Financial watch 02 01 2018

New Year: We’ll mobilise for national protest if… —TUC threatens

By Cynthia Adigwe The Trade Union Congress (TUC) declared that it would have no option than to hit the streets in protest if the dehumanizing

conditions of Nigerians and especially the workers persist in the New Year.

The Congress also threatened to

direct and mobilise the entire workers, especially its members all over the country to abandon their cars on major roads, If the

perennial fuel scarcity continues.

In its New Year message, signed by the President, Comrade Bobboi Bala Kaigama and the

SecretaryGeneral, Comrade Musa-Lawal Ozigi, said Nigerian workers have lost their jobs in millions;

CBN, NeFF project tougher year for e-payment fraudsters -Page 10

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while many have committed suicide when they could no longer fend for their families.

While commending the workers and Nigerians for their endurance and ...Cont. On page 3 VOL 09

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Ecobank Nigeria unveils Xpress Account - Page 8

By Ezekiel Enejeta Ecobank Nigeria has unveiled Ecobank Xpress Account, a digital product that will take banking to the grassroots. The Ecobank Xpress Account is a Digital Account that is mobile based. It is simple and does not require any form of documentation for opening, making it easy and convenient for all.

Italso affords customers the same services available to regular account holders. The Ecobank Xpress Account can be opened on the Ecobank Mobile App by smartphone users and or via USSD for feature phone users.

At the unveiling ceremony in Lagos, the Managing Director, Ecobank Nigeria, Mr Charles Kie said this is part of the bank’s Continue on Page 8

Firm Highlights Benefits of Mutual Funds’ Investments

By Helen Okolo

Mutual funds are pools of funds that a Mutual funds professional fund provide wealth manager brings creation together from opportunities for low various investors to income investors, a invest in selected report has stated. underlying

Securities.

The underlying securities can be one or a combination of the following: stocks (shares), money market

instruments, fixed income securities, real estate, and commodities.

According to the report by FSDH

Merchant Bank, the pooling of a large number of relatively small investment sums enables low Cont. On page

Experts predict better economic performance in 2018

By Haruna Magaji

fiscal year over the previous year.

Stakeholders are For assistance, the optimistic that the economy, through Nigerian economy will recovering crude oil fare better this year than prices and higher oil in 2017, From available production, witnessed a statistics, the Nigerian positive Gross Domestic economy recorded some Product growth improvements in the 2017 trajectory after a

debilitating recession that spanned five quarters in a row.

However, the foreign exchange market was less chaotic as a result of a remarkable accretion to the external reserves, which surged from $25.84bn on January 3 to

$38.7bn on December 28, 2017.

Similarly, inflationary pressure moderated considerably from a peak of 18.72 per cent in January to 15.90 per cent in November 2017.

The stock market was bullish on the average,

posting impressive returns, with the Nigerian Stock Exchange All Share Index recording 43.39 per cent year-to-date gain as of December 13, 2017, which significantly ...Cont. On page 4

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Focus on productivity, experts tell CBN

By Ali Sam

development using effective, efficient and transparent implementation of monetary The muchawaited 2018 is exchange rate policy and here with lots of management of the financial sector. promises and opportunities for Financial pundits have the economy. advised the CBN to focus less Financial on keeping inflation low, but pundits want lift productivity, drivers like the Central Bank of Nigeria Small and Medium Enterprises (SMEs), (CBN) to focus less on inflation manufacturing, agriculture control which is and other real sector He commended the CBN’s “Parallel market rate has stifling growth, operators have suggested. efforts at stabilising the appreciated 34.6 per cent sustain foreign naira at both the official year-to-date; the Impressed by the rate of the exchange and parallel market. He introduction of the economy’s recovery, the CBN interventions said although the CBN has Investors and Exporters’ Governor, Godwin Emefiele, and lift not fully succeeded Forex Window in the is confident that the country productivity restoring the local market, accretion in will return to single digit drivers like currency’s lost glory, but the external reserves and inflation rate.

Small and regulator has won a major improved stability in the Medium part of the battle. forex market all Former Executive Director, Enterprises contributed to a stable Keystone Bank, Richard (SMEs) and For the first time in nearly exchange rate in 2017. manufacturers, Obire, said the CBN should Depreciated against the eight months, the local stop selling treasury bills at through pound by 0.2 per cent to currency sustained its improved credit attractive rates, which has close at N484/£ while it stability against the made it easier for banks to access, writes closed flat against the greenback. Managing invest and declare huge COLLINS Euro to close at N426,” he Director, Financial profits without contributing NWEZE. said.

Derivatives Company to economic growth.

Limited, Bismarck Rewane, At the interbank market, No one wishes the naira appreciated explained that at the “Banks should in the New to see the marginally to close at parallel market, the naira challenges that Year support productive N306.05/$ from N306.25/$ traded flat against the put the economy sectors of the economy and on December 14. The dollar at N364/$ on not just invest in treasury in jeopardy in external reserves level December 28. The naira the last year in bills. The CBN should also increased by 2.9 per cent depreciated against the this brand new leave inflation to take care of ($1.07 billion) during the dollar to N365/$ before itself. The Ease of Doing 2018. But period, to close at $37.92 Business should be improved appreciating to N364/$ as realising this billion on December 22. the demand pressure from on while the foreign exchange wish would This was due to the increased liquidity and interventions should be require proceeds from the foreign investors exiting sustained,” he said. proactive and their positions intensified. Eurobond issuance. intelligent decisions by the economy managers, especially the mprovement in Lagarde said the “In 2017, for the Central Bank of By Cynthia Adigwe first time in a long favourable climate 2018, to 3.7 percent.

