Naira Rebounds As CBN Permits Travelex To Commence Dollar Sales To BDCs

Relief appears to have come the way of the naira, which had been under attack on the parallel market FX in the past few days as the currency strengthened to N473 to the dollar yesterday, from N475 to the dollar, it closed the previous day.

The appreciation of the naira followed the implementation of a new arrangement between the Central Bank of Nigeria (CBN) and Travelex, a global foreign exchange (forex) dealer.

Also, on the interbank FX market, the spot rate of the naira climbed to N307 to the dollar yesterday, compared to the N311 to the dollar it closed the previous day.

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Clearly, the appreciation of the nation’s currency was buoyed by the announcement yesterday that Travelex would today start disbursing $15,000 to each of the 3,000 registered Bureaux De Change (BDC) operators.

President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, who disclosed this yesterday, said with each of the 3,000 BDCs getting $15,000 each, a total of $45 million will flow into the system.

He lauded the CBN for authorising Travelex to take responsibility of disbursing huge dollar inflows from the diaspora estimated at $21 billion annually to BDCs.

He said the development, which was an improvement from the initially approved $10,000 weekly, would deepen dollar liquidity in the system and strengthen the naira against the dollar.

Gwadabe, said the experience and integrity of Travelex would be key in getting the dollars down to BDCs.

He urged all ABCON members and BDC operators, as a matter of urgency, to visit the apex bank’s branches in their respective zones to update or validate their en-cashers and signatories mandate card for Travelex biometric data capturing.

Gwadabe said the Travelex biometric data capturing would enable the BDCs access the International Money Transfer Operators (IMTOs)/Travelex dollars window.

He said remittances had direct positive and significant impact on consumption, investment, and demand in the country as it could be used to address short-run output shocks, and even long run growth. He said remittances tended to be stable and could increase during periods of economic downturns and natural disasters.

He commended the CBN for reaffirming the country’s commitment to building an enabling environment and level-playing field for international money transfer services to Nigeria.

He said by increasing the number of IMTOs from three to 14, the CBN under its Governor, Godwin Emefiele, would set the economy on the path of development in the medium- to long-term and also, restore integrity in the international money transfer business.

Gwadabe also commended the CBN’s efforts to strengthen the BDCs to meet the forex demand at the retail end of the market, so that they would continue to enhance employment generation in the country.

The ABCON boss was optimistic despite the challenges facing the economy, the CBN and BDCs would continue to work together and find sustainable solutions that could help the country wriggle out of the ongoing forex crisis and achieve full economic recovery.

He pledged that ABCON under his leadership would continue to ensure that purchased funds are sold to end users and on eligible transactions only, while weekly returns on purchases from the banks will be rendered to Trade and Exchange Department of the CBN. He further promised to ensure strict compliance to the provisions of the anti-money laundering laws and observance of appropriate KYC principles in the handling of forex transactions.

ThisDay

'Stubborn' Naira Defies All CBN Solutions, Sinks Further Against The Dollar

The Nigerian currency, the naira has yesterday sunk further to N375 to a Unites State dollar, defying every solution meted out by the Central Bank of Nigeria to strengthen it.

in the light of incessant fall of the naira, some economists on Wednesday advised the Federal Government and the Central Bank of Nigeria to review their policies and introduce measures that would turn around the dwindling fortunes of the nation’s economy.

They spoke against the backdrop of the persistent fall of the naira against the dollar, with the local currency exchanging for 375 against the greenback at the parallel market on Wednesday; the imminent economic recession; and the spike in inflation to 16.5 per cent in June.

The Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, who noted that the global fall in crude oil prices had made the nation’s oil revenue to nosedive, said there was a need for the Federal Government to seek foreign exchange from alternatives sources in order to cover for the shortfall.

He said Nigeria and its economic managers could not afford to fold their arms and allow the situation to get worsened. Rather, he said efforts must be geared towards implementing policies that would fight negative growth and inadequate liquidity at the interbank market.

Teriba said, “There are a number of things we can do as a country to boost our forex supply. Just the way India did some years ago, we can tap Nigerians in the Diaspora to contribute forex to save the situation at home. We can’t say we have done all when we have not done this.

“Billions of dollar can be raised through this. Saudi Arabia has just raised billions of dollars by issuing an Initial Public Offering on government agencies. Nigeria can raise billions of dollars in Foreign Direct Investment by issuing IPOs on government monopolies in critical infrastructure like rail, power transmission, oil and gas pipelines. There are a whole lot of things we can do to save the economy.”

A professor of Economics at the Olabisi Onabanjo University, Sherriffdeen Tella, who emphasised the need to stop the speculative attack on the naira, said the Federal Government needed to review its policies and boost local production.

He said, “All attempts must be made to increase local production, especially food items, and reduce importation of such. These, coupled with resistance to price hike, will keep prices down as the economy picks up gradually from reflationary economic policies and stable oil and electricity outputs.”

An economic analyst at Ecobank Nigeria, Mr. Kunle Ezun, said there was the need to close the gap between the exchange rates at the official and parallel markets.

He said the government must also address the spike in inflation, negative GDP growth and naira depreciation effectively and urgently.

Meanwhile, the naira tumbled further against the dollar at the parallel market on Wednesday and closed at 375, down from 368 on Tuesday.

Foreign exchange dealers said the lingering scarcity of forex at the interbank market was shifting dollar demand to the black market.

The local currency had lingered between 346 and 348 at the parallel market before tumbling to over 360 this week, following the total floating of the naira by the CBN on Friday.

The local currency, however, eased slightly against the dollar at the official interbank market and closed at 294.23 on Wednesday, up from 294.87 on Tuesday.

Dealers said the local currency was stuck at 294.23 after just one transaction was carried out, with the supply of dollars drying up and no intervention by the CBN, Reuters reported.

Highlighting the state of the interbank market, an economist at Exotix, Mr. Alan Cameron, said, “Recent FX reforms have been enough to re-open the investment case for Nigeria, but there is still some uncertainty about the functioning of the market.

“The absence of volatility at N283/$ was interpreted as a sign that administrative controls were still in place; it remains to be seen if those will be fully removed.”

According to some analysts, foreign investors have welcomed the removal of currency controls by the CBN but many are still steering clear of the Nigerian economy until it shows signs of a concrete recovery.

“Most investors would like to see a more liquid FX market before resuming purchases of local assets,” the Head of Africa Strategy at Standard Chartered Bank, Samir Gadio, told Reuters.

He, however, added, “Given the significant discount of naira-settled futures, a number of offshore financial institutions and hedge funds could be tempted to get involved in the foreseeable future.”

The Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chukwu, said the naira was falling at the parallel market because demand had shifted there due to lack of liquidity at the interbank market.

