six tie against visiting Niger Tornadoes of Minna which ended 2-1 in favour of the homers.
The stopper who joined Ocean Boys from sister club,Bayelsa United suddenly collapsed on the pitch and was rushed to a waiting ambulance at the stadium but died on the way to the hospital.

In his reaction, Head Media and Awards Committee of the Nigeria Premier League (NPL),Akin Akinbobola described the incident as pathetic, adding that the player's death was not only a loss to his immediate family and club, but to the the entire Nigerian football fraternity.


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9:53 AM | Posted in , , , | Read More »

Politicians killed Nigerian banks -Sanusi Calls for their arrest

 AS the controversy surrounding the statement made by the governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, about the budget of the National Assembly rages on, the CBN governor has declared that politicians in the country, particularly those who participated in the second and the botched third republics, should be held responsible for killing most of the dead banks in the country.

The CBN governor, who delivered a public lecture entitled “Global Financial Meltdown and the Reforms in the Nigerian Banking sector” at the Abubakar Tafawa Balewa University, Bauchi, said that, “most of the people who killed Nigerian banks are still very much around us, they borrowed money and refused to repay them and when the banks died, they turned around and reinvested the money into their businesses with some of them becoming governors, senators, members of the National Assembly.”

Mallam Sanusi, who said that he did not believe in the categorisation of the banks as ‘failed banks’, explained that, “the banks did not fail but were killed and we must do everything possible to find the killers of the banks just like would be done to find the killers of anybody killed by some people.”
On the banking reform he introduced in the last 17 months, he stated that the reforms had brought stability to the banking sector and the Nigerian economy, adding that due to the measures put in place, no single bank in Nigeria had collapsed ever since the full implementation of the reforms.

He added that no depositor had lost money as a result of the banking sector crisis because, according to him, “the banking system has stabilised and the most affected banks have continued normal operation while modalities for injecting fresh capital into them, either by shareholders or through acquisition and merger arrangements, are being finalised.”

The CBN governor further said that the reforms had also succeeded in returning macro economic and financial system stability, adding that overall output in 2010 was expected to be higher than in 2009, saying, “projections by the National Bureau of Statistics (NBS) showed that the real GDP in 2010 will grow by 7.85 per cent compared to 6.66 per cent in 2009. The growth rate appears robust but there is need to ensure that it translates into job creation and poverty reduction.”

According to him, between 2009 and 2010, the volatility of the economy has moderated significantly explaining that, “headline inflation declined steadily from 15.1 per cent in end-2008 top 10.4 per cent in September, 2009, rising thereafter to 15.6 per cent in February 2010.
“Since then, it has maintained a downward trend to 13.4 per cent in October, 2010.”

However, on the challenges of the reforms, he said that the major challenge was how to sustain and translate the stability into employment opportunities, because, according to him, “the link between major growth drivers, particularly agriculture and manufacturing, has continued to be weak,” there was, therefore, the need to urgently address all binding constraints to growth, he noted.

He also said that, “inadequate or absence of basic economic and social infrastructure remains a major binding constraint on Nigeria’s economic growth and development. There is, therefore, an urgent need to fast-track the proposed reforms in some key sectors of the economy, notably power and oil and gas sectors, to attract the much-needed investment and reduce large import bills on refined petroleum. There is also need to deepen the deregulation process in the electricity process and transport sector to attract private investment.”




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9:44 AM | Posted in , , , | Read More »