Nigeria’s lent itself to time, we revised International (CBN’s) In Lagarde’s native implementing our growth Monetary Fund mandate to keep France, seen for reforms. forecasts upwards chief Christine the inflation years as one of whereas previously Lagarde has urged low, achieve Europe’s weak “When the sun is we used to lower stable exchange France and other links, the recovery shining you should them,” she said. rate and ensure countries to push take advantage to kicked in in earnest through reforms that interest this year. fix the roof,” she Global growth of “while the sun is rate is positive said, using one of 3.6 percent was shining” on the (above inflation From 1.1 percent in both “stronger and her favourite global economy. rate) to 2016, growth is maxims. more widely encourage more expected to rise to shared” in 2017, In an interview people to save 1.9 percent in 2017 This year’s global she said, noting with France’s Le and enhance — still short of the growth is on a par that developed Journal du banks’ drive to with the average of 2.4 percent forecast economies were Dimanche grow the for the eurozone as now growing again the two decades published Sunday economy. a whole but better leading up to the under their own Lagarde said the than the 1.6 percent global financial steam and no strength of the The CBN’s role initially forecast in crisis of 2007-2008. longer merely global economic is to deliver the eurozone’s recovery had taken being pulled along price, financial second-largest The IMF has by demand in system stability the IMF by economy. forecast a further emerging markets. and sustainable surprise. slight i economic

Make reforms while sun shines on world economy – Lagarde

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January 2, 2018

...Cont’d from page 1 persistence,the Congress pointed out with regret that the pain they bear during the year is a needless one.

The TUC said: “It is no news that pensioners (our senior servants) who served this country meritoriously die on a daily basis, even at verification locations throughout the country.

Though their pension is not paid yet, they are burdened to feed their graduate children who are yet to get jobs five years after graduation.

“This is not the best of times in our country as Nigerians are subjected to various dehumanizing conditions. How do we explain it, that in the midst of the grueling fuel scarcity many workers are still being owed up to six months salary.

“Bailouts were given but unfortunately diverted by governors and the Federal Government seems not to be doing anything about it.

Those governors involved in such irresponsible act should be brought to book.”

“There is no milk of kindness left in our leaders anymore,” the Congress said, adding, “they prefer state of the art monuments and house, as well as five-star hotels to human life and the education of our children (the supposed leaders of tomorrow).

“Families die on our roads yet they tell us our roads are not as bad as some Nigerians claim. It is only in Nigeria people pay for services that they did not use. The power sector is a case in point. If things remain like this the Congress may have no option than to hit the street.”

The TUC, made various demands in the New Year, which include that the National Minimum Wage Committee set up by the Federal Government should conclude everything concerning the new wage on or before the end of the second quarter of 2018.

It also stated that all state governments should pay all outstanding salaries and allowances to workers before the end of the first quarter in 2018.

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Experts predict better economic performance in 2018 ...Cont’d from page 1 surpassed the negative performance of the previous year.

The World Bank’s Ease of Doing Business ranking, in which Nigeria moved up 24 places, was indicative of an improved business climate.

But it was not all cheering news in the year just gone by. The recent disclosure by the National Bureau of Statistics that the unemployment rate jumped from 14.2 per cent in the fourth quarter of 2016 to 18.8 per cent in the third quarter of 2017, while a total of four million people became unemployed during the first nine months of the just concluded year seem to outweigh the many positive economic developments in 2017.

Reflecting the low growth environment and exposure to the oil and gas sector, the banking industry’s solvency ratios declined from about 15 per cent to 10.5 per cent between December 2016 and October 2017. Nonperforming loans in the banking sector rose to 15 per cent as of October 2017, well ahead of the Central Bank of Nigeria’s regulatory threshold of five per cent.

Against this backdrop, finance and economic experts on Sunday predicted further improvements in some key economic indicators in the 2018 fiscal period.

They, however, warned that the combined forces of double-digit inflation, high unemployment rate and a fragile GDP growth, which is still below the rate of population growth, might conspire to prevent any significant improvement in economic indices on the welfare of the ordinary Nigerian.

For instance, the immediate past President of the Abuja FINANCIAL WATCH

Chamber of Commerce and Industry, Mr. Tony Ejinkeonye, said the non-passage of the 2018 budget by the National Assembly before the December 31 date set by the Executive would slow down economic activities in the first quarter of this year.

He stated that there was a need for the Federal Government to inject more funds into the economy to enable it accelerate the implementation of the Economic Recovery and Growth Plan.

Ejinkeonye explained, “The economy requires significant fiscal injections to sustain and accelerate the Economic Recovery and Growth Plan put in place by the present administration.

“With the significant investment in infrastructure, education and agriculture, among others, there is also hope that the country’s efforts in diversifying the economy, revenue and export base are to be sustained.

“The capital aspect of the 2018 budget is an indication that sizeable resources have been allocated to capital expenditure, which means more effect will be felt in this regard as compared to the previous years where only lip service was paid to the matter.”

He added, “As it stands today, the 2017 national budget is still under implementation and there is every tendency that it may last till June 2018, yet the President in his wisdom announced that the 2018 budget will commence implementation from January 2018.

“This will introduce some elements of confusion in the way it is carried out as it may be difficult to appropriately track each of the budgets

except urgent and responsible measures are put in place to comprehensively take care of this.”

Also commenting, a developmental economist, Odilim Enwagbara, said in a telephone interview on Sunday that a liquid foreign exchange market, coupled with the Federal Government’s increased investment in the value chain segment of the agriculture sector, would unlock the job creation potential of the economy.

He stated, “This country cannot develop without those who are passionate and ready to show us the unconditional ways of dealing with our fundamental economic problems. Let us know that economic development is 70 per cent political decisions

and 30 per cent economics.