However, the National President, Association of Bureau De Change Operators, Aminu Gwadabe, said the naira was not sustainable at 375 to the dollar at the parallel market.

He described the demand as artificial, saying, “I think the parallel market has been taken over by some forces. Where is this demand coming from? I think this is not sustainable.”

Punch Newspaper

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AGAIN, Foreign 'Cabals' Gang-up To Devalue The Naira The More

There were indications yesterday that not a few foreign interests seek further devaluation of the naira to as low as 300 to the United States dollar, if desired economic goals must be achieved.

The new foreign exchange regime implemented by the Central Bank of Nigeria, CBN, saw the naira devalued from 197 to about 283 against the dollar on the official side, losing over 30 percent of its value since the start of the new regime.

But according to respected news media, Bloomberg, many foreign investors remain unconvinced, and they are seeking more devaluation of the local currency.

Prior to the start of the new flexible foreign exchange regime, investors tacitly asked that the CBN devalues the naira to reflect market realities.

Relating its findings across global financial capitals, Bloomberg stated that Renaissance Capital, RenCap, a Russian investment banking firm with a base in Victoria Island, Lagos, said in January that the fair value of the naira was 305 against the dollar, urging the CBN to devalue the currency to 250 at the time.

But with its 16-month-old peg on the naira gone courtesy of the new regime, the naira depreciated below RenCap’s requested 250.

But other investors want more depreciation.

For instance, the report said Christine Phillpotts, a stocks analyst at AllianceBernstein, says the fair value of the naira is 320/$1, arguing that, “It’s hard to tell what the central bank has in mind, it’s probably driven equally by economics and politics,” she said, adding that, “It comes down to Buhari and his comfort level with the new regime.”

Alliance Bernstein LP and Loomis Sayles & Co., which are currently among investors navigating post-Brexit global market turmoil, say CBN is not letting the naira weaken enough.

The foregoing positions tally with that of Rick Harrell, an analyst in Boston for Loomis Sayles, which oversees $229 billion of assets who told Bloomberg that “the Central Bank is probably wondering why investors haven’t moved back in following the devaluation.”

He said investors were “being cautious and the main reason why is the state of the economy. The fundamental backdrop isn’t positive.”

Bloomberg stated that trading in the Nigerian interbank foreign exchange market was yet to pick up, partly because the CBN cleared a backlog of dollar demand by selling more than $4 billion in the spot and forward markets on the first day without the peg.

“That the currency’s been so stable since the devaluation tells me that the central bank is still heavily managing it,” Harrell said.

“If we saw gradual depreciation to 300 or above, investors might feel more comfortable coming back,” he added.

Plot to exploit cheap labour

According experts spoken to, the intention of the foreign interests is to bring down the naira-dollar exchange rate further to enable them exploit the Nigerian labour market to their respective advantage.

Said Ikechukwu Ofili, an Abuja based financial consultant: “It’s all a selfish game they are playing. They know we have over 50million unemployed youths in this country. Their game plan is to see the naira further devalued; then with a briefcase of a few dollars or some other foreign currencies, they enter into Nigeria and employ Nigerians cheaply. For instance, if they offer you as a graduate a job for about N150,000 per month, you will think it is big money. But get to the market, you will not get the exact worth of your expectation. And don’t forget that the N150,000 equates to little or zero investment on their part if the naira falls to N300 per dollar.”

The Economic Advisor in an African mission also in Abuja told Nigerian Pilot that: “It is a conspiracy by foreign economic blocs to use Nigeria’s abundant labour cheaply at their whims and caprices. And when they are through, they dump the workers and they are back the unemployment or unemployable market.”

He added that the development sums up the disdain with which interests treat other countries like Nigeria.

He cited the statement by CBN governor, Godwin Emefiele, that despite floating the Nigerian currency, the CBN would intervene in the market from time to time to ensure proper regulation, as he assured that the naira would settle at 250/$, adding that “these people are desperate; your CBN governor could be helpless at the end of the day since desperate people do desperate things to reach expected ends. They can go to any length.”

Nigeria Pilot

No Nonsense Buhari ORDERS Arrest of Own Loyalist Over Money Laundering, 13 Luxury Cars Seized

Contrary to views by some quarters that the current government ant-corruption war is targeted at the opposition, President Muhammadu Buhari, according to Premium Times ordered the  arrest of a key member of the panel investigating the mismanagement of public funds meant for the war against Boko Haram, Mohammed Umar, after receiving damning reports that he was involved in alleged money laundering and illegal possession of firearms,

President Buhari okayed the arrest of his close ally, Mohammed Umar, despite being his close ally and loyalist, after perusing reports alleging that the retired Air Force officer ran a blackmailing and extortion cartel, officials said.

Mr. Umar was arrested last week as operatives of the State Security Service (SSS) raided his Abuja home.

Those familiar with the matter said before moving against the retired officer, the Director General of the SSS, Lawal Daura, met with Mr. Buhari where he tabled reports suggesting that the panel member had been busy using the name of the president and other top officials of the administration to intimidate, extort and blackmail individuals and businesses.

“The president became worried and jittery when he was confronted with the way a man he trusted had been behaving,” a presidency source said. “So he ordered that he should be picked up while the allegations against him are thoroughly investigated.”

Security sources told this newspaper that documents seized from Mr. Umar’s residence during a raid on June 19 included classified documents from the president’s office, details of government transactions from the Central Bank of Nigeria, and details of bank transactions belonging to the Office of the National Security Adviser.

A document containing details of disbursements made to the Nigerian armed forces and security agencies was also recovered during the raid.

Mr. Umar retired as an air commodore in the Nigerian Air Force in January 2014. While in service, he headed the Air Force’s Holding Company as well as the Air Force Properties Limited.

He retired into enormous wealth, officials involved in the investigations said.

Currently, he has six companies, including a private jet company with a fleet size of 10 aircraft, officials said.

Security sources also said he is also one of Abuja’s biggest property owners.

“Many top government functionaries live in his houses in Abuja,” a security source said. “He also has properties in Dubai and London.”

Mr. Umar became a close ally of President Buhari shortly after the 2015 elections.

Armed with a cache of information on Nigeria’s security contracts during the immediate past administration of Goodluck Jonathan, he soon became a key figure in the president’s investigative committee on arms procurement.

“He suggested most members of the panel,” another presidential source told Premium Times.

However, investigators said Mr. Umar’s swift rise to relevance in President Buhari’s administration was beginning to raise concerns regarding whether the new administration failed to conduct a thorough background check on him, or simply ignored the man’s past.

Officials said Mr. Umar was one of the first military officers to be arrested by the Economic and Financial Crimes Commission just years after the anti-graft agency was established.

He was detained for salary and procurement fraud in the Air Force, but the matter was later handed over to the military for trial, those familiar with the matter said.