Clara Oshiomhole: Exit Of A Strong Woman

NEWS of the death of Governor Adams Oshiomhole’s wife, Mrs. Clara Oshiomhole, on the night of last Tuesday,  in Abuja brought about, albeit momentarily, a sad and solemn atmosphere which enveloped the state. The departure of this woman who stood by her husband as he fought and won different battles on different fronts, as a labour activist and President of the Nigeria Labour Congress (NLC), for the well-being of the Nigerian worker and for the recovery of his electoral mandate, came to many Edo State indigenes and residents as a shock.
Unfortunately, however, Mrs. Oshiomhole lost the battle against one of humanity’s most malignant diseases, breast cancer. Even with the unofficial knowledge of some persons that Mrs. Oshiomhole was suffering from breast cancer, they still received the fact of her death in a somewhat surprised manner.
The 54-year-old mother of five died barely four days to the traditional wedding of the family’s second daughter, Jane, for which preparations were said to have reached an advanced stage. The event had been fixed for Sunday, December 12. The other children are Cyril, Winnie, Steve and Adams Jnr. 
On hearing of his wife’s death, Governor Oshiomhole was reported to have stepped out of his office and wept as he deeply pondered over what had happened. He reportedly left for Abuja by road at about 1:00 a.m. on Wednesday but later returned to Benin City same day in the afternoon to meet a state thrown into a solemn mood.
A statement from the Edo State Government signed by the Secretary to the State Government (SSG), Mr. Pally Iriase, which officially announced her death on Wednesday, confirmed that Mrs. Oshiomhole died “after a protracted battle with breast cancer,” adding that she would be deeply missed by her husband, children, the people and government of Edo state.
An anonymous profiler once wrote that “Mrs. Oshiomhole might not have possessed the crowd-pulling charisma of her husband, but on her own, the affable woman was a force to reckon with.”
Born on 18 June 1956 to the Akaragbon family of Idumu-Agho, Okaigben, Ewohimi, in Esan South East Local Government Area of Edo State, Clara never had the privilege of acquiring early education. This seeming impediment did not affect her determination to acquire a professional academic relevance with which she armed herself.
She then took up appointment as a staff member of the National Institute of Public Information, an agency of the Federal Ministry of Information, Kaduna. She was a secretariat staff of the institute until her husband won a popular victory through a judgment of the Court of Appeal to become governor of Edo State.
“Quiet, admirably low-keyed but forceful, Mrs. Oshiomhole was until her demise, the strong tower behind her husband’s uncanny doggedness and fights with establishments for the welfare of Nigerian workers. Her contributions to the success of her husband’s numerous struggles also played a great impact in his emergence as the governor of Edo State and, indeed, his quest to emancipate the state from the grip of imposed under-development,” the profiler added.
On becoming the First Lady of Edo State, she set up the Health Foundation for Maternal and Child Care (HEFMAC), an NGO for bringing qualitative health care to the indigent people of the state, and which she successfully used to take free health programme to the three senatorial districts of the state.
“As part of her determination to end the travails of women and children, particularly the girl-child, Mrs. Oshiomhole has not only given out millions of naira in payment of hospital bills, she has equally given out scholarships to indigent but brilliant young girls to cover tuition and books from secondary to tertiary institutions of learning. The girls were selected from the three senatorial districts of the state.”
Clara’s battle against cancer apparently limited her public appearances as First Lady and the scope of her plans for the people of Edo State. But that low-keyed disposition no doubt endeared her to the hearts of many, including those who never had the opportunity of meeting her. It might also be part of the reasons the news of her death was received with shock and solemnity, even across political divides. Indeed, the outpouring of emotions knew no bounds.
The number of sympathisers were enormous. The list included those who personally called at the Government House in Benin City to see the bereaved, and those who sent in their condolences. Among them were President Goodluck Jonathan; former President Olusegun Obasanjo; former Vice President Atiku Abubakar; former governors Bola Tinubu of Lagos State, Dr. Chris Ngige of Anambra State, Olagunsoye Oyinlola of Osun state, and Dr. Emmanuel Uduaghan of Delta State; Senate President David Mark; Governors Babatunde Fashola of Lagos State, Rauf Aregbesola of Osun State, Olusegun Mimiko of Ondo state, Adebayo Alao-Akala of Oyo State, Bukola Saraki of Kwara State, Kayode Fayemi of Ekiti State, Gbenga Daniel of Ogun State, and acting governor of Delta State, Sam Obi.
Others included the national chairman of the Action Congress of Nigeria (ACN), Chief Bisi Akande; the Edo State chairman of the Peoples Democratic Party (PDP), Chief Dan Orbih; Nigeria’s First Lady, Dame Patience Jonathan; the Benin monarch, Omo N’Oba Erediauwa; the Esogban of Benin, Chief David Edebiri; first democratically elected governor of Edo State, Chief John Odigie-Oyegun; and National Publicity Secretary of the ACN, Lai Mohammed.
The tributes were unanimous in describing Mrs. Clara Oshiomhole as a quiet, unassuming, supportive and courageous woman.


Thank You for being our dear reader always despite many choices out there. Many thanks from Darey P.N.G (Chief Editor)eNews Nigeria.

7:07 AM | Posted in , , | Read More »