“Agriculture, particularly food processing can create a lot of jobs, because we don’t need to import raw materials and it costs little or nothing to get food processed; we can process a lot of cassava and turn it into so many products, and this will create a lot of jobs for the people. “ To drive economic growth, there is a need for investment in infrastructure. Without improving infrastructure, there is no way you can expect growth in an economy, because industrialisation, which is an essential way of creating jobs in an economy, needs to be supported by infrastructure.”

He called for a reduction in lending rate in 2018, adding that this

would assist small businesses to thrive.

“Also, the cost of funds, which is very high, should be reduced and the only way to reduce it is to make sure that people get alternative financing through development banks like the Bank of Industry, Bank of Agriculture and NEXIM Bank, because commercial banks can’t give loans at single digits,” Enwagbara added.

The Registrar, Chartered Institute of Finance and Control of Nigeria, Mr. Godwin Eohoi, said to achieve the expected growth rate in 2018, the economy needed higher levels of private investment, adding that fiscal stimulus should be applied in the mediumterm through a package of spending to stimulate domestic demand and investment in the economy.

CBN rewards FirstBank’s fight against e-fraud

By Ezekiel Enejeta FirstBank has won two of the three awards in the keenly-contested Nigerian Electronic Fraud Forum (NeFF) Annual Dinner and Awards Night held at the Federal Palace Hotel, Lagos.

customers in every nook The awards prove that and cranny of the investment in security of country. customer’s funds does have its rewards.

Following the appointment of Dr. Adesola Kazeem .

Adeduntan as FirstBank MD/ CEO, FirstBank FirstBank FraudDesk management embarked emerged as the “Best on reengineering of the FraudDesk” and the “most The winner was bank’s technology, Cooperative FraudDesk” in generated through an operations and upscaling the Industry. the skill of its personnel online survey carried out by the Central Bank with security of its These are recognition of customer’s funds as key of Nigeria in the bank’s efforts in priority, given the bank’s partnership with combating e-fraud as well NIBBS. massive investments in as curbing cyber-crime, alternate electronic thereby frustrating all transaction channels and The bank with the forms of criminal activities majority of votes across technology targeted at its valued all sectors won.

January 2, 2018

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JANUARY 2, 2018

NEWS Cont’d from page 1 income investors to gain access to all the benefits of a professional investment manager whose job is to deliver superior return on a long-term basis.

Most mutual funds are open-ended investment schemes. This means that the Fund Manager creates additional units for new investors on demand, based on the Net Asset Value (NAV) per unit and the amount of money to be invested. . The Fund Manager is able to provide active liquidity for the mutual fund by creating new units for new investors and redeeming units from existing investors who want to sell units for cash.

“Mutual funds offer a range of benefits to investors including portfolio diversification, lower transaction costs and superior returns.

“The existence of a Trustee and Custodian ensures the safety of investments, as the Trustee ensures that the fund is managed in line with approved investment guidelines and the Custodian holds the fund assets.

“Most importantly, mutual fund investments are affordable for lowincome investors as some funds only require an initial investment of N5,000,” the report explained.

Although mutual fund assets in Nigeria have grown significantly in the last five years, its ratio to the country’s Gross Domestic Product (GDP) is very low at 0.33 per cent.

The latest data from the Securities and Exchange Commission (SEC) on the NAV of all registered mutual funds in Nigeria had shown that the collective NAV grew by 295 per centbetween 2012 and December 8, 2017, to N402 billion. Money Market funds dominated the NAV of mutual funds at 68 per cent.

“FSDH Research believes low-income FINANCIAL WATCH

investors can take advantage of the investment opportunities in mutual funds to create wealth over a long period of time.

“Our illustration shows that an investment of N100,000 in a mutual fund can easily grow to N1,083,470.59 in 25 years.

“This is possible if the mutual fund earns 10 per cent return consistently on a yearly basis,” the report added “Mutual funds offer a range of benefits to investors including portfolio diversification, lower transaction costs and superior returns. “ The existence of a Trustee and Custodian ensures the safety of investments, as the Trustee ensures that the fund is managed in line with approved investment guidelines and the Custodian holds the fund assets. “ Most importantly, mutual fund investments are affordable for lowincome investors as some funds only require an initial investment of N5,000,” the report explained..

TEF opens entry for $100m entrepreneurship programme

By Ezekiel Enejeta

provides critical tools for business success, The Tony Elumelu including: 12 weeks of Foundation says it is now intensive online training accepting applications for which guides business ideas that can entrepreneurs on transform Africa. creating and managing The programme, which a business; mentoring: a is in its fourth cycle, is world-class mentor to TEF’s 10-year, $100m guide during the early commitment to identify, transformation stages of train, mentor and fund the business; funding: 10,000 African $5,000 in seed capital to entrepreneurs by 2024, prove the concept, plus according to a statement access to further by the foundation. funding; and network The foundation said access to the largest prospective applicants network of African startcould visit its website to ups and TEF’s own apply before the global contacts.” expiration of the deadline The TEF Founder, Mr. on March 1, 2018.

Tony Elumelu, was The statement read in quoted as saying, “When part, “The programme we launched the TEF

programme and committed $100m to empowering Africa’s entrepreneurs, I knew we would create impact, but I never imagined it would be impact of this magnitude.

“We have unleashed a movement of African entrepreneurs – a force so strong, so inspiring, that I am confident will collectively transform Africa. We need Africa’s best and brightest entrepreneurs to come learn, grow their businesses and build our continent.”

“Our 3,000 alumni are already growing their businesses and improving lives.

Fayose’s aide quits, protests deputy gov’s anointing as successor

By Tosin Adesoji The Special Assistant on General Matters to Governor Ayodele Fayose of Ekiti State, Segun Akinwumi, has resigned his appointment.