Our sources said Mr. Umar was compelled to make refunds, and the matter was brushed aside allowing the man to return to the force.

Multiple officials told Premium Times that Mr. Umar’s stupendous wealth has always confounded several of his colleagues.

“As far back as 20 years ago, when his annual salary couldn’t afford a car, Mr. Umar had a private jet,” one source said.

Married to the daughter of a former Nigerian petroleum minister, Rilwan Lukman, Mr. Umar ran local and international businesses while he served in the Nigerian Air Force, one source said.

According to court documents seen by Premium Times, Mr. Umar carried out his recent deals in cash only.

Despite owning a private jet company and multiple real estates across the world, the total amount traced to his bank accounts was only N165 million.

The total value of currencies evacuated from his residence during the raid was at least N300 million.

Security officials believe he received the cash payments – in breach of the money laundering law.

Investigators are also trying to determine whether the cash were proceeds of illicit deals and influence peddling.

Those close to him told Premium Times that part of the cash taken from Mr. Umar’s home were payments for services rendered by his private jet company, Easy Jet Integrated Services Limited – from two cargo flights from Nairobi to Houston and Nairobi to Hong Kong.

Investigators said they are working to verify the claims.

Other properties seized from the retired officer’s home during the raid include 13 luxury cars – One Range Rover, two Rolls Royce, two Bentleys, one BMW 7-series, one Mercedes 5550, one Lexus Sports, one Audi R8 and one Porsche Panamera GTs.

As of Monday, Mr. Umar was still held at the State Security Service detention centre in Abuja as security officials continued with investigations into the matter.

The presidency refused to comment for this story saying it was within the scope of the National Security Adviser (NSA).

The NSA could not be reached for comments. So also is the SSS, which is investigating the matter. The agency has had no media liaison since its former spokesperson, Marilyn Ogar, was removed.

Premium Times

BREAKING: At Last CBN Unveils The New Foreign Exchange Rate Regime

The Central Bank of Nigeria today announced a flexible foreign exchange regime that would be determined by market forces. 

Speaking at a news conference in Abuja today June 15th, the Central Bank governor, Godwin Emefiele said under the new plan, the official exchange rate of the naira will exist in a "single flexible window," which will take off on June 20th.

The announcement end months of speculation about the official value of the Nigerian currency. 

A series of measures to manage the new forex policy includes the introduction of Forex Primary Dealers, a Futures Market to enable end users to lock down rates and 12 other measures to ensure transparency and stability of the new market. 

He, however, added that the 41 banned items remain banned, and cannot access forex from the new window.

Details soon

Again, Naira Crashes To ₦371 Per Dollar

Daily Times - The continuing pressure on the naira rose sharply on Wednesday with the local currency tumbling to a new low of 371 against the United States dollar at the parallel market. It had closed at 361 per dollar on Tuesday.

The delay by the Central Bank of Nigeria in explaining how the proposed flexible exchange policy will work has increased speculation on the currency.

Foreign exchange dealers and investors said the delay had caused uncertainty in the foreign exchange market and fuelled hoarding of hard currencies.

According to foreign exchange dealers at black markets in Lagos, Abuja and major airports across the country, the dollar was sold for between 367 and 373 on Wednesday.

Findings from various operators revealed that the local currency went for 371 against the greenback in most of the parallel market locations.

Abokifx.com, an online portal that monitors the movement of exchange rates at the parallel market, reported that the naira closed at 367 against the dollar.

However, the currency traded at 199.40 to the dollar on the official interbank market, within the CBN’s pegged rate band.

“Demand for the greenback has increased amidst growing scarcity as uncertainties created by the new policy have caused individuals to start to stock dollars,” the National President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, told Reuters on Wednesday.

Economic analysts said heightened political risks, evolving economic crisis and the CBN’s delay in unveiling its blueprint on the proposed forex policy were responsible for the fast depreciating rate of the naira at the parallel market.

An economic analyst and Chief Executive Officer of Cowry Asset Management Limited, Mr. Johnson Chukwu, said, “Foreign investors are fast losing confidence in the economy, seeing that they cannot bank on what the central bank says. It is almost two weeks now since the announcement of a new policy and yet, the blueprint has not been unveiled.

“Secondly, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, just said that oil production had fallen significantly as a result of the disruption in the Niger Delta; this means a major drop in our forex earnings. So, this is an evolving economic crisis.”

Other analysts said the value of the local currency was dipping because customers were trying to hedge against a possible depreciation when the CBN clarifies its new forex policy.

The naira had closed at 357 against the greenback on Monday, before crashing to 361 on Tuesday.

The CBN had recently said it would abandon its naira peg to the dollar and introduce a flexible currency exchange regime.

It has not said how this will work, a situation that has unsettled investors who are worried about getting caught in the middle of a devaluation.

The CBN’s Monetary Policy Committee had two weeks ago announced the plan to adopt a flexible exchange rate. The Governor, CBN, Mr. Godwin Emefiele, said the blueprint for the proposed policy would be released soon.

The delay has, however, caused the stock market to record huge losses after recording landmark gains following the announcement of the plan to adopt the policy.

The central bank banned dollar sales to retail Bureaux De Change in January and reduced supply at its official interbank forex market in an effort to conserve reserves, now at their lowest level.

FG's New Foreign Exchange Policy: Nigeria Stock Exchange Bounces Back, Naira Stable In 48hrs

Punch Newspaper - The Nigerian Stock Exchange All-Share Index on Wednesday posted the biggest return since the beginning of this year, as investors reacted positively to the Central Bank of Nigeria’s Monetary Policy Committee’s decision to allow a flexible foreign exchange regime.

The market capitalisation appreciated by N354bn to close at N9.706tn from N9.352tn on Tuesday, while the NSE ASI closed at 28,260.61 basis points from 27,231.50 basis points the previous day.

Tuesday’s decision of the CBN to adopt a flexible exchange rate policy was a shift from a peg of 197 to 199 for the naira, against the dollar which analysts see as overvalued and hampering investments.

A total of 474.402 million shares worth N3.503bn exchanged hands in 5,260 deals on the floor of the NSE on Tuesday.

The financial services and industrial goods sectors were the biggest beneficiaries of the renewed investor interest as they gained 589 basis points and 416 points. United Bank for Africa, Oando Plc, Zenith Bank Plc, Diamond Bank Plc and FCMB Group Plc emerged as the top five gainers.

UBA shares appreciated by N0.45 to close at N4.87 from N4.42, while those of Oando closed at N6.63 from N6.02 the previous day.

The price of Zenith Bank’s stocks closed at N16.51 from N15.00 on Tuesday, appreciating by N1.51, while that of Diamond Bank rose to N2.11 from N1.92, gaining N0.14. FCMB shares also appreciated by N0.14 to close at N1.56 from N1.42 the day earlier.

