Despite the numerous problems Nigeria (still) faces, one can´t deny that things are moving on the ground, considering from where our country came from at the end of the dictatorship in 1999. Early signs are omnipresent for Nigeria´s growing economic role/might and as a (potential) emerging market on the world stage. So let´s dedicate this thread to Nigeria´s development initiatives. From now on post all economic and business-related news concerning Naija into this thread.:)

An FT-article worth reading.

Nigeria may be the next emerging markets gem

http://www.arcaajans.com/genel_images/logo-financial-times-1.jpg


December 11th, 2006
By Chuka Mordi

Published: December 4 2006 02:00 | Last updated: December 4 2006 02:00
Outside South Africa, sub-Saharan African capital markets represent the last frontier for the unhindered flow of global capital. The problem has always been the absence of the combination of scale and local expertise required to attract global fund managers.
This bleak situation is finally improving in a perceptible fashion. In the first week of October, the Nigerian government, via the Central Bank of Nigeria (CBN), allocated a total of $7bn (€5.3bn, £3.6bn) to be jointly managed by its local banks and global fund managers. Each global manager, in partnership with a local Nigerian bank, received $500m.
This has been little commented on but it highlights the role of technocrats in managing the economy and their growing influence over the propensity of politicians to spend state funds. The CBN has traditionally kept the external reserves as deposits with foreign banks, and this is the first time that it is appointing foreign asset managers to manage part of its reserves. The effect this will have on the long-term emerging market outlook for Africa in general, and Nigeria specifically, is significant.
The mandate is a global fixed income one, but it is our prediction at Nex-Rubica that in the next three years, on the back of current growth trends, local securities will be included in the asset mix. There is currently not enough depth in the Nigerian market - its market capitalisation is $31bn, total issue of government bonds about $4bn - to support such a large inflow of cash without overly inflating the market. But the Nex-Rubica forecast is for this size to double between now and the final quarter of 2007, surpassing Egypt by 2008.
A variety of factors influence this prediction. Twelve months ago, in market cap terms, Nigeria had just one bank capitalised above $1bn. Following a government-driven consolidation exercise, there are now six banks of this size, varying from $1bn to $3bn. With banks showing top-line growth in the triple-digit range, high double-digit underlying growth and a market penetration of just 15 per cent in a population of 140m people, the expectation of at least 10 banks capitalised above $5bn in the country by the end of 2007 is plausible. Current consensus estimates for banking sector profits for 2007 are above 200 per cent
With the financial services sector as a catalyst and a significant number of new issues in the pipeline, our projected market size of about $100bn in equities by year-end 2008 will be just about right for decent-sized emerging market funds to take a serious look.
The CBN foreign reserves allocation is due to rise to $12bn within the next few months when the remaining 11 banks acquire foreign partners, and then to $25bn within the next few quarters when allocations are raised to $1bn each.
The object of this exercise is capacity building for the Nigerian banks in the fund management sector. He who has the gold makes the rules, and the issuer of a $25bn mandate can easily switch from global equities to African equities at a stroke. At present, this is an implausible if not impossible scenario but it will not seem so outlandish in 18 months. The reserve management programme in itself will not transform the market, but it is indicative of a nation that has finally come round to the concept of orthodox fiscal policy and - most important - accountability.
African markets have been growing at a phenomenal rate. The key drivers for this growth have been a relaxation in the regulatory regime, privatisation of government corporate holdings and relative stability in the major African economies. In Nigeria, the high oil price has enabled the country to clear its $35bn debt, build up an excess of $50bn in foreign exchange reserves, increase spending and embark on significant restructuring of the economy. While global stock markets have grown steadily in the past five years, the major African stock exchanges have experienced almost exponential growth.
In spite of the growth, only three African markets outside South Africa possess the scale to attract anything other than niche emerging market funds. These are Egypt, Morocco and Nigeria. Of these three, Nigeria is showing the highest growth prospects.
In the last year, the outperforming stocks on the Nex-Rubica Africa Top 40 Index, have been Nigerian financials. One key attraction is that the risk/return profile in the Nigerian market is generally uncorrelated to western markets. Starting from a relatively low base, Nigeria alone has the momentum in terms of its population, resources and growth potential to catapult it to the first rank of emerging market economies.

Chuka Mordi is director of strategy and head economist at Nex-Rubica, a pan-African specialist

Copyright The Financial Times Limited 2006

MAtthias,what about education in Nigeria?
Are there "good" university,good college...
How many schoolpupils...
Is the education important for nigerian families or it depend of the social classes?

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, 2)Banking sector with its consolidation etc. and 3) Reduction of debts.

The education sector is still lacking the funding it deserves. Power, health care, and infrastructure are generally lacking. Recently the Governor of Cross River State said Nigeria needs $400 billion to attain millenium development goals. A corruption-free Nigeria would able to raise these funds and attain this objective in say 10-15 years. However it's highly unlikely that corruption will be reduced significantly if Obasanjo's administration 1) has its way or 2) is extended through the "s"election of his puppet PDP candidate Musa Yar'adua.

The good news is that April 2007 presents a golden opportunity for merit and issues-based politics to produce a truly technocratic government building UPON what Obasanjo did so far (little). Personally I don't have too much faith in the political system to transform at an acceptable pace, in order to put Nigeria on par with other countries such as India, Brazil, China, etc. But it will eventually get there, I hope!

Yes education is the key! universities have been neglected. look at the Amadu Bello University, it used to be the pride in Africa even hosting Asian and Middle Eastern students. Today it's a shadow of its former glory, and its library's books are collecting dust. Billions have to be poured into the education sector, and this should be given utmost priority by the incoming govt.....

PS. I believe real development occurs through the minds of citizens, and not through prestige projects or "flying ambulance" jets purchased by one of the corrupt governors. A "support network" of good roads, functional hospitals, and reliable power is the only way any development + industrialization program can work.

MAtthias,what about education in Nigeria?
Are there "good" university,good college...
How many schoolpupils...
Is the education important for nigerian families or it depend of the social classes?

Africa500, Zexyworm summed it up although I differ with him on some points. Obasanjo´s efforts have not be in vain or little but enormous considering the shithole Nigeria was in 1999 when our country grinded to a complete economic halt. Again, Obasanjo didn´t inherit a country in 1999 but a vast shithole destroyed by more than 20 years of brutal military dictatorship, mismanagment and utter corruption! People seem to forget that when they look at Nigeria today! It would have been silly to believe that Obasanjo had turned Nigeria into another China or Brazil, how naive some people are!:ohno:
However, in my mind, Obasanjo has laid a good foundation upon which successive governements can build (condition: if competent and relatively corruption free governments take the lead):) .
Let´s not forget that Nigeria has not squandered or plundered its oil wealth like in the past on any extravagant and senseless "white elephants" that chiefly quenches the thirst of money-greedy foreign investors that take the next plane out once their work is done.
Nigeria´s infrastructure has improved (although the pace could have been faster), the banking sector has truly consolidated, the way for local and foreign investors has opened again, the stock market has jumped and grows in strength and market capitalisation, Nigeria sits on 50 billion US dollars of foreign exhange resreves (more than Egypt and South Africa combined!!!) and it is growing not abating, the country has paid off 35 bn dollars in debt which was amassed from previous reckless leaders, the telecommunication sector leap-frogged etc. Of course, those measures and aspects are still marginal but they are a start, NOBODY CAN DENY THAT! (I still remeber the horror images the media painted about India some years back and now they are singing daily endless songs of praise and shower that Asian country with partly undesserved praise; even though social indicators are still weak but surprisingly don´t seem to play that much of a role for Western media as they did in the past)

As far as the education sector in Naija is concencerned, well, public universities have been entirely neglected during the deplorable military years and social spending had to be reduced dratsically due to the strictly imposed neo-liberal IMF and World Bank policy....but again not all of the more than 40 universities in Nigeria lie in shambles as Zexyworm describes it....Apart from that, Nigeria has a growing list of good private universities and schools and the second American University on the entire continent after Egypt is in Naija - and let´s not forget the enormous human wealth of the Nigerian diaspoara that have not lost touch with their motherland in any way. However, I would 100% aggree with Zexyworm that successive governements need to refurbish the entire social sector and put an emphasis on public universities and healthcare.

BG Group, Nigeria LNG sign $7.5bn agreement on gas

February 13th, 2007

British Gas Group plc (BG) has signed a sale and purchase agreement with Nigerian Liquefied Natural Gas (NLNG) for gas supply.

EJIOFOR ALIKE

The agreement, signed yesterday, was aimed at transforming Nigeria from an oil to gas nation by 2020.

At a price of $3.40 per million British Thermal Unit, the cost of the 45 million metric tonnes for the 20 year duration of the contract is in excess of $7.5bn.

BG, a world leader in natural gas, operates four business segments: oil exploration and production; finding; developing and connecting gas to markets as well as transmission and distribution of power.

The agreement, according to company sources, was for the acquisition of 2.25-million tons per annum (mtpa) of liquefied natural gas for a 20-year term from the planned Train 7 project in Finima, Bonny Island, Nigeria.

This latest supply arrangement was in addition to the existing supply arrangements between the company and the NLNG.

Under the agreement cargoes will be delivered on an ex-ship basis to BG’s North American marketing business at Lake Charles, Louisiana.

Martin Houston, BG executive vice president and managing director, North America, Caribbean and Global LNG, said: "This agreement with NLNG adds to our existing supply arrangements through Trains 4 and 5, which came into effect last year. It enhances the profitable long-term growth of BG’s LNG supply portfolio and reflects the strength of BG’s competitive position in the Atlantic Basin."

BusinessDay has gathered that the NLNG Train 7 is planned as an 8.4 mtpa facility. The shareholders in the NLNG are Nigerian National Petroleum Corporation (NNPC) (49 percent); Shell Gas B.V., (25.6 percent); Total LNG Nigeria Limited (15 percent); and ENI International (N.A.) N.V. S.a’r.l. (10.4 percent).

BG, which is active on five continents in 25 countries has shown an increasing interest in the nation’s oil and gas sector.

In January 2006, the BG entered into a Memorandum of Understanding (MoU) with Nigeria’s Brass LNG for the acquisition of LNG with initial deliveries expected to start during 2011 while the final volumes would be confirmed on completion of the agreement, which is expected in 2007.

In February 2006, the BG signed a joint venture project development agreement for a liquefaction plant at Olokola (OKLNG) in Ondo and Ogun States.