Akinwumi had earlier served as Director General/Special Adviser on Procurement Matters before his redesignation.

In his December 29 resignation letter, Akinwumi did not state any reason for his action.

The five-paragraph letter reads: “I hereby tender my resignation with immediate effect.

“Sir, you would recall that on 24th October,

2014, you appointed me Director General/Special Adviser on Procurement Matters in your government, the position I held until I was redeployed as Special Assistant, General Matters, till today, December 29, 2017.

“I thank you most sincerely for giving me the rare opportunity to serve at both appointments. Please, accept the assurances of my kindest regards.”

But in a telephone chat with journalists on Sunday, Akinwumi said he took the decision to quit because the governor reneged on his promise to leave with his deputy, Prof. Kolapo Olusola, who had been anointed as the PDP governorship candidate in the state.

January 2, 2018

He claimed that Fayose had first told him and other aides to work for a former Attorney General and Commissioner for Justice, Mr. Owoseni Ajayi; and later, for former Commissioner for Works, Mr. Kayode Oso, as his successor.

Akinwumi said, “I am a product of establishment for the past 39 years and under the tutelage of Baba Awolowo. People were brought in under establishment, it was Baba Ayo Fasanmi that brought us into politics.

“Bringing somebody (Olusola) from nowhere, bringing somebody from the sidelines will not work.

It is someone within the system that we want in the PDP.

“Fayose should stop playing God in our party, let the national leadership and people that matter tell him not to play God again in our party because you cannot mock God. “Fayose had told us that he would serve out his tenure together with his deputy. No God has spoken to anybody about it, no one can play God, no matter how highly placed; and anyone that plays God will become an ex-person.

When contacted on Sunday for his reaction, Fayose’s Special Assistant on New Media and Public Communication, Lere Olayinka, said there was no reaction to Akinwumi’s claims since he didn’t state that in his resignation letter.

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NEWS

By Haruna Magaji The Nigeria Labour Congress (NLC ) has said that the failure and inability of President Muhammadu Buhari led government to address the infrastructural deficit and other related problems, especially in he oil industry has dashed the hope placed on the change promised Nigerians by the APC led government.

The congress said Nigerians have continued to be at the receiving end, with over 4 million Nigerians losing their job in 2017 according to statistics provided by the National Bureau of Statistics as against the three million jobs annually promised the party.

In his new year message to Nigerians, NLC President, Comrade Abubakar Wabba lamented that rather than work to create jobs and improve the condition of Nigerian working people and Nigerians in general, leading elements in the ruling APC government, like Governor Nasir elRufai, have been taking measures to further chastise and ruin Nigerians by throwing tens of thousands of workers into the already saturated unemployment market and wretchedness.

According to him, 2017 saw the working people, pensioners and other Nigerians facing series of daunting socio-economic and security challenges, “even though we had hoped that the year would offer succour for the masses of the people.”

Wabba said the deplorable economic situation in 2017 is aptly captured by the statistics recently released by the National Bureau of Statistics (NBS) which indicated that over 4 million Nigerians lost their jobs in 2017.

He said: “Against the background of the campaign promise of the ruling All Progressives

FINANCIAL WATCH

Nigerians losing hope on change promised them-NLC despondent group in an economy that even the well-to-do are groaning and struggling to survive. No wonder, our country is one of the worst, known for having many hungry people in the world according to the World Hunger Index report 2017.”

He stressed that in recent times, Nigerians have witnessed one of the worst shortages in federation, coupled Congress (APC) measures to further the supply of petrol in with additional government to create chastise and ruin the history of the three million jobs Nigerians by throwing payment of three country in spite of tranches of windfall, annually, this statistics tens of thousands of Federal Government’s (Paris Club debt from the NBS workers into the repeated claim that with refunds), states like underscores the grave already saturated the complete removal of and depressing situation unemployment market Kogi, Osun, Benue, subsidy on petroleum Ekiti, Bayelsa and of the Nigerian economic and wretchedness. several others entered products, scarcity of landscape in 2017.

2018 with huge arrears petroleum products “In the same vein, spanning up to ten (10) would become a thing of “Rather than work to despite the huge the past. create jobs and improve revenue that the states or more months of wages and pensions. the condition of Nigerian have received through Wabba said that the working people and the Federal position of the congress “Under these Nigerians in general, Government regarding the prevailing conditions, Nigerian leading elements in the intervention funds to situation in the ruling APC government, clear arrears of unpaid workers, pensioners petroleum industry has and their families like Governor Nasir elsalaries and pensions been that the crisis in remained the most Rufai, have been taking in many states of the the industry is due to the inability or refusal of our ruling elite to refine all petroleum needs in Nigeria, adding that Nigeria remain the poor education, and

By Cynthia Adigwe of life is the case of only major producer of predominantly stigma. people who are crude oil in the world A Psychiatrist, Dr depressed and because that depends on “People know that they Kenneth Uwaje, says the mortality is not so feel sad, bad, tired for no high, the illness persists importation of refined many depressed products from abroad. apparent reason, and people in Nigeria are for so long. they do not enjoy what not seeking medical He said “For us in the they used to enjoy. help due to “These are some of the Congress, and for misunderstanding, implications of not majority of working “They have negative poor education and treating depression on people in Nigeria, the thoughts of the past, stigma. the social setting, “ he hope placed on the present and future, and said. capacity of President they begin to feel Uwaje, who is a resident doctor at the hopeless, helpless and Uwaje said that hospital Buhari to bring about sometimes worthless, Federal Neurowas the safest place for positive change is being undermined by his even to the point where Psychiatric Hospital, people who were government’s inability they contemplate taking depressed to visit.

