THE NIGERIAN ECONOMY & DEVELOPMENT [Archive] - Page 7

Matthias Offodile

April 22nd, 2008, 09:29 PM

Hope springs from Nigeria’s offshore oil

By Matthew Green in Lagos

Published: April 16 2008 23:09 | Last updated: April 17 2008 20:05

Seen from the porthole of a Super Puma helicopter skimming over the Atlantic, the future of African oil exploration appears for a second like a giant, fire-breathing dragon.

Towering 12 storeys above the waters off Nigeria, Royal Dutch Shell’s mammoth Bonga facility puffs a constant plume of flame as it sucks oil from below the ocean floor.

Shell sees Bonga’s start-up in November 2005 as heralding a new era of deepwater operations in Nigeria, where a series of recent reports have revealed the depths of its difficulties onshore in the swamps of the Niger Delta.

President Umaru Yar’Adua’s energy advisers warn that the country’s oil output could fall by a third by 2015 unless it succeeds in plans to boost investment in its joint ventures in the delta, of which Shell’s is the biggest, according to a report obtained this week by the Financial Times.

The report followed a warning late last year by a senior executive in Shell’s Nigerian joint venture that funding gaps imperilled the future of the 50-year-old onshore operation, which has also been hit hard by militant violence.

But for Shell and other western groups, a growing fleet of Bonga-style vessels destined for west Africa’s offshore oilfields are a symbol of hope in an increasingly fraught struggle to replace diminishing worldwide reserves.

“It never stops production,” Godwin Itamah, Bonga’s offshore installation manager, said while standing on a gantry amid the floating jungle of pipes, chimneys and turbines. “We’re producing oil every second of the day.”

Questions remain over the pace at which Shell and its peers can exploit west Africa’s offshore potential.

Costs of projects are rising fast, in line with a global industry trend, while there is uncertainty over whether Opec quotas will put a brake on offshore growth in Nigeria and Angola.

Both countries have been making increasingly assertive demands on Western groups to involve more local companies, which can sometimes cause delays.

“The governments have got much tougher [on local content],” said Will Rowley, director of analytical services at Infield Systems, the data analysts. “That puts a real constraint because if there aren’t the companies with the depths of skills you end up coming up against a brick wall.”

Bonga and other FPSOs – floating production, storage and offloading facilities – are moored so far off the coast they are considered relatively safe from the kind of attacks that have shut down much of Shell’s output in the swamps of the delta.

Oil tankers can fill up via a buoy linked by long pipe to Bonga’s hold, a bit like cars pulling up at a petrol station, before shipping the sweet, light crude to US refineries. Nigeria is already among the top five suppliers of oil to the US and by some estimates West Africa could provide a quarter of the US’s oil imports within seven years.

The US navy has launched a permanent training programme for the region’s maritime forces to ensure the crude flows undisturbed.

Warnings this week from a Russian executive that the country’s oil production might have peaked have only underlined declining production in the world’s more mature fields, but West Africa is growing fast. Shell, BP, Chevron, ExxonMobil, and Total pumped 24 per cent of their total production last year from West Africa, compared with 16 per cent in 2001, according to data from John S. Herold, the energy consultancy.

Bonga alone produces 225,000 barrels per day (bpd) – about 10 per cent of Nigeria’s output – as well as gas to feed an onshore liquefied natural gas plant.

Named after a local species of edible fish, Bonga is part of a growing shoal of similar vessels. Infield Systems estimates FPSOs in the region will more than double from their current 27 by 2013. West Africa’s deep and shallow water oil production could rise from about 5.5m bpd this year to about 9.2m bpd by 2015, the consultancy predicts, provided the oil companies can overcome all the hurdles.

The progess report, seen by the Financial Times, highlights the government’s need to find ways to finance the oil industry in the country. It comes after an internal memo from the Shell Petroleum Development Company late last year that said funding problems could put the existence of the company’s joint venture with the Nigerian government at risk. The fresh warning could add to supply fears that have pushed oil prices to fresh records this week and saw prices reach a record $115.45 a barrel on Thursday.

Traders are already worried about Russia’s oil production, considered critical to keep up with Asian demand, after warnings from industry executives that production there has peaked at about 10m barrels a day.

Mr Yar’Adua’s advisers include former Opec secretary-general Rilwanu Lukman, who chairs a committee created to draft proposals for an overhaul of Nigeria’s energy sector. The government hopes the reform process will help double production in Africa’s biggest crude exporter from its current 2.1m b/d.

The report says funding shortfalls “portend a grave danger not just to the reform process, but to the continued well-being of the industry as a whole”, adding that even if funding levels are maintained “total oil and gas production will decline by 30 per cent from its current level by 2015”.

The government’s failure to pay its share of costs of the joint ventures with companies such as Shell, ExxonMobil and Chevron, is one of the biggest obstacles to raising production.

The Nigerian government and Shell declined to comment.
Copyright The Financial Times Limited 2008

sammyjay77

April 22nd, 2008, 10:29 PM

The disdainful treatment of Nigerians abroad

THE spate and frequency of attacks on Nigerians living or in transit in foreign countries are serious and worrisome occurrences that should elicit commensurate responses from the Federal Government and its agencies. More often than not Nigerians in foreign countries are treated with much disdain by their host governments and the security agencies, with little or no intervention or response by the Nigerian government.

If the first responsibility of government is the security and well being of its citizens wherever they might be, the least the Nigerian victims of such attacks and disdainful treatment in foreign countries would expect is that their government would take action at the highest level to ensure their protection.

Every country takes action, or is expected to take action, to advance and defend its interests. This is why the principle of reciprocity has evolved into a cardinal instrument for managing relations between states. We expect the federal government to approach the nation's foreign policy from this premise as a means of ensuring that our citizens are accorded the respect and protection they deserve in their host communities.

The latest incident revolves around citizen Ekele Mbakwe, a Nigerian shopkeeper in the Hillbrow area of Johannesburg, South Africa, who was shot and wounded by a police officer. The victim asserts that he was inside his shop one afternoon attending to his customers when he was shot by one of the two police officers in a patrol car. Not having committed any noticeable offence the victim could only conjecture that the shooting may not have been unconnected with the fact that at an earlier meeting between the police and Nigerian consular officers, he had challenged the police director to produce the police officer who had shot another Nigerian the previous week.

Mbakwe's experience occurred barely a week after the same police organisation had apologised to the Nigerian Consulate in Johannesburg over the incessant shooting of Nigerians in the city. His story is one more incident in a catalogue of police brutality against Nigerians in South Africa. According to media reports, at least 84 Nigerians have been killed in South Africa since December 2007. We also recall that the Noble Laureate, Prof. Wole Soyinka, was treated very disdainfully by immigration officials at Johannesburg international airport in 2005. Numerous other Nigerians have received similar treatment as well. Others have been victims of armed robbers who have apparently followed them from the airport to their homes or hotel rooms.

What is even more worrying about these incidents is that there has been little or no response from the Nigerian government. Which makes us wonder what the purported "Citizen Diplomacy" concept being bandied about by the current Minister of Foreign Affairs, Chief Ojo Maduekwe, is all about! Surely, any foreign policy that cannot protect the country's citizens wherever they might be deserves to be revised. Or, is "Citizen Diplomacy" not aimed at protecting Nigerians in the Diaspora?

We note that the House of Representatives has passed a resolution urging President Yar'Adua to seek an explanation of the killings from the South African government. The House is certainly right to call into question the relevance of the bilateral trade agreements between Nigeria and South Africa. The members' concern that the South African government is not reciprocating the sacrifices Nigeria made to free the country from the clutches of the apartheid regime is also legitimate. Nigerians surely deserve to be treated more humanely by the agencies of the South African government.

Of course, we cannot ignore the fact that Nigerians receive less than humane treatment from their own government and its agencies. Police brutality against the citizen is a common feature of our own society. Nigeria's image abroad is that of a country that is congenitally corrupt; where the very basic necessities of life are denied the citizen; where basic infrastructure does not work; where leaders steal rather than serve; a country where even the highest officer of the law can be assassinated with impunity. If this is the way our own government treats its citizens, are we surprised that other countries follow our example?

The resolution to the problem then lies first in putting our own house in order. Government should ask why Nigerians prefer to live as second class citizens in foreign countries rather than stay at home. Human nature being what it is, most Nigerians will choose to stay in their country if their basic needs and expectations are provided for. Government has an obligation to make Nigeria conducive for all Nigerians. Thereafter it should follow a foreign policy agenda that is anchored on the principle of reciprocity. Countries have to pay a price for treating our people disdainfully and reap benefits for treating them as they treat their own citizens.

Tbite

April 23rd, 2008, 09:26 AM

Property empire one of biggest in Africa

Property development company Acc-Ross Holdings said last week it had entered into an agreement to acquire Pinnacle Point Holdings for R1.5-billion.

The two companies’ gross sales value is estimated to be more than R35-billion, expected to be realised over a 10-year period.

The new Acc-Ross and Pinnacle group will be headed by former South African Chamber of Mines chief executive Lazarus Zim, as chairman.

AltX-listed Acc-Ross said the grouping with Pinnacle would have significant resort, residential, leisure, hotel, retirement, commercial and gaming development opportunities, with assets situated in South Africa, Mozambique, the Seychelles and Nigeria.

The purchase of Pinnacle will be paid for through an issue of shares, and 60percent of the shares would be owned by Pinnacle.

Zim, a mining entrepreneur who is also Pinnacle’s 26percent black empowerment partner, is said to have been a critical element in Pinnacle’s success in development agreements in Nigeria.

Zim said on Friday the merger would create one of the largest lifestyle development companies in Africa.

He said the combined operations would give the group critical mass to finance existing projects and give it easier access to large development opportunities beyond South Africa’s borders.

“We will now be able to tap into financial markets and help investors to become part of a larger player in this market,” said Zim.

“A substantial portion of our earnings will be US dollar and Euro based. We have now formed the foundation to consolidate our combined developments.”

Pinnacle recently secured agreements with the Nigerian government and development group Unibright to develop a luxury golf estate in Lagos.

adebayoa

April 23rd, 2008, 05:21 PM

Mittal Sues Nigeria over Ajaokuta Steel Company

:ohno::ohno:

I think that they are just looters. Obasanjo sold them a company worth 6 billion dollars for just 500 million dollars, on top of that, most of the company's assets were stripped and shipped abroad.

sammyjay77

April 23rd, 2008, 05:41 PM

Nigeria: Country Emerges As India's Biggest Trading Partner in Continent

Nigeria emerged India's biggest trading partner on the African continent during the 2006/2007 trading year, THISDAY can reveal.

India's exports during the period stood at $901.03 million as against her imports which was $7.021 billion. India's import from Nigeria is basically oil.

An analysis of the trading figures released by India's Department of Commerce involving the two countries showed that Nigeria had a trading surplus of about $6 billion during the period in review .

The data released by the agency also confirmed the West African sub-region as India's biggest sub regional trading partners on the continent.

West African states accounted for $10.62 billion out of the $24.96 billion total trade volume generated between India and Africa.

The South African sub-region came second as it recorded a total of $5.73 billion trading result with India. Out of this, South Africa led others with exports and imports valued at $4.7 billion.

The North African sub-region came third with a total trade volume of $5.20 billion, with Egypt accounting for $2.9 billion of the total sum. Algeria came second to Egypt, accounting for $1.08 billion.

Both the East and Central African sub-regions came fourth and fifth respectively with $3.17 billion and $231.79 million. Kenya had the biggest trading relationship with India, accounting for $1.36 billion of the total sum.

Overall, Africa accounted for 8.12 per cent and 7.98 per cent of Indiaís global exports and imports respectively during the period under review.

sammyjay77

April 23rd, 2008, 05:43 PM

FG Seeks Chinese Investment in Free Trade Zones

The Federal Government's quest for foreign direct investment and diversification of the nation's economy will get an added boost, when the 6th Nigeria-China Business and Investment Forum (NIPC) gets underway in Hangzhou, China tomorrow.

Also, a Presidential delegation under the auspices of the Ministry of Transportation, will use the opportunity offered by the Forum to canvass for Chinese investment in the transportation sub-sector of the economy.

Executive Secretary of NIPC, Mr Mustafa Bello, said the twocities of Hangzhou and Nanjing were chosen to host this year's event, following the interest of Nanjing Jiangning Development Zone and Hangzhou Provincial governments in setting up and investing in the country's Free Trade Zones.

Bello, who sounded upbeat about the prospects of new investments, especially in the nation's free trade zones, said already, a Chinese firm, GDIG has commenced construction of a $500 million Export Processing Free Trade Zone in Ogun State.

He said because of the trade imbalance between Nigeria and China, which favours the later, the NIPC considered it essential to focus both on export-oriented trade opportunities and avenues for the encouragement of direct investments by the Chinese in the Nigerian economy, especially in the Free Trade Zones.

The theme for this year's Forum is "Investing in Nigeria's Free Trade Zones."

Nigeria's delegation to the event is headed by Minister of Commerce, Charles Ugwuh.

sammyjay77

April 23rd, 2008, 05:46 PM

Yar’Adua orders investigation of maltreatment of Nigerians by foreign airlines

President Umaru Yar’Adua has directed the Minister of State for Transportation in charge of Aviation, Mr. Felix Hyatt, to investigate reports of maltreatment of Nigerian passengers by foreign airlines.

The President, according to a source in the Presidency, was particularly miffed at an incident that took place on March 27, 2008, in which British Airways allegedly ordered over 100 Nigerians off its London–Lagos bound flight.

The passengers were reportedly protesting the brutal treatment of a Nigerian deportee aboard the flight.

The source said that Yar’Adua also directed the Aviation Minister to officially notify all foreign airlines operating in the country that the Federal Government would no longer tolerate the maltreatment of Nigerian passengers aboard their aircraft.

The source added that Yar’Adua expressed disgust at the nonchalant attitude of British Airways officials in response to the incident.

The President, it was learnt, also asked the minister to furnish him with a report of the development on the completion of the investigation.

The source explained that the President had so far not received any official report on the British Airways incident, and was only informed by reports in the media.

The source said, “The President is said to be concerned by the recent resurgence of complaints about the poor treatment, discrimination and downright abuse meted out to Nigerians by some foreign airlines operating in the country.

“The President has also directed the Minister to make it absolutely clear to all foreign airlines operating in Nigeria that under no circumstance will his administration tolerate the subjection of Nigerian passengers to less than acceptable standards of treatment.”

In another development, the President on Tuesday telephoned Lagos lawyer and human rights activist, Chief Gani Fawehinmi (SAN), in London to convey his personal best wishes to him on the occasion of his 70th birthday anniversary

sammyjay77

April 23rd, 2008, 05:53 PM

Nigeria, Sao Tome & Principe to drill six more oil wells in JDZ

SIX more oil wells are to be drilled in blocks 2, 3 and 4 by the contracting parties in the Joint Development Zone (JDZ) of the Nigeria-Sao Tome & Principe Joint Development Agency (JDA) in 2009.

Mr. Jorge Do Santos, the Chairman of Nigeria-Sao

Tome & Principe (NSTP- JDA) made this known yesterday at the University of Abuja in Gwagwalada.

The chairman said that two licensing rounds had been conducted, which yielded more than $400 million in signature bonuses and other collectibles.

Santos spoke at the presentation of 22 desktop computers to the university by one of the oil companies operating in the JDZ.

"Spirited efforts are being made to secure deep offshore rigs for the drilling of these blocks," Santos said.

On the achievements of the JDA since its inception in 2002, the chairman said that one exploratory well was drilled by Chevron in Block 1 in 2006 in which hydrocarbon had been encountered.

He said that six blocks had been awarded in the JDZ out of which four blocks had signed Production Sharing Contracts (PSCs) with Chevron operating Block 1, Sinopec Block 2, Anadarko Block 3, and Addax for Block 4.

Santos said that in the non-hydrocarbon area, a marine survey had been inaugurated.

He said that the first phase had been completed to provide the desired data for the exploration of the non-hydrocarbon resources of the JDZ.

He said that through the various contracting parties scholarships to deserving nationals and projects that would improve the social welfare of the `States Parties' had been executed and would continue.

Santos said that so far, 312 postgraduate scholarships were awarded Nigerian students in 2006 and 255 both in 2007 and this year.

"Seven government secondary schools in the six-geopolitical zones have started benefiting from the modest contribution since 2006 and it will continue yearly.

"Similar projects and scholarships are being undertaken in the Democratic Republic of Sao Tome & Principe," he said.

Anadarko JDZ Block 3 Limited made the computer donation under the corporate social responsibility clauses of the PSCs, which the firms signed with the JDA.

The NSTP-JDA treaty established the area of overlapping maritime boundary of the two countries as a JDZ.

Signed for 45 years subject to a review after 30 years, the treaty provided for contribution and sharing of proceeds on a 60:40 ratio (Nigeria, 60 per cent, Sao Tome & Principe, 40 per cent).

sammyjay77

April 23rd, 2008, 06:04 PM

Nigeria to oblige oil companies to refine output

Nigeria is planning legislation to oblige international oil companies to refine a proportion of their crude in the West African country, a Nigerian state oil official said on Wednesday.

"Everybody producing in the country will be mandated to refine a percentage in Nigeria," said Sola Alabi, Group General Manager for refinery projects at the Nigerian National Petroleum Corp. (NNPC).

Alabi said the legislation had been under discussion for two years and was due for approval soon.

Nigeria is proposing the move as a way to reduce its dependence on imported fuel. The country's four state-owned refineries have frequent production problems and proposals to award investors oil blocks if they build refineries have failed to lead to the construction of new plants.

Speaking at a refinery conference in Barcelona, Alabi said there would be no direct requirement for oil majors to take a stake in the new refineries as a condition for upstream activity.

NNPC hopes to build two new refineries, each with a capacity of 200,000-300,000 barrels per day (bpd) to narrow a gap between output and demand for products, which is expected to widen with projected annual economic growth of 5-10 percent a year through 2020.

The corporation plans to take a stake of 30-49 percent in each refinery, and hopes oil majors will take 21-30 percent. One of the fiscal incentives to be offered will be pricing crude at international market levels, Alabi said.

Alabi said Nigeria can only produce 445,000 bpd of crude equivalent in products while demand is currently 600,000.

In Nigeria, the world's eight-biggest crude oil exporter, the government of former President Olusegun Obasanjo, issued 18 licenses to private investors in 2003 to build refineries but many have since been revoked as they have not been built.

Investors agreed to build the refineries in return for oil licences but refining is loss-making in Nigeria due to price controls on fuels, so most projects were abandoned. (Reporting by Martin Roberts; Editing by Margaret Orgill)

sammyjay77

April 23rd, 2008, 08:32 PM

Nigeria's Lagos State launches $3.5 bln USD Atlantic City Project

LAGOS, Apr 23, 2008 (Xinhua via COMTEX) -- -- Nigeria's Lagos State Government Wednesday launched the 417 billion naira (about 3.5 billion U.S dollars) project named Eko Atlantic City.

The city, to be built on the reclaimed land along Atlantic bank on the Victorial Island of Lagos, will be constructed by China Communications Construction Company Ltd. (CCCC), the largest dredging company in China and third largest in the world.

The project is another milestone in the history of Lagos. The length of the development of the city is 6,500 meters and an average 1,260 meters wide. Incorporated in the development will be central waterway, 30 meters wide providing water transport facilities connecting three marinas.

The Eko Atlantic City project involves the reclamation of eight square meters of land from the Atlantic Ocean through sea-bed dredging in an environmental friendly process.

Babatunde Fashola, the Governor of Lagos state, said the project would be a haven for commerce and industry as well as serve as an exclusive tourist experience.

He said the city was the first of its kind in West Africa and serve to boost Lagos as a mega-city.

"The Atlantic City on completion targets 250,000 residents and 200,000 commuters flowing daily to the Island to work," he said.

Adesegun Oniru, the state Commissioner for Waterfront and Development said the city would combine residential, commercial, financial and tourist accommodation in a location serviced by a state-of-the-art high tech infrastructure.

He said the project was being handled by a private developer, South Energyx Company at no cost to the state government, while the state stands to gain from it.

"Such gains include employment opportunity for not less than 50, 000 people. The sorting of approval by the developer will also generate income for the state government," he said.

Meng Fengchao, president of China Communications Construction Company Ltd., said the project will benefit Nigeria's economic growth and the modernization of Lagos, the economic hub of Nigeria.

He said his company will surely complete the reclamation and construction project so as to promote the friendship between China and Nigeria

AT LONG LAST IT HAS BEEN LAUNCHED!!!!. Now am really happy

sammyjay77

April 23rd, 2008, 08:48 PM

Okocha To Employ 1,000 Nigerians

Former Super Eagles’ captain, Austin 'Jay-Jay' Okocha may have finally shifted his attention fully to business, inspite of Hull City's hopes of promotion to the English Premier League.

Friday Nwankwo Kujah, a close associate of the midfielder, has disclosed that the former Bolton star was in the process of starting up a conglomerate which would employ at least 1000 Nigerians.

"Jay Jay is thinking beyond football now," Kujah said. "He is setting up a huge business enterprise that will include construction, telecommunications, transport and real estate.

"Already, he has got technical partners from Europe and the last time he was in the country, they were interviewing people for jobs. The company will provide jobs for over one thousand Nigerians."

According to Kujah, June is the projected start-up date of the project.

Michaelda

April 23rd, 2008, 10:24 PM

I don't know if this has been posted. Thought it was worth posting.

I think this is a very positive move forward. I admittedly know little about Nigeria and its politics so I'm not sure how effective/powerful parliament is.
Regardless, I believe that quite a bit of progress has been made in the last few years even if some corruption allegations have been made against Obasanjo.
I could be wrong, but it seems like every leader is a little better than the one that preceded him, right? So one step at a time, things are changing.

you're correct he is better. not the best but a better president

sammyjay77

April 23rd, 2008, 11:24 PM

you're correct he is better. not the best but a better president

You right...not the best but better. Those are the right words

Rdokoye

April 24th, 2008, 03:51 AM

OHAKIM FLAGS OFF FREE MEDICAL SERVICES

Hopes of many to receive free medical treatment and surgeries received a boost in Imo state as the wife of the state Governor, Barr Chioma Ohakim flagged off a free medical exercise in collaboration with Imo medical Doctors based abroad.
The flag off held at the Imo state University Teaching Hospital (IMSUTH), Orlu with the Commissioners of Healthand information in attendance.

In her address she said one of the cardinal objectives of Governor Ikedi Ohakim’s administration is to create a partial welfare state where education and health care delivery is made available to all who cannot afford it free of cost.She added that with a health policy thrust of providing a comprehensive, accessible, and affordable health care delivery system that is efficient and effective for a healthy and productive Imo population, government partners with Doctors and health workers of Imo state origin to improve medical mission.

She explained that the free medical mission in Imo state holds twice in a year, first in December and the other in April,saying last April, over 355 patients received free surgical operation whileover 9500 patients with general ailments received free medication in the 23treatment centres, and 600 patients with eye problems also treated.
She commended the Medical Experts from USAfor sacrificing their time, resources, and leisure for the good people of Imostate and charged other groups to support government make the state better.

Ohakim noted that persons or groups organising free Medicare in any part of Imo state must collaborate with thestate Ministry of Health to ensure only qualified and certified medicalpersonnel are allowed to handle patients and to help in record keeping.
She was also taken on a tour round thehospital facilities during which she paid the hospital bills for MessersEzikeugo Cyril and Ikechukwu Obidiezie of N325, 000 and N82, 000 respectively following their inability to foot their bills themselves.

Imo state commissioner for Health, Dr Vin Udokwu said the team of medical experts came with medical equipment and drugsto treat the sick adding that it was a contribution of the Imo State Congressof America to promote the state.He disclosed that the surgeries will bedone at the General Hospital Owerri and Imo State University teaching Hospital Orlu where eye problems and general diseases will be treated at designatedtreatment centres.
He explained that government is working out modalities to introduce total free medical services to children less than fiveyears of age and to pregnant women, saying when it is ready, everyone under thecategory will enjoy free Medicare.

The Medical team consist of two groups, the surgeons and the medical personnel. Leader of the Medical team, Chief Ekele Amaefule disclosed that the mission was initiated as a means of assisting government adding that the mission will be more beneficial on cases involving surgeries.
On her part, head of the surgical team, Dr Chikenna Obi said they hope to have impact on the society adding that it was away of helping to improve their home state by improving the health of the people.

Chief Medical Director of IMSUTH, Prof Chukuezie called on the state government and the medical mission to help complete their Radiology building so that their CTSCAN, MRI, Flouroscopy, Angiography and Mammogram equipments that are lying in containers can be installed.
According to him, the hospital since inception has dialyzed over 300 patients saying daily they render effective andefficient services to Imo people through the specialized units like Dialysis.

The free medical mission will run for two weeks in different centres in the state.

ufookoro

April 24th, 2008, 09:36 AM

Nigeria, China seal $50bn oil-for-projects deal
Stories By Bassey Udo, Assistant Business Editor

China has unfolded plans to commit between $40billion and $50billion in investment in the nation';'[s oil and gas sector, Finance Minister, Shamsudeen Usman, has said.

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"The Chinese have been very clear and aggressive in terms of their commitment to Nigeria," Usman told Dow Jones Newswires at the weekend

The implications for Western nations is "that they need to wake up and really determine what their strategy is for Nigeria and for Africa as a whole," Usman said, adding that the current pace of development in Africa is comparable with that of India or China 15 years ago, when only "those who moved in quickly and took advantage are today reaping the benefits."

China's export credit guarantee agency, Sinosure, has offered $40 billion-$50 billion to help fund infrastructure projects in Nigeria over the next three years, after President Umaru Yar'Adua visited Beijing with a delegation of oil industry and business leaders last February.

Sinosure will provide capital backing to Chinese or Nigerian companies investing in critical infrastructure in the oil-rich country, with Nigeria expected to repay the bulk of the loans with crude oil.

Non-government groups and some Western governments have criticised China for its lack of transparency, alongside its human rights record, as it increasingly strengthens its position across the African continent.

Usman said there is a "huge potential" for developing Nigeria's poor gas pipeline infrastructure or in joint venture partnerships, adding that Nigeria has gas reserves estimated at 184 trillion cubic feet, and government recently passing a series of new policies aimed at regulating the burgeoning market as it seeks to develop both its domestic and export markets.

Meanwhile, Algeria and Nigeria will sign a preliminary agreement formalizing their intention to build an ambitious natural gas pipeline that would link some of Africa's largest gas reserves to Europe, Algeria's energy minister said.

This ambitious and long-stalled project would ship up to 30 billion cubic meters of natural gas annually to Europe.

Nigeria has also agreed to expand its liquefied natural gas project in Bonny Island, southeast Nigeria, in a joint venture between the Nigerian National Petroleum Corporation (NNPC), Shell, Eni SpA and Total SA. The venture is expected to generate $1 billion in revenue annually.

The country's new gas policy will open up "tremendous investment opportunities, both for foreigners and for Nigeria, since that gas is needed for power plants, for further processing domestically into industrial products," though that involves the creation of infrastructure to distribute gas domestically, Usman added.

Usman also said some discussion is underway on the possibility of establishing a sovereign wealth fund drawing on some of the country's $60 billion in foreign exchange reserves, a quarter of which comes from the excess crude oil revenues.

"We clearly hope to have something along those lines," he said, without giving further details.

Sovereign wealth funds are government-owned investment vehicles, funded by foreign currency reserves but managed separately, that are invested in capital markets for profit.

Matthias Offodile

April 24th, 2008, 10:42 AM

Nigeria's Lagos State launches 3.5 bln USD Atlantic City Project

Website, please!!!???

I am longing for CONCRETE and more in-depth information about it, just a short article is not very in-depth, we need to pursue this CAREFULLY!:)

Matthias Offodile

April 24th, 2008, 10:43 AM

Nigeria to oblige oil companies to refine output

THIS SHOULD HAVE BE DONE AGES AGO!!!

But better noe than never!

Tbite

April 24th, 2008, 11:21 AM

^^ If all these ambitious projects are completed, urban centres such as Lagos will be unrecognizable.

I don't doubt that this is a feasible development, but lack of marketing or the snail pace of such developments is simply reflective of the primitive stage that the Nigerian Construction Market is in. The hurdles that have to be overcome etc.

So for while to come, this developments will remain shrouded and uncertain, but these are signs of development, all cities with huge developments start of like this. The fire must start with a spark.

Matthias Offodile

April 24th, 2008, 11:35 AM

If all these ambitious projects are completed, urban centres such as Lagos will be unrecognizable.

For that Lagos needs many many more roads, clover-leaf highways, flyovers, around 10-15 states-of the art malls, state-of-the art entertainement facilities, mooooooooooooooore high-rises commercial and residential, mooooooooooooooorrrre top-end hotels, massive slum reduction, the Fourth Mainland bride etc.

let´s say when these projects get built, Lagos will look different...but in order to make it unrecognizable, you need hundreds of billion US dollars in private and public investment just alone for Lagos. Look at the incredibla spending spree in Chinese cities like Shaghai, normally Lagos should be there given its population size...or the money it took to transform Tokyo into what it has become today.

I don't doubt that this is a feasible development, but lack of marketing or the snail pace of such developments is simply reflective of the primitive stage that the Nigerian Construction Market is in. The hurdles that have to be overcome etc.

Very well said!

So for while to come, this developments will remain shrouded and uncertain, but these are signs of development, all cities with huge developments start of like this.

For example?

The fire must start with a spark.

Just like a poet, methaporical language!:cheers:

Matthias Offodile

April 24th, 2008, 12:04 PM

here is an older article concerning the project

820 hectares Lagos ‘Atlantic City’ rises from reclaimed Bar Beach

01 April, 2008 12:00:00 JOSHUA BASSEY

Succour may be coming the way of investors and business organisations faced with the shortage of land on Victoria Island as Lagos plans to reclaim over 820 hectares from the Atlantic Ocean.
The land is for the development of what is proposed the next generation of property in Africa.
The multi-billion naira development to be known as “ Eko Atlantic City” will combine residential, commercial, financial and tourist accommodation in a location to be serviced by a state-of-art, high-tech infrastructure.
Business Day learnt last night that the nation’s leading financial institutions are jostling for a share of the pie via project financing.
And the growing band of the rich in the city are hoping to be the landlords of what will easily become Africa’s most attractive pieces of property.
The project, which will be bigger than the current size of Victoria Island, is to be developed by the Chagoury Group, one of West Africa’s leading construction firms under the public-private-partnership (PPP), an initiative that is fast gaining ground in this part of the world.
The development would incorporate central waterway of 30- metre wide to provide water transport facilities connecting the marinas.
Other facilities will include an international standard road network, surface drainage, dedicated electrical power generation plant with underground distribution, water supply, treatment and distribution mains, sewage collection mains with a modern treatment plant, a network of service ducts to provide IT services as well as post- construction maintenance and management facilities.
Lagos State commissioner for waterfront and infrastructure development Segun Oniru told Business Day that the overall concept of the Atlantic City is to restore the land lost to coastal erosion since 1905 as well as provide permanent solution to the erosion.
The development, according to Oniru, targets over 25,000 residents, and 200,000 commuters flowing daily to the Island to work. “All- in –all, this does not represent more than 3 percent of Lagos’s current population,” Oniru said.
He explained that the land for the development of the city would be reclaimed in a seabed dredging from the Atlantic Ocean in an environment-friendly process without leaving an impact on the marine life.
“The overall area to be reclaimed is 820 hectares or 8,200,000 square metres. The total length of the development is 6,500 metres and on average 1,260 metres wide. To the western boundary of the development is existing east mole constructed between 1905 and 1908 to protect the Lagos harbour entrance. To the east boundary is a revetment of 920 metres in length and incorporates a large Marina with access to the sea.
The north boundary is the existing Victoria Island and more specifically the existing Ahmadu Bello Way highway, which is planned to be extended to eight-lane highways known as coastal road under proposed government planning,” he said.
“In the past couple of years, this land was lost to the Atlantic Ocean due to the slow erosion of Lagos beaches by the ocean. The proposed design would include protective breakwaters on its outer perimeter to provide shelter from the ocean waters.”
The breakwater, the commissioner added, would be designed as a submerged and immerged wall utilising advanced x-blocks and enormous x-shaped concrete blocks designed to dissipate the energy of waves.

sammyjay77

April 24th, 2008, 01:30 PM

Website, please!!!???

I am longing for CONCRETE and more in-depth information about it, just a short article is not very in-depth, we need to pursue this CAREFULLY!:)

The news is a bit sketchy at the moment...lets see how things develop.

sammyjay77

April 24th, 2008, 01:35 PM

4th Lagos Economic Summit: The dream, the challenges

The Lagos Economic Summit (LES) is currently in session with the theme: "Making Lagos Africa's Model Mega-City".

The summit, the fourth in the series, is expected to address pertinent issues that beset Lagos as an evolving mega city and chart a new course for the actualisation of the dream of the current administration for a world class mega city.
A vast array of participants and stakeholders at this summit include Business leaders, Financial Institutions, Investors, Traditional rulers, industry leaders, Politicians and the academia among others.
The summit is significant for many reasons. For one, Lagos obviously plays a prominent role in the economic development of the nation. For instance, between January and May 2000, the state government generated over N1.34 billion as VAT revenue to the federation account. This figure represents no fewer than 60 percent of total revenue collected throughout the federation within the same period, which by September 2000, stood at N43 billion.
Second, over 70 percent of total national cargo freight comes in through its ports. This explains why 50 percent of the entire nation's ports revenue comes from Lagos. The figure released for year 2001 first quarter revenue collection by the various Commands of the Nigeria Customs in Lagos revealed that Tin Can Island generated N12.4 billion, Apapa N18.8 billion and Kirikiri N1.2 billion.
Lagos state has been in the forefront of growing its internally generated revenue. It was the only state out of the 12 states that had a low degree of dependence on statutory allocations where about 28 percent of the states budget was from the federation account. This was at a time when other states were recording over 70 percent dependence on federal allocation. With the present 36 states structure the situation never changed.
The boost in internally generated revenue was due to the predominance of commercial industries, financial institutions, port facilities, presence of viable international and airports in the state. Virtually all manufacturing industries in the country have their head offices in Lagos.
In spite of the enormous potentials and achievements, the socio economic impact of pressure on the facilities is equally challenging. It is estimated that daily human traffic within the Mainland and Island is about 6 million vehicles daily. The state has the highest vehicular density in the country of over 222 per km while at the national level it was 11 kilometre as at 1998.
The state is endowed with an interesting demographic data. According to a UN study, the rate of population growth is about 600, 000 persons per annum with a population density of about 4,193 persons per square kilometre. In the built-up area of the state the average density is over 20,000 persons per square km. By 2015 the state's population is expected to hit over 24.5 million from a population of 5.8 million in 1985. At this figure, Lagos is expected to become the third largest most populous city in the world and fastest growing in the country.
Again, current demographic trend analysis indicates that the states population growth rate of 8 percent has resulted in its capturing of 36.8 percent of Nigeria's urban population.
The implication is that whereas the country's population growth is 4-5 percent and global rate is 2 percent, Lagos population is growing ten times faster than New York and Los Angeles with grave implication for urban sustainability.
This impact has far reaching implications for the state. First is the overwhelming pressure upon the infrastructure and public utilities as well as the disorganised state of affairs. For instance, there are shanty stores at various strategic points of the state, which constitute hideouts for criminals. Some of the major highways are clogged with assorted junks, abandoned cars, buses, trailers and motor bikes.
The drainages are completely filled to the brim and wastes are hardly carted away in some parts of the state. The stench from the drainages and refuse dumps constitute serious health hazards.
Will this summit address these pertinent issues and more?
It is comforting that since the inception of the administration of Raji Fashola, there has been a significant rev of development taking place simultaneously all over Lagos, which has seen the beautification of the strip stretching from Oworonsoki to the old toll gate. The Lagos Central Business District (CBD) has equally received a facelift. The onslaught on street trading, the state's investment in Micro finance, massive road maintenance, and the huge investment the state is making in the area of infrastructure, all point to one fact, that something good is really happening in the state. So far the state claims to have rehabilitated over 66 roads in the last four months and in a bold move to tackle the scourge of poverty, the state government has outlined the shape of its proposed microfinance scheme, where it proposes to inject over N5 billion. We are equally not oblivious of the launch of the BRT buses.
The governor has indeed expressed his desire in various fora to transform the state into a global financial and economic hub that is safe, secure, functional and productive.
What we expect is that the summit will help the present administration in Lagos state actualise its dreams of transforming Lagos into a mega city, which the state government, all stakeholders, the public, Nigeria and entire Africa will be the ultimate beneficiaries.

pappy

April 24th, 2008, 08:58 PM

Fashola is actually doing something.

oshon

April 25th, 2008, 03:31 AM

Finally, Lagos Embarks On Light Rail Project
By FEMI AKINOLA

Lagos State Government Wednesday announced that it has designed a rail project in Lagos West Senatorial District to complement the existing road-based public transportation system that has become congested.
The proposed rail mass transit system scheduled to run between Agbado-Marina and Okokomaiko-Marina was designed to take a significant portion of the traffic away from the existing road system.
Governor Babatude Fashola made the disclosure while delivering a keynote address during the opening ceremony of the fourth Lagos Economic Summit, Ehingbeti 2008.
The project, according to the governor, is to build and operate a modern, fast and reliable rail based commuter service that will improve road traffic safety, increase travel efficiency and worker productivity, increase and spread economic activity throughout the city state and improve quality of the environment.
He said "the government has pledged to offer good governance, remain accountable to the people and be transparent in all its affairs saying "our government will encourage genuine and sincere investors and provide all assistance necessary to make investor's investment safe, and deliver appreciable returns".
Governor Fashola also acknowledged the importance of the private sector in infrastructure development. "The private sector holds the key for infrastructure renewal through its managerial, organizational and technological innovation .Speaking on the state Economic Summit, the commissioner for Economic planning and Budget, Ben Akabueze said it is a critical process designed to review the state economy towards making significant policy that will move Lagos forward.

pappy

April 25th, 2008, 07:15 PM

Lagos targets N15bn monthly IGR in 2008

The Lagos State Government has said it is targeting N15bn monthly internally generated revenue before the end of 2008.

The monthly IGR of the state has moved from N600m in 1999 to the current level of N10.75bn per month.

Speaking at the 4th Lagos Economic Summit, Governor Babatunde Fashola, said a virile revenue system was needed if the state would be placed on a better pedestal to borrow from the banks.

Currently, the state’s IGR for five years increased by 215 per cent, reaching N94.85bn in 2007 from N30.09bn recorded in 2003.

The governor said the huge success recorded in terms of revenue generation within the shortest period of time was also part of te resolution of the 2002 summit.

While commending the intiator of the summit and the immediate past governor of the state, Senator Bola Tinubu, Fashola said the state’s IGR would continue to increase during his tenure, adding that the revenue increase was necessary to maintain the growth in the population of the state.

He said. “For the state, huge resources is required to build necessary infrastructure by way of roads, drainage, waterworks and to improve the educational and health of the citizens.

“Lagos State currently has the highest figure of revenue generated from the non-oil sector as seen by the recent report of the Central Bank of Nigeria.”

pappy

April 25th, 2008, 07:17 PM

FG to set up 6 Economic Zones

To boost the fledgling manufacturing sector and create the much-needed jobs, the Federal Government is to set up six economic zones, one each in the six geo-political zones of the country. Also, it has assured Chinese investments and indeed other foreign investors of the safety of their investments in Nigeria.

Executive Secretary of the Nigeria Investment Promotion Commission (NIPC), Mr. Mustafa Bello, gave indication of government's desire to set up the six economic zones at the opening session of the 6th Nigeria-China Business and Investment Forum (NCBIF) at the Zhejiang Narada Grand Hotel in Hangzhou, China yesterday. Bello said that the economic zones, which would cover 50 to 100 sq kms would be self sustaining and would have all the necessary infrastructure that would promote production.

He said that clusters of enterprises around these econonomic zones would service them, and by so doing realising the objective of promoting small and medium scale enterprises.

THISDAY gathered that the economic zones, a brainchild of Minister of Trade and Commerce, Mr. Charles Ugwuh, has already been approved by the Federal Executive Council (FEC).

However, the modalities for its implementation in terms of the kinds of incentives to offer to investors that may be willing to partner government has not yet been worked out.

The envisaged economic zones will bear semblance to that of Ogun-Guangdong Free Trade Zone, which materials for construction are set to leave China for Nigeria by next month.

Also, Bello assured Chinese investors at the plenary of the 6th NCBIF of the safety of their investments.

He said that the assurance is predicated on the commitment of the administration of President Ya'Ardua to the rule of law and due process. He assured prospective investors that the government would honour all undertakings with them including that on 100 per cent repatriation of their profits.

pappy

April 25th, 2008, 07:28 PM

Kwara to import 800 cows from South Africa

ABOUT 800 cows are to be imported by the Kwara State government from South African breed of Jersey diary animals to serve the Shonga Diary Factory, which will commence operations soon.

The Commissioner for Agriculture and Rural Development, Professor Mohammed Gana, dropped the hint while briefing newsmen in his office.

According to him, the improved breed of cows, which would be airlifted from South Africa, would arrive in the state today at the Ilorin International Airport in batches.

He added that the cows, said to be much efficient in milk production, would be brought in batches of 80 cows per trip for onward movement to the diary processing plant site at Shonga, in Edu Local Government Area of the state.

Rdokoye

April 26th, 2008, 02:52 AM

FG to set up 6 Economic Zones

I am happy to see the government implement Dr. Pat Utomi's policy :)

Matthias Offodile

April 26th, 2008, 07:56 PM

Oando Signs PSC, GMoU on OPL 236

Wednesday, April 23, 2008

Oando Exploration and Production (OEPL), in line with its commitment to fast track the development of its upstream assets, in Uyo, Akwa Ibom, signed a Global Memorandum of Understanding with the Ukana South 1 communities, within block OPL 236.

Prior to this, OEPL had signed a Product Sharing Contract Agreement (PSC) with the Nigerian National Petroleum Corporation (NNPC) over the same Block.

With the signing of the PSC and GMOU, Oando has displayed its readiness to commence activities on the predominantly gas Block.

Speaking on the signing of the GMoU, Mr. Eamon Labode Akinosho, Chief Operating Officer, Oando Exploration and Production said "The Global Memorandum of Understanding (GMoU) provides for choice of sustainable community development projects that rest solely with the community. This strategic agreement is a model arrangement to further enhance the trust and confidence of our host communities."

The GMoU has been designed to encourage participatory partnership with stakeholders for the promotion of peace, security and sustainable development in the area. It will also aid capacity building from the various stakeholders in the host communities.

The Block, which was awarded by the Federal Government during the 2005 round is expected to add to the gas reserve base of Nigeria. Oando Exploration and Production Limited (OEPL) have a 95 per cent operating interest, while R.F.O Ventures Ltd has a 5 per cent interest.

"The acquisition of OPL 236 is a strategic addition to our already existing asset portfolio to sustain our long term plan of industrial and domestic gas distribution. With the gas potential suspected in the block, it will enhance our gas delivery to industrial customers within the eastern part of Nigeria" Mr. Akinosho adds.

The OPL 236 field is 60km east of Port Harcourt and it covers a distance of 1652 sq. km. It is located onshore in the South East Zone in Nigeria precisely Akwa Ibom State.

It would be recalled that East Horizon Gas Networks, a subsidiary of Oando Gas and Power organised an Environmental Impact Assessment (EIA) Open Forum as part of its statutory requirements for the granting of an Oil Pipeline License (OPL) for a gas pipeline. The 18 inches diameter pipeline will run from the existing NGC Valve Station in Akwa Ibom State and will terminate at the United Cement (UNICEM) factory which is presently under construction in Mfamosing, Cross Rivers State.

sammyjay77

April 26th, 2008, 08:15 PM

Lagos To Generate 20,000 MW Of Electricity

The Lagos State government has pledged to generate 20,000 megawatts (MW) of electricity by 2015 to meet up with its energy needs.

The state needs about 13,000 MW of electricity for stable power supply, but it plans to exceed this target by generating 20,000 MW by 2015.

Stating this at a technical session on Energy at the Lagos Economic Summit (Ehingbeti 2008), the Commissioner for Establishment and Training, Mr. Jide Sanwo-Olu, noted that the initiative involves partnership with private sector organisations to develop environment-friendly energy plants, such as the hydro-power and wind power plants.

He said the state required partnership in the area of generation of power using such renewable sources as water, sun and wind.

He added that the local manufacture of components and improvement in the capacity of the networks to deliver power efficiently were areas where urgent action was needed.

Special Adviser to the President on Electric Power, Engr. Joseph Makoju, stated that Nigeria has a deficiency in the power requirement, adding that such could only be met through a planned budget funded jointly and in partnership between the government and people.

He said the energy sector was currently experiencing “limited credible interest” from the private sector since the sector was not currently financially self-sustaining.

Makoju also noted that since the present tariff regime could not meet the cost of rebuilding collapsed infrastructure, government was reluctant to invest in the sector.

He stated that the solution to the problem lies in having the political will, a national consensus and an honest commitment on the part of the leaders.

Managing Director of Oando Plc, Wale Tinubu, called on the Lagos State government to work with the private sector to harness its energy sources to derive economic growth.

According to him, such partnership should focus on research and development of renewable energy sources for shared utilities, encourage cluster-based distributed generation initiative and the adoption of compressed natural gas for vehicular use.

He also said the state must take active step in securing available natural gas assets to provide energy required through the acquisition of interests in oil and gas fields and joint participation with the OPS in the development of offshore gas gathering systems.

sammyjay77

April 26th, 2008, 08:20 PM

Atlantic City Ready By 2015

The N417 billion Eko Atlantic City launched by the Lagos State Government yesterday, will be completed in 2015.

The Managing Director, Energyx Nigeria Limited, Mr. David Frame, whose company is handling the multi-billion naira project, disclosed this at the ground-breaking ceremony of the project.

He stated that the first two million square metres which is one-third of Victoria Island would be completed next year.

He added that all marine work would be completed by 2013 while the project would be delivered by 2015.

In addition, Frame assured the people that the company was committed to the project.

Former Governor of Lagos State, Asiwaju Bola Tinubu, who initiated the project, was so elated that it has finally commenced.

“It is a day of joy for me, for several years, our bar beach has been a scene of sorrow and a threat to our security.

We were determined to find solution to this problem even beyond the shores of this nation.

“The question of who bears the financial burden was of great concern but Energyx BV indicated interest.

However, it was a risky venture when we took the decision to protect the bar beach.

“The investors will spend their own money on the work, bear the risk and build the city of our dream but it will be a city of economic development to our nation. This place will be a tourist haven,” he stated.

In his speech, Governor Babatunde Fashola went down memory lane and painted a glorious picture of what the bar beach used to be and how it later degenerated and became a threat to lives.

“The genesis of the erosion problem at the bar beach is traceable to the construction of channels, moles and harbours between 1905 and 1908.

“The erosion problem worsened with the increase in the number of ships arriving at Apapa and Tin Can Island ports,” he said.

He affirmed that his administration will sustain the promise to build the Eko Atlantic City project.

“The commencement of the second and third phases of the bar beach project, reclamation and development of the premier beach into a multi-purpose tourism, commercial and residential services will be a reality.

“The development of Eko Atlantic City is a classical example of the government policy thrust of fast-tracking infrastructural development of the state through Public-Private Partnership (PPP).

“This is what gave birth to the memorandum of understanding and working relationship between the state government and the sponsor and promoter of Eko Atlantic City project- Energyx Nigeria Limited,” he added.