The proposed project will comprise four LNG trains of approximately 5.5 mtpa each, with the development envisaged in two phases of 11 mtpa capacity.

The BG has a 13.5 percent share in the project and the remaining partners are NNPC (49.5 percent; Chevron OKLNG Holdings Limited (18.5 percent), and Shell Gas and Power developments B.V. (18.5 percent).

In January 2006, the BG (along with its partners Sahara Energy and Seven Energy) signed a production sharing contract with the NNPC with respect to Bloc 332 offshore Nigeria.

The BG holds a 45 percent interest in and operatorship of this bloc, which is located in deep water (100 - 1,000m) offshore western Niger Delta, approximately 100kilometer south-east of the commercial capital Lagos and lies between latitudes 5º 50’N and 6º 20’N.

In the US, the BG LNG Services LLC, (BGLS) holds, through 2028, 100 percent of the firm capacity rights at North America’s largest operating LNG importation terminal, Lake Charles in Louisiana.

PS: it is no secret that Nigeria´s gas reserves are significantly higher than its oil reserves!

Let´s not forget that Nigeria has not squandered or plundered its oil wealth like in the past on any extravagant and senseless "white elephants" that chiefly quenches the thirst of money-greedy foreign investors that take the next plane out once their work is done.


With all due respect, I beg to differ.

If 100 billion dollars were stolen by Abdusalami Abubakar or IBB regimes, my guess is that Obasanjo's regime stole 50 billion. Sure, stealing is on the decrease, especially with the formation of the EFCC and ICPC. However, a recently published list of corrupt governors in Nigeria (published by the Nigerian EFCC) stated that ONLY 1 governor (of of 36) is corruption-free. The rest have looted the bulk of their federal allocations. I refer you to the sad case of governor Alamieyeseigha (spent it all on private property in Jo'burg and London), Shekarau (did NOTHING in Kano, in fact it's as poor as ever), Obi, Ibori (what a joke), and Igbinedion (prefers to check himself into 5-star hotel rooms in Canada, in company of 5 hookers).

In the corruption issue, Nigeria's homework is FAR from complete. In fact, it's barely at the bottom of the hill, but going UP, and that is a start....I must admit.

PS. Mathias I'm really convinced of what I said and I don't hide the fact that I'm not on "Abachanjo's" fan list. The guy is a ruthless dictator who prefers to hire clueless people as aviation ministers. Did you see his Information Minister (Mr. Nweke) on CNN last night? He kept insisting CNN "paid bribes" to have some people put on a kidnapping show in the Niger Detla.... If Obasanjo can't admit he has a SERIOUS problem in the Niger Delta which is essentially unresolved, I'm afraid Nigeria can never go places wiht a man like him at the helm. Bye bye Uncle Sege.

Who's afraid of Mubadala?


…New Telco prepares to roll out There is a new kid on the telecom block in Nigeria and his name is Mubadala. Nigeria's new Unified Service Access licence awardee, the Mubadala Development Company of the United Arab Emirates is firing up the local market through its hitherto undisclosed actions and the anticipation of its Nigeria strategy.
Bill OKONEDO
For now, Mubadala is making foundation moves to roll out and as part of this, the company has started subtle acquisition and employment moves which can change the face of the sector .

BusinessDay also gathered from reliable sources that Mubadala is negotiating with leading network infrastructure providers including Alcatel of France, Ericsson of Sweden, Siemens of Germany and Huawei of China, for the roll out of its Nigeria operations , the first phase of which it is anticipated will be cost about $1 billion (N127 billion).

Also, insiders say, Mubadala will likely adopt the Indian business model for its Nigeria operations because Nigeria has similarities with India as regards geographical size, income per capita and some socio-cultural attributes.

Asked about the wisdom of shipping to Nigeria when some think the market is largely taken, a source close to Mubadala said according to statistics available on Nigeria abroad, there are about 75 million Nigerians between the ages of 15 and 55. He further said that if only 30 million of that number has been taken, that would leave 45 million more open to be taken. He further added that if the right strategies were adopted, subscribers would migrate at will to networks that better served their purpose.

Ernest Ndukwe, the Executive Vice Chairman of the Nigerian Communications Commission (NCC) expects also that the added competition posed by Mubadala, will bring about a further improvement in the quality of service in the telecoms industry here and a lowering of costs to the subscriber.

Sources close to Mubadala told BusinessDay that the company has started a recruitment campaign and is fishing for personnel locally and internationally. For this purpose, it is said, the company has appointed two employment agencies, one international and one local.

Mubadala's staff requirement figure is put at about 1,000 of which at least one-third will be technical personnel and another one-third will be marketing personnel. It is said that the company is considering the prospect of co-location its technical equipment with a certain local telco which has very good geographical coverage and is recapitalising. Mubadala is considering the feasibility of rolling out in the second quarter of this year.

We gathered also, that following in the footsteps of other big telecom operators here, Mubadala favours hiring Diaspora Nigerians with specialized skills, so as to blend with its new operating environment.

It is said that to supplement this source Mubadala is offering even fatter salaries to entice technical, marketing and managerial staff from competing operators here as well as from the banks and other organizations, as is customary with new comers. The grapevine in rival organizations is said to be rife with speculation about personnel who might be switching over to Mubadala.

Industry sources also disclosed that Mubadala is proposing to buy up two local private telephony operators (PTOs). One of these, which is particularly strong on data services is based on the Victoria Island extension in Lagos while the other, which is a smaller player is based on Saka Tinubu Street, also in Victoria Island. While the former is not keen to sell, the latter it is said is interested in the deal but does not want a complete buy out.

Informed sources said also that Mubadala favours working with a foreign media agency, which will then cooperate with one or two local agencies.

As if anticipating this, two of the GSM operators are said to have been entertaining fresh bids and proposals from local agencies to sharpen their tussle for the hearts and minds of subscribers.

Our sources say that Mubadala will work with more than one network infrastructure provider so as to achieve a speedy roll out. We also gathered that the network will build its strategy around quality service, competitive pricing, broad coverage, hinterland penetration, social responsibility awareness and a massive media blitz, among others.

Mubadalas licence comes as a total package, as the company was also offered a digital mobile licence and GSM frequencies in the 1800 and 900 MHz bands at the cost of $400 million .

The offer of the licence to the company followed a bilateral agreement between Mubadala, a state-owned multi purpose investment company and the Nigerian Communications Commission (NCC) acting on behalf of the Federal Government.


The Nigerian face of the Dubai- based group, is believed to be Hakeem Bollo-Osagie, former chairman of UBA and this is not his first attemp at picking a slice of the lucrative GSM business in Nigeria.

Mubadala is coming into the Nigerian market, at the take-off of the Unified Licence regime which follows the five year exclusivity of mobile operations which the GSM companies enjoyed.

The Unified Licence allows both mobile and fixed networks to operate across platforms.

Industry watchers say that with a good measure of the nation's telecom market (30 million subscribers) already taken, some ways for Mubadala to speedily entrench itself would include buying out some local operators, focusing on niche services, offering lower service rates and co-locating facilities.

Zexyworm I do not know where you get those figures from, first of all?

Nigeria´s past rulers especially IBB and the rest of those crooks have been the rot of Naija, BUTTON IT!
All of them desserve to be hanged or stoned to death in public for what they have done ! Even such a penalty would be mild and still doesn´t express my contempt i feel towards those evil vultures!

Although I am very unhappy about the Niger Delta crisis, I have to say once again Obasanjo is not the only one to blame, Nigeria and a state in general consists of more than of one single Big Man. It is no secret that local politicians arm thugs before elections to stake their claims to electoral wards and those gangs often engage in "freelancing" of their own. ...the Niger Delta crisis will die down once election is over. (although this is not an excuse)




As far as the CNN report is concerned: Yes, I have seen it but Hello again that´s WHAT I AM SAYING AND SHOUTING OUT LOUDLY how many positive reports on Naija have been broadcasted by Uncle Sam´s media? CNN Effect does it ring a bell?
Answer: None, even the show on CNN called Inisght Africa is a big slap in the face of Africa.(full of bias and utter misery). I don´t watch it any more. Aids, war on terror, hunger, Ugands´s twenty year civil war, landmines, SA´s crime and inequality and Nigeria´s corruption that is all that they try to convey in their 30 minutes long ridiculous "puppet-on the string" show! The worst is Jeff Koinage...I cannot understand this man!
at the same time, India´s and China´s corruption is no longer a topic for CNN or Americans ´cos they have realised the massive market potentilal of those two potential superpowers. Nowadays Light is only shed on the positive news in India when you see reports on CNN and never on the hundreds of million people that still continue to live in poverty and never about India´s corruption and red tape! Really weird!

Thanks for the new news item you added, it is truly noteworthy!

Ericsson, Hauwei, Siemens Jostle for $1billion Telecom Contract

By Efem Nkanga, 12.02.2007

A number of world renowned telecommunications network infrastructure service providers including Ericsson, Siemens and Hauwei are currently vying for the roll out contract of new entrant into the Nigerian telecom terrain, Mudabala Development Company of the United Arab Emirates.
An official close to Mudabala, which last month won a unified licence from the Nigerian Communications Commission (NCC), following the full payment of the $400 million licence fee, disclosed that the value of the first phase of the contract for the development of its network and transmission backbone construction is about $1 billion.
The company was awarded a broad spectrum mobile licence in the GSM 1800 and 900 MHz bands and has 12 months within which to rollout services. The deadline expires in January 2008.
Mudabala is said to be evaluating the network infrastructure providers to ensure technical competence, ability to deploy speedily, competitive pricing and favourable payment terms.
THISDAY also gathered that Mudabala is likely to work with more than one network infrastucture service provider because of the need for a speedy roll out across the country especially since a number of its competitors already have a five year headstart.
The official also disclosed that when the UAE company finally decides which contractor or contractors it would work with, there is a likelihood that the it would opt for a vendor financing deal.
Mubadala is the investment arm of the Government of the Emirate of Abu Dhabi, one of the six states that make up the UAE. The company’s investments cut across many sectors like telecoms, energy, utilities, real estate, industries, etc., all geared at developing the Abu Dhabi economy and putting it on the world map.
The European network infrastructure service providers, Ericsson of Sweden and Siemens of Germany have several years of experience supporting the telecoms sector in Nigeria, while the Asian competitor, Huawei has a track record of infrastructure development in Asia.

Yesterday British Gas and today Total:)...see who will follow next!