The top five losers were Mobil Oil Nigeria Plc, Union Dicon Salt Plc, Glaxo SmithKline Consumer Nigeria Plc, Ikeja Hotel Plc and Forte Oil Plc.

FBN Holdings Plc topped the volume chart for the second consecutive session, trading 73 million units, whilst GTBank led the value chart, trading 46 million units worth N960m.

Analysts at Vetiva Capital Management Limited said, “Given the strong demand observed in today’s (Wednesday) session as indicated by market breadth, volume and value, we see room for further gains in Thursday’s (today) trading session as the MPC’s decision to adopt a flexible exchange rate continues to whet investor appetite for stocks across sectors.”

Bond prices also rose as traders bought debt to cover positions taken before the central bank decision as they had expected the main rate to stay at 12 per cent to boost the country’s economy in view of slowing growth.

However, the naira remained flat against the United States dollar at the parallel on Wednesday as news over the adoption of a flexible exchange rate policy by the CBN created uncertainties in the forex market.

The naira, which closed at 346 against the dollar at the parallel market on Tuesday, maintained the same value on Wednesday.

Analysts said forex traders were confused over how the new rules would be implemented. The central bank has only said it will give guidance within days.

The forex traders, however, said they expected the policy shift to boost dollar supply and lure back foreign investors.

Struggling Naira Appreciates Against The Dollar

The Naira on Monday appreciated by 4.4 per cent against the dollar at the parallel market, gaining N16 from its Friday rate.

The News Agency of Nigeria (NAN) reports that the nation’s currency exchange at N345 to a dollar from N361 it traded on Friday.

However, the currency exchanged at N385 and N380 to Pounds Sterling and the Euro, respectively, at the Monday’s trading.

Meanwhile, the official Central Bank of Nigeria (CBN) rate remained at N197 to the dollar.

Traders told NAN that the money market had started recovering from the shock of Wednesday’s increase in the pump price of petrol from N86.50 per litre to N145 per litre, which saw a “free fall’’ of the naira at the market. (NAN)

More Deadly hardship Looms As Buhari Bows At Last To Foreign Pressure, To Devalue Naira To 290

Sahara Reporters - After months of insisting that he had no plans to devalue the naira, President Muhammadu Buhari has caved to pressure to change course; SaharaReporters has learned from an exclusive briefing by a few top aides of the president.

A day after the Buhari administration increased the price of the pump price of fuel by 67%, from N86.5 to N145 a liter, our sources disclosed that Mr. Buhari has also agreed to demands by the International Monetary Fund (IMF) that he significantly devalues the Nigerian currency. Our sources indicated that the naira would be pegged at N290 to one dollar. The current official rate is about N200 to a dollar.

Our sources said Mr. Buhari and his economic team took the decision to accept the IMF’s terms for funds that the Nigerian government wants to access to bridge a critical shortfall in revenue occasioned by a drastic decline in oil revenues. An administration insider told SaharaReporters that Nigeria could receive as much as $3 billion in credit facilities from the IMF.

“The truth is that Nigeria cannot operate without sourcing credit from the IMF,” said one of our sources, an economic adviser to Mr. Buhari, who spoke on condition of anonymity. “And the IMF was adamant that we must devalue before they can discuss extending credit to us,” he added.

Curiously, administration officials took the decision to devalue the naira without the input of the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, another source revealed. An official of the CBN confirmed to Saharareporters that bank executives were kept in the dark about the discussions that led to the Buhari administration’s decision to devalue the naira. “Some of us here [the CBN] are not opposed to devaluation, given our country’s present circumstances,” the source said, adding that it was the CBN’s function to pilot Nigeria’s monetary policies.

One of our sources pointed to the fact that the naira has been weakened in the parallel market, where it now sells at N360 per dollar. “The government cannot continue to operate under the illusion that the naira is stronger than it is. The only problem is that we did not start early enough to admit to Nigerians how bad the financial outlook was,” the source added.

The Nigerian economy has been pummeled by falling oil earnings that have led to a near collapse of the economy. The IMF had long indicated its readiness to support Nigeria’s economy with credit liquidity but insisted on Nigeria devaluing its currency. President Buhari had insisted on numerous occasions, before and after his election, that he would never devalue the naira.

It is unclear how Mr. Buhari and members of his economic team plan to justify the about-turn on devaluation and other policy somersaults. After initially vowing to reduce the price of fuel, the government yesterday announced a significant hike in fuel price. The administration also set to announce a 10% increase in value-added tax (VAT), another indication that the Buhari government was embracing the kind of liberalization pushed by the IMF.

To compound dwindling oil prices, militants in the oil-rich Niger Delta region have crippled oil exports substantially after bombing oil pipelines and issuing threats to oil companies to leave the region.

Last week, several oil companies evacuated essential staff from the region’s offshore platform leading to a reduction in daily oil outputs from 2.2 million barrels a day to 1.3 million barrels a day.

At Last, EFCC Pounces On Fani-Kayode, His Account FROZEN

Former Aviation Minister Femi Fani-Kayode will have to live without one of his accounts for now.

The account has been frozen by the Economic and Financial Crimes Commission (EFCC) as it steps up investigation into the alleged N4billion campaign bazaar cash received from ex-President Goodluck Jonathan in the build-up to the 2015 elections.

The funds were allegedly withdrawn from the Central Bank of Nigeria(CBN) and shared to 10 other directors, directorates, zonal directors and state directors of the Presidential Campaign Organization of Jonathan.

Fani-Kayode declared yesterday that he knew nothing about the withdrawal of the cash from the CBN or funding of the campaign by the former National Security Adviser, Col. Sambo Dasuki.

But he  admitted that campaign funds were paid into the account of a company linked with a former Minister of Finance, Mrs. Nenadi Usman, from where it was shared to him and others.

He dared the EFCC to “do their worse” in a statement in Abuja entitled “The Money Transfers and the Truth about the Presidential Campaign Funds.”

The beneficiaries may be arrested for questioning by the anti-graft agency.

Details of the largesse sharing are as follows: Fani-Kayode (N840million); Goodluck Support Group (N320million); Achike Udenwa and Viola Onwuliri (N350million); Nenadi Usman (N140million); and Okey Ezenwa (N100million).

Related News: The Money Transfers And The Truth About The Presidential Campaign Funds, By Femi Fani-Kayode

Giving his own side of the story,Fani-Kayode said  he received the funds from ex-President Jonathan and he is accountable only  to the former leader and not the EFCC.

He said the funds disbursed were not from public coffers and these were routed through a private company.

