Issuu on Google+

ww w.b usi ness dayon l i nc.com

NEWS Y O U CAN TRUST

Osun free hOi" ride excites Easter

to succeed when emyo!le is in charge

holidoymoke"

No police retiree ca{»tured in offshore biometric trips

GDP rebasing to make Nigeria 30th largest economy, investment I destination PATRICK A1\JANYA &

- N140.23m payment voucher missing exm.iIe forpotic:e rerirees, desaib-

BAOEJO ADEMUYlWA

damnJng" repon on the

Inghas.fraud. The Abdulruhld Malna· led PelUton Rdonn 1Uk Team took N140 million &om the Police PelskJn PUnd for bkxnecrIc capcuring or police retirees in the DIupora.

ofI&bonobktmt:Uicdatac::apnuins

ThecountriesvtshedlncludeSoulh

FE ton

udI

~~~

Auditor-Genual for the Federation have Jiven •

Afrk::I.Ghana, theUnl1ft:l1oln£dom. as weD as New-Yod;. and Manta In theUnitcdStalel. In therqKll1 ~OAuGFI L1SD/POL.PEN{VOL.l/15 and signed by F.N Anyanwu. director. ~ )udidaty and Securtty ~tbe.udiIDBA)'theirevai.

AFEGOPYEMO uationoltheexedseshowedthMtt ~'3S pwpoedesIand had no~. dYes. Theaudit~hasbeerlieDl 10 the pl!'I"IJWIeI11 secretary. PoUc:e AfIain ~ the finance minisuy andtheofflceoitbe l ieadolSenrk::e. -An eYaluadon of the biometric: Conlin.uesOI'J PG&e.f

.r::;-• •••••• "",;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;:;-.;;;;;;;;;;;;;;;;;;::;;;iiiii. . .O'===;;;;;;;;o;;;;=-.;;;;;;;;;;;;;;;.

r

;;;o'--- - -

-

N

I

IBerta" upected reba,-

Ins orlts Grou Domwlc Product (COP) Ibis year, to beller renl!Cl the flructure of the economy, may catapult ilto the 30th 'allest economy In the wortd. &om Iu Cl1l1'eOt 40th posiLion, accordJng to BuslnKlDa,

lindlngs. Thl. will make Niserl. an Increasingly Investment destinatJon and boost consumer s iocks with the potential Increase in GOP pel capita. Mon Bovernments overhaul GOP calculations every f\!W)'eus to renea changes In output and

consumption, such as mobile phones and Internet ~, but Nigeria has nOI done so since 1990, suggesting thai the previOU5 GOP fnmework undeTHtlmafed economic activities. When Ghana', GOP was rebued In 2010, the ,in of lu economy w., found to be 60 percent bigger than prC'VIously recorded, S31 billion, compared to S18 billion, Nigeria 's current nominal GOP for 2011 is S247 billion, according to data [rom the International Monetary Fund (lMF), .nd • ,!milM 60 percent rise would bring 1110 $395.2 billion, making it the 30th larsesl economy In the world, u .t Ihe end of 2011 , fUll behind South .l\frica ($422 billion), AU' tria ($425 billion) and Argentina (5435 billion), The rebuing would alw entrench Nlgerl.', pOSition as the l -R Ngoz!()k(qo-...... "....,of&nano., P.WObi.~. AnambnI~,

1fuoU~ ,

c:human. FIRS and SMrnsudOen lJIm.n, ~of

~ ! ~ at"NabonalEc:ortCII'I'IICCoundI~.,~

ConlmUl'.S

on

~4

Planned rice mills, cassava plant to cost 1.2bn _.,.",'5.,._""'_ """".....,."""'-,,......,. _"""""" __ "., of FE, ......"""""" ...... """ ........ ONYlNYENWACHU~

sabIIhans the 100 Ib miDI and 18 hiGh quahty caas;l\411

processing plants be. p~ by the FedenJ GoYl"mment to boost production and ~ vaU: ct-. wi! <XIII about $1.2 blruon (N189.6 billion).

Aldnwl.nnlAdesiM.~ikUerofA«-

~klabolaS514m111kln