Total , Nigeria LNG seal $5billion gas deal

February 14th, 2007

French oil giant Total says that its wholly owned gas and power trading and marketing company Total Gas & Power Limited and Nigeria Liquefied Natural Gas (NLNG) Limited yesterday signed a sale and purchase agreement for gas supply.

EJIOFOR ALIKE

This agreement came barely two days after NLNG sealed a similar deal with BG Group, a United Kingdom energy firm.

According to company sources, the agreement was for the supply of 1.375-million tons per annum (mtpa) of liquefied natural gas to be produced by NLNG train 7 in Finima, Bonny Island, for a period of 20 years.

At a price of $3.40 per million British Thermal Unit, the cost of the 27.5-million metric tons for the 20-year period is in excess of $5-billion.

The LNG is expected to be delivered to the United States and Mexico to meet the increasing demand for natural gas in those countries, and in particular to Total’s re-gasification capacity at the Sabine Pass and Altamira LNG terminals.

"With this LNG purchase, Total is delighted to further expand the scope of its cooperation with Nigeria, which is an important part of Total’s portfolio and a key producer in the LNG industry," said Yves-Louis Darricarrère, president Gas and Power, Total.

With five trains already in operation and Train 6 expected to start operations at the end of this year, NLNG is a market leader in the LNG industry. The Train 7 expansion project, with an 8.4 MTPA capacity, will bring the capacity of the Bonny LNG plant to nearly 30 MTPA. Total holds a 15 percent stake in NLNG.

BusinessDay has gathered that with the signing of this agreement, long-term purchases of LNG contracted by Total are expected to grow to over 10 mtpa.

A trailblazer in the LNG industry since 1964, Total has interests in six of the world’s largest liquefaction plants. The total capacity of these six plants represents about 40 percent of global LNG production capacity. Approximately 30 percent of the gas produced by Total in 2006 was dedicated to the LNG industry.

Total is strengthening its position across the LNG chain as illustrated by the recent signatures to acquire a stake in Brass LNG in Nigeria.

Nigeria has a growing list of good private universities and schools and the second American University on the entire continent after Egypt is in Naija - .



Actually it would be the third American Universityon the continent...Kenya has an American University (United States International University) which was built in 1969.

True:)

Actually it would be the third American Universityon the continent...Kenya has an American University (United States International University) which was built in 1969

No, Naija has the second, I think that you seem to mix something up here. Nigeria has the first American University in Sub-saharan Africa. It is the concept around ABTI/AAU. (Same university type is in the UAE and Egypt, for example.) There is a difference between an "American International University" and "American University" build around the concept "ABTI" (even the differences are marginal).

Check this on out:) :



PRESIDENT'S MESSAGE


http://www.abti-american.edu.ng/img/president_huwiler.jpg
David Huwiler (President of the American University in Nigeria)

AAUN is the first, American-style, private, not-for-profit university in sub-Saharan Africa. Our mission is to offer a world-class, American style education to students who wish to take advantage of an American, undergraduate curriculum without incurring the expense of spending four or more years in the United States. AAUN will provide you with an education that is equal in every way to what you would experience at an excellent university in the U.S. Our professors have Masters and/or PhDs from the United States and many years of teaching experience on American and international campuses. In addition, the President, Vice Presidents, and senior administrators are from the U.S.

AAUN is a partnered with the American University (AU) in Washington, DC, an institution with an international reputation for excellence. AU assures the quality of curriculum and instruction, and it supports AAUN’s liaison office in Washington, D.C. Because the curriculum of AAUN is American, the credit-hour system, curricula, and transcripts allow students to transfer their academic work or enter graduate programs in the U.S. with little difficulty.

AAUN is a "career-oriented" institution. Our mission is to provide exceptional students with the tools that they need to be successful, whether they choose careers as businessmen and women, as entrepreneurs, as IT professionals, or in some other sphere of public or private employment. Every student, regardless of academic specialty, will receive training in entrepreneurship and in information technology. Every graduate will leave AAUN with the tools necessary to achieve personal prosperity and to help promote economic development in Nigeria and West Africa.

Academic study is rigorous yet rewarding. Classes are small and students receive one-to-one attention from faculty who have impeccable teaching and research credentials. There are writing, computer and math laboratories to assist students, and all faculty members hold office hours for every course they teach.

AAUN's 450 hectare campus, like its educational programs, will be world-class. When complete, high speed, wireless Internet will be available campus wide, indoors and out. Upon admission, every student will receive a laptop computer with which he or she can access the network. Student dormitories offer attractive rooms, built to a high international standard. All of the campus buildings are fully air conditioned and wired for data projectors and computers.

Leisure is also an important part of campus life. Students will have access to a fitness center when they join activity clubs, and they can participate in organized sports as well as enjoy social occasions, trips to the market, and special events. Security is round-the-clock, and students are supervised by dorm resident assistants and a director of student life.

Yola, the capital of Adamawa State, is a tranquil, attractive city situated on the banks of the beautiful Benue River. Yola is served by a major airport, so all of the attractions of Abuja, Nigeria's capital city, are just a short one-hour flight away.

Many students from West Africa aspire to earn university degrees in the United States. But for most of these students, an education in America has been unattainable--until now. Now it is possible to earn an American university degree right here in Nigeria at a fraction of the cost of earning the same degree in the United States.

Explore our web site, and if you have questions do not hesitate to send an e-mail, contact us by phone, or stop by our campus. I look forward to seeing you at AAUN.

David Huwiler
President, ABTI-American University of Nigeria



A presentation about the first American-style university in sub-Saharan Africa.

ABTI-American University of Nigeria (AAUN) was created in response to the demand for high-quality, American-style higher education in West Africa. American University has a close partnership with AAUN, which we formalized with a five-year agreement in January 2004. AU has helped recruit the senior management team and advise the university on programs and curriculum. AAUN accepted its first class in September 2005, and the University is doing exceptionally well.

The presentation will highlight the AU and AAUN partnership, featuring informative details about the ongoing development of this new University located in Yola, Adamawa State, Nigeria. The program will conclude with traditional African food and music.

Location:

Butler Board Room

Sponsor:

Office of Vice President for International Affairs

Contact :

Adeyinka Adesioye

Email:

aaun@american.edu
Phone:
885-3233

Source: http://domino.american.edu/AU/Committees/UMCalF.nsf/5df56b65689da9038525691400604c08/d6235c529401383a852572720077ae59?OpenDocument





First American University in Sub-Saharan Africa Opens In Nigeria

March 9th, 2006
The Vanguard

By Kini Nsom

The first-ever American University in sub-Saharan Africa, will open its doors to students in Yola, in the Adamawa State in the Federal Republic of Nigeria come September.Known as Abti-American University in Nigeria, the school will use specifically the American curriculum including the credit hour system.

According to it promoters, the university will make all the difference and provide the kind of education that will be able to meet the challenges of the 21st Century.In a press conference at the Djeuga Palace Hotel in Yaounde, on July 25, the Varsity's Director of Public Relations and Marketing, Abubakar Abba Tahir, said the University is a unique opportunity for Africans to have quality education.

Asked why such a university was necessary when there are already 71 universities in Nigeria, Abba Tahir said the Abti American-University intends to bring to Africa the quality education that parents said their children to go and get in America. Besides, he said of the 1.2 million students that high schools churn out in Nigeria every year, only about 250,000 of them succeed in enrolling in the universities.

Abba Tihir said the University was founded by Nigeria's Vice President, Aiku Abubakar, with the vision of taking quality education to Nigeria. According to him. 75 percent of the teaching staff will be Europeans and Americans in the beginning while the reverse will be true in the next 10 years.


Apparently diagnosing the ills that all Nigerian universities suffer, he said the Abti-American University guarantees a stable academic year and provides world-class facilities to its students. He said the American curriculum in the University will not only enable them to produce graduates that are ready for the job market, but will also produce people who can create jobs.

"Our graduates will think creatively and analytically," he emphasised.As part of the tuition cost, he stated, each student will be supplied with his/her individual laptop computer and a 24-hour access to the Internet. A state of the art mega-library will also be established on the campus.


The University intends to have the following schools; Arts and Sciences, Information Technology and Communications, Business and Entrepreneurial Studies, Law and Engineering.The University is the third and final element of a comprehensive schools project. According to its promoters, the project has a nursery/primary school and a world-class academy.

Addressing journalists, the Founding President of the University, Prof. David Huwiler, lauded the American system of higher education. He said like any American university, the Abti-American University of Nigeria would be that of pragmatism.

He said during the first years, graduates of the school learn a wide range of subjects before narrowing down to their major academic discipline. He insinuated that many world ladies have failed because they went through the British system of education that was not quite pragmatic.

"We train people to be specialists in various fields. Our curriculum is designed to create renaissance men and women. Although tuition fees are over FCFA 4 million a year, the founder of the University argued that it is cheaper than sending children abroad to have the same kind of education.

Huwiler said the University would open its doors to only 2000 students for the first year, since most of the structures are still under construction.

According to the Deputy Director of Admissions of the school, Umma Aliyu Musa, applicants in West Africa from all over the world will be admitted.

Despite the current and temporary Niger Delta crisis, oil companies continue to build on Naija.:)



ExxonMobil to invest $10bn in Nigeria in four years

February 15th, 2007

The American oil giant, ExxonMobil, is investing $10-billion in its exploration activities in Nigeria in the next four years, and says it is working hard to ensure that the Foreign Direct Investment (FDI) inflow into the country is increased.


The company which produces an average of 800,000 barrels of oil per day in Nigeria is investing massively in its gas projects with the aim of adding value to the gas and stopping flaring by next year.

The government had ordered all the oil companies to ensure that they put an end to gas flaring by 2008. Analysts have however expressed doubts about this deadline in view of the current crisis in the Niger Delta which has caused a lot of disruptions in the operations of oil companies. Major projects have been stopped on account of series of kidnapping of oil workers. Over 100 oil workers have been kidnapped so far since the problem started a year ago.

Exxonmobil which recently undertook two rounds of investment including $600million satellite financing in the last one year with the participation of Nigerian banks also said that it would support the government and the oil and gas industry to develop the Nigerian content in the oil industry.

Disclosing this, Gloria Essien, executive director Mobil Producing Nigeria, appealed to corporate players in the country to demonstrate high level of corporate responsibilities in the discharge of their business activities , adding that her company had so far contributed about N20 billion to Niger Delta development Commission for developmental purposes.

This, she said, was in addition to the N1.5-billion annual average investment in community development and economic empowerment which the company undertakes.