His words: “Our funds were given to us by the President who was the leader of our party through the Director of Finance of the PCO and we were not in a position to inquire into the sources of funding of the party’s campaign. Indeed, it was not our responsibility to do so.

“Once I got these clarifications and confirmations, I agreed to receive the funds into my bank account and use them for their stated purpose.

“The transfers were made and I used the funds to carry out all our operations during the course of the presidential campaign.

“It was an aggressive and well-run campaign and we gave our opponents a very hard time indeed. It was also very expensive and we barely had the resources that we really needed, but we did an effective job with the little we were given.

“The whole nation, including our friends and our enemies, can bear witness to that and they saw the excellent quality of our work. Hardly anyone can dispute this, yet some fail to appreciate the fact that such a strong showing costs a lot of money. Media and publicity campaigns cannot be run on goodwill alone. You need cash and plenty of it.

“During the course of the election and after its conclusion, I submitted detailed accounts of our expenses and evidence of our work to the Director of Finance of the PCO for onward transmission to the Director-General of the PCO and ultimately President Jonathan himself about how the money was spent and they were satisfied.

“Given the fact that these were not public funds, the only legal body that can inquire into our expenditure of campaign funds is President Goodluck Jonathan who set up the PCO.”

Continuing, he   said: “I cannot sit by silently as my name is dragged through the mud in this way and I am convicted in the court of public opinion. This has happened to me once before and it took me seven years to clear my name. It will not happen to me again.

“Consequently I am constrained to take this opportunity to state the facts of this matter, set the record straight and await my traducers and accusers to make their next move. It is indeed time to challenge those that are making these allegations and to kill the lie.

“ The fact that my bank account was frozen on the orders of the EFCC two weeks ago without any explanation is proof of the fact that I am being targeted and that those that seek to have their wicked way with me are about to pounce.

“Given this, it is important that all the relevant facts are put before the world before I am subjected to the Dasuki treatment, put away indefinitely and not given the opportunity to defend myself before the public. Meanwhile, in their usual manner, after this is done, the EFCC will then flood the media with all manner of lies about my so-called atrocities which only exist in the figment of their imagination.

“The allegation of fraud and the receipt of public funds from the National Security Adviser’s Office and Central Bank into my bank account are false.

“These allegations are baseless, wicked, shameful and irresponsible. It is not true that any money was paid into my account by or from the National Security Adviser’s Office, the Central Bank of Nigeria or any other government agency or institution last year or at any other time.”

He said the funds were wired into his account and others through a company associated with ex-Minister Nenadi Usman.

 ”As the Director of Media and Publicity of the Jonathan Presidential Campaign Organization, I was asked to submit a budget for my Directorate by Chief Tony Anenih, the Presidential Adviser to the Presidential Campaign Organization and Mrs. Nenadi Usman, the Director of Finance.

“My team and I prepared the budget and it was approved.

“Rather than collect cash, for security reasons and the purposes of accountability, I was advised by the Director of Finance to open a bank account for this purpose, which I did.

“The funds were paid into that account in instalments at the beginning of last year by the Director of Finance and each deposit was authorized and approved by the Presi dential Adviser to the PCO, Chief Tony Anenih.

“The account that they used to transfer the money to me was a private company account which was owned or under the control of the Director of Finance.

“It was the same company account that was used to send money to all the other Directors of the PCO and the Zonal Directors, State Directors and all our PDP governorship and legislative candidates during the various campaigns.

“ When I asked about the sources of the funds, I was told by the Director of Finance that the funds were sourced from private individuals and private companies who opted to support and fund President Jonathan’s campaign. She told me that no money was paid into her company from any government official, account or agency. This she told me in the presence of witnesses and I believed her.

“ I was told that there was a fundraising event held by our party (PDP) which took place in early January 2015 in which billions of naira were raised specifically for the Presidential campaign. I believed this to be true and I had no reason to doubt it.”

The ex-Minister said the slush funds were shared to 10 other directors, directorates, zonal directors and state directors of the Presidential Campaign Organization of Jonathan.”

He wondered why he has been the subject of “absurd and outlandish headline stories in various newspapers which have accused me of being a fraudster and which have claimed that funds were transferred into my bank account by the former National Security Adviser, Col. Sambo Dasuki, and by the Governor of the Central Bank of Nigeria.”

Such stories, he claimed , portrayed him as having used  public funds for the campaign of President Goodluck Jonathan.

He branded such stories as petty, shameful, nauseating and “ also a reflection of the desperation of those that seek to pull me down and destroy me simply because my opposition to this government has been unrelenting.”

“ In January 2015, I was appointed as the Director of Media and Publicity for the Jonathan/Sambo Presidential Campaign Organization by President Goodluck Jonathan.

The Director-General of the Campaign Organization was Senator Ahmadu Alli and the Deputy Director-Generals were Alhaji Ibrahim Turaki SAN (North) and Governor Peter Obi (South).

Chief Tony Anenih, an elder statesman and one of the most distinguished and revered leaders in our country, was the Presidential Adviser to the campaign organization.

“There were at least 10 other directors and directorates apart from me and mine including the Directorate of Mobilization which was led by the respected Professor Jerry Gana and the Directorate of Administration which was led by Alhaji Aliyu Modibbo. There were also zonal and state directors of the Presidential Campaign Organization in all the zones and states of the country.

“All these names that I have mentioned including all the other directors whose names I have not mentioned are, as far as I am aware, men and women of immense integrity and good character and they have mostly been either ministers of the Federal Republic or state governors at one time or the other in our history. It was an honour to serve alongside such people and I have absolutely no regrets about doing so.

“Yet given the fact that I was not the only director in the campaign organization and in view of the fact that all the directors and zonal and state directors got their funds from the same source and account as I did, one wonders why only I and three others should be singled out for this reprehensible treatment and these false allegations.

“ I chose to remain silent on the issue until now simply because the allegations have not been officially made by the Economic and Financial Crimes Commission (EFCC) or anyone else, but the newspapers keep citing their sources “inside the EFCC” as their basis for these shameful allegations.

Mr. Josef Goebbels, Chancellor Adolf Hitler’s information minister, when Germany was in the terrible grip of the Nazi party, said that once a lie is repeated enough times, it becomes truth to those who are continuously subjected to it. This is especially so if it goes unchallenged.”

Fani-Kayode, who took swipes at the EFCC and The Nation in his statement, asked the anti-graft agency to “do the worst.”

He said: “Yet if this is an attempt to intimidate, silence or distract me, they shall fail because I am not a coward and I do not fear them or those that sent them to torment me.

“As long as Jesus is on the throne and our hands are clean, no matter how long it takes, we shall prevail and ultimately they will pay a heavy price for their malice, injustice and wickedness.

“These are facts and readers can be rest assured that I will say nothing different from this if and when I am formally asked by anyone or any agency.