Yaba in Lagos, spoke to address the their lives, “ he said. in an interview with the News Agency of He said: “In Nigeria, we infrastructural deficit and other related The psychiatrist said that do not have the three Nigeria (NAN) on problems in the oil if depression was not Sunday in Lagos. tiers of health system industry, such as treated, it could lead from fully active. making our existing moderate to severe He said studies show depression with psychotic “Otherwise, the primary refineries work at that 14 per cent, optimal capacity by symptoms. which translates to healthcare centres refining products for about 22 million should be able to cater domestic consumption.

According to him, these people, are clinically for some to an extent, symptoms are associated then moving to the depressed in the with bizarre country. secondary and tertiary. “Not only is government unable to achieve this manifestations including for almost three years hearing strange voices “However, these now, but moving and seeing faces; but it people rarely seek “It is also, noncan lead to suicide. medical help; this is communicable and it is forward more refineries, especially modular founded on treatable. “ ...Continue on Page 8 “Overall impaired quality misunderstanding,

Why depressed Nigerians don’t seek medical help – Psychiatrist

January 2, 2018

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NEWS

2018 prophets and prophecies sovereign. Muhammadu Buhari’s friends said his ill “IN the inner recesses health was the sickness of the nation. They were of the mind,” says right. The country too was Cicero, “is divine ill. It still critically is. prophecy hidden.”

Friends of the president Right from the were out, doing their usual veranda of today, humanity wants to see permutations. Rats what tomorrow holds. competed for space with princes in the palace. Then Man loves sitting on the man came back and the shoulder of prophets to gaze at the well and all was quiet. “I future. This eagerness have never been this sick,” to see tomorrow today Buhari confessed, crossing is what has sustained off the spin that suggested Nostradamus and the he was merely abroad to rest and run tests. Then prophets. Sometimes writers get the “divine there was calm and a sigh of relief. These turned out impulse” to tell the a mere interlude. improbable.

Further tests took the Sometimes you do sovereign to London. A time travelling and very long absence and fake write. I did in news of incapacitation December 2016 took over. The lion was preparing you for the back, up and well again. shocks of 2017.

The worst was over. Then Can you remember reading this?: “…I see the year changed gear and drove straight into the a country in search of station of petrol scarcity health. I see a sick and Federal jobs for the nation begging to breathe. I see the lion dead. 2017 ended in despondency. What a year! in his sickbed. I see A brand new year starts other animals doing today and it won’t be a bad eye service, ‘working’ for the quick recovery idea to look again at the horizon. This is, after all, of the king of the the season of prophecies jungle. I see all and prophetic dances. And manner of medicines we are a very spiritual for the infirm people in this clime. So, sovereign. I see wolf and I see fox, rivals in what is there to look forward to in 2018? The a deadly game of country will live its power and strategies reputation for the scary. and stratagem and It will take the usual death. I see as each designs the end of the suicidal dance steps on the brink. The Kim Jong-Uns other standing on the of Nigeria will test their infirmity of the lion. I see deadly animals of greed scheming personal profits on

By Haruna Magaji platters of patriotism and loyalty to the The Corps Marshal, sovereign…” Someone Federal Road Safety said writers are Corps, (FRSC) , Dr prophets. The above Boboye Oyeyemi has was written here in approved the promotion of December 2016 about 685 Marshal Inspectors events that would and 942 Road Marshal shape 2017. And what Assistants, urging them to did 2017 say on those re-dedicate themselves to words? Was the lion duty. sick? Yet, 2017 The Corps Public prepared the road for Education Officer, Mr Bisi 2018, the year of Kazeem, disclosed this in grimmer realities. a statement on Saturday The year 2017 started on in Abuja. a note of hope and great Kazeem said the expectations. It soon entered the turbulence of Secretary to the uncertainties amid prayers Government of the and supplications for the Federation, Mr Boss health of the Mustapha had also

By Cynthia Adigwe

Political Nuclear warheads in the new year.

Nigeria’s crust will shift.

The country is a forest of great beasts. It will prove its mettle in the new year.

Lions will roar, move and fight. Elephants will dance and shake the forest. Heady Buffaloes will fight regal lions in battles of blood. There will be rumbles in the jungle.

You remember the Rumble in the Jungle, the historic October 30, 1974 boxing event in Kinshasa, Mobutu’s Zaire? That bout saw a former heavyweight champion,Muhammad Ali, knock out habitual winner, George Foreman in the eighth round.

Reviewers say the fight was “arguably the greatest sporting event of the 20th century”. For Nigeria and its politics, 2018 (not necessarily 2019) is the year to watch for rumbles and epic battles.

There will be governorship elections in

Ekiti and Osun states in The new year. One on July 14, the other September 22. These two bouts will set the tone for the real battle of 2019. Both will present war models that will define Nigeria going forward. There will be deceptions and desertions. Friends will become mortal foes hacking down reputations. Friends and foes will form new alliances. Ekiti will be a combination of the comical and the tactical.

Buying and selling, offers and acceptance wrapped in what Roman jurists called dolus bonus (good trickery) will drive the war. From the noise, smoke and fury of this war in Ekiti, a decisive victory will go to Napoleon. Osun will not keep its 2014 reputation of Napoleon’s Battle of the Three Emperors. This coming war looks set a blitzkrieg – “short, fast powerful

attacks” complemented by encircling, overwhelming speed and surprises. The state will be a blitzed field.

Napoleons and Hitlers here need prayers.

The iron dice of 2019 will start rolling from these two states and it won’t be funny at all.

This fact, in particular, makes the stakes in these two states to be very high for Abuja and Lagos and their disparate allies.