WikiLeaks cables: Nigeria feared coup as president lay dying overseas

The ill health of Nigeria's president sparked fears of a military coup and caused screaming matches over who was in charge of the country, according to secret US diplomatic cables.
Umaru Yar'Adua, who was terminally ill, left the country in November 2009 for medical treatment in Saudi Arabia.
A US memo marked secret and dated 26 February, just after Yar'Adua's return, reveals frantic negotiations in the corridors of power of Africa's most populous nation.
It says the acting president, Goodluck Jonathan, admitted "'everyone's confused' about who is in charge of Nigeria".
"He said the last cabinet meeting was disastrous and included yelling and screaming, and it is totally dysfunctional. He said he is 'not a politician' and had very limited experience as an administrator, but concluded, 'I will not tolerate a brawl.'"
Jonathan named political enemies whom he accused of destabilising the government. "This terrible situation in the country today has been created by four people: Turai Yar'Adua [the ailing president's wife], his chief security officer (CSO) [Yusuf Muhammad Tilde], his aide-de-camp (ADC) [Colonel Mustapha Onoedieva] and Professor Tanimu Yakubu [his chief economic adviser]."
Referring to Jonathan as "the AgP", the memo states: "The AgP said he does not know their motives, but expected it was likely for nefarious purposes ... The AgP noted that 'people are angry'."
Nigeria has a history of army interventions and under the subheading "Fears about military" the cable notes: "The AgP said the military chiefs are making sure no politicians are reaching out to the rank-and-file, and encouraging the military to stay in the barracks so that the uncertain political situation does not generate coup-like behaviour emanating from the mid-ranks because of the confusion."
The memo reveals America's silent role in the Nigerian crisis. Robin Sanders, the US ambassador, "encouraged Jonathan to change the perception that he is a regional figure, and be seen, rather, as a national figure who has the best interest of the nation at heart".
"Ambassador expressed that given that the US and Nigeria are very best friends, we feel the need to share our concerns, as any good friend would do, and that we are counting on him to steer Nigeria through this troubled and uncertain period."
Jonathan said he was picked as Yar'Adua's running mate in 2007 because he represented the Niger Delta. "I was not chosen to be vice-president because I had good political experience. I did not. There were a lot more qualified people around to be vice-president, but that does not mean I am not my own man."
The document concludes: "It is always hard to judge how some will behave (or surprise you) when leadership is unexpectedly thrown in their lap. The verdict is out on Jonathan and his previously underwhelming personality and performance needs to keep us in the cautious lane, but so far, so good. Things are quiet."
Yar'Adua died in May this year and Jonathan was swiftly sworn in as president. He has since announced his intention to contest elections next January.


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7:02 AM | Posted in , , , | Read More »

Meningitis kills 1,720 people in West Africa, says Onyebuchi

The Minister of Health and President of ECOWAS Assembly of Health Ministers, Prof. Onyebuchi Chukwu, has said that from January 2010 to date, meningitis had hit seven countries of West Africa, causing 1,720 deaths.
“In truth, epidemic-prone diseases have always prevailed in our environment. Cholera alone has caused in 2010, approximately 1900 deaths in 8 countries; meningitis hit 7 countries since January 2010, causing 1,720 deaths; measles a disease placed in test phase, is growing every year, reflecting not only the weakness of our health systems, but also their inability to sustain gains achieved with the mass action through international support,” he said.
Prof Chukwu, who spoke at the weekend in Abuja during the Second Extraordinary Assembly of Health Ministers of ECOWAS, said that the region has the highest rates of epidemic-prone diseases despite the enormous efforts devoted for increased disease surveillance, preparedness and response.
The minister said that despite the outbreaks of diseases recorded in all countries of our community, mortality rates have decreased significantly.
“This fact in itself means that with better organisation and capacity building interventions, we can surely achieve positive results in the control of epidemics,” he said.
He said that WAHO has tried to make the fight easy by developing a 2011-2014 regional support plan for epidemic prone disease control in the ECOWAS region.
Also speaking, Dr. Placido Cardoso, Director General of WAHO said “our mandate requires that we support the efforts of ECOWAS member-states to reduce the burden of morbidity and mortality due to epidemic-prone diseases and their negative impact on socio-economic development in the region
“It is also our responsibility to lead a dynamic regional coordination of preparedness and response to epidemics, in collaboration with states, technical and financial partners.” he said.

Thank You for being our dear reader always despite many choices out there. Many thanks from Darey P.N.G (Chief Editor)eNews Nigeria.

6:46 AM | Posted in , , , | Read More »

Minimum wages to value $4.00 per day

The Action Congress of Nigeria (ACN), has vowed to challenge the ongoing attempt by federal lawmakers to gate crash into the National Executive Committees of  various political parties.
The party  described the effort of the lawmakers as a new law in the legislators' continuous efforts to make laws in their interest rather than in the nation’s interest.
ACN, in a statement issued in Lagos, on Sun-day, by its National Publi-city Secretary, Alhaji Lai Mohammed, said it would go to court to challenge the move by the lawmakers, just as  it called on other political parties to also mount a legal challenge against the obnoxious, self-serving, greedy and democracy-killing proposed insertion into the Electoral Act 2010.
The party urged the organised labour, civil society organisations and political parties to march to the National Assembly to ensure such anti-democractic law was not passed.
It described the current National Assembly as the most expensive and anti-people ever in Nigeria 's history, saying it was time to stop them from ruining the democracy that mil-lions of Nigerians fought to entrench.
“Our legislators are the highest paid in the world, with those of Kenya - a distant second. Yet, they never consulted us before padding their pay to such high levels.
“The widespread story is that each of them earns a million naira per day, except on weekends and public holidays! This is not far from the truth, since each one smiles home with N45 million per quarter in a country where most citizens live on less than US$1 a day, and the minimum wage being fought for comes to US$4 per day!”