Commissioner for Waterfront Infrastructure Development, Prince Adesegun Oniru said the proposed city would be sited on the reclaimed land area covering 8,000,000 square metres.

pappy

April 28th, 2008, 05:52 AM

Dubai World lines up $5bn investment in Nigeria

Energy, real estate, port development and petro-chemicals top the log in a $5 billion investment being lined up to be ploughed into Nigeria’s economy.
The investment is coming from Dubai World, the investment arm of the United Arab Emirates, and represents the first phase of its investment plan. It has investment portfolio of over $300 billion.
The investment will be made over the next five years and would be ploughed into the building of a new seaport in Lagos, a refinery and petro-chemical plant, building of new satellite city in Abuja, hotels and power plants. In the case of power plants, Dubai World will focus on the construction of coal-fired electricity generating plants with Enugu as the projected site.
A 22-man executive management team of Dubai World led by Sultan Ahmed bin Sulayem, its chairman, was in Abuja where they held strategy talks with President Umaru Musa Yar’Adua. The delegation was accompanied by their Nigerian partner, Sam Iwuajoku, chairman of Corporate Oil and Gas.
Emerging from the meeting with President Yar’Adua, reports have it that the delegation expressed interest in Nigeria’s “vast untapped natural resources with specific emphasis on minerals and mining as well as development of new cities.”
The company is coming to Nigeria with its investment profile because of its admiration for President Yar’Adua’s commitment to the rule of law, transparency and his willingness to create a clement investment environment.
“Historically, Nigeria is a major trading partner of Dubai and the purpose of our visit is not only to augment these ties, but to identify ways and opportunities to strengthen them further for the mutual benefit of both countries,” Sulayem said.
The Dubai World chairman said one of its subsidiaries, Limitless, its global master development arm, would send a team of experts to Nigeria to evaluate the investment opportunities and finalise various master planning and development deals.
Although the company has begun an aggressive investment drive into Africa, Sulayem said Nigeria offered the best investment platform because of the vast opportunities, the huge market and the potentials for better returns on investment.
According to him, the abundance of natural resources is a factor that makes Nigeria more attractive. In venturing into power plants, the company is anchoring on the abundance of coal deposits that have remained largely untapped.
Sulayem said by focusing on the utilisation of coal in the planned power plant, the company would be able to avoid the vagaries and prospects of disruption of supplies associated with gas-powered plants.
Ultimately, Dubai World’s injection of foreign capital into Nigeria in the medium term may be more than $10 billion as it ventures into the building of new cities based on the models it has used in the over 100 locations where it has built similar projects elsewhere in the world.
President Yar’Adua is expected to visit Dubai soon, as a follow-up to the investment plan.
Dubai World is Dubai’s flag bearer in global investments. As a holding company it operates a highly diversified spectrum of industrial segments and plays a major role in the emirate’s rapid economic growth. Its primary aim is to play the role of a growth engine that powers development both locally and internationally.
Dubai World’s investment spans four strategic growth areas of 21st Century commerce namely: transport and logistics; drydocks and maritime; urban development and investment, and financial services.

pappy

April 28th, 2008, 06:21 AM

Lagos Govt Dangles Investment Incentives At Lekki Free Trade Zone

A conducive investment climate awaits local and foreign investors coming to Lagos State just as the managing director of Lekki Free Trade Zone (LFTZ), Mr. Tajudeen Babatunde Disiu, said that before the year ends, the establishment would be on ground preparing the land for investors in oil and gas to come in.

Speaking at a press conference in Lagos last week, Disiu said that the incentives include:100 per cent foreign ownership of investment, and diviends; complete tax holiday from all taxes, custom duties and levies from federal, state and local government;waivers of all import and export licences including permission to sell a percentage of manufactured imported and assembled goods into the Nigerian domestic market amongst others.

He disclosed that they have received a plethora of applications of investors in the area of oil and gas which they could but yield to the pressure they have brought to get to site.

Responding to a question, Mrs Olusola Oworu, special adviser to Lagos State governor on commerce and industry, said that incentives earmarked for investors will not be terminated mid-way as they are meant to encourage investors and create jobs for people in Lekki area.

She said the objectives is to attract these investors to Lagos-Nigeria and not any other place, even as the MD, LFTZ added:"The incentives are all over the world, it is a world phenominon. If the United States sees an area of competition for microchips with Japan, they create this set of incentives even in a room for a company to have a free zone incentive to compete with that company in Japan. so, it is a world phenominon".

Oworu further said that the mission of Lagos State government is to build the LFTZ into a 21st century model city as well as Africa's business haven, adding that they have adopted a three pronged investment/development strategy which include: the splitting of the LFTZ area of 16,500 hectares into zones ranging from oil and gas logistic. Park, light and heavy industrial and manufacturing zone; media centre; and urban/residential zone. Others are strategic partnership and alliances plus phasing of its three cycles to fill maturity that have been identified over a 15-year period.

She also said that in addition to the investment opportunities which existed for investors, the LFTZ has competitive advantages which include:

LFTZ is located on the southern coast of Nigeria and connected to the major international waterways via the Atlantic Ocean and the Gulf of Guinea.

Access to the largest consumer market in Africa, with over 500 million potential customers.

Access to abundant natural resources such as oil, Natural gas, Timber, Rubber, cocoa, Arabic gum and Sesame seed to name but a few.

Favourable geographical location and ascendant location to other part of Africa, Europe, Middle East and the americas.

It has availability of skilled and semi-skilled man power.

The social situation of LFTZ with its natural ecosystem, unpolluted green lands and ecological lakes and lagoon which together make it ideal for a modern, yet serene city.

pappy

April 28th, 2008, 06:22 AM

Lagos moves to boost food production

Lagos State government has said it would continue to take pragmatic steps towards sustaining its policies on the provision of abundant food, as ways of cushioning the present nationwide food shortage.

The Commissioner for Information and Strategy, Barrister Opeyemi Bamidele, who disclosed this, stated that the state government through the Ministry of Agriculture and Co-operatives has adopted agriculture, not only as a way of ensuring food sufficiency but also, to generate employment.
According to Bamidele, the state government has not shifted its focus on agriculture, pointing out that the vast aquatic nature of Lagos provides abundant opportunity for government to invest in fishery.

He stressed that the need to make use of water resources informed the introduction of the Marine and Aqua-culture Project, aimed at reducing artisanal over-fishing and water hyacinth growth control through a Cage and Pen fish production Culture. The pilot project of which, he said, has started in six communities like Badore, Ise, Epe, Idale/Whadekoh in Badagry, Otto-Awori and Ijede in Ikorodu Local Government.
He explained that mechanised services were also provided to farmers through the procurement of 21 tractors each with a set of disc plough, disc harrow, disc ridger and tipping trailer to improve farm yield in the state.

Bamidele pointed out that the state government has concluded the first phase of the Roots and Tubers Expansion Programme with 12 groups selected from 10 communities to encourage the production, processing and utilization of food crops like cassava, yam and cocoyam.

He stated that rice production sensitization efforts of the State’s Ministry of Agriculture and Co-operatives has improved the growing hectares of rice to 150 with yield estimate of 750 tons.

He said that in order to bring more women into farming, the State Government has mobilised over 300 women farmer groups to complement the efforts of their male counterparts so as to enhance their productive capacity for maximum utilization of agricultural resources in the state.

The Commissioner asserted that part of the efforts aimed at boosting food security in the state was the disbursement of N126m for the delivery of agricultural support facilities to farmers in the state through the FADAMA 2 project. Some of these support facilities, he stated, included 76 agro-processing equipment, 135 concrete fish ponds, 29 earthen fish ponds, 98 rehabilitated pigeons, 20 rehabilitated poultry houses, 23 knapsack sprayers, 200 fishing traps, 26 smoking kilns, 22 snail houses, 16 outboard engines, 12 wooden canoes, 15 bundles of fishing nets, 26 water pumps and hoses.

Other input supports, according to him, included; 8 breeder cattle, 27 breeder sheep, 172 weaner goats, 398 pig weaners, 2,500 cockerels, 5,200 day old chicks, 50,650 fish fingerlings, 9,900 fish juveniles and 5,320 oil palm seedlings were also provided to group of farmers in the state.

He maintained that the provision of loans and security facilities to farmers has drastically increased the production of eggs, pigs and fish, adding that, 5,500 catfish farmers who benefited from this scheme have increased fish production by 30% with a net value pegged at over N300m.

Bamidele attributed the nationwide food shortage to heavy reliance on oil, maintaining that, the nation is at a crossroads, where governments at all levels should be encouraged to adopt a three – pronged approach to agriculture. ‘Investment in sufficient food production, enhanced storage and distribution system are the only way out of the national food crisis’, he added.

pappy

April 28th, 2008, 10:04 AM

$3b Eko Atlantic City project targets 2015 completion date

THE ambitious $3 billion redevelopment scheme seeking to transform the troubled Lagos beachfront into a comprehensive tourism and commercial facility - which was formally launched with fanfare last week - has been given a 2015 completion deadline.

The Eko Atlantic City Project (EACP),' as the project has been labelled, will involve the reclamation of some 820 hectares of land under a scheme targeted at restoring the tourism appeal of the famous Bar beach. The project was conceptualised under the administration of the immediate former governor of the state, Asiwaju Bola Ahmed Tinubu.

At the project launch in full international glare during the Ehingbeti development summit last week, Mr. David Frame, managing director of South Energy X (Limited), the project contractor, assured that given the commitment of the state government to the project, it is expected to be completed within even years by year 2015.

The state governor, while unveiling the project last week, anticipated "enormous social and economic benefits after the completion of the project," explaining that the general concept is the provision of the needed amenities that will enhance the tourism attraction and relaxation opportunities to both the local and international clients.

Infrastructure work will involve initially, restoration of coastline lost to coastal erosion since 1905 and provision of a permanent solution to the menace through "a robust sea wall or revelment along the newly re-constituted coastline".

The overall area to be reclaimed involves a length of 6.500 metres, and on average width of 1,260 metres.

The western boundary of the development will stretch from the existing mole constructed between 1905 and 1908 to protect the entrance to the Lagos Harbour, to incorporate a large portion of the Marina with access to the sea.

However, a major re-development component will be on the northern boundary on Victoria Island, where the major Ahmadu Bello Way is to be widened to an eight-lane highway to be known as "Coastal Road."

Developments envisaged in the EACP include family entertainment centres, water based entertainment and boat club, upscale commercial opportunities, offices, retail and residential properties, office parks, conference, event and exhibition facilities. Others are shopping malls, beach and recreational park development, hotels, guest houses, club houses and resorts.

"In view of the quality of services planned for the Eko Atlantic City project, there is to be provided state-of-the-art top grade infrastructure, comparable with any of such project in the world," said Fashola, who sought the assistance of both the Federal Government and the private sector in the development projects lined up by his administration.

To be incorporated into the Atlantic City project are a 30 metres wide central waterway, which will provide water transport facility connecting the marina, as well as an international standard electrical power generation plant with underground distribution.

Also to be provided are water supply treatment and distribution mains, sewage collection mains leading to a modern treatment plants, a network of service ducts to provide IT services and post construction maintenance and management facilities.

The governor urged institutional investors, real estate developers, both local and foreign, multinationals, corporate organisations and the public to avail themselves of the opportunity to invest in the project.

Fashola described the development of Eko Atlantic City as "a classical example of the state government's policy thrust of fast-tracking infrastructural development of the state through public private partnership (PPP). This is what gave birth to the Memorandum of Understanding (MoU) and working relationship between the state government and the sponsor and promoter of Eko Atlantic City project, Energyx Nigeria Limited."

He added: "Our consultants and partners have demonstrated their technical and engineering competence by using local capacity and contractors, Messrs. Hitech Construction Company Limited to complete the first phase of the project, which was the Sea Defense Wall that protected Lagos from flooding last year when she experienced the highest rainfall ever in 25 years."

pappy

April 28th, 2008, 10:09 AM

Four firms win N3.88b Lagos ferry routes dredging contracts

CONTRACTS for the dredging and channelisation of ferry routes, worth N3.881 billion, have been awarded by the Lagos State government as part of its infrastructure improvement programme.

The dredging locations include the Tolu/Ajegunle-Tin Can Waterfront and the Port Novo Creek to the Liverpool Bridge Basin, which contract was awarded to Messrs. Razz International and FBN Nigeria Limited, at a cost of N482 million.

Another location is the "approaching sweeping dredging" between Mile 2 to Marina, which contract was awarded to Messrs Numbers Nigeria Limited at a cost of N148 million, while the ferry route from Ikorodu to Osborne via Bayeku Badore to Osborne en-route Okeira Nla, Chevron Water front and Lekki and Oke Afa to Mile 2 corridors were awarded to Messrs. Harris Dredging Limited at a cost of N3 billion.

The pre and post-dredging, hydrographic surveys and environmental impact assessment of these ferry corridors are to be carried out at a total cost of N201 million. This is to ensure that proper procedure is adopted for the dredging activities embarked upon.

Giving hints of the contract awards last week, the state Commissioner for Transportation, Prof. Bamidele Badejo, said it was time to put in place an efficient waterways transportation system, which, in addition to rail transportation, are considered better alternatives to over dependence on road transportation.

According to Badejo, Lagos, being a littoral settlement has abundance of potentials for water transportation, which have remained untapped. He said that based on the need to improve operations in the sector, "government has set in motion plans to establish the Lagos State Waterways Authority (LSWA), which will be charged with the responsibility of creating an enabling environment for water transportation to thrive".

The commissioner, who unveiled the efforts of the current administration in improving infrastructure in the state, noted that the state of roads in Lagos is having adverse effects on the economic and social life of the residents.

He, however, noted that pending the time when both the water and rail transportation sectors are fully in operation, necessary components in the road transportation system would be put in place.

Among the expected areas that require urgent attention, according to him, are: construction and maintenance of some roads; round-about and junctions; installation of street lights; maintenance of side ways and road medians; and, rehabilitation of existing watch towers and construction of new ones.

Others are rehabilitation of median barrier and kerb painting, installation of "intelligent road studs" and crash prevention guidance gadgets and, construction of bus lay-bys.

Roads planned for rehabilitation are the Town Planning Way/Coker junction; Babatunde Oki, Odi and Ilupeju Industrial junctions; the Old Abeokuta (abattoir)/Charity junction, Link road junction and Eric Moore. Others are Oba Akinjobi Street, Sasegbon, Davies Oba Akran Adeniyi Jones and eight other locations. While some of them have been completed, some others are on-going.

The Commissioner noted that in the 1970's, three watchtower facilities were provided by the Federal Government along the construction of the major high ways and bridges in Lagos for the purposes of traffic monitoring and control, as well as providing security. The facilities were located at Ijora and Apongbon, "but regrettably, they were never deployed for the purposes for which they were constructed."

He believes that though the facilities had witnessed decay as a result of long time abandonment, they could still be put into use through the installation of close circuit television (CCVT).

"Besides, there is a plan in the offing to relocate all road-side mechanics to more convenient and suitable places, in line with a recommendation of the State Executive Council (SEC). To this end, a monitoring and regulatory unit known as Private Mechanic Workshop Unit was established.

"It was in the same vein that the state government, after an extensive consultation with all stakeholders in the oil marketing sector, as related to the parking of tankers that a vast portion of land was allocated for that purpose at Orile Iganmu for the construction of truck terminal", said the commissioner, who likened the presence of road side mechanics to the menace, which the tanker drivers constituted before their relocation.

Similarly, he said, efforts to solve the seeming un-coordinated parking problem on Victoria Island (V.I.) has also been worked out. According to him, "The transformation of the V.I. from a purely residential to commercial centre has been responsible for the traffic logjam in the area. In solving the problem, the ministry has introduced some measures, which include: one, re-routing of the traffic routes in and around Victoria Island; the introduction of 'one way,' and evolving parking restriction and regulation scheme."

He hinted that the "On-street" parking scheme which was introduced in 2003 to solve traffic problems in the area and concession of some roads to the Ministry of Works and Infrastructure under the High Street Management Scheme (HSMS) had affected revenue which now stood at N10 million a year.

Other measures being considered to improve road transportation apart from the rail and water transportation sectors include the bus stop shelters' improvement, strengthening of traffic personnel, provision of vehicles and communication equipment for the traffic control agencies, the introduction of Bus Rapid Transit (BRT), as well as road rehabilitation by the BRT regulatory body, the Lagos Metropolitan Transport Agency (LAMATA).

pappy

April 28th, 2008, 10:29 AM

Africa, world’s fastest growing mobile market

THERE were 231.21 million mobile subscriptions in Africa by the end of June 2007. This represents an increase of 45.02 per cent year-on-year, a rate that has made the continent the world’s single fastest-growing regional mobile market.

Africa’s five biggest mobile markets – South Africa, Nigeria, Algeria, Egypt and Morocco – accounted for 59 per cent of the continent’s subscription base by the end of June. As we enter 2008, Nigeria is expected to have overtaken South Africa to become the continent’s largest mobile market.

The number of mobile subscriptions in the Middle East grew by 30.25 per cent year-on-year to reach 146.77 million by the end of June 2007. Turkey was the largest market in the Middle East with 56.58 million subscriptions and Saudi Arabia the second largest with 23.89 million, up by 40.39 per cent year on year. Iran had 17.04 million subscriptions by the end of June, following growth of 76.61 per cent year on year.

The rate of mobile penetration in Africa by the end of June 2007 was about 25 per cent, compared with 49 per cent in the Middle East, which may indicate that Africa offers the greater growth potential.
The high rates of mobile market growth in the Middle East and Africa – and the prospect of further growth to come – have been propelled by and have unleashed, a wave of liberalisation and takeovers in recent years.

For example, South Africa’s MTN bought Dubai-based Investcom for US$5.5 billion in 2006, becoming the largest operating group in the Middle East and Africa with 40.75 million proportionate subscriptions by the end of June, through its operations in 21 countries in the region. MTN also launched Iran’s number two network Irancell in the third quarter of 2006.

In August 2006 three operators — Korek of Iraq and Kuwait companies Wataniya and Zain (formerly MTC) — each agreed to pay US$1.25 billion for long-term licences in Iraq. More recently, Etisalat of the UAE launched Egypt’s third mobile network in May 2007, having paid US$2.9 billion for the licence.

Etisalat enjoyed rapid growth in Egypt, reporting one million subscriptions by the end of June.
And in a landmark contest in the first quarter of 2007, Zain submitted a record winning bid of US$6.1 billion for Saudi Arabia’s third mobile licence, the most expensive in the world on a per capita basis, costing US$226 per Saudi inhabitant However, the Saudi contest may represent a high watermark, as the last major new licence target in the region for the foreseeable future.

Nevertheless, there are still investment opportunities. The forthcoming privatisation of Algerie Telecom and its mobile unit Mobilis is expected to be hotly contested by major investors from within and outside the region. The planned privatisation of Lebanon’s two mobile operators it also expected to attract a lot of interest, as was the case with the contests for Qatar’s second mobile license and Kuwait’s third mobile operator.

Zain completed its takeover of pan-African operating group Celtel in 2007 and set out new targets, including that of more than doubling its subscription base to 70 million by 2011, with most of that growth to come in Africa. Celtel said it would spend US$1.5 billion in 2007 on its network in the key Nigerian market, where it aims to become the largest operator.

Also in Nigeria, Etisalat has formed a joint venture with Abu Dhabi investment group Mubadala to launch the country’s fifth GSM network in 2008. Etisalat has also raised its shareholding in West Africa’s Atlantique Telecom, which operates networks in half a dozen countries in West and Central Africa, from 50 per cent to 70 per cent.

On the other side of the continent, Etisalat has raised its shareholding in Tanzania’s number four operator Zantel from 34 per cent to 51 per cent, apparently with a view to using it as a springboard into the wider East Africa region.

In Uganda, where the mobile penetration rate was just 11 per cent by the end of June, two Middle Eastern operators — Saudi Arabia’s Hits Telecom and Warid of the UAE — are to launch new GSM services, even though there are three existing networks.

While opportunities in the Middle East and Africa may be more scarce and expensive than previously, for western operators the continued high rates of growth represent an attractive alternative to their stagnant home markets.

Vodafone is the second largest operating group in the Middle East and Africa after MTN — and could become the largest if talks to buy out the stake that South Africa’s Telkom holds in its Vodacom joint venture are successful.

Vodafone is not alone, however. France Telecom, Portugal Telecom and French media conglomerate Vivendi have all stepped up their activities in the region, and the contests for Saudi Arabia’s third mobile licence and Qatar’s second license attracted bids from European, Indian and US operators, along with players from within the region.

As well as opportunities for telecommunications investors, there are opportunities for new telecoms technologies in the Middle East and Africa. In Saudi Arabia, STC and Mobily had accumulated two million 3G subscriptions little more than a year after launching 3G networks.

In less developed markets, poor provision of fixed-line broadband services means that there may be a particular opportunity to offer wireless broadband services as an alternative. Vodacom launched a 3G/HSDPA network in Tanzania in the first quarter of 2007 with the aim of tapping into that potential market, as did Safaricom with the launch of its 3G/HSDPA network in Kenya in the fourth quarter.
Other operators are using WiMAX:

Zain and local operator Mena Telecom are both developing nationwide WiMAX networks in Bahrain, while Warid plans to launch WiMAX services in Uganda.

And finally in September, Jordan became the first country in the Middle East to establish a regulatory framework for MVNOs. As a result, it is expected also to be the first country in the region to host an MVNO.

sammyjay77

April 28th, 2008, 05:13 PM

Lagos for sure is the fastest Grwoing State in Nigeria...I am happy:):cheers:

Matthias Offodile

April 28th, 2008, 10:27 PM

Nigeria: A symbol of hope

By Matthew Green, Financial Times
Published: April 28, 2008, 00:05

Seen from the porthole of a Super Puma helicopter skimming over the Atlantic, the future of African oil exploration appears for a second like a giant, fire-breathing dragon.

Towering 12 storeys above the waters off Nigeria, Royal Dutch Shell's mammoth Bonga facility puffs a constant plume of flame as it sucks oil from below the ocean floor.

Shell sees Bonga's start-up in November 2005 as heralding a new era of deepwater operations in Nigeria, where a series of recent reports have revealed the depths of its difficulties onshore in the swamps of the Niger Delta.

President Umaru Yar'Adua's energy advisers warn that the country's oil output could fall by a third by 2015 unless it succeeds in plans to boost investment in its joint ventures in the delta, of which Shell's is the biggest, according to a report obtained this week by the Financial Times.

The report followed a warning late last year by a senior executive in Shell's Nigerian joint venture that funding gaps imperilled the future of the 50-year-old onshore operation, which has also been hit hard by militant violence.

But for Shell and other western groups, a growing fleet of Bonga-style vessels destined for west Africa's offshore oilfields are a symbol of hope in an increasingly fraught struggle to replace diminishing worldwide reserves.

"It never stops production," Godwin Itamah, Bonga's offshore installation manager, said while standing on a gantry amid the floating jungle of pipes, chimneys and turbines. "We're producing oil every second of the day."

Questions remain over the pace at which Shell and its peers can exploit west Africa's offshore potential.

Rising costs

Costs of projects are rising fast, in line with a global industry trend, while there is uncertainty over whether Opec quotas will put a brake on offshore growth in Nigeria and Angola.

Both countries have been making increasingly assertive demands on Western groups to involve more local companies, which can sometimes cause delays.

"The governments have got much tougher [on local content]," said Will Rowley, director of analytical services at Infield Systems, the data analysts.

"That puts a real constraint because if there aren't the companies with the depths of skills you end up coming up against a brick wall."

Bonga and other FPSOs - floating production, storage and offloading facilities - are moored so far off the coast they are considered relatively safe from the kind of attacks that have shut down much of Shell's output in the swamps of the delta.

Oil tankers can fill up via a buoy linked by long pipe to Bonga's hold, a bit like cars pulling up at a petrol station, before shipping the sweet, light crude to US refineries. Nigeria is already among the top five suppliers of oil to the US and by some estimates West Africa could provide a quarter of the US's oil imports within seven years.

The US navy has launched a permanent training programme for the region's maritime forces to ensure the crude flows undisturbed.

Warnings this week from a Russian executive that the country's oil production might have peaked have only underlined declining production in the world's more mature fields, but West Africa is growing fast.

Shell, BP, Chevron, ExxonMobil, and Total pumped 24 per cent of their total production last year from West Africa, compared with 16 per cent in 2001, according to data from John S. Herold, the energy consultancy.

Bonga alone produces 225,000 barrels per day (bpd) - about 10 per cent of Nigeria's output - as well as gas to feed an onshore liquefied natural gas plant.

Named after a local species of edible fish, Bonga is part of a growing shoal of similar vessels. Infield Systems estimates FPSOs in the region will more than double from their current 27 by 2013.

West Africa's deep and shallow water oil production could rise from about 5.5 million bpd this year to about 9.2 million bpd by 2015, the consultancy predicts, provided the oil companies can overcome all the hurdles.

Matthias Offodile

April 28th, 2008, 10:30 PM

Min the phrase:

West Africa's deep and shallow water oil production could rise from about 5.5 million bpd this year to about 9.2 million bpd by 2015, the consultancy predicts, provided the oil companies can overcome all the hurdles.

In comparison the petro-giant of Saudi Arabia produces 11 million barrels of oil a day, so 9.2 million would be really good, although I wish it could move beyond this figure.

pappy

April 28th, 2008, 10:35 PM

Nigeria: Gov Fashola Charges Yar'Adua On Crime Control

Lagos State governor, Mr Babatunde Fashola (SAN), has appealed to President Umaru Musa Yar'adua to expedite action on the request of the state government for deployment of military men to complement the efforts of policemen in crime prevention.

Governor Fashola who spoke in an interview with a national weekly said he is assured that the President would accede to the request of the state as similar gestures have been approved in the past for states like Rivers, Kaduna and Kano .

In his words; "I am still appealing to Mr. President and the Commander –in- Chief: we have made representations to him and of course, he has promised to look at them favourably. We need the military support for now until we can have more policemen to complement the number of people patrolling the streets. I am hoping that sooner or later, I will get a favourable reply. I think some other states have benefited from similar consideration"

On plans by the state to install close circuit camera at strategic places in the state, he said the first cameras are already in place and that work is progressing on the command centre where messages from the cameras can be decoded.

He added that by the time the designs are incorporated with the installation of all the cabling and electronic devices that will feed the data to the camera is incorporated and keyed up across the state, it would become functional.

The governor also disclosed that as a person he dislikes noise and disorder which the use of siren promotes and that his personal experience has shown that rather than solve traffic bottlenecks, siren compounds it.

He said traffic is not a disease but a sign of a working economy which has however been worsened by the culture of people who stop in the traffic to buy different items like pepper and fruits pleading that "we all have to change our attitude".

Governor Fashola called for a stoppage of the continued deductions of N225Million monthly from the state account for the Independent Power Project (IPP) project, despite a court injunction to that effect saying as at today N9Billion has been deducted from Lagos State without any justification.

He explained that the state government enjoys a good working relationship with the President because he has been complementing him and not distract him, explaining that in areas where the state feels that there have been injustices it has the option of going to court while for issues that needs the fulfillment of obligations he writes to the President directly.

Governor Fashola added that the mortgage scheme of the state was informed by a study which revealed that everytime the government tried to build houses for the poor, they ended up not being the beneficiaries because of the 'pay all the cash at once' syndrome.

He said the process has been simplified that a worker just needs to approach any of the participating banks requesting to finance housing by deducting from his salary, adding that the state will guarantee the repayment.

He pledged to do everything within his powers to support the State Independent Electoral Commission to conduct a free and fair local government election, adding that today he is enjoying the dividends of a free and fair election in the State.

pappy

April 28th, 2008, 11:47 PM

Nigeria: Lagos to Build Five Maternal Health Centres

Arrangements by the Lagos State government have reached advanced stage to build within the next four years five 100-bed maternal and child health complexes in Ikorodu, Isolo town, Ifako-Ijaye, Gbaja town and Ajeromi-Ifelodun to strengthen the state's secondary health care programme.

The state commissioner for Health, Dr. Jide Idris disclosed this at a press briefing organised by the state government to mark the one year of the Babatunde Fashola administration.

Idris said each of the complexes will have clinics for mothers, children, a labour ward, delivery room, a modern theatre for obstetrics surgeries, wards and a neonato-logy unit.

He said already, works had reached over 50 percent completion stage at some of the sites adding that the contract for the supply and installation of equipment for the complexes had also been awarded.

The commissioner said this is in line with the desire of the state government to have at least one secondary health facility per local government area.

He said five General Hospitals in Ifako-Ijaiye, Shomolu, Mushin, Alimosho and Ibeju-Lekki local government areas of the state have been rehabilitated.

He said generators have been procured to back up power for the Lagos Island Maternity Hospital; General Hospital, Lagos; Ajeromi General Hospital; Apapa General Hospital; and Orile- Agege General Hospital.

Idris reiterated the state government's commitment to the completion of on-going projects involving rehabilitation, refurbishment, equipping and/or upgrading of health facilities as well as embarking on new projects where necessary.

According to him, the rehabilitation of Igbonla primary health care and the Community Health Training Institute in Agbowa near Epe will be done by the state government in collaboration with the African Development Bank.

He listed other primary health care clinics that have been earmarked for rehabilitation to include: Olojowon Primary Health Clinic, Mafoluku Primary Health Clinic, Ajara Primary Health Clinic, Egan Primary Health Clinic, Igbogbo Primary Health Clinic, Ifako Primary Health Clinic, Bogije Primary Health Clinic, Otto Primary Health Clinic, Ibafon Primary Health Clinic, Ikota Primary Health Clinic, and Ojo Primary Chest Clinic.

pappy

April 29th, 2008, 02:13 AM

Nigeria: Lagos Signs MoU With German University for Medicine Devt

Lagos State government has signed a Memorandum of Understanding (MoU) with the Otto-Von-Guericke University, Magdeburg, Germany to enhance partnership on science education and exchange of knowledge of the State scientists, fellows, residents and medical students in different fields of medicine on one hand as well as to enhance partnership on science education and exchange of knowledge with staff and students of LASUCOM in all fields of medicine and related sciences on the other hand.

The state commissioner for Health, Dr. Jide Idris who disclosed this in Lagos explained that the partnership will also offer consultancy support and service on new projects and conceptual ideas projected by the state government; support in clinical issues; personal and organisation management; medical equipment procurement for new medical equipments requests; and epidemic break up.

Idris opined that the understanding will further bring opportunities for both parties in such areas as exchange of programmes and courses; easy entrance to scientific congresses for the state specialists doctors and professors in Europe and Germany particularly Magdeburg; possibility of German Medical professors/doctors teaching for a month or few weeks in Nigeria as guest professors at the state government request through a proper arrangement; new medical technology and new ideas; patients advantage in modern therapy and modus; contact with international scientists; and contact with international pharmaceutical companies through the participation of Lagos State physicians on seminars and congresses.

In his words: "this partnership will enable our professionals have access to technological, diagnostic and therapeutic know-how, current international scientific tip and new modalities on science, start-up projects in Nigeria with temporary German personal support, and biomedical engineering with educational course in Magdeburg."

The Commissioner noted that the understanding will also offer the State government the opportunity of getting old functional medical equipment; affiliation for eligible medical students from the state who fulfill the University admission criteria; the treatment of the state patients at the Otto-Von Guericke University Hospital; exchange programme for residents and the state medical students; free seminars, courses, operating theatre visits and surgical intervention assistance; and clinical rotation on new development in surgical/operative areas of various faculties.

pappy

April 29th, 2008, 11:27 AM

Planned International Conference Centre ’ll excite Rivers people - Nle Eji

As the rubbles of the old Integrated Cultural Centre in Port Harcourt got cleared up last week, the Rivers State Government says a world class International Conference Centre would sprout in its place in the nearest future.

Rivers State Commissioner for Culture Tourism, Hon Marcus Nle Ejii in an exclusive interview with The Tide over the blue-print of his administration to revitalize the tourism sector, said the conference centre and the Port Harcourt logical Garden would form a major tourism window for the state.

Hon Ejii who dismissed views that the government had conceded the former Integrated Cultural Centre finally to private hands, explained that the vision was to construct a befitting conference centre with modern facilities.

In addition he stated that though the project was being implemented through a public/private partnership with the Silverbird Group, the intention of government was to set the trail in cultural and tourism activities in the country.

Said he: “God being with us, we are going to build a new conference centre, but we don’t want to rush into building what after about 3-4 years, we are thinking of building a new centre again.

“So this time around, we are taking time with the drawing, the land, the building. All that is going to take some time,” Nle Ejii said.

The Commissioner argued that the old Integrated Cultural Centre even before its eventual demolition had become moribund, “It was not actually befitting, it was poorly constructed and managed and most of its facilities were grounded.”

The new International Conference Centre when completed is expected to have a good parking space, cinema and movie halls, including theatres to host special performances.

On the Port Harcourt zoo, Hon. Ejii noted that plans to revamp the facility have reached advanced stages as the zoological garden would wear a new look in a few months time.

He described the facility as one of the major tourism assets owned by the state and wondered why past administrations allowed the place to rot away.

In addition, he stated that the various parks and gardens littered across the state would also be revamped. He noted that the present government has made available sufficient fund in the budget to show its commitment in reviving tourism activities in the state.

Other areas planned to be upgraded include the state museum, the Agbani Darego Centre, where the state cultural troupe in temporarily located and special monuments and cenotaphs.

pappy

April 29th, 2008, 11:28 AM

Nigeria: Etisalat Sets for Commercial Launch

Etisalat, Nigeria's fifth licensed GSM operator has relocated to its own newly acquired corporate office complex, a statement from the company has said.

The relocation, the statement said, is to further demonstrate the company's preparedness to offer Nigerians world class telecommunications services.

The property located in the highbrow Banana Island, Ikoyi, and Lagos provides Etisalat top rate employees with the right environment to function optimally.

"Acquiring our own property lends credence to the fact that Etisalat believes in Nigeria and has indeed come to stay. It further demonstrates our commitment to Nigeria," Mr. Saoud Al Shamsi, CEO of the company said.

He explained that Etisalat's decision to acquire its own property was strategic as it "reaffirms our readiness to offer Nigeria the best available telecom services and best human capital development."

pappy

April 29th, 2008, 11:30 AM

Investors arrive for Malaysian Garden’s soft launch

The Malaysian delegation for the forthcoming $600 million Malaysian Gardens housing project soft launch billed to hold Wednesday in Abuja has arrived Nigeria.
The delegation led by Wong Yim Hing, the Malaysian director of Global Initiator, also has investors and banking officials of leading Malaysian financial institutions, such as the Malaysian EXIM Bank, MayBank Malaysia and the Malaysian External Trade Development Corporation (MATRADE).
Yim Hing in a statement made available to Business Day expressed the team’s happiness in coming to witness the soft launch and the tremendous interest Malaysian investors are showing in investing in Nigeria, one of the fastest growing economies in Africa.
“We are indeed happy to be here and the members of my team who are mostly leading Malaysian investors and bankers are excited to be part of the on-going economic progress in Nigeria and this explains why we are here to witness the soft launch of this project in Abuja as well as explore areas of economic interest with our Nigerian business partners.” she said.
The ceremony would be chaired by Emeka Anyaoku, former secretary general of The Commonwealth with the minister of the Federal Capital Territory, Aliyu Moddibo Umar as the special guest of honour.
The launch will also be used to showcase work-in-progress at the project site and at the same time provide opportunity for the acquisition any of the house types at a highly discounted rate.
The activity is coming on the heels of the groundbreaking ceremony which was performed by former president Olusegun Obasanjo in 2006.
When completed, Malaysian Gardens will be a dream home for over 100,000 to 120,000 Nigerians.

sammyjay77

April 29th, 2008, 01:42 PM

Nigeria records world’s fastest growth in Sovereign Wealth

Nigeria, Africa’s most populous country, recorded the fastest growth in global Sovereign Wealth Fund in the last five years, says a report on the world’s sovereign wealth situation released in London yesterday.

The report, prepared by Global Insight, a global company engaged in economic and financial analysis and forecasting, describes Nigeria as the “fastest growing generator” of sovereign wealth over the last five years, recording a growth of 291 percent.
Nigeria outperformed other countries that had also made significant progress including Oman, which grew its sovereign wealth by 256 percent; Kazakhstan (162 percent); Angola (84 percent); Russia (74 percent), and Brazil (65 percent).
Although the report is written against the backdrop of Nigeria’s growing foreign exchange reserves and the country’s ability to meet at least three months of imports, Nigeria has not yet established an official Sovereign Wealth Fund, an international investment vehicle for a sovereign state.
Jan Randolph, Global Insight’s head of Sovereign Risk, told Business Day on telephone from London that Nigeria’s growth pattern was largely captured in the report in terms of the amount of excess cash it has above its balance of payment requirement.
“With the situation we see, with foreign reserves in excess of $55 billion, Nigeria is in a position to create its own Sovereign Wealth Fund,” Randolph said.
Sovereign wealth funds are defined as pools of money derived from the reserves of a country and are set aside for investment purposes that will be of benefit to that country’s economy and its citizens. Central banks are responsible for funding such fund through reserves that accumulate as a result of budget and trade surpluses as well as from revenue generated from the exports of natural resources.
Nigeria’s record performance was also achieved against the backdrop of record $3.5 trillion in sovereign wealth recorded globally in 2007, a growth of 24 percent, with China remaining the world’s largest generator of sovereign wealth.
The report also projects that in terms of yearly growth rate, sovereign wealth funds will surpass the entire current economic output of the United States by 2015, and European Union by 2016.
It stated that sovereign wealth funds now represent the most powerful group of global investors and that their combined sovereign wealth of $3.5 trillion in 2007 was more than enough to match the total yearly economic output of the United Kingdom, Germany or France.
Said Randolph: “Armed with such large amounts of debt-free cash, Sovereign Wealth Funds are the new financial power brokers, replacing the combined financial muscle of hedge funds and private equity, and usurping central banks as the international capital providers of last resort.”
Captured in Global Insight’s Sovereign Wealth Fund Tracker, last year sovereign wealth funds were said to have injected up to $80 billion into bank shares or bank equity stakes in the US alone and are expected to provide even more capital in 2008 and 2009.
Randolph said there had since been a shift of financial weight from West to East, particularly to China, Asia, the Middle East and other energy countries, adding that “riding the energy and commodities boom, together with the wilting dollar, sovereign wealth funds will continue to be the key players in the changing financial landscape of the global economy thrown into flux by the credit crunch.”

sammyjay77

April 29th, 2008, 01:44 PM

Nigeria’s GDP rises to N22.91 trillion, non-oil sector accounts for 81.9%

Gross Domestic Product (GDP) valued at current prices rose 23.39 percent from N18.57 trillion in 2006 to N22.91 trillion in 2007, National Bureau of Statistics (NBS) has said.
The implication is that, the value of total goods and services in output within the period increased by N4.34 trillion.
The agency estimates that real GDP growth rate was 7.64 percent for the year as against 5.63 percent recorded in the preceding year.
Non-oil share of GDP remained stable at 81.9 percent between the third and fourth quarter of 2007, while the Oil share of GDP growth rate recorded an increase of 0.1 percent as against a decline rate of 0.3 percent recorded in the preceding quarter.
The non-oil GDP growth was driven by growth in agriculture - 7.67 percent; solid minerals - 10.51 percent, manufacturing – 10.6 percent; and telecommunication - 32.85 percent.
The telecommunication sector maintained its leading position in the sectoral non-oil GDP growth rate at 32.85 percent in 2007 marginally up from 32.45 percent in 2006.
The FSDH research notes that available data from the NBS, National Population Commission (NPC) and the Central Bank of Nigeria (CBN) shows some interesting relationship between some sectors in the Nigerian economy.
The average contribution of agriculture to total GDP between 2003 and 2007 was 41 percent, manufacturing accounts for four percent while oil and gas accounted for 24 percent, while telecommunication accounted for 1.63 percent and other sectors accounted for 32 percent.
A cursory look at the data also reveals that the proportion of the working population that are engaged in agriculture on the average between 2001 and 2005 stood at 58.64 percent, while mining and quarrying accounted for only 0.15 percent between the period under consideration. In spite of the relative size of the agricultural sector in the Nigerian economy, the average sectoral share of private sector credits to the sector was 3.43 percent between 2003 and 2007.
Although a large proportion of the country’s workforce is engaged in agriculture, the country cannot boast of feeding itself. This is because the country is predominantly engaged in subsistence farming.
Government at all levels needs to collaborate with the relevant regulatory authorities and agencies to formulate workable policies that will increase funding to agriculture in Nigeria.
Also, government should develop policies that will promote the establishment of agro-allied industries in the country. These policies may include: tax waiver; tax holiday; concessionary interest rates and subsidies in order to boost export of intermediate products from agricultural sector.

Matthias Offodile

April 29th, 2008, 07:40 PM

Nigeria records world’s fastest growth in Sovereign Wealth

GOOD NEWS!:cheers:

sammyjay77

April 30th, 2008, 04:38 PM

Nigeria’s investments opportunities get major boost in Asia-pacific region

An Australian communication firm,October First Consulting has concluded plans to launch targeted awareness campaign for Nigeria’s investments and trade opportunities in Australia, New Zealand and other Asia-Pacific nations.
The founder of the company, Frank Aneke disclosed that OctoberFirst Consulting specialises in the promotion of researched investments and trade opportunities in Africa. “OctoberFirst Consulting was primarily established to bridge the business communication gap between emerging economies in Africa and business community in the Asia-Pacific.”
Aneke revealed that Nigeria’s government agencies, state governments and companies can benefit from OctoberFirst Consulting’s investment promotion solutions and strategic location in Sydney, to launch comprehensive investments promotion campaign at targeted businesses sectors in across Asia-Pacific region.
Frank Aneke affirmed that OctoberFirst Consulting is a member of New South Wales Business Chamber and expressed the preparedness of OctoberFirst Consulting’s investment promotion team to apply cost-effective communication strategies and tactics in planning, execution and evaluation of every promotional campaign.
Aneke further disclosed that plans are underway to organize the first Australia/Nigeria annual business forum in Sydney to give business leaders in both countries the opportunity to network and build better business relationships. Interested companies and government agencies can find out more about us at www.octoberfirst.com.au .

oshon

April 30th, 2008, 09:50 PM

By Obinna Ezeobi, Abuja
Published: Wednesday, 30 Apr 2008
The African Finance Corporation said on Tuesday that it was going to build a 3,600 mega-watts coal fired power plant in Kogi State .

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SARAFADEEN

Speaking at the presentation of the Nigerian Mineral and Mining Act 2007, and inauguration of the Mineral and Metals Policy, the President of the bank, Mr. Austin Ometoruwa, said it had inaugurated an initiative with stakeholders in collaboration with Chinese coal-power producing companies to build the stations.

He described the plan as significant as it would be the start of the third leg of power supply in Nigeria , away from gas and hydro power sources.

Our correspondent gathered that AFC will build the stations in three different locations, with each generating 1,200 mega watts.

The Minister of Mines and Steel Development, Chief Sarafa Isola, indicated that coal was being aggressively exploited in consonance with President Umaru Yar’Adua’s seven-point agenda of using coal for power generation.

He said, “I am happy to note that two companies, Western Metals and Dencar Resources have committed $15m and $10m respectively to the two respective coal fields in the country.”

The minister noted that the greatest challenge of the mining sector was to attract both global and local capital to develop the sector.

“He said, “This is because the sector is highly competitive and global mining capital only goes to countries with the best fiscal and policy regimes. Concerted efforts have been directed towards attracting global investment through high-level economic diplomacy.”

pappy

April 30th, 2008, 11:56 PM

Nigeria plans $1 bln in power subsidies over 3 yrs

LAGOS, April 30 (Reuters) - Nigeria said on Wednesday it will spend 117.95 billion naira ($1 billion) on power subsidies over three years in an ambitious step to attract new investment to revamp its electricity sector.

Shortage of power is often cited as one of the biggest obstacles to development in Africa's top oil producer, whose large reserves of crude and gas are mostly exported to Western markets, leaving much of the country in darkness for days.

This is the most far-reaching step so far on electricity generation since President Umaru Yar'Adua took office a year ago with a pledge to declare a national emergency on power.

Yar'Adua had said in January that the world's eighth-biggest oil exporter would not pour more cash into power, having spent $10 billion in the last seven years with little to show for it, until he had a clear idea of how to revive the sector.

The subsidies take effect on July 1, 2008, under a new fiscal framework called the Multi-Year Tariff Order (MYTO), which is expected to correct the low pricing of power that investors say makes their investments uneconomical .

Under the MYTO, which covers a three-year transition period, Nigeria will spend 64.84 billion naira on subsidies in the first year, 77.41 billion naira the following year and 35.80 billion naira in the third year.

"The MYTO is expected to boost the confidence of lenders and investors alike in the profitability of investments in Nigeria's power sector as it provides for reasonable returns on capital investment," the president's spokesman said in a statement.

The new effort comes a month after a task force set up by Yar'Adua to triple Nigeria's power generation capacity to 9,000 megawatts within 18 months submitted its report to government.

Nigeria passed an electricity liberalisation law in 2005 which set up a sector regulator, stripped the power utility of its monopoly and unbundled it into a grid, six generation firms and 11 distribution companies.

But the generating and distribution firms, which were put on sale, have failed to attract serious interest as investors say the government has not completed the deregulation, the sector is poorly run and low tariffs make their investments unviable.

The MYTO was designed by the Nigerian Electricity Regulatory Commission based on the quantification of the total revenue requirements of all industry participants, the statement said.

Africa's most populous country, with 140 million people, has a generation capacity of about 3,000 megawatts. South Africa, with a third of that population, has 10 times that capacity.

Any administration that delivers more power to the people would be wildly popular as the lack of electricity is the number one complaint of most Nigerians, a recent poll found.

An ongoing investigation of the power sector under former President Olusegun Obasanjo by the House of Representatives has already raised questions about why state contracts worth billions of dollars have done little to end constant nationwide blackouts.

pappy

May 1st, 2008, 08:37 AM

Is Lagos leaning towards Singapore housing system?

Is Lagos Mega City being influenced by the physical development structure of Singapore, one of the Asian nations? The answer might not be far from yes. At least, revelations from presentations made by the Director, RSP Architect Planners and Engineers (Pte) Ltd, Singapore, Dr. Liu Thia ker and the Lagos State Commissioner for Physical Planning and Urban Development, Mr. Francisco Bolaji Abosede, at the recently concluded 4th Lagos Economic Summit seemed to have suggested so in many perspectives.

The summit had gone all out to seek how to transform Lagos into Africa’s model city. And the State Governor had not minced words when he said at the opening ceremony that the summit was all “about our city Lagos and its place in Africa and the world. Our vision is to create Africa’s model mega city. This will entail building a more competitive, globally-integrated city and economy.”

He listed intimidating statistics that give reasons transformations are required to make the mega city become such that meet global standards. For instance, Lagos remains the nation’s most populous city and state with a population growth rate of 5 per cent and an expected 20 million population by 2005.

The governor noted that Africa has the fastest rate of urbanization in the world and that slums abound with only 20 per cent having access to electricity while in sub-Saharan Africa only 48 per cent urban household, having water connection and 31 per cent connected to the sewerage system. Fashola bemoaned the fact that Lagos ranks low on the global liveability index, notwithstanding its mega city rating. “We cannot divorce the city of Lagos from these dire figures. Yet, ironically, Lagos has retained its attraction as a cultural, economic and political hub in Africa. How can we, therefore, stand by and watch Lagos, the capital of the black race regress into a dysfunctional state?” he asked.

But making a key presentation at the technical session of the housing and urban development group, Dr. Ker, an architect and planner, who had handled a lot of planning schemes in both Singapore and other Asian nations including China, said theirs was planning towards a healthy and beautiful cities which has transformed Singapore to one of the most beautiful places to live in.

Reflecting on what Singapore used to be way back in 1960, he said the country was lagging behind in Asia with very dirty environment and slums but had now been transformed through good planning aided by good governance. With a population of 4.6 million and land mass that is five times less than the size of Lagos, the Singaporean said that the country boasts of having one of the best airports and largest sea ports in the world with quality buses and rail services that about 70 per cent of their people now travel by either buses or metroline.

“Despite the fact that land is scarce, we make efforts to create greenery around the public housing. We have improved environment, space for everybody and harmonious urbanscapes,” he said. He stated that with the new Singapore they had created, the country now has ubiquitous public housing, industrial estates, arts and educational venues, modern business centres and parkways among others.

His presentation had great lessons for the state as he stated that slums of yesterday can be turned to today’s cities. He called for good master plan, which will ensure right things are done at the right time, adding that the state should try to create healthy city first before beauty. He pointed out that Singapore was planned in five regions with each region having small cities to trap people within the same region. This, he called urban cells. To have enduring cities, he advised that such plans should be big and for long term so as to be able to accommodate growth and growth associated problems. For the mega city, he suggested that this should be organised in cities that would take between 2.5million and 3 million populations. These in turn should be made up of towns and new towns to be able to distribute the population.

“We have a problem on population control. Plan for higher population. If the city is to grow and you plan small, it will not work. Don’t plan for small cities,” Ker said. In his presentation, the commissioner for physical planning and urban development said that without consultation with the Singaporean planner, one could see the relationship with what the state physical planning ministry had at the drawing table. Abosede said that the state was going ahead with planning and redevelopment in preparation for the Mega City status. This, he pointed out was being organised by dividing Lagos into smaller cities.

He pointed out that the state had a master plan in 1980 but that things went wrong under the military era leading to its being abandoned until the last administration. He however, promised that the state would be transformed in the next 10 years. He stated that the state has 100 slum areas out of which 40 are very bad while work had commenced on seven others. The state is collaborating with the World Bank which has contributed $200 million (US dollars). The total cost is put at N2 billion out of which the state is to contribute N47 million.

