Thursday, 2 July 2015

Nigeria: Anambra on fire,Obiano tells traders

Anambra Governor, Willie Obiano
The Anambra State Governor, Willie Obiano, has asked traders in the state to be ready to pay taxes and levies for the development of the state.
Obiano said this while inaugurating the Traders’ House built by the Amalgamated Market Traders Association of Anambra State on Wednesday in Onitsha, the Anambra State capital.
Obiano, who was represented by his deputy, Dr. Nkem Okeke, noted that taxes were needed by the state government to meet various social and infrastructural obligations it owes the citizenry.
“The government had performed excellently well in security, construction and re-construction of roads as well as environmental cleanliness, which all of you can attest to.
“But we cannot do all these and sustain them without your cooperation through paying your taxes and levies; since traders make up 75 per cent of the population of the state.
“Again, it is clear to everyone in the country that allocation from the Federation Account is dwindling and we need to shore up our Internal Revenue Generation through streamlining our taxes and levies generation,’’ he said.
The governor also urged the traders to help in keeping the state, especially Onitsha clean.
He, however, debunked the rumour that commercial motorcycle operators were banned in the state, adding that the government only stopped them from plying some major roads that could pose danger to them and their passengers.
Earlier, the Commissioner for Industries, Trade and Commerce, Mr. Ifeatu Onejeme, had said that the new secretariat of traders would serve as a unifying factor that would bring peace and progress to traders in the state.
Onejeme noted that the government was putting electricity in most markets, adding that very soon the state would have markets that operate 24 hours daily.
In his address, the President-General of AMATAS, Chief Okwudili Ezenwankwo, said that the completion of the Traders’ House in record time portrayed the leadership of traders as visionary and purposeful.
Ezenwankwo, who thanked the government for its financial support, also lauded the contribution of Chief Poly Emenike, who donated N8m for the completion of the complex.

Foreign: Egypt’s Brotherhood urges revolt after members killed

The Muslim Brotherhood has warned of “serious repercussions” and has called on its supporters to “rise in revolt” after Egyptian police killed several of its members.
Egyptian police raided an apartment in the Cairo suburb of 6th of October on Wednesday and killed at least nine of the outlawed group’s leading members, including a former member of parliament, Nasser al-Hafy, security sources and a member of the group said.
The Brotherhood members were reportedly meeting to discuss sponsoring the families of detainees when the police stormed the building.
Egypt’s interior ministry, however, said the men were fugitive leaders who were plotting attacks – something the group denies – and said the group included two men who had previously been sentenced to death.

Nigeria: Giant of Africa money(naira) falls to 230 pa dollar 

Nigeria Naira Notes
These are definitely not interesting times for the nation’s economy, particularly the national currency, the naira, no thanks to the depleting reserves and the subsequent banning of importers of 41 items from the foreign exchange market by the Central Bank of Nigeria.
Barely 10 days after the CBN stopped forex sale to importers of rice, textile and 39 other items, the naira on Wednesday crashed to 230 against the United States dollar at the parallel market, down from 218 recorded on June 23 when the new forex rule was introduced.
The policy, which has pushed huge forex demand from the interbank (official) market to the parallel (black) market and the Bureau de Change retail segment, has led to artificial scarcity of dollar and other major foreign currencies as operators now hoard them in anticipation of higher prices.
The naira had fallen to 220, 223, 226.5 and 228 against the dollar in the past one week.
Black market and BDC operators, however, told our correspondent that serious dollar liquidity squeeze was already hitting the market and operators were no longer in possession of huge stock of forex to meet rising demands, especially from the importers of the banned items.
Using the CBN figures, analysts had estimated that about $5.7bn quarterly forex demand was being transferred from the official interbank market to the black market.
“The situation is getting critical now. There is serious dollar liquidity squeeze in the market now. The demand is overwhelming and both the black market and the BDC segment can no longer meet the demand,” a black market operator told our correspondent on Wednesday.
“The market is very volatile now as a result of the restrictions placed on about 41 items by the central bank. Most importers are now patronising the parallel market to source their dollars,” the head of a BDC, Mr. Harrison Owoh, told Reuters on Wednesday,.Meanwhile, the Association of Bureau De Change Operators has written to the CBN asking it to intervene in the dollar scarcity in the parallel market and the BDC segment to save the naira from crashing further.
In the letter, a copy of which was obtained by our correspondent, the association expressed its readiness to work with the CBN to stabilise the market.
The letter, signed by association’s President, Alhaji Aminu Gwadabe, and Executive Secretary, Uduma Cletus, advised the CBN to increase its weekly forex sale to the BDCs from $30,000 to $50,000.
The body also asked the central bank to reintroduce the autonomous market where it could sell about $100,000 to the operators.
Gwadabe told our correspondent that it was expedient for the CBN to increase its forex sale to the BDCs in order to stabilise the naira.
Some analysts believe the naira may hit 240 against the dollar in the coming days.
However, the naira traded at 198.95 to the dollar at the interbank market on Wednesday, according to Reuters.
The central bank had lowered its exchange rate peg to N196.95 to the dollar on Tuesday from N196.90 last week
Also, a trade of $735.74m went through on Nigeria’s interbank currency market at N198.45 on Wednesday, Thomson Reuters data showed.
Market sources said a foreign client had sold dollars to a bank in Nigeria. Total interbank market volumes stood at $1.12bn on Wednesday, far higher than typical trading sessions since the central bank introduced a naira peg in February.
Meanwhile, the CBN has reminded dealers and banks that their dollar cash sale for six items, including schools fees, insurance premium, basic travel allowance and monthly mortgage should not exceed $5,000.
In a new circular dated July 1, 2015, the CBN also warned banks not to sell forex to the importers of the 41 items that were banned from the forex market last week.