ric:Unft. baafDld Bu!iIneIDay

(N85J.2 mIIbl) ",ijch "'.. be rIIiIed

NitJeda ~ in rice produc.

On thr rice milk which haw> aI

dwuBhJCM'ft!ip1 __ to~

10 mlIaI d..e 2.1 million meo1clOOSof

the project which wUl be basically prh_ seaor-dnwn.

"",,'-'''-by'''''-''

the lr.lr1SbmMion programmeisalso

gownwnent has sip!d • Memoran-

d6caDytheChina~1\md,

ntem1Jlsand~pbmsn­

to rep!:aupto40peternofd.ev.'heat

v.tich t.d eJpreIIIIil'!d Ir1RftIt in up ., 50 pem!!II oflhe oaI sum. CUofthealllOl.R.lhqDwnvnent

lildwsane pan oflhe Feder.liGcMmmenlslrnn5ilrrnadon aaion plan b

, dum m~(MoU)Wlth the 0Dnete compames that ",ill be!

~1Ohlm.lt*Ct.*wi!ro

me

be borne by ~ alone., bur by equtry inYesIon kl Ojna, spe-

~wttilJ*1Iy.eebIOn.tr

-.-.coundI(FOC)._,,",

with CISAW ~ through ~ andiec:tnoe'-aluechalnbCMS<M,b

_""'_of""'_ Conluwes on

Prl~"


4·INEWS Planned ricE mills, cassava plant to ... ContinuN (rom Page J bdll!CJ:UIby. lienoaed!hal:!he mOoisuy hasalso o:lOCbkd ......,.,ikttwithIhr.Bank

oC_(BoI) """"" BoI ""' ... Bank r#. Agriculture have 10 provide the ~ b the prh.'3IeMXll"IO ~Iho&emills.

Thr MoU is IKsbDy an aIIlIIlF" menllIS ., how many ~ d ~ nUlls !he

Ollnese fhms will be able to malrz OYer the period cl time. KOlnq 10 the minisre; who also noud !hat ~ pbnnedmilswilcnmeinuapential ~tII all olthcm ~~ <MI"1be nell. 24 monms.. "Thalli ~ J Will on d1Il m.i5Isicx1 10000000IDbelUn!:d1ar_an~

Ow iounsl r.R. ~Iime funding that can aHow the privati! SIlIC:IIX'b.:quft dxR~.:Jdt­ tbefiJII~lOmiU alIlberice thai we are cwrentty Importing;" he dd acx:tiS5 10

-.

NoIir1; chat their mission ID China

pnx:e5I!iIOfS,.

wasqUirinsttumenlal in theprtJgJCS5 m.de., far In the$e pn¥dI, he elpbioedw.-wtmhashappenedsioce 1halimeontbepmdis~haw.!

r.:nsified0l.lrW0l't0nenvin:Jnmenlal impact asse5I5Il'leDI. we iJ;M ~ \e)' ha:n:l1D tty 10 idendfy where !he lites are b ~ !he pIanrs. both b dII!: riDr: mDIs and the h9I qualily ca5IS3'o"allaw- plane.<

AdeIina disdoaed thai he has had di9cussions~iththeSUdegow:moB.

theNDJnal.Fan:micCDuocilmeet-

"""".-

thecornpoQleolthenadon's~

He nored thai sirIc:e the laJm:h cl

ca!il!ia\o'a bread. the Presidendal Villa 1ast}'e3t cassavaftourisalreadybeirl! used by some baRrs in lhe CXIUI1tt)'

ro._

He .spedfialIy DOled dw -me wt1k:h is the largesl baker ol bread In counuy has just swted CXJI'ru1ler-

n.s

-,....,...,._...

., muslldl )Q.I dw dry ~ 10UY

Cldled.l~loIIoOerIersrrom

parddpaIe and 6nd pn.'ale RC:am" In theirOWO&Clle5lhatc:anacquiresame cllhole lice miD$" hesaid. On the cassava prn;ect. Adeslna iobmed that he bas aIrmdy SCI. up • grtq) made up 01 nurridcrists. bx:I

the bread Is less expensiw: and it Is aauaDy more ru:riOOus becIusIe ~ recently. I launched the three provitamin It. varlccies ofcassava 10 IIDow

GDP rebasing to ...

USlOproctSISthalCIS5Ir\71wilhviramin It. in h. So you areaauaUy~as­ s:Ml thalhasvitaminAlniL 10 kispxl

Sf!(:ond largest economy In Africa, makl.ng It likely to surpass South Africa as early as 2014. Yvonne Mhango, analyst at Renaissance Capital (Rencap), said: -If Nigeria's GOP is upwardly revised by the ume magnitude as Ghana's WlIS In 2010, 60 percent, theo we can expect Nigeria's economy to surpass the size of the sedately growiog South African economy. as soon