“When the EFCC begins to leak their falsehood and salacious allegations to their agents in the media, kindly take note of the fact that, as usual, they will be telling tall tales and they will be lying.

“Now I challenge them to do their worse. I have no fear of them or of those who have sent them to do this dirty job. May God judge them all and may He reward them for their wickedness.

“The suggestion that the money was some kind of “cash bonanza” or “bazaar” as has been reported by the leading pro-government newspaper in the country today is childish and absurd.

“If that had been the case, I doubt that I would have been foolish enough to open a bank account to receive government funds or “bazaar funds” as this would have been easily traced.

“If I had anything to hide or if I was doing anything wrong, I would have insisted on collecting cash for my operations which would have been far easier to conceal.

“The fact that the EFCC gained access to my bank account and leaked details of it to the media, including my inflows, is not only a gross violation of my privacy, but it is also unlawful.”

The Nation

How Jonathan Approved The Fraudulent $2.1b To Dasuki - Accountant Gen. Office Opens Up

A former Director of Funds in the Office of the Accountant-General of the Federation, Mohammed Dikwa, admitted to the Economic and Financial Crimes Commission( EFCC) that the controversial $2.billion released to ONSA under ex-NSA Sambo Dasuki were based on either presidential or ministerial orders.

Dikwa gave the details in a statement made to the EFCC on the ongoing investigation of the $2.1billion arms procurement cash and the trial of some suspects.

He admitted to the  EFCC that funds were released to ONSA, led by Dasuki,  based on either presidential or ministerial orders.

He said: “I am the Director of Funds from April 2013 to date. All releases were made based on approvals by relevant authorities.

“Releases of funds are normally initiated  by relevant MDAs and go through presidential approval or ministerial approval or budgetary provisions, depending upon the nature of the requests.

“Having obtained the necessary approvals, the OAGF will process the approval by drawing a mandate instrument and send to the Central Bank of Nigeria(CBN).

“The CBN will then pay the amount involved to the relevant agency. The agency will now spend the funds in line with the established Financial Rules and Regulations.

“The Office of the Auditor-General of the Federation and other relevant agencies will also  conduct post-mortem examination of the books of accounts of such MDAs as to the appropriateness  or otherwise of such transactions.

“All releases in favour of the National Security Adviser were based on approvals by the appropriate authorities.

The following releases were made under the former Accountant-General of the Federation( Mr. J.O. Otunla) : $250,000,000 on 16/2/2015; $5,500,000 on 20/3/2015; $10,000,000 on 9/4/2015; $10m on 29/4/2015; $1,200, 000,000 in November 2013; $5.5m on 13/12/2013; $120m(15/11/2013)

#Dasukigate: We'll Probe Jonathan If... - Buhari's Panel

The Chairman, Presidential Advisory Committee Against Corruption, Prof. Itse Sagay, has faulted a former Minister of National Planning, Dr. Abubakar Suleiman, regarding the culpability of former President Goodluck Jonathan in the current anti-corruption cases.

Suleiman, who is the spokesperson for the Peoples Democratic Party Ministers’ Forum, had said in a Sunday PUNCH interview that Jonathan could not be held liable because no stolen funds had been traced to the ex-president’s personal bank accounts.

The ex-minister had said, “All these issues of corruption under Jonathan happened between March and April last year. It was purely an election issue. Nobody has traced any money to Jonathan’s account up till now, but money was traced to Abacha’s accounts.”

However, Sagay told one of our correspondents during an interview on Sunday that although he could not say if there was a case against Jonathan or not yet, the ex-President could be held liable if it could be established that Jonathan made illegal approvals for funds to be paid into other people’s accounts.

He said if, for instance, it could be established that Jonathan gave the Central Bank of Nigeria a directive to pay someone money and the person was not deserving of that money, then the ex-President could be indicted.

Sagay, who is a Senior Advocate of Nigeria, added, “Only the EFCC can say if Jonathan is culpable. Guilt in criminal law requires proof and there must be evidence. So, what I would say is that if a case can be established against Jonathan as regards public funds, then he has a case to answer.

“I don’t know if that has been done. I have not seen anybody who says he was given the money by Jonathan himself although one can say that instructions to any institution that public funds should be released to other people for purposes, which those funds were not designated, is in itself a criminal affair.

“So, it is not only when money is found on you that you have a case to answer. If you are a person in authority, and you issue directives to people under you, who are keeping public funds like the Governor of the Central Bank, and an illegal order is given to him for the release of funds, that, in itself, will raise a case for Jonathan to answer if in fact he issued such an order.”

Another SAN, Mr. Yusuf Ali, said it was too early to exonerate anyone as investigations into corruption that took place under the previous administration were still ongoing.

Ali stated, “The whole process is ongoing. Investigations are still ongoing. Until somebody is convicted, nothing bad can be said about such person. I believe when we get to the bridge, we shall cross it.

“There is no point for anybody to be excited or be happy for now until the whole story is in the open. Investigations are ongoing.”

On his part, a Lagos-based lawyer, Mr. Jiti Ogunye, described Suleiman’s statement as provocative and highly irresponsible.

Ogunye said the fact that a number of persons, who served under the Jonathan administration, were facing criminal trial was enough grounds to charge the former President with conspiracy.

According to Ogunye, Jonathan, as the head of the executive arm, had liability for everything done by his subordinates because the buck stopped at his table.

Ogunye said, “That statement by him is provocative and highly irresponsible. And the reason I say that is that former President Goodluck Jonathan was the head of the executive arm of government at the time he presided over the affairs of the country.

“All the officials that are being held to account and during whose trials, as we speak, Nigerians are now learning about the mind-boggling  stealing or looting of public treasury, were answerable to him; they were running his errands and therefore Nigerians expect that being the person on whose table the buck stopped as of the time he was the President, that he would be able to superintend them and ensure that those his subordinates didn’t loot the nation’s treasury.

“It’s too early in the day for any Suleiman or anybody to give the former President or any other member of that administration a clean bill of health. When you are talking about no money has been traced to former President Goodluck Jonathan, what does it mean?

“On his instruction and while he was running for office, people turned our national security vote into a bazaar and they were giving this money out to his allies and acolytes. So, whose errand were those people running when they were distributing the money? Who wanted to become the President then? And based on those revelations alone, he is culpable, contrary to the claims of Suleiman that nothing has been traced to him.

“Can’t the former President be charged with conspiracy? He can, on the basis of those revelations because for what purpose was the money given to those people? On the strength of that alone, a charge of conspiracy can be sustained against the former President.

“For anybody to be annoying Nigerians with such a statement that nothing has been traced to the former President, one wonders what he was thinking. This is not theatrics, we are talking about things that have wrecked this country and then people are engaging in ludicrous polemics.”