Caution Dogara, Gbajabiamila group tells Buhari

Dogora, Gbajabiamila
Members of the House of Representatives who are in support of Mr. Femi Gbajabiamila on Wednesday evening appealed to President Muhammadu Buhari to call the Speaker, Yakubu Dogara, and members of his group to order.
They accused the All Progressives Congress’ members on the side of Dogara of allegedly colluding with the Peoples Democratic Party to polarise the ruling party to give room for them to later defect to the PDP.
This was one of the issues they raised when they met with Buhari behind closed-doors at the Conference Hall of the First Lady’s Office inside the Presidential Villa on Wednesday evening.
Copies of their presentation to the President were made available to journalists at the end of the meeting also attended by Vice President Yemi Osinbajo.
The 30 lawmakers who attended the meeting on behalf of their colleagues were led by Gbajabiamila.
They said the President’s intervention was needed in order to save the party’s integrity.
They demanded that Dogara be asked to return to their fold and announce the other four principal officers positions in the House as directed by the party as it has always been the convention.
They said, “It is noteworthy that Mr. President and the governors had strongly put their weight behind the party and had severally admonished the House to abide by the party’s position.
“The 39 APC members in the House continue to collude with the PDP to flagrantly disobey Mr. President, the governors and the party with a view to bringing the party and government to ridicule before Nigerians.
“The conduct of the 39 APC members colluding with the PDP is tantamount to affront, ultimately targeted at polarising our party so as to give room for many of them to decamp to the PDP.
“It is therefore imperative for Mr. President to take a stand and save the integrity of the party by calling to order, the 39 members, which include the Speaker and the Deputy Speaker, to respect, honour and obey our party Leaders and their directives.
“In conclusion, Mr. President, we as loyal party members shall continue to abide by the party constitution, respect and honour our party leaders and their directives.
“We strongly appeal to you to direct the Speaker to return to our fold and be truly elected Speaker on APC platform. He should be directed to announce the other four party principal officers positions as directed by the party as it has always been the convention.
“We sincerely appreciate Mr. President for the audience trusting in his ability to successfully mediate so as to save our great party, the APC, from further embarrassment.”
The lawmakers said while Gbajabiamila and the party’s choice for the position of Deputy Speaker had openly congratulated Dogara and his deputy, the opposition and the 39 APC members continued to hold the APC leadership in contempt.
They wondered what would be the reward of the 174 of them that have remained obedient and loyal to the party.
While noting that the Speaker’s group had cited the Federal Character principle as the reason why they will not honour the party’s directive on the choice of the remaining principal officers, the lawmakers said that principle was not applicable to the National Assembly.
“It should be noted that the Federal Character principle as embedded in the 1999 Constitution (as amended) is not justiciable and of no legal consequence.
“Its provision in S.14 of the Constitution is only applicable to appointments in Federal Ministries and Agencies.
“The House of Representatives is not an agency of the Federal government and the principal officers’ positions are elective and not by appointment.
“If the Federal Character is applicable to the National Assembly, then both the Senate President and the Speaker cannot come from the North, one of them should be advised to step down,” they argued.
Gbajabiamila later told State House correspondents that he led the lawmakers who belong to the APC caucus to meet with the President in order to iron out the issues that had arisen since June 9 and find a way forward.
He described the meeting as a very successful one, saying the APC caucus and the party would come out bigger, stronger and better for it.
When asked what the President told them, Gbajabiamila said Buhari is a party man who believes in party supremacy and the party’s ideologies.
When asked why Dogara would be absent at the meeting when he claimed that it was for APC caucus, the lawmaker said the Speaker could have other engagements.
He said, “The Speaker probably has other engagements. There are a few members of the caucus that are not here. We could not get everybody here.
“This is a representation of the caucus. When we are talking about the caucus, we are talking about 210 members. You did not find all the members here.
“This is a representation of the 210 members.”
When reminded that all those who attended are members of his camp, Gbajabiamila said, “It is not about me and we need to get that clear. Yes, they voted for me but the idea is that they supported the party.
“That is who we are and there is nothing more to be said about that. It is not about any individual.”
When also asked the way forward after the meeting with the President, the lawmaker said the party’s will would be done.
He said the sooner all lawmakers recognised the fact that they did not get to the House as independent candidates, the sooner they would chart a way forward.