4:39 AM | Posted in , , , | Read More »

CBN bars banks from giving loans to politicians

THE Central Bank of Nigeria (CBN) has barred commercial banks from offering loans and gifts to political parties, under new industry rules.
According to the apex bank, banks have been prohibited from purchasing any real estate other than for their offices and branches. The rules come into effect  today.
The CBN is tightening laws after firing the chief executive officers of eight of the country’s 24 banks last year after bad debts, much of them from loans to speculators in the local stock market, threatened the industry. The CBN pumped N620 billion into banks and set up the state-owned Asset Management Corporation of Nigeria (AMCON) that will buy N2.2 trillion of bad debts from them this year.
“Banks must operate as commercial, merchant and specialised lenders, with universal banking falling away, the Central Bank said on Sunday. They have 90 days to submit a compliance plan,” it said.
Under the rules, banks won’t be allowed to give loans for people to invest in the primary issues of shares of banks,” the Central Bank said.
It will be recalled that the former Chief Executive Officer of Oceanic Bank Plc, one of those bailed out during the debt crisis, Mrs Cecilia Ibru, was convicted by a high court last month for bank fraud. She forfeited N191 billion in assets and funds, including 94 properties in the U.S., Dubai and Nigeria and shares in 100 companies, according to the Central Bank.

2:10 AM | Posted in , , , , | Read More »

Nigeria to become net exporter of cement by 2011

Finance Minister, Olusegun Aganga, at the weekend, said that the Federal Government was considering the introduction of concrete roads construction in the country as Nigeria is set to dominate the African cement market by 2011.
Compared with bitumen, concrete roads are said to last an average of 50 years against 15 years for bitumen. At a facility tour round Obajana Cement Plant at the weekend, Alhaji Aliko Dangote hinted at the possibility of the group rehabilitating the Obajana- Kabba road with concrete.
He described the backward integration of the cement industry as one of the most successful government policies of the Nigerian government and that the National Economic Management Team (NEMT) would soon meet to seek more ways of encouraging the industry through promulgation of policies to take the sector to the next level of success.
He expressed delight that the cement industry, which sources 95 per cent of its raw materials locally, has emerged as the first sector from where Nigeria will become the net exporter.
According to him, the consequence is that Nigeria will begin to generate foreign exchange through the export of cement by the end of 2011.
Earlier, the Managing Director of Dangote Group, Mr. Joseph Makoju, had told the minister and the Minister of State, Hajia Yabawa Lawan Wabi, that by the end of 2011, the group would be producing 20 million tonnes of cement from its various plants across the country.
According to him, the group’s new plant in Ogun State will produce six million tonnes, Obajana will be producing 10.5 million tonnes while Benue Cement plant will produce 3.75 million tonnes, making a total of 20 million.
Aside Dangote, Makoju said that other manufacturers and importers would contribute eight million, six hundred thousand tonnes of cement in 2011.
In 2009, Nigeria consumed 15 million tonnes of cement, he told the ministers but added that this would rise to 17 million tonnes by 2011 and with the Dangote alone producing 20 million tonnes of this, there will be an excess supply of 11.6 million tonnes of cement in the year.
He, however, lamented that for the first time ever, Nigerian cement industry is witnessing stock build-up and warned that the situation portends great danger as it may discourage further production and expansion.
At present, Dangote Industries alone has 500,000 tonnes of cement in store worth N15 billion. Makoju informed the ministers and said that there was the need to stimulate greater cement consumption in the country so that factories will not have problems and staff will not be laid off.
The Dangote Group, he stated, currently has over 10,000 staff in its haulage section with about 2,500 trucks and that the Obajana plant has the capacity to load 500 trucks every two minutes.

2:07 AM | Posted in , , , | Read More »