Speaking further on national aspirations and objectives of the company, she said that the company was prepared to capture as much economic value as possible from natural gas within 10 years.

Microsoft Vista available in Hausa, Igbo, Yoruba before December
Wednesday, February 14, 2007

Activities marking the most significant product launch in Microsoft’s history have started with the release to consumers of the Windows Vista operating system and Microsoft Office 2007.

The two flagship products, which were previewed by the Nigerian Press and released to Nigerian business customers last November will be available in more than 70 countries, in 19 languages with 99 languages anticipated by the end of the year, including Hausa, Igbo and Yoruba.

Announcing the launch events, Microsoft Nigeria Marketing Manager, Victor Okigbo, said:"The Nigeria launch event is part of a global schedule. We will launch Windows Vista and Microsoft Office in Abuja on the 20th of February and in Lagos on the 22nd of February."

"With the product available in over 39,000 retail stores worldwide including our local PC Outlet Store at the Palms Shopping Mall, Lagos, you can, of course, buy a copy from retail outlets right away. In fact, one very lucky Nigerian shopper will get an invitation to the Feb 22 launch event in Lagos and a copy of Windows Vista signed by Microsoft Chairman, Bill Gates."

Okigbo further disclosed that Microsoft Nigeria is collaborating closely with business partners and distributors such as HP, Intel, Coscharis Technologies and Technology Distributors (TD) as part of the product launch process and as such the launch events will include high-impact product demonstrations.

Windows Vista and the 2007 Office system deliver innovations in interface design that transform the desktop and make these two products visually exciting and significantly easier to use. New capabilities make it easy for anyone to create and share digital content like photos, music and videos, and participate in digital communities by posting blogs, creating Web sites or playing games online.

Describing the new products, Okigbo said, "The way that Nigerians work, play and communicate will be profoundly affected by the launch of these products: Vista is by far the most stable, secure and technologically advanced version of Windows to date; Office has a radically redesigned user interface that boosts productivity in a significant way. We areexcited that Nigerians will have the opportunity to experience the impact of working and playing with these products."

The new versions of Windows and Office also deliver advances in security and family safety to help parents guide their kids to explore the Internet more safely, while also safeguarding their personal information so that they can share experiences, shop and have fun with greater confidence.

One example in Windows Vista is the Parental Control Panel, a feature that provides a central location where parents can manage Internet and computer access and receive reports about which Web sites their children have visited and the amount of time they have spent on the computer.

In addition,features like Windows Defender help protect consumers against attacks by spyware and malicious Web sites.

But despite all the razzmatazz that accompanied the release of the Vista Windows, only very few customers will be queuing up to buy a copy as most users of lesser vision of Windows are not expected to upgrade but acquire Vista only when they buy a new computer.

However, the launch of Windows Vista is also expected to unleash a flood of new next-generation hardware devices. Currently, there are more than 1.5 million devices and peripherals on the market that work withWindows Vista, including more than 2,000 that are Windows Vista Certified.

Among the new devices available today that are designed specifically to work with the features of Windows Vista are the TouchSmart PC from HP, which includes a touch-sensitive screen; the Toshiba Portege R400, which features a SideShow display that lets users view their e-mail without turning on the PC or opening the lid; and the OQO model 02, a new ultra-mobile device that optimizes entertainment and communication on the smallest mobile PC form factor available.

On the Nigerian scene, two variations of Zinox’s recently launched, Zinox Divine Notebook are designed to work with Windows Vista.

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potentialities. Microsoft opened its offices in Nigeria in the year 2000.

This will be good for people that prefer navigating through an OS in their own language:banana: :pepper: :cucumber:

@ Matthias - my bad. thanks for clearing that up. :)

An interesting piece of news!

Nigeria: 2006 Licensing Round - Economy Gets $20bn Investment Boost



Vanguard (Lagos)
February 16, 2007

Hector Igbikiowubo
Abuja


FEDERAL Government's pre-condition to bidders for oil blocks awards in the 2006 mini licensing round to be prepared to invest upwards of $2 billion (N256 billion) in downstream oil industry projects has attracted to the economy investments in excess of $20 billion (N2.56 trillion).
Mr. Anthony Chukwueke, Director of the Department of Petroleum Resources (DPR), said at the 7th Nigeria Oil and Gas International Conference and Exhibition in Abuja, that government realised commitments in downstream investments in excess of $20 billion.

Government had insisted that companies which wanted to participate in the 2006 mini licensing round must be prepared to invest a minimum of $2 billion in downstream oil industry projects, as a means of developing the sector.
Chukwueke said only recently, President Olusegun Obasanjo flagged off a rail line in exchange for oil blocks which are yet to be identified. This, he said, underscored the appetite of some members of the international community for sources of energy supply to meet their domestic needs. He admitted that there were challenges facing the new investors who were not conversant with the terrain and culture of the peoples of the Niger Delta.
"If we do not do something about the Niger Delta, it would be difficult to solve the problems there. We need massive projects on ground to address the economic problems and this can only be achieved through the active participation of all stakeholders, especially the majors which have largely stayed away from the licensing rounds," he said, and recalled that government on its part was trying to solve the problems on ground in the area by engaging the people as well as investing in the development of massive infrastructure.

The director said companies committed to downstream projects include ONGC-Mittal Group which has an investment portfolio of $6 billion and has commenced feasibility studies on a railway project connecting the South-West to the Northern part of the country; the Korean National Oil Company (KNOC) which has committed $6 billion and is prepared to commit up to $11.8 billion depending on the number of oil blocks allocated to it.
The Koreans have also started work on a gas pipeline grid to evacuate gas from the delta to the northern parts of the country; Jigawa State government and its partners have committed $4 billion to developing ethanol in the country; the BG/Sahara partnership has also committed $1.8 billion to the development of a deep offshore gas gathering pipeline system; Global Steel has committed $1.4 billion to the development of downstream projects, while Cleanwaters Refinery, a Rivers State Government promoted concern, has committed $2 billion to the development of downstream projects.
Speaking earlier at the conference, Dr. Edmund Daukoru, Minister of Energy, hinted that government was considering alternative funding mechanisms for its upstream oil industry financial commitments.
He recalled that government had put in place several targets within the sector to grow daily output to 4 million barrels before the close of the decade.
"Though the deadline is still some three years away, the gains made over the past seven years under this Administration are quite apparent. Joint Venture reserves grew by some 23 per cent while PSC reserves have literally doubled, with an average reserve appreciation of 32 per cent for both JV and PSC," the minister said.

He said despite a few set-backs, the decade has witnessed the most dramatic changes in the over 50-year history of the Nigerian oil and gas industry, especially in the upstream sector.
"The tenure of this administration has bequeathed a dramatic pluralisation of industry players, as about 47 new operators and investors made their debut. This has in part given significant boost to the nation's reserves coming mainly from new world class discoveries in the deepwater which currently contributes some 25per cent to daily production. In the same vein, in-country sourcing of goods and services increased tremendously, thanks to an articulate local content policy, currently being enacted into law. On the international scene, Nigeria's gas is expected to be transmitted to our West African neighbours first quarter of this year, which underscores our gas monetisation and flare-out policy as well as commitment to regional co-operation," he said.
Also speaking, Dr. Funsho Kupolokun, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) said year 2007's JV budget was $5.5 billion, adding that the funding constraints had always been there. "I am talking with operators to find a way around the issue of funding. Once we are able to do this, we can then address whatever funding requirement that may arise," he said.

Great News:)

New Calabar airport to cost N13b

From Eno-Abasi Sunday, Calabar

THE new Calabar International Airport , to be jointly constructed by the Cross River State and Federal Government, is to cost N13 billion.

The project, to be completed before the end of the year, is to be situated at Odukpani, along Calabar-Ikom Highway. The cost of the project is to be borne by both parties on a 50-50 basis.

At the end of last Wednesday's State Executive Council (SEC) meeting in Calabar, the governor's Chief Press Secretary, Joseph Ushigiale, said it became imperative to take this option because extending the runway of the existing Margaret Ekpo International Airport, from 2.4 to 2.6 kilometres would cost N20 billion, a situation viewed as unreasonable.

He explained that when completed, the new airport would be capable of playing host to bigger aircraft that are expected to flood the state on account of the Tinapa Business Resort, which is due for commissioning on April 2, 2007.

Ushighale added that the resort commissioning had to be shifted by a few days because President Olusegun Obasanjo desired to be physically present at the ceremony.

Ushigiale, who stated that so far three of the four emporia at the resort had been acquired by prospective investors, also disclosed that the chief executive of the world's largest retail outfit, Walmart, would be arriving in Calabar for discussions with the state government.

The governor's spokesperson said that the unfolding scenario was a confirmation of the fact that the mega project had already attained world class status.

On government's efforts geared at improving the transport system in Calabar metropolis, he said all was now set for the launch of the Calabar Urban Bus Transit, adding that the government had adopted a proposal outlining 90 designated bus stops along three primary routes spanning the entire state capital.

While hoping that the operations of the bus would be enhanced by the provisions of two bus depots, he explained that SEC was looking at adopting N50 fare for commuters and a yet to be determined student fare to alleviate hardship.

I wonder which airlines will be coming to the airport. and how many hangers the airport will have in total.:)

Finally, Calabar gets a new international airport and that old 70´s style shack is a thing of the past!:banana::wave: I am very happy to read that!
13 bn Naira will get a decent airprot for the size of Calabar, I think and do hope!
I´d love to see some renders, but we all know the "old game" with finding renders on projects in Africa.:lol:

As far as Tinapa is concerned, I am happy that Walmart makes its entry into Nigeria. Harrods plans to open a department store in Tinapa as well! And an Asian retailer (of which I have forgotten the name) will also come. I am burning to find out which other world-class brands will come!

Donald Duke is a true cosmopolitan visionary who truly loves his motherland, he is the man Naija so desperately needs.:cry: Just look what he has realized in his small and relatively poor state Cross Rivers in such a relatively short span of time. No endless "talkie talkie" but ACTION!:cheers:

The asian retailer is flamingo, Mcdonalds showed some interest but there is no written agreement of any sort. Also for the second phase of the project, the emporiums will be expanded from 80,000m2:)

I really hope the airport will be able to handle the amount of tourists and buisness people that will flock in:)

I hope this new airport will look great and not just a remake of the Margeret Ekpo Airport!!, or the Akwa Ibom airport as these are the new airports in Nigeria!!