bnuo:tdan~

The minisrernoted thalthetidehas ~ and wp Iku"miIls.:ross theCD..U1llYlObuyhodliitr.V\5bmalion plan on CIISISlM by ~

~thiscassavaa:mpostrebmd.

andstop~kl\\o~twch

They ~daoe 10 pera:r-.. they h2Ye done 20 pea:nI. JO pm:ml and !hey are ~ on 40 pera!I1I z¥'d: row, eitberwith ~ wt.e. gndn «",ith rompor;ire Ib. ol CI!i5IMI md

has OYer the years destro)oed the naDon's own market fOr high caumt

- -""""'-

~ moIlolwho~ InCerestIn p.gthdrSUlleliID pmtidpIIIe in the

"...,...."..

the Dour miUcrs and !he

....... ro"-'" recipe ro.

v-m

~They~abostaned~

IdndsclposD'ies. aI made out dhtWI

-u-urc wbm is the Iargesl baker In the crumy has p1I!! 0CIIllmerdal wiIb IheiT bread. and pastries, illeDs )'00 thai oorpolicy isVoUldngand the COlt 1& much kM<er !han the whole

......-.

.. NiF:ia bas • )eM: of poor- peopr.

bu;whid:JcaJ~beused

lO rqJIaoe the wheal -we wII anioue to talk. 10 tbmI (tbellourmlls). but ourresolveis~ finn, thai. dI3l poIk.y has 10 work and lhey canooI lmdennine or saboIap that effort 01 ppw:rnmenl And I just warn to be \a)' dear that this is IlOl

__""'-

...fcw_-_Jua ... __ N¥Da is bimPthan the irmaGoi.

~ wtr..1rm!his 00WJtty and

makinsIrCDey.- he fiJrther-wamed

Contitluedfrom Page I

as 2014: Yvonne Mhango also notes in her research release that a blBSer GOP would take Nigeria ',consolidated tax revenues as a peroentasc of GOP down to 17 22 percent from Its current1evel 0(25 percent and lower than the average for sub-Sahara Africa , Implying room forlmprovemenL Other macro-economic radol will be affected too. On the posi tive side. Mhango predicts that Nigeria's public debt to GOP ratio - already lower than most countrie$ In sub-Sahara Africa - will fall to 10_5-14.5 percent, from 17.3 perceJU at the end of 2011.

No police retiree captured in offshore ... Contimml from Pdge I datacapturing~seschedukd

for fi\'e ddes outside the shores of Nigeria. showed that the programme wu III-limed and not property planned and $tI'UChll"ed to achieve any particular purpose and or objecdves~ The office of the Audltor~­ eral of the Federation based Its assessment on five deductions, Including improper planning of the assignment in the dlaspora, no police n:llree captured In the dlaspo~ no payment vouchers for payment totaling NI40.23 million and that payments totaling N 130_02mUllon were made before issuance of memos concerning such dl.5bursements..

ReganIlng impropa- planning. the auditors noted that the PoUce

Pension Office had never at any point in recent years, lent officers ~ for verification exerd~ *There were no documenled retircc:s in Diaspora recorded In the PoHce Pension otrla' to warrant such trips. More KI. tbe letters sent to the embassies with the list of officers nominated for the biomMc ex.erd.se In thosecounlries ~ haphazardly compiled.. For example, the pas5pon oumbel'S of the officers wen! not indlcatcd and single names were used In the letter to die ernbass&es and die nominee5 bad no record 01 retirees to caprure~ The IIIJdil reportwbich noted thai no police retiree was capnued in the exercise h1 the diaspora. added