This is perfect for Lagos, I remember suggesting this once on this board.

sammyjay77

May 1st, 2008, 08:59 PM

Nigeria’s financial sector transformation unprecedented – Aitech chairman

Sean Mulroney, chairman of Aitec Africa, the oragnisers of the third African Banking Technology Conference which holds in Lagos says Nigeria is engaged in a dramatic.
transformation of its financial sector, “probably unprecedented in its scale and impact compared with anywhere in the world.”
The theme for the forthcoming African Banking Technology Conference which is scheduled to hold from May 6-7 next month at the Eko Hotel, Victoria Island, Lagos is: ‘Competing in a borderless world.’
He said the theme has beencarefully chosen in view of Nigeria’s banking sector which is leap-frogging banks in other parts of the world, introducing technologies and solutions that in some cases are ahead of developed markets that are burdened with legacy systems.
Mulroney quoted Nigeria’s Financial Technology magazine which had reported an industry estimate that each of the country’s 23 consolidated banks will spend a minimum of $10 million each year on technology. “But a combined budget of a quarter of a billion dollars does not guarantee success. As with any ambitious investment programme, there are numerous hazards, hurdles and banana skins along the way.”
He explained that conference aims to empower the region’s decision-makers in the financial sector with leading-edge knowledge gained from 32 local and international experts who will be speaking in the conference.
Moroney said although the new ideas and case study experience participants will gain at the conference and take back to their organisations, “I am confident that the professionals steering the country’s financial sector through this massive investment programme will be better equipped to make the right purchasing decisions, develop the right technology
strategies and better align those technologies with the business objectives of their organisations.”
He said the conference programme, which has the theme “Competing in a Borderless World”, speaks for itself, with eight specialised sessions over an intensive two-day programme which include: Technology for Competitiveness, Technology for security & continuity, Technology for Specialist Banking Services, Effective Communication, Systems for Client Services, Technology to Bank the Unbanked, Mobile banking – the
New Frontier as well as eBanking Channels. “The conference will end with a panel discussion between bankers and the Central Bank on how to regulate effectively for widespread mobile banking services,” he added.
The opening keynote speaker for the conference is Anil Sahai, an IT expert from Silicon Valley in the United States who will speak on latest trends in online banking. Sahai will also be doing a half-day Masterclass on the day before the main conference on “Managing ICT Strategies & Projects in the Banking Industry”. There will be another Masterclass that day by Mark Sibthorpe, president of BankNews in Canada: “An executive guide to back office system selection.”
Moroney also announced that Sulaiman Barau, the deputy governor, operations, at the Central bank, will be opening the conference.
The Aitec chairman emphasised that the conference is a partnership event and Aitec sees itself as a facilitator on behalf of the industry. He said the event could not take place without the support of key players in the industry, especially eTranzact, the lead sponsor, and UBA, the gold bank sponsor for the event.

sammyjay77

May 1st, 2008, 09:04 PM

Report advises UK financial institutions to look at Nigeria for banking opportunities

A floodgate of opportunities has opened up for more international players in Nigeria’s financial services industry following banking reforms now in its fourth year, according to a new report by the United Kingdom think tank, UK Trade and Investment.
The sector, a star performer in the Nigerian economy, has mainstream banking, microfinance, fund management, insurance, private equity and venture capital as some of the areas worthy of international investors, according to the report which supports companies in the UK doing business internationally. Others are pensions, capital markets, future initial public offers (IPOs) and Islamic banking.
On how an investor may grab a slice of “one of the fastest growing emerging economies in the world,” the report says players can buy into an existing franchise, which is quite “pricy, trading at six to seven times book” value or set up a Greenfield Bank, which “is a less attractive proposition considering the minimum capital requirement” and the country’s infrastructure challenge.
The report says the Nigerian market has become particularly attractive due to reforms in the sector that have led to structural changes, including buoying over all stock market capitalisation, improved asset quality and concentration of assets.
It has also lifted confidence in the banking system, while reducing the number of players from 89 to 24.
The most recent developments and policy reforms have sought to bring the industry in line with international best practices. These include the deregulation of the industry, opening it up to competition, the adoption of universal banking guidelines and a regulatory induced bout of consolidation.
Growth in the sector, which has stirred competition, however, has thrown up new challenges especially in the area of capacity that may be hard to fill in the short term, presenting a wave of opportunity for foreign players.
Among the challenges identified by the report are an environment of poor and underdeveloped risk management systems, narrow and undiversified revenue streams, low level of information technology and service delivery systems as well as inefficient and sub-optimal processes.
Other areas that need development in the system are the limited management experience and poor skills as well as the problem of managing cross-border risks.
The report acknowledged the 2004 banking consolidation programme aimed at strengthening the financial sector. That reform ensured minimum capital base moved up from N2 billion ($15 million) to N25 billion ($190 million) and ensured compliance within 24 months.
“The strengthening of the capital base was considered favourable, although the positive effects of consolidation can only be realised with prudent capital management,” the report notes. It says the emphasis on absolute levels of capital or shareholders funds does not fully address the problem of the relationship between capital and the risk–weighted assets ratio of 10 percent.
On whether the objectives for the consolidation were achieved, the report says the programme achieved the objective of reducing the number of banks from 89 to 25 and now 24. Many of them raised capital through public issues. The banking sector received approximately N400 billion in new capital, and now constitutes approximately 70 percent of the market capitalisation of the Nigerian Stock Exchange.
Fourteen banks accounting for just 6.5 percent of deposits failed to meet the higher capital requirement and were liquidated. The others that could not raise their capital merged with the stronger and bigger banks, thus making supervision more manageable by the Central Bank of Nigeria.
The banking sector that emerged from the consolidation process is relatively well capitalised assisted by the wide breadth of public share ownership. In Nigeria, the stock market has been a willing provider of equity financing. All major banks are now publicly listed, and whilst there are ownership concentrations, the shares are widely held by the general population. Since 2004 there have been multiple capital raisings by banks to fund organic growth.
Since most banks and insurance companies are publicly quoted, disclosure requirements and accounting standards have forced them to observe better governance standards. However, there are still reported cases of abuse and violation of standards, especially in the insurance sector.

sammyjay77

May 1st, 2008, 09:08 PM

'Nigerian property market is fast evolving and profitable'

The Nigerian property market is fast evolving and to prove that, by worldwide comparison, if you look at performance in terms of profitability and viability, you find that ours is one of the most profitable in terms of returns on investment. The gain on capital in short time is quite remarkable and high.
America is going through some troubles now in its housing market which was occasioned by the mortgage market. In Britain, there is also a slow down it their property market.
In Nigeria, the property market is quite good, but for the common man, we begin to look at areas of sharp failures. First, government is not injecting anything into housing. There is no other country in the world where government does not support its low income people in direct terms.
The second sharp failure is the inability or neglect by the low income group themselves to attempt saving towards home ownership. Even in the UK, if you occupy a council house for some time, they give you right to buy the house and it is from the little savings you make that you pay for the house.

The market development
The property market is a common market that property buyers and sellers come into play and, like any other market, it is driven by demand and supply. One of the things that has helped the process is the work of the professionals. I want to acknowledge the work of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) founded in 1969 which has provided the framework for the operations of the market in a professional way.
The principles being practised and standardised are coming from the principles of surveying and valuation which are the ones that have held the market together over the years till date.
At play also, are the activities of governments at the federal, state and the local levels. These also form what we have today as Nigerian property market. For example, the Western Nigerian Housing Corporation spread from its base in Ibadan up to Ikeja. These were the ones that formed the first estates. You also had the Lagos Executive Development Board (LEDB). Surulere and all the areas that evolved were influenced by government efforts.
The interplay of all those who managed the market led to each of the states having a housing corporation. The estate developers we have today are just between 3-5 years old.
If you follow the national housing policy, you find out that it was Babangida that started it in 1991 with the National Housing Fund (NHF) following in 1992. Babangida really had germane intentions to give houses to every Nigerian, but the policy did not take off effectively because of poor implementation.
When Obasanjo came in 1999, he set up a committee which reformed the housing policy and founded the ministry of housing in 2001 and from this date, we have progressively seen activities that have brought developers and mortgages into play and are trying to reform people's attitude to home-ownership.

Housing in Yar'Adua's 7-point agenda
We have tried at our own level to throw more light on the possibilities of land reforms which the present administration says it is going to carry out. Unfortunately, not much seems to have been done so far. But, there is need to see that the laws governing land use in the country are changed positively for the benefit of the people.
We are not however, saying you should throw away the baby with the bath-water. The land use act in itself is a good legislation only that there are aspects of it that need to be changed. For instance, the time it takes to get certificate of occupancy and also the bureaucracy that goes with getting governor's consent. All these are not in alignment with the principles of home acquisition.

Vision 2020
The nation's property industry alone can give us fulfilled 2020 vision and make our economy boom.
However, without infrastructure, every other economic achievement is a mirage. If somebody says the vision is a mirage in the light of what we see today, that assessment is not misplaced unless government becomes serious about infrastructure.
As for housing, has Nigeria met the Millennium Development Goals (MDGs)? It is only when you have been able to do that you can talk convincingly about 2020 vision.
Unless government gives support to full housing in terms of feeding the low and medium income group, it is not going to be easy to achieve the vision.
Many of the things being done now in terms of development are driven by private sector initiative without any iota of government support which is a shame. The question is: How much of the oil windfall at $105 per barrel is being invested in housing?

Professionals in property industry
There are too many charlatans claiming knowledge in property where they don't have the knowledge, training or the requisite input to give support and the public does not know because there is no way of educating them except from what we are doing here with the KnightService books property which we publish
What it means is that those who say they are estate agents, developers or consultants, many of them have had no training in the property industry and this is a problem.
Some of them have been caught by the police as they go about duping people, claiming to have houses where they have none.
Government brought Real Estate Developers Association of Nigeria (REDAN) up so that they can bring together the real developers under a common body. The body is recognized by legislation and many of them have the relevant qualification in the building industry.

sammyjay77

May 1st, 2008, 09:09 PM

Time for a slice of Nigerian insurance market is now - report

This is the time to grab a slice of the Nigerian Insurance industry for any offshore company considering expansion into the market, says UK think tank, UK Trade and Investment.
This is part of findings of a report by the UK institution famous for spotting global opportunities for business people in the United Kingdom
This is an auspicious time due to the success of various government initiatives to improve the industry’s investment climate such as regulations and policies, legal requirements and trade restrictions. Government’s moves are also aimed at encouraging local capacity and technology transfer, the report says.
The areas of entry, the report says, are ‘micro-insurance, banc-assurance, insurance data bureaus, etc. Other opportunities arise from the constraints faced by firms in the industry from poor marketing to poor technical capacity.’
Describing opportunities in the Nigerian market as vast, it encourages incoming investors to consider establishing new firms and acquiring stakes in existing ones through joint agreements.
The report looks more favourably at the latter option due to various Government regulations and policies, legal requirements and trade restrictions aimed at encouraging local capacity and technology transfer.
‘Joint agreement is the most viable option when considering expansion into Nigeria, the report says.
Background checks carried out towards the report reveal that, the Nigerian insurance industry has gone through two major stages. The pre-regulatory induced consolidation era that was marred by low capacity, capital flight, poor public confidence and awareness, low penetration, etc, and the post- regulatory/market-induced consolidation that aims to correct all the above mentioned ills and place the industry in its rightful place, contributing between five and 10 percent to GDP compared to less than one percent pre-consolidation.
Another fallout of the consolidation exercise is the increased number of insurance companies quoted on the Nigerian Stock Exchange from 21 to 32, increasing transparency in the sub-sector.
The leading players include NICON (leading, non-life player), IGI (second overall biggest insurer), Leadway Assurance (largest motor insurer) and AIICO (the largest life insurer).
The report is part of an industry-wide assessment of the financial services sector by the UK institution.
‘The most recent developments and policy reforms in the industry,’ the report which has got international investors busy, says, authorities in Nigeria ‘have sought to bring the industry in line with international best practice. These include the deregulation of the industry, opening it up to competition, the adoption of universal banking guidelines and a regulatory induced bout of consolidation.’
‘Since most banks and insurance companies are publicly quoted, disclosure requirements and accounting standards have forced them to observe better governance standards. However, there are still reported cases of abuse and violation of standards especially in the insurance sector.’

oshon

May 2nd, 2008, 01:18 AM

Nigeria: Developing Local Content in Telecoms Industry

This Day (Lagos)
30 April 2008
Posted to the web 1 May 2008

Efem Nkanga
Lagos

A Chinese national at an intellectual gathering once unwittingly described Nigerians as a bunch of friendly people who love foreigners and all things foreign. Though he was expressing his opinion, he hit the nail on the head because over time Nigerians through their actions and choices show in several ways their sometimes unspoken belief that anything foreign is superior to the indigenous.

This trend of thought was so bad a few years ago that Nigerians at every opportunity amassed and surrounded themselves with foreign goods, even little things like tooth picks and tissue papers were all imported with negative consequences on the economy.

That Nigeria is known as a consuming nation is a fact that has come to be accepted. Always consuming but hardly producing appears to be the nation's lot. Some have predicated this on the fact that Nigeria lacks the capacity to effectively produce for consumption, but this is debatable, as some have blamed it on lack of an enabling environment that supports productivity.

The love of the foreign has spread into the area of education, no thanks to the crumbling educational system. This has made Nigeria a Mecca of sorts for foreign scouts who come into the country in droves to canvass for Nigerian students to fill their institutions. And Nigerians especially those who can afford it are snapping up the opportunity to school abroad and soon Nigerians will be credited with having the largest community of students in foreign schools across the globe.

Despite this scenario, there's a growing consciousness, awakening to promote all things Nigerian. This trend is catching on in the fashion and entertainment world where a ray of light is shining on the indigenous, making it an area of pride for Nigerians.

This rising consciousness has of recent led to calls for increased local content and input in practically all aspects of the Nigerian economy, be it oil and gas, manufacturing, telecoms etc. This is especially true in the Nigerian telecoms sector where stakeholders have of recent been making stringent calls for more local content in the telecoms industry. Local content is one of the indices that experts have predicted will help in the achievement of the Millennium Development Goals (MDGs) for Africa by the year 2015.

For some countries and in some sectors, the achievement of these goals apart from making human life liveable, is premised on empowering as many people as possible to live meaningful independent lives and also gives the locals a sense of inclusion.

This need for local content has led to calls for as many Nigerians as possible to be re-skilled and re-tooled so that they can function in the new information society being enabled by the spread of mobile technology which has taken Nigeria by storm. No one would have predicted that in less than six years over 50 million Nigerians would have access to telephones but this is a reality today. Aside from having access to telephones, mobile technology has opened the door to various opportunities that has given many Nigerians a new lease of life.

Access to mobile technology has done wonders and enabled several sectors, especially the banking sector, leading to value added services that was a rarity before mobile technology set in. This impact has enabled a more informed society and stakeholders are calling for more local participation in software development, hardware and the knowledge economy.

This call has become a recurring decimal with most fora calling for more local content. At a recent forum held by the Association of Telecoms Operators (ATCON), telecoms experts called for more local content to ensure the accelerated development of telecommunications in the nation.

Mrs. Florence Seriki, the CEO of Omatek tasked the Federal Government to ensure more local content in the sector by enabling a better government policy on local content. She lamented the fact that presently no information technology company in the country wholly produces computers. She said that the government should encourage Local Equipment Manufacturers (OEMs) by buying more local brands of computers instead of buying foreign brands. She also advised the government to enable more local content in the telecoms industry by cancelling taxes on raw materials used by local firms.

Mrs. Seriki, who defined local content as that which is generated by communities and relevant to the needs of these communities, emphasised the need for information Communications Technology (ICT) to be made conveyor of locally relevant messages and information that will be beneficial to the people.

Gbenga Adebayo, President of Association of Licensed Telecoms Operators also made similar call. Specifically, she urged the government to increase premiums paid by foreign competitors of Nigerian owned companies in order to cut off dependency trends and increase local content.

He also called for a policy backed by government that will put more Nigerians in places of responsibilities within foreign conglomerates operating in the country.

The need to build more capacity and human capital of Nigerians especially in the ICT sector where there is a dearth of skilled personnel is a necessary ingredient that will drive the development of local content and make Nigeria a respectable player in the evolving new digital economy.

Chief Leo Stan Ekeh, aptly hit the nail on the head when he stated that Nigeria cannot afford to joke with the need for human capital development, especially against the background of the importance of ICTs, which now drives almost everything today. Emphasising that 2015 MDGs is not realisable without skilled human capital, Ekeh who described the knowledge economy as the economy of the future warned that Nigeria needs a skilled and digitally compliant population to move to the next level and take its pride of place in the comity of nations.

Ekeh who described laptop density in the country as a shame, stated that the country needs to totally embrace technology and ensure its spread by making the tools of technology available to Nigerians through favourable policies that will encourage local content and capacity building for a better and more vibrant economy.

sammyjay77

May 2nd, 2008, 08:23 AM

Foreign firms to build nuclear power plants in Nigeria

Some foreign companies have indicated interest in building nuclear power plants in Nigeria, the Director General, Nigeria Nuclear Regulatory Commission, Prof. Babatunde Elegba said on Wednesday.

Speaking in Abuja on the second day of the international conference of the Nigerian Association for Energy Economics, Elegba said NNRA had received proposals from various groups who wanted to build nuclear power plants into the country.

According to him, the plan of the Federal Government is for nuclear electricity generation in the country to be private sector led, while government performs the regulatory function as well as distribute the power because it already has transmission facilities.

The participation of private firms in nuclear power generation, according to him, will ensure that the nuclear facilities are well managed as government parastatals in Nigeria had underperformed over time.

He, however, added that there was nothing wrong with allowing private firms to build and operate transmission lines for purposes of efficiency if it could be guaranteed that they could make profit.

Elegba explained that nuclear power generation had a long gestation period because international requirements and various long term interests must be resolved and there would be the need to go between various governments to have bi-lateral agreements of cooperation.

On the comparative cost of building nuclear power plants, the Director-General said, “For about 1,000 mega watts from nuclear, it will cost about $1bn and $1.4bn. A lot of studies have shown that power from hydro and nuclear and even gas are in the same range. If you move to smaller mega watts like 200MW, you find that the cost of nuclear may be slightly higher than the $1bn for 1000MW.”

He assured on the safety of power generation from nuclear sources, stressing that, “the nuclear industry is the most regulated in the energy sector in general.

“There is nothing we can do without making sure the issue of safety is resolved. That is why it took three years to get the Nigerian government to ratify the convention on nuclear safety, convention on physical protection of nuclear materials and convention on liability because each one of them had to be domesticated.

“Before we could license the small research reactor in ABU Zaria, it took one year because assessing agencies had to come to Nigeria .”

He indicated that it would be impossible to operate a nuclear power plant without complying with all the international safety conventions.

In his remarks, the Minister of National Planning, Senator Sanusi Dagash said Nigeria needed to invest an average of $10m in the power sector every year for the next 10 years before it can generate adequate electricity needed to drive Nigeria ’s push of becoming one of the top 20 economies by Year 2020.

sammyjay77

May 2nd, 2008, 04:30 PM

Nigerian firm buys 35 pct stake of Rwandan insurer

KIGALI, May 2 (Reuters) - Nigeria's Industrial and General Insurance (IGI) has acquired a 35 percent stake in Society Nouvelle d'Assurance du Rwanda (Sonarwa) for $4 million, an official told Reuters.

IGI has operations in Ghana, Gambia and Uganda and is eyeing markets in Kenya, Tanzania, Burundi and the Democratic Republic of Congo, the chief executive told Reuters late on Thursday.

"As part of our drive to roll out operations across the African continent, we have acquired a 35 percent shareholding in Sonarwa," Chief Executive Remi Olowude said. "Within two years, we will have increased our shareholding to 51 percent."

Other shareholders in Sonarwa, Rwanda's biggest insurance company, are Rwanda's Premier Investment, National Pension Fund and the government.

In 2007, IGI posted gross turnover of $62 million, Oluwude said. He expected IGI Nigeria, National Insurance Cooperation of Uganda and the newly acquired Sonarwa to list on their respective bourses before the end of the year.

The amount of shares IGI Nigeria would list on the Lagos stock market is still under discussions, he said.

The Rwandan government plans to sell its 10 percent shareholding on the Kigali bourse.

IGI is also looking to invest in real estate, banking and agribusiness in Rwanda and has bought premises on which it plans to set up a five-star hotel in Kigali.

"The Rwandan government has succeeded in creating an investment climate that is one of the best in Africa. Money goes to stable areas, and I have seen stability and a committed government here," Olowude said. (Reporting by Arthur Asiimwe, editing by Will Waterman) (For full Reuters Africa coverage and to have your say on the to issues, visit: http://africa.reuters.com/)

Matthias Offodile

May 2nd, 2008, 09:19 PM

N60bn Wonder Lake: Imo Woos Chinese Investors

From Paul Ibe in Nanjing, 05.02.2008

Imo State Governor, Chief Ikedi Ohakim has solicited for the partnership of Chinese investors in the development of the N60 billion Oguta Lake Resort better known as the Wonder Lake Project and other projects in the state.
Governor Ohakim told Chinese businessmen at the second stanza of the 6th Nigeria-China Business and Investment Forum (NBCIF) in Nanjing, China that high margin of returns on their investments in the state is assured as all "business variables point to Imo State as a sure destination point for any would be investor coming to Nigeria."
He said that the Imo Wonder Lake Tourist and Conference Center is an ambitious project in the West Africa sub-region with great prospects for investors willing to make a stake.The Governor represented by his Special Adviser on Economic Affairs, Chuck Chuckuemeka cited a recent study by the African Institute for Applied Economics on Business Environment Across Nigerian States (BECANS), which concluded that "Imo State will always remain the choice of average foreign investors in Nigeria."
He said that the state government having taking cognisance of the importance of a clean environment embarked on the 'Clean and Green' initiative. He underlined the peaceful nature of the state as an added advantage for prospective investors hoping to make the state their destination.
"We are known to be a very hospitable state, a state that welcomes its visitors with open arms, treats them with care, and would never hurt their visitors," he said.
Moreover, he said that the huge population of the state and its trained manpower puts it in good stead as first choice of destination for investors. "The required human resources for capital development and consumption of products is already available," he said adding that "it has one of the highest, if not the highest literacy rate in the country, five colleges and universities in the capital city alone, the human development index is already established for any potential investor.
He said that the state boasts of more than 2520 kms or roads which are substantially tarred and that its close proximity to Port Harcourt and Calabar Seaports ensures that investors "can reach any market, not only in Nigeria, but the entire West Africa sub-region."He urged Chinese investors to come and take advantage of the benefits offered by investing in the Ngor Okpalla Free Trade Zones as Imo State remains one of the few states with approval from the Nigeria Export Processing Zones Authority (NEPZA) to operate a free trade zone.
He listed the natural resources in the state to include kaolin, clay, granite, petroleum and gas, and other agricultural products like palm oil, palm kernel and cassave, among others.

Matthias Offodile

May 2nd, 2008, 09:20 PM

Nigerian firm buys 35 pct stake of Rwandan insurer

That´s good to find out!:cheers:

Tbite

May 3rd, 2008, 06:48 AM

Abuja to Get 1,300 Mw - Modibbo

FCT administration is working on its Independent Power Project to complement what is being provided from the national grid by the Power Holding Company of Nigeria (PHCN). FCT minister, Dr. Aliyu Modibbo Umar, made this disclosure while briefing the FCT executive committee members on the state of power supply to the Federal Capital Territory.

The minister stated that the presidency, the FCT administration and a Korean firm are involved but that, President Umar Musa Yar'Adua, has been a catalyst to the project by personally inviting the Koreans to Abuja.

According to him, the project is expected to produce 1,300 megawatts of electricity that will be solely dedicated to the Territory, considering its importance to the socio-economic development of the country.

The minister revealed that the Independent Power Plant would be sited in Gwagwalada, remarking that the FCTA was already in the process of handing over the site to the Korean firm to enable them commence work.

He stated that there cannot be meaningful development without a solid power supply to any modern city like Abuja.

His words: "We are determined to break the jinx because we must make a difference in the Federal Capital Territory, if we must be taken seriously as city managers.

"President Yar'Adua went out of his way, to personally invite the Koreans knowing fully well that it is only through strong power base that sound economic activities can be gingered", he stressed.

Umar reiterated that the dream was realisable since the process was being driven by the private sector, who could manage such important and gigantic project going by what had been happening in the advanced countries of the world.

He assured that his administration will not leave any stone unturned since as city managers, "we are at the receiving end of poor power supply".

You are to blame

May 3rd, 2008, 07:15 AM

i would love to see a chart of Electricity production in Nigeria over the last decade. I still don't know if it's improving or deteroating

usersky0010

May 3rd, 2008, 08:16 AM

Breaking News: Nigeria to bid for the 2018 Commonwealth Games
:weird::speech:
May 02, 2008 11:07 AM

Nigeria’s president Omar Musa Yar’adua has approved his country’s plans to bid for the 2018 Commonwealth Games. It should be recalled that, the ambitions of Abuja, the Federal Capital Territory (FCT) of Nigeria to host the 2014 Commonwealth Games, which would have coincided with the country’s celebrations, marking a century of her existence, were botched, when they
lost to Glasgow, Scotland in November last year in Colombo, Sri Lanka. What is not known is whether Abuja is the selected Nigerian city, as she was in last year’s attempt or an internal competition will be organised in order to select the winning city that will represent the country. According to well informed sources, Lagos, Nigeria’s main commercial city with a population of close to 11 million and which lost her last Commonwealth Games hosting bid in 1982, is also interested. The same sources also said there were other Nigerian cities with financial and infrastructural capacities and capabilities to host such events. And the alleged Nigerian cities equally interested in biding to host the Commonwealth Games of 2018 are: Calabar, Kaduna, Port Harcourt and Kano. Perhaps this third attempt will be successful, especially that Abuja lost to Glasgow by a whiskers last year. The sources concluded that Nigeria’s president’s decision to resubmit his country’s candidacy to host the world’s second largest sporting events after the Olympic Games was as they put it: “a great day for Nigeria and our hopes of climbing the ladder”.
But to win, Abuja or any other Nigerian city selected will have to work hard and also improve on the loopholes that caused Abuja the 2014 Games. Meanwhile, the Federal Government of Nigeria (FG) has also stated that a South Korean company is to build a 1300 MW electric power plant to power the Federal Capital Territory (FCT) exclusively. Another great project to kick start next year in Nigeria and which will concern two other African states namely: Algeria and Niger Republic, is the Trans Saharan Natural Gas pipeline Project. The Trans Saharan gas project, will pipeline part of Nigeria’s large Gas deposit from the Niger Delta, through the Republic Niger to the Algerian Mediterranean port of Algiers in North Africa. The project largely financed by the European Union (EU) is part of EU’s strategy to diversify her sources of energy. The project upon completion will permit Nigeria’s gas to be closer to the consumers of Europe. It should also be recalled that, there is a similar project, linking Nigeria with her West African neighbours, tag: West African Gas Pipeline. Via The West African Gas pipeline project, Nigeria supplies gas to some of her West African neighbours: Benin, Ghana and Togo. The Trans Saharan gas pipeline may service Abuja and guarantee her uninterrupted electric power supply before the presidential elections of 2011.

Tbite

May 3rd, 2008, 08:33 AM

i would love to see a chart of Electricity production in Nigeria over the last decade. I still don't know if it's improving or deteroating

I think its has deteriorated, population growth is also a factor. However the production capacity has increased. If all the plants were operating at 100%, production would be decent.

If you look at the investments made, there should naturally be a dramatic improvement in production, but various constructions are yet to be completed, existing plants are still not adequately supplied with gas, hydro backup is reliant on the season, turbines have been purchased but have not be installed etc.

I will try and find some figures or a chart for you, but Yeah production has decreased, capacity has increased

9yja

May 4th, 2008, 03:01 PM

Bankole: FG’ll Assist Lagos on Atlantic Project

The Speaker of the Federal House of Representa-tives, Honourable Dimeji Bankole on yesterday assured that the Federal Government would continue to offer necessary support to Lagos State on the development of the Eko Atlantic City Project.
The Speaker spoke in company of Lagos State Governor, Mr. Babatunde Fashola (SAN) when they both undertook an inspection of work at the Eko Atlantic City project at the Lagos Bar Beach .
In his words: "For Lagos State Government to come in and do what it has done and rescue the Bar Beach, we at the Federal level will continue to support whenever and wherever to keep Lagos improving".
Lagos State Governor assured that a model city to be known as Eko Atlantic City would develop from the second phase of the present Bar- Beach which is about to commence.
He added that the new city would a twenty first century city that is one and half the size of Victoria Island with no problem of pollution and refuse and twenty four hours electricity supply,
Fashola assured that the new city would one that compares to any other city anywhere in the world.
The Lagos State Governor described the progress on the work as the beginning of development and progress and a reflection of the fact that the State has a very focus team which is ready to discharge its responsibilities as it is expected of all political office holders.
The Speaker while responding to a question from newsmen said for Lagos to earn any special allocation, the State must be ready to lobby the lawmakers just like any other state would expected to do.
Earlier while briefing the Speaker and Governor Fashola on the project, the Managing Director of South EnergyX limited, Mr. David Frame informed that the first phase which has just been completed involved the protection of the shoreline by 1.5kilometres.
Mr Frame said the total size of the new city would be 8.2hectares and would include infrastructure and first class roads that are the hallmarks of a high rise development city.
He said the project which is being funded 100 percent by private investors aims to reclaim all land lost to erosion in the past.
He assured that there exist no fears of Tsunami in Lagos as there are no ports on the sea bed of the Atlantic Ocean as experience in the Far East has demonstrated.
The Governor and the Speaker were accompanied on the inspection by some members of the House of Representatives who accompanied the Speaker to Lagos .

:banana::banana:

Michaelda

May 4th, 2008, 06:50 PM

Africa's biggest oil producer goes green

by Jacques Lhuillery Sat May 3, 11:25 PM ET

LAGOS (AFP) - In his office in Lagos, Alain Salleras, a Frenchman of about 50 for whom biofuels are something of a crusade, is working away at his pet project -- producing ethanol from sweet sorghum in Nigeria.
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Salleras, executive director of Global Biofuels Ltd, which has partnered with India's Praj Industries and the Nigerian National Petroleum Corporation (NNPC) for its project, is at pains to pre-empt any questions on the growing controversy over the alleged impact of biofuels on agriculture.

"Contrary to manioc, sorghum, of which Nigeria is the world's leading producer, has no impact on food supply," Salleras emphasised.

Indeed, if he is to be believed, sweet sorghum has only advantages over sugar cane, another crop often grown for biofuels.

He says sorghum requires one quarter of the water that sugar cane needs, it produces two or three harvests a year, you get far more ethanol per hectare under cultivation -- nearly four times as much in fact -- and there is no wastage.

"To make the ethanol we only take the stalks, which are rich in sugar. The grains go for food and the rest for animal fodder," he says.

Even the fibrous residue from the crushed stalks, known as "bagasse," is recycled. This biomass is boiled to produce steam to make electricity.

Global Biofuels has taken on a Nigerian specialist Babatunde Obilana, who spent 20 years with the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), working notably on Zimbabwe and Kenya.

Salleras, a former executive with French construction company Vinci, the former SociÃ©tÃ© GÃ©nÃ©rale d'Entreprises, and compatriot Jean Lamoliatte aim to be producing their first litre of sorghum-based Nigerian ethanol next summer.

In Ondo state to the west of Lagos the sorghum seeds have been sown at Arigidi Akoko and the processing plant will be built by Praj Industries, a biofuels technology company.

Initally Salleras is expecting daily production of 9,000 litres. That is estimated to rise to 240,000 litres a day when the full 10,000 hectares of sweet sorghum are ready for harvest.

By this summer 300 hectares will be ready for harvest and by April or May of next year between 3,000 and 6,000 will be ready.

This is still a far cry from the 30 million litres of fuel consumed every day in Nigeria, but the boss of Global Biofuels has big ambitions.

In three to five years' time he is aiming to produce five percent of Nigeria's total consumption, that is around 1.5 million litres a day.

Global Biofuels plans to establish seven ethanol refineries, each with an associated plant for livestock feed production, in various parts of Nigeria. Each refinery/feed plant will jointly employ 8,000 Nigerians and create an additional 40,000 indirect jobs, the company says.

"It's the first in a long series of projects, in line with the Kyoto Protocol engagements which stipulate that by 2020 10 percent of energy consumed must be of non-fossile origin," Salleras explained.

Construction work on the second of the seven plants will start in June in Ekiti, a state sharing a common border with Ondo.

The Ondo state project alone represents an investment of some 70 million dollars, 65 percent of which is from private investors. The rest will be financed by credits.

NNPC has undertaken to buy all Global Biofuels' production in Nigeria and plans to use it for automobile fuel and for powering breweries and pharmaceuticals plants.

Nigeria, which despite being Africa's biggest oil producer, suffers from a chronic fuel shortage, is counting on biofuels to help solve the problem.

NNPC in 2005 created a Renewable Energy Division (RED) tasked with developping biofuels from manioc or sugar cane, two crops that are abundant in Nigeria.

The unit aims to have a prosperous national biofuels industry up and running by the middle of 2012.

You are to blame

May 5th, 2008, 09:03 AM

I think its has deteriorated, population growth is also a factor. However the production capacity has increased. If all the plants were operating at 100%, production would be decent.

If you look at the investments made, there should naturally be a dramatic improvement in production, but various constructions are yet to be completed, existing plants are still not adequately supplied with gas, hydro backup is reliant on the season, turbines have been purchased but have not be installed etc.

I will try and find some figures or a chart for you, but Yeah production has decreased, capacity has increased

It's boggoles the mind that production is decreasing even as capacity increases.

Tbite

May 5th, 2008, 03:30 PM

Demand 10,000 Megawatts Capacity 6000 Megawatts Production 2000-3500 Megawatts

allhavoc

May 5th, 2008, 04:25 PM

August date for N1.63b Lagos landscape projects stays, say officials
By Tunde Alao

FOLLOWING a review of on-going landscaping and beautification projects in Lagos, state officials last week pledged to ensure compliance with the August 2008 completion dates fixed for the projects.

In all, contracts worth N1.630 billion have been awarded to contractors for projects around the city. Project locations include the Ojota Loop Garden, which contract was awarded on April 1, to Messrs. Kiosque Vegetal Limited, at N10.3 million. The expected duration is six weeks from the date it was awarded.

There is also the contract for landscaping and beautification of the triangular lay-by between Palm-grove and Obanikoro by Ikorodu Road, awarded to Messrs. Shodex Beautification Landmark Limited, at N110 million. The contract was awarded in March and is to be completed in August 2008.

The landscaping and beautification exercise along Mobolaji Bank Anthony Way, is to be carried out by Messrs. Integral Landscaping Limited at a cost of N380 million; it was contracted out in February 2008 with a 24-week completion period.

Similar, projects have been planned at the Ikoyi Warders' barracks, where perimeter fencing and landscaping would be carried out. The project cost was put at N10.2 million. The executing contractor is Messrs. Shodex Landmark Beautification Limited. The project was awarded mid February 2008.

But the biggest among the projects is the Isheri/Oworonshoki via the old toll gate, which value is put at N750 million. The contract for the project, which was won by Messrs. Arabella Landscape (Nig.) Limited, was awarded in March with August 2008 as the completion date. The schedule of work includes beautification of the entire stretch of median from the tail end of the Third Mainland bridge (Berger Bus Stop), to the toll gate and the embankment at Ogudu entrance down to Alapere.

The N200 million Ijora Cause Way project was warded to Messrs. Tafskad Services Nigeria Limited. The completion period for the project is six weeks, starting from March 15, 2008, when the contract was awarded. Similar, exercises are on-going at the Ikeja Airport Road (N22.8 million) and the round-about, which contract cost was not made available.

Speaking on progress recorded so far in the execution of the projects, the Commissioner for Environment, Dr. Muiz Banire, said the August 2008 schedule "remains sacrosanct."

The state government, Banire said, is satisfied with the progress of work on the various projects with the Isheri/Oworonshoki project already at 15 per cent, while the Ijora Cause Way project is estimated at 20 per cent completion.

The scope of work consists of three phases, namely: site clearing and evacuation, leveling, drilling of bore holes and laying of pipes and, grassing and planting of trees. The second phase involves engineering works involving construction of walkways, paving stones and fence, while the third face involves the completion of landscaping and puttering.

sammyjay77

May 6th, 2008, 07:44 PM

Nigeria’s Telecoms Subscriber Base Hits 60m

Despite quality of service issues which led to the Nigerian Communications Commission NCC directive to two major GSM operators to refund a total of 4.7 billion naira to subscribers on their networks, the nations subscribers base has increased to 60,941,434 as at March 2008.
This is an increase from 59,568,302 recorded in January this year. A breakdown of the recent data posted on the website of the NCC showed that GSM operators took the lions share with 57,622,901, while mobile Code Multiple Division Access CDMA recorded 780,938 and fixed wired/wireless recorded 2,537,504 lines.
The total active subscriber base was put at 45,899,711, up from 42,915,867 recorded in January. Out of this total, GSM recorded 43, 786,542 active lines, mobile CDMA, 567,185 and fixed wired/wireless 1,545,984.
Total installed capacity also increased to 88,471,789 up from 84,698,559 with mobile GSM also the highest with 79,625,308, mobile CDMA 3, 170,000. While fixed wired /wireless is 5,676,481.
This addition to the nationâ€™s subscriber base means that the telecoms teledensity ratio has increased from 30.65 in January to 32. 79 as at the end of March.

Over the years, since the introduction of the GSM technology into the nationâ€™s landscape, the telecoms subscriber base has consistently showed increases quarter by quarter and year by year.
From 2001, when MTN Nigeria, Celtel, formerly V mobile, Econet and Mtel, held sway, total subscriber base was 866,782 and teledensity was 0.73 . In 2002, the subscriber base more than doubled to 2,271,050 lines with a 1.89 teledensity ratio. Mobile GSM subscriber base took a major share of 1,569,050 lines, fixed line 702,000 lines. In 2003 the subscribers increased fundamentally with the entrance of Globacom, the nationâ€™s national carrier with came in with innovative tariffs and products like the â€˜â€™per second billingâ€™â€™ which other operators had said was impossible to drive the nationâ€™s subscriber base to 4,021, 9445 with mobile GSM in the forefront with 3,149,472 lines and fixed line subscribers 872,473 lines and a double teledensity ratio at 3.35.
A phenomenal growth was recorded in 2004, a landmark year by all means with a teledensity increase from 3.35 to 8.5 and a more than double subscriber base increase to 10, 201, 209 from 4,021, 9445 of the preceding year.
GSM subscribers took the lions share again with 9,174,209 lines as opposed to 1,027,519 subscriber base recorded by fixed subscribers.
In 2005, subscriber lines and teledensity ratio doubled to 19,519,154 and 15.72. with GSM subscribers leading with 18, 295,896 lines against the fixed subscribers lines of 1,223,258.
In 2006, the trend continued with lines at 33,858,022 lines. Within the period, the GSM sector accounted for 32,184,861 lines while the fixed lines players recorded 1673,161 lines to bring the nation's teledensity to 24.18.
In 2007, year, total connected lines grew astronomically to 57,687,544 with GSM subscribers leading with 54,413,874 and fixed lines recording just 824,741 while fixed wired /wireless recorded 2,449,019 subscribers making Nigeriaâ€™s telecoms sector the fastest growing in Africa with a 29.98 teledensity ratio.
The consistent increases recorded in the sector despite challenges has been attributable to the sound regulatory environment that has encouraged competition in the sector through the licensing of new players. New players like Etisalat and Visafone have come in to join the likes of MTN, Globacom Celtel and Starcomms driving the dynamic growth being recorded in the industry. The Commercial launch of Etisalat expected in the next few weeks is expected to further increase the subscriber base fundamentally.
The telecommunications sector has brought in over 11.5 billon dollars into the nation and Nigeria has lived up to predictions recorded at the beginning of last year by overtaking South Africa as the largest telecoms market in Africa

sammyjay77

May 6th, 2008, 07:45 PM

Group Launches Website against British Airways

Against the backdrop of a recent maltreatment of 137 Nigerians on board the British Airways (BA), a group of Nigerians have launched a website against the airline to protest the development and apparently forestall a reoccurrence.
The website, www.antibritishairway.com, describes itself as a modern tool to resist injustice, racial discrimination and 21st century form of slavery.
The owners appealed to all civilised minds all over the world to join hands with them to make the world a respectable place for all citizens.
The homepage includes topics such as an introduction, general discussion, my experience with BA and BA in the news as its menu.
However, the other vital part of the website is its forum, obviously made to increase the page view and hit rate. As at press time yesterday, it has recorded 19 posts among 18 viewers.
On March 27 this year, about 137 Nigerian passengers who boarded BA flight 0075 from London to Lagos had witnessed the maltreatment of the said Nigerian, who was handcuffed and forced into the flight.
The way he was manhandled, which made the deportee to shout for help, prompted a Nigerian passenger, Ayodeji Omotade, to call on British Immigration officials to exercise restraint unless they wanted to kill him.
Angered by the words of sympathy from Omotade, the Immigrations officials took the deportee and the sympathiser out of the plane and arrested the latter and detained him, while the deportee was returned to the flight.
Outraged by that incident, Nigerians who were witnesses and many others who read the report in the British tabloid, Daily Mirror, wrote a protest letter, which was signed by over 1000 Nigerians to the President, the Senate President and the Speaker of the House of Representatives.
They demanded a front page apology in a Nigerian national daily newspaper to all passengers on board flight BA0075; a written apology and appropriate compensation to Omotade; lifting of the life ban imposed on Omotade by BA and all criminal charges against him dropped forthwith.
The website owners, who simply identified themselves as Nigerian IT professionals, reminisced metaphorically on how the military rolled out submachine guns against people holding sticks and stones not against foreign invaders but against the very people that decided to have military set up.
The group lamented the fate of the black man who they feared was destined for maltreatment even when he pays more than others for the same service.

sammyjay77

May 6th, 2008, 07:48 PM

FG targets $10bn annual foreign investments

THE Federal Government on Monday opened discussions with 14 international investors under the auspices of Zurich 9 with the aim of attracting at least $10bn annual investments.

At a pre-talks briefing that attracted the ministers of National Planning, Environment, Transport, Communications, and Energy; the Minister of Finance, Dr. Shamsuddeen Usman, said in Abuja that the investors would help Nigeria in meeting the targets of the seven-point agenda.

“These are not ‘briefcase investors,’ they are coming here with cheques with the hope of investing in the critical sectors of Nigeria’s economy in line with President Umaru Yar’Adua’s seven-point agenda,” Usman said.

On assumption of office last May, Yar’Adua produced a seven-point agenda, which defined his framework and map towards achieving his targets in office.

The seven-point agenda include, power and energy, food and security, wealth creation, transport sector, land reforms, security, and education.

Yar’Adua, had in January, said the country would require investments of about $10bn annually to be among the top 20 economies of the world by the year 2020.

Usman explained that the Zurich 9 was a group of nine investors inaugurated by Yar’Adua on January 25 after a meeting in Davos, to help the country achieve its dream of becoming one of the top 20 economies by 2020.

“But today, we have 14 investors that are willing to invest in Nigeria. We expect a strong relationship with them. We also hope to perfect business transactions with them,” he added.

He said that the investors would be given the opportunity to discuss with specific ministers in areas where they had interests.

Members of the delegation expressed the hope of investing in the country.

The Director, Business Development, Isolux Corsan, a Spanish firm, Mr. Joaquin Navarro, said his company would be interested in investing in the power sector.

“Power supply is an important sector to Nigeria and is one area we intend to put our investments in,” he said.

An official of Cotecna, Mr. Robert Bassey, said his company would look at the possibility of diversifying into areas such as oil and gas and solid minerals.

Cotecna, which is a large player in Nigeria’s maritime industry, said it planned to establish a solid minerals testing laboratory that would serve the interest of the government and private sector players.

The Nigerian Ambassador to Switzerland, Mr. Martin Uhomoibhi, said several investors across Europe were interested in investing in Nigeria.

Uhomoibhi, who assembled the delegation, said that more investors would come to Nigeria in the days ahead to invest in the country.

sammyjay77

May 6th, 2008, 07:53 PM

Nigeria’s banking sector rated alongside India, China, South Africa, says Soludo

Nigerian banking industry is today rated along side the banking industry of emerging world economies like Israel, China, India, Poland and South Africa.

Governor, Central Bank of Nigeria, Chukwuma Soludo disclosed this yesterday at the opening of a one week investigative hearing on Nigeria capital market by the House of Representatives.
According to him, the Nigerian Stock market has become a key aspect for the creation of prosperity in the country.
“The boom in the banking sector has become the key drive of not only the national economic prosperity that is going on in all other sector of the economy but also specifically the boom in the capital market. If you take the entire index itself, probably not less than sixty percent of the index is accounted for by the banking sector. The banking sector is not just the dominant sector today in the Nigerian economy but the dominant sector in the capital market” he said.
The CBN stated further that of the ten most capitalised companies on the exchange, eight of them are banks.
He told the committee that the Nigerian Stock Exchange happens to be one of the fastest growing in the world and rated alongside banks of emerging world economies.
“As at February last year the total market capitalisation was about $35 billion in fact by early December 2006 the London Financial Times predicted that at the rate the Nigerian stock Exchange was growing by the end of 2007 it was likely going to rich a total market capitalisation of up to $100 billion to become second in Africa after South Africa ahead of Egypt.
That was the prediction of Financial Times in December 2006, but the good news is that as at March this year the Nigeria Stock exchange total investment has exceeded a $100 billion well ahead of the predictions” he said.
He also said the banking sector in all ramifications has grown many times over in level of deposit and credit which has gone up to about 600 percent.
Soludo stated that the total credit to the private sector has gone up from about 1.4 trillion and last year alone the credit to the private sector has unprecedented growth of ninety seven percent.
“We never had anything as that size in our history. Today, our banking sector for the first has been rated as a system by Fitch and the banking sector today is rated in the same category as Israel, China, India, Poland and so on” he said.
The CBN Governor then explained that the massive transformation that has taken place in terms of capital and getting money from the capital market might be responsible for the problem of certification for shareholders.
According to him, this is probably because all the eighty nine banks put together had a total share holder fund of N293 billion.
“Prior to consolidation the total number of shareholders in our banks was about five million investors today we are talking about nine million investors within a short space of time. It is important to know this so that we appreciate the magnitude that the issue of size and appreciate the efforts of the stock exchange in coping with this magnitude of changes that has taken place within a short space of time.
“As we speak now, two banks; each of them has a shareholders fund greater than the eighty nine banks put together. One has N302 billion in terms of shareholders fund much of it raised from the capital market. The other one N320 billion much of it also raised from the capital market.

sammyjay77

May 6th, 2008, 07:54 PM

Renaissance Capital predicts N35 trillion GDP for Nigeria by 2010

Nigeria’s Gross Domestic Product (GDP) valued at level prices would likely hit N35 trillion ($300 billion) in the next three.
Renaissance Capital, (RenCap) a leading international finance group, in its recent report on Nigeria noted that the country’s GDP would increase by 79.5 percent in the next three years from N19.5 trillion ($166 billion) in the end of 2007.
Compared to the figures released by the National Bureau of Statistics (NBS), the 2010 GDP forecast
would represent a 52.8 percent increase. NBS has earlier given an estimated value of N22.91 trillion ($197.5 billion) as the country’s GDP in 2007.
According to the NBS, country’s GDP rose by 23.39 percent to N22.91 trillion from N18.57 trillion in 2006. The implication is that, the value of total goods and services in output within the period has increased by additional N4.34 trillion. $197.5 billion.
The government agency had also estimated real GDP growth rate to be 7.64 percent for 2007 as against 5.63 percent recorded in the preceding year.
However, Andrew Cornthwaite, RenCap’s chief executive officer for Nigeria, said the country’s GDP could grow at between 12 and 15 percent per annum if issues like power and infrastructure were fixed.
Nonetheless, he said the country was growing well at the current rate in spite of the infrastructural and political problems.
The RenCap report also forecast that GDP would expand by as much as 9.1 percent in 2008, following growth of 6.3 percent in 2007.
“This was higher than expected given that the Yar’Adua administration took time to settle in after the April elections, and civil strife in the Niger Delta region caused oil-output disruptions.”
It however noted that a political settlement of the Niger Delta crisis, the cost of which is estimated at about $60 billion since the early 2000s, will be crucial to boosting development in the short and medium term.
The country report titled: “Nigeria: On the Eve of a Breakthrough”, which was released on last Wednesday, Renaissance Capital said the longer-term outlook would be constrained by infrastructural under-development, especially in electricity as well as ageing infrastructure, particularly in the oil sector.
The finance company said recurring drops in electricity generation and distribution are a reminder of the scale of power infrastructure under-development, noting that about 57 per cent of the Nigerian population does not have access to electricity according to a survey of the International
Centre for Energy, Environment and Development. It said this was in spite of the more than $10 billion spent by government to upgrade the sector’s infrastructure.