Precautions abound for traders as exchange approaches critical point

The Nigerian stock market recorded a turnover of 2.65 billion shares valued at N21.5 billion in 31,639 transactions through the week ended November 12, 2010. Of this volume, the banking subsector accounted for 32.60%; volume in the banking sector was mainly enhanced by transactions on the shares of United Bank for Africa Plc, Oceanic Bank, Zenith Bank Plc and Guaranty Trust Bank Plc. In all, the sector did 1.9 billion shares worth N13.45 billion in 16,158 transactions. Just like other weeks, the Insurance sector followed in the performance line with 271.5 million shares valued at N186.9 million exchanged by investors in 1,324 exchanges.
All Share Index of the Nigerian Stock Exchange (NSE ASI) closed up by 567.36 points or 2.33% from the opening figure of 24,800.47 to 25,367.83 points. Two black days and three bullish moves took the said indicator to its present trading point. At the end of the week, 60 stocks closed above their respective opening prices, 27 shed price while 116 resisted both the bull and bear’s forces and closed on a flat note. Meanwhile, advancing equities moved 2.138 billion shares same as 80.66% of market volume. Declining stocks did 168.59 million shares or 6.36 of market volume while unchanged equities accounted for the remaining 12.98% of the market volume. This indeed is a bullish market. Noteworthy is the fact that all stocks in the banking sector closed above their respective opening prices.
Market outlook
NSE ASI is currently trending around a very sensitive resistance point, this point have acted as a fair support during the 1st quarter of the year after which it turned out to strong resistance point. Good break above 25,900 points is very bullish, though traders need to tread carefully at this critical region as sustaining it will require sound market fundamentals. Although some equities especially in the banking sector seems protected from sharp bear’s knife, movement on their prices in recent times has been very sharp and should be watched carefully. We do not expect any sharp drop but we foresee a situation where they struggle around some short range just as we see on the share price of First Bank. If this happens, hasty traders may attempt exit at all cost. In conclusion, every entry in the banking stocks should be done very cautiously.
Corporate action on friday 12th, 2010 Spring bank Plc profile
Spring Bank came into existence from the Central Bank of Nigeria (CBN) directive of July 6, 2004 on bank capitalisation and consolidation (shoring up capital base to N25 billion). ACB International Bank Plc, Citizens Int’l Bank, Fountain Trust Bank, Guardian Express Bank, Omega Bank, and Trans Int’l Bank merged to form Spring Bank Plc.
A new era sprung up when Bank PHB Plc acquired majority stake in Spring Bank Plc on December 18, 2008 as such it became part of Bank PHB Group. Consequently, a new Board of Directors was approved by the CBN for the bank but it currently maintains its independent account.
Performance
In the bank recent results for unaudited Q3 for the period ended September 30, 2010, its performance indexes grew strongly upside. Turnover within the period grew by 20.4% at N18.64 billion against N15.48 billion in Q3 of 2009. Profitability index had a stronger growth by over 111.5% at PAT and PBT positions. This is an outstanding performance due to the fact that the bank recovered from loss after tax figure of N28.64 billion in Q3 2009 to net profit of N3.28 billion in the current report. The effect of recovery was more reflected on earnings and ratio indicators. Q3 EPS now stands at 29 kobo.
Report on the otc market for fgn bonds
A total turnover of 184.43 million units worth N179.77 billion in 1,068 deals was recorded last week, in contrast to a total of 277.45 million units valued at N271.38 billion exchanged in 1,828 deals during the week ended Thursday, November 4, 2010. Measured by turnover/volume, the most actively traded bond was the 9.45% FGN January 2013 (5th FGN Bond 2013 Series 1) with traded volume of 36.0 million units valued at N35.89 billion in 295 deals. This was followed by 10.00% FGN July 2030 (7th FGN Bond 2030 Series 3) with a traded volume of 29.1 million units worth N21.80 billion in 254 deals.
Twenty-one (21) of the available thirty-five (35) FGN Bonds were traded during the week, compared with twenty-six (26) recorded in fortnight ago.

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Nigerian security rejects reports that arms were bound for Gaza

Security forces in Nigeria believe a recently-seized arms shipment -- reportedly from Iran -- was bound for the western African nation, not another land.
Marilyn Ogar, spokeswoman for the county's security service, on Friday rejected reports that the material was headed to the Palestinian territory of Gaza, as claimed by some reports in Israel.
In fact, some observers speculate, the weaponry was seized ahead of the 2011 controversial elections which would pit Goodluck Jonathan, the current president from the Christian south, and presidential candidates from the Muslim north.
The country's security service said that it had seized 13 shipping containers in the port of Lagos filled with illegal weapons, including rockets, grenades and bullets.
Each shipping container carried 20 wooden crates, and a leading global shipping company has said that the weaponry came from Iran.
Nigerian officials won't confirm that the materiel originated in Iran, and the country's foreign ministry issued a statement knocking down reports that Nigeria was targeting a particular nation in its investigations and that it was planning to go to the United Nations to lodge a complaint.
This comes as the foreign ministers of Nigeria and Iran met on Thursday.
"If at the end of these investigations, there were breaches of international instruments or conventions to which Nigeria is party, the country would, as a responsible member of the international community, 'do whatever was necessary,' " the Foreign Ministry said in a statement.
The company, CMA CGM, said it was a victim of a false cargo declaration. The shipper -- who the company identified as an Iranian trader -- had listed the materials inside the containers as "packages of glass wool and pallets of stone."
The containers in question were loaded in Bandar Abbas, a port in southern Iran, and discharged in Lagos in July, the company said.
There has been Christian-Muslim sectarian violence in northern Nigeria, and analysts say the upcoming vote will potentially be one of the most controversial and violent election periods in the country's history.

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Gunmen Bomb Timi Alaibe’s House •Kill One Policeman