Hey Lephillipe, welcome to SSC|Africa, yeah i also hope that the aiport has a good design:)

TINAPA: WAL-MART CEO arrives Nigeria for third exploratory discussions:)


February 25th, 2007



As prospects brightened for the planned April inauguration of the Tinapa Business and Leisure resort (TBL), Wal-Mart is arriving Nigeria by end April for exploratory discussions on taking up a shopping space at the complex.

BEN EGUZOZIE


BusinessDay last year, Wal-Mart’s technical last November team had its third meeting with the management of Tinapa, with Governor Donald Duke in attendance. The talks had centred on the possibility of the global retail shopper taking up a whole emporium at the complex.
Wal-Mart, world’s largest retail market, features a great selection of high-quality merchandise, friendly service and low prices. It also undertakes the best shopping experience on the Internet.
It was founded in January 2000, by Sam Walton (1918-1992) as a subsidiary of Wal-Mart Neighbourhood Stores, Inc. with headquarters on the San Francisco Peninsula near the Silicon Valley. It has access to the world’s deepest pool of Internet executive and technical talent.
Its management says they think of themselves, first and foremost, as a retailer. The ties to Bentonville, Ark. — where Sam Walton opened the first store that bore the Walton name and where Wal-Mart Stores, Inc., is still based — give us our foundation, the president said on the Wal-Mart website.
The managing director and chief executive of Tinapa, Sam Anani, told BusinessDay recently in an interview that, Wal-Mart’s interest in Tinapa came through an invitation by the eminent Andrew Young, former US ambassador to the UN, to the president of the shopping giant, to move into Africa via Nigeria’s Tinapa company. :)
He said Young’s intervention was a response from discussions he held with President Olusegun Obasajo on getting US companies to invest in Nigeria’s business sector. The sector, according to him, has been making tremendous improvements in recent years.
With the coming of Wal-Mart into Tinapa, it would be the third foreign global retailer into the company. Others are Shop-rite and Nu Metro both of South Africa, and Flemingo International of the United Arab Emirates.
Nu Metro would be running the cinema halls in the complex, while Shoprite would be operating a variety of consumer goods. Flamingo, which already runs about 60 duty-free retail outlets in India, UAE, Kenya, Tanzania and Ghana, would bring to Nigerian consumers, a wide variety of goods, ranging from cosmetics, jewellery, liquor, among many others.
Meanwhile, Joseph Ushiagiale, chief press secretary to Duke, told journalists in Calabar late last week that President Olusegun Obasanjo had confirmed he would be physically present to officially commission the N45-billion Tinapa project.
Ushigiale said, with the nearing of the commissioning date of Tinapa, the interest by investors in the facility had heightened because of its investment potentials.
He said, so far, three out of the four emporiums had been taken up by prospective investors.
Apart from Wal-Mart, that is expected to occupy a whole emporium, United Arab Emirates-based Flemingo International would be taking up a 2,500-metre space at Tinapa.
BusinessDay spoke with Flemingo’s shopping manager, S.K Sagwarl, who arrived Calabar early last week, to start processes leading up to the opening of their shopping space in April.

PS: Marks and Spencers and Harrods also showed vivid interest!

Here is the article


Harrods, Wal-Mart, Marks and spencers and others head for Tinapa City

Businessday April 3rd, 2006

World famous department stores, Mac-Donalds, Wal-Mart, Harrods, and Marks and Spencer, among many others, have indicated very strong interest in the N43 billion Tinapa project in Calabar, regarded as Africa's premier business resort.


The foray by these world retail market players into the Nigerian market is in response to the commitment of the Cross River State government to the completion and commissioning of the first phase of the project by December, 2006.

According to the executive governor of the state, Donald Duke, whose administration is providing the infrastructure for the project, largely funded by private sector players, Tinapa will be ready by December, 2006. The final kitting by the major shop owners and operators will however, be completed by March 2007.

When phase one of the project is completed, the specific components that will form the foundation of the development of a leisure tourism market in Nigeria would have also been firmly rooted. Some of these components that would be visible in the first phase of the project will include a shopping complex comprising four wholesale emporiums, 300 retail outlets, a food court with take - away outlets, an administrative centre, a commercial sitting area, and a parking lot for approximately 3, 000 cars and coaches.

According to information from the project site, there will also be an "entertainment strip" leading out of the shopping complex.

This, BUSINESSDAY learnt, would feature a casino of international standard, five restaurants, a cinema complex with cinemas ranging from 104 to 340 seats each, a games arcade and ten-pin bowling alley, a children's play area and a fisherman's village with themed bars, night club and an arts and crafts village.

Duke confirmed in Calabar, weekend that the phase one aspect of the Tinapa project would be home to a 300-room budget hotel, leisure land and waterworld facility, wave pool, lazy river ride, picnic area, tennis courts, life guard tower, kiosks, change room facilities, volley ball courts, management offices, among other numerous facilities.

According to the project scheme, the second phase of the world-class business resort is envisaged to include a hotel and conference complex with a 200- room branded international four star hotel, a conference centre with a main ballroom seating up to 2,000 delegates, business and fitness centres. Also, it is designed to feature three boutique stores, expansion of leisure and entertainment facilities fitted with a quad biking track, an archery range and a fisherman's wharf, among other features.

Duke said the third phase of the mega project will cover the construction of a 150-room branded international four-star hotel, a luxury beach lodge with 30 -units, a luxury bush lodge, agritourism and ecotourism. When the Tinapa project becomes functional there would be a mutual driving and sustenance of tourism which the Cross River state government has taken with Agriculture as major footwalk in the effort to power growth and development in the state.

Hey Lephillipe, welcome to SSC|Africa, yeah i also hope that the aiport has a good design:)

Thank you, I feel welcomed already, anyhoo.. I am loving this development at TInapa. I cant wait for its grand opening!!

Tinapa is doing big things.

Welcome LePhillipe, great to have you post here with us!
Cheers :cheers:

Welcome LePhillipe, great to have you post here with us!
Cheers :cheers:

Thank you!!

Duke Commissions Calabar Ultra Modern Shopping Mall . (27/2/2007)


In its bid to rapidly urbanize the state capital through the provision of modern facilities, Governor Donald Duke of Cross River State has commission an ultra modern shopping mall in Calabar the State Capital.

Speaking at the ceremony, Duke contended that now that the state is emerging as the preferred tourists’ destination in the country, he would ensure all that a modern city requires is provided to make the city attractive to visitors.

He said that government while providing the facilities has not lost sight of environmental impact and would ensure that best environmental practices obtainable globally are adhered to in aesthetically positioning the state.

The Governor however lamented the slow implementation of Federal Government initiated Small Scale and Medium Enterprise (SME) fund which he attributed to lack of shopping outlet to display finished goods by the beneficiaries, adding that the shopping mall which he contemplates would be replicated in every community in the city to provide such opportunities for them to showcase their produce and enhance their living standards.

He maintained that given the facilities provided at the mall, visitors to the shop would fine shopping comfortable, pleasurable and leisurable.

Duke stressed that government had since last year decided to embark on the renovation of Watt Market through the provision of modern facilities in and around the market to standardize the market and expressed the hope that residence of the area would take advantage of the mall and utilize its services.

The Commissioner for Lands and Housing, Mr. Bassey Eyo Ndem in his remark stated that the Big Qua Shopping Mall which is managed by a private firm covers a land area of about 29 x 30 square metres.

He said the idea behind the project was to raise enhanced shopping experience to both residence and tourists, adding that the allocation which is on first come, first serve basis is still in progress to interested members of the public.


Courtesy of Government House Press

I hope they come out with renders e.t.c and DD should be president of Nigeria.:banana: :banana: :cheer:

le Phillippe, once again Cross Rivers State ...that governor is so damn competent! Fanatstic!:banana:

It is not just you, I want him for president, too! He is the man to make the African elephant (Nigeria) dance:lol:

Any news on the Free Trade Zones of Cross Rivers? :)

Not really but I am currently sifting through their site for more information on this Bi
g Qua Mall!!

NIGERIA: California Wellness Centre and Spa, a member of the International Spa Association, invests in West Africa


Published: 02-MAR-07

Amidst the negative press that surrounds Nigeria, the first ultra-modern US-Style Spa in West Africa will be opening its doors this year. The Clear Essence California Wellness Centre and Spa, a member of the International Spa Association (iSpa), will be opening a luxury urban retreat in Ikoyi Island in Lagos for those that live in the stressful Lagos environment
For many foreign businesses, entering the West African market equates to uncertainty. Plagued with corruption, weak political institutions, economic instability, and a whole host of other concerns that are singled out in the media, West Africa has it share of problems. Nonetheless, with problems come opportunities to expand the economic market, and the California-based Bluefield Associates Inc (the proud manufacturer of Clear Essence Skin Care), is using this opportunity to provide a much needed holistic, wellness, and relaxation services to the residents of Nigeria.
According to Ms. Maisha Scott, the Vice President for Africa’s Bluefield Associates, Inc - one of the partnering companies behind the spa project - Nigeria has the largest population of any African country and a growing urban middle class.
Maisha notes that “one can not avoid stress in Nigeria. It is a part of the lifestyle there. The only thing you can do is learn to manage the stress, and that is what our destination spa will assist with.”
“Our goal is to help our clients unwind, relax, and wash the stress away, while educating them on healthy eating techniques, breathing exercises, and overall holistic health”.
The Clear Essence California Wellness Center and Spa - one of several spas Bluefield Associates would like to establish throughout the African Continent - will be located in the prestigious Ikoyi Island of Lagos, Nigeria. It has a three-part focus meant to address the body, mind, and soul, and to ensure continuing good health of all three.
The 20 000 square foot stand-alone spa complex offers a variety of lifestyle programs for spa guests, including anti-aging, wellness programs, and stress management treatments. In addition to various wellness programs, The Clear Essence California Wellness Center and Spa also offers a Women’s retreat and Corporate Health programs. We have supportive, knowledgeable specialists, and with a 3:1 staff-to-guest ratio, service reigns priority.
The first floor of the spa complex is a calming Vitality Floor where guests may immerse themselves in a choice of hydrotherapies - including a vitality pool with counter current circuit, Jacuzzi, and aromatherapy sensory showers - before or after treatments. Guests can indulge in the Manicure and Pedicure room where specialist provide revitalizing services using warm, softening wax and essential oils to sooth the hands and feet. To add to the wellness and spa experience, guest can enjoy fresh fruit smoothies, juice, or mineral water from the Clear Essence Juice Bar while relaxing around the vitality pool.
Also housed on the first floor is the Clear Essence state-of-the-art fitness studio with various exercise equipment. Next door to the fitness studio is a Yoga and Meditation room, for body toning and resistance training sessions. Completing the first level is the Clear Essence Spa boutique, where prior to departing, guests can pick up the Exclusive products used in their treatments for at home maintenance.
The second level of the spa complex is designed for functionality and to stimulate all five senses. The separate Gentlemen and Women’s Retreat lounges offer a zen-like atmosphere with waterfall-walls, while subtle lighting produces a minimalist environment that encourages guests to relax before and after treatments. Housed on this level are 10 treatment rooms, separated for men and women, to indulge in the various treatments offered.
At the end of the day, guests retire to one of 30 beautifully designed suite or garden villa. Each room has an intimate seating area, and an oversized soaking tub or multi-jet therapeutic shower. The en-suite Garden villas situated around the compound are uniquely furnished and decorated with sensuous fabrics. Some offer a personal butler service.
Its superb restaurant specialises in gourmet-quality, healthy California flare, offering creative and beautifully presented wellness meals. The restaurant has a vibrant and relaxed atmosphere that typifies Californian lifestyle.
Bluefield Associates Inc. aims to encourage other companies to seek business opportunities in Africa that may seem unconventional but provide opportunities for growth.