"PDP Mischievous & Silly" - CBN Blasts Over Sales Of Dollar To Buhari's Aide Claim

The Central Bank of Nigeria (CBN) has said it does not sell foreign exchange to individuals or groups directly, clarifying that it sells forex in wholesale to banks who in turn resell to their customers at their discretion. The CBN’s clarification followed multiple tweets by the Peoples Democratic Party (PDP) on Saturday claiming that it sold foreign exchange to aides of President Muhammadu Buhari, at the official rate who then resold at the parallel market. CBN’s reaction was obtained and tweeted by the handle @UnofficialCBN, a twitter handle which “Publishes news & information about the Central Bank of Nigeria, Nigerian economy, monetary policies & the Naira, sourced from various news media.” The tweets said: CBN Source Reacts To PDP’s Tweets On Forex Sales…

1. @cenbank never sold dollars at N185 - $1. Devaluations were from N155 to N167 and N197.

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

2). CBN only does wholesale allocation to banks (Selling dollars to banks at wholesale). Only banks can determine customers they sell to.

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

3. That's how the Wholesale Dutch Auction System works. @cenbank does not sell dollars to any individual or group directly.

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

4. Banks publish final recipients of dollars every week in all major newspapers as directed by the #CBN, so as to promote transparency.

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

5. So the PDP is only being mischievous and silly. What’s the big revelation?

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

6. How did PDP know how much the recipients sold the dollars in the open market even if they ended up doing so?

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

7. Simply another smear campaign by Gov. Emefiele's detractors to connect his name to everything wrong, both imagined, fabricated, or real

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

8. As Gov. Oshiomole aptly and succinctly posited recently, these faceless persons will be unmasked soon as "palm wine drinkers!"

— Unofficial: CBN (@UnofficialCBN) March 26, 2016

BVN: Money Launderers Abandon N2.6trn In Banks

Abusidiqu - The Bank Verification Number (BVN) introduced by the Central Bank of Nigeria (CBN) to link individuals to their various bank accounts has led to a whopping N2.6 trillion being trapped in various banks across the country, it has been gathered.

Owners of these accounts, it is said, failed to make claims to the said sum by refusing to link their BVN to the accounts for fear of being labeled money launderers.

With the institution of BVN, no bank customer can withdraw money from an account unless it is linked with the number, which synchronizes the customer’s different accounts.

“If you have 10 accounts in different banks it will be linked to you and the CBN will have a clear summary of all the money you have,” said a bank manager in a first generation bank.

As a result of the measure, no less than N2.6 trillion is said to have been trapped in banks with owners refusing to pick them up without flagging enquiries on how they made the monies.

Findings reveal that the BVN has also facilitated a reduction on illegal trading in forex by Bureau de Change (BDC) operators. Before now, BDCs submit bogus lists of buyers of forex from account owners. But with BVN, the list could be vetted upon comparing accounts thus putting faces on applications for forex.

It was long suspected by the Federal Government and the monetary authorities that a good chunk of federal allocations to states, ministries, departments and agencies (MDAs) find their way into Wuse and other forex exchange hubs in Lagos and other states.

“It’s the first port of call for those willing to exchange looted money into dollar, pounds and euros in their onward transfer to offshore accounts and private pockets,” explained a senior operative with the Economic and Financial Crimes Commission (EFCC).

At the fore of the surreptitious transactions are bankers and registered BDC operators who freight forex to the black market in the hitherto rampant financial malfeasance otherwise called ‘round tripping.’

“Taking the black market out of play is reducing transfer of illicit funds significantly,” explained the EFCC operative. It would be recalled that there was a major altercation between Ngozi Okonjo Iweala, Nenadi Usman, both then serving ministers in the finance ministry under former President Olusegun Obasanjo on the one hand and state governors on the other.

The ministers had drawn the public’s attention to flurry of activities in the black market whenever federal allocations reach the states.

Bismark Rewane, CEO, Financial Derivatives, also linked bankers and officials in the apex bank to this economy-crippling racket.

But with the new measures and going by the scenario being painted in the anguish of the forex dealers, those in the habit of using the black market as conduit for looting public funds appear to be the first causalities.

Last year, the CBN had said that any bank customer without the BVN would from November 1, 2015 be deemed to have inadequate know your customer (KYC) information.

Buhari Declares War On Agriculture, Power, Others At Economic Council Retreat: Read Full Text of Address

Protocol

I am delighted to have the opportunity to address this distinguished and all-important retreat on the Nigerian economy. The purpose of this retreat as outlined in the Retreat Concept Notes is to generate immediate, medium and long-term viable policy solutions to the economic challenges facing us at both the Federal and State levels.

2. From information at my disposal, if we aggregate public views from the grassroots, city dwellers, the economic managers, consumer groups, the Unions and other stakeholders of the economy, there is near unanimity about the ills of our economy. But naturally, there are divergent views about solutions.

3. I am going to throw at this gathering some random policy options filtered from across the spectrum of our stakeholders on four (4) selected sectors of our economy.

These are Agriculture, Power, Manufacturing & Housing.

4. I have not touched Education, Science and Technology pointedly because these related subjects require a whole retreat by themselves.

5. Distinguished Ladies and gentlemen, these suggestions I am putting forward to you are by no means directives but a contribution to your discourse.

AGRICULTURE

6. On Agriculture today, both the peasant and the mechanized farmers agree with the general public that food production and self-sufficiency require urgent government action. For too long government policies on agriculture have been half-hearted, suffering from inconsistencies and discontinuities.

Yet our real wealth is in farming, livestock, hatcheries, fishery, horticulture and forestry.

7. From the information available to me the issues worrying the public today are:

Rising food prices, such as maize, corn, rice and gari.

Lack of visible impact of government presence on agriculture.

Lack of agricultural inputs at affordable prices. Cost of fertilizers, pesticide and labour compound the problems of farming. Extension services are virtually absent in several states.

Imports of subsidized food products such as rice and poultry discourage the growth of domestic agriculture.

Wastage of locally grown foods, notably fruit and vegetables which go bad due to lack of even moderate scale agro-processing factories and lack of feeder roads.

8. These problems I have enumerated are by no means exhaustive and some of the solutions I am putting forward are not necessarily the final word on our agricultural reform objectives:

First, we need to carry the public with us for new initiatives. Accordingly the Federal Ministry of Agriculture in collaboration with the States should convene early meetings of stakeholders and identify issues with a view to addressing them.

Inform the public in all print and electronic media on government efforts to increase local food production to dampen escalating food prices.

Banks should be leaned upon to substantially increase their lending to the agricultural sector. Central Bank of Nigeria (CBN) should bear part of the risk of such loans as a matter of national policy.