Matthias Offodile

May 6th, 2008, 08:06 PM

Nigeria’s Telecoms Subscriber Base Hits 60m

Good, but I want to see it reach 100 million in the next 2 years!

Matthias Offodile

May 6th, 2008, 08:31 PM

Vision 2020: Nigeria requires $600 billion investment – FG

By UBONG UKPONG, Abuja
Tuesday, May 6, 2008

The Federal Government says that 600 billion United States (US) dollars investment was needed in the next 12 years if the country would achieve its dream of being listed as one of the 20 most developed economies of the world.

Foreign Affairs Minister of State, Tijjani Kaura, disclosed this on Monday in Abuja, when he received a team of nine investors known as the Zurich Nine, into the country.
The Minister, who noted that the administration of President Umar Yar’Adua was committed to the dream, said the team was in the country at the instance of the President, who invited them when he attended the 2008 Economic Forum in Zurich, Switzerland.

He pointed out that the invitation to the group to invest in the country indicated President Yar’Adua’s resolve to attain the required quantity of investment that would earn the country the dreamed economic status in the world.
Stating that the expectations of the country from the group was high, Kaura said there was a need for the group to cover specific and major sectors of the economy, in furtherance of the seven-point agenda of this administration.

The minister said there were friendly government policies, legislation and incentives for them to invest in the country, adding that there was also adequate security for their investments.
The team leader and President of Cercle Diplomatique Gene‘ve, Robert Blum, said they were in the country to support investments in several sectors and would work assiduously to strengthen the economy of the nation.

sammyjay77

May 6th, 2008, 08:43 PM

The Changing Face Of Lagos

Lagos is gradually wearing a new, appealling look, on account of the on-going beautification project of the state government, writes KAZEEM UGBODAGA

The improving beauty of the city of Lagos is now a pleasant sight to behold. In every nook and cranny of the metropolis, beautiful flowers and lawns could be seen. The ugly state of the environment is gradually giving way to an appealing landscape.

There is no doubt that the face of Lagos is changing very fast. The Lagos State government has decided to commit billions of naira to beautifying the environment and make the ambience more beautiful.

Currently, beautification works worth over N1.6 billion are ongoing across the state. The Ministry of the Environment is spearheading this beautification exercise.

Recently the Commissioner for the Environment, Dr. Muiz Banire and officials of the ministry toured various beautification sites across the state to assess the extent of work done so far.

One of the project sites visited was the Ojota Garden rehabilitation awarded at a cost of N10.4 million with a view to making the loop to a standard that befits the status of a mega city.

According to Banire, the objective of the project was to erase the unacceptable environmental nuisance that characterised the loop and transform it into a garden and improve the aesthetics of the environment.

“The scope of work for the project includes clearing, excavation, construction of irrigation system, installation of garden furniture, hard landscaping, lightning, networking of vegetation and maintenance. The project is expected to be completed in six weeks,” he said.

The beautification of triangular lay-by between Palmgrove and Obanikoro awarded to Messrs Shodex Beautification landmark limited cost N110 million.

Banire said the site was being beautified to curb indiscriminate abuse of the triangular lay-by by illegal occupants such as motor garages, car wash operators and illegal traders. The project would be completed in August 2008 with about 60 per cent of the work completed.

Another site being beautified in the Mobolaji Bank Anthony Way, awarded to Messrs Integral Landscaping at N380 million. The objective of the project is to enhance the aesthetics of the road.

The beautification of the Isheri-Oworoshoki through Tollgate is the biggest of the project as it cost N750 million and would be completed in August.

“The main objective of the project is to upgrade the state of our environment and create an aesthetic policy on Operation Green Lagos and especially to create a lasting impression on visitors coming into Lagos State through this corridor,” said Banire.

Ten loops are being beautified into parks and gardens at a cost of N138 million. The loops include Ketu-Alapere, Oworonshoki, Olopo Meji bus stop, Adeniji Adele along 3rd Mainland Bridge and Sura Simpson. 90 per cent of the beautification work has been completed.

There is also the beautification of Ijora Cause way, Apapa which cost N200 million with the objective to restore the lost greenery of the area through the landscaping and beautification of the area and improve the aesthetics of the environment, while beautification of two loops at Ikeja Airport and Warders’ Barracks cost N22.9 million and N10.5 million respectively.

Upon completion, under bridges and loops that used to be the hideout of criminals and hoodlums will have been taken over by flowers that will enhance the aesthetic beauty of Lagos and boost its mega– city status.

sammyjay77

May 6th, 2008, 08:48 PM

The Eko Atlantic City Dream

In the next few years, a dream city will change the face of Lagos State. That city is the Eko Atlantic City. The city was conceptualised by erstwhile Governor of Lagos State, Bola Tinubu, while his successor, Governor Babatunde Fashola, will execute the dream city project.

After years of trying to look for a solution to the perennial surging of the waves at the Lagos Bar Beach, the idea to transform the beach into a world class tourist centre came up. It was this idea envisioned by Tinubu that eventually gave birth to the Eko Atlantic City concept.

The city is to be built on the Atlantic Ocean by Energyx Nigeria Limited. The foreign company will provide the $3.5 billion (N417 billion) needed for the project and later recoup its investment over time. The developer has been given a 70 years certificate of ownership of the reclaimed land according to an agreement signed on the project.

The first phase of the project was the reclamation of 1,500 metres of the shore line to prevent the perennial surge. The project was handled and completed by Hitech Construction Company limited last year.

Last Wednesday, the Eko Atlantic City was launched by the state government. President Umaru Yar’Adua, represented by his Chief Economic Adviser, Malam Tanimu Yakubu, undertook the turning of the sod for the commencement of the project. It will be completed by 2015.

The Atlantic City when completed will be bigger than the present day Victoria Island. The city targets 250,000 residents and 200,000 commuters flowing daily to the Island to work. The proposed city will be sited on the reclaimed land area covering eight million square metres. In actual fact, the state government is only reclaiming the ocean front which had been lost to erosion in the past 100 years.

According to the Commissioner for Waterfront and Infrastructure Development, Prince Adesanya Oniru, the Eko Atlantic City will rise as the next generation of property in Africa. “The city will combine residential, commercial, financial and tourist accommodation in a location serviced by a state-of-the-art high-tech infrastructure,” he said.

The site of the Eko Atlantic City will be reclaimed in a sea-bed dredging of the waters of the Atlantic Ocean in an environmental friendly process that does not leave an impact on the marine life. The design of the city includes protective breakwaters on its outer perimeter to provide shelter from ocean waves. The break water will be designed as a submerged and immerged wall utilising advanced “x-blocs” enormous x-shaped concrete blocks designed to dissipate the energy of waves. The land will be reclaimed through a mixture of sand filling, rocks and concrete.

Concession holder and primary developer, Energyx Nigeria Limited, will be entitled to grant leasehold to buyers of any plot of land. The company adds infrastructure to it. It will be the investors’ responsibility to construct whatever they wish on their plots of land according to guidelines established by Eko Atlantic Development.

The cost of owning a property on the Eko Atlantic will be made known after the reclamation of the sea shore by the developer.

At the launch of the project last week, Oniru said the reclaimed land area of the project would commence from the existing east mole and extend eastwards with a total length of 6,500 metres and the average of 1,260 metres width.

He said the southern boundary would be protected by the main revetment or sea-bed with an extended length of 6,500 metres while the northern boundary would remain the existing Ahmadu Bello Way, being reconstructed to an eight lane highway to be known as the Coastal Road.

The infrastructure to be provided on the Eko Atlantic City comprise an international standard road network, dedicated electrical power generation plant and underground distribution, surface water drainage, water supply treatment plant and distribution mains, sewage collection mains and a modern treatment plant, network of service ducts to provide Information Technology (IT) services and post-construction maintenance and management of the facility.

The development types envisaged in the proposed city include family entertainment centres, water-based entertainment and recreation centres, Marina Development and Boat Club, theme parks, upscale commercial, office, retail and residential property, office parks, shopping malls, beach and recreational park development, hotels, guest houses, club houses, resorts and conference, event and exhibition facilities.

“I therefore seize this opportunity to appeal to institutional investors, property developers, both local and foreign, multinationals, corporate organisations and the public to avail themselves of this unique opportunity to invest in the Eko Atlantic City, Nigeria’s leading real estate and the new business district of the fast growing mega city of Lagos,” said Oniru.

According to Fashola, “our administration has sustained this promise as a debt to our people and we are here to perform the turning of the sod of the Eko Atlantic City project, signifying the commencement of the second and third phases of the Bar Beach project of reclamation and development of the premier beach into a multi-purpose tourism, commercial and residential area.

“The development of Eko Atlantic City is a classical example of the government policy thrust of fast-tracking infrastructure development of the state through Public-Private Partnership (PPP).

“This is what gave birth to the memorandum of understanding and working relationship between the state government and the sponsor and promoter of Eko Atlantic City project, Energyx Nigeria Limited.”

Tinubu was visibly elated at the launch of the project last week. He hopes to be able look back and say his efforts were not in vain as the dream city may become reality in his life time.

“It is a day of joy for me. For several years, our Bar Beach has been a scene of sorrow and a threat to our security. We were determined to find solution to this problem, even beyond the shores of this nation.

“The question of who bears the financial burden was a great concern but Energyx Nigeria Limited indicated interest. However, it was a risky venture when we took the decision to protect the Bar Beach.

“The investors will spend their own money on the work, bear the risk and build the city of our dream, but it will be a city of economic development to our nation. This place will be a tourism haven,” Tinubu stated.

Managing Director, Energyx Nigeria Limited, Mr. David Frame, said the project would be completed by 2015. He said the first two million square metres which is one-third of Victoria Island would be completed next year.

He added that all marine work would be completed by 2013 while the project would be delivered by 2015.

Frame assured the people that the company was committed to the project.

On his part, President Yar’Adua commended the state government for harnessing science and technology to overcome the challenges of nature.

He said it was very noteworthy that the former administration, through its foresight, succeeded in transforming what almost everyone regarded as a danger and liability to a potential asset to the state.

The President praised Fashola for carrying the vision forward in boosting the nation’s territorial waters and using science and technology to tackle challenges occasioned by nature.

The Eko Atlantic City, when completed, is expected to be the first of its kind in Africa and will serve as the economic hub of the African continent. However, the city is meant for only top class investors and the elite in the society as low income earners could not afford the cost of securing accommodation in the city.

sammyjay77

May 6th, 2008, 08:49 PM

178 Roads Under Construction In Lagos —Govt

A total of 178 roads are currently under construction or rehabilitation across the 20 local government areas of Lagos State, Special Adviser to Governor Fashola on Works and Infrastructure, Engr. Ganiyu Johnson has revealed.

Johnson also disclosed that the design for the planned 10-lane Lagos-Badagry Expressway will be ready in mid-July this year. He said the roads which amounted to 258.396 kilometres, were at various stages of completion.

Johnson stated that each of the two sides of the Lagos-Badagry Expressway was being expanded by 100 metres to ensure convenience and safe driving.

According to the Special Adviser, structures which fell within the 100 metres extension of the road on both sides would have to give way, adding that owners of structures found to be legitimately built on the affected areas would be adequately compensated.

Other features of the Expressway, Johnson said, would include specific corridor for a light rail and bus transit lanes, adding that the design of the road was in progress while actual construction would commence as soon as the working drawings were ready.

He listed the local government areas where construction and rehabilitation of roads were currently going on to include Agege, where six roads are currently under construction; Ajeromi/Ifelodun, where seven roads are under construction and rehabilitation; Alimosho, with 26 roads; Amuwo-Odofin with 14 and Apapa with seven roads under construction/rehabilitation.

Also under construction/rehabilitation are two roads in Badagry, three roads in Epe, 15 roads in Eti-Osa, five roads in Ibeju-Lekki, nine roads in Ifako-Ijaiye, nine roads in Ikeja, 13 roads in Ikorodu, 15 roads in Kosofe, six roads on Lagos Island and 14 roads in Lagos Mainland.

Others are three roads in Mushin, five roads in Ojo, five roads in Oshodi-Isolo, six roads in Somolu and six roads in Surulere.

Giving further details of the major road projects, Johnson said in Mainland Local Government Area, a total of 33 roads and six pedestrian bridges have been identified, to be carried out in phases, adding that the reconstruction of Murtala Muhammed Way from Yaba to Iddo, which fell within the first phase, had reached 40 per cent completion while Messrs P.W. Limited has been mobilized to commence work on Herbert Macaulay Way, Aje Street, Commercial Avenue, Commercial Road, Montgomery Street and Old Yaba Road, which make up the second phase of the project.

The Special Adviser said the state government had also recognised 11 strategic roads for redevelopment in the Apapa Central Business District, adding that the project, which is to be handled by Messrs Julius Berger, would be done in four phases includes Aerodrome Road, Calcutta Crescent, Duala Road and Kofo Abayomi Street, among others.

According to him, the third phase of the Lagos Island Business District awarded by the immediate past administration has reached 85 per cent completion, adding that the project involves the extension of Brook Street, Adeniji-Adele Outer Ring Road, extension of Odunlami Street, extension of Ereko-Martins Street.

The Special Adviser said a total 49,439.520 tonnes of asphalt was produced by the state’s Public Works Corporation from June 2007 to March this year, adding that the rate of production has enhanced the progress of work in all the construction and rehabilitation sites.

Pledging continued progress in all fields of the ministry’s responsibilities, Johnson said so far the ministry had kept to the electoral promises of the administration of Governor Fashola

sammyjay77

May 6th, 2008, 08:57 PM

Adobe Enters Nigerian Market

To ensure effective distribution and availability of its products, Adobe Systems Incorporated has been formally launched in Nigeria and the West, East and Central Africa region.

The company is thus well positioned to meet the growing demands for genuine Adobe products in the region.

Speaking at the formal launch ceremony, the Regional Manager, MEA and MED, Adobe Systems Incorporated, Andrew Lindstrom, said the company has segmented its market here into three, namely: government, education and commercial.

“Our focus for this market is very high because of the demanding nature. We have products that will enhance productivity in each segment of the market,” Lindstrom explained.

The company’s goal, he stressed, is to keep its products and services open and available to customers everywhere at all times in the market.

“We will achieve this through our reliable resellers; so we have a huge plan to train all our certified resellers on our procedures and programmes now that we have a proper structure on ground in this region.”

Andrew added that “customer satisfaction and human development will be our major focus. We will look into the issue of pricing to encourage our customers who buy original software, and discount will be readily available to them.

“This will totally discourage pirating our software, as this a major challenge we are putting

measures in place to curb.”

The Compliancy Manager for MEA Adobe Systems, Alastair de Wet, spoke on the company’s

plan to tackle piracy in the Nigerian market.

Wet said that “as a member of the Business Software Alliance (BSA), our strategy is to make our products available at affordable prices, do more of educating and supporting our resellers and also work closely with the government agencies to fight piracy by enforcing the anti piracy laws”.

The reseller and users at the event were taken through some of the latest features in Adobe products like the Photoshop, Illustrator, and Acrobat.

The formal launch event thus re-establishes the presence in Nigeria of Adobe; repositions the company’s wide range of products, and reintroduces the categorized reseller channel of original Adobe Software.

Adobe System Incorporated was founded in 1982, and since then Adobe has revolutionized how the world engages with ideas and information.

For the past 25 years, the company’s software and technologies have redefined business,

entertainment, and personal communications by setting new standards for producing and delivering content that engages people virtually anywhere at any time.

sammyjay77

May 6th, 2008, 08:58 PM

BRT: Lagos To Acquire 500 New Buses

The Lagos State government says it will increase the fleet of its Bus Rapid Transit (BRT) scheme with 500 buses next year.

The BRT scheme took off on 17 March, with 126 buses on the Mile12-CMS route.

The chairman, Lagos State House of Assembly Committee on Information, Strategy and Security, Ahmed Omisore, disclosed at the weekend that the additional buses would enable the scheme cope with its increasing number of passengers. He said more BRT routes would also be created this year to further attend to the needs of commuters in the metropolis.

Omisore did not disclose the cost of the buses but explained that no amount would be too much to make transportation easier for Lagos residents.

Michaelda

May 6th, 2008, 10:08 PM

Renaissance Capital predicts N35 trillion GDP for Nigeria by 2010

is it nominal or per PPP, cause its already passed that in PPP terms

Alex Roney

May 6th, 2008, 10:22 PM

Vision 2020: Nigeria requires $600 billion investment – FG

Hmm... I think they mean top 20 largest economies. What's Nigeria today, 35th?

Rdokoye

May 7th, 2008, 04:44 AM

is it nominal or per PPP, cause its already passed that in PPP terms

I was thinking the same thing, it must be nominal. :)

pappy

May 7th, 2008, 06:02 AM

New Life in Nigeria Yields Results for White Zimbabwean Farmers

In Nigeria, a small group of white Zimbabwean farmers have set up new commercial farming operations. The farmers lost their Zimbabwean land in President Robert Mugabe's controversial land resettlement program in the early 2000s. But leaders in Nigeria have since welcomed the white Zimbabweans, assisting their move to Nigeria in the hope that they can kick-start the country's stagnated agricultural sector. Sarah Simpson visited the Zimbabweans on their farms in Shonga, in Nigeria's central Kwara State.

In the blistering afternoon heat, under the shade of newly built cowsheds, Zimbabwean farmer Irvine Reid remembers how a Nigerian governor named Bukola Saraki sowed the seeds of his new life in West Africa.

"In the beginning, the governor of this state, that is Governor Saraki, he got hold of us and asked us to explore the possibilities in agriculture," he said.

The white farmers were still smarting from often violent land evictions carried out with the full backing of the Zimbabwean government. Trust was an issue.

"The farms were invaded - as everybody was. We were given 24 hours to leave. And we did not have much warning - that is what we had to do. We had to leave the farm," said Reid.

But Governor Saraki paid for the farmers to come on a look-see tour of Kwara State in a bid to woo them across the continent and promised land on 25-year leases with bank loans underwritten by the government.

Their plane landed in Nigeria's largest city, Lagos. The sprawling slum-chocked urban jungle did not impress the farmers, but the farm land on offer some 250 miles inland, did. Shonga had instant appeal.

Simpson: "How long did it take you to make up your mind?"

Reid: "Once we got here? About an hour."

Simpson: "Really?"

Reid: "Yeah, once we got through Lagos. Lagos was not attractive at all. But once we got out here onto the farms we saw the potential. The Niger River is just behind me, I can see it in the distance there. That is an endless source of water and that is why the farms are positioned here. That is why we came to this site."

Nigeria is the largest oil producer in Africa. But that vast wealth has done little to improve the lives of millions of Nigerians who toil as subsistence and small scale farmers. Improving agriculture is key to broad economic development in rural states like Kwara, says Governor Saraki.

"We have always said that to get the Nigerian economy going it has to be driven through agriculture - that has to be the focus," said Saraki.

Governor Saraki says the Zimbabwean farmers have essential skills that Nigeria's 140-million strong population can learn from. The benefits are already visible in Kwara, he says, and this will guarantee the projects continuation beyond the end of his tenure in three years time.

"I think the project has sold itself, it now has ownership - ownership within the country, ownership within the community and within the state. And I think that is what matters. When we started off there were a lot of people who did not believe in it. But by now there are 3,000 people employed in Shonga - they are the ones that are going to defend it," said Saraki.

Local farmers are happy to have 'the whites' around, they say. Young men can now earn a daily wage laboring for the Zimbabweans and still have enough time left over to tend their own farms. Many can now afford Chinese imported motorbikes and mobile phones, like Musa Mogadi.

"Everything is much better since the white man came to this area. Mr. Reid really tries to help the people that work for him. And since the white man came here everything is developed so we thank God for him," said Mogadi.

Though happy to be so welcome in Nigeria, where English colonialists never tried to own land and race relations have never been politicized, the white farmers closely follow events in Zimbabwe.

Opposition leaders accused 84-year-old President Mugabe, who has ruled Zimbabwe since independence in 1980, of attempting to fix the results of recent elections. And there is now going to be a runoff election in the presidential race.

Whatever the final result is, farmers like Irvine Reid say they are in Nigeria for the long-haul.

"There is huge potential. There are many, many mouths to feed here. There is great potential and farming is a new venture for most people in the country," continued Reid. "And we are very excited to be part of it."

But while business keeps them in Nigeria, most like Paul Retzlaff say that Zimbabwe will always be home.

"Some people come from Europe, or Britain or whatever. That is where home is. But for me home is Zimbabwe," said Retzlaff. "But this is where I am settled."

Zimbabwe's opposition leader, Morgan Tsvangirai recently visited Nigeria to ask for help in resolving the disputed elections. But so far, Nigeria has declined to intervene.

Michaelda

May 7th, 2008, 01:28 PM

New Life in Nigeria Yields Results for White Zimbabwean Farmers

horrible. wasnt the goal to yeild a good life for nigerians. was it just to help the white zims

zexyworm

May 7th, 2008, 02:46 PM

Michaelda,

Wasn't the point of the white farmers to settle in Nigeria the transfer of know-how, technology, and to kickstart commercial agriculture in Nigeria. If this is the case, why then must we wail and lament their success? Isn't their success also the success of Nigerian farming?

Besides, are you shocked or surprised that the white farmers also have their own interests to look after? Have you noticed how most "white" foreign investors are regarded with a great deal of skepticism and suspicion? This is ironic, given Nigeria's official posture of wanting to attract foreign direct investment!

Sometimes the attitude of some Nigerians baffles me. This is not the way, especially if tourism is to even stand a chance! The first step is friendliness to foreigners. Unless, of course, we continue to live in the post-slavery "go back home white man" era, which if I remind you, is LONG OVER!

Tbite

May 7th, 2008, 03:30 PM

FG to Move Gas Turbines With N2bn

THERE are indications that the Ministry of Energy (Power) has decided to approve N2 billion for the construction of a ramp and modification of the Imo River bridge to facilitate the movement of gas turbines from the Onne Port in Rivers State to Alaoji in Abia State.

The Power Ministry currently grapples with lethargy in the execution of its role as power generation, supply and distribution hit an all-time low at the weekend, registering 860MW on the national grid.

The move to provide N2 billion followed a meeting, two weeks ago, between officials of the Ministry of Power, Power Holding Company of Nigeria (PHCN), PPE, Federal Government's consultant on the Alaoji 1074 Megawatts (Mw) Combined Cycle power project, and the contractors handling the project, Rockson Engineering Limited.

A top government official told newsmen in Houston,Texas at the on-going Offshore Technology Conference (OTC) in the United States (USA) that Hajia Fatima Ibrahim, the Minister of State for Energy in charge of power would soon submit a memo to President Umaru Yar'Adua seeking the release of about N2bn to fast-track the completion of the Alaoji power project under the National Integrated Power Project (NIPP) of the Federal Government.

Sources said the meeting ended on a good note with all the parties to the project agreeing on the N2 billion offered by the Federal Government to the contractors to enable them move the power turbines at the Onne ports in Rivers State to the site of the project in Alaoji in Abia State by constructing a ramp over Imo River for smooth movement of the turbines to site for installation.

According to sources, the present state of power generation, supply and distribution in Nigeria has become worrisome to government and the thinking is that contractors who have performed well under the NIPP project be encouraged to complete the job with a viw to improving power generation in the country.

The N2 billion that was said o have been agreed upon at the meeting based on the recommendation of the Federal Government's consultant against an earlier submission of N2.5 billion by the contractor, needed for the construction of a ramp across the Imo River bridge, expansion of some portions of the roads for the crossing exercise and payment of compensation to owners of houses earmarked for demolition.

Sources said government agreed to make available N1.6 billion for the construction, expansion and payment of compensation while setting aside the balance of N400 million to cover cost over-run.

The N400 million exigency allowance is to be kept in a special account until the need arises.

It was gathered that in line with the agreement reached at the meeting, the memo to the President for this purpose is expected to be at the Presidency before the end of this month.

The Ministry is understood to had invited the contractor to attend a presentation by another engineering firm which claimed that it could get the turbines across the Imo River bridge at little or no cost.

As part of its probe of the Power Sector, the House of Representatives Committee embarked on a tour of ongoing power projects to verify the level of work and during a visit to the Onne Port in Rivers State, it was discovered that some gas turbines and power equipment were stuck there.

Briefing the House Committee, representatives of Rockson Engineering Company said work at the Alaoji 1074 Megawatts combined cycle power station had been stalled by its inability to get government to approve variation in the work order to enable them carry out modifications on the Imo River bridge.

Last week, the nation experienced three system failures arising from low power generation at all the thermal power stations owing to shut-in gas supplies and the hydro stations.

sammyjay77

May 7th, 2008, 06:00 PM

Digital Mobile Tv flags off in Nigeria

JAPAN'S 90 million mobile phone users as at March 31, 2006 were visibly excited as mobile phone operators flagged off digital television services on mobile phones.

But the services were exclusive to mobile phones that were compatible for the first time.

The service was not the first in the world but had the potential to be the biggest and it did.

At a time, finding new phones in Japanese shops proved Herculean as only limited quantities were produced at that time.

The over 90 million mobile phone subscribers were already used to playing video games, send emails and visit websites on tiny handsets.

Japanese services carried out test transmissions for several months before their debut for free to assess their potentials.

Broadcasters Nippon Tv, Fuji Tv and Tv Asahi were among the companies which signed partnership with mobile operators.

Mobile phone services in Japan, China and elsewhere already had very robust networks long before the introduction of mobile Tv.

Now, Nigeria joins the fray with MTN introducing its own version of mobile Tv. It recently signed a working agreement with pay Tv distributor, Multichoice Limited.

Nigerian networks are not robust yet with dropped calls, failed and or incomplete calls and poor network coverage, yet, MTN says it was going ahead with mobile Tv programme

MTN in conjunction with Multichoice launched its own version of mobile television in Nigeria in Lagos. Witnessed by Senator Ayo Eze and Dino Melaye, both of the National Assembly among other distinguished guests signaled a transition by Nigeria from conventional television traditionally limited by place to television on the move. Mobile television has the distinction of enabling people watch television from the privacy and comfort of their mobile phones, wherever they may be. As it is in Japan, China and parts of Europe and America, so it is likely to be in Nigeria.

Though its launch comes seven years after the launch of GSM in Nigeria, mobile TV cannot be said to be a late starter. Indeed, it may be argued that were it not for the problems of congestion which the networks have to regularly contend with and their attendant focus on such problems, perhaps mobile TV may have debuted way before now. With its launch last week, MTN joins the over 120 mobile operators across the world who have launched mobile TV on a commercial basis.

All over the world, the emergence of mobile TV has been hailed as a major development in the continuing evolution of television, an evolution, which many agree has been very slow, especially when compared with that of the mobile phone. For instance since its invention more than 50 years ago, one can reel off the tips of the fingers, the major changes that have taken place in television. There is for instance the invention of the colour television, which meant that viewers could now watch television in true living colour as opposed to black and white; the invention of the remote control, which meant you could control the TV channels from the comfort of your chair or favourite couch; and of course the invention of video cassette recorder, VCR, which meant that even if you missed a television programme, you could arrange to have it recorded and view it in the future.

And of course, there has been the transition from analogue to digital television broadcasting together with its implications of ability to reach mass audiences simultaneously and yet more conveniently and cheaply. These, it would appear, have been the major advances in television, prior to the emergence of mobile television, which is increasingly popular across the world.

The mobile phone on other hand has evolved very rapidly from a massive contraption only capable of making voice calls to a simple yet sophisticated device that can act as a camera, personal computer, video camera, GPS tracking device, radio and telephone all at once. And thanks to the continuing convergence of technology, the mobile phone has since rendered itself amenable to television broadcasting.

Like MTN's Bola Akingbade stated during last week's mobile TV launch, now people will no longer be hampered by time and place in order to enjoy quality television. In other words, you no longer need to be home to watch and enjoy your favourite soap opera or favourite team's football matches. From the relative comfort of your mobile phone, even while in the airport waiting to catch a flight or in a hospital waiting to keep an appointment with a doctor, you may still be able to enjoy your favourite programme in a totally personalised manner.

It is indeed incredible the kind of possibilities which technological convergence is facilitating across the world, with mobile TV, being just one among so many. Incidentally, mobile TV appears to have also experienced some of the initial hiccups that the mobile phone experienced in its initial years. Technology historians would probably recall that in the early days, there were many who questioned the rationale of carrying a phone on the move.

"Why would I want to carry a telephone with me?" was the retort of a good number of people, who were very comfortable with the status quo, namely a phone belonged to the desk in the office or the home. But the early visionaries were undeterred and today, many years later, the mobile phone has long overtaken the landline in pervasiveness. In Nigeria as in other parts of Africa, mobile phones have helped to connect millions of people who may otherwise have remained unconnected for ages were they restricted to landlines alone.

With mobile TV, many also questioned the rationale of mobility. "Why would I want to carry a television with me?" But an even bigger concern was the size of the screen of the mobile phone. Many people were convinced that the relatively small size of the mobile phone screen would significantly impair the viewing experience, especially given that television viewers have over the years traditionally viewed TV broadcasts from large screens, including of course, today's Liquid Crystal Display (LCD) screens. How would they feel, being constrained to watch movies from tiny hand-held devices for instance?

Experience from other countries where telecom operators have successfully launched mobile TV, however so far suggests that screen size has hardly been an issue at all in the growing popularity of mobile television. Indeed, it would appear that as handheld devices have undergone increasing miniaturisation and sophistication, so have consumers gotten acquainted with and in fact, welcomed the diminishing size together with its sundry implications including portability.

It must be added, however, that mobile device manufacturers have also been proactive enough to quickly speed up improvements in mobile device architecture such that today, you may watch CNN via a mobile phone and hardly feel the difference between watching it via a small handheld and a large screen at home. Mobile device manufacturers have speedily worked to eliminate the initial constraints that made watching television on the mobile phone, not very exciting in the initial years.

It is a testimony to the growing popularity of mobile TV across the world that its viewership is growing across the world. Much of this popularity stems from the personalisation of television, which mobile TV makes possible. You are no longer bound to watch the programmes, which everyone else is watching at home. If while you are waiting at the reception to keep an appointment and everyone else is happily watching CNN, you could choose to watch good old sports instead from the privacy of your mobile phone. And of course, if everyone else is watching sports, you could also choose to watch CNN instead. The most important thing is choice that follows personalisation.

Many analysts are of the view that mobile TV will signal a strong growth incentive for the Nigerian television industry, especially as a fall-out of the increasing interest which it will stimulate among millions of Nigerians for television.

Such interest and consequent popularity will be in tune with the trend across the world and will reflect in the growing revenues, which mobile TV is generating for the broadcast and telecom industries. Pyramid Research for instance forecasts global revenues of over $13 billion from mobile TV by 2010.

In the current arrangement that has been unveiled by MTN and Multichoice, viewers will be able to watch a bouquet of 10 channels on the MTN network. These channels include SuperSports 3 (sports), Africa Magic (Nollywood and other African movies), CNN (news), Cartoon Network (kids), Channel O (music) among others. The spread is fairly wide and can be said to be encouraging enough to entice consumers and generate widespread interest in mobile television. The monthly subscription of N1,500, which is roughly equivalent to the cost of a recharge card is also fair. With just N1,500 therefore, MTN subscribers would be guaranteed a month-long television viewing experience on the popular DSTV channels from the personalised comfort and convenience of their mobile phones.

Mobile TV can work in two main technology approaches. On one hand, it can work with the existing two-way cellular network, such that it becomes available on appropriate 3G mobile devices. On the other hand, it could also work with dedicated networks, which are built specially for mobile TV and which work with one-way dedicated technologies as Digital Video Broadcast Handheld, DVBH, MediaFLO, among others. The beauty of the technology approach in which mobile TV works with existing cellular technologies is that subscribers do not need to procure special handsets and may simply log on to mobile TV provided they have appropriate 3G compatible handsets. Another advantage is that in using existing cellular networks and especially if such networks are 3G networks, apart from broadcasting, mobile TV is also able to unicast, that is an individual can actually interact with television broadcast including uploading content on it. This interactivity has also shown to be one of key anchors around which the increasing popularity of mobile TV across the world is pegged.

MTN and Multichoice have for the meantime apparently opted for the option of building dedicated networks in facilitating mobile TV. In so doing, they are employing DVBH technology and consequently, intending subscribers to the mobile TV service, would need to procure special handsets in order to benefit from the Mobile TV experience. Obviously, given the challenges which MTN and other mobile operators are facing regarding congestion and network capacity on their existing networks, it would have been rather inadvisable to allow mobile TV content run on the same channels that have become something of a premium on account of surging voice volumes.

DSTV mobile from MTN as the new service is called is an innovative and welcome addition to the value added services space of Nigeria's increasingly vibrant mobile industry. It provides a formidable outlet for millions of telephone users anxious to catch up with information, education and communication that come from the broadcast medium of television and from the personalised comfort of their mobile phones. It affords Nigerians an opportunity to benefit from a technology already being experienced and enjoyed elsewhere in the world. And very importantly, it affords our nascent movie industry, Nollywood a chance to be even more pervasive with the attendant benefit of more popularity and prospective growth.

Both organisations deserve commendation for their efforts to bring mobile TV to Nigerians. It is however expected that MTN will strive harder to build increasing capacity on its network such that Nigerians with regular 3G-enabled handsets can proceed to enjoy the mobile TV experience on their regular handsets and not need to procure special handsets to do so. Building additional capacity on its network would also help ensure that MTN is able to provide mobile TV not only in its personalised form as it is currently doing, but also in an interactive form in which television viewers would be able to interact with their television sets and even upload content by themselves.

sammyjay77

May 7th, 2008, 06:04 PM

FG refuses Delta Airlines right to fly New York-Lagos route

United States’ second largest airline, Delta Airlines, has called off its proposed direct flight between New York and Lagos.

Business Day gathered that the decision followed the refusal by the Federal Government to grant the airline the commercial right to fly directly from a second city in the United States to Lagos.
It already operates daily flights between Lagos and Atlanta.
Business Day gathered last night that the ministry of transportation did not give any reasons for the decision which some analysts described as another “shakedown.”
But a source in the ministry told Business Day in Abuja that government’s refusal was as a result of “the domineering attitude of Delta Airlines”.
“You know none of our airlines has started operating into the US, despite being designated by the United States government. The US is even asking our airlines to lease aircraft from their own airlines or other airlines that have met their standard.”
The source who pleaded anonymity informed Business Day that government may be tactically protecting interests of the Nigerian designated carriers to the US.
It would be recalled that Delta Air began direct daily flights from Lagos to Atlanta on December 4, 2007 with a promise to look into operating the New York route from June 2008.
Though Nigeria has an open skies agreement with the United States, any change in the commercial agreement between both countries must be renegotiated and agreed upon by the two countries before any of their airlines can increase frequencies on the agreed routes, an aviation expert said yesterday.
Virgin Nigeria, Arik Air and Bellview were designated by the Federal Government to fly into different states in the US but they have to wait for the conclusion of the technical audit being carried out on the Nigerian airlines and the Nigerian Civil Aviation Authority (NCAA) by the US Federal Aviation Administration (FAA).
Though the Department of Transportation of the US has granted the airlines provisional right to fly into American airports, it was with a clause that directed that the airlines make use of aircraft from airlines from a country that has FAA category 1 status.
The local airlines have all attained the category one status except the nation’s regulatory authority, which is still being audited by FAA.
The technical audit would enable the authority to prove that it has the capacity to carry out oversight functions on airlines, airports and aviation personnel in accordance with international standards.
If the NCAA attains the category one status, Nigerian registered airlines and licensed aviation personnel would be accepted as meeting international standards and would be allowed to fly into Europe and the US.
Meanwhile, Emirates Airlines is now the highest selling airline in Nigeria, displacing British Airways that is currently suffering from the mishandling allegations.
From statistics available to Business Day, Emirates which operates a Boeing 777 extended range aircraft with daily frequencies has a load factor of above 90 percent consistently across all cabins.
Its profit has surged by 62 percent, making $1.37 billion for 2007/2008 despite the high cost of fuel.
The airline’s gross revenue increased 32 percent to $10 billion during the period when it carried 21.2 million passengers, an increase of 3.7 million over the previous year.
However, in spite of the bad press elicited by BA’s mishandling of a deportee on a London-Lagos flight, the airline is said to be enjoying very strong loads ex-Lagos. But BA’s Nigerian flights are still landing in terminal four rather than its new and exclusive, a fact that is being criticised as discriminatory.

sammyjay77

May 7th, 2008, 06:07 PM

Zenith Bank earns N120bn in 9 months

Zenith Bank plc has announced gross earnings of N120 billion for the nine months ended March 31, 2008, indicating a 70 percent increase over the N70 billion recorded for the same period in the last financial year.
The bank’s operating results released on the floor of the Nigerian Stock Exchange (NSE) on Tuesday also showed that profit before taxation rose by 111 per cent from N19.25 billion recorded for the same period the previous year to N40.63 billion.
Similarly, profit after tax rose by 137 per cent, up from N14.08 billion in 2007 financial year to N33.32 billion recorded in the current period.
Zenith Bank has also excited the financial market with the launch of three mutual funds to raise N8 billion from the capital market through an Initial Public Offering.
On offer for subscription are 500,000,000 units of the Zenith Equity Fund, 200,000,000 units of the Zenith Income Fund and 100,000,000 units of the Zenith Ethical Fund at N10 per unit. The funds are to be managed by Zenith Capital, the investment banking arm of Zenith Bank plc.
The funds have distinct features aimed at investors with varying risk preferences and investment considerations and are open ended, meaning there is no limit to the amount that can be invested either during or after the offer.
The Zenith Funds like all other open-ended funds, are very liquid as investors have direct recourse to the Fund Manager in order to realize the prevailing value of their investments.
The funds, which will enjoy economies of scale, will be diversified across several sectors and securities therefore ensuring reduced volatility in each portfolio.
All three funds serve as useful investing tools that can be used to create a regular savings plan.

sammyjay77

May 7th, 2008, 06:08 PM

The Germans are coming

It won't be long before the Germans get involved in the Nigerian epileptic power sector.

It won't be long before the Germans get involved in the Nigerian epileptic power sector.
When President Umaru Musa Yar'Adua was in Germany last Fall (not the visit for medical attention), part of his agenda was to get them interested in the Nigerian power market. The credentials of the Germans on power generation is intimidating. Yar'Adua must have been left with no choice.
In 2006 the gross electric power generation in Germany totaled 596 million megawatts. This is more than one hundred times what we currently generate in Nigeria. A major proportion of the electricity supply, 27 percent is based on nuclear energy, lignite 23 percent and hard coal 21 percent.
Natural gas has a share of 12 percent of generating power. Renewables account for 12 percent and all others account for five percent.
The men from the land of the Rhine River are so enthusiastic that some 25 of their companies, including Julius Berger, Siemens and Eon may be hitting our shores soon to pick up the gauntlet.
Eon is one of the largest power companies in Europe with capacity for solar, wind, and biomass energy. We only need a quick look at the German power situation to get a peek at what's coming to Nigeria. The Germans practise an integrated system as we have noted and it's simply awe inspiring, at least to a Nigerian who is not in the diaspora like me.
Once on a trip by road from Berlin to Hamburg, from our commuter bus, we noticed, on a vast expanse of land, countless numbers of windmills slowly spinning away. These windmills power the small towns along the stretch of the road that cover some four and half hour of travel running on one hundred kilometers an hour. It's like traveling from Lagos to Okene in Kogi State.
Imagine all that distance powered by the windmill, not having to depend on NEPA (sorry PHCN). The maintenance cost is so low because little or nothing is spent on fuel to power them. Yet they are so efficient. They account for some twenty two thousand megawatts of electricity in Germany. It accounts for about six percent of the country's power need and no country beats the land renowned for the Mercedes brand on this one. Another case was when we took a trip to the concentration camp, Sachsenhausen in Oraniaeburg, just outside Berlin. On the way, I couldn't help noticing that the roofs of the houses we passed as the train sped were unusual; they were thick and shinny. It hit me that these are not ordinary roofing sheets. They are solar panels!
The Germans used one stone, here, to kill two birds; the covering for the roofs not only performing the traditional role of protecting from the elements, it also taps energy from one of the elements-sunlight. Thus, these cute houses in the country side have cheap, clean and reliable electricity.
The Berlin Hauptbahnhof train station on the way to the Zoological Garden, also in Berlin, is a beauty to behold. The shelter is massive and made of glass with an opportunity to catch glimpses of the sky. At least that was what I thought. It was only from researching this piece that I discovered that the shelter is more than just a shelter, it is also one huge solar panel for generating electricity for the city. According to an internet source, 'the solar cell system generates an average of 160,000 kilowatt hours every year, which accounts for almost two percent of the power consumption of Berlin. I should have guessed but it just didn't hit me even when I noticed a mass of electricity gadgetry just after the train station, close to the Bellevue station (hope I got that right).
If the Germans can extract electricity from that device under cold conditions of six degrees centigrade, can we imagine what can be done under the Nigerian situation?
Don't we have abundant, if not limitless sunshine in Nigeria? The sun directly over Nigeria can power the continent. Matter of fact it's so hot these days, I feel stupid going about in suits and ties. Gas power also plays a major role in power generation in that country where they delight in a delicacy called Dona kebab.
This was demonstrated by a company called Vattenfall at Mitte, a power plant just by the River spree, where I had the displeasure of feeding some Ducks. Mitte is a co-generation plant. That is it generates electricity, heating and air conditioning for homes.
It is this integrated approach to power that the Germans would bring to Nigeria; chances are (barring the so called Nigerian factor) it would be a huge success. But why are the Germans suddenly interested in investing in Nigeria? Historically, they have turned the other way. Perhaps it is because they had too much respect for the dated agreements that led to the partitioning of Africa. They may have been under the impression that the British may cry foul if they seek to reap from a one-time British colony and traditional British trading partner.
The Germans may have suddenly woken up from a deep slumber. While they sleep on the need to invest in Africa, the British, Americans and indeed the Chinese have built 'empires' out of African business.
They fail to realize that also in Africa, the maxim of globalization holds and as Thomas L. Friedman would put it: 'The World is Flat.'
Now the Germans must move fast. If not to catch up, to at least reap from the vast opportunities that beckons in Africa. Nigeria is a great entry point for having a vast market.
That market is more than ripe for electricity. The people who wield at least one electricity generating set per household would be only too glad to pay a premium for stable power.
The kind of rate of return promised by the power business is expected even to top that from telecoms. How can the Germans sit on the fence?
That is why the Germans are coming. They are going to cooperate with Nigeria on power generation, distribution, transmission, supply and training. Except Norway, they have never cooperated with any other country on this scale. This promises to be so massive; it's a march on the Nigerian power problem.

sammyjay77

May 7th, 2008, 06:11 PM

Will Lagos be transformed again?

Early in 2007, many registered voters in Lagos were in some dilemma over whom to vote for.

To the credit of Lagos democracy and politics, we had quite a good field to choose from-the Action Congress with the incumbency advantages arising from its facilitation by then outgoing Governor Bola Tinubu was the front runner and had nominated Babatunde Raji Fashola, previously Chief of Staff to the Governor as its candidate. However, Fashola was not, it appeared going to coast home unchallenged. The AC had in the run up to the elections splintered in some way, and many erstwhile cabinet members in Tinubu’s government and senior party men were running against his designated successor. Even Tinubu’s deputy-governor was running against his nominee on the platform of another party.
I had personal knowledge, and indeed a personal relationship with several of the candidates on offer, but after listening to Fashola, I sensed that he had a thorough understanding of the issues confronting Lagos, and was determined to put in his utmost towards the transformation of Lagos. This column subsequently published an endorsement titled “A Morning with Fashola”. I remember that several people vigorously and angrily contested that endorsement, and someone asked me why I did not think it was better in the circumstances to stand aside and watch events unfold rather than take a position that could turn out to be ill-advised. Given my background, experience and relationships, several people actually expected an endorsement of other candidates, rather than Fashola, whom I was accused of so tactlessly endorsing. My response then was that, it has never been our style not to take a position regarding fundamental matters, and that was the line this column was also going to take.
But my most memorable personal encounter in that matter was with a lady, a long term friend, who had before my endorsement made up her mind as to whom she was voting for. Like most urban middle class voters, she was going to vote for another candidate of course, different from Fashola. Unfortunately this individual was accustomed to respecting my views on public affairs and my endorsement put her in some confusion. For the first time, she was inclined to disagree with me, and toe an independent line, but in the end, she made me promise to publish an open apology to her and other Lagos voters, if after one year, Fashola ended up disappointing Lagosians. I made the pledge as requested, silently hoping that I had not gotten myself into some serious trouble, as it is now a matter of honour-if Fashola turned out bad, I would have had to publish that public apology.
Thankfully after one year, I sincerely believe that the Fashola administration in Lagos might yet turn out to be one which would transform Lagos into the Lagos of our dreams. I attended the recently concluded 4th Lagos Economic Summit and like most participants, I was suitably impressed with the work (and most importantly the thinking) going on in the current Lagos administration. First of all, the attendance at the Summit demonstrated that the business and international community and indeed other stakeholders take the Lagos State Government seriously. Many bank CEOs, senior representatives of the federal government, leaders of industry and commerce, and the organised private sector were very strongly represented. The attendance from the international community-embassies, international organisations particularly the World Bank and other multilaterals and other foreign businessmen and speakers was pleasantly surprising. Frankly the attendance at the summit was not incomparable to that at the typical Nigerian Economic Summits that have held in Abuja for many years.
In terms of the content, the summit was also quite remarkable. I attended a particular session on transportation and listened to presentations by many speakers notably Dayo Mobereola of Lagos Metropolitan Transport Authority (LAMATA), and was quite impressed with the ideas he expressed for dealing with the challenges of creating a multi-modal transport system in Lagos. The session addressed by a respected former Mayor of Bogota was also quite profound. I also caught part of the discussions on Finance and Housing as well, and it is clear that at the very least there is strong commitment in the administration to launching Lagos into a truly modern mega-city status. The fact that the summit was attended by the leadership of the state civil service hopefully will ensure that the bureaucracy understands the requirements of the envisaged Lagos. Many participants, not least your columnist was happy to see that some planning is going on towards transforming Lagos.
But I did not have to wait for the Summit to know that Governor Fashola and his administration is a serious-minded one. The state cabinet contains several quality people with useful private sector experience such as Jide Sanwoolu, Rotimi Oyekan, Supo Shasore, Ben Akabueze and others whose presence in government suggests an inclination to blend the politicians with some experienced technocrats and infuse governance in Lagos with some professionalism. To the credit of Bola Tinubu, he had shown the way in this regard with a very qualitative cabinet that had the likes of Yemi Cardoso, Wale Edun, Professor Yemi Osinbajo, Leke Pitan and such personalities. The governor himself is a very focused and visionary person and he has the values and the orientation required for true leadership.
Most importantly, in terms of activity, Fashola’s government has been incredibly hyper-active-awarding multiple road contracts all over the state, beautifying and greening Lagos, developing a new Atlantic City, rebuilding educational and health infrastructure and investing in training teachers and civil servants. But there is yet a lot more to do. The challenge of infrastructure, education, health, insecurity, power supply and even the environment in Lagos is immense.
In the process of financing all its initiatives, the government risks alienating the voters through over-taxation, and the AC is isolated within the political space, putting pressure politically on the government. Nevertheless, Fashola must follow through on all the initiatives and ideas canvassed at the Summit and implement all the items on its very loaded agenda. On the opening day of the summit, I listened to a very articulate vote of thanks by my namesake, Opeyemi Bamidele who asserted that perhaps Tinubu’s greatest legacy to Lagosians would turn out to be his nomination of Fashola as his successor. That is a compliment I completely share.

pappy

May 7th, 2008, 08:49 PM

horrible. wasnt the goal to yeild a good life for nigerians. was it just to help the white zims

It's a welcome development, if you feel strongly against it then go to Nigeria and start your own farming venture.

channel

May 7th, 2008, 08:54 PM

Very good observation. Critics of the current administration (I'm one of them) observe that Nigeria has recorded progress in three areas only: 1)Telecom sector, .

down loading porn and wanking :lol::nuts::ohno:

pappy

May 7th, 2008, 11:35 PM

Daar stirs more competition in the DSTV sector

Frontline private broadcaster, Daar Communications is set to stir exciting competition in the Digital Satellite TV, DSTV, sector before the end of month, May 25, 2008, to be specific.

DSTV, previously appropriated by former monopoly, Multichoice, as trade name is the technology of beaming digital TV signals through the satellite in orbit and received directly in homes in a direct-to-home, DTH, process.

However, it will be a test-run for the first month, according to Daar chairman, Dr. Raymond Dokpesi. But the company is doing this in an amazing way, planning to put a staggering forty channels on the Daar platform for a start.