PS: This Spa will be da´ bomb, I wonder why they waited so long to enter the Nigerian market?? But better now than never...Hopefully, they establish more US-Style Spas in Nigeria and in Abuja in particular! A multi-storey Spa World for Abuja would really pay off...Nigerians are crazy about beauty products and attach a lot of importance to appearances!:cheers:

True talk!!

Great News:bow:

Nigeria/Ghana: President Kufour - Adenuga is Africa's No.1 Businessman

This Day (Lagos)
March 3, 2007
Posted to the web March 3, 2007

Yemi Adebowale and Emeka Enechi
Lagos, Accra

Ghanaian President John Kufauor has described Globacom Chairman, Dr. Mike Adenuga as Africa's number one businessman. Kufour who was speaking at the 2006 Glo/CAF Awards held Thursday night at the Accra International Conference Centre noted that the Globacom Chairman symbolised the African enterprise spirit and had through his business conquests given hope of an African rebirth.

"When you talk about business in Africa, you talk about Adenuga. He has within a short time left his footprint on different areas of business including banking, oil, aviation, real estate and telecommunications. But I am particularly impressed with what he has done with Globacom. In just a little over three years, Adenuga has made Globacom a force not only in Nigeria but also in the African telecommunications landscape, "Kufuor said.

President Kufour said the government and people of Ghana were excited about Globacom's entry into their country, assuring him of full support of Ghanaians. "We are happy with what they (Globacom) have achieved in Nigeria and look forward to having them replicate that success in Ghana, "Kufour said.

He described the CAF Order of Merit in Gold (Pillar of African Football) award given to Adenuga at the event as a most deserving reward for his unparalleled efforts in promoting football in Africa. He told the over 10,000 guests who crammed into the ICC hall that he was pleased Globacom chose his country to host the most prestigious awards in the continent especially as it coincided with the 50th anniversary of Ghana's independence and the establishment of the Confederation of African Football. "It is a historic moment for us and we are proud to have CAF and Globacom management here today," Kufour said.

The Ghanaian president described Chelsea of England midfielder, Michael Essien who made the final three for the African Footballer of the Year award as a proud product of Ghana and one of the brightest stars of African football. Essien was however beaten by his teammate, Ivorien Captain Didier Drogba. Taiye Taiwo of Nigeria who plays for Olympic Marseilles of France won the Young Footballer of the Year Award while Super Falcon's striker Cynthia Uwak emerged the Female Footballer of the Year.

Kufuor observed that Globacom's sponsorship of the Glo/CAF awards had raised the profile of the awards and deepened interest in the event and the game of football in Africa. He praised the standard of the Accra event, describing it as one of the most glamorous events ever to be staged in his country. President Olusegun Obasanjo was represented at the ceremony by the Chairman of the National Sports Commission, Bala Kaoje.

Adenuga in his speech described African players plying their trade across the globe as great ambassadors of the continent. Adenuga also rated the players higher than their counterparts from other parts of the world. He said the continent should be proud of their ambassadorial calling. His words: "Africans are great and talented people. In terms of everything we do, we always show our greatness. But we are a people from different backgrounds and tribes. We also speak different languages but football is one game that speaks one language. We have hundreds of our players scattered all over Europe, who have represented the continent exceptionally that nobody can ignore the number of players the continent has supplied to Europe and who have contributed immensely to the development of the game there. We should all be proud of ourselves."

He said, given the immense talent that abounds across Africa, players from the continent would continue to dominate various leagues in Europe in the years to come. "I have no doubt that with the array of talents across Africa, the continent will continue to produce quality players that will continue to dominate the game in the various leagues across Europe ," he said.

Drogba said at the occasion that the award would propel him to perform better in future competitions both for club and country. Drogba who dedicated the award to his family, thanked his country men and Africans at large for the love and support shown him over the years. He also received a standing ovation from the crowd for emerging in an Ivorien traditional outfit to pick his award.

Nigeria's Cynthia Uwak who won the Female Player award, also said the award would forever galvanize her to win more awards in her career. Uwak who dedicated her award to Nigerians said but for her selection into the female national team, she would not have been noticed. CAF has awarded Adenuga, the Pillar of Sports in Africa for his strong support for African Football at both national and continental levels. Adenuga will be presented the trophy at the opening of the 29th CAF General Assembly scheduled to hold in Khartoum on 10th and 11th February 2007.

The Chairman of Globacom made headlines when the company secured the sponsorship title rights of the Nigerian Premier League at an annual fee of N639 million for four consecutive soccer seasons. Globacom's sponsorship has raised the status of the Nigerian football League to one of the highest in African and has won President Obasanjo's commendation and a special recognition from the Confederation of African Football, CAF.

The 53 year-old Adenuga Jr. was born in 1953 in Ibadan. He attended the famous Ibadan Grammar School, in Oyo State for his secondary education and studied Business Administ-ration at Northwestern State University, Alva, Oklahoma in the United States. He also earned a Masters degree at Pace University, New York, majoring in Business Administration with emphasis on Marketing.

Mike Adenuga is a buisnessman, that can transform Nigeria:)

Disneyland-Style Amusement Park opens in Abuja :banana:

2/2/2007


From Dele Anofi

Holiday makers, old and young need not look beyond our shores as a sprawling world-class amusement park is set to change the skyline and the architectural background of Abuja and provide the people of the Federal Capital Territory (FCT) and its environs quality leisure time.

Wonderland Amusement Park and Resort Centre, the brainchild of Abuja- based Lebanese entrepreneur Fawzy Fawaz, is situated on 400,000 square meters expanse of land and strategically positioned between the National Stadium, Ministry of Finance quarters and the National Hospital.

The amusement park, is of international standard in both concept and design with technical input from the International Amusement Parks Association based in the United States of America (USA).

The park, which is due for commissioning soon is already generating lots of interests in the city because of the eye-popping facilities that adorn the complex.

Right from the beautifully designed road leading to the gate of the park, a visitor’s heartbeat is bound to quicken with the kinds of feelings the whole environment exudes.

The kind of service and experience that awaits a visitor to the park is impressed on the consciousness of the visitor from the entrance, where a striking structure called the Wonderland castle stands majestically and at the same time menacingly, taking the visitor to the ancient times of 16th century Egypt.

The arcades are stuffed with all kinds of video and other computerised games while several weird-looking and fast moving train and ship rides including crazy clowns are sites to hold any visitor spellbound for hours.

Adults who may want to have fun on the fast lane can do so on "the flying tower".

The spacious amusement park routes were paved and carefully landscaped also well equipped with the latest security apparatus, health and communication facilities .

But do not mix up this New Wonderland Amusement Park with the 1$ Billion Dollar Amusement Park called "African Heritage City"!:)

What about the Heritage City Theme Park??

It will go up close to the 600 Million US Dollar "Malaysia Gardens" Project which was kicked off last year!:)

Did you know the are plans for a subway in Lagos?? Check out the Transport Development thread!!

Is the Malaysia gardens Project for Abuja??

Is the Malaysia gardens Project for Abuja??

Yes, it is in Abuja!:lol:

As for the subway, I can´t believe it until I see concrete steps taken in that direction, There were plans to build a subway in Lagos in the early 80´s, but today there is still no subway! I think this Lagos subway project is only propaganda.
Moreover, I think that Lagos has many other problems to solve first before pumping billions into a subway!

As for Abuja´s monorail, I am optimistic and plans have already reached a pretty advanced stage:banana:

I disagree with you. The Lagos metro line is following from the plans in the 80's. Well, I am skeptical of this development as the Lrt doesn't seem to be going anyway, I just hope it works!!

Yes, it is in Abuja!:lol:

As for the subway, I can´t believe it until I see concrete steps taken in that direction, There were plans to build a subway in Lagos in the early 80´s, but today there is still no subway! I think this Lagos subway project is only propaganda.
Moreover, I think that Lagos has many other problems to solve first before pumping billions into a subway!

As for Abuja´s monorail, I am optimistic and plans have already reached a pretty advanced stage:banana:

I didn't know it was a monorail, I thought it was more like a tram-type metro.

An older article dating from 2005 but well worth reading :)


LETTER FROM LAGOS
Entrepreneurs for Africa

Published: 03-JUN-05

Nigeria has thousands of silent businessmen in the informal sectors of the economy, pursuing business interests ranging from the importation of refined crude oil to selling repackaged table water. It is estimated that the informal sector accounts for over 60% of Nigeria’s GDP and represents a source of livelihood for about 70% of Nigerians.

These business operators in the small sectors are the engine that drives any economic revolution, and Nigeria has no scarcity of them. However, some of these Nigerians have become icons and models for enterprise and business pursuit today through the sheer size and influence of their business dealings. They are from the banking, energy, technology, telecommunications, manufacturing and other industry sectors and have distinguished themselves by contextualising the resources they manage and by contributing to growth of entrepreneurial spirit in Nigeria.

Nigeria’s business opportunities have increased tremendously as the political system becomes increasingly stable. The era of private sector-driven investment has just arrived.