An explosive suspected to be bomb at the early hour of Friday went off  at the premises of the Special Adviser to the President on Niger Delta Matter, Mr. Ndutimi Alaibe, in Opokuma community, Kolokuma/ Opokuma Local Government Area of Bayelsa State, killing one police constable.
The attack, allegedly carried out by  suspected gunmen, was confirmed by the Commissioner of Police in the state, Mr. Aliyu Musa, stating that one of his men died while the other one earlier declared missing had been found.
Aliyu said the gunmen did not go away with any of the property in the house. He, however,  stated that one of the hoodlums alleged to have participated in the bombing of the building had been arrested.
This is coming barely 48 hours after the police foiled the attempt to bomb the popular Ekeki Motor park by suspected members of the Movement for the Emancipation of the Niger Delta (MEND) which has thrown the entire community into panic.
Unconfirmed reports disclosed that the suspected gunmen invaded the  community around 1:00 a.m and started shooting sporadically into the air to scare villagers..
After gaining entry into the compound, the bomb was  allegedly detonated, thereby causing severe damage to the building.
However, it could not be ascertained whether the victim was shot while trying to repel the attack by the gunmen.
As of the time of filing this report, movements to the compound have been restricted while passersby were subjected to search by combined team of police and operatives of the Joint Military Task Force, (JTF).
Also, anti-bomb squad was said to have been deployed in the area in order to ascertain whether there are explosives that are yet to be detonated.
Meanwhile, the Action Congress of Nigeria (ACN) has called for a full investigation into Friday’s bombing  describing the act as barbaric, inhuman and cowardly.
Making this known in a statement, the state chairman of the party, Mr Miriki Ebikibina, noted with dismay that the attack was coming barely few weeks after a similar one was launched at the oil installation of the Nigeria Agip Oil Company, (NAOC).
Meanwhile, Special assistant to Alaibe, Henry Ngbolue, described the bomb blast as shocking, saying details of the incident were not known yet.
According to him, his boss was in Abuja when the event took place, adding that Alaibe remained unruffled.

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Dokpesi denies connection with bombings


Raymond Dokpesi, the director general of Ibrahim Babangida’s presidential campaign organisation, maintained at a Federal High Court in Abuja yesterday that he had no connection with the Independence Day bomb blast which killed 19 people.
The State Security Service (SSS) had detained Mr Dokpesi shortly after two car bombs exploded in Abuja on October 1. The service defended its questioning of Mr Dokpesi, saying he had exchanged texts messages with some of the persons suspected of complicity in the twin blasts.
Mr Dokpesi is suing the service over the interrogation, which lasted several hours. He is seeking a declaration that his arrest and detention were unlawful and a violation of his rights. The SSS warned that if the court intervened in the matter, it would tie up the hands of the service and impede its efforts to promote national security.
Counsel to the SSS and the Attorney General of the Federation, Alex Izinyion, said the service was statutorily empowered to invite any person for questioning on matters of national security. He said Mr Dokpesi had been invited to clarify a statement made by Edmond Ebiware, a suspect arrested in connection with the attack. Mr Ebiware said he had met Mr Dokpesi some days before the attacks and claimed he received N4 million from him.
“In the process of his investigation, Mr Dokpesi was granted bail and requested to show up for further investigation,” said Mr Izinyon.
Dokpesi lays it bare
However, Kanu Agabi, counsel to Mr Dokpesi, said his client was not aware of the person referred to in the text messagse, noting that there were several persons bearing the name Dokpesi.
“As such he is seeking a declaration that since he is not involved in or in any way associated with the person or persons, organisation or organisations responsible for the bomb blast ... He has committed no offence to warrant his continued arrest or detention or questioning or harassment or intimidation by 1st Respondent as a suspect in that connection,” said Mr Agabi.
He urged the court to dismiss the suit as “frivolous and constituting gross abuse of judicial process.” Furthermore, Mr Agabi wanted a declaration that the service’s arrest, detention, harassment and undue questioning constituted a gross violation of Mr Dokpesi’s rights and was unlawful and unconstitutional.
At the resumed hearing of the matter on Thursday, Mr Agabi, said that he needed more time to file a response to an earlier affidavit filed by SSS challenging Mr Dokpesi’s claim that the service had violated his fundamental human rights. Mr Izinyon also sought an extension of time to file his objection and written addresses, in opposition to Mr Dokesi’s claims. The presiding Judge, Abdullahi Kafarati adjounrned the matter to December 8, for adoption of addresses.

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Nigerian foreign minister threatens action against Iran in arms case