Successes in enterprises and wars incite imitations. And, all victories and defeats are costly and full of lessons. Generals know that their business is a life-and-death enterprise that demands very careful planning and deployment of brain and brawn. A composite model for the 2019 battle will be made by Abuja from the 2018 lessons in Ekiti and even incapacitation.

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FRSC Promotes 1, 925 Personnel, Urges for Re-dedication to Duty

FINANCIAL WATCH

approved promotion of the Zonal Commanding Officer of the Corps in Charge of Zone RS3HQ, Abubakar Ringim to the Superintendant Route Commanders, 93 Route Commanders, and 137 Deputy Route Commanders.

According to Kazeem, the personnel promoted to Marshal Inspectors include: 57 Deputy Marshal Inspectors, 71 Assistant Marshal Inspectors, 54 Principal Marshal Inspectors, 234 Senior Marshal Inspectors, 207 Marshal Inspectors I, and 62 rank of the Deputy Corps January 2, 2018

Marshal (DCM).

Mustapha equally approved the promotion of 298 officers of the corps, bringing the total number of the newly promoted officers to 1, 925.

The officers promoted included: 33 Chief Route Commanders, 34 Marshal Inspectors II. He said the Marshal Assistants promoted include: 45 Deputy Chief Road Marshal Assistants, 81 Senior Road Marshal Assistants, 146 Road Marshal Assistants I, and 670 Road Marshal Assistants II. Oyeyemi also commended

the performance of the Newly promoted officers and Marshals of the Corps, and urged them to put in their best in the discharge of their duties as they assume higher responsibility in their career.

The Corps marshal urged them to be of good character as well as work hard to achieve the mandate of the Corps which was aimed at combating road accidents by 15 per cent and fatality by 25 per cent yearly.

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FINANCIAL WATCH

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JANUARY 2, 2018

NEWS

Political spending may threaten Naira stability in 2018 – ABCON

Cont’d from page 1

By Haruna Magaji

“Roadmap to Leadership Initiative”,where the bank is focused on becoming a force in the banking industry by leveraging its robust Digital Channels to drive financial inclusion for the un-banked in the different parts of Nigeria – urban, semi-urban and rural areas.

Mr. Kie emphasised that this new product will also enable the bank meet its Group Target of 100 Million Customer by 2020, of which 40 Million will come from Nigeria.

Also speaking at the launch Carol Oyedeji, Executive Director Consumer Banking of Ecobank Nigeria reeled out the benefits this account type offers.

They include simple account opening process without any paper documentation or stringent form of identification; ability to immediately do transactions from the account and withdraw cash through the Xpress Cash via Ecobank Automated Teller Machine (ATM) or Ecobank Agent locations.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), has warned that spending by politicians ahead of the 2019 General Elections may threaten the stability of the naira.

Gwadabe told the News Agency of Nigeria (NAN) on Sunday in Lagos that the propensity to hoard dollars now, to be spent during political campaigns, was not new to the nation’s political history.

“Political spending may affect exchange rate stability in 2018.

“Electioneering starts early this time and the tendency for people to hoard the dollar now, to be spent during the campaigns, was not new,’’ Gwadabe said.

The ABCON chief, therefore, called on the regulatory authorities and security operatives to ensure that currency hoarders and speculators do not leverage on the 2019 elections to erode the gains recorded in the nation’s foreign exchange market.

Gwadabe noted that the Central Bank of Nigeria (CBN) had spent about eight billion dollars in a

series of interventions at the FOREX market, leading to the flattening of rates across board.

According to him, Bureau De Change (BDC) operators, as critical stakeholders in the FOREX market, are committed to playing by the rules in ensuring that the Naira remained stable.

NAN reports that since

FRSC, Police, Fire service avert disaster on Niger Bridge situation and fire service, hundreds of people Rescue efforts by men of trapped on the bridge would have been Anambra Fire Service, Police and Federal Road consumed by fire.

Safety Corps (FRSC) on Sunday prevented a fire “The incident caused disaster at the middle of traffic on the bridge as the Niger Bridge linking motorists had to wait for about two hours before the Delta and Anambra. smoke was put out and the vehicles towed away by The News Agency of personnel of FRSC,” the Nigeria (NAN) reports source said. that this followed a head-on collision of two Confirming the incident, articulated vehicles laden with petrol coming FRSC Sector Commander from both sides of Asaba in Anambra, Mr Sunday Ajayi, said that no fire or and Onitsha on the death was recorded in the bridge. accident, adding that An eyewitness said the traffic had returned to normalcy on the bridge. incident occurred at about 10 a.m. at the ever “There was an accident busy bridge. caused by break failure of According to the source, one of the tankers but the two vehicles have been one of the articulated vehicles started emitting removed by our tow truck and there is now free flow smoke which triggered panic among commuters of traffic on the bridge,” the commander said. plying the bridge.

By Ezekiel Enejeta

“If not for the prompt response of men of the FRSC, Police, who used helicopter to monitor FINANCIAL WATCH

He advised vehicle owners to always keep their vehicles in shape to meet minimum safety standards during accidents.

Meanwhile, the National Publicity Secretary of Campaign for Democracy (CD), Mr Dede Uzor, has urged the Federal Government to expedite action on the second Niger Bridge to avert such dangers.

“This has further reiterated the need for the Federal Government to stop playing politics with the second Niger Bridge and rather expedite action to save lives.

“Nigerians will see the completion of the second Niger Bridge as one of the dividends of democracy under President Muhammadu Buhari’s administration,” Uzor told NAN in a telephone interview. He commended He advised vehicle owners the FRSC and Police for ensuring free flow of traffic to always keep their and security of lives during vehicles in shape to meet minimum safety standards the Yuletide in the state. during accidents.

January 2, 2018

February, when the Naira exchanged at N520 to the dollar, the CBN had intervened aggressively to ensure it remained stable at about N360 to the dollar.