One of the key Nigerian business entrepreneurs to watch out for is Bolaji Balogun, the principal of Chapel Hill Advisory Partners, a financial advisory service that seeks to interface with private equity sources that have an eye on developing the real sector of Nigeria’s economy. This effort has generated many wins, including the IPOs of several key corporations. He has many years of experience in investment banking and helped syndicate local equity for what was then Nigeria’s second-largest mobile telecommunications company, Econet Wireless Nigeria (now V-Mobile).

What distinguishes Balogun is his consistent belief that private sectordriven enterprise is the key to unlocking Nigeria’s potential. He also believes that the current privatisation drive of the Nigerian government presents an opportunity for Nigerians to break the stronghold of government on the economy as well as a chance for private capital to take a firm root in Nigeria. Another emerging entrepreneur is Jubril Adewale Tinubu, CEO of Oando Plc.

His greatest feat was the bringing together of like minds to generate capital for the takeover of a majority stake in Unipetrol Nigeria. He has since grown it into the largest privately-held energy sector organisation in West Africa. Then there’s Aliko Dangote, who learned at the feet of his uncle, Sanusi Dantata, in the 1970s in Kano, and has grown up to become Nigeria’s leading entrepreneur in his own right. His mix of commodity trade and manufacturing through local industry is the balance that Nigeria needs to compete in the international market.

Today, as CEO of the Dangote group, Aliko runs its heavy interests in importation. His group controls 60% of the sugar market in Nigeria, and its trading interests in textiles, food commodities and transportation span the West African sub-region, particularly Benin, Cote D’Ivoire and Ghana.

Tony Onyeamachi Elumelu, CEO of Standard Trust Bank, Nigeria’s most widely spread new-generation bank, is another man who is not afraid to take risks; indeed, it is his appetite for measured risks and his ability to turn around those risks that has brought him into the limelight as the facilitator of Nigeria’s largest banking merger ever.

His Standard Trust Bank and the United Bank for Africa (Nigeria’s third largest Bank) are completing due diligence for a merger.

As managing director of BGL Limited, he and a savvy team moved to take over Crystal Bank, one of the financially-distressed banks that was to be axed by the Central Bank of Nigeria.

Most industry observers were alarmed.

Today, the emergence of Standard Trust Bank into a neighbourhood bank with a presence in most Nigerian cities and an increasing spread to West Africa remains an undisputable testimony to the benefit of innovative resilience.

Finally, there’s Mike Adenuga, chairman of Nigeria’s second national operator and GSM provider Globacom, who has proven himself a man of many parts.

He is chairman of Elf Petroleum Nigeria, Equatorial Trust Bank, Devcom Bank and has continued to pursue growth in all of these operations. He has become legendary for heating up competition in the telecom sector by the introduction of people-related pricing and challenging the erstwhile king to a price war.

Globacom is also credited with being the only provider providing lasting infrastructure to accommodate the bandwidth demand that is approaching a crunch, as the Nigeria’s mobile revolution continues to explode.

An article that sums it all up!:)

The Entrepreneurship Challenge in Nigeria


Published: March 01, 2007 in Knowledge@Wharton
This article has been read 1,836 Times

Nigerian President Olusegun Obasanjo has set an ambitious goal: He wants the country to become one of the world's top 20 economies during the next two decades. In order to hit that target by 2020, Nigeria will need to increasingly globalize education in two key areas: Information and communications technology, and entrepreneurship. In fact, President Obasanjo has mandated that all university students in Nigeria, regardless of their major, will need to study entrepreneurship.

That is one of the factors that brought Peter Bamkole, General Manager, Enterprise Development Services at Lagos Business School, to Wharton. He and a colleague, Olayinka David-West, a lecturer in information systems at Lagos Business School, recently spent time with The Wharton Small Business Development Center exploring how to set up an entrepreneurship program in Nigeria. Bamkole -- who often goes by the more informal "Banky" -- spoke with Knowledge@Wharton about the challenges that entrepreneurs face in his home country.

Knowledge@Wharton: The Nigerian economy, historically, has depended significantly on oil revenues. As the country tries to diversify away from dependence on oil, how important is entrepreneurship to the future of the Nigerian economy?

Bamkole: Well, entrepreneurship is a must now, judging by the figures that are coming out of the Education Ministry. In the last few years, at least 60% of graduates are not able to get employment immediately. Because of that, people go into one entrepreneurial venture or another, but unfortunately they have not been adequately prepared to face the challenges of venturing. Now it has become necessary for us to put that into the curriculum in developing these graduates. So, I think that has probably informed the Nigerian Investing Commission's decision to introduce entrepreneur development programs in our universities.

Knowledge@Wharton: What are some of the areas these students could go into? What fields of entrepreneurship, what industries, what projects?

Bamkole: I think basically it would be just to start, first of all, with the basic level process of venturing. So, without necessarily saying [something] like, "Here, you will go into high tech," we are just looking at the basic, simple process, starting from opportunity recognition, idea generation, and then taking it all through. It could be anything. So that is the kind of thing we are looking at.

Knowledge@Wharton: You would help them write a business plan, teach them those kinds of skills, project costs?

Bamkole: Even that might be too high at the beginning. In my center, yes we do that, we actually help people develop their business plans and all that; but right now, what we are saying is let the people begin to think about the process of entrepreneurship as a first step. Then, after that, they can come to centers like mine, and then we can take it to another level.

Knowledge@Wharton: I wonder what some of the challenges are that you face in encouraging entrepreneurship in Nigeria. Let me just offer one specific example. In Nigeria, as in many other developing countries, there has been a legacy of corruption. In fact, as you may remember, the World Bank, some time ago, had estimated that as a result of corruption, 80% of oil revenues benefited only a few percents of the population. Do you see that as a big obstacle, and how do you plan to tackle that?

Bamkole: Corruption is something that is relative, and it exists in virtually all economies, not necessarily developing economies or indeed Africa -- although based on the structures in the more advanced countries, they are able to control or to curb these kinds of practices. I can tell you that in the last few years, in Nigeria, the EFCC, which is the economic crime and financial institution set up by the government, has been able to actually deal largely with corruption in Nigeria. They have made quite a substantial amount of investigation and recovery. [There has been talk of] something like five billion dollars recovered, even some of the money looted outside of the country coming back.

But that is not the real constraint that retards entrepreneurship in Nigeria, based on the research that I did about two or three years ago. I called it "The MISFIT Factor." It is actually a six-pronged factor that tends to weigh down entrepreneurs. The first letter, 'M, ' stands for "Markets." The majority of our people don't have access to markets, and in order for them to have access to markets they have to understand the requirements of the market. So this is one area where we are lacking --for instance, if you want to have access to the U.S. market, you must know of the regulations, what it takes, and all those things. Until we are able to create that very well and let people understand it, and produce to be able to meet the needs of the market, then we will not be able to move forward.

A major one, again, is "Infrastructure." This is basically [true] in all developing countries, but more so in Nigeria. Thirty percent of our not being competitive is based on infrastructure. Power -- just power, public supply and power. Interestingly enough, there has been a study which the World Bank has carried out in the next ten years if they are able to remove power as a bottleneck, Nigeria will at least gain 30% competitiveness in production.

Four years ago, we had a similar problem in telecoms, and in Nigeria we had not more than 400 lines, phone lines, about four or five years, out of which I'm sure not more than 300 or so were working. But in four years, based on the reform agenda of the government -- two things are driving entrepreneurship in Nigeria are reforms and regulation, and we will come to that -- they liberalized these sectors that were up until then being controlled by government, so there is more transparency in it, and entrepreneurs are able to venture into these sectors that the government controlled up until then.

Today we have maybe about 38 million lines, the majority of which are either mobiles or fixed wireless. So we are able to cross the bridge of infrastructure and all that, even though it still rears its head in different ways, because we still need to power the substations, etc. And power is still a problem, so we have to invest in generators and use diesel and all that. But largely it has broken down a lot of barriers for us in transacting businesses across Nigeria.

Knowledge@Wharton: One of the biggest challenges for any entrepreneur is access to capital. So, once you have gotten to the point where Nigerian youth, middle-aged people, whoever, are actually seriously considering a venture--it's viable, they have a business plan, they have done all the studies--how are they going to fund it?

Bamkole: Actually, one of the constraints, again, is "F," which is "Finance." It is interesting that you mention that, but yes, capital is a major constraint in Nigeria. The government, about five years ago, tried to do something [about that] -- they have been having one form of intervention or the other in the last, let's say, 20 years, but the one that was done about five years ago was actually done by the Banker's Committee. So the bankers themselves came together and said, "Hey, we need to do something for the small businesses." So there were meetings ....


They arrived at a conclusion whereby 10% of their profits would be set aside as equity investments in small businesses, and everybody hailed that, and that was good; and the rate at which that was growing was incredible, because the banks were making huge profits, and it meant that 10% of it was growing at a very good rate. Unfortunately, the rate at which the money was being dispersed was lower -- significantly lower -- than the rate at which money was being stocked up. So why was this happening?

So many excuses. First of all, you have to understand the mind-set of the small businesses in Nigeria. They own their businesses, and they like to control it themselves. Unlike what I have seen in the last six weeks while I have been here in Philadelphia, most people wanting to start a business will look for a partner, somebody with equity. It's like, "Let's share the risk together. Let's leverage on the knowledge of one another," and things like that. But back in Nigeria, it is not the same. "I want to start it myself. I want to do it myself, at least up until the particular level that I know I have full control. Then, maybe I can sell part of it, but for now let me do all the sweating and let me do all the things that come with that sweating." That is on one side.

The second side is that up until five, maybe not more than eight years ago, the financial services sector had been used to lending through debt, not equity, so the mind-set, again, is different. Most lending has to do with collateral, so if you default, they sell off your collateral. In this case, there is nothing to sell off, which means they have to do their homework a lot more to know the right type of businesses to invest in, whether they are growing businesses or not. They need to know all that, and that is where they can get their reward. So that has also become a challenge for them.

On both sides there are real challenges, and that slowed down the investments in equity. But for us, as an enterprise development center, we now have a responsibility to bridge these two, to say, "Hey, if we are not getting enough businesses to invest in, we can help them to refine their value proposition so that it becomes more reasonable for you to invest in these people. Then, if it works, the two of you are happy, and we are happy because we have been able to make the two of you come together.

So we do a lot of education -- for the banks as well. It is also difficult for small businesses to have regular financial statements and things like that. It's a common practice, but we have to show them why it is important for them to have their own financial records -- even to know how their businesses are growing .... We help [the banks] and show them why it is important to do it for them.