d:w two out of the fiw! teams visited Ghana and South Africa "'J1oweYer; repon of each of the learnS showed that no siJWe police I1!tiree l\lIlN!d up for the exerdse. despite roncened efJon by the NIgerian high roltUllisskMltn In those

.....

"""'

~ieanwhiIe,norepon ....'aSmade av.1ilabie to melnn:speao(d1eother lhreecenter5 inAlJanta,lDndon and New Yori( the report st3ted The audit report abo SIlUed lhal the payment did not foUo..... office procedure ....flere a wucher is raised bebe paymeru. -Payment YOUdten wetenDl nUsed in suppon oClhesaid payments totaling NI40,238.081 and they were noc teaKded In the

---

1he audilOfS who reque:aecl the

pension team lOezplain the anomalies.observed that the motive behind

the payment ....'M RO( the biometric. exen:ise, as the payment had Jor18

been made before the memOi on rhe_ "FIve of the memos in respect of the Diaspora biometric exerdse were raised on 6 August. wtille the sum memo WIlS raised on 9 August. 2011. All the mem05~ ap. proved by the Chalnnan, Pension TlIIISL Team on the 9 AUgust. 2011. -Aowever It was observed that five of the payment mandates for amount totaling NI30, 029,280 raised in respect of these approvals were signed by the signatories on the 13 JuJy2011.1he said paymenu were received by the bank on 14 July 2011 a nd payments errected same day, Indica ling that the paymenU occuned three weeks before memos were raised and approvals obtained:

Samir Gadio, emerging markets sU'ategiSt at Standard Rank. London. also Informs in a note to Buslnessoay, "Obviously, we can only speculate at thilslage on the magnitude of the upward revision In Nigeria's output and whether the other shoncominss In the wstJng GoPestimales will be addressed, the ImpUcation of the rebasing ls thai GOP pe:rcaplIa will subsequentJy Increase, making Nigeria a more attractive Investment case and potentially boosting consumer stocks.That said, Nigeria's GOP per capita cunently al $1,615 still trails those of many other econo· mles on the African continent and wblle the rebuins would be an overall positive, It could also lead 10 lowe.r economic ratios_ Samir Gadio explains (urther, that on the 6scaJ side, the revenue-to-GOP ratio will decline, but 10 will the overall flSC21 posl. don of the SovernmenL Continuing. he said, the current accouot surplus wUl also decrease, which may not be posldve.ly perceived by offshore accounts looking at thecounuy's external dynamics, especially as the cunent account balance has already been substantJaUy downsized In recent yelU'5 in the official data. due to an unexplained Increase in Imports_ The new GOP figure Is expected any moment (rom now_ Yernl Kale, Statistician- General. Na· donal Bureau ofStatistlcs (NBS), said 10 an Interview in January, "We Brestlll worldns on II. Unfortunately there was a lot of ....·ork that should have been done during the period of the fuel subsidy strike, so we have bee.o set back byacouple ofweekJ. We are s,1II hoping lhal we might be able to complete this before the end of the quartet, I was hoplns to release this number by the last week. 10 January~


BUSINESSDAY, 09 APRIL, 2012