This is phenomenal especially when weighed against the background that most of the operators across the world that have to do the business would always start with one or more channels, but always not more than five because of the cost and the technicalities involved.

He wants to put out a whopping 50, 000 decoders in record time. The operation requires a lot of money, a lot of technology and manpower deployment, and a ring of local and international relationships. But speaking to Vanguard exclusively in his office midnight Sunday, Dokpesi explained that his organization was ready in nearly all the areas as it is doing local and international recruiting of staff that will handle the various departments.

“The manpower is ready. We have been able draw manpower from the various parts of the world, and the Federal Ministry of Internal Affairs has been gracious enough to grant us good expatriate quote which we have almost exhausted,” Dokpesi told.

Interestingly, content is the blood that runs in the vessel of the DSTV technology, which explains why operators around the world want premium contents that are referred to as business drivers.

The broadcaster who in the last one month has gone round two major trade shows, MIPTV in Cannes shopping for premium contents, and NAB at Vegas putting finishing touches to technology, told us that he has a fair dose of technology that will fascinate the Nigerian viewers.

Working basically with nine sub genres, DaarSat, the tentative trade name, has what is now called the foundation channels in DTH which include BBC, Al Jazeera, Fox News, National Geographic, MTV, Discovery and a host of others. DaarSat has lots of children programmes.

“At one point we literally bought up the entire library of four companies who specialise only in children programming,” he said. “The game is about to start,” he said, “and we will see how the sector plays out in the next few days.”

“We are having 40 channels for a start and we are going to be broadcasting in high definition, HD, and standard definition, SD, format. The equipment are on ground and currently being integrated by a number of engineers from the US, Israel and Poland.

Being about the only global broadcaster from Nigeria, Dokpesi is not very strange to the terrain he is plunging into. This explains why his major strength will derive from his local operations and international programming handled by his staff.

Already, MovieStar, programmed for him by Mr. Don Pedro Obaseki is said to be creating waves in the UK. The news channels are being currently structured to hit that standard where it will be globally acceptable.

For a start DaarSat will uplink from Lagos, Accra, Nairobi, Johannesburg, London and New York.

This brought Dokpesi to the vision of the DaarSat platform, to project the African story positively across the world. However this will come in a diverse bouquet of rich news, entertainment, documentaries, business news and lots of sports.

For instance, from within AIT will come AIT News, AIT Moviestar, AIT Sports 1, 2, 3, and African Business Channel. A lot of emphasis will also be placed on international sports – Football, Tennis and Athletics, among others. The Daar chairman informed that lots of agreements are being signed and purchases made.

“By the time we roll out the public will see very clearly that a lot of work has been done not only in content but also in terms of quality. But I must also add that our competitors have been trying to make life very expensive for us but even with that we are going to give the package at an affordable price,” Dokpesi promised.

He was quick to point out however, that current development efforts are taking place even while final details are still being sorted in the Daar Communications Offer which recently closed at the Nigerian Stock Exchange.

pappy

May 7th, 2008, 11:49 PM

Nigeria: Aisl Plans $40m High School Project

American International School Lagos (AISL) has concluded plans to build a new secondary school campus, worth $40 million.

According to the school's Superintendent, Mr. Thomas Shearer, the Board of Directors passed a resolution to build a new campus in 2006, as a result of the growth in student enrollment and limited facilities to cater for their developmental needs.

He said the new campus would be situated on 40 acres in the exclusive Twin Lakes master development, which will include commercial, retail and residential property.

He added that the project was an opportunity for the school to expand its strategic plans as well as contribute to the state's mission to upgrade the standard of education and transform Lagos into a "Mega City".

The project, he said, will be a world class high school, with educational facilities that will offer students and members of the community a place to learn, experience cultural events and participate in sporting activities.

The project, according to him, is expected to start this month and run through June of next year and would be handled by Jagal Nigeria Limited.

Shearer said the school was authorized by the International Baccalaureate Organisation to offer the globally recognised International Baccalaureate (IB) Diploma Programme in 2007. The programme, according to AISL Secondary Principal and former principal of an IB World School , Ms. Sharon Schauss, "is recognised internationally as a rigorous college and university preparatory programmes. International Baccalaureate students are well prepared to attend any college or university in the world."

The school will hold its ground breaking and $18 million fund raising ceremony at the new site on May 14.

The event, Shearer said will attract eminent personalities such as the US Ambassador to Nigeria , Robin Sanders, the Governor of Lagos State and hispredecessor, Babatunde Fashola and Bola Tinubu respectively, among others.

The event will also serve as an opportunity for individuals and corporate organisations to form a partnership with the school, through branding and building naming rights sponsorship opportunities.

Michaelda

May 8th, 2008, 03:35 AM

It's a welcome development, if you feel strongly against it then go to Nigeria and start your own farming venture.

how do you know i dont have several, or that my family has not been involve din it for generations. and frankly, its an ad hominem attack. whether or not i have a farm has nothing to do with the argument. folks like you are meant to be slaves

Michaelda

May 8th, 2008, 03:38 AM

pappy

May 8th, 2008, 04:06 AM

how do you know i dont have several, or that my family has not been involve din it for generations. and frankly, its an ad hominem attack. whether or not i have a farm has nothing to do with the argument. folks like you are meant to be slaves

no need to get your panties in a bunch.

pappy

May 8th, 2008, 07:26 AM

Lagos to Generate Electricity from Wind

Lagos State Government on Wednesday revealed that it was exploring the possibility of using wind energy and small hydro power systems to combat the recurrent problem of erratic power supply in its rural areas.
The Commissioner for Rural Development, Prince Lanre Balogun, who disclosed this while addressing the press at Alausa added that the government was also going to explore solar energy and on –site-power generating system.
He explained that this has become imperative because of the high cost of connecting several rural communities in the state to the national grid.
Balogun also informed that the state government has also provided 44 oil immense transformers of 500KVA each to various communities within the state up till the end 2007.
The ministry also provided watercraft and motorcycles to 10 riverine communities on the other side of River Oshun by Igbonla area to ease their transportation problem, the Commissioner added.
Prince Balogun also informed that the state government has initiated a rural transport scheme called the Lagos Rural Transportation Initiative (LARUTI) which would ensure the manufacture of tricycle that safely convey people and goods from the rural areas to urban centres..
The commissioner also disclosed that the ministry had employed additional 1, 500 Neighbourhood Watchers and equipped them with necessary equipment to enhance its grassroots security service.
He listed the equipment provided to the neighbourhood watchers to include: 73 patrol vehicles for state officers and coordinators and 201 motorcycles to its field officers to gather information from the grassroots. He also stated that 50 artisans were trained by experts from Thailand on the production of exportable arts, crafts and house hold furniture that would entail the use of fibre from water hyacinth, banana peels, sisal, coconut leaves, bamboo, cane, willow and raffia, he said.

sammyjay77

May 8th, 2008, 09:12 PM

Nigeria's foreign reserves dip slightly: central bank

Nigeria's foreign currency reserves dropped to 59.3 billion dollars in the first week of April from 59.7 billion dollars in March, the Central Bank of Nigeria said Thursday.

The bank gave no reason for the slight drop in the reserves, which have grown steadily in the last three years thanks to higher crude oil prices on the international market.

Nigeria, Africa's biggest oil producer with a daily output of 2.6 million barrels at peak production level, derives around 95 percent of its foreign earnings from the oil sector.

It currently exports a reduced 2.1 million barrels per day on account of unrest in the southern oil-producing region of the Niger Delta.

Matthias Offodile

May 9th, 2008, 09:13 PM

Nigeria's foreign reserves dip slightly: central bank

The bank gave no reason for the slight drop in the reserves

:bash::bash::bash::bash::bash::bash:

in times where the oil price explodes????:bash::bash::bash:

These devilish crooks can´t keep their bloody hands off the money, the exchange resseves are sacrosant for Nigeria, all they can do is plunder the country at will, this is Nigeria´s money not that of any private person!

sammyjay77

May 9th, 2008, 09:23 PM

Eko Atlantic:Periscoping Africa's next property generation

Recently, Lagos State government commissioned the redevelopment of the $3 billion Eko Atlantic city project, signaling the beginning of a journey into the next generation of property development not only in Nigeria, but also in Africa.
Eko Atlantic city, targeted to be completed by 2015, is an ambitious project that the Lagos State government is determinedto use to boost its economic profile and also as part of the mega city dream wherein the state, by 2015, will be the third largest megacity in the world.
Adjacent to Victoria Island, Eko Atlantic will rise as the next generation of property in Africa. The city will combine both residential and commercial accommodation in a location to be serviced by state-of-the-art, high-tech infrastructure. When completed, Eko Atlantic is expected to be larger than Victoria Island and is targeting 250,000 residents.
Lagos State, though one of the smallest states in Nigeria, land mass wise, has the largest human and industrial concentration in the country. With an expanding population of 15 million people, Lagos is the largest city in Nigeria, the second largest in Africa, and the sixth largest in the world. It is expected that by 2015, the population of the state will be 25 million, thus qualifying it as the third largest megacity in the world.
The state harbours the head offices of the largest international companies that are based in Nigeria. All Nigeria's leading financial, oil and gas, and telecom companies as well as the Nigerian Stock Exchange are located in Lagos.
The land for the Eko Atlantic project, according to the developers, South Energyx Nigeria Limited, will be reclaimed, up to 820 hectares, by dredging from the waters of the Atlantic Ocean in an environmental friendly process.
In a brief chat with Business Day at its beautiful stand at Eko Hotels & Suites, venue of the 4th Lagos Economic Summit on April 23, officials of the Eko Atlantic Development Company said Eko Atlantic was set to be the heart of tomorrow's Lagos.
"Consider it the Dubai of Africa---a lively, 'happening' metropolis, cosmopolitan and culturally diverse, a melting pot for enterprise and exchange. The project will enable Lagos to compete, on every level, with some of the world's top business and tourism capitals", they said.
According to them, with its offering of premium corporate, retail and financial space and its potential as a high-end hospitality resort with a prime seaside location, Eko Atlantic would be a magnet for multinationals and foreign/local investors whose presence would multiply job and partnership opportunities, adding that tenants and businesses would have the security of knowing they reside in one of Africa's newest, most ambitious, and most autonomous urban centres.
Property development watchers say it only resides in the imagination the volume of construction that prime location in Lagos is bound to witness in the coming months and years.
According to them, it is to be expected that for a city that promises to be 'an autonomous urban centre', building patterns and architectural designs that will dot developments there might demystify the property development wonders of Dubai.
"Contemporary lifestyle facilities, from world-class shopping malls and restaurants to hotels and a vibrant nightlife, will conspire to create the good life at Eko Atlantic. The district will have all the benefits of any large thriving city plus the advantage of year-round sunshine and a coastline with endless beaches. A privileged, quality lifestyle is guaranteed", the developers disclosed.
Another high point of the project, according to the developers, is the relief it is going to bring in the burden of both commercial and residential property shortage which has already put Victoria Island in a strait and under pressure.
Victoria Island which was initially a residential area is now Lagos main business and financial centre, and in the last 20 years, the island has rapidly expanded, becoming not only the country's busiest banking and commerce hub, but also the most exclusive areas to live.
Today, the area is saturated in terms of transportation and land available for new development. There is also a huge shortage of hotel and accommodation capacity. This, among other reasons, makes the idea of Eko Atlantic worth the while. Land has to be reclaimed from the Atlantic Ocean to create valuable land to work in and enjoy.

While the Federal Government's Performance at the moment is nothing to write about, I am finding succour in the Performance of Lagos. I just Love Fashola for his foresight.

Matthias Offodile

May 9th, 2008, 09:50 PM

I want to see a youtube video or a website of Eko Atlantic City, the article is still too sketchy for my taste!

pappy

May 9th, 2008, 11:08 PM

:bash::bash::bash::bash::bash::bash:

in times where the oil price explodes????:bash::bash::bash:

These devilish crooks can´t keep their bloody hands off the money, the exchange resseves are sacrosant for Nigeria, all they can do is plunder the country at will, this is Nigeria´s money not that of any private person!

Believe me I feel your pain.

Tbite

May 10th, 2008, 04:54 AM

Well thats a 0.4 Billion dollar drop in the reserves. Considering that Nigeria is practically producing zilch, perhaps the dip can be attributed to an expenditure of some money while there is little production to replenish at that time.

There have been alot of articles on imports and investments in the last week, could well be rice imports etc.

pappy

May 11th, 2008, 08:27 AM

Nigeria: Nigerian Brewery - Lagos, Kaduna to Get New Plants

Two states, Lagos and Kaduna, will be the next beneficiaries of what the Nigerian Breweries Plc has termed 'a strategic plan of action', as the company has disclosed an intention to build two new factories (one in each of the two states) in the country.

Chief executive officer of the company, M.J.Herkemij, hinted that the construction of the new plants in the country was part of the company's strategy to maintain its position in the industry, as well as contribute towards the country's economic growth.

Herkemij, who spoke to newsmen in a media briefing said, "as part of our market outlook for 2008, two new plants will be built in Lagos and Kaduna. We will continue to expand our investments in the Nigerian economy".

According to the CEO, who also disclosed that the briefing was to herald the company's Annual General Meeting (AGM), subject to approval during the meeting would be the company's hope to declare a N2.50K dividend per share.

NB Plc, which came out with its first brand (Star Lager Beer) 61 years ago, now has five breweries located across Nigeria.

One of the breweries, located at Ama in eastern Nigeria, is regarded as one of the ten most sophisticated factories in the world.

The brewery chief also hinted on his company's intention to invest in the nation's agriculture sector.

"We also want to invest heavily in the agriculture sector by encouraging the planting of sorghum, so that farmers can get quality yields and income," the brewer y chief added.

Tbite

May 12th, 2008, 10:02 AM

Nigeria requires N59.16 trillion to resuscitate infrastructure

It will require more than patience to make infrastructural facilities in the country work as Chukwuma Soludo, Central Bank of Nigeria (CBN)’s governor estimated that Nigeria would need to invest $510 billion or N59.16 trillion over the next 15 years.
In a report made available by Renaissance Capital, titled “Nigeria, the Brazil, Russian, India, and China (BRIC) in Africa,” Soludo said the money will be invested in railways, power and energy, construction and other infrastructure in order to emerge as a leading economic player as well as attain its vision 2020 goal.
Nigeria’s Gross Domestic Product (GDP) growth of 6.3 percent in 2007 was better than initially expected, in light of continuing oil production disruptions in the Niger Delta region, but belies the near double-digit growth rates which experts believe are possible.
The bottleneck to growth in Nigeria, as in much of sub-Saharan Africa (SSA), is also the dilapidated state of the majority of the country’s infrastructure. The need for investment in infrastructure is widely accepted and is viewed as one of the greatest obstacles to boosting productive sectors and achieving faster economic development.
In order to help achieve this ambitious target, the Nigerian government has announced that it is committed to spending more than $24 billion over the next eight years on infrastructural developments. In order to meet the shortfall, the Federal Government has announced that it will mostly rely on the form of private-public partnerships (PPP) for most of the sectors. For example, the largest announcement to date is that the Chinese government has concluded financial arrangements for infrastructure-related projects, especially in the oil industry, for an estimated $40- 50 million over the next six years.
Nigeria has been the prime recipient of Foreign Direct Investment (FDI) ($5.8 billion) and portfolio investment ($15.8 billion) in SSA in 2007.
The report estimates that infrastructural investment will be significant over the coming years, which will help fuel the economy, improve margins and ultimately enable market scale.
Since 2000, Nigeria’s GDP growth rate has averaged 5.7 percent, and is estimated by the IMF to expand by 9.1 percent in 2008 (we forecast 9.0 percent GDP growth in 2008).
Over the same period, interest rates have fallen from 14.0 percent in 2000 to 9.5 percent at the end of 2007 and we estimate will average 10.5 percent in 2008. The collapse in the cost of capital, coupled with the recapitalisation and consolidation of the banking sector in Nigeria has enabled credit to the private sector to expand by 96 percent Year-on-year (YoY) in December 2007 to $41 billion versus $21 billion in December 2006. Quarterly growth rates were 19 percent in fourth quarter, 20.6 percent in third quarter, 14.8 percent in second quarter and 11.6 percent in first quarter of 2007.
Nigerian banks have so far raised $8.8 billion worth of equity capital in the past year and we envisage a pipeline of a further $6.5 billion of equity in 2008, bringing the total expected capital raised to in excess of $15.0 billion. While a detailed breakdown of credit allocation has not yet been provided by the CBN, we understand from discussions with banking participants that lending is dominated by high-end blue chips and medium-sized corporates.
This momentum is expected to continue in 2008 with growth of 60-70 percent in 2008. Retail lending is in its infancy (we estimate approximately five percent of total industry loans), and is estimated to grow apace over the coming years, but will remain insignificant as a percentage of total industry loans in the immediate future.
The combination of accelerating economic growth, infrastructure development and the continued expansion of domestic liquidity will ensure continued lending momentum over the coming years.
The majority of banks have significantly strengthened their balance sheets in the past 12 months so funding should not be an issue and capital adequacy requirements (10 percent in Nigeria) are handsomely covered (most Nigerian banks have a capital adequacy ratio (CAR) in excess of 20 percent).
Longer term, we estimate consolidation will create 12-15 leading banks in Nigeria, but we currently do not foresee a second major wave of consolidation before the end of 2008.
Nigeria is SSA’s second-largest overall economy after South Africa. Specifically, given its large population of 154 million, which equates to nearly one in five Sub-Sahara Africans living in Nigeria, the country represents the clearest case of a scaleable newly emerging consumer market in Africa with a rapidly expanding urban middle class.
It has thus become the flagship regional success story in the past five years.
Nigeria’s real economic growth is estimated to accelerate by as much as 9.1 percent in 2008 and we estimate will double to in excess of $300 billion by 2010.
We project a nominal GDP of $217.0 billion versus $166.4 billion in 2007. Conversely disposable income is estimated to expand, with GDP per capita (nominal) rising by 27.2 percent to $1,378 in 2008 from $1,083 in 2007 and in excess of $2,000 by 2012.
The increasing level of disposable income is also complemented by favourable demographics that provide us with greater confidence that the consumer will be a rising power in the retail and consumer market. It is estimated that 44 percent of Nigeria’s estimated 154 million population is under the age of 20.

sammyjay77

May 12th, 2008, 11:12 AM

Lagos, developers in N9.5b Oluwole redevelopment scheme

A FRESH attempt is being made to resurrect an ambitious development effort in the heart of Lagos Island under moves by the authorities in the state to meet with the growing demands of its mega city status.

At the centre of the new effort is the redevelopment of the Oluwole commercial district, a proposal, which will gulp up to N9.5 billion.

The concept is not new as a real estate development group, Messrs. Astra Builders West Africa Limited had planned to transform the Lagos Island commercial area into a shopping/ office precinct of international standard 17 years ago, but court actions between the local inhabitants and the Lagos State Development and Property Corporation (LSDPC), on their relocation halted it.

But under a fresh effort to redevelop the area, the state has entered into a partnership with a team of private sector investors for the renewal of the Oluwole Market, which is being re-branded as the Oluwole Urban Market and Multifunctional City Centre. Martins, Nnamdi Azikiwe and Alli-Balogun Streets within the Central Business District (CBD) bound the Oluwole site measuring about 20,000 square metres.

The project promoted by a consortium led by ARM Properties Plc, has other members as Lagos State Development and Property Development Company (LSDPC) and AZDEC Design Company. LSDPC has given concession for the area for redevelopment for 30 years under a Public Private Partnerships (PPPs) scheme. ARM Properties Plc a property investment company substantially owned by and managed by ARM but structurally independent with its own board and management.

The Oluwole commercial district upgrading scheme is part of the state's Lagos Island Central Business District Revitalisation/Marina City Project, which is a five-year project, jointly executed by the Lagos government and private sector players. This project has already begun with the redesigning and reconstruction of roads and infrastructure within the CBD and the adjoining axes.

Under the Oluwole Urban Market and Multifunctional City Centre, the hotspot known as Oluwole market is being upgraded with a purpose built modern, professionally managed multi functional mixed-use complex. Already, the former inhabitants have been compensated and the area cleared. Each family was given a flat in Shaha area and a K-klamp each. Apart from the on-going work at the Oluwole Urban market, which measures about 5, 000 square metres, the remaining site of 15, 000 square metres now serves as a car park temporarily.

The project has been subdivided into two phases. The first stage is the Oluwole Urban Market development, while the second phase will be the development of a multifunctional city centre. The site preparation for the market designed as a modern urban market/ commercial mall began October 2007. The piling works and the ground floor slabs have been completed. The projects' contractors are Dys Trocca Valsesia (DTV). Senior officials of ARM Properties Plc disclosed last week that the shops in the market have been sold off plan to about 50 per cent and construction work is two weeks ahead of schedule. The promoters may not release more shops into the real estate market until completion.

The new N1.5 billion-market/ commercial mall will be on four level concrete structures covering a floor area of about 3, 881 square metres with 390 shops/ stalls and 240 K-klamps. Oluwole shops are being sold on 25-year leases with prices ranging from N400,000 for K-Klamps to N19.5 million for fast food/bank units.

Anticipated for the area is a new access road to be constructed alongside the integrated development. Other facilities are toilets, lifts, loading bays, fire and burglary alarms system, waste disposal and management systems and power supply. The project's construction period is put at 18 months while the delivery date is the first quarter of next year.

"The conceptual design is based on an atrium concept and is balanced against careful attention to commercial and pedestrian activities as well as strategic positioning of outlets," according to Yinka Ogunsulire, the managing director of ARM Properties Plc.

The major redevelopment exercise will be anchored on the Oluwole Multifunctional City Centre (MFCC), a mixed-use complex which will include shops, stalls, restaurants, entertainment centres, recreational services, office units and support services. The project, comprising a five level structure will gulp N8 billion.

The proposed development will be kick-started in July and will run in two phases. The Phase I comprises the development of the Central Area and the Right Wing from the ground to the 4th floor shops, office space and multi storey car park. The Phase II consists of the Left Wing Area with shop and office spaces. "The office market in Lagos is mainly corporate built, which are usually large spaces. But, most of the demands are for smaller spaces. We plan to provide first class smaller business units that people can buy or rent, which can be used as show room or offices.

"We strongly believe that we can always change people behaviour by giving them a first grade environment to work and live in. A lot of us thought that Lagos couldn't change. But if you change the environment and give dignity to people, our mindset would change. We are looking at facility that works during the day and night, a 24-hour facility," Ogunsulire said.

The Guardian that the tender process will commence next month with the completion of the working drawings. Some pre-qualified contractors may be invited to bid for the construction of the MFCC. The team of consultants will come AZDEC.

The project encompasses the Veranda city complex - central main building left and right wings with series of covered walkways, atriums and courtyards. There is also a pedestrian friendly development, with bridges linking the spaces to offices and shopping area to other parts of the centre.

"This concept is designed to create a functional, aesthetically pleasing space and allows for natural ventilation. The ventilation system works using a stack system with cool air coming below and hot air rising and moving out of the structure through roof- top outlets. The atrium style also allows for equal exposure to all shops whilst enclosing all commercial activities. The design lends itself to a retail environment with a workable pedestrian flow and circulation pattern that blends with its urban surroundings. This is balanced against careful attention to the strategic positioning of shop and market outlets," she added.

On completion, Briscoe Properties Limited (BPL), a facilities management company, which will ensure the continued maintenance and efficient running of the development, will manage the complex.

sammyjay77

May 12th, 2008, 11:24 AM

Group Plans N585bn Investments in Nigeria

Africa Investor (AI), a Pan-African business group, has begun mobilisation of N585 billion ($5 billion) towards development of infrastructure in Nigeria.
The group said given the deplorable state of key social infrastructure in Nigeria and many other African countries, the building, expansion and maitenance of roads, railways, bridges, power stations and even telecommunication infrastructure can no longer be left to government alone. Chairman, African Investor, Alhaji Bamanga Tukur, said the group will remain committed to promoting development and investments in Nigeria, adding that the country has become a choice investment destination for global funds and foreign direct investment in Africa.
He spoke at a media chat to herald the forthcoming AI Nigeria Infrastructure Investors Projects Summit, slated to hold in Abuja, from June 16 to 17, 2008.
Tukur, a former governor of the defunct Gongola State and Chairman, African Business Roundtable, said the Summit was in response to President Umaru Musa Yar’Adua’s recent charge to the private sector to take deliberate efforts in driving the investment process to meet Nigeria’s infrastructure financing deficit, estimated at about N9billion per annum over the next few years. Investors from European Union and United States of America have indicated interest to attend the summit, while key players in the Nigeria's financial sector, namely Zenith Bank, Vetiva Capital and Oceanic Bank have indicated interest.

adebayoa

May 14th, 2008, 06:24 PM

Many have criticised Yar'Adua as being too slow, I believe that this report sheds more light at the problems that he faces.

* ACF wants indicted persons punished
From Mathias Okwe (Maputo), Saxone Akhaine (Kaduna) and Ozioruva Aliu (Benin)

PRESIDENT Umaru Musa Yar'Adua has finally begun action on the deplorable power situation in the country and Nigerians are soon to see the benefits, Finance Minister, Dr. Shamsudeen Usman, told a world press conference in Maputo, Mozambique, yesterday.

Usman, who is leading the Nigerian delegation to the 43rd annual meetings of the African Development Bank (ADB), also revealed that already, a team has been set up and has begun work on the costing of the Independent Power Projects (IPPs) scattered all over the country.

He was reacting to a question on when Nigerians would begin to enjoy the fruits of the efforts of the present administration on infrastructure upgrade with particular reference to power.

Conflicting figures, ranging between $10 billion and $16 billion, are believed to have been invested by the immediate past administration on the IPPs that are yet to go into operation.

Yar'Adua had told Nigerians while seeking their votes in 2007 that if elected into power, he would declare a state of emergency on the power sector immediately. Many Nigerians have been anxious since his assumption of office nearly one year ago on when action in the sector would begin.

But Usman yesterday explained that President Yar'Adua was very cautious on continuous investment on the projects until a proper costing of the actual requirement was undertaken by a completely neutral team because he has lost confidence in the bureaucrats in the Ministry of Power and Steel and the Power Holding Company of Nigeria (PHCN).

Usman also indicated that most of the IPPs were done without due regard to basic principles of procurement. Usman told a stunned press conference that contracts for some of the projects were signed without designs for them. He wondered how they arrived at the cost in the first instance.

His words: "The panel on the on-going power probe is going round the country. I don't know if anybody took them to the Mambilla Power Project. I am sure they didn't go to Mambilla, because if they go, nobody can show them where the dam is supposed to be sited. Even the physical location of the dam has not been agreed on, which means there was no design, nothing. Yet, before the last President left, a contract was signed.''

"Right now, what we are doing is that there is a team of experts that is going round all the power plants in the country and doing a proper costing and evaluation. Because what President Yar'Adua is saying is that I don't believe this guys anymore. It is the same guys that have been manning that sector in the past."

Usman cited a National Economic Council (NEC) meeting which deliberated on the power situation where there were "three former ministers of power who are now governors in the states, and when they listened to these PHCN men do their presentations on the problems in the sector, one of them raised his hands and said: "This is the same presentation you made to me five years ago. So the President said 'I don't believe these guys anymore because they are so used to it. They would tell you give us money, we will fix it. And they have been given money several times and they have not done anything with it."

"So, we are using a completely different approach this time around to try and get complete details and not to be pouring money into ventures that have refused to work, such that Nigerians can see the output,'' he concluded.

However, Northern elders under the aegis of the Arewa Consultative Forum (ACF) have asked the National Assembly to ensure that all those indicted in the on-going probes are brought to book. According to them, the probes are a litmus test of the integrity of the legislators in the National Assembly.

The ACF leadership however said the probes into the activities of ministries and parastatals of government and individuals in government businesses during the immediate past regime of former President Olusegun Obasanjo should not been seen as a witch-hunt, but a patriotic national duty.

Speaking with journalists in Kaduna yesterday, the Chairman of the ACF, retired General Ibrahim Bata Margwai Haruna, said that the reports of the probes by the various committees of the National Assembly should be fully implemented.

According to him, all the appropriate bodies must be given the necessary legal and political backing by the Federal Government to enable them execute the recommendations of the various committees and impose sanctions wherever required.

The ACF boss pointed out that since all Nigerian citizens were deemed equal before the law, those indicted in the reports of the probe panels, no matter how highly-placed, must not be treated as sacred cows.

He advised all those summoned by the National Assembly committees probing the spending in the various aspects of government businesses under the former president to appear before the lawmakers to defend themselves.

The ACF chairman reminded them that having been invested with the powers of sovereignty by the people, the National Assembly committees could compel such people to appear before the lawmakers.

Haruna warned that such past public office holders should not compare their current situation with the decision by some military heads of state, including Gen. Ibrahim Babangida, to drag the defunct Oputa panel to court following a summon it issued to them.

Said he: "Probes are not enough unless the consequential results are followed to an effect that will change our ethics and morality in this public businesses. There is the rule of law. So, they should put that into effect.

There is a rule of budget, there is a rule for using public finance. So, there is a law about public privatisation. There is a body created for it. And if the law and procedures are not followed, there is an infringement. And there should be an enforcement of the law. So, what we expect as citizens is to be equal before the law and be treated accordingly because otherwise, we are enthroning anarchy and disloyalty to the Nigerian constitution."

Meanwhile, workers in the power sector have described the on-going probe into the power sector as "media posturing" and called for greater commitment on the part of the authorities to reforming the sector.

The general secretary of the National Union of Electricity Employees (NUEE), Mr. Joe Ajaero, yesterday in Benin said that in as much as the House probe of the power sector was commendable, the federal legislators must go beyond media posturing to restore sanity to the power sector.

Ajaero spoke when members of the National Executive Council of NUEE were hosted by the Benin zone of the union.

He said: "Is it probe that we just want? Or are we thinking of the way forward? Are they thinking of getting the culprits to pay back what they have taken? Are they going to compel the contractors to complete the contracts awarded to them? These are the issues.

"Or are we thinking of having judicial commission of inquiry to get all the people involved to cough up all that they have stolen?

"It appears we are only trying to reduce it to a TV show, as the Ndudi Elumelu committee is trying to reduce it to. I think that is going to be an irony because that is not the first time that we are going into a probe."

The NUEE general secretary said that the power problem could not be solved in isolation of other national problems.

"We have suffered from the problem of governance from Independence. The rail system is not working. The education system in the country is not working. If we must fix the power sector, there must be commitment on the part of the leadership; commitment in the sense that we should not pay lip service," he said.

He said former President Olusegun Obasanjo spent eight years fighting with electricity workers who were insisting that the power plants should not be sold to enemies of the state.

He advised that any effort aimed at solving the problem of the power sector should be linked with power generation, which he said, must progressively grow from its present low level of 3,000 megawatts.

Ajaero called for more funding for the power sector. He advised that the sources of power generation should be diversified to include the use of coal, and water sources in addition to the current gas-based power plants.

"I want to tell you that Mambilla and Zungeru hydro-stations would have given you more megawatts than the five stations built by Obasanjo in the last eight years," he said.

The Benin Zonal Chairman of the NUEE, Mr. G.O. Idahosa, appealled to the management of the Power Holding Company of Nigeria (PHCN) to implement the numerous salary increases negotiated with the union.

He also said the management must also regularise the appointments of all personnel that have been retained on casual basis, and convert to their rightful grade levels of staff who have acquired the relevant educational qualifications.

Also speaking in Ibadan, the Oyo State capital, the Association of Professional Bodies of Nigeria urged the National Assembly to avoid sensational media reports.

Speaking with reporters in Ibadan at the formal inauguration and investiture of its executives, the association's president, Mr. Olubunmi Ajayi, noted that the incessant media reports on the on-going power probe would not enable the committee to achieve the desired goals.

Citing the recent altercation between the lawmakers and former President Olusegun Obasanjo where the committee members and the erstwhile leader disagreed over the actual amount spent by the past administration, the association said what the lawmakers should have done is to take time to find out details from the man in a manner devoid of provocation and abuse.

"Obasanjo has said the $6.5 billion was committed to the entire project in form of opening letters of credit for transmission lines that would facilitate energy generation. I am not sure Obasanjo had told anybody that he had spent this money.

It was discovered that he approved it, so the House should not blow the issue beyond proportion so that the fund could still be traced. People could use information the way they like but we should be cautious in the way we are managing the situation now so that we could achieve results. The media hype being employed by the committee must stop."

"One of the firms accused of receiving mobilisation fee but failed to do anything at the site had attributed its inability to start work to the hostile nature of the beneficiary community. We need to find out the true position of things from the community and monitor the firms and their owners instead of the current sensationalism that could make them go under for life," Ajayi added.

The APBN boss disclosed that the body is currently working with one of the nation's anti-graft agencies, the Economic and Financial Crimes Commission (EFCC), to discover fraudulent practices in the award of contracts by the three tiers of government.

adebayoa

May 14th, 2008, 06:25 PM

usersky0010

May 15th, 2008, 12:56 AM

AFRICA OPEN FOR BUSSINESS
Interesting video on NIGERIA

http://www.youtube.com/watch?v=jLtaW7-mcak

sammyjay77

May 15th, 2008, 01:43 PM

AFRICA OPEN FOR BUSSINESS
Interesting video on NIGERIA

http://www.youtube.com/watch?v=jLtaW7-mcak

Tears Drop! She is an Enterpreneur. God knows I am getting ready to go back home soon to make my own impact!!!

sammyjay77

May 15th, 2008, 09:50 PM

Nigeria could see 11 pct growth in '08-Finance minister

MAPUTO, May 15 (Reuters) - Nigeria's economic growth could accelerate to as much as 11 percent by the end of the year from the current 6 percent rate, the country's finance minister said on Thursday.

"This year we are doing very well. The growth rate is 6 percent and the outlook is anywhere between 9 and 11 percent," Finance Minister Shamsuddeen Usman told Reuters on the sidelines of the African Development Bank meeting in Mozambique's capital, Maputo.

"In our estimate it could be even higher than that, by the end of the year," he said.

Usman said the non-oil sector was powering the OPEC member's economic growth, with the oil sector contracting, partly because of violent disruptions in the oil-rich Niger Delta region.

"Agriculture principally," was driving growth, he said.

Oil output in Nigeria, Africa's top producer since 1978 on an annual basis, tumbled by as much as 1.36 million bpd in late April or more than 40 percent of its installed output capacity.

Militant groups have been on a violent campaign in the Niger Delta since 2006 to press for greater local control over oil revenues and development for the impoverished region. The militants say five decades of oil extraction have polluted the land and water, and enriched corrupt politicians.

Most analysts believe Nigeria will retake the top position this month as much of its shut-in production has been restored. (Reporting by Wendell Roelf; Editing by Marius Bosch and Tom Hals)

allhavoc

May 16th, 2008, 10:03 PM

More uplifting news from my adopted city... although mindful of the devastating news of another deadly pipeline fire

Lagos: The making of a mega city
By Robert Obioha Okere
Friday, May 16, 2008

Since assuming power as the governor of Lagos State, Chief Babatunde Raji Fashola has left no one in doubt as to his capacity to give Lagos a face-lift in terms of network of roads infrastructure and other amenities. His silent road revolution is fast catching on all Lagosians by surprise in almost all parts of the state known for its aquatic splendor and excellence.

And to ensure that Lagos works, Fashola is carrying all Lagosians along irrespective of tribal or religious affiliations. He has exhibited such high nationalistic fervour in his cabinet and other appointments.

We doff our hats to him in this special regard and urge him to carry on with his people-oriented programme aimed at making every Lagosian feel at home in the state so that together we shall all put our best in the making of the new emerging mega city.

The pattern of Fashola’s new development revolution is a great improvement on the able foundation laid by the recent erstwhile and amiable governor of the state, Ashiwaju Bola Ahmed Tinubu who ensured that there was no ethnic or religious violence during his eight-year reign. Theirs is a clear demonstration of continuity of governance that is absent in Nigerian democracy. What happens in other states is that the new helmsmen try to outdo their former bosses by dismantling all their programmes without considering the harm they are doing to the people and the polity as well.
But in Tinubu and Fashola, we see a new thinking in governance that should serve as a veritable example to other levels of governments in the country.

Besides corruption, another reason Nigeria is witnessing delayed development is that there is no continuity in government. Every new government appears to be run on a new clean slate. That was why Better Life for Rural Women initiated by Mrs. Miriam Babangida was allowed to die.
But in Lagos State, somebody thought it wise to continue where his predecessor in office stopped and it is a good thing happening in our time and all of us are happy for it. We wish that other states of the federation would emulate the worth example of Tinubu and Fashola for it is indeed a model in our emerging democratic dispensation where personal examples are very scarce.

Other new governors would have abandoned Tinubu’s BRT and other programmes he initiated on roads before he left office but not a Fashola. Rather, he insisted to finish up whatever his former boos left unfinished before embarking on new ones. That is exactly how it should be and not otherwise. Fashola’s road interest is spread all over Lagos. It touches almost every corner. No area is left out. If any area is left out in this phase, we believe they will indeed be covered in the next or later phases.

The pulse of the new road initiative can be felt from Lagos Mainland to Island and from the Island to Lekki. The revolution is seen in Western Avenue and Eric Moore where gigantic drainage system is being undertaken. Okota area is also not left out of this road revolution. My colleagues and friends from other parts of Lagos are testifying that roads in their areas are also receiving due attention.

If the adverts in some national dailies are any thing to go by, then those living along Lagos Badagry expressway have every cause to smile. The intention of the Lagos sate administration is to expand the already choked expressway where robberies take place every night because of the unusual traffic jam witnessed on the Barracks and Volkswagen points of the road.

It is hearty-warming that this road, which has been the nightmare of many road users, will be expanded to four or more lanes plus a light railway to cater for the deluge of traffic and commuters on that international route that connects Nigeria with her neighbours in the West African sub-region.
Besides these and others we do not know, this article is provoked by the quantum of road construction going on in many rural areas of Lagos State.

We were particularly impressed by the construction work going on in Ilogbo road in Ajangbadi area of Ojo Local Government Area. What is of interest most is the speed with which the entire project is being executed and the provision of a comprehensive drainage system to ensure that flood does not destroy the road after construction. The import of the drainage system can be better understood considering the fact that flooding destroys most Lagos roads.

The Ilogbo project coming not quite long after Fashola in like manner constructed the almost impassable Shibiri road. Before then, Shibiri road has remained commuters’ nightmare but now it is a delight to all that use that long stretch of road that leads to Imude, Oke-Agbo and other enclosed riverine settlements in Ojo and its environs.

Fashola’s philosophy and revolution is perhaps anchored on the premise that the opening up of more of Lagos rural areas will ease the congestion already being experienced in the metropolis where mass population has led to the overstretching of all available social infrastructures to their last limit.
The matter is not even helped by the ever-growing population of the state where thousands of people migrate from other parts of the country on a daily basis in search of means of livelihood.

Indeed, Eko is working and we must give honour to whom it is due. The Ilogbo road is being linked with the Badagry expressway through Adeloko and Iyana-Isashi. And within Ajangbadi itself, there are other link roads containing Ilogbo and Shibiri roads to make for easy movement of people, goods and services.

The Fashola road revolution is not limited to Ojo areas; it is taking place in all local government areas as well as the development centers in the state. For instance, the Iba-LASU road has been dualised but the traffic in Iyana-Iba is still a headache to road users. But here some other major roads in the area that really need attention. One of them is the Aka road that linked Ajangbadi and Okokomaiko. In the past eight years or so, that road has remained a shadow of its former self. For those long years of neglect, Aka road has become impassable and the problem will be aggravated with the coming of rains. Aka road needs to be fixed because it will help ease the mad traffic at Alaba International market road where practically all commuters living in Ajangbadi, Shibiri and Ilogbo axis arte literally forced to, pass through every day.

Linking the commuters to Okokomaiko through Aka road will lessen the stress they go through passing through Alaba road that the traders have turned into a motor-park and where the combination of trailers, cars, motor-cycles, and truck pushers have conspiratorially worsened the already chaotic traffic. In the alternative, there is the need to construct another access road that will by-pass Alaba market through Ilufe so that commuters can avoid using Alaba road entirely.

And to ease the traffic jam at Volkswagen and Iyana-Iba, we suggest that a by-pass be built respectively for those going to Alaba and those going to Iba Estate so that they can be spared of the agony the traffic jam induce on that road just as the Festac inhabitants in Mile Two were saved of the First Gate traffic jam with a link bridge.

With the way Fashola is going about massive road construction in the state, there is hope that by the time he would have spent four to eight years in the saddle, Lagos would have become a mega city of everyone’s delight.

And to help the government to achieve this laudable objective, Lagosians should do away with habits that block the drainage. They should embrace environmental hygiene and not throw garbage anyhow. In Lagos, all manner of shit is thrown on the road. Some even pour dish water on the road.
Sachets of pure water litter Lagos roads. These block the drainage and contribute to the perennial flooding experienced yearly in Lagos. To make Lagos clean and inhabitable, Lagosians should embrace those good attitudes that ensure a clean and healthy environment.

That is the way they can contribute meaningfully to the silent infrastructural revolution of Fashola’s administration. That is the only way they can assist the government realize its aim of making Lagos a mega city. Making Lagos a mega city should be the responsibility of all Lagosians, the federal government, corporate organizations and the organized private sector. We share in Fashola’s optimism of making Lagos the tourist and business hub of Africa. But this dream can only be achieved if all the stakeholders work assiduously towards it.

Tbite

May 18th, 2008, 07:31 AM

FG to Pump N400bn Into Economy

The Federal Government is to pump in a whooping N400 billion into the economy in the next few days as a way of achieving a double-digit gross domestic product growth level for the economy. The sum is part of the excess crude earning.

Also, the government has projected a double digit growth in Gross Domestic Production as a means of reducing poverty by 30% and creating 10 million new jobs by 2011.

The double digit growth, according to the government, is mandatory for the achievement of Vision 2020.

According to the minister of state, finance, Mr. Remi Babalola, who spoke at the opening of the inter-ministerial retreat on harmonisation of NEEDS 2008-2011 and the seven- point agenda, said the money is the difference between the $59 per litre for 2008 budget and the $53 per litre for 2007.

Before the passing of the 2008 budget the government had based the monthly federal allocation on the 2007 budget as approved by the constitution. Hence with the passing of the 2008 budget, it was learnt that the governors had called for the sharing of the difference, which was said to be in the region of N400 billion, starting from January, 2008.

Babalola warned that sharing the huge amount might endanger the economy.

His fear is that injecting the unbudgeted money into the economy might make nonsense of any monetary policy of the government.

According to him, "N400 billion of excess crude unbudgeted money is ready to be pumped into the economy in the next few days. For us to keep the unstoppable momentum in our economic growth, we need to control the injection of the money to avoid inflation. We don't need IMF to tell us that we are doing well."

He also warned that if the governors who are becoming more powerful day-by day "are not prudent in spending, we are going to lose all the substantial gains we have made so far."

In his remarks, Vice President Goodluck Jonathan, who is also the c hairman of the National Planning Commission, said as contained in the macro-economic framework, a double digit Gross Domestic Product growth level is mandatory to achieve the economic goal of the administration's Vision 2020.

"As encapsulated in the macro-economic framework, a double digit GDP growth level is mandatory for attaining our national goal of reducing poverty by 30 per cent and creating 10 million new jobs by 2011. It is also important to stress that a double digit growth rate is also mandatory for Nigeria to achieve her vision 2020 goal.

"The implication is that sectoral growth rates, particularly the non-oil sector, must be doubled during the plan period. For this to happen, it is imperative that in the next four years, the strategies to be adopted are well articulated, focused, coherent, consistent and achievable."

He warned that the country has no reason not to achieve the Millennium Development Goals (MDGs).

In his remark, Mr. Sanusi Daggash, minister of national planning, said the retreat is one of the key activities in the roadmap for harmonising draft NEEDS 2 and the seven-point agenda towards having a medium-term national development plan for year 2000-2011.

According to him, "The need to harmonise the draft National Economic Empowerment and Development Strategy (NEEDS 2) with the seven- point agenda was as a result of the desire to ensure that this administration's campaign promises are backed up with specific strategies for its actualisation.

"The output of the harmonisation process would form the medium term development plan that would guide the development operations of this administration."

Dr. Abba Sayyadi Ruma, minister of agriculture and water resources, who also spoke at the occasion, hinged the agricultural development challenges to include inconsistent agricultural policies, dearth of reliable planning statistics, ageing and unorganised farmers, poor uptake of research results, seed stock-poor yield potential, rain-fed production, low irrigated land area, and agriculture land-no collateral value, uncertain soil fertility, fertiliser and agriculture chemicals-supply, poor quality.

The policy thrust of the Yar'Adua's government in relation to boosting food sufficiency include, achieving substantial import substitution, achieve sustainable food security, attain gainful employment and modernisation of agricultural production, storage, processing, and marketing, he said.

Professor Chukwuma Soludo, governor of the Central Bank of Nigeria , in his presentation, submitted that the country's financial system is still weak, despite reforms.

The reforms, according to him, "need to be more holistic, coordinated and reinforcing, across the entire financial system.

"Key sectors need to operate with proper reference to a central objective or global targets."

Risky, but ambitious

Matthias Offodile

May 18th, 2008, 10:53 PM

Nigerian leader’s 12-month reform goal

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By Matthew Green in Abuja

Published: May 18 2008 16:56 | Last updated: May 18 2008 16:56

Umaru Yar’Adua, Nigeria’s president, has pledged to deliver important economic reforms within 12 months in spite of growing doubts about his ability to advance the liberal agenda begun under his predecessor.

Slow progress in delivering on campaign promises since his swearing-in last May has fuelled a debate about whether the president is strong enough to keep the country on the path to faster growth.

But Mr Yar’Adua told the Financial Times he was poised to act on plans formulated during his first year in office to tackle reform of the oil industry, an insurgency in the Niger Delta and a chronic power crisis.

“You cannot make major achievements by just trying to rush things,” Mr Yar’Adua said. “Next year will be really a very, very interesting year for this country.”

Whether he is right will determine whether sub-Saharan Africa’s second biggest economy vindicates the sharp increase in foreign investor interest in the continent in recent years or exposes the limits of the region’s revival.

Specifically, Mr Yar’Adua pledged to complete an overhaul of the state-run Nigerian National Petroleum Corporation within 12 months, though he acknowledged that reform would be a “major challenge” given opposition by entrenched vested interests.

He also said he would hold a Niger Delta peace summit within eight weeks and was working towards declaring a state of emergency on power, measures promised originally for last year.

Mr Yar’Adua’s assurances came against a backdrop of concern in the investment community about whether he can safeguard reforms enacted by Olusegun Obasanjo, his predecessor, who succeeded in putting Nigeria on the map for a new generation of foreign investors.

In contrast to Mr Obasanjo, who used the powers of the presidency to impose change from above, sometimes with scant regard for legal niceties, Mr Yar’Adua has made enshrining the rule of law his guiding principle.

While his approach has won plaudits in a country where corruption permeates public life, Mr Yar’Adua’s insistence on due process has fostered a perception among commentators that he is failing to stamp his authority on Nigeria’s fractious political class.

A series of inquiries launched by the national assembly into the previous government’s management of the power sector, land allocations in Abuja and the NNPC have dominated this year’s agenda.

Investors are particularly worried that Nigeria could sacrifice a reputation for fiscal prudence achieved by the past administration if Mr Yar’Adua does not do more to rein in spending pressures fuelled by record oil prices.

Mr Obasanjo set up a fund to save windfall oil revenues earned by Africa’s biggest crude exporter, partly by ignoring constitutional provisions that guaranteed Nigeria’s 36 state governments a certain share of national income.

But Mr Yar’Adua, who spent eight years as a state governor in the mainly Muslim north before winning last April’s flawed elections, has recognised the states’ demands for their entitlements.

“We strike a balance between spending by governments and the macro-economic stability,” he said. “The measures we are taking to keep macro-economic stability are more stringent than they have ever been.”

Sources close to the finance ministry project that total spending by the various tiers of government will, however, increase by a nominal 39 per cent this year to $53.4bn (€34bn, £27bn), raising the risk that inflation could hit double digits.

Mr Yar’Adua’s government has also cancelled a series of privatisations, including the sale of Nigeria’s biggest steel plant to a subsidiary of Mittal Group, after a government panel uncovered evidence of asset stripping. The company denies wrongdoing.

Mr Yar’Adua said such reviews would inculcate the kind of rules-based culture Nigeria needs to harness private capital to repair its crumbling infrastructure.

“By the time we succeed in ensuring this absolute respect for the rule of law in this country, Nigeria will be among the nations that will have the highest sanctity for investors,” Mr Yar’Adua said. “This is the greatest battle this nation is fighting today.”