Wednesday, 1 July 2015

CBN adjusts forex peg as naira hits 228

   

 

CBN Governor, Mr. Godwin Emefiele
The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week.
This made it the fourth time the CBN had adjusted the peg since it was introduced in February, Reuters reported.
This happened just as the naira tumbled further to 228 against the dollar at the parallel market on Tuesday from 265 on Monday.
Reuters reported that the yield on the Federal Government’s 2024 bond in the JP Morgan Government Bond Index rose by 40 basis point to 14.74 per cent.
Traders said the move might indicate that the bank was beginning to think about how to loosen its currency regime.
“There is no change to FX policy, therefore the locals are getting a bit nervous thinking that offshore investors will not be coming back any time soon,” Portfolio Manager at Aberdeen Asset Management, Mr. Kevin Daly, said.
“Effectively, the bond market is starting to price in a much wider move on the currency,” he said.
Traders had said on Monday that the negative outlook for inflation, which is hovering around the central bank’s upper limit of nine per cent, was one reason local investors were selling bonds.
The most liquid five-year bond yield rose to 14.95 per cent, up from 14.71 per cent the day before the central bank unveiled the currency rules last week, but below 15.5 per cent on the eve of the presidential election in March.
Experts and analysts had said the naira might hit 230 in coming weeks following the CBN new forex rule.
Currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said the owing to the huge demand at the parallel market, the naira would experience severe pressure in coming weeks.

Nigeria: APC crisis: Akande’s letter angers northern party leaders

Nigeria: Bad Gov Aregbesola pays Dec 2014 workers’ salaries

Osun State Governor, Mr. Rauf Aregbesola
The Chairman of the Nigeria Labour Congress in Osun State, Mr. Jacob Adekomi, said on Tuesday that Governor Rauf Aregbesola had approved the payment of December 2014 salary for workers in the state.
Adekomi, who said this at a press conference he addressed after a meeting with the government delegation, led by the Chief of Staff, Mr. Gboyega Oyetola, added that the governor also approved the payment of the 30 per cent balance of November salaries of some workers who were yet to be paid in full.
The NLC boss, however, said that workers would not suspend their strike action despite the payment of their one month salary out of seven months.
The Head of Service, Mr. Sunday Owoeye, also confirmed that workers had started receiving bank alerts for the balance of November and December 2014 salaries.
He said this in response to an inquiry earlier sent to him by our correspondent through text message.
Owoeye’s text read, “They are already receiving alerts for the balance of November, and part of December, 2014. A journey of 1000km starts with one step. The man who removes a mountain starts by carrying stones away.”
But Adekomi explained that most workers would not get anything from the one month salary paid because their banks would use the meagre money for loan repayment and interest.
According to Adekomi, most workers will not have anything left to feed themselves, let alone transport themselves to their places of work. Because of this, he said the strike would continue.
The NLC chairman said, “We appreciate the efforts of the government to see that salary and pension arrears are settled without further delay. Our negation with the government is that out of eight months owed us, the minimum we can take is five months to resume work.
“As it is now, the strike continues while negotiations also continue. I appeal to all workers in the state to continue to stay at home until further notice.
“This payment is as good as no payment, because all deductions must have been made by our various banks. Because of this, there won’t be money for us to transport ourselves to work and feed our families.
“Until we have enough money to feed and take care of our transportation to work, we will not resume work. The strike continues.”
The governor had on June 14 promised to pay workers’ salaries in a statement made available to our correspondent by his media aide, Mr. Semiu Okanlawon
Most workers were being owed seven months’ salaries but the statement was silent on whether the governor would pay all outstanding salaries or he would pay a part.
The statement read in part, “Before the end of June, workers would be paid their salaries.”
The governor stated that he had a great dream for the state and that was why he was in a hurry to begin many programmes which had earned him applause even outside the country.
He said further, “The dream has not gone awry and it is a clear vision that Osun must be on its feet, self-reliant and be a reference point in Nigeria. The race to ensure development within the first term of Aregbesola was informed by the fear of what is happening now.”