ABUJA, Nigeria — Nigeria will take actions against Iran if an investigation shows it violated international law and U.N. sanctions in an arms smuggling case, Nigeria's foreign minister said Friday.
The artillery rockets and other weapons, loaded in 13 shipping containers that were labeled as building supplies, were seized on Oct. 26 at a port in Lagos, Nigeria. Nigeria's security service believes the arms were imported by some local politicians to destabilize the country if they lose in upcoming elections that are expected to be hotly contested.
An international cargo shipper based in France has said one of its ships picked up the containers from Bandar Abbas, a port in southern Iran.
"The consignment did originate from Iran," Nigerian Foreign Minister Odein Ajumogobia told a news conference Friday "That has been confirmed from our own shipping documents and the Iranian authorities have also confirmed that the consignment did originate from Iran."
Underscoring the sensitivity of the matter, Iranian Foreign Minister Manouchehr Mottaki met with his Nigerian counterpart here late Thursday.
Ajumogobia said that as a result of his "very productive meeting" with Mottaki, the Iranian official authorized Nigerian officials to interview one of two Iranians implicated in the arms case. But Ajumogobia said the other man has diplomatic immunity.
Nigerian authorities believe both men are hiding in the Iranian Embassy, located down a quiet street in Abuja, the capital, and which is being watched by Nigerian security officials.
"If Nigeria finds at the conclusion of the investigation that there has been a breach of international law, a breach of U.N. sanctions, Nigeria is a member of the U.N. Security Council (and) we will do what is necessary," Ajumogobia told reporters.
In a 2007 resolution stepping up sanctions on Iran over its nuclear program, the U.N. Security Council banned Iranian arms exports, forbidding the sale or supply of weapons by Iran, whether directly or indirectly. It requires nations to prevent any such transfers and prevent their citizens from obtaining any weapons from Iran.
Mottaki's visit came after Nigerian authorities had concluded that Iran's government was behind the arms shipment, according to internal Nigerian government documents seen Thursday by The Associated Press.
The Nigerian foreign minister said Mottaki cleared the way for Nigerian security officials to interview Azimi Agajany, one of the men who Nigeria says organized the secret arms shipment through a Tehran-based company called International Trading and General Construction. Ajumogobia said Agajany may be questions as early as Friday.
The internal government reports seen by AP say Agajany received a visa to travel to Nigeria after getting an endorsement from Sheikh Ali Abbas Othman, also known as Abbas Jega, a Nigerian who worked for Radio Tehran's Hausa language service and studied in Iran. Jega is in the custody of Nigeria's State Security Service, a Nigerian government official told the AP.
The other Iranian implicated in the case, Sayed Akbar Tahmaesebi, entered Nigeria after Nigerian authorities received a letter of recommendation from Iran's foreign ministry saying he would "provide administrative support" at its Abuja embassy, according to the internal Nigerian reports.
Tahmaesebi has diplomatic immunity and cannot be questioned without Iran's consent, Ajumogobia said.
"If the Iranians are willing to waive immunity then we will pursue that, but in the meantime we are taking one step at a time," the Nigerian foreign minister told journalists.
Inside the cargo containers at Nigeria's main port in Lagos, inspectors found 107mm artillery rockets, rifle rounds and arms. The rockets can accurately hit targets more than 5 miles (8.5 kilometres) away with a 40-foot (12-meter) killing radius. Insurgents in Afghanistan and Iraq have used similar rockets against U.S. troops. China, the United States, and Russia manufacture versions of the rocket, as does Iran.
Displaying a lack of knowledge about Nigeria's geography, Agajany initially wanted the consignments shipped to Abuja, the documents said. When Agajany was told there is no port in Abuja, which lies hundreds of miles (kilometres) from the coast, he came up with Lagos as the destination.
By shipping arms to the country, Iran may be attempting to "tweak" Western powers by showing it can influence affairs in a country vital to U.S. oil supplies, said David Bender, a Washington-based analyst who studies Iran for the Eurasia Group.
"From their perspective, it doesn't cost anything," Bender said. "But it gives the impression that they are a global player."
Nigeria has a predominantly Muslim north and Christian south. Targeted killings allegedly committed by a radical Islamic sect have been shaking the north while militants have launched attacks in the oil-rich southern delta. Presidential elections are scheduled for next year in Africa's most populous country that embraced democracy only a decade ago after a string of military dictatorships and coups.

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Lawmakers to empower Immigration officials to bear arms


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A bill to repeal the Federal Immigration Act, one of the oldest in the country which dates back to 1963 passed second reading at the House of Representatives yesterday.
The immigration law has several defects, including a lack of provision for the use of arms by immigration officers. However, officials of the service have borne arms illegally, lawmakers said yesterday and the overhaul, coming after many amendments, will authorise such use and empower the Service other areas.
The new law for instance, will touch on the expatriate quota - a touchy labour issue, particularly in the oil sector and other issues of immigration of foreign nationals. It will also replace the present headship of the service (Comptroller General) with a Director General.
Lawmakers noted that most of the provisions of the 47-year old Act were no longer in tune with present day challenges and therefore needed a long due overhaul.
“This is why most nations of the world take their immigration law very seriously to the extent that it a very big issue during campaign for election into public offices”, said Femi Gbajabiamila, (AC Lagos state.) The Nigerian Immigration Service presently administers the Expatriate Quota system, which outlines procedures and the size of foreign personnel working in the country, particularly in the oil and gas sector.
Now new agency
Trade unions in the sector have consistently raised complaints of domination by the foreigners and have called for increased quotas for Nigerians and technology transfer.
A proposal last year to set up an Expatriate Quota Administration Agency, was opposed by the federal government, which argued that it would amount to a waste of funds since the Nigerian Immigration Service can function in that regards if well funded.
Former Attorney General, Michael Aondoakaa advised that funding to the NIS be improved and that the proposal to establish a new Agency was “too shallow as it is out to address on the Oil and Gas sector only.”
The new bill is to capture those areas according to Jerry Manwe, the chairman House committee on Interior, because it touches on key issues such as national security, labour, revenues and taxes among others.