Efforts by the CBN and critical stakeholders like the BDCs led to the convergence of rates between the parallel market and the BDC segment.

Buhari to broadcast to nation on Monday

By Ezekiel Enejeta President Muhammadu Buhari will make a national broadcast to the nation to mark the New Year on Jan. 1, at 7.00 a.m.

Cont’d from page 6

The President’s Senior Special Assistant on Media and Publicity, Malam Garba Shehu, disclosed this in a statement in Abuja on Sunday.

He advised television and radio stations to hook up to the network services of the Nigerian Television Authority (NTA) and Radio Nigeria for the broadcast.

refineries which can be built between 12 and 18 months are required to address the reoccurring challenge of fuel scarcity and price hike in Nigeria and stop the exploitation of ordinary Nigerians.

The inherent corruption in the system has made this impossible for more than three decades and should be addressed headlong.”

It is our belief that the passage of the constitutional amendment to guarantee Local Government autonomy Page 8

FINANCIAL WATCH

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JANUARY 2, 2018

NEWS

Stockbrokers, investors’ apathy grounds Direct Cash Settlement

By Cynthia Adigwe BARELY two years after it was introduced by the Securities and Exchange Commission, SEC, and Nigerian Stock Exchange, NSE, the implementation of the Direct Cash Settlement (DCS) initiative has been grounded by increasing apathy from stockbrokers and investors.

Meanwhile, shareholders have accused registrars of frustrating the electronic dividend (e-dividend) registration, by not implementing the edivided mandate and merging of multiple accounts even after investors have registered for the edividend.

Consequently, they requested that the SEC should allow continuation of the free e-dividend registration exercise, which closed effectively today, and merging of multiple accounts, claiming that most registrars do not have the capacity in terms of manpower and technology to meet the deadline.

While the e-dividend was introduced to address the increasing trend of unclaimed dividend in the capital market, the DCS was part of the ongoing initiatives introduced by SEC and NSE to protect investors and eliminate fraudulent activities in the Nigerian capital market.

It took effect from January 4, 2016. It is the direct payment of proceed of sale of shares/securities into an investor’s nominated bank account.

It is a process where cash proceeds from trades executed by stockbrokers on the Exchange settles directly into investors’ bank account. It starts when a client gives his broker the mandate to sell his or her shares. Once those shares are sold, payment is made directly into the client’s account.

This is in contrast to the old practice where proceed from sale of shares securities is paid directly into the stockbroker’s

account and stockbrokers then deduct transaction fees and remit the balance to the client’s account.

Commenting on the 2017 performance of the stock market as it relates to the DCS initiative, Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie said: “Our stockbrokers are not helping matter on this direct cash settlement.

They still prefer the indirect payment settlement. My recent transaction with them showed that they prefer the old system to the new system. They are supposed to inform me to supply my account details to key into the direct cash settlement, but they did not.

“Also, the NSE and SEC need to carry along the entire stakeholders when introducing new measures and products to the market.

There should be proper and enhanced enlightenment on this new initiative if its objectives are to be achieved. The NSE needs to up its game. In most cases, retail investors are ignored and are not involved on issues that affect the market.

In the same vein, National Coordinator, Proactive Shareholders Association of Nigeria, PROSAN, Mr. Oderinde Taiwo, said: “The DCS initiative is good, but most local retail investors are not much aware of it let alone its benefits. The regulators, especially the NSE do not parley and regard us as major stakeholders. We are the ones that sustain the market when it crashed in 2008 because it is our own; we do not have alternative market, but the so called big investors (foreign and institutional) left the market for other markets.

So, there is need for enhanced enlightenment by the regulators so that

investors will key into this laudable initiative.”

Commenting as well, Managing Director, APT Securities & Funds Limited, Mallam Kasimu Kurfi, said; “The Direct Cash Settlement still has a long way to go because most of our local investors want to have cash before or immediately after disposal of their sharers which the system does not allowed. Only few wait for the Transaction Date plus three working days (T+3days). There is need for more enlightenment.

On his part, Managing Director/CEO, High Cap Securities Limited, Mr. David Adonri said: “Direct cash settlement by CSCS for sales made by investors is wonderful

development. It is still at its infancy of implementation but those who are already utilizing it can attest to its numerous benefits.

Shareholders are hereby encouraged to enmbrace and key into it without further delay.”

Forces against Direct Cash Settlement

2018 prophets and prophecies Cont’d from page 7 Political parties are organic beings. The APC and the PDP are entering the new year gasping for breath. They are big, they look strong but they are very unreliable. They both suffer brain hemorrhages but their minders live in convenient denial. Only quick, adequate attentions will save them from fatal convulsion in the new year. They may, in fact, end up atrophied soon before the year reaches its noon. And just as the FINANCIAL WATCH

American NASA discovers new planets almost everyday (some of them earth-like and within the habitable zone) so will new political parties come out to challenge the bumbling big two. Wailers wailed because some dead persons were on the list of President Buhari’s December appointees in 2017. They should be ready to wail at the resurrection of one of the parties that died so that the APC could be born.

Specialists at waking the dead have almost completed the rituals. The dead will come back to fight for a repossession of

its inherited widow.

For Nigeria, the new year will be a year of great betrayals, deception and surprises. The year will distinguish thinking godly thoughts from embracing heavenly virtues.

Manipulative gods and heroes will increase the pace of their descent on the popular psyche. Governors and governments will unleash weapons of mass deception on the people on a scale never seen before.

Broken hearts, broken heads, broken minds, broken allegiances and broken promises will strew the landscape. Government and their partners in December 29, 2017 30, January 2, 2018

business will lay siege to the masses as the fight over earned and unearned subsidies will get messy. We should pray against many being stranded on the highways of the new year. And seers who remember the past would insist that breaking vases of hope wouldn’t be news again.