States should increase their financial support through community groups. The appropriate approach should be through leaders of community groups such as farmers cooperatives.

Provision of feeder roads by state governments to enable more effective evacuation of produce to markets and processing factories.

9. When I was a schoolboy in the 1950’s the country produced one million tons of groundnuts in two successive years. The country’s main foreign exchange earners were groundnut, cotton, cocoa, palm kernel, rubber and all agro/forest resources.

10. Regional Banks and Development Corporations in all the three regions were financed from farm surpluses. In other words, our capital formation rode on the backs of our farmers. Why was farming so successful 60 years ago? The answers are simple:

Access to small scale credits Inputs (fertilizers, herbicides etc) Extension services.

11. Now we have better tools, better agricultural science and technology, and greater ability to process. With determination we can succeed.

POWER

12. Nigerians’ favourite talking point and butt of jokes is the power situation in our country. But, ladies and gentlemen, it is no longer a laughing matter. We must and by the grace of God we will put things right. In the three years left for this administration we have given ourselves the target of ten thousand megawatts distributable power. In 2016 alone, we intend to add two thousand megawatts to the national grid.

13. This sector has been privatized but has yet to show any improvement in the quality of service. Common public complaints are:

Constant power cuts destroying economic activity and affecting quality of life.

High electricity bills despite power cuts. Low supply of gas to power plants due to vandalization by terrorists.

Obsolete power distribution equipment such as transformers.

Power fluctuations, which damage manufacturing equipment and household appliances.

Low voltage which cannot run industrial machinery.

14. These are some of the problems, which defied successive governments. In our determination to CHANGE we must and will, insha Allah, put a stop to power shortages. Key points to look at here are:

Privatization. We are facing the classic dilemma of privatization: Public interest Vs Profit Motive. Having started, we must complete the process. But National Electricity Regulatory Commission (NERC), the regulatory authority, has a vital job to ensure consumers get value for money and over-all public interest is safe-guarded.

Government to fast-track completion of pipelines from Gas points to power stations and provide more security to protect gas and oil pipelines.

Power companies should be encouraged to replace obsolete equipment and improve the quality of service and technicians.

MANUFACTURING

15. It grieves me that so many manufacturing industries in the country today are groaning and frustrated because of lack of foreign exchange to import raw materials and spare parts.

Painful though this is, I believe it is a temporary phase which we shall try to overcome but there are deeper, more structural problems bedeviling local industries which this Retreat should identify short and long-term answers to. Chief among these problems are:

Inadequate infrastructure:

Power

Roads

Security

leading to increase in costs of making Made-in Nigeria goods pricier than imports

High Cost of Borrowing Money:

Manufacturers Association of Nigeria (MAN) has been hammering on the fact that high lending rates make manufacturing unviable and unprofitable.

Lack of Long Term Funding:

The Nigerian Capital Market has not completely recovered from the 2008 worldwide crisis. Banks’ funding sources are short-term in nature due to sources of the liabilities.

Under-developed Science and Technology Research: As with Agriculture, Nigeria’s industries are in the main outmoded and industrial practices far behind those in advanced countries.

Unions:

We need to protect our workers from exploitation, but unions must cooperate with entrepreneurs to substantially improve productivity and quality of products if we are to move forward.

Smuggling:

Need I say more?

16. Recommended Actions on industries are:

The infrastructure Development Fund should be fast-tracked to unlock resources so that infrastructural deficiencies can be addressed.

There should be more fiscal incentives for Small and Medium Enterprises (SMEs), which prove themselves capable of manufacturing quality products good enough for export.

Central Bank of Nigeria (CBN) should create more incentives and ease credit terms for lending to manufacturers.

A fresh campaign to patronize Made-in-Nigeria goods should be launched. Example: all uniforms in government-sponsored institutions should be sourced from local factories.

HOUSING

17. Some estimates put Nigeria’s housing deficit at about sixteen million units. In our successful campaign to win the general elections last year our party, the APC, promised to build a million housing units a year. This will turn out to be a very tall order unless:

The Federal Government builds two hundred and fifty thousand units. The 22 APC States together manage another two hundred and fifty thousand units.We invite foreign investors together with local domiciled big construction companies to enter into commercial housing building to pick up the rest.

The most frequent public concerns brought to my attention are three-pronged:

1. Severe shortage of housing

2. High rents

3. Unaffordable prices for prospective buyers especially middle and low-income earners.

In addition, red tape, corruption and plain public service inefficiency lead to long delays in obtaining ownership of title documents.

Again, there are no long term funding sources for mortgage purposes.

18. These hurdles are by no means easy to scale, but we must find solutions to the housing deficit. This Retreat might start by looking at the laws.

Laws. The relevant laws should be reviewed to make the process of acquiring statutory right of occupancy shorter, less cumbersome and less costly. Court procedures for mortgages cases should make enforcement more efficient. Ministries of Works and Housing should upgrade their computerization of title registration system for greater efficiency.

Mortgage Institutions. Achieving affordable housing for all Nigerians will require the development of strong and enduring mortgage institutions with transparent processes and procedures.

Mortgage Re-financing Company. This institution when fully operational should ensure adequate support for mortgage financing.

HEALTHCARE

19. Last of the four areas that time will allow me to say a few words, but by no means the least, is healthcare. In my inauguration speech last May, I remarked that the whole field of Medicare in our country needed government attention. Dirty hospitals! (Few sights are more upsetting than a dirty hospital), inadequate equipment, poorly trained nursing staff, overcrowding. The litany of shortcomings is almost endless.

20. Sound health system is part of the prerequisites for economic development. Nigerians travel abroad, spending an estimated One Billion US Dollars annually to get medical treatment. Despite huge oil revenues the nation’s health sector remains undeveloped.

21. In attacking the challenges of this sector we could start with

More funding for health centres to improve service delivery. World Bank and World Health Organization (WHO) could be persuaded to increase their assistance.

Strengthening public health propaganda in primary prevention:

Environmental sanitation

Stop smoking

Better dieting

Exercising

And secondary prevention:

Screening and early diagnosis of diseases

NAFDAC to intensify efforts on reducing or stopping circulation of fake drugs in Nigeria.

Ministry of Health should work closely with the Nigerian Medical Association to ensure that unqualified people are not allowed to practice.

22. Finally I urge participants to learn from the array of experts and resource persons and learn from the shared experiences and perspectives to understand how other countries have transformed their economies and livelihoods of their people for the better. It is also the government’s expectation that this Retreat will highlight the respective roles and responsibilities of each tier of government in adopting and implementing agreed policy initiatives.

23. I hope this Retreat will come up with practical, viable solutions and recommendations as we chart a course for our nation in this turbulent domestic and international economic environment.

Thank you.