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Jonathan works for Uduaghan’s victory

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President Goodluck Jonathan is making efforts to pacify chieftains of the Peoples’ Democratic Party in Delta State bent on ensuring that Emmanuel Uduaghan, who was recently sacked as the state governor, does not contest the rerun election expected to take place in the next three months.
Mr. Jonathan is reportedly talking to Edwin Clark, a foremost Ijaw leader who is allegedly bent on truncating the re-election bid of Mr. Uduaghan.
The former governor who was in Abuja on Wednesday to meet Mr. Jonathan told journalists at the Presidential Villa that he had come to, “brief President Jonathan, the leader of our party, on the political development in my state.” He later met with the president in the evening, and Mr Jonathan was said to have assured him of his support.
The national leadership of the PDP is also working to reconcile all warring parties in the state to ensure that all those likely to work against the re-election of Mr. Uduaghan listen to the appeal of the president and work in “one accord” to make sure the party wins the rerun election.
Mr. Uduaghan has had a long-running battle with a faction of the party under the influence of Mr Clark. The group had publicly celebrated the former governor’s ouster and announced its opposition to his nomination as the party’s candidate in the rerun election expected to hold by early February. Mr. Clark is also one of the staunchest supporters of Mr. Jonathan in the country.
Mr. Jonathan, a source privy to the meeting said yesterday, threw his weight behind the former governor, just as he has done in previous cases in which he had supported incumbent PDP governors.
This support is critical for Mr. Uduaghan, who is currently battling to return to the Delta State Government House, amidst strong oppositions ahead of the re-run election for the gubernatorial seat in the state.
Mend thy ways
A presidency source said although Mr. Jonathan re-assured the former governor of his support, he admonished Mr Uduaghan to be more amenable to his critics in the future.
“The president may have really been angry with the former governor because of his past alleged disloyalty. However, he reassured the governor of his support to re-contest the seat,” the source said.
“The former governor has been directed to go and do a few things to correct his past mistakes,” the source added.
The former governor had earlier told journalists at the presidential villa that he was set to do battle with his political opponents in the rerun election.
Obviously counting on the president’s support, Mr. Uduaghan said he was confident that he would win the election, maintaining that he was confident in the electorate, whom he said “will decide.”
New voters register
Meanwhile, a body known as Good Government Initiative (GGI) has called on the Independence National Electoral Commission (INEC) to use the conduct of the re-run election in Delta State to prove it has the ability to conduct a free and fair election. The group, in a statement signed by Eric Omare, its coordinator, urges INEC not to use the present voters register to conduct the re-run election in the state because it is fraught with irregularities.
The statement condemned what it called the inconsistent judgments of various panels and tribunals, adding that yesterday’s judgement was an indictment on the Nigerian judiciary.
“The voters register was deliberated manipulated in the last voters’ registration to favour Emmanuel Uduaghan. This manipulation was done in some wards in some local government areas where Dr.Uduaghan was perceived to have strength,” he said. “We therefore call on Jega to ensure compilation of a new voters register before conducting the re-run election in Delta State. The present voters register in Delta State cannot guarantee a free and fair election”, the statement said.

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Ghana President Return Home after a day visit to Nigeria

Accra, Nov. 11, GNA - President John Evans Atta Mills, returned home on Wednesday evening, after a day's official trip to Abuja-Nigeria.
    
He was accompanied by some government officials.
    
Mr Koku Anyidoho, Presidential Spokesperson and Press Secretary, who accompanied the President, told journalists on arrival at the Kotoka International Airport that President Mills and his Nigerian counterpart  held talks on the need for West Africa to stand out as a shining example of democracy and good governance.
    
He said Nigeria's success with its pending election is of great importance not to that country alone but the entire sub-region.
     
Mr Anyidoho said Ghana is most supportive of a peaceful and successful election in Nigeria.
    
He said President Mills also congratulated Nigerians for their country's Golden Jubilee celebrations.
    
Mr Anyidoho said President Mills visit to Nigeria followed a mutual agreement between the two leaders.
GNA

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Okah case postponed

okah_nov 12The case of Nigerian terror accused Henry Okah was postponed to November 19 in the Johannesburg magistrate's court on Friday.
Magistrate Hein Louw could not hand down his judgment on the matter due to technical delays.
“This court cannot hand down judgment as I did not have access to my electronic records,” said Louw.
The State agreed to the postponement but put it on record that the case was delayed due to the defence's actions.
While Louw was studying the audio records of court proceedings, the defence applied for access to the tapes.
“I was flustered upon receiving this request,” an obviously irate Louw said.
He said he didn't want the matter to be delayed any further and wanted to hand down judgment, but couldn't do that without listening to the tapes.
The defence was unsuccessful in another application to move Okah to a high risk centre in Johannesburg central prison.
In denying the State's application Louw said it was beyond his jurisdiction to grant such an application.
He said Okah was the responsibility of correctional services and not that of the investigating officer.
He said the court normally granted such applications provided those parties agree.
Defence lawyer Rudi Krause asked the court to intervene by ordering the investigating officer to move Okah to the high risk facility so that he could have more access to his client.
Okah faces charges of terrorism, relating to the October 1 twin car bombing which killed 12 people and injured 36. - Sapa

5:21 AM | Posted in , , | Read More »

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