Copyright The Financial Times Limited 2008

sammyjay77

May 19th, 2008, 01:05 PM

Slow but effective in the Long term. I can remember that Yar a dua took two years in Katsina state before he actually started implementing his reforms which he did successfully. A lot of mess have been made over the last few years that needs cleaning up which is what he is doing and in that process sacrifices will be made.

Nigeria needs reforms that will stand the test of time not the one that will be effective on the short and medium term and in achieving this a lot of old things will have to give ways in the form of radical reforms which I believe Yar a dua will unleash into the polity in the nearest future.

Lets wait and see!!!

sammyjay77

May 19th, 2008, 01:36 PM

Access Bank acquires 3 banks abroad

ACCESS Bank Plc has announced the acquisition of three banks outside the country. A statement from the bank said: “Access Bank has completed the acquisition of three commercial banks in Cote d’Ivoire, Rwanda and the Democratic Republic of Congo (DRC).
"The banks are Omnifinance Bank, Cote d’Ivoire; Bancor Bank of Rwanda and Banque Privée du Congo.

“Access Bank Plc has acquired an 88 per cent interest in Omnifinance Bank, Cote d’Ivoire through a combination of purchase of existing shares and injection of additional capital.

Omnifinance Bank now has a capital base in excess of US$20 million. Access Bank Plc also acquired 75 per cent interest in Bancor Bank of Rwanda and a 90 per cent interest in Banque Privée du Congo.”

These acquisitions are in line with Access Bank Plc’s African Expansion Strategy which commenced in March last year.

The acquisition of Omnifinance Bank will provide the platform for extending the bank’s reach into the UEMOA (CFA Zone). It will assist the bank to complete its coverage of West Africa’s two monetary zones,” the statement added.

According to the bank, it intends to leverage on the acquisition of Bancor Bank S.A Rwanda, the fourth largest bank in Rwanda with strong shareholder and corporate customer base, to grow market share and build scale in East African countries such as Tanzania, Uganda and Kenya.

The addition of Banque Privée du Congo will facilitate the bank’s entry into the Central African region and provide the opportunity to harness the attractive growth potentials of the region.

“We welcome the employees of Omnifinance Bank, Cote D’Ivoire, Bancor Bank S. A., Rwanda, and Banque Privée du Congo, Congo (DRC) into the Access Bank family.

We are impressed at the contributions of stakeholders towards the smooth integration of each bank into the Access Bank Group,” Aigboje Aig-Imoukhuede, Group Managing Director/CEO, Access Bank Plc said.

sammyjay77

May 19th, 2008, 02:19 PM

Portsmouth and United plan Nigeria game

PORTSMOUTH, England -- FA Cup winners Portsmouth are planning a game against English league champions Manchester United in Nigeria during preparations for next season

Dates for the fixture have yet to be finalized but manager Harry Redknapp said: "Apparently they want us out there and the thinking was that if it is good for Manchester United then it's certainly good for us"

The game would provide a chance for two Nigerians to appear in their homeland - Nwankwo Kanu, who scored the Cup final winner against Cardiff at Wembley on Saturday, and John Utaka, whose cross set up the goal.

Redknapp, whose squad was cheered by an estimated 200,000 fans on an open-top bus tour of Portsmouth, said: "After Nigeria we come back and play United again at Wembley in the Community Shield and we're looking forward to that - but personally my only plan is for a holiday with my wife.

"I don't think I'll be going to the European Championship this time but there are some interesting matches and maybe I'll take in one or two."

Fans lined the streets five or six deep in places to greet their returning heroes after Portsmouth's first FA Cup triumph for 69 years.

The players, staff and families and the Cup were paraded on three open-top buses that passed through the

sammyjay77

May 19th, 2008, 02:23 PM

Nigeria's Financial System to Displace South Afirca's - Soludo

Governor of the Central Bank of Nigeria (CBN), Prof Chukwuma Soludo has said that with the fast pace of the Nigerian financial system, it will soon displace that of South Africa which is ranked the first in the continent. At the ninth distinguished guest lecture held at the weekend by the Forum, Alexander Hall, University College Hospital, Ibadan, the CBN boss said that by year 2020, Nigerian financial system would become the African financial hub.

Giving the statistics of the remarkable progress that has been recorded in the economy, he narrated how Nigeria had transcended the prediction made by a London Bank that Nigeria would record over $100billion as total capitalization of stock exchange by year 2008.

Prof. Soludo said, "the total capitalization of stock exchange is over N12 trillion and that is over $100billion. From $9.6billion in 2003 to over $100 billion, several months ahead of the prediction of the London Bank".

According to him, "we have come from 4th or 5th position in Africa, we are now second to South Africa. And to South Africa, we are closing the gap gradually. We are growing at a much faster rate than they are growing and with the speed at which we are moving and growing, it is only a matter of couple of years, if we can sustain this momentum, we get over there and Nigeria will become African Financial hub". Speaking on the topic, entitled, "Built to last? The Challenge of Financial Sector Reforms in Nigeria", he continued, this cannot not happen on its own unless we have a conscious, coordinated approach system of strategy to do that. "Where we are, is that, we now have a blueprint that would design this financial system of 2020 with about 400 initiatives. These 400 initiatives will be implemented between now and 2015", he said.

Recalling the deplorable situation of our banking system before the financial reform that was embarked upon, he stated how he got a call from someone who was asking him which bank was safe to keep his N200,000. Many Nigerians, according to him, had lost confidence in the banking industry to the extent that there was hardly a day he entered into Aso Rock, without people calling his attention to their money being trapped in banks. Specifically, he stressed how the Bank of the North was owing the CBN N42 billion and for it to make it through the consolidation, the apex bank had to write-off 80% of the debt.

Highlighting the niche he had created in the sector, as against 13.6m Nigerians operating bank accounts in 2003, the number grew to 24.3 million in 2007 an additional 11 million people. He noted that the reform did not come without challenges as he stressed that many people were skeptical about the policy and at times, his life was being threatened.

His words, "as the last regime was getting to an end, some people were praying saying how many days were left for Chief Olusegun Obasanjo to go and not just only him but I hope he's going with that Soludo". He went further, "as at the end of 2003 before the reforms, the total number of branches of commercial banks was about 3,200 and as at December, there were about 4,579 branches.

On foreign exchange, he pointed out that "If you are still keeping dollars under the mattress, it is now time to off-load because you will keep on losing money as it has gone down to N113 to a dollar. There is absolutely no doubt about that. The naira is the currency to hold. Our external debt is down and our external reserve is up from about 7.5billion in 2003 to approximately 60billion today. On the educational system, he insisted that the current "educational system will not take us through the 21st century. The rest of the world is leaving us behind because of the quality and character of our educational system. It is one area that is very fundamental.

You know what is going on now where the children of the elite are in private primary, secondary schools and the children of the poor are in the community primary schools in rural areas where is no electricity. No teacher to teach them.

The outcome is that we are leaving behind about 50% of our population without primary or secondary education. What we have now is dynasty of poverty so that the children of the poor might end up being poor and children of the elite who are privileged to be properly educated, also become a dynasty".

sammyjay77

May 19th, 2008, 05:35 PM

N25bn Second Benue Bridge project finally takes off

Construction work on the Bagana-Guto Bridge across the Benue River, a public-private partnership project, which is promoted as the quickest route from the Northern part of the country to the East and South-South, has finally taken off.

The project, which also encompasses the Eco-Tourist and Enterprise Village is said to gulp more than N25bn, and is being promoted by Digital Toll Company Limited.

The head of the concessionaire company and Managing Director, Digital Toll, Dr. Godwin Adeogba, disclosed on Friday in an exclusive interview with our correspondent in Abuja, that work had commenced on the site, which is about 45 minutes drive from the Federal capital Territory.

He said, “We have just completed work on the design of the whole project, comprising a dual-carriageway and a digitally enhanced bridge, which will also link two beach resorts, what we call the Eco-Tourist and Enterprise Village.

“We have cleared the site, and have brought equipment and work is going on at the site at the moment.”

Adeogba explained that the bridge, which length would be about one and a half kilometres, would provide the shortest route from any part of the North to the East and the South-South.

He said, “The fascinating thing about this Bagana bridge project is that it provides the shortest route for anyone travelling from the FCT to the Eastern or South-South part of the country.

“Usually, for any one travelling to the East from Abuja, whether through Lafia in Nassarawa State or through Lokoja in Kogi State, , such a person has to spend not les than seven and a half hours.”

He said when the new bridge was completed, it would create a straight line between two distances, and when the road linking the states and the FCT was constructed, Enugu in the East could be reached in less than three hours.

“This is why we consider it realistic for tolling; tolls should be charged because whoever wishes to get to the East from Abuja faster, he should gladly pay some toll. Otherwise, there is still the longer route for those who would not pay the stipulated toll,” he said.

Apart from the bridge, he said there would also be two 30-kilometre roads that would link some communities to the bridge.

sammyjay77

May 20th, 2008, 11:55 AM

Nigeria: Goldman Sachs Forecasts $90bn Export Revenue

Goldman Sachs, an American investment bank, whose Economic Research Unit predicted that Nigeria would be one of the top 20 Economies by 2020, has forecast that the country‘s export revenue would rise to $90 billion (N10.6 trillion) this year.
It also said that the continuous increase in private capital inflows and Foreign Direct Investment (FDI) into Nigeria is a vote of confidence in the overall management of the country.
Given this scenario, Goldman Sachs, in its recently released report entitled “New Market Analyst”, said the rise in Nigeria’s oil and non-oil sector would sustain her growth and strengthen the currency.
“Investment has flowed not only into the oil sector but also into other areas of the economy, especially the financial sector. This did not occur in previous booms and is important both because of the economic development it will finance, and also as a vote of confidence in the overall economic management of the country. Hence, the oil and non-oil economy should both sustain strong growth,” Goldman Sachs said.
Nigeria had earned $58 billion (N6.8 trillion) revenue from exports in 2006, indicating that in spite of the Niger Delta crisis that has disrupted oil operations, the country has been a major benefactor in the rise in the price of oil in the international market.
“Nigeria’s financial picture has seen two important improvements in recent years. Most obviously, high oil prices have boosted export and fiscal revenues (despite declining production) and will continue to do so.”
“We forecast that export revenues will surge to $90 billion in 2008 (from $58 billion in 2006) on the back of our commodities team’s forecast that the oil price will approach $150 bbl by end of year,” the report said.
It however, noted that inflation pressure will increase. “Although, the greatly improved financing picture should allow the central bank to counter this by allowing the currency to appreciate,” it said.
Noting that Nigeria has continuously posted fiscal surpluses averaging 6 per cent in the past three years, Goldman Sachs said that given its view on oil prices, it expects Nigeria’s revenue to remain strong and continue to outpace spending.
Acknowledging that Nigeria’s growth has accelerated to an average of 7 per cent over the past five years, the report said that a number of factors have contributed to this turnaround.
It listed these factors to include improved macroeconomic policies, the rehabilitation of the country’s financial sector and official debt relief and high commodity prices.
“But in order to sustain growth at a high level, the country will need to invest, both in the oil sector itself and in other areas of the economy. Part of the capital needed for this investment is likely to be accumulated through export revenues, which will in turn permit a higher level of domestic investment; foreign capital inflows, both private (foreign direct investment, remittances) and public (foreign aid) should provide a second source of financing.
“Lastly, in order to maintain economic stability and finance infrastructure spending, the government must be able to raise adequate revenues”, the report said.

sammyjay77

May 20th, 2008, 11:59 AM

Yar’Adua to Meet Mbeki over Attack on Nigerians

President Umaru Yar'Adua will meet South Africa's President Thabo Mbeki in Arusha, Tanzania, on Thursday to discuss the attack on Nigerians in South Africa amongst other issues, even as the wave of xenophobic violence continued to sweep across the former apartheid country yesterday claiming more than 22 lives.
Hundreds of Nigerians were forced to flee to the Nigerian Consulate in Johannesburg in search of temporary accommodation.
Presidential spokesman, Segun Adeniyi, told the News Agency of Nigeria (NAN) yesterday in Abuja that Yar'Adua had been fully briefed on the situation in South Africa.
“President Yar'Adua has been fully briefed on the situation in South Africa as it affects Nigerians. He is in touch with the South African authorities.
“The president feels pained by the distress being experienced by Nigerians in South Africa and he has directed the Foreign Affairs Ministry to offer immediate support to victims,'' Adeniyi said.
He added that the development would be top on the agenda of many issues President Yar'Adua would be discussing with President Mbeki in Tanzania.
NAN also reported that Nigeria's Consul General in Johannesburg, Mr Yakubu Ahmed, has cautioned displaced Nigerians against retaliation in the face of renewed attacks against foreigners by South Africans.
Ahmed made the appeal yesterday while addressing those who besieged the consulate seeking for refuge and protection.
The Nigerians were displaced over the weekend from their homes and shops, which were also looted by the rampaging Southern Africans.
Ahmed urged them to desist from embarking on any form of retaliatory measure or taking the laws into their hands.
He said the Consulate had already forwarded a protest letter to the South African Foreign Ministry and informed the federal government about the situation.
On the request by the Nigerians for a temporary accommodation, Ahmed said efforts were being made to address the issues. "We will seek permission from the relevant superior authority concerning your situation," he said.
Ahmed urged them to avoid violent areas and keep in touch with the consulate "as the issue is being discussed at the diplomatic level by all countries," he said.
Mr Kingsley Mmnwokedire, one of the victims, told the News Agency of Nigeria (NAN) that the attackers besieged his restaurant and sports shop and looted everything while the policemen posted to protect them stood watching.
"I ran out and went to the policemen, seeking for help and intervention, but they just looked at me and said I should try and get to a safe place," Nwokedire said.
Mrs Florence Nwaneri also said police at Brammfontien denied refuge to her and other foreign nationals as they tried to escape the violent attacks.
"The police at Brammfontein on Sunday locked the gate against us as we tried to get refuge from the South Africans who invaded our homes," she said.
NAN reports that while many Nigerians have suffered assaults from the attacks, there was yet no report of any death among Nigerians. NAN also reports that the police yesterday use rubber bullets to disperse Southern Africans from assaulting and looting property belonging to foreigners in Jules and Primose near Johannesburg and Sunnyside in central Pretoria.
The police also confirmed that about 250 Southern Africans had been arrested for alleged violent attacks, rape, robbery, murder and attempted murder of foreigners.
Police was struggling to restore order while immigrants from African neighbours are accused by the South Africans in the townships, among the country's poorest areas, of taking jobs and fuelling the high rate of violent crime.
Mbeki and ruling ANC party leader Jacob Zuma have called for an end to the violence, which threatens a new strain on an economy struggling with rising inflation, power outages and skills shortage but observers say their calls have gone unheeded.
NAN reports that while many Nigerians have suffered assaults from the attacks, there have been no reports of deaths among Nigerians.
Hundreds of immigrants have taken refuge in police stations, churches and government offices. Foreigners ``At the moment some of the people have been taken to the city hall for safety, but some of them are still running around and do not know where to go," police spokesman Veli Nhlapo told SABC.
Police fired rubber bullets at gangs of youths, who patrolled unruly streets, armed with sticks, rocks and knives. Scores have been arrested in connection with the violence. South African newspapers carried photos of a man who was set alight by a mob at the weekend.
Callers to radio stations urged authorities to impose curfews and bring in the army to restore order.in some of the most violent areas.
Among the immigrants are an estimated three million Zimbabweans who fled the economic collapse in their country. The Zimbabweans, like others, have been lured by work in South Africa's mines, farms and homes, and by one of the world's most liberal immigration and refugee policies. Aid group Medecins Sans Frontieres said the situation in the townships now amounted to a humanitarian crisis

sammyjay77

May 20th, 2008, 12:01 PM

Some Policy Reversals were Necessary’

President Umaru Musa Yar’Adua speaks on several critical issues in an exclusive interview with Financial Times of London. Excerpts:

FT: What do you think have been your achievements in your first year since taking office? YAR’ADUA: I think my greatest achievement is the effort to institute a strict culture for respect for the rule of law in Nigeria. All the problems this country is facing can be traced to breakdown of respect for the rule of law, regulations, procedures and due process in almost every aspect of our national life, including interaction between our citizens. Once you have a system, where law and order, established regulations and procedures are not being respected, you find even in personal dealings, business dealings in the market place, between individuals, there is no respect for decent dealings that are governed by civilised behaviour. Respect for the rule of law is the basis for civilisation.
One of the things that investors have been asking about on this theme is very much the sanctity of contracts. A lot of privatisations that were conducted by the last government have been reversed or re-examined. What assurances can you give to foreign investors that Nigeria is indeed a safe place to invest?
The effort by the government to ensure compliance with the rule of law, that will govern all forms of business relations…whether it is government or between corporations themselves…In the courts, whether it is business disputes, or arbitrations, everybody will know and be certain about their clear position. When people say that privatisations conducted were reversed, they don’t give examples.
Many privatisations have taken place in the past. When it comes to the notice of government that a particular privatisation has taken place in violation of existing laws, and other people who have competed now write petitions, government is duty bound to examine that particular transaction and find if they are correct and then take action…There is the case of Mittal, Ajaokuta Steel…If the transaction was carried out, in violation of due process, but even then this administration allowed the transaction to go on, until Mittal itself violated the terms of the transactions….If you take the asset and then violate the terms of the agreement entered, and this is brought to the attention of government, now government has the duty to look into this and see. If it is established that yes, truly the other party has violated the terms of the agreement, it should just not hold back and sit back, because we want to observe the sanctity of agreements; you observe the sanctity of all agreements entered if they are in conformity with the law and they are being implemented and executed in conformity with the lawful agreement signed. Where there are violations, government is duty bound when these violations are brought to its attention to look into it and take action.
So what’s your message to foreign investors who may be feeling nervous about committing to Nigeria?
I think they should disregard all negative propaganda. When people come to say that the sanctity of contracts is being violated because of a few reversals, let them check case by case. They will find out that in fact, Nigeria now, the efforts the government is making to ensure absolute adherence to the rule of law and to ensure that all contractual agreements and all covenants entered by government according to law are totally and absolutely respected. This has never happened in this country, and in fact it’s the greatest challenge the nation is facing.
By the time we succeed in ensuring this absolute respect for the rule of law in this country, Nigeria will be among the nations that will have the highest sanctity for investors, and it will be a nation where investors are certain of what they are doing, and there will be no uncertainty whatsoever. And they will know that if they do business they have to do business sincerely and honestly and in accordance with the laws. And they will know -- those who come to do business and would want to abuse the processes and the laws to get an advantage -- they will also know that will also not be possible in Nigeria. This is the greatest battle this nation is fighting today.
One of the other issues that some investors are asking about is fiscal discipline. There’s some concern in the markets that the large influx of oil wealth coupled with the pressure from state governments to spend that money is going to put big pressure on inflation and threaten Nigeria’s economic stability. What are you going to do to ensure that Nigeria’s progress in managing it’s finances is defended?
Sometimes I get amazed, I have heard some of these questions. Revenues and the sharing of revenues in Nigeria , like in any other country, are governed by laws. And the sharing of revenues is controlled by existing laws which are even constitutional, and some financial regulations. Now the way and manner we go about sharing this revenue, we follow the law, we do not violate the law. We are duty bound to observe and respect the constitutional provision, which we do. In terms of the management of the economy, because that is the case, the constitution of this nation clearly spells out in no uncertain terms, what to do with the national revenue, how to share it.
We meet with all stakeholders, I meet with the governors, all those who have a stake in the federation account, the minister of finance and the governor of central bank, and try to agree. Because where the law says this is what you do, you cannot do anything outside it unless you reach an agreement with all stakeholders, because any one of them who disagrees with what you are doing will go to court and get a ruling…For this year, for example…we determine the minimum amount, or the maximum amount, that will go to the tiers of government to provide a balance between keeping inflation low, interest rates low, having a stable macro-economic environment, and also providing funds to go into infrastructural development, because you must strike a balance…One of the problems the nation is facing…is the serious gap in terms of infrastructure. And without some critical infrastructure, power, and energy, mass transportation infrastructure, railways, waterways…the cement sector…iron and steel, these are critical infrastructure. Without actually sorting them out there is no way the nation can develop and the economy will grow at a rate we are targeting, above 10 percent per annum.
But you’ve got senior officials warning that this pressure for spending is imperilling the reform process, isn’t it up to you to really rein in those demands and protect what’s been achieved?
This is what I am telling you, that we are striking a balance. Inflation is still at single-digit. There has been no time during this administration that inflation has risen above a single-digit. That is because of the tight monetary control, that is because we strike a balance between spending by governments and the macro-economic stability. This is what I am telling you…We are not sharing all the revenue. In fact, we have a benchmark (oil price). We have said ’okay, above the benchmark, all funds go to the excess crude account.’…From the excess crude account, for the entire year, we saved one trillion naira from it. We take one trillion naira out, this is a figure we have determined for this year, that will ensure macro-economic stability.
That amount will not be pumped into the economy. And the remaining excess crude funds we keep it to stabilise the budget. If the benchmark for any reason in a month becomes lower than that budgeted, we take from the excess crude and then balance it, so that for all the budgets in the federation, there will be no shortfall. At the end of that, in case for instance crude price has not fallen, that means the volume will be more than we anticipated, then all stakeholders will now meet again. Apart from the one trillion naira, this is what is left in the excess crude. What percentage of it can we share without affecting macro-economic stability?
When that is determined, then the rest joins the savings. We are now trying to establish a national reserve by law, and this we are doing to ensure that we always have this balance, and build a national reserve. All these things are being done as a mechanism to stabilise the macro-economy. At no time during this administration has the macro-economy been out of gear. This is because we keep the spending within limits not to affect macro-economic stability…We sent a budget to the national assembly, a benchmark of $53 dollars, and we had serious quarrels with the national assembly when they hijacked it to $59 dollar a barrel. The benchmark we have is now the current going price is about 50 percent. The remaining 50 per cent goes into the reserve.
So investors can be confident that you will take every action to ensure macro-economic stability?
Yes…At no time have we allowed the macro-economy to get out of gear. Discipline has been brought in to the pattern of spending. For example, throughout this year from the time we took over, new projects are not being awarded, efforts are being made to complete ongoing projects, that is what caused a lot of fiscal indiscipline. When you have ongoing projects, and then you start giving projects everywhere, until actually your capacity to spend is over-stretched, and then you even begin to borrow to put more funds into the system.
Since then we have never borrowed, we have never raised a bond, we have never put extra funds into the system, and all this is to maintain the macro-economic stability. The measures we are taking to keep macro-economic stability are more stringent than they had ever been, and we are infusing a greater discipline in terms of fiscal management and fiscal responsibility.
In terms of managing the economy, there’s a lot of speculation about a rift between the presidency and the central bank. How do you assess the performance of the central bank governor?
I think the central bank is okay, there is no rift between the presidency and the central bank. The central bank reports what it does to the presidency. There has been talk that central bank independence is being eroded, when I hear those talks, again, I become amazed. Actually the act, the law, that gave central banks the powers to be almost independent was enacted and signed into law precisely on the 25th May, 2007, so under no government in Nigeria has it ever enjoyed these powers, it has only under the current administration that it has enjoyed those powers. So to say that the powers are being eroded by this administration is really amazing. Because before this administration they never had these powers…Because it is a new act that gives the central bank much, much greater independence.
Because of the insistence of the government on the rule of law, wherever the central bank governor acts in a way that violates the law, he’s called to order. It’s just as simple as that. For instance, while there is a reported action which violates the law, going beyond his authority, to do anything, then he is called to order. So because an act gives you greater independence, you cannot act to stretch that independence outside the law.
I will give you two examples, and these are the two ones people are pointing at – the issue of the redenomination of the naira. He cannot do it without approval of the president, he went ahead to begin to announce the policy, to begin doing it, and he was stopped, because he was violating the law. He needs approval of the president. It’s not for myself or any president to give approval as we wish. The essence of the law is that when it comes to the president for approval there has to be various processes and consultations and meetings and the proposals have to go to various bodies, federal executive council and so forth, before a final decision is taken.
Some people are claiming that the independence of central bank is being eroded in the case of Africa Finance Corporation. The Africa Finance Corporation, which is supposed to be a financial institution, which is supposed to be an institution which is contintentally based, now for Nigeria, and even the central bank to go into it, there has to be approval by law, by the federal executive council, and by the senate of the federal republic, this was not done. So because this was not done, independently, unilaterally he went ahead to do it, without getting approval of the federal executive council, without getting approval from the senate. Even when he brings it to the table of the federal executive council, I have to go to the senate of the federal republic by law, because it is a treaty…Whenever there is a new law, there are likely to be mistakes committed there. For instance the new CBN act, which gives it a lot of independence and autonomy, just came into effect at the end of May last year… (gazetted in July)… Because it’s a new act… so there may be mistakes.
Given that you’ve mentioned these various violations of the law, how much confidence do you have personally in Governor Soludo’s helmsmanship of the central bank?
As far as I am concerned, I don’t have much complaints about governor Soludo. My assessment is that he’s doing well, but just like any other person he can make mistakes, genuine mistakes, out of maybe misunderstandings of the ways the law should be applied…You have to note that in several of my public pronouncements I have insisted that everybody in Nigeria in positions of authority, including the president, must conduct themselves in conformity with the law, and wherever there is a breach, it has to be corrected.
Does the governor have your unwavering support for his reform programme?
Yes… He has my support… Take any institution, do your work, that is what I insist, and do your work according to law, that is what I insist. I insist on this absolutely. Do your work according to the law. Where you now go outside the law, you’ll be corrected.
There’s obviously been very rapid growth in banking sector in the last couple of years since the consolidation exercise, there’ve also been several scandals involving different banks, and concerns about the stability of the banking sector. How much confidence do you have in the stability of the system at the moment?
I have full confidence in the stability of the system, because the sector has been growing, and there is a lot of investment coming into the banking sector, and that is an indication of the confidence investors have in the banking sector in Nigeria today.
Given recent scandals, is there a need for tighter supervision in Nigeria?
I think so. We have a much, much better situation than we had before. Before in fact we had cases of a lot of the banks going under, because there was no effective supervision. Now you have a few problems today, and you cannot expect 100 percent compliance with the existing regulations, even in the most advanced countries you find sometimes a few banks, even big ones, having problems here and there. I think the banking sector is doing well.
What about the Niger Delta? There was a lot of optimism when you came in to power that there’d be a rapid resolution of the conflict.
There still is. When people thought a rapid resolution, I think they were expecting me to wave a magic wand, which I don’t have. The Niger Delta problem has been a very protracted and old problem, and the important thing to note is that we are determined to resolve this problem, and we have been working day in, day out, to resolve the problem and we have been reaching out to stakeholders including the militant leaders. In fact, we are just at the stage of holding a comprehensive summit of stakeholders of the Niger Delta region.
When do you think that will be?
I think the summit will be within the next eight weeks. One thing you would note, that actually there has been some progress, in terms of the militant activities in the Niger Delta, since we took over. I can assure that within the next few years we’ll make tremendous progress, because it’s a problem that cannot be solved overnight. It’s a problem where there a lot of interests, there is a lot of criminality…The central interest in the area is the issue of bunkering [ theft] of crude oil. It’s not an easy problem to solve, and we are working out serious measures to deal with the problem comprehensively, and I can assure you it is not an easy problem because of the vast criminal activities taking place, and in particular because of the huge interest, and huge activities regarding bunkering of crude oil and petroleum products in the area.
What else do you think we’re going to see in terms of economic reforms going forward into your second year? What’s next on your list of priorities?
Power. We are working out, I have said we will declare a national emergency in the power sector, which we are working out the programmes to do that. The restructuring of NNPC, which is aimed at making NNPC a national oil company that will go out and compete with another oil companies like IOCs, use its assets to access funds from the capital market, it is going to be quite a major shift in policy and restructuring. This will mean that the national budget will be freed from the joint venture cash calls, which will make funds available to put into security, which is one of our key agendas, into providing adequate security, maintenance of law and order, education and health. The other thing that we are doing is ensuring that we bring in the private sector to invest in infrastructure. We are working out the regulatory framework so that major infrastructure, private sector can come in and provide infrastructure, railways, waterways, take over the running of airports, sea ports, major trunk roads, so that they provide services, they charge for these services, and that will relieve government from heavy investment.
When do you think we will see these regulations?
They are almost completed. Since we came we have been working on hem. And I think we are almost finished now. Next year will be really a very, very interesting year for this country, very interesting.
It’s interesting you say that. A lot of Nigerians I speak to say you have been very slow in your reform programme? What do you say when you hear Nigerians saying that you are moving slowly?
I smile, because I know, I have been a governor for eight years, I have also had some challenges to sort out, some problems. Because I know the quality of what you can achieve depends on how you plan a programme. You cannot make major achievements by just trying to rush things. The quality of your planning, the quality of your programmes, determine the nature of their achievements…What we have to learn to know is that you cannot achieve anything without planning, and planning is a long-term process. That is why I am saying that we need to produce a national plan to the year 2020.

sammyjay77

May 20th, 2008, 12:07 PM

External reserve: Orient refinery to save $1b yearly, says MD

NIGERIA'S external reserve would be swollen by about $500 million to $1 billion yearly when the Orient refinery in Anambra State becomes operational next year.

This was disclosed by the Managing Director/ Chief Executive of Orient Petroleum Resources Plc (OPRP), Chief Emeka Nwawka, in an interview with journalists in Awka.

Nwawka noted that when the refined products and bye-products from Orient Refinery comes on stream in 2009, it would save the nation scarce foreign reserve amounting to about $1 billion currently being spent on the importation of refined products yearly in the first instance. This margin would increase progressively as operations increase and improve, he added.

OPRP, which is the promoters of the refinery project, according to Nwawka, would turn things around positively for the economy.

He said, "The supply of processed hydrocarbon products from the refinery, gas and dependable electricity supply would provide the impetus and feedstock for other industries in Anambra State."

He stressed that in his lecture at the maiden yearly lecture of the Onitsha Chamber of Commerce, Industries, Mines and Agriculture (ONICCIMA) titled, "Orient Petroleum Resources Plc in the eye of a mega city," the refinery would make substantial contribution to the nation's economy, which currently depended mostly on crude oil export.

He pointed out that the Gross Domestic Product (GDP) would be improved directly by increasing the productive industrial sector with the addition of the considerable income from the refinery.

"Indirectly, by provision of reliable energy supply to the rest of the economy, an overall growth will be realised in the country. The direct benefit will include the creation of opportunities for commerce and entrepreneurship, well aid, steady jobs, hard currency savings from import substation, human resource development and skills acquisition through on-the-spot training and creation of social harmony in the project area by the company's participating community relations approach," he maintained.

He stated that new industries would be attracted to the state, while the efficiency of existing ones would be enhanced significantly with the provision of dependable infrastructure.

In addition, the new airport to be built in Anambra State would attract important businesses and services to the state and maintain a highly skilled workforce, adding that it would improve the local environment and open it up for tourism, as well as improve the access to domestic and international transit routes.

Nwawka spoke of the benefits of the refinery to the host communities in the areas of participatory community relations policy; community ranked development projects; sustenance/improvement of native occupations; shareholding; board representation and regular interactive sessions.

On the issue of preservation of the environment, OPRP held itself to the highest international standards, as well as full adherence to Nigerian law, pointing out that the Chairman of the board of directors, Chief Emeka Anyaoku, is the international president of the World Widelife Fund (WWF) having taken over the position from Prince Philip, the Duke of Edinburgh, stressing that it placed the company to not only uphold the highest standards but also be seen as a champion for the preservation of the environment in all its facets.

His words, "Having completed rigorously the due process of Environmental Impact Assessment (EIA) for the refinery, the EIA report had been approved by the authorities and an EIA certificate issued by the Federal Government to OPRP for the construction and operation of Orient refinery."

sammyjay77

May 20th, 2008, 12:20 PM

Nigeria got $12.5bn FDI in 2007 —FG

THE Federal Government said, weekend, that a total $12.5 billion of foreign investment inflow was recorded in the economy at the end of 2007.
This continuing capital flow into the country, government said, was an indication that “Nigeria is a beautiful bride for foreign investors.”

It was represented by four serving Ministers: Dr Shamshudeen Usman (Finance), Mr. John Odeh (Communication), Senator Sanusi Daggash (National Planning) and Hajia Fatimoh Ibrahim (Power).

Speaking for the team, Minister of Finance and Chairman, Economic Management Team, Dr. Usman, said government was aware of the comments being made by some Nigerians that “these Mallams” have come to fritter away the savings and progress made in the last eight years, and stressed that government’s Economic Management Team felt it should do its work quietly instead of making so much fuss of every move of government.

Giving a breakdown of the capital inflow, Usman said from less than $1 billion in 1999, capital inflow rose in 2000 to $1.2 billion and further rose in 2004 to $4.4 billion. According to the minister, this further rose in 2005 to $5.0 billion, $14.0 billion in 2006 and $12.5 billion in 2007. Foreign remittances, on the other hand, stood at $2.26 billion in 2004 and rose to $ 7 billion in 2007. This development, he said, was underpinned by macroeconomic stability and increasing confidence by foreign investors in the Nigeria economy.

He said Nigeria’s economic performance continued to be favourable as real GDP growth averaged 7.3 per cent over the last four years. “Economic growth has been strong and prospects are good,” he said, adding that while real GDP growth for 2007 stood at 6 per cent in 2008, the target growth is 9 per cent. Inflation rate, he disclosed, in 2007 stood at 6.6 per cent and is expected to maintain the same trend in 2008.

Usman said overall, fiscal balance as a percentage of GDP in 2007 was 3.6 per cent while that of 2008 is put at 4.8 per cent with current account balance as a percentage of GDP in 2007 was 16.2 per cent while that of 2008 is expected at 12.1per cent. Exchange rate, he said, had remained stable.

The minister alerted the nation on the threats to the budgets, National Planning, Vision 2020 posed by the Niger Delta question.

He said: “The overall outlook is promising, but there exist potential risks.” These, he said, were “emerging global high commodity (especially food) prices; non-attainment of the MDGs which could erode macroeconomic gains made over the last five years, growth achieved not felt by significant percentage of population; effect of climate change enhance mitigation efforts; Niger Delta issues; militant’s activities; disruption of oil pipelines.”

These issues, he said, if not resolved could frustrate government’s plan for Nigeria to become one of the 20 largest economy by 2020.

According to him, the present government is prudent and is ensuring that public sector spending is consistent with macroeconomic stability and growth. Continuing, the minister said there was bright prospects going forward as the IMF’s World Economic Outlook has predicted 9 per cent growth for Nigeria in 2008 and that the recent growth was accounted for by the non-oil sector with inflation remaining in single digit.

He said while growing the nation’s external reserves, fiscal restraint had been the most underlying and supporting factor and that while the 2008 budget focusses on completing on-going projects a supplementary budget to address key infrastructure such as power and transportation will soon be presented to the National Assembly.

He said the thrust of the present government was to: “Maintain macroeconomic stability; improve gainful employment; improve private sector participation in financing infrastructure; provision of enabling environment for private sector; improve investment climate for doing business; review of laws and regulations; maintain single digit inflation rate; maintain exchange rate stability.”

He dismissed allegation that government has jettisoned the reforms of the past government. He said government was focussing on promoting an all-inclusive growth by focusing on sectors where the poor and the vulnerable groups are dominant such as infrastructure provision — power and transportation; agriculture small and medium enterprises (SMEs) and informal sector operations

sammyjay77

May 20th, 2008, 12:25 PM

Lagos Business School and the FT Ranking

The latest ranking of open executive education conducted by the Financial Times of London, placed the Lagos Business School (LBS) in the 48th position out of Top 50 open executive business education schools around the globe. Last year, LBS made it as the 50th institution, for the first time, into the Top 50 ranking. This year, LBS climbed two rungs higher.
This is remarkable for an institution that operates in very challenging environment as ours. This ranking is an acknowledgment of the tremendous amount of hard work that LBS, its faculty members and students have put in over the years. Their consistency in doing that which they believe is right is beginning to pay off.

One dimension of this success is that the programme run by LBS, for which it is now among the Top 50, provides a solid platform for future business leaders to hone their business skills and acumen. For the programme to be judged as doing this well means an endorsement of the qualifications of those that have participated in the programme over the years. We expect that many of these alumni will continue to provide meaningful solutions to present and future business challenges in Nigeria and beyond.

The current ranking demonstrates that last year's achievement was not a fluke. However, LBS will recognise that the nature of success is that it raises the bar for future successes. Future challenges for LBS include remaining among the Top 50 schools in open executive education and striving to do better in the ranking. More so, LBS should begin to compete favourably in other areas of business education and rankings such as the Global MBA ranking, conducted by the Financial Times.

As a private institution, LBS may have succeeded in part because of its autonomy. It has provided a platform to attract a good faculty, and provide access to contemporary books, journals and technology. These enable faculty members to avail themselves of global exposure to the latest trends and developments in their fields.

As we rejoice with the Lagos Business School, we enjoin similar institutions and many other Nigerian higher institutions to emulate the focus and determination of LBS in consistently upholding the best standards in knowledge impartation and practice.

Managers of Nigeria's higher institutions should take time and study the LBS model, adopt and adapt to some of the best practices and application that have earned the LBS this global acclaim. They should vigorously harness the human capital that we have in the institutions, improve them through research and provide the latest tools for the development of faculties and improvement of curricula.

pappy

May 21st, 2008, 06:36 AM

NIQS backs megacity plans, advocates vertical buildings for Lagos

QUANTITY surveyors in Lagos are of the view that for successful implementation of its megacity plans, the Lagos State Government need a new master plan for the city, which would incorporate the needs of every community in the state.

Emerging from a three-day seminar in Lagos recently, officials of the state chapter of the Nigerian Institute of Quantity Surveyors (NIQS), noted that the existing land space in the state must be totally determined, in order to determine the location of which projects.

The chapter's Chairman, Mr. Wasiu Akewusola, noted that the NIQS viewed the limited landmass in the state in relation to the rising population as the major factor militating against physical development in the state.

"So, in view of this reality, two things stand out, funds for the provision of the needed infrastructure and how to tackle the sprawling slums in the metropolis."

To maximise the existing landmass, the surveyors recommend what he termed "horizontal physical development," comprising high-rise buildings, particularly for housing, as opposed to "vertical development."

This approach, Akewusola noted, would facilitate an expansion that would accommodate a greater number of people, rather than a situation where plots of land would be utilised for erecting bungalows for fewer number of people.

He noted that government would do well to establish a working relationship between it and developers on the need for high-rise building models in their respective estates.

His words: "It is necessary to assist the present government in Lagos to achieve its megacity dreams. And with the rate at which infrastructure are being redeveloped, it is hoped that all stakeholders will support the administration, particularly the professionals in the built environment and developers."

Similarly, another official of the institute, Mr. Olayemi Shonubi, the NIQS publicity secretary, noted that apart from the regional master plan which government had said it would execute, an holistic approach for the preparation of a new master plan in Lagos is inevitable.

He said that the quantity surveyors believed that the total re-development of all existing slums in Lagos, coupled with the preparation of a new master plan would allow the complete success of the mega city project by the government.

He added that government could only meet the challenges associated with slums and the growing population if satellite communities, with high-rise structure are encouraged, rather than the current practice where acres of lands were being developed for private residences.

The NIQS officials also pointed the attention of the state government to "inherent shortcomings" in some key areas where rapid infrastructure development is on going, particularly the Lekki-Epe corridor, the Badagry Expressway and the Ojodu-Mowe axis.

According to Shonubi, the same mistake made during the construction of Badagry Expressway, where only regional lanes were constructed without alternative routes is being replicated along the Lekki axis.

He said that without the construction of coastal road along the axis, the proposed Fourth Mainland Bridge would amount to nothing, "as motorists and commuters would only end up making use of the existing highway, which will eventually result in traffic gridlock." The best way out, he added, was to embark on the construction of coastal roads now before the commencement of the proposed fourth mainland bridge.

Earlier, the quantity surveyors during the seminar, which had as topic, "Cost Control and Effective Project Delivery," had examined some factors affecting quality control and cost effectiveness in project execution.

According to Akewusola, construction costs for a building should be controlled in a way that the planned structure would not be adversely affected. "In the course of executing a project, there are situations when prices of materials would change. Such sudden changes in the cost should not affect the quality of the project. But without adequate knowledge and in the quest to maximise the profit, quality may be unwittingly compromised. Hence, the need for a refresher course for our members."

This is the realest piece of news I've read from Nigeria in a looooooong time and I completely agree! It's nice to know that we have people in that country that have what we call...you guessed it...BRAINS!

sammyjay77

May 21st, 2008, 11:38 AM

Yar’Adua’s Long Walk to Economic Direction

Not too fast but very steady. That was the obvious conclusion of ministers who briefed journalists on one year of President Umaru Musa Yar’Adua last weekend.
At a joint ministerial briefing in Lagos, Finance Minister, Dr. Shamsuddeen Usman, described Nigeria’s current debt stock as healthy and sustainable – thanks to Nigeria’s exits from London and Paris Clubs of Creditors and a cautious approach to new debts.
Usman, who was accompanied by the Minister for Power, Hajia Balarabe Ibrahim, her counterpart at National Planning, Senator Sanusi Dagash, and the Minister of Information and Communication, John Odey, said that Nigeria’s current debt is sustainable.
“We (Nigeria) can even decide to pay off our creditors now. Public debt to GDP is 11.4 per cent, which is less than 34 per cent for BB rated countries,” he added.
The Finance Minister is absolutely right. Nigeria can now afford to pay off its creditors given that the country had over N17 billion in its excess crude account as at last April.
He also said that Nigeria has secured fresh loans totalling $700 million from the World Bank ($500million) and the African Development Bank ($200million) to fund the Lagos/Isagamu, Benin/Port Harcourt and Aba/Cameroon roads.
Nigeria’s economic performance, he said, continues to be favourable with real Gross Domestic Product (GDP) growth averaging 7.3 per cent over the last four years.
Noting that recent growth was accounted for by non-oil sector with inflation remaining at single digit coupled with growing external reserves, he said that fiscal restraint has been the most underlying and supporting factor.
Goldman Sachs, an American investment bank, whose Economic Research Unit predicted that Nigeria would be one of the top 20 Economies by 2020, has also lent credence to the Finance Minster’s statement concerning the state of the Nigerian economy.
In its latest report, Goldman Sachs said that the continuous increase in private capital inflows and Foreign Direct Investment (FDI) into Nigeria is a vote of confidence in the overall management of the country.
Given this scenario, Goldman Sachs, in its recently released “New Market Analyst”, said the rise in Nigeria’s oil and non-oil sector would sustain her growth and strengthen the currency.
“Investment has flowed not only into the oil sector but also into other areas of the economy, especially the financial sector. This did not occur in previous booms and is important both because of the economic development it will finance, and also as a vote of confidence in the overall economic management of the country. Hence, the oil and non-oil economy should both sustain strong growth,” Goldman Sachs said.
Usman listed government’s policy thrust to include maintenance of macroeconomc stability, improvement in gainful employment; improvement in private sector participation in financing infrastructure, provision of enabling environment for private sector and improving investment climate.
Others have to do with reviewing laws and regulations, maintaining single digit inflation rate and maintaining exchange stability.
He said the 7-point agenda is being integrated with the National Economic Empowerment Development Strategic 2 (NEEDS 2) into a 3-year, medium term National Development Plan (NDP).
The NDP, he said, would transform policy statement into action plans through strategic planning using Medium Term Expenditure Framework (MTEF) annual budgets as instruments of implementation.
The Minister, who admitted that the government is not happy with the decay in infrastructural facilities in the country, said that a supplementary budget would soon be passed to address key areas in the economy such as power and transportation.
He said that the federal government had found it necessary to reverse some policy decisions of the past regime because it wanted to ensure that things were done properly and had to ensure that the ‘garbage cleaning’ was completed.
Two of such policy reversals that Nigerians have hailed are the sale of the Ajaokuta Steel to Global and the sale of Kaduna and Port Harcourt refineries.
Two of those that have generated criticism are the reversal of sale of NICON and Nigeria Reinsurance to Global Fleet owned by Barrister Jimoh Ibrahim and the review of the Production Sharing Contract Agreement (PSCA) and Joint Operating Agreement (JOA).
Usman said that the current administration’s fiscal restraint had largely been responsible for growing external reserves and that the outlook for the Nigerian economy “is quite bright” as attested to by the IMF Article IV Report on the country, stressing that Nigeria’s public debt is also still at a low level of 11.4 per cent of gross domestic product (GDP), and less that the average of 34 per cent for BB rated countries.
Responding to questions on the epileptic nature of power supply in the country, Hajia Ibrahim admitted that the federal government had found it difficult to provide the level of power required in the country.
She attributed the difficulty to the fact that power generation is capital intensive and policies had continued to shift with different administrations.
“So we are now involving the private sector and we have put in place measures to attract private sector investments, and equally look at all our installations in generation, transmission and distribution in order to improve the services of the sector.
“We have looked critically into the requirements to generate an additional 1,500 megawatts to the current 3,000 megawatts from the same plants and then go on to create more from the Independent Power Projects (IPPs) in the short- and medium terms,” she added.
There is no doubt that the 7-point agenda of the present administration is geared towards achieving a sustainable growth for the Nigerian economy, ability to address immediately the decay in infrastructure especially the epileptic power supply would however, be yard stick for measuring the success of Yar’Adua led administration.
Nigerians are getting sick and tired of all kinds of stories regarding how they can enjoy stable power supply. The cost of doing business in Nigeria occasioned by the incessant power supply is one of the most expensive in the world. Industries, banks, entrepreneurs and virtually all Nigerians and its inhabitants have to provide generate their own power. Some industries have even had to construct their own roads and provide water for running their factories – a development that has led to the collapse of thousand of factories and further raising the unemployment rate in the country. This development has also made products manufactured in Nigeria less competitive culminating in the flooding of the country with foreign products.
The immediate past administration spent eight years and several billions of naira without achieving any noticeable changes in the power sector. By next week Thursday the present administration would have spent 365 days in office, which is fairly enough for a administration to settle down.
But while the steps may not be yielding results now, the Yar’Adua administration maintains that it is building a solid foundation and charting the right direction for the economic development of the country.

sammyjay77

May 22nd, 2008, 09:20 AM

CBD: Island gets new shuttle transport, multi-storey car parks

CBD: Island gets new shuttle transport, multi-storey car parks
By Mudiaga Affe
Published: Thursday, 22 May 2008
Lagos State Government, in collaboration with local and foreign automobile dealers, is to introduce a new transportation system to replace the existing ones in the Central Business Districts, Lagos Island.

This was even as the government also warned street traders to steer clear of the entire CBD area or face prosecution, in its effort to maintain zero-tolerance for street trading.

The Special Adviser to the Governor on CBD, Mr. Oyinlomo Danmole, made the disclosure at a media briefing in Lagos to commemorate the first year in office of Governor Babatunde Fashola.

According to Danmole, the state government has already opened discussions with representatives of National Union of Road Transport Workers, Lagos Island Unit; local and foreign automobile dealers on an arrangement to ensure a better, efficient transportation system in the CBD.

He explained: “The initiative will provide new and comfortable shuttle services devoid of the present chaotic commuter transportation system.

“Arrangement has equally been concluded to beautify all the walkways in Lagos CBD, to prevent the display of wares by street traders and make the act of walking an enjoyable one for recreation and comfort of pedestrians.”

The governor‘s aide further disclosed that the state Lands Bureau has been contacted to determine the status of all the abandoned buildings and open spaces within the CBD, with a view to developing such open spaces into multi-storey car parks, with shopping malls and executive public toilets in order to eradicate defecation and defacing of the environment.

He continued: “We are also working towards the installation of car park meters in identified locations, to ameliorate parking problems in the CBD.

“To encourage relaxation and reduce incidence of stress- induced ailments, especially among shoppers and business executives, a public-private partnership is being worked out for the maintenance of the historic Tinubu Square as a suitable relaxation centre.”