Knowledge@Wharton: That's really interesting, especially the involvement of the banks. What are some of the areas where you see entrepreneurs getting actively involved and building their companies? What do you see as growth areas, for example, for entrepreneurs in Nigeria?

Bamkole: Like I said before, there are two major areas that have driving influence for us in entrepreneurship. Reform is one of them, and regulation is the other.

Let me start with reforms. Reform, which basically led to the liberalization of some of the major sectors, allowed entrepreneurs to enter certain sectors which, up until then, they had no opportunity to enter. Telecoms was a major one, and the South African companies started entering, but we had local entrepreneurs in Nigeria that also took up the challenge. We had Globacom, which is a wholly Nigerian entrepreneur, Michael Adenuga, who started that, and then they grew into one of the big three telecoms in Nigeria today. We also had Dane V-Mobile. Now that has been brought over by Celltel, which, interestingly, is owned by a Sudanese entrepreneur, and now he operates in the whole of sub-Saharan Africa and also in the eastern part. When he wanted to come on board, he looked at where he had comparative advantage. It was only where the big boys refused to go, and that was in Africa. So then he set up there, in Sudan, in Zimbabwe, in -- now I think they are in 15 countries, including Nigeria. And now, for us, it is Africans investing in Africa, and then creating that wealth within the continent, and that is good. That is what telecom has brought to Nigeria.

But that is at the higher level. If you now look at the value chain of the telecoms industry, you see right down to the level of what we call the "telephone lady," who ordinarily would have been begging for money in order to eat, and all that. With an umbrella, because there is a lot of sun, a telephone, two or three handsets, immediately she is in business; from calls, she can earn income to feed and to support her family. In addition to that, we have fallout like young bright boys who now repair handsets, and we have a lot of them. So there are so many things that came with just that deregulation in just that industry.

Now, the same can be said of the financial services sector, where we have had major reform [and] consolidation. Now we have quite a number of Nigerians with increased knowledge in that sector. In fact, at the beginning of this year, the reserve had increased significantly: We were highly in debt before, and [with] a lot of financial engineering, and of course the luck of the oil prices, we were able to pay off the debts, and we built the reserve up to about $48 billion. Now, the issue of managing the reserves came up. We were saying, "These, our banks, local banks in Nigeria, can manage it, but they have to also work with the international financial services across the globe, the best, so they can learn from them, and then we can upgrade their skills." That was what reform brought into Nigeria.

Sometimes, when regulation comes, it comes hard, and we feel the pain a lot more, but if we sit back it might actually be to our own interests in the long run. In 2003, the federal government banned the importation of fruit juices into Nigeria. Now, fruit juices, as of 2002, was a $600-, maybe $700-million market in Nigeria, and one of my small business customers was also in that business, and 70% of his income was actually from the importation and sale of fruit juices. Ten years prior to that, he had developed a nationwide distribution chain that was very strong, and he could move products very quickly through that. Now, with the ban, that poses a dilemma for him, because all of a sudden his livelihood was wiped out, just by one act of government.

But then he had a choice, as at that time the local production of fruit juices was just 15%. The remaining 85% were imported. Then, the government created incentives for local manufacturers, and [for] whoever wanted to go into local manufacturing, to be able to develop local production of fruit juices. After all, we have oranges, we have apples, why should we import all these things? So now we have gone through a period of three years, and within those three years, our production has actually -- well, they don't import anymore, but in terms of volume we have actually made up that through local production. The two local companies that were doing 15% up until then had stepped up, and they are doing nothing less than 40%. Then we had new and bigger entrepreneurs enter that particular segment, and they are producing more.

And the little guys, like the one I was talking about, [we have transformed] from what I call a "trader" into a local manufacturer. It has been a very rough road. It was very tough for him. At a point he almost just gave up everything; but because he had us, and we were mentoring him, we were helping him, we were managing him, we were begging him, we were praying for him, he was able to weather the storm. In fact, that is one of the case studies we have written which has now been published by the ACCH. It is a very, very interesting case study because it brings out all the elements of what entrepreneurs in Nigeria go through, from government intervention, to opportunity recognition, to why you must be tenacious.

Knowledge@Wharton: That's actually an interesting story, but I have one other question about a growth area in Nigeria. What exactly is "Nollywood?"

Bamkole: Ah, okay.

Knowledge@Wharton: We just learned that word today.

Bamkole: You know, in the last maybe five or six years, this is an industry that has been growing significantly in Nigeria. It is named after Hollywood and Bollywood, so I understand that Nigeria's Nollywood is now the third-fastest growing entertainment industry in the world. It is actually very interesting that [this] is now becoming a major area of focus for us, so much so that early this year, actually at the Lagos Business School, we organized a one-week program for those in the industry, and by next year we are actually going to get a lot more involved in the area of scripting. Maybe not production, but content-making, so scripting is an area that we want to be part of, because it is a way of telling the whole world about who you are, and shifting the minds of people. So we see it as a tool, just like the government, too, has been seeing it as a tool.

The image of Nigerians can naturally be managed through this type of thing, and if you go to the U.K., everywhere you will see ... that [the] demand is there. You can see it, you can feel it. Now, I believe the demand has largely been driven by the Nigerians in diaspora, followed by the Africans in diaspora. [For about two to three years there has been] a DSTV channel, the cable channel, that is actually dedicated to African movies, and I can tell you about maybe 60-70% of it comes from Nigeria.

Knowledge@Wharton: Well, I think maybe we'll wrap this up with one question: What has been your experience here at Wharton, and what information, knowledge, etc., will you take back with you to Nigeria?

Bamkole: When we look back at our sojourn here, we'll actually refer to it as an academic retreat, because it has given us the opportunity to sit back and reflect on what I call the "fast-moving train" that we have gotten ourselves into about three years ago. Entrepreneurship, development, was something new in Nigeria, but very common in Western countries, and about two years ago, we went to the major universities with enterprise centers, and Wharton was one of them. We went to Stanford, we went to MIT, we went to London Business School, we went to Switzerland, we went all over the place. Coming out of that we felt that the model that exists in Wharton is what we wanted to choose, and that was what informed our coming back here for six weeks to study more in detail how they operate and how they connect with the business community.

For me, the major thing that I see, going across the campus, is the fact that what is being taught in class is brought down to reality in the lives of the students and what they do, and that is where you see students being consultants at the SBDC (Small Business Development Center), for instance. They are able to connect their management [classes] with what is happening in a small business, and they can recognize quickly that this guy, the way he is going, is going to have cash flow problems. And cash flow is no longer theoretical paperwork in class anymore, but they can actually see the implication in the life of a small-businessperson that they are working with. So that, for me, was something major.

Secondly, they are very careful about documenting processes and outcomes. I think the outcomes one is likely due to SBA requirements, which we don't have, but beyond the SBA requirements, the fact that you are able to document your processes helps you to consistently control the outcome. That is one learning point that I am taking away from here, because we have been largely entrepreneurial in what we have done, and we now need to start documenting some of the processes which we have.

We have also used the opportunity to rewrite our own strategic plan, and going forward from here there is another challenge or burden that we carry. We need to take entrepreneurship to Africa, not just Nigeria, but to Africa. Because we have been working with the World Bank, and our model now is sustainable, we don't get grants from government, we don't get grants from anywhere, so it is basically fee-for-service that we do, and our relationship with the business community that keeps us going. So, we want to now replicate this across some selected African countries, and let them also see how entrepreneurship can develop, not just in Nigeria, but also Africa, and that hopefully will be accomplished by an African casebook.

It is estimated that the informal sector accounts for over 60% of Nigeria’s GDP and represents a source of livelihood for about 70% of Nigerians.

I believe that this sector of Nigeria's economy is not included in her official GDP, because it is quite difficult to quantify

Please folks, I'm dying to see a render of the ABUJA MILLENIUM TOWER.

Help :nuts:

Great to hear, but when will the 60% of Nigerian Literates get A STABLE JOB!!

Great to hear, but when will the 60% of Nigerian Literates get A STABLE JOB!!

Man, you are Nigerian, you should be able to answer the question yourself!:)

Why did we wait again so long??:ohno:

Obasanjo to open ‘Outsourcing Conference’

March 5th, 2007

President Olusegun Obasanjo will declare open Nigeria's first International Outsourcing Conference in Abuja scheduled to hold from March 21 - March 23, 2007.

IHEANYI NWACHUKWU

The conference is part of the Federal Government's efforts to launch the country's National Outsourcing Strategy (NOS).

Following a year of research and preparation, the government has appointed the National Information Technology Development Agency (NITDA) as responsible for the execution of the national strategy.

NITDA has partnered with AITEC Africa, as the leader in ICT conferences across the continent, to host the first International Outsourcing conference in Nigeria.

One of the highlights of the conference will be the launching of the National Outsourcing Association.

It will also be the first time that Nigeria will be officially positioning itself as an outsourcing destination to the rest of the world.

Following the government's lead, Dimension Data announced its support for the conference as lead sponsor. The Nigeria International Outsourcing Conference will provide a marketing and education platform to promote outsourcing as an industry in Nigeria. It will bring together all stakeholders, locally and internationally, to lay the foundation for a Nigerian outsourcing industry.

"The Nigeria International Outsourcing Conference will provide practical business and technology briefings to empower resellers, service providers and users to maximize their returns on the increasing investment that they will be making in the outsourcing sector over the coming years," said Sean Moroney, chairman of AITEC Africa."By providing a platform for vendors, service providers and users to network and share knowledge, the conference will act as a catalyst to continue the momentum established by NITDA".

"The event will include a two-day conference and practical implementation workshops on the third day. Topics to be covered in the conference include: outsourcing challenges and opportunities, international linkages, contact centre strategies & technologies, BPO implementation, capacity building, setting goals for future growth, business opportunities showcase", said Sean.

A local Nigerian company:banana:

Nigeria´s Globacom Lays Cable Across 16 Countries

By Frances Ovia, 03.06.2007

Globacom Limited, Nigeria´s second national carrier has concluded arrangements to launch its submarine cable, Glo-1, which will link 16 African countries. It will start from Lagos to London and through a dedicated link on Apollo 2 to the United States of America.
Globacom officials who confirmed the story explained that with the increasing bandwidth requirement of Nigeria and West Africa, there is the urgennt need to address the problem.
The company said it is investing massively in Glo-1 Submarine cable project and revolutionise communication in the whole of Africa.
The project is made up of a trunk cable linking Nigeria (Lagos) and England (Bude) with Branching Units in Spain (Vigo