They will remind us that kisses of disappointments birthed the nation; that falling and rising have been watering Nigeria’s stunted growth from birth. And that disappointments shouldn’t tickle anyone

again. They will remind us that the overcast skies of 2017 were seen as very normal in the years before. So, there will be very many usuals in the new year. The country will maintain its track on the orbit of hope, disappointments and hope. The new year won’t be just about grim occurrences. There will be interludes of mirth and laughter.

May God lift the siege of elite greed and wickedness on the nation in the new year.

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JANUARY 2, 2018

NEWS

Kachikwu: FG to Review NNPC’s $6bn Oil Swaps

traders whose failure to meet their petrol supply Apparently scandalised obligations plunged the country into the fuel by the acute petrol crisis. scarcity, which marred Recall that had the the Yuletide celebrations, the federal scarcity was caused by some of the participants government is set to in the DSDP scheme, review the $6 billion previously referred to as Direct Sale-Direct offshore crude oil Purchase (DSDP) contracts of the Nigerian processing agreements (OPAs) and crude-forNational Petroleum products exchange Corporation (NNPC). arrangements, who The objective is to imported diesel for blacklist some oil

By Cynthia Adigwe

NNPC in NovemberDecember instead of petrol as stipulated in their contracts.

Speaking to our reporter on the fuel crisis in an exclusive interview, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated that some of the oil traders failed to deliver petrol to NNPC due to either lack of capacity to deliver or for

tax relief to boost the capacity of marketers to import petrol on their own.

Kachikwu said the federal government would review the list of the beneficiaries of the DSDP contracts to ensure that those companies that breached their contractual agreements would not benefit from the contracts.

Kachikwu said: “I think the immediate cause of this (fuel crisis) is the increase in the price of crude, and then a lot of deliveries at obviously a loss that NNPC is doing profiteering reasons. just to keep the nation According to him, the going – also not the fault failure of the companies of NNPC.” to meet their “That is one of the things I contractual obligations will be developing and try to caused the fuel crisis, see my principal (President which was aggravated Buhari) obviously in the by the high cost of coming days to address the long-term problems. crude oil in the “Final one is that the international market. refineries should work. All The minister stated these will fall into that in order to avert insignificance if the future fuel crises, the refineries are up and federal government running. And we are working would explore support hard to begin the refinery mechanisms, by way of repairs.

CBN, NeFF project tougher year for e-payment fraudsters

By Ezekiel Enejeta The Chairman, Nigeria Electronic Fraud Forum (NeFF), ‘Dipo Fatokun, has predicted a tough year for electronic payment (epayment) fraudsters.

Fatokun, who doubles as the Central Bank of Nigeria (CBN) Deputy Governor, Payment System Department, said the forum would ensure that activities of e-fraudsters are stopped before they happen.

Speaking at NeFF’s end of year party held in Lagos, he said NeFF’s efforts in 2018 will be aimed at further securing banking channels, raising awareness on fraud controls and deepening collaboration and partnership with both law-enforcement and telecommunication stakeholders within and outside the country The Forum,he further explained, had in the last six years of its FINANCIAL WATCH

operation, embarked on several industry defining initiatives backed by three major circulars that have emanated from previous deliberations of the forum.

Such initiatives include implementing a two-factor authentication for internal banking processes, instituting regulation for card present fraud in a nonEuropay, MasterCard and Visa (EMV) environment, and creation of fraud desks for effective e-fraud control.

“In order to raise the bar of our collaboration effort, the NeFF also led the industry on a scheduled visit to the Nigerian Computer Emergency Response Team (ngCERT) facility coordinated by the Office of the National Security Adviser to the President, where the industry was enjoined to utilise the facility in bolstering its fraud

prevention efforts in a more proactive, effective and efficient way,” he said.

“We have thus far restricted the activities of electronic fraudsters in Nigeria, cutting back on losses suffered for a third straight year. In the coming year, we will ensure that not only fewer losses occur but the inclination to attempt will also wane,” he added.

Fatokun, had earlier said the NeFF will be partnering with the Nigeria Communications Commission (NCC) to check e-fraud in the country.

Fatokun revealed that NeFF also organised a stakeholders workshop on Cybercrime collaborating with Technology Advisors (ICT Lawyers/Consultants) with theme: “Tackling Enforcement Challenges Under The Cybercrime Act” to ensure success of the partnership.

He said Subscriber Identification Module January 2, 2018

(SIM) swaps and recycled SIMs have posed a new challenge in Nigeria’s space, with subscribers constantly being inundated with messages and calls aimed at phishing personal banking information from the unsuspecting public.

“It has become important to partner with the telcos which can assist us in probably ending this dimension of fraud.

Users of financial products need to keep payment safety buttons on top of their mind at all times. We hope that our members will show the much needed cooperation when the time comes for us to jointly engage the public and push our message to the forefront of payment conversations alongside convenience and speed,”he said.

The workshop, he said, attracted

stakeholders as defined by the Act from the Presidency, banks, telecommunication companies and the Nigerian Stock Exchange with the Governor of the Central Bank of Nigeria, Godwin Emefiele who was represented by a Deputy Governor of the apex bank.

“The workshop was able to issue a 10 point communiqué which was delivered to the representative of the Hon. Minister of Justice and Attorney General of the Federation for further action. I want to assure you that with your cooperation, we will not relent in realizing the points that have been birthed from this process in order to create a safer operating environment in our payments system,” he said.

Also speaking at the event, CBN Deputy Governor, Operations, Adebayo Adekola, said the Nigeria payment system and banking security have improved since the NeFF creation six years ago.

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