While disclosing that over 1,000 tonnes of waste are being generated daily from 93 markets on Lagos Island, Danmole said plans were on for the procurement of specialised waste equipment such as static compactors and chassis, as well as over 250 litter bins for the collection of the huge volume of waste from the various markets within the CBD

sammyjay77

May 22nd, 2008, 09:37 AM

Nigerians Still Welcome in S’Africa, Says Envoy

South African Ambassador to the United States, Mr. Welile Nhlapo, yesterday acknowledged that criminal cases involving Nigerians in that country may have been “blown out of proportion” in the past but said Nigerians are welcome.
Nhlapo spoke to THISDAY at a gathering organised by the African diplomatic corps in Washington, D.C., to kick off the Africa Day celebration.
The ambassador says there were no premeditated attacks against Nigerians or other foreigners living in the country but that the South African media may be culpable for exaggerating some issues.
His words: “Nigerians are unfortunate that in certain cases, any Nigerian who is in trouble with the law, it is blown out of proportion. The media in our country is not helpful because they take some of these issues and blow them out of proportion. There is the problem of unsolved crime where people begin to say, it is these foreigners, because they are not documented, so we are not able to trace them.”
He says the recent wave of attacks on foreigners is “totally unacceptable” because it reverses the gains the country has made since the defeat of the Apartheid system. The South African government is determined to tackle the issue head-on, the reason why it set up an inter-departmental task team to investigate the crisis and come up with recommendations on measures to be taken, he said.
“We cannot accept this situation because it reverses our gains since the end of apartheid. It is totally unacceptable, we are determined to tackle it. There is nothing South African about this,” he said.
Nhlapo said one of the problems in South Africa today is that people are living the consequences of the apartheid system where blacks were unable to get an education for skilled jobs. As a result, there are many Nigerians and people from other countries who have filled vacant positions that South Africans are not qualified to take up. The government has thus, embarked on skills training that will enable natives take up positions in the society.
“This is very appreciated because they stay and they do these jobs. South Africans in that context cannot complain about Nigerians or anybody taking their jobs because we don't have the skills to fill in those posts and this is what is happening,” he added.
He told THISDAY that the Nigerian High Commission in the country is working hard to correct wrong impressions about Nigerians. It is also trying to document Nigerians who are in that country, an effort which has led to a drop in the number of cases where Nigerians cannot be accounted for or rescued when they are in trouble, said Nhlapo.
The ambassador talked highly of Nigeria particularly the country's role during the struggle against apartheid. He recalled that Nigeria was the only country that was a member of the Front Line States comprising all the nations in the Southern region.
“That's why we used to talk about the Front Line States plus Nigeria. So Nigeria was part of the decision making in terms of the struggle and support that the countries of the region were giving to our struggle. Nigeria has been part of that and will continue to be,” he said.Nhlapo recalled that President Thabo Mbeki lived in Nigeria and was actually the representative of the African National Congress (ANC) in the country. Many South Africans received education in Nigeria before they got scholarships to go to Europe, he said. “This crisis cannot undermine the great relationship between both countries,” said Nhlapo. “There has been economic and political progress between both countries and that a bi-national commission manages the relationship between them.”
The South African government has been in contact with countries whose citizens were victims of the crisis, he said.

sammyjay77

May 22nd, 2008, 11:21 AM

Nigeria’s external reserves now 60 bn dollars

Nigeria’s foreign reserve currently stands at 60 billion dollars, the governor of the Central Bank (CBN), Charles Chukwuma Soludo has disclosed.
The CBN boss also stated that four million new shareholders were already on board the various blue chip companies all over the country.

Soludo, who disclosed this while delivering a lecture titled " Built to Last ? The Challenge of Financial Sector Reforms in Nigeria " organised by "The Forum" of the Alexander Brown Hall, University of Ibadan, reviewed the nation’s socio-economic development since the advent of the current civilian dispensation in 1999 to date. He concluded that "while a lot of gains had been recorded, "we still need some re-engineering to take us to the deserved destination."

He noted that Nigeria would soon become Africa’s financial hub as it was already rubbing shoulders with South Africa. As of the end of 2007, he stated, the aggregate balance sheet of the banking sector rose from N2.7trillion to over N10trillion.

Soludo remarked "that none of our banks was among the first 1,000 banks in the world when the reforms started. Even all the 89 banks in existence as of the time of that banking reforms put together, were the size of the number four largest bank in South Africa. "Our goal was that within the next 10 years, we should rank among the first 100 banks in the world. And at the rate things are going, within the next two years, we will be there."

The CBN Governor pointed out specifically that " Nigeria presently ranks very highly in the global reckoning to the extent of being in the same economic category with Russia, India and China."

Today Nigeria’s banking sector is the fastest growing in the world while the country is billed to be Africa’s financial hub in the nearest future, the Governor of the Central Bank (CBN), Professor Charles Chukwuma Soludo has said .

He stated that in 1999, Nigeria was considered a pariah state in the international arena with its high level of corruption, 419 and other negative ways of life.

Matthias Offodile

May 22nd, 2008, 12:11 PM

Total Launches 2nd Deepwater Project in Nigeria
Dow Jones Newswires Tuesday, May 20, 2008

PORT HARCOURT Nigeria (AFP via Dow Jones Newswires), May 20, 2008

The French oil company Total S.A. (12027.FR) Monday launched its second Nigerian deepwater drilling project, scheduled to come on stream in 2012 and expected eventually to yield 180,000 barrels a day.

The head of Total Nigeria, Jacques Marraud des Grottes, signed the multi-billion dollar investment at an official ceremony.

The new Usan project follows Total's first Nigerian deepwater investment, the Akpo field.

The new field will be operated by Elf Petroleum Nigeria Limited, a Total subsidiary.

Prospecting in the area began in 1993.

Marraud des Grottes said the new field would be developed in partnership with the Nigerian oil giant Nigerian National Petroleum Company (NNPC), Chevron Nigeria, Esso Exploration and Production Nigeria Offshore East.

"It is the second deep water project by Total in Nigeria, coming after Akpo, which is due to start producing early next year," he said at the ceremony attended by Nigerian Oil Minister Odein Ajumogobia and the governor of Rivers State, Chibuike Rotimi Amaechi.

It is the first major contract between the multinationals and the new Nigerian government headed by President Umaru Yar'Adua, elected a year ago.

Underwater pipelines including flowlines and risers to bring up oil and gas and inject water are to be provided at a cost of $1.6 billion by Saipem, formerly Bouygues Offshore, which is now a subsidiary of Italy's ENI S.P.A. (E).

Matthias Offodile

May 22nd, 2008, 12:15 PM

Nigeria got $12.5bn FDI in 2007 —FG

Hopefully not all in the oil sector

Nigeria’s external reserves now 60 bn dollars

it has to rise much much further, the price of oil is very high now! When Obj left office foreign exchange was close to $50 bn...since then the price of oil has almost doubled. so where is the money? only $10bn in one year, that should be the dividend for two months given the current price of oil.

Lagos Business School and the FT Ranking

Good news

allhavoc

May 22nd, 2008, 04:36 PM

I'm not sure, but I think they might have changed the formula for allocating money to the External Reserve since Yar Adua came in. Something about RMFAC and governors complaining...

usersky0010

May 22nd, 2008, 09:30 PM

DEL

usersky0010

May 22nd, 2008, 10:00 PM

DEL

sammyjay77

May 23rd, 2008, 10:02 AM

Nigeria: Mayor of London Due for Bilateral Talks

For a closer bilateral trade relations between Nigeria and the United Kingdom, the Rt. Hon, the Lord Mayor of the City of London, Alderman David Lewis will next week visit Nigeria .

The 2nd Secretary Political, British Deputy High Commission, Abuja, James McLaughlin in a statement said that the aim of the visit is also to support bilateral, commercial, financial and political relations between the United Kingdom and Nigeria.

In particular the Lord Major, according to the statement, will also seek to further develop City of London links with Nigeria's rapidly expanding financial services sector.

"The Lord Mayor's visit will also reinforce key messages of democracy, governance and reform and engage with His Excellency the President of Nigeria and other ministers including the Attorney General and Minister of Justice.

The Lord Mayor will be accompanied on this visit by senior business leaders from the City of London" he said.

sammyjay77

May 23rd, 2008, 05:27 PM

Fitch release on Federal Republic of Nigeria

May 23 - Fitch Ratings has today affirmed the Federal Republic of Nigeria's Long-term foreign currency Issuer Default rating (IDR) at 'BB-' (BB minus) and upgraded its Long-term local currency IDR to 'BB' from 'BB-' (BB minus). The Outlook for both ratings is Stable. At the same time, Fitch has affirmed the Short-term rating at 'B' and Country Ceiling at 'BB-' (BB minus). The upgrade of the Long-term local currency rating reflects the impressive development of the local currency debt market since the rating was first assigned in January 2006, improvements in debt management capacity, the relatively low level of domestic debt in relation to GDP and monetary aggregates and Nigeria's good inflation record.

"Nigeria's foreign currency rating reflects very strong financial ratios, as a result of high oil prices and saving of oil windfalls, and strong non-oil sector growth, thanks to macro- and micro-reforms. It also takes into account huge challenges in terms of addressing institutional and structural weaknesses, including a huge infrastructure gap, improving governance and fostering development," says Veronica Kalema, a Director in Fitch's Sovereign Group.

Non-oil sector growth averaged 10.2% in 2004-07, supported by reforms that were implemented in 2004-06, improved macroeconomic stability and increased fiscal spending of high oil revenues. This has offset a contraction in oil output over 2006-07, with overall GDP growth of 6% last year. Rising oil prices have sustained the current account surplus and brought a solid build-up of reserves over the past four years from USD7bn in 2003 to USD59bn at end-April 2008. Together with the settlement of Paris and London Club debt, gross and net external debt ratios are amongst the strongest of all credits rated by Fitch.

Public finances are also a rating strength for Nigeria. Though the oil price benchmark has increased in line with rising oil prices, the benchmark rule continues to ensure savings of a portion of oil windfalls and anchor macroeconomic stability.

Fitch adds however, that with an ever increasing benchmark price and more money being transferred to the states, the strengthening of states' finances, governance and service delivery will become more important for the rating.

There is broad policy continuity under the administration of President Umara Yar' Udua, which is committed to reforms and transparency. The new administration also has a strong commitment to the rule of law and is adhering to the constitutional sharing of oil revenues. Although this has contributed to a temporary slowdown of reform momentum and infrastructure spending in President Umara Yar' Udua's first year in office, these are now restarted and important progress in institutionalising reforms has been made. In particular, the commitment by the states to implementing fiscal responsibility bills and other reform legislation that would make these reforms more sustainable is encouraging. More importantly, a consensus amongst the tiers of government on revenue sharing and ECA usage has emerged that is consistent with safeguarding macroeconomic stability and avoiding wasteful spending. If implemented consistently, this will be very important for improvements in creditworthiness.

The ratings are constrained by a low level of economic and social development relative to its rating peers, as well as by structural and institutional weaknesses that prevent the country from making faster progress on development. With effective capacity of just 2000MW, the power situation is the single most important structural constraint and is a priority for the government. An integrated strategy, including a Multi-Year Tariff Order approved in April, is taking shape and while implementation is likely to prove challenging, it is finally moving in the right direction. The government is also developing a framework for Public Private Partnerships, which will be the way forward for infrastructure development. Addressing the power constraint and infrastructure in general will be important for raising growth potential and economic diversification and improving creditworthiness.

Although there are ongoing efforts to address the Niger Delta problem, through dialogue, and addressing criminality, continuing insecurity in the Niger Delta is a risk to the government's power and gas sector strategies and reduces oil production. A material improvement in the security of the region would greatly enhance creditworthiness.

The Outlook is looking good

allhavoc

May 23rd, 2008, 07:31 PM

^^ Pretty optimistic but the Niger-Delta problem is a BIG issue that may mar the hopes of 6000 MW by next year (which by the way would be a major achievement for this administration).

sammyjay77

May 23rd, 2008, 09:59 PM

Nigeria's Foreign Currency Reserves Rise 5.5% to $62 Billion

By Dulue Mbachu

May 23 (Bloomberg) -- Nigeria's foreign currency reserves stood at $62 billion on May 15, an increase of 5.5 percent from the previous month, the central bank said.

Reserves totaled $58.8 billion on April 15, the Abuja- based Central Bank of Nigeria said on its Web site today. Crude oil revenue are the main source of the country's foreign-exchange earnings, the bank said.

Record oil prices have helped Africa's largest crude producer to build the biggest foreign currency reserves in sub-Saharan Africa.

To contact the reporter on this story: Dulue Mbachu in Lagos via Johannesburg at pmrichardson@bloomberg.net.

Last Updated: May 23, 2008 06:25 EDT

ufookoro

May 26th, 2008, 01:22 PM

ALSCON begins export of aluminium

ALUMINIUM Smelter Company of Nigeria (ALSCON) has transported the first batch of 72 tonnes of ingots from its plant at Ikot Abasi, Akwa Ibom State to Onne Port in Rivers State for onward shipment to Rotterdam in Holland.

advertisement
The announcement was made by UC RUSAL, the world's largest aluminium producer.

Metal produced at ALSCON will also be made available for local industries in Nigeria, assisting in the development of local producers and providing new jobs for the country's economy.

ALSCON, which has a planned capacity of 193,000 tonnes of aluminium, is expected to become a major producer in Africa, RUSAL said in a statement.

It added: "UC RUSAL plans to completely modernise the ALSCON smelter by 2010. Approximately $300 million is earmarked for investment in the smelter's modernisation, including the dredging of the Imo River. Once ALSCON reaches full capacity, the smelter will provide 1,900 direct jobs. Associated small and medium size businesses, contracted to support the smelter and the development of necessary infrastructure, will also generate approximately 20,000 jobs downstream."

The statement also quoted Andrey Partyanskiy, ALSCON's managing director as saying: "The beginning of export shipment marks a significant milestone for ALSCON and represents new opportunities for all stakeholders. Sales of metal to the local market will also commence and will have a positive impact on local industries. We believe that Nigeria has great potential to become one of the major producers of aluminium in Africa."

:banana::banana::banana:

ceekay1

May 26th, 2008, 01:54 PM

[Africa tops investment destinations for M'East countries

THE Middle East Communications Exhibition and Conference (MECOM 2008) - the region's premier event for the telecommunications industry - opens today at the Abu Dhabi National Exhibition Centre.

Top on the agenda of the Gulf Cooperation Council (GCC) is the deployment of new investments this year in the spirit of liberalisation in information and communications technology (ICT) with very strong emphasis on telecommunications. About $10 billion has been set aside in this direction, for which Nigeria tops the list of beneficiary countries.

Mubadala Trading Company of Abu Dhabi bought Nigeria's fourth Global System of Mobile (GSM) Communication licence a little over one year ago for $400 million and has begun aggressive infrastructure deployment, ready to offer services using 0809 numbering. It will trade as Etisalat Nigeria.

Current and active civil engineering and infrastructure projects in the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates have a combined value of $1.3 trillion alone, according to research company Proleads.

Based on an estimated 25 per cent of infrastructure development budgets in Gulf Co-operation Council countries being spent on expanding telecommunications, MECOM 2008 organisers say the regional market could be worth up to a staggering $375 million over the next decade. This is besides the combined pool from where investments to other regions could be drawn.

The projected level of expenditure has driven local, regional and international telecoms companies to seek exhibition space at MECOM, including Abu Dhabi Media Company, Arvato, Blackberry, BT, du, Ericsson, Etisalat, GMS Voipmonster, Itqan, Maktoob, Panasonic, TRA and Yahsat.

MECOM is held under the patronage of Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and showcases the latest in hardware, software and services related to the industry.

Global telecoms industry leaders are also descending on Abu Dhabi to participate at the MECOM summit. More than 50 representatives from international telecoms solutions providers such as Alcatel Lucent, Ericsson, Tektronix and Motorola will debate the issues affecting a fast growing market.

In addition, a debate on the liberalisation of the Middle East telecommunications sector will take place at the 'Connect: Strategic Telecoms Summit' running alongside MECOM. The Summit will also discuss the latest trends shaping the industry, prospects for future market growth, investment opportunities and the expectations for regional uptake of 3G and WiMax.

"The telecoms market in the Middle East has some of the highest growth rates in the world and with liberalisation spreading throughout the region, the environment is ripe for further investment, innovation, and higher usage rates," said David Hirst, Director of MECOM 2008, organised by IIR Middle East.

Now in its second year, MECOM is officially supported by the telecommunications regulatory authority of the UAE and Dubai Internet City. ICT industry partner for the event is Dubai Internet City. Platinum sponsors are Etisalat, the UAE Information and Communication Technology Fund and du. Gold sponsors are Ericsson, Blackberry, EMS and the Abu Dhabi Media Company.

Meanwhile, over 5,000 industry leaders and stakeholders from across Africa and other nations of Asia, Middle East, Europe and the Americas are due in Abuja for the Africa Information Technology Exhibition, (AFRITEX), to be hosted by Nigeria. It will hold from May 28 to 30.

The delegates and some 200 exhibitors of ICT products are taking advantage of the exhibition to learn, network and showcase the best in ICT in Abuja.

The programme, to be opened by President Umaru Musa Yar'Adua, is being managed by the National Information Technology Development Agency (NITDA) and DasMedia.

In a statement yesterday, coordinator of the exhibition, Mr. Sola Oworu, stressed that the programme was planned to provide a common platform for stakeholders in the industry across Africa and beyond to showcase their products and services.

He added: "AFRITEX 2008 is intended to create a prestigious international forum for providers of ICT solutions as well as consumers to meet, showcase the latest technologies and innovations in the latest technologies and to discuss best practices in the ICT world as they impact on the economies of Africa. The theme of this year's AFRITEX is 'Harnessing the opportunities in Africa ICT environment.'"

sammyjay77

May 26th, 2008, 09:47 PM

Nigerian Student Fabricates Satellite Rocket Launcher, Digital Antenna

A Mechanical Engineering Student of the Federal Polytechnic, Bauchi, Mr. Musa Zubairu, has fabricated a satellite rocket launcher and a digital transmission antenna using locally fabricated materials.

The rocket which has the capacity to cover 372 km in less 110 seconds, is said to have gone through static testing at the polytechnic.

Mr. Zubairu, 30, said on Sunday in Bauchi that the electro-wave aeronautic and digital transmission antenna, he fabricated, could be used for both military and domestic operations.

"Unlike the conventional space antenna, the new device is designed to operate on earth surface, using electrical wave and transmit signals to a classified destination," he said.

"The device is specially constructed to perform multi-sectoral purposes such as auronatics, geodesy, geo-dynamics, agro-metrological survey and broadcast transmission.

"It is also designed to enhance security surveillance" he said.

According to him, the fabricated antenna could also be used for soil analysis, climatology and for monitoring earth movement to detect quakes, flooding, storm and natural calamities.

The young innovator said that the device was fitted with navigational device, which could help in establishing the location of individuals, mineral deposits and missing persons as well as guide conflict management and rescue missions.

"The antenna relies on earth rotation in relation to time in identifying the location of missing persons, air crafts and mineral deposits.

"The device can also be useful in protecting Internet facilities and electronic mails from piracy," he said.

Zubairu, however, attributed the shortage of funds to his inability to perfect the projects and urged government and non-governmental organisations to give him a helping hand to facilitate the launching of the project for the benefit of mankind.

"I am financially constrained to complete the project, but I am soliciting for support from government and non-governmental bodies so that my dream of launching

Nigeria on the global technological scene can be realised," he said.

Mr. Zubairu also called for adequate funding of the education sector in order to stimulate more research and innovations as part of measures to facilitate the growth of science and technical education in the country.

He urged government to encourage students undertaking various research studies in the nation's higher institutions learning so as to achieve the dream of making Nigeria one of the top 20 economies in the world by 2020.

He said that improved funding of research works and provision of laboratory equipment would stimulate teaching, enhance academic excellence and promote competition among students.

"Adequate funding of research studies will facilitate the nation's drive towards sustainable economic and technical development," Zubairu said.

iluvnaija

May 28th, 2008, 12:52 PM

Nigeria oil state in $12 bln LNG deal with Centrica
Wed 28 May 2008, 5:46 GMT
[-] Text [+]

LAGOS (Reuters) - Nigeria's oil-producing state of Akwa Ibom has signed a $12 billion deal with British gas and power firm Centrica Plc to build a new liquefied natural gas (LNG) plant, a top government official said.

Governor Godswill Akpabio said the plant will be built on Tom Island in Mbo district of southeastern Akwa Ibom state, Nigeria's official news agency reported on Tuesday.

Akpabio, who spoke with reporters in the state capital Uyo late on Monday, did not give details of the deal or the planned capacity of the proposed LNG plant.

"We are in partnership with an international organisation called Centrica ... to make our LNG dream come true," Akpabio said, adding that the project was a "wonderful investment".

Centrica said in November that it had signed a deal to look at developing a Nigerian LNG venture alongside Norway's StatoilHydro.

Centrica said then the memorandum of understanding would see the firm and StatoilHydro each taking a 37.5 percent interest in the consortium, with infrastructure company Consolidated Contractors holding 25 percent.

It said the feasibility study was expected to cost about $10 million and would include analysis of potential feed gas and LNG plant locations.

Nigeria has the world's seventh-largest gas reserves at 180 trillion cubic feet, but has been unable to develop its gas industry to anywhere near full potential because of a lack of funds and regulation.

At present, Nigeria exports about 3 billion cubic feet (bcf) per day, flares about 2.5 bcf due to lack of facilities to use it, and supplies only 0.5 bcf to the domestic power sector.

The government approved a blueprint in February to develop the sector by building new infrastructure that would allow gas to be used for power generation and industry rather than being burnt off.

Besides the Centrica deal, Western multinationals have proposed building two new liquefied natural gas export plants in Nigeria, each worth at least $10 billion investment, but neither project has been given the final go-ahead

Nixoderm

May 28th, 2008, 11:59 PM

Transcorp Signs $5bn Deal with Hilton
By Efem Nkanga, 05.28.2008

As the Transnational Corporation of Nigeria Plc, (Transcorp), owners of 51% stake in Nigerian Telecommunications commission, Nitel seeks for a way of putting the crisis in Nitel under control, it’s ability in the hospitality segment seems to be yielding results as it has succeeded in attracting foreign investment by signing a US$5 billion strategic partnership deal with Hilton International Hotels group.
The deal which according to a statement was signed in Lagos over the weekend will involve the development of ten new hotels in Africa over the next 5 years and demonstrates that Transcorp is focused on developing other business lines apart from telecommunications.
Transcorp which has been battling one Nitel crisis after another recently restated its commitment to bringing the Nitel back to profitability despite the crisis rocking Nitel and its mobile subsidiary Mtel. Nitel sources had stated that though Transcorp felt disappointed with the financial irregularities discovered in NITEL recently; it was working out modalities to ensure the loopholes are blocked and that such occurrences do not repeat itself in the future.
The Hilton hotel chain is owned by the Blackstone group, the largest quoted private equity firm on the New York Stock Exchange with over $300 billion of managed funds. Transcorp which has a thriving hotel in Abuja which is the most successful within the Hilton chain in the Africa/Middle East region will be dramatically expanded to include a world class convention center, office building and a Conrad Hilton apartment building.
Andre Herrenschmidt, General Manager of Transcorp Hilton, Abuja, in the statement commented that “The Hilton’s partnership with the new leadership of Transcorp is extremely rewarding and professional. We see a bright new future and tremendous success for Hilton across Africa.”
Mr. Tom Iseghohi, Transcorp’s Group Managing Director and Chief Executive Officer, Mr. Tom Iseghohi had remarked that Transcorp’s focus was to utilize its global credibility to develop world class partnerships that will propel the Nigerian economy to what it ought to be.

He stated that the partnership with the Hilton is just the beginning of several new alliances that it was working on to enable further creation of jobs thereby enhancing the development of the economy.
It will be recalled that Transcorp had a fortnight ago, alleged that its team ofaccountants which had been examining financial records of NITEL, discovered what it referred to as a major fraud. The team, according to Transcorp, had identified a huge leak in the billing system of NITEL through which revenue generation was unaccounted for.As a result of this, Transcorp threatened to suspendfurther investments in NITEL until corrective stepswere taken to block leakages in the financial systemof the first national telephone network operator.

Matthias Offodile

May 29th, 2008, 12:25 AM

Transcorp Signs $5bn Deal with Hilton

Really I am fed up with this kind of bullshit news, you can read here a billion there are billion but no concrete action follows, if all these billion enter Nigeria it would have a larger inflow of money than Hong Kong and Singapore combined.

Nigerian press should learn to differ between millions and billions first....and then come back and publish articles. This is not investigative journalims but just worse than the British yellow press.

They are writing lies and pure wishful thinking!

Matthias Offodile

May 29th, 2008, 12:28 AM

Nigeria's Foreign Currency Reserves Rise 5.5% to $62 Billion

for 140 million people and Nigeria´s needs still toooo low. it should rise to $400 Billion!

paddylo

May 29th, 2008, 11:32 AM

yes matthias but its still the largest foriegn reserve in africa. . .so give credit where due. . .larger than egypt,south africa and israel i believe

iluvnaija

May 29th, 2008, 12:31 PM

matthias...pls calm down...we all appreciate ur enthusiasm for the growth of nigeria but i can assure you tht even if most of this step might seem slow or unsatisfactory to you we are getting there.

iluvnaija

May 29th, 2008, 12:32 PM

Lagos to Build 40,000 Houses Yearly
05.29.2008

The Lagos State Government yesterday said that it would build 40,000 houses yearly to meet the housing needs of the people.
Mr Abiodun Oluwaluyi, a director in the state's Ministry of Housing, said this while speaking at an international housing conference organised by the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
Speaking on the topic ``Affordable Housing: Masses' Hope'', Oluwaluyi said that government would invest N80 billion in the project at an average of N2 million per house.
He said that government had evolved three strategies for the implementation of the programme.
These, according to him, include public-private partnership (PPP), contract as well as direct labour.
He said that the PPP initiative was for the construction of houses in urban centres in the state.
``The strategy involves the provision of land by the government to private developers to build housing estates for sale to the public.
``The government tries to reduce the cost of such houses by granting rebate to the developers on the cost of land,'' he said.
Speaking on the occasion, Mr Emeka Onuorah, the chairman of Lagos State chapter of NIESV, observed that expectations of Nigerians towards housing delivery had never been met by any government.
He said that was in spite of the fact that housing had been in the agenda of successive governments since independence.
Onuorah laid the blame on the Land Use Decree of 1978 which, he said, was structurally defective.
``As estate surveyors and valuers, we know that if the sub-structure of a building is faulty, then the overlying super-structure must be of doubtful structural integrity," he said.

iluvnaija

May 29th, 2008, 12:40 PM

Additional Central Business Districts Underway
05.23.2008

Lagos

Lagos State government has embarked on creation and development of two more Central Business Districts(CBDs) in Mainland and Apapa local government areas of the state.
This disclosure was made by Special Adviser to the Governor on Works and Infrastructure, Engineer Ganiyu Johnson, during a chat with the press recently.
According to Johnson, the state government has already commenced massive road construction works in the CBDs, where 33 roads and six pedestrian bridges have been identified for construction.
The first phase involves, reconstruction of Murtala Muhammed Way from Yaba to Iddo, which is well above 40 per cent completed stage, while the phase II part of the project involves Herbert Macaulay Way, Aje Street, Commercial Street and Old Yaba Road.
In Apapa Central Business District, the Lagos State Government has recognised 11 Strategic Roads for re-development and this is to be executed in four phases.
The first two phases are Aerodrome Road, Calcutta Crescent, Duala Road and Kofo Abayomi Street, which has sincel commenced.
Johnson said Phase III of the Lagos Island CBD awarded by Asiwaju Bola Ahmed Tinubu's administration is at 85per cent completion stage, and it involves extension of Brook Street, Adeniji Adele Outer Ring Road, Extension of Odulami Street, and Extension of Ereko-Martins Street.

adebayoa

May 29th, 2008, 01:25 PM

Lagos to Build 40,000 Houses YearlyThis is good news for the homeless and ordinary Lagosians

pappy

May 29th, 2008, 08:10 PM

popa1980

May 29th, 2008, 09:56 PM

popa1980

May 29th, 2008, 09:58 PM

Thats from the BBC btw, nice to see he is being honest, that makes me trust him more. Show how far Nigeria is from becoming an economic superhouse. I wouldnt be surprised if Angola's economy becomes the 2nd biggest in SS Africa in 10 years.

Carver02

May 29th, 2008, 10:34 PM

Nigeria power shortage to persist
Nigeria will not be able to generate enough electricity for its population until at least 2015, President Umaru Yar'Adua has said.

Speaking live on television, the president answered critics who say he has been slow to address the problem.

Nigeria is the eighth largest exporter of oil but cannot generate enough electricity for its 140 million population.

President Yar'Adua promised to act swiftly on power before he was elected.The story is here: http://news.bbc.co.uk/2/hi/in_depth/7426593.stm

I hope he said a lot more about power than that. So much of Nigeria's power problem is not lack of equipment it's the lack of operable equipment and distribution. These are problems that would take less than 1 year to fix if the political will and proper leadership existed.

That said, Nigeria DOES need to install more generating equipment, and that will take time.

pappy

May 30th, 2008, 12:10 AM

Tbite

May 30th, 2008, 07:22 AM

ufookoro

May 30th, 2008, 09:17 AM

Nigeria: Coy Commits U.S.$1Billion to Transform Zuma Rock

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Leadership (Abuja)

29 May 2008
Posted to the web 29 May 2008

Pamela Sombo

The contractors handling the conversion of Zuma Rock into a tourist haven by equipping it with world-class facilities have disclosed that the sum of $1 billion has been set aside for the commencement of the first phase of the construction work.

Towards this, the company has solicited the support of the Nigerian Tourism Development Corporation (NTDC) towards making the project a befitting tourist attraction in the world.

The managing director of the company, Texas Pacific limited, a subsidiary of Coastline Group, Mr. Tom Patterson, made this known when a visiting delegation of the company paid a working visit to the corporation to solicit support and cooperation towards making the project a befitting tourist haven.

He disclosed that the company is set to build a resource centre on the rock which will cost over $1 billion with the aim of constructing classical restaurants, retreat and business suites on the rock.

The managing director, who further said the rock has been zoomed with a satellite, revealed that this has enabled them to understand fully all that is required and also enabled them know the problems involved.

He however said the dream of turning the rock into an attraction for tourists from all over the world to visit is very possible and towards achieving this, the company is going to construct a Disney kind of amusement park, water park, amphi theatre and an African village. And all these will have the diverse Nigerian cultures showcased in them.

This, he continued, will make the place have the African touch, so that tourists coming from other parts of the world will have a feel of other cultures instead of leaving their homes to come and see the same things they left behind.

He pointed out that tourism is the first in terms of employment revenue generation in the whole world and the project will empower a lot of Nigerians and even other people from other parts of the world.

"Abuja has the opportunity to reach out and help both children and adults and still reach out to the whole world. This is an opportunity for Nigerians to rise to the top and be the strongest country in revenue generation," he revealed.

Tourism, he reaffirms, outshines oil and the determination of the present administration to make tourism a priority is very good for the economic development of a country as tourism changes a country.

In the remarks, the director-general of the NTDC, Otunba Olusegun Runsewe, disclosed that the corporation will partner and work with them to see that the project was achieved adding that Nigeria was endowed and the time was now for its potentials to be felt.

Relevant Links

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Construction
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Travel and Tourism

According to him, Nigeria offered a wide variety of tourist attractions such as rivers and ocean beaches that were ideal for swimming and other water sports, unique wildlife, vast unspoiled nature ranging from tropical forest, waterfalls, some new rapidly growing cities and climatic conditions in some parts were particularly conducive to holidaying.

The DG who reiterated that categorically that 'oil is good but tourism is better" expressed optimism that by 2018, Nigeria tourism will become the preferred destination in Africa.

According to him, tourism was the highest employer of labour today in many countries and NTDC was set to bring people to Nigeria to boost its economy through tourism. It was for this cause that the NTDC would support this project towards ensuring that Nigeria tourism became the preferred destination in the world, he stated.

ufookoro

May 30th, 2008, 09:32 AM

Thats a Great Point. I fully subscribe to that.:banana:

Time and Time Nigerians, I being one of them have always subscribed to wanting immediate results. It might help if we looked at the processes involved in acquiring results. It has taken Nigeria more than 50 years to damage the economy, now we want to start to see reeults in a year. I for one totally believe the president when he says he want to get the modalities in place before he declares an emergency. Presidents have come and gone spending billions in the power sector believing that money alone was the problem. It was more than that in my honest opinion.

(1) No planning to begin with
(2) Corruption by officials and Constructions Companies
(3) Insincerrity by the Ministers always declaring un-realistic power generation targets.

All these amd more adversely affected outcome of any drive to achieve in Nigeria. I am not one for fearing if Angloa surpasses Nigeria to become the 2nd Super power in SS Africa, but hope to bet that we have more human and mineral resources to become number 1 should we comit to the drive be a reborn nation of industrialist.

My opinion :):):)

Tbite

May 30th, 2008, 10:04 AM

I live by one Philosophy in life. "To see the outcome of things, and find a way to overcome it if the outcome isn't good".

Simple but this holds some wisdom.

Now realistically speaking any economist will tell you that things can swing either way, which is why I don't take this seriously nor do I completely dismiss it.

Take the Nigerian Power Sector problem. I honestly don't believe that it is a problem. The Government has simply failed to invest in the areas necessary that can guarantee results, using the effective energy generating methods in this particular country.

The Solution is the Problem. We do need more investments, but we need it in the right areas.

At this particular point in time, Nigeria has Energy woes, because the facilities being used are substandard, the Hydro-Electric dams are reliant on the right weather, the backup which is Gas, is not being fed into the plants and not enough is being produced to begin with. The turbines are in bad states, the Gas pipelines are in a poor state, and you often have blockages, they are also subjected to vandalism etc, The transmitters in households are ancient, and in general what we have is production at the highest capacity that it could possibly be at given these hindrances.

Now I highly doubt that the preceding Government, invested in these areas to achieve what is needed in the national grid. They proposed new plants, but these are still in their infancy.

This isn't a dilemma, its just corruption.

Now Yar'Adua can give a reasonable date for Nigeria to be producing enough energy to meet its demand, but if output isn't increasing with the investments, then you cannot make an excuse, something is definitely wrong.

Even with lack of planning. Billions of dollars of investments will not see power output decrease.

adebayoa

May 30th, 2008, 10:05 AM

Spot on ufookoro. Nigerians have always wanted miracles and Baba and his compatriots have been experts in lieing to Nigerians. Give Yar'Adua a chance. If things do not improve in the next 12 months then we can all begin to worry.

sammyjay77

May 30th, 2008, 05:35 PM

Give Yar a Dua a chance

Nigerians are so used to the attitude of immediate alacrity which has been instilled in us over the years by the military. Obasanjo being an ex-military man didn't help matters and now somebody is trying to go about it the right way and people are crying foul. Even if a state of emergency is declared in the power sector a year ago, it will still take years to fix the issue because you have to plan,design, cost and execute which will definitely take a long long time, except if you just want to cost and execute and at the end of the day you will find yourself back on the drawing board after wasting time and resources.

This man Yar' a dua, I kind of believe in him. He is a breath of fresh air.

I support him on the issue of not embarking on new projects where older ones are lying down abandoned. Governance should be a continuous exercise irrespective of your political platform. I support his institutional reforms which are being carried out in the background. Those reforms will lay a strong foundation not only for his seven point agenda but also for the future of Nigerians and future Governments.

On Yar, a dua's Rule of Law, advanced Governments lay their foundation in the roots of the rule of law. No rule of law, no sanity in the polity! Period.

This man should be given time to fix the damage that has been done to Nigeria over these years. Of course a term in office will never be enough.

Yar' a dua should hasten though because Nigerians are always in a hurry to see things work out either way. Good Or Bad. I prefer to wait for the good one though.

sammyjay77

May 30th, 2008, 07:52 PM

Stellar Nigerian banking growth brings high risks

LAGOS, May 30 (Reuters) - Nigerian banks' ability to manage risk may lag their explosive growth, souring investors' buy-in on the back of record oil prices, an expanding middle class and corporate lending appetite, analysts say.

Nigerian banks were among the strongest performing stocks in the world last year, even as a global credit crisis took its toll elsewhere, attracting interest from private equity and hedge fund investors from Europe, Asia and the United States.

The economy in the world's eighth biggest oil producer is growing at its fastest rate for decades, global oil prices look set to continue to rally and Nigeria's government has committed to reforms which will see a growing role for the private sector.

All of this in a country of up to 140 million people, just 15 million of whom are thought to hold bank accounts, meaning huge potential growth in retail banking.

"In the last six months the growth in earnings momentum at the banks has just been stratospheric," said Fola Fagbule, a Nigerian research analyst with stockbroker Afrinvest.

"We are seeing significant growth in loan books ... The average bank I look at has doubled its loan book from the last time it reported an audited account," he told Reuters.

But there are fears that they may be growing too fast.

A wave of consolidation has seen the number of banks in Africa's most populous nation slashed from 89 to 24 in the past few years, leaving the survivors competing fiercely for millions of consumer clients as well as for large corporate customers.

"We are concerned that banks may be tempted to expand into retail banking before they are able to adequately manage the risks," JP Morgan analyst Andrew Cuffe said in a report this month, initiating coverage of the Nigerian sector.

MANAGING THE RISK

Most banks have been scaling up, tapping international and local markets to raise more than $10 billion in capital last year alone, enabling them to increase their capacity to lend.

Eight banks, including Zenith Bank <ZETH.LG> and Oceanic Bank <OCBK.LG>, have posted 9-month or quarterly earnings increases of more than 100 percent since the start of the year.

"We're beginning to see banks put a lot of their capital at more risk. They have no problem expanding their loan books, the challenge is maintaining the quality," Fagbule said.

Afrinvest estimates that 80 percent of Nigeria's wealth is in the hands of just 20 percent of the population, meaning a potential market of up to 28 million banking clients.

But while many of them may be potential depositors, not all will be rich enough to make them profitable to lend to.

The lack of a national identity system or a fully functioning credit bureau in Nigeria, as well as the banks' limited experience with consumer finance products such as mortgages, all means extra risk.

"Following extremely strong rates of growth in advances, and with pressure on banks to deploy capital raised over the past year, we believe the risk of a sharp increase in non-performing loans has increased," JP Morgan's Cuffe said.

Even compared to other parts of West Africa, Nigeria feels woefully underbanked. Cash machines are a recent arrival and charges for simple transactions so high that many Nigerians prefer to stash wads of cash under their beds.

While some banks are doubling their consumer loan books every quarter, analysts say they are riding with a strong tailwind in Nigeria, a country flush with record oil revenues and expecting economic growth of at least 7 percent this year.

ROLLERCOASTER RIDE

With Nigeria determined to turn itself into one of the world's leading economies by 2020, involving huge infrastructure projects partly financed by the private sector, analysts agree that the banking industry remains a compelling story.

Russian brokerage Renaissance Capital launched two new financial stock indexes this month to capture growing interest in the sector, while JP Morgan Asset Management identified Nigeria as a leading frontier market for part of its new Africa equity fund, which it hopes could reach $250 million.

But there is less consensus on whether now is the time to buy Nigerian banks after a sharp share price rally last year.

Fears that the banks' meteoric rise could turn into a bubble have also been heightened by reports that some are engaged in high-risk margin lending, loaning money to other institutions or individuals for stock market trading.

Some analysts, such as JP Morgan's Cuffe, argue their shares have run well ahead of fundamentals and do not take into account the operational and macro-economic risks to the businesses.

Any external shock, such as a drop in world oil prices or serious political instability, could leave them vulnerable.

"We believe the sector is expensive on both an absolute basis and relative to emerging market peers ... Given a price correction, we would look to enter," Cuffe said.

Others, such as Afrinvest's Fagbule, point out that last year's stock market exuberance has waned and that banks are becoming more profitable than ever as they increase lending to the country's top companies and their employees.

"For any bank in Nigeria now that has a handle on risk management, they are going to do phenomenally well," he said.

"... As long as those loans don't go bad." ** For a factbox on Nigerian banks, click on [nL29286221] (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/ ) (Editing by Louise Ireland)

sammyjay77

May 30th, 2008, 08:06 PM

FACTBOX-Nigeria's fast-expanding banking sector

May 30 (Reuters) - Analysts question whether all Nigerian banks will be able to manage risks amid explosive growth on the back of high oil prices, an expanding middle class and corporate lending appetite.

For an ANALYSIS story -- Stellar Nigerian banking growth brings high risks -- double click on [nID:L29322734]

Here are some details on 15 of Nigeria's leading banks. Please note financial years vary.

ACCESS BANK ACCE.LG

One of Nigeria's fasting growing banks, with more than 80 branches around the country. Began operations in 1989. Announced in May it had bought stakes in Banque Privee du Congo, Rwanda's Bancor Bank and Omnifinance Bank of Ivory Coast.

Posted profit after tax of 8,994 million naira for the nine months to end-December, 2007, up 177 percent on previous year.

AFRIBANK AFRB.LG

Commercial and retail bank with more than 250 branches. Began operations in 1960 and was once one of top ten in Nigeria by assets. It is seen as a potential takeover target.

Posted profit after tax of 7,511 million naira for the nine months to Dec. 31, 2007, up 207 percent on previous year.

DIAMOND BANK DIAM.LG

Focused on commercial banking since starting operations in 1991, it is seeking to expand its retail business from a current 132 branches in effort to improve margins.

Posted profit after tax of 9,573 million naira for the nine months to Jan. 31, 2008, up 107 percent on previous year.

FCMB FCMB.LG

Pioneer investment bank which started operations in 1983 serving corporate clients, it opened its doors to retail customers in 2001. Continues to generate fees as advisor on capital raisings but seeking to expand in retail sector.

Posted profit after tax of 8,995 million naira for the nine months to Jan. 31, 2008, up 153 percent on previous year.

FIDELITY BANK FUMB.LG

Started as a merchant bank in 1988, converting to commercial banking just over a decade later and becoming a universal bank in 2001. Plans to expand in oil and gas financing and push ahead with significant retail branch expansion.

Posted profit after tax of 9,344 million naira for the nine months to March 31, 2008, more than triple the previous year.

FIRST BANK FBNP.LG

Nigeria's oldest bank, incorporated in 1894 with a head office in the United Kingdom, it remains the country's most profitable with more than 400 branches and ATMs. Seen as potential market leader in retail lending.

Posted profit after tax of 25,922 million naira for the nine months to Dec. 31, 2007, up 75 percent on previous year.

GUARANTY TRUST BANK GTB.LG

Focused on retail and corporate banking, it began operations in 1991. Quick to introduce mobile, telephone and internet banking in 2002 it has been aggressively rolling out new branches. Has subsidiaries in Gambia, Sierra Leone and Ghana.

Posted profit after tax of 11,808 million naira for the nine months to Nov. 30, 2007, up 57 percent on previous year.

IBTC CHARTERED BANK IBTC.LG

IBTC began operations in investment banking and asset management in 1989 before merging in 2005 with Chartered Bank and Regent Bank, bringing retail and commercial capabilities.

South Africa's Standard Bank (SBKJ.J: Quote, Profile, Research) bought control of IBTC last August. The bank has handled some of Nigeria's largest equity capital raisings.

Posted profit after tax of 4,509 million naira for its half-year to Sept. 30, 2007, up 38 percent on previous year.

INTERCONTINENTAL BANK INBK.LG

A pure merchant bank when it began operations in 1989, it has become a major commercial player in the oil and gas, and telecoms sectors. It is also expanding its retail business, aiming for close to 300 branches.

Ranked among the 1,000 largest banks in the world, it is in technical partnership with France's BNP Paribas (BNPP.PA: Quote, Profile, Research) in the management of Nigeria's foreign reserves.

Posted profit after tax of 11,317 million naira for its half-year to Aug. 31, 2007, up 73 percent on previous year.

OCEANIC BANK OCBK.LG

Focused on retail banking, it began business in 1990 and has expanded rapidly with a broad range of consumer products. Commercial lending primarily to real economy, manufacturing and mining firms, as well as to federal and state governments.

Posted profit after tax of 8,847 million naira for the three months to Dec. 31, 2007, up 153 percent on previous year.

BANK PHB PLAT.LG

Formed out of a merger in 2005 between Platinum Bank and Habib Nigeria Bank, it is a commercial bank heavily involved in public sector finance and has been aggressively growing its retail client base.

Posted profit after tax of 14,846 million naira for the nine months to March 31, 2008, up 229 percent on previous year.

SKYE BANK SKYE.LG

Created by the merger of five banks in 2006, it is full service bank offering real estate development finance, public sector banking and has been developing corporate banking in the oil and gas, and telecoms sectors.

Posted profit after tax of 7,663 million naira for second quarter to March 31, 2008, more than four times previous year.

UBA UBA.LG

Originally founded in 1961, United Bank for Africa merged with Standard Trust Bank in 2005 and aims to lead growth in consumer finance, develop private/public sector financing and expand across Africa.

Posted profit after tax of 18,420 million naira for its half year to March 31, 2008, up 71 percent on previous year.

UNION BANK UBNP.LG

Established in 1917, previously owned by Barclays (BARC.L: Quote, Profile, Research), it has a broad, loyal customer base but is seen as slow to respond to market changes. Global banks have expressed interest in taking a strategic stake.

Posted profit after tax of 13,500 million naira for its half year to Sept. 30, 2007, up 60 percent on previous year.

ZENITH BANK ZETH.LG

Focused on low-cost commercial, public sector and retail deposits and lending to low-risk large corporates, it has built a reputation for high asset quality and is pushing ahead with a rapid roll-out of new branches across the country.

Posted profit after tax of 33,323 million naira for its 9 months to March 31, 2008, up 137 percent on previous year.

Sources: Bank websites, Nigerian Stock Exchange, Afrinvest (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/) (Reporting by Nick Tattersall; Editing by Louise Ireland)

Nixoderm

May 30th, 2008, 10:00 PM

Matthias Offodile

May 30th, 2008, 10:12 PM

yes matthias but its still the largest foriegn reserve in africa. . .so give credit where due. . .larger than egypt,south africa and israel i believe

Yes, but look at the infrastructure in South Africa and compare it to that of Naija, you start crying

Israel is too small to compare with Nigeria...but has excellent infrastructure and the highest standard of living outside the smaller Gulf countries in the Middle East.

Egypt has better infrastruture than Nigeria.

let´s be honest even if the government spend all of the $62 billion in foreign exchange resserves tomorrow, it would still be a drop into the ocean given the magnitude of deficiencies prevalent in Nigeria.

Nigeria should be pumping close to 4 million barrels of oil a day but those horrid bandits blow up pipelines and kidnap foreigners on a daily or weekly basis.

Nigeria urgently needs the cash at a time when the price of oil hovers around 130 dollars a barrel!! This is once in a lifetime opportunity and easy money that could help to build infrastructure.

Too many chances go to the doldrums again.

In order to bring Nigeria to the level of lets say Malaysia we need to invest more than $1 trillion... take the former Eastern Germany, Western Germany invested close to $1 trillion in the reconstruction of the former DDR...and compare DDR´s size to that of Nigeria.

sammyjay77

May 31st, 2008, 12:00 AM

Lagos, City Of London To Partner On Financial Growth

The city of London is to partner with the Lagos State Government to make Lagos one of the Financial Centres of the world, the Lord Mayor of London , Mr. Alderman David Lewis, said in Lagos yesterday.

Lewis, who spoke while on a courtesy visit to the Lagos State Governor, Mr. Babatunde Fashola (SAN), also said the City of London would partner with Lagos in the area of infrastructure renewal, security and education.

Leading a five member-delegation, including Mr. Michael Bear, Mr. Bob Dewar, the City Sheriff, Mr. John Baker, the Chief Commoner and Mr. James North, the Senior Programme Manager, the Mayor said the time had come for the two cities to restore the historical relationship between them, a relationship he described as long-standing.

The Lord Mayor who said he was visiting Nigeria for the first time, noted that Lagos and London share many similarities, especially in the area of Transportation, adding that London would like to help in the area of training personnel from Lagos in town planning as a way of solving some of the problems of the growing city.

Giving the reason for his visit to Nigeria, Lewis who said he represents all the financial economic sectors in all the United Kingdom , declared, “Your economy is doing well. You are going in the right direction and we will like to partner with Nigeria in the various challenges that you have such as infrastructure and power.”

The Lord Mayor, however, advised that for Nigeria to achieve her Vision 2020 goals, she must liberalize her market even as she is dealing with corruption and other social ills.

“You must change the perception that you create that people are being killed in the Niger Delta everyday and other such reports which go out everyday to the outside world,” the Mayor advised, pointing out that such reports create the impression of insecurity and scare potential investors.

He commended Fashola for the massive people-oriented programmes he has embarked on since inception of his administration adding, “We will like to work with you to grow Lagos into one of the financial centres of the world”.

Responding, Fashola said Lagos , the financial nerve centre of Nigeria , would want to grow like the City of London and New York , noting that Lagos already shares lots of similarities with the City of London .

“We have similarities and we try to keep our eyes on how you sort out your various problems”, the Governor said, adding that the State was eager to embrace some of the best practices of London in order to fast-track the development process.

Fashola, however, expressed the need for London to reconsider implementation of the regeneration issue, pointing out that that it would impact on more people when resource persons from London come to Lagos to train personnel instead of people being seconded for training in London .

“It will be better for your practitioners to come here, that way you will impact on more people”, the Governor said adding that even the trainers would make better impression when they do their training using local and concrete examples instead of depending on slides.

According to the Governor, the State Government is trying to expand the frontiers of the judicial process by reforming the magistracy and rebuilding the courts in order to increase the capacity to maintain law and order in the State.

Urging the Lord Mayor to be an Ambassador of Lagos and Nigeria , Fashola said, “This is why your visit is significant. You have seen things for yourself and we would like you to represent us to the investors by giving the true situation”.

Tbite

May 31st, 2008, 05:19 AM

Nigeria not vulnerable to food crisis

LAGOS, May 30 (Xinhua) -- The Food and Agriculture Organization (FAO) has listed 22 countries as most vulnerable to the global food crisis that has seen prices of food items rising, a report has said, according to the News Agency of Nigeria on Friday.

It is learnt that Nigeria was not one of the 22 most vulnerable countries, which include Eritrea, Burundi, Comoros, Tajikistan, Sierra Leone, Liberia, Zimbabwe, Ethiopia, Haiti, Zambia, the Central African Republic, and Mozambique.

The FAO report stated that high oil prices, growing demand, flawed trade policies, panic buying and speculation have sent food prices soaring worldwide.

FAO also listed Tanzania, Guinea-Bissau, Madagascar, Malawi, Cambodia, the Democratic People's Republic of Korea, Rwanda, Botswana, Niger, and Kenya among the 22 most vulnerable countries.

According to the report, recent food prices surge across the world has developed into a food crisis among some poor developing countries, especially in the above-mentioned most vulnerable nations.

Nixoderm

May 31st, 2008, 05:51 PM

^^ This is good news bacause...

pappy

May 31st, 2008, 05:57 PM

Lagos Set To Raise N75bn from Capital Market

In a bid to address the infrastructural challenges facing Lagos, the state government will soon retire the N15 billion bond raised by the past administration of Bola Tinubu and return to the capital market to raise a fresh N75 billion.
Governor Babatunde Raji Fashola disclosed this yesterday at the Commonwealth Business Council (CBC) African capital market road show held in Lagos.
Fashola said: “The state is set to drive commercial activities in the country, in order to place the country among the best 11 developed economies in the world as predicted by analysts.
“The question is not if we can lead the emerging African capital market. With dedication, will and good attitude, we will be the financial hub of the African continent. We have the population and proximity that any discerning investor consider before investing in a country.”
He added that because capital movement was not a matter of sentiment, the state government was putting legislation in place that would ensure an enabling environment for investors.
Fashola also said that the state government was ready to work with the private sector in order to address the infrastructural challenges of the state.
However, the governor said the private sector was not doing enough to assist the state government in growing the economy.
He said: “For example, the market capitalisation of the Nigerian Stock Exch-ange (NSE) is moving between N11 to N12 trillion but the real sector is not growing with the capitalisation. There is mass unemployment and infrastructural deficit. This is why we want to take advantage of the growth of the market to address our huge infrastructural deficit.
Fashola praised Pres-ident Umaru Yar’Adua for his stand on the rule of law adding that it was the only way by which Nigeria could build its economy, “as no sane investor will put his money in a lawless society.”
The Chairman of the occasion and founding chairman of Diamond Bank Plc, Mr. Pascal Dozie, praised African governments for implementing reforms geared towards transforming their economies.
Dozie said: “Following efforts of our governments, African economies are growing at the same pace as the world economy. It is also a fact that African capital markets are growing by as much as 200 per cent per annum and provides the highest in terms of return on investment.”
He added that the International Monetary Fund (IMF) and the World Bank’s predictions and forecast clearly showed that no African economy has the potential to grow like the Nigerian economy.

sammyjay77

June 1st, 2008, 09:52 AM

Yar’Adua’s one year: FIRS rakes in N2.2 trillion tax

The Federal Inland Revenue Service raked N2.2tn into the coffers of the Federal Government from tax in the first year of President Umaru Yar’Adua’s administration.

The collection, which spanned May 2007 to April 2008, showed that the FIRS collected N300bn in excess of the N1.9tn target.

Also, all taxable adults and companies are to be issued tax identity numbers, in a bid to boost tax collection, just as a Tax Appeal Tribunal will become operational before the end of the year.

Investigations by Sunday Punch showed that N249bn collected in February 2008, was the highest monthly receipt, while the N138bn collected in February May 2007 was the lowest

The N2.2tn exceeds the N1.9tn target set for it by the Office of Director of Budget.

The Board Secretary of the FIRS, Mr. Chris Onyegbule who confirmed these in an interview with our correspondents attributed the high performance in tax collection to increased productivity of FIRS staff and zero-tolerance for corruption.

Details of the tax receipts revealed that petroleum profits tax yielded N1.487 trillion, companies’ income tax stood at N351.3bn; Value Added Tax was N352.9bn.

Also, Education Tax yielded N42.7b just as tax revenue from consolidated sources contributed N20.4bn.

Corporate bodies with over N1bn tax came mostly from the oil and gas sectors, banking and telecommunication.

According to Onyegbule, the tax identity number, “will curb tax evasion and drastically reduce situations whereby some people go to other states to collect tax clearance certificates.

“It is going to be unique and compulsory like a national identity card. To open a bank account in Nigeria, you will need it and taxes that you have paid or failed to pay will be easily identified.”

On Yar’Adua’s desire for taxes to be harmonised, he said that was borne out of the need to review what is prevailing at the federal, state and local government levels.

He stressed that the FIRS did not control taxes and levies in other tiers of government.

Onyegbule said, “The National Assembly makes laws that are binding and the executive arm of government lays down policy directions which FIRS faithfully follows.

“To enable us control the prosecution mechanism against tax evaders, a new law, the FIRS Act, that will enable us set up a Tax Appeal Tribunal, is to take effect before the end of the year after all due processes have been undertaken.”

In a bid to improve tax administration and boost revenue in turn, the FIRS submitted about eight tax bills out of which four had had been passed into law.

They are Companies’ Income Tax (Amendment) Act 2007, VAT (Amendment) Act 2007, FIRS (Amendment) Act 2007 and the National Automotive Council (Amendment) Act 2007.

But others pending seek to amend the Petroleum Profits Tax, Personal Incomes Tax, Customs and Excise and Sugar Development Levy Acts.

sammyjay77

June 1st, 2008, 10:11 AM

Nigerians Laud President’s Performance on Media Chat

Prominent Nigerians yesterday praised President Umaru Musa Yar’Adua for coming out bold while explaining the programmes and policies of his administration during last Thursday’s media chat held to celebrate his one year anniversary in office.
Respondents like former Lagos State governor, Asiwaju Bola Tinubu, Mr. Olisa Agbakoba (SAN), President of the Nigerian Bar Association (NBA), Mallam Abba Dabo, former secretary to the Kano State governor, and Mallam Shehu Sani, Chairman of Northern Human Rights Groups commended Yar'Adua for articulating a comprehensive plan on power, rule of law, Niger Delta and political reforms.
But other respondents like Mr. Femi Falana, President, West African Bar Association, Dr. Biodun Adedipe, a World Bank Consultant expressed reservations on certain positions taken on issues by the President during the interview session aired on the Nigerian Television Authority (NTA).
Tinubu said Yar’Adua appeared calm and was able to convince Nigerians through the interview session that though they were right in being apprehensive over the power supply situation but that there is need for proper planning, execution and genuine determination to solve the problem.
“We didn't start having this electricity problem today. Electricity is not like a balley shoe that you walk into the shop to pick on the shelf. It takes a while to get there. If we have not wasted the last eight years, we would have gotten a better relief especially with the Integrated Power Projects (IPP) introducted which was frustrated by politics,” he said.
Yar’Adua, Tinubu said, has brought calmness, stabilised the polity and entrenched a reassuring environment to both Nigerians and international investors.
Agbakoba, who scored the President 100 per cent on his desire to institutionalise the way government is run in the country, said: “Yar’Adua is a man of sincerity. He is a man driven by the need to institutionalise government. He is a man who wants to be subservient to the rule of law. In this regard, I score him 100 per cent”
“He makes very keen analysis of issues and has great details on what the problems are. But his process to achieving this is taking too long. The government should be working while the analyses are going on.”
But added: “The President should know that the people of the country want goals. He can score goals if he gets things right in the area of power by looking at generation, transmission and distribution. He should look at the functions of the public sector as well as the private sectors of the economy.
“Right now, there is so much confusion in the sector as to who does what. But this can be sorted out within 24 hours. Take the issue of emergency in the power sector. From what we know, emergency is something that occurs suddenly and while it occurs, you seek answer to it.
“You do this by identifying the areas where we need laws to turn around the economy. He has to sit down with stakeholders and come out with practical solutions to the problems. And when people see enthusiasm on the part of government, they will naturally fall in. The President should be told that Nigerians need action and general improvement in every sector of the economy.”
Former secretary to the government of Kano State, Mallam Abbah Daboh, was full of praises for the President on his performance during the interview session.
He said: “I was impressed. We all came out impressed and elated that Nigeria’s problems are in the hands of a man who knows what the problems are and what to do to solve them.
“The President was very good in the interview. It showed him as a very serious man. He was very passionate about his country, Nigeria, and he is very aware of what should be done about Nigeria. He stressed the need for us, as a nation to sit down, plan and stick to procedure. That is the critical issue he raised in that interview and it will save Nigeria. The interview has completely redefined Yar’Adua. Those who did not know his direction, all their doubts should by now be dispelled.”
In his reaction, Chairman, Northern Civil Societies Coalition, Comrade Shehu Sani, said: "The media briefing was quite revealing in a way because he was able to address some of the rumours making the rounds about him, particularly his health condition. He also used the opportunity to clearly define his administration's policy direction.
“I urge that the briefing should be more frequent - say monthly so as to constantly let Nigerians into the affairs of the nation because silence brings about rumours and speculations.
“He failed however to explain the forward and backward management style of his administration whereby decisions are taken today and reversed tomorrow,” he said.
In his reaction, President of West Africa Bar Association, (WABA) Mr. Femi Falana, said: “I don’t want to say much. I am doing a letter to the President on his statement on my client, Mr. Henry Okah. I am sending him that letter and it will be made available to the press tomorrow (today) The President’s statement on Okah is prejudicial. Under the rule of law, you can not presume an accused person guilty unless the court says so.”
However, Managing Consultants, Biodun Adedipe and Associates, Dr. Biodun Adedipe said Yar’Adua’s explanation on the power sector was unacceptable to Nigerians.
Adedipe, who is also a World Bank consultant, advised the President not to consult stakeholders, as he plans to do, before declaring a state of emergency in the sector. He argued that resorting to consultations will further delay action on the sector, “Because the energy crisis has got to a point where only a drastic action could bring the desired change.
According to him, the problem in the energy sector is like a faulty aircraft, which demands a drastic decision of the pilot before it could land safely. He argued that it would be out of place to expect the pilot to consult with his cabin crew before taking the needed decision to save the passengers.

sammyjay77

June 1st, 2008, 10:15 AM

Insufficient Foreign Banks May Hamper Vision 20-20’

The Lord Mayor of the City of London, David Lewis has described the few number of foreign banks in Nigeria as likely obstacle to Vision 2020, an economic master plan initiated by the administration of former President Olusegun Obasanjo. He noted that foreigners in Nigeria own only three banks.
Comparing the scenario to what is available in the United Kingdom, Mayor Lewis said that more than 300 foreign banks exist alongside local banks thereby making the economy very vibrant and also a global financial hub.
To this end, the mayor advocated for free competition like what is obtainable in the United Kingdom stating: "London is the most internationally-focused global financial hub and is a source of funds, expertise and support for dynamic and fast-growing countries across the world. My team’s job is to make sure the existing links with Nigeria are strengthened."
He promised to help quicken the sturdy growth of Nigeria's financial sector since, according to him, the sector cannot be neglected if the country has to move forward.
The Mayor saw efficiency in the banking sector as a major pillar towards the achievement of vision 2020 and suggested that the country has to allow the influx of foreign banks.
"Nothing accelerates a country's growth faster than a financial sector operating to international best-practice and enabling the wider commercial world through funding and good advice. So, encouraging Nigeria along this road will eventually bring huge benefits to all 140 million of its citizens," he stated at a press briefing in Lagos.
Lewis noted that strong financial institutions have kept the United Kingdom away from recession like what is obtainable in the United States now.
He said that the UK financial services are a major source of employment and the greatest wealth generator in the Greater London, suggesting that Nigeria should emulate this.
The mayor who opened his visit by returning £150,000.00 allegedly appropriated by former governor of Plateau State, Joshua Dariye had earlier observed that Nigeria's biggest asset is its human resources and not oil and gas and that millions of Nigerian professionals are contributing to the economy of his country.
On Nigeria's image abroad, Lewis said an intensive campaign to change the perception by which Nigeria is viewed abroad should be considered expedient by the Federal Government.
"Nigeria needs to change the perception by which it is viewed especially about the security situation which is being distorted outside. The wrong perception, insecurity and poor infrastructure that discourages investors from setting up businesses in Nigeria must be changed," he said.
Lewis further advised on the need to educate the teeming population of the country.
"The biggest asset of this country lies in its human resources. They should be educated because this is the fastest possible way towards the attainment of Vision 20-20," he said.
The London mayor, who said the country's greatest challenge was corruption, urged the federal government to intensify efforts at fighting the phenomenon.
He however commended Nigeria's anti-graft war for yielding positive results.
Lewis said the UK would continue to assist Nigeria in fighting corruption, adding that the looted monies, which are still in custody of the British government, would be returned to the Federal Government unconditionally.

sammyjay77

June 1st, 2008, 10:20 AM

Restriction on Foreign Banks Justifiable, Says Akingbola

President of the Chartered Institute of Bankers of Nigeria, (CIBN), Mr. Erastus Akingbola has faulted the claim of the Lord Mayor of London, Davis Lewis that the Nigerian government is frustrating the emergence of more foreign-owned banks in the country.
Akingbola, who is also the Group Chief Executive, Intercontinental Bank Plc, said in a press conference in Lagos yesterday that it is uncharitable for anyone to accuse the Federal Government of stalling the take-off of more foreign banks in Nigeria.
The Lord Mayor had, on Friday, described the few number of foreign banks in Nigeria as likely obstacle to Vision 2020, an economic master plan initiated by the administration of former President Olusegun Obasanjo.
He had regretted that out of the existing 24 banks in Nigeria, only three of them could lay claim to foreign ownership, saying government needs to create a free competition like what is obtainable in the United Kingdom where about 300 foreign banks exist.
Akingbola, who dismissed the claim, said nobody has stopped any foreigner from floating a bank in Nigeria as long as he is not contravening government’s policy, which restricts the maximum shareholding of foreign interests in any existing Nigerian bank to 10 per cent.
“Foreign banks are free to come to Nigeria. They can come and start their own business afresh, nobody stops them,” he stated.
Akingbola, however, added that “Government policy that no foreign banks shall be allowed to own more than 10 per cent of our local banks as enunciated by the Governor of the Central Bank, Prof. Chukwuma Soludo is a policy in the right direction.
“Saying that insufficient foreign banks would hamper our growth is not right. Foreign banks will continue to do business with us and we have not said we don’t want them to come in. They are free to start their own 100 per cent or go into partnership with people, but I think what the CBN Governor was trying to do is to ensure that those banks that have just been reinvigorated, in terms of new capital, are not bought off.”
This, according to him, is because banking is very key to every economy.
The CIBN boss warned that allowing foreign banks to take over existing local ones might spell doom for the Nigerian economy.
“This is because if they decide to buy like 80 per cent of a Nigerian bank, they may buy it and decide that rather than grow it, such institution is left alone and allowed to whither. It could also be used as an arm of remitting money by their nationals.
You can buy up a competitor and then destroy its business to give you an edge. It’s part of competition,” the CIBN president said.

This makes sense. They should start from scratch!

sammyjay77

June 1st, 2008, 10:24 AM

Digital Mapping of Lagos Ready Soon –Fashola

An aerial digital mapping to cover the whole of Lagos and give details of every inch of property lying within the state would soon be concluded.
Lagos State Governor, Mr Babatunde Fashola (SAN), who disclosed this at the local wing of the Murtala Mohammed Airport, Ikeja, said the state has decided to deploy technology for the benefit of the people of Lagos.
Governor Fashola, who was briefed by the state Commissioner for Science and Technology, Dr Kadiri Hamzat, added that the mapping would be useful in areas like traffic, urban planning, security and property transaction.
He revealed that from what he saw at the inspection, contour levels can be determined from the relevant government offices and that government town planners can also design drainage channels, flood slabs and roads without necessarily visiting the area except to validate the findings.

Governor Fashola said digital mapping is so thorough that even people residing in particular houses in the premises and on the streets could be seen.
and that the state is keen on putting a value on every inch and centimetre of property in the state.
The Governor added that he was impressed with what he had seen and he was sure when the job is concluded the state would be better for it.
While showing the Governor some of the equipment installed for the work in the aeroplane where some of the taken photographs have been stored, Dr Hamzat said the plane moves around and takes pictures which are stored on a hard disk and can be copied directly.
He said the inclement rain weather has caused a stoppage of the digital mapping which is scheduled to resume in October.
He said already 46 percent of the project which is being carried out by a Canadian firm had been completed.

Brave Lagos, Bravo Fashola!!!

sammyjay77

June 2nd, 2008, 01:27 PM

Dangote Moves to Crash Cement Price

As part of a 28-month strategy aimed at increasing the volume of cement produced by Dangote Cement Limited locally and moving the country from an importer of the commodity to an exporter, the cement group has invested $1.85 billion in the construction of three new cement plants in Nigeria.

This new investment will, according to the company's projections, lead to a crash in the price of a bag of cement from the current N2000 to less than N1000 when it is completed.

In a related development, local cement producers have expressed worries that their investments may be jeopardised following moves by some companies to persuade the Federal Government to allow importation of bagged/branded 50 kg cement into the country.

Dangote's $1.85 billion investment outlay which was effected through a confirmed letter of credit routed through GTBank Plc to J.P. Morgan, New York, last Friday, to an engineering consortium led by the Chinese firm - Sunoma International Engineering - would see the total volume of cement produced by Dangote Cement rising to 26.5 million metric tones per annum by 2010.

Dangote Cement, from its plants at Obajana and Benue Cement Plc, currently produces 8 million metric tonnes per annum. The cement group, however, is planning to expand capacity from both plants to 9.5 million metric per annum by 2009.

Confirming the payment made by his company, the President of Dangote Group, Alhaji Aliko Dangote, said the $1.85 billion will be used for the expansion of the Obajana Cement plant in Kogi State to include a second train that will increase capacity to 12 million tonnes.

While new plants will be constructed at Ibese and Shagamu, both in Ogun State, with installed capacities of 5.5 million metric tonnes per annum, respectively.

He disclosed that with the 12 million metric tonnes to be produced at Obajana, 5.5 million metric tonnes each from Ibese and Shagamu and 3.5 million tonnes from Benue Cement, will bring the total volume produced by Dangote Cement locally to 26.5 million metric tonnes by 2010.

He said the aim of the cement group is to ensure the price of cement, which has peaked at N2,000 a bag in spite of the provisional licences awarded 13 firms by the Federal Government to import bulk cement early this year, to less than N1,000 per bag by the time the new plants start production in 2010.

Dangote indicated that the group's goal is to flood the market with the commodity and ensure that the price not only drops, but it absorbs the extra capacity produced by the new plants.

"Right now the price has risen contrary to expectations that importation of bulk cement will bring down the price. So, our target is to force down the price in the next 28 months, and export extra capacity to neighbouring countries," Dangote stated.

He further revealed that the contract for the construction of the new plants was signed last February during President Umaru Yar'Adua's state visit to China.

"The contract was awarded on a turnkey basis to Sunoma International which is an engineering firm that will oversee the construction of the new plants and came into effect upon opening of the confirmed letter of credit which was backed by cash.

"Dangote Cement put up $600 million of the contract sum, while $1.25 billion was borrowed to make up the balance. The L/C was opened by J.P. Morgan, New York," he explained.

Other members of the consortium include Loesche of Germany and Bedeschi, an Italian firm that will both be responsible for the manufacture and supply of the plants and equipment for the cement factories.

In compliance with the contract terms, the consortium, Dangote said was paid $1 billion in advance to commence work on the construction of the plants.

Dangote said: "The balance of $850 million will be disbursed as work progresses and the consortium meets the predetermined milestones specified under the contract."

Speaking further on the cement group's expansion strategy into Africa, Dangote said the $1.85 billion paid last Friday is just the first phase of the contract entered into with Sunoma International.

The second phase costing $1.3 billion will entail the construction of new plants in other African countries for which another letter of credit will be opened this month, he disclosed.

The countries to be covered by the expansion plan include Tanzania, the Democratic Republic of Congo, Senegal, Equitorial Guinea and Ethiopia.

A third phase will entail Dangote Cement setting up plants in North Africa in countries like Libya and Algeria.

Dangote is by far the largest producer of cement in Nigeria, a dominance he intends to consolidate locally and on the African continent by spreading his footprint across the region.

By the time the second and third phases of the expansion plan is accomplished in 2011, Dangote Cement will be producing 60 million metric tonnes per annum in Nigeria and other African countries.

Construction industry analysts explained that Aliko Dangote has his sights on conquering Africa where he is conscious of the fact that huge infrastructure spends in the continent buoyed by high regional growth estimated at 5.5 per cent per annum (World Bank estimate) will push up demand for cement.

Elucidating on why the price of cement has not dropped in spite of the licenses awarded to companies to import bulk cement for one year, in the first instance, an importer stated that the price cannot fall because freight charges have risen as a result of high oil prices.

"Rising oil prices have naturally been transferred to freight charges because shippers use low pour fuel oil (LPFO) for their vessels, and its price, like all petroleum products, has gone up.

"So the ex-cargo price of bulk cement has risen just like all other imports. The problem is that the licensees completely underestimated the impact high oil prices can have on the price of their commodities.

"They rushed headlong to import bulk cement, thinking that could depress the price of cement which was around N1,200 a bag in January this year.

"But by the time they went to import bulk cement, they discovered they could not sell at that price because freight charges had increased and are still rising."

Meanwhile, local manufacturers may be in for tougher times, with over $10 billion investment endangered, if Ministry of Commerce and Industry succeeds in persuading President Umaru Musa Yar'Adua to approve the importation of cement in 50kg branded bags.

THISDAY investigation revealed that some companies including Minaj, BUA Group, Lababibi and Regan and Madewell are among those pencilled down to bring in four million metric tones of cement in 50 kg branded bags.

But the Manufacturers Association of Nigeria (MAN) has said the move will hurt local investment in cement production and "is not in the best interest of the Nigerian economy".

THISDAY gathered that the move is designed to be a further intervention by government to relieve the supply pressure that has resulted in the hiked cement prices in the country.

In January 2008, President Umaru Musa Yar'Adua lifted the ban on the importation of bulk cement into the country.

Importation of bagged cement remained banned, and only companies with actual investments or ongoing investments were allowed to import bulk cement to supplement their production as well as encourage local production of the product.

The lifting of the ban, according to the government, was expected to bridge the deficit of 11.5 million tonnes in the supply of cement, which had been recurrent in the industry in the last few years, and crash the surging prices. But the reality in the market is beginning to cast doubts on government's effort.

The annual demand for cement is estimated at about 18 million metric tonnes.

Minister of Commerce and Industry, Chief Charles Ugwuh, had said: "Local operators can only supply between 6 and 6.5 million tons of cement leaving the deficit of 11.5 million tons. It was based on this that the President now wrote and gave approval and a guideline on what we should do and what the stakeholders and business group should do in this matter."

While maintaining that the decision of government was aimed at rejuvenating the cement industry, the minister also said the move would go a long way to alleviate the suffering of consumers who pay through their noses for the cement, stabilise price and supply of cement as well as encourage investors.

In March, the Federal Government granted 13 licensed companies an extension in the concession to import bulk cement in order to curtail the escalating prices.

Although the ministry of commerce and industry said importation of bagged cement remained banned, it planned to issue licences to some companies it referred to as bulk users in the construction industry to import cement in "jumbo bags".

The minister attributed the rise in demand for cement to increase in construction activities in Abuja and Lagos areas.

President of the MAN, Alhaji Bashir Borodo, who gave the association's position in a telephone interview with THISDAY yesterday, said the planned importation of 50 kg bagged cement will destroy huge investments that have gone into local production of cement.

"Frankly, we believe that if local cement manufacturers are given enough incentives they can produce enough cement to meet local needs at very affordable prices. So, we think this plan to import cement in 50 kg bags is retrogressive and not in the long term interest of the economy," Borodo said.

The MAN president explained that if a railway system is built to link Obajana to Abuja, it will drive the price of the product down by at least N600 in the Federal Capital Territory.

He said the other area where cement manufacturers require major incentives was power supply. If these incentives were provided, he added, the six local manufacturers of cement in the country will adequately meet local needs for the product.

Borodo warned that this move apart from threatening the over $10 billion investment that has gone into local cement manufacturing, could also lead to port congestion and a situation where ships filled with cement will jam the ports and cripple other sectors of the economy, like the "Cement Amanda" of the 1970s.

"Although the ministry consulted stakeholders about five months ago when it first muted the idea of lifting the ban on cement importation, but the agreement at the time was for only bulk cement to be allowed into the country. Unfortunately, they want to open everything up and allow everything in to destroy local effort," he said.

Matthias Offodile

June 7th, 2008, 09:22 PM

Bahrain firm signs Nigeria gas accord

Saturday 7th June 2008

LAGOS: Oil-and-gas-rich Nigeria has signed a deal with two foreign firms, including a Bahrain-based firm, to explore its huge gas resources and shore up its foreign earnings, the gas minister was quoted as saying yesterday.

"We want gas resources to develop our resources, our economy and power. Since there is a lot of gas resources, we need the appropriate approach to explore our gas resources," Olatunde Odusina said.

The memorandum of understanding was signed with an Indian consortium and Remington International Resources based in Bahrain.

Odusina said gas had the potential to replace oil as Nigeria's main foreign earnings if fully explored, stressing that the deal would enable the two companies to venture into the sector.

"As the world's seventh largest gas producer, Nigeria cannot, in all honesty, allow our gas resources to be left untapped," he said.

"So there is the need for us to wake up to the challenges posed by the abundance of gas resources in our vicinity," he added.

He said some $700 million was expected to be spent on the exploration in the north Delta region of the west African country.

Nigeria is the seventh world gas producer with about 187 trillion standard cubic feet (scf) of proven reserves, but flares off some 2.2 billion scf per day.

sammyjay77

June 9th, 2008, 07:13 PM

SBV, South African cash firm, brings $250m investment to Nigeria

SBV Services (Pty) Limited, a South African integrated cash management company owned by South Africa’s four largest banks (Absa, Nedbank, FirstRand and Standard Bank), is set to start operations in Nigeria.

The company will be formally launched today at a dinner scheduled to take place at the Regent Chinese Restaurant, Victoria Island.

SBV has a global reputation for efficiency in cash risk and operational cost management and their status as the largest provider of cash solution in Africa and the Middle East, makes their entry into the Nigerian market remarkable one.

As contained in the invitation sent to banks and stakeholders, the joint venture company called Integrated Cash Management Services (ICMS) Limited is owned by SBV Services (Pty) Ltd and a group of Nigerian investors led by XL Cash Management Services Limited.

With investments of over $250 million planned over the next 18 months, the company projects to employ over 4,500 Nigerians and pioneer the emergence of a modern and technology driven cash operations industry in Nigeria, with great multiplier opportunities in the form of several Small and Medium Enterprise (SME) businesses that will feed into the ICMS platform.

The company which has former Central Bank of Nigeria Governor, Joseph Sanusi as its Chairman will have as guests at the launch the South African High Commissioner to Nigeria, Chief executive officer of major Nigerian and South African Companies and Banks, the Inspector General of Police and other dignitaries.

Tbite

June 10th, 2008, 11:36 AM

Nigerian, Dubai firms hold exhibition

A NIGERIAN property company, Ayo Mayomi and Company and a Dubai, United Arab Emirates' real estate firm, DAMMAC Properties LLC, will in September 2008, hold an exhibition on properties available in Dubai.

The exhibition, which holds at Shoprite and Silverbird Galleria, Victoria Island, Lagos would provide a forum for interaction between Nigerian property investors and DAMMAC Properties' representatives.

A statement by the Managing Director of Ayo Mayomi and Company, Mr. Ayodeji Mafikuyomi says his firm, which was been recently appointed DAMMAC's representative in Nigeria would explore the Dubai market for the benefit of Nigerian investors.

sammyjay77

June 12th, 2008, 05:27 PM

3 Nigerian banks to operate in South Africa

The South African government has endorsed three Nigerian banks - First Bank, Union Bank and United Bank for Africa (UBA), to commence retail banking in that country.
Ojo Maduekwe, Minister of Foreign Affairs, disclosed this in Abuja today when be briefed newsmen on the outcome of President Umaru Yar’Adua’s recent visit to South Africa.

He pointed out that Nigerian banks had been making efforts to break into the South African financial and banking sectors without success.

"During the visit, President Yar’Adua took up this issue with his counterpart, Thabo Mbeki who instructed the Reserve Bank of South Africa to permit the three banks," Maduekwe said.

On the N110,000 refundable deportation fee for Nigerian visa applicants by South African Missions, he said Mbeki also promised to revisit it.

"Mbeki also agreed to the reciprocal waiver of visa requirements for holders of diplomatic and official passports," Maduekwe said.

The minister reiterated governments’ decision to compile names of affected Nigerians who suffered the xenophobic attacks for compensation by the South African authority.

He commended the South African government for putting a moratorium on the deportation of illegal immigrants.

Maduekwe added that the leaders agreed to fast-track implementation of the 22 bilateral agreements between both countries some of which had been dormant. (NAN)

sammyjay77

June 12th, 2008, 05:28 PM

Intercontinental becomes first to post N1.7trn in deposits

Intercontinental Bank plc has announced its financial results for the year ended February 2008 which show a deposit base of N1.05 trillion, up by 126 per cent from N468 billion in the previous year.
The total assets plus contingent liabilities rose to N1.7 trillion, up by 108 per cent from N823 billion, thus making the bank the first to hit trillion mark in deposit and also giving it number one position in total assets.

The bank is paying N13.46 billion in dividends, comprising N6.28 billion and N7.1 billion as interim and final dividends respectively.

Financial analysts attribute the unprecedented growth in the bank’s deposits portfolio to robust customer confidence. The customer base has been on the rise since post consolidation.

The bank also recorded a phenomenal growth in gross earnings which stood at N173.5 billion, an increase of 99 per cent over the N87.4 billion recorded in the previous year.

Profit before tax grew by 102 per cent to N45.6 billion, as against N22.6 billion in 2007, while profit after tax soared by 125 per cent to N34.8 billion during the period under review. The capital base also rose to N200 billion from N157 billion.

The group chief executive, Erastus Akingbola said the exceptional performance represents a bold step in the bank’s global strategy of benchmarking the best financial institution in the international arena while positioning to become the number one bank in Nigeria among top five in Africa and top 100 in the world by 2010.

Recently, Intercontinental Bank entered into a joint venture with Blue Financial Services Company, the number one micro finance institution in Africa with 171 branches spread across ten African countries to float Blue-Intercontinental Microfinance Bank.

Analysts said the bank’s track record of superlative performance over the years puts it in good stead to achieve this target.

Intercontinental Bank was ranked 355 in the world by the Financial Times of London, making it the only Nigerian Bank in the world’s top 500 banks and the second fastest growing in the world in 2007.

Akingbola said the bank is poised to surpass this record. "We are encouraged by our drive, vision and capacity to double, year on year, all the performance indicators of the bank. We intend to beat our record and we shall", he said.

Intercontinental Bank is one of the Nigeria’s strongest brands. Its robust brand equity has been acquired over 18 years and resonates with a reputation for excellent customer service, superb financial performance and track record of exceptionally high returns on investments since inception.

The bank has evolved into one of the largest and most diversified financial services group in Nigeria with about 10 subsidiaries in all sub-sectors of the financial sector.

sammyjay77

June 12th, 2008, 05:33 PM

New gas policy aims to juggle global, domestic demands

As Angola is set to have a prolonged reign as Africa’s prime oil producer given the intractable nature of Nigeria’s Niger Delta crisis, the Federal Government should be wary of a replication of the change in status in the gas sector, a draft policy paper has warned.

Indeed government hopes to take advantage of heightening demand for the product internally and abroad to etch itself on the leaders table, significantly tweaking its status from one "that flares to one that aggressively utilises the commodity."
Government’s projection is that demand of the resource, now at about five billion cubic feet per day, would spike to 20 billion cubic feet by 2011, a fourfold rise.

This surge in demand is forecast to come from Europe and the US where the price for the for gas is at kite high levels and also from the domestic scene where power sector growth, it is believed, would lead to an unprecedented guzzling of the commodity by soon to be on stream power plants.

Besides the in-coming generation of power plants, there is the fertiliser and three methanol plants already on stream and the West (and North) African pipeline project. Others are the two new cement plants and aluminum plants.

And to meet the expected demand, there are plans to significantly rev up proven gas reserves by 2011, the terminal year of government’s medium term plan beginning this year. "Planned exploration and development of the vast gas resources will be embarked upon to meet the current global demand for gas," the draft policy notes.

Although the plan was silent on target production, it says that gas resources will be harnessed and optimally integrated into the national economy, its energy mix and industrial processes.

"A balanced development of local gas utilisation programmes and export based projects will be pursued," the draft document further says and hints that the target date of 2008 for ending gas flaring would be adhered to along with strict environmental compliance requirements.

To ensure hitch free supply of gas to the domestic market, there will be adequate geographical coverage of the gas transmission and distribution network, and while adequate infrastructure will be instituted to encourage Foreign Direct Investment inflows and entrench a competitive macroeconomic environment for all stakeholders.

But achieving this would require the mobilisation of local content and ensuring linkage with other sectors of the economy, the proposal notes. And for the catalytic nature of the private sector, it is proposed that it would be at the heart of driving the process as government declares a determination to complete the ongoing liberalisation and privatisation programme of the downstream sub-sector of the petroleum industry.

The downstream sector comprises companies involved in the exploration and production of the resource.

But government’s chief worry in all of this is the Niger Delta question. There are worries that the result of years of neglect of the region by government would come back to haunt the realisation of the gas plan. "It is evident that Nigeria will not realise the economic benefits the oil and gas industry portends if it does not quickly find solutions to the Niger Delta issue.’

In the Niger Delta, the report, observes, are intractable problems of "absence of law and order, inadequate infrastructure, low literacy levels and extremely high unemployment levels as well as limited income generating opportunities."

sammyjay77

June 12th, 2008, 05:35 PM

French firm, Saresco to invest $20bn in Cross River

Paris based firm Saresco is to invest over $20 billion in the tourism sector in Cross River State to complement efforts of the state government towards the development of the sector.
The firm has identified areas of interest to the building of an energy city, according to Paul Nmah, chief executive officer, Luxury Build and Design International and leader of a team of Dubia-based investors to the state.

Nmah said the team came on the instance of the member representing Obudu Constituency in the state House of Assembly, adding that the team was already in talks with the state government over the issue.

"This visit is investment exploration. We are invited by the member of the state House of Assembly (Jerry Martins Agba) and we did come to honour the invitation."

He said the team had a session with Eyo Ekpo, special adviser to Governor Liyel Imoke on special project, and his counterpart on investment promotion, Geraldine Okoh, saying that the meeting afforded the team the opportunity to know the state and its needs.

According to him, the state would benefit tremendously from investments in tourism if the Federal Government should make Tinapa a free trade zone with all requisite modalities like duty free as it is done in other countries

sammyjay77

June 12th, 2008, 05:37 PM

I will transform Lagos into Singapore of Africa - Fashola

Governor Babatunde Fashola of Lagos State says his administration's ultimate goal is to transform the state into the Singapore of Africa by not only providing infrastructure but sanitising the environment and making it more human friendly.
He gave the assurance at a recent symposium organised by the state ministry of the environment to mark year 2008 world environment day, with the theme, "kick the habit towards a low carbon economy", saying Lagos as a global mega city has a central role to play in tackling climate change, particularly as it produces a high quantum of greenhouse gases.

His assurance came, as the state commissioner for the environment, Muiz Banire, again warned against the continued flaring of gas in the Niger Delta region, saying, "it portends a bad omen for the country" unless urgent steps were taken to address the situation.

Drawing attention to the growing danger of climate change and its consequences, Fashola said "climate change threatens to change the face of the planet and mega-cities with billions of world urban poor, who are always the most exposed and venerable. Global change is projected to have serious economic and social effects, which will impede progress towards the millennium development goals and other development plans".

According to the governor, in embarking on environment-friendly projects, greening programme as well as discouragement of indiscriminate emission of C02 into the atmosphere, the administration aimed to transform Lagos into a world class city.

"I can assure you that we have not seen anything yet on this administration's dream of entrenching a green culture in the entire polity. Our desire is to transform Lagos into the Singapore of Africa. It is the intention of this administration to leave as a legacy, the culture of greening and beautifying the environment," he said.

sammyjay77

June 12th, 2008, 05:39 PM

Lagos proposes ultra modern inter-state transport terminal

To further enhance the status of Lagos as Africa's emerging mega-city, and address traffic related problems, the state government is proposing an ultra modern inter-state terminal complex along the Ojota axis on Ikorodu road.
Special adviser on works and infrastructure, Ganiyu Johnson told newsmen in Lagos over the weekend that the proposed the terminal is part of the holistic approach being adopted by the government towards the provision of modern facilities, as well as improving network of roads in Lagos.

The inter-state complex according to Johnson would consist of two terminals, each with multi-storey car parking facilities on five floors.

The parking facilities have been proposed to accommodate different categories of vehicles ranging from taxis, mini-buses, luxury buses and other articulated vehicles.

The complex is also to be provided with rest rooms and conveniences, ranging from waiting areas, long rooms, shopping malls, restaurant and bars. He further explained that each of the multi-storey terminal building is to be complemented with three offices and hotel with the upper floors serving as parking areas, and strictly dedicated as entrance lobbies into the towers.

The proposal is being considered to be operated under the following options-public-private partnership arrangement, build, own operate and transfer or a joint venture arrangement option.

The state government is expected to come up with the most appropriate option after a careful consideration of the various bids that is expected to be submitted by interested companies.

It is hoped that upon completion the inter- state terminal complex will finally solve the long standing traffic problems associated with the Ojota axis as well as further boost the economic potentialities of Lagos State.

sammyjay77

June 12th, 2008, 05:41 PM

Lagos to deploy 200 additional buses to strengthen BRT operation

The long queues being witnessed at various bus stops along the Bus Rapid Transit (BRT) corridor in the Lagos metropolis may soon be a thing of the past, as Lagos State government plans to deploy additional 200 buses to further strengthen the scheme.
The BRT lite rail was launched in March this year with initial 120 buses commuting passengers from Mile 12 to CMS-Marina on Lagos Island. Additional 70 buses were added a month later when it became clear the 120 buses could not cope with the volume of passengers patronising the scheme. The BRT is being jointly operated by the National Union of Road Transport Workers (NURTW) and Lagos Metropolitan Area Transport Authority (LAMATA)

Lagos State commissioner for information, Opeyemi Bamidele said last weekend that apart from beefing up the BRT operations, the state is equally committed to continued rehabilitation of the roads in order to facilitate easy ride especially during this raining season.

He identified the provision of pedestrian bridges, routing system for commercial buses, traffic lights, lane demarcation, installation of road signals, street naming, special traffic mayors, construction of road median and improvement of road intersections as some of the measures government is taking to tackle traffic menace in the metropolis.

Specifically, he pointed to Gbagada, Tool Gate/Ketu and Ketu-Alapere within the metroplis where pedestrian bridges have been constructed, adding that government is moving to provide similar facilities in other parts of the metropolis.

Bamidele admitted that the challenge facing the state was how to utilise other modes of transportation as complement, thereby reducing vehicular activities on the roads.

The commissioner disclosed that the government was stimulating private - sector participation in water transportation through the construction of jetties in Agboyi (Kosofe) and Ijegun Egba in Oriade area as well as dredging and channelisation of Ikorodu Waterfront and the Lagos Lagoon among others.

Government, he added has commenced infrastructural re-engineering of 25 grid-lock spots with the aim of making them cope more effectively with the volume of traffic, including the provision of U-turn to link Ahmadu Bello Way via army officers' mess in Onikan, so as to reduce traffic from Marina to Victoria Island.

Bamidele explained that the installation of traffic signals at road intersections was part of government's efforts to ensure safety, as well as bring about orderliness on the roads.

He listed Acme road, Ogba; Ilupeju bypass, Mushin, Okota roundabout, Isolo and Idimu road as some of the spots where government recently installed traffic lights.

The focus on mass transportation policy of the current administration, he explained was to encourage high capacity buses as a means of decongesting the roads and this informed the provision of additional 70 buses to boost the BRT operation. He discllosed that another batch of 200 buses would soon be added to the fleet to forestall the long queues being experienced at BRT designated bus stops.

Bamidele informed that the government was also concentrating on construction of new roads to check traffic jam in any part of the state "where we still have heavy vehicular traffic."

He noted that government as a policy was encouraging re-developed markets and shopping malls to have multi-storey car parks especially in areas like Victoria Island, Lagos Island and Ikeja with the aim of taking away on the street car packing.

pappy

June 13th, 2008, 05:51 AM

Lagos to Reduce Emission

The city of Lagos as a member of the C40 cities is collaborating with Clinton Climate Initiative towards actualising the reduction of greenhouse gases emission. Speaking on the occasion of the World Environment Day last week, Governor Babatunde Fashola particularly stressed that the indiscriminate emission of carbon dioxide (Co2) is today wrecking havoc in the state just as in the whole country, Africa and the world at large. He was represented at the event held at the LTV Hall, by his deputy, Princess Sarah Adebisi Sosan.
The Governor said that collaboration with the Clinton Initiative would help to reduce greenhouse gases emission as well as assist in the following areas: the provision of four compost plants on Badagry and Epe axis, conversion of waste to energy programme, conversion of sawdust and other municipal solid waste residue to briquette, financing downstream waste management support services, intervention in the beautification project in the state by planting 5,000 trees within the metropolis, restoration and remediation of the landfill sites in Ejigbo and Gbagada to capture potential carbon emission.
The others include the promulgation of studies that would identify benchmark for the emission control standards, more capital investment in the waste management sector through development of new sanitary landfill sites, support through investment in best practice for disposal of hazardous waste, development of more transfer loading stations within the geographical zones of the state, solar powered intelligence traffic control and management lighting system, public enlightenment for orientation and cultural change with regards to road usage, setting up of horticultural schools in the three geographical zones of the state and establishment of tree nursery Fashola added that the State Government has embarked on an intensive campaign aimed at curtailing the negative impacts of the emission of Co2 and other greenhouse gases such as biodiversity losses, declining fertility, massive destruction of arable land, depletion of water resources and global warming. The campaign which is coordinated by the state ministry of environment has as its theme, “Kick the Habit towards a Low Carbon Economy.”
Due to the fragile ecosystem of Lagos State, the Governor said the Environment Ministry has intensified tree planting and preservation as a way of checking biodiversity losses and other harmful effects of Co2 emission. He said this resolve has been demonstrated with the various on-going greening and beautification programmes in the state, some of which include inner and outer Marina, Falomo Clover Leaf Park, Eric Moore, Airport Loops, Western Avenue Median, 10 loops along Oworonshoki, Victoria Island, Roundabout at Sobo Arobiodu, GRA Ikeja, Mobolaji Bank Anthony Way, Isheri to Oworonshoki Median via Old Toll Gate, Ijora Causeway and Two Triangular lay by along Ikorodu road.
Fashola said that Lagos as a mega city has a central role to play in tackling environmental and climate change particularly as they produce a high quantum of greenhouse gases.
Lagos State Commissioner for Environment, Mr. Muiz A. Banire also declared the preparedness of the present administration to tackle head on the environmental challenges facing the state. In this regard, he said the state has embarked on direct sponsorship of landscaping and beautification of open spaces, roundabouts, recreation parks, road medians and verges.

Tbite

June 13th, 2008, 11:25 AM

AKS N20BILLION GALLERIA UP FOR GRABS

Akwa Ibom Government has thrown open the construction of its proposed Galleria valued at N20 billion for grabs by competent contractor. The State Chief Governor, Godswill Akpabio who dropped this hint at a dinner organized for military attaches and advisors from USA, Italy, Romania, Senegal, Ghina, Brazil, Italy, Zimbabwe and Nigeria as well as Assistant Inspector General of Police (Zone 6), Mr. Azubuike Udah said government has advertised the project in some newspapers. While urging competent contractors to take advantage of the galleria, Governor Akpabio explained that on completion, the project would comprise a dome of sitting capacity for 5,000 guests, a five-star hotel and other leisure outfits.

The Team Leader of military advisors and attaches, Col. Patrick G. Ogah said the visit was to familiarize themselves with the state possibly to explore areas of collaboration with the government. Col. Ogah who extolled the prevailing peaceful climate of the state also lauded the rich culture and cherished traditional hospitality the state is noted for over the years. The Assistant Inspector General of Police, Mr. Udah commended the state government for the lavishing reception accorded him, saying his posting to Zone 6 which the State is a component is divine having served as the State Commissioner of Police for one year.

As a commissioner then, he recalled the challenging tasks of contending with the high crime-wave coupled with the heated 2006 governorship delegates’ election involving 56 aspirants and thanked God for surmounting the hurdles for him. He remarked that though his tasks in the Zone are enormous, he together with commissioners of police would ensure crimes reduction to the barest minimum to guarantee safety of lives and property of the citizenry.

pappy

June 13th, 2008, 06:26 PM

AKS N20BILLION GALLERIA UP FOR GRABS

Wow, that's so stupid.

sammyjay77

June 13th, 2008, 06:52 PM

Nigeria president to call emergency on electricity

By Estelle Shirbon

PARIS, June 13 (Reuters) - Nigerian President Umaru Yar'Adua said on Friday he would declare a national emergency next month over his country's decrepit power infrastructure, one of the main brakes on growth in Africa's most populous nation.

Yar'Adua promised when he took office just over a year ago to declare such an emergency but has since said he was waiting for two committees, set up to investigate mismanagement by his predecessor, to report back first.

Nigeria's power crisis has become so severe that much of the country has been without mains electricity for weeks, plunging neighbourhoods without private generators into darkness every night and heightening frustration among its 140 million people.

"Next month I am going to declare a national emergency in the power sector," Yar'Adua told a gathering of French businessmen during a trip to promote investment in his country.

He said that the Nigerian federal and state governments would together invest $5 billion over three years in generation, transmission and distribution of power but the government was also looking to raise private funding for the industry.

"We will seek financing from international consortiums and financial institutions that can come and partner with us to finance the rehabilitation and expansion of this infrastructure," he said.

Under Yar'Adua's predecessor Olusegun Obasanjo, Nigeria unbundled its state electricity company into a grid, six generation firms and 11 distribution companies as a prelude to privatisation, but that last stage was never reached.

Yar'Adua said that after the initial three-year programme of state investments under the power emergency, the intention was the complete the privatisation of the sector.

SOVEREIGN FUNDS

Despite being the world's eighth-biggest oil producer, Nigeria has a generation capacity of about 3,000 megawatts (MW). South Africa, with a third of the population, has more than 10 times that capacity.

Yar'Adua said last month that the emergency period would last until the country was able to generate about 10,000 MW of electricity, which he expected to take until 2011.

On Friday, he said Nigeria's target was to increase generation to 40,000 to 50,000 MW by 2020.

Responding to a French banking executive who was citing the example of Dubai raising money for infrastructure investment through a sovereign fund, Yar'Adua said that Nigeria was also looking for ways of bringing private money into infrastructure.

He said that under a previously announced restructuring of the crude oil production industry, the national oil company NNPC would start sourcing funds for its joint venture operations with foreign firms from bodies like sovereign wealth funds.

"Some of the institutions you have mentioned, like sovereign funds in Dubai, we are talking to them to provide part of the financing for cash call operations for the joint ventures the NNPC carries out with international oil companies," he said.

Funding shortfalls at the joint ventures between NNPC and Royal Dutch Shell (RDSa.L: Quote, Profile, Research), ExxonMobil (XOM.N: Quote, Profile, Research), Chevron (CVX.N: Quote, Profile, Research), Total (TOTF.PA: Quote, Profile, Research) and Agip (ENI.MI: Quote, Profile, Research) are one of the reasons why Nigeria has struggled to increase its oil production capacity.

One of the other reasons is frequent attacks and sabotage in the Niger Delta, Nigeria's oil heartland, where the government has been unable to stop militants, ransom seekers and crude oil smugglers from disrupting the oil industry.

(For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/) (Writing by Francois Murphy and Estelle Shirbon, editing by Nick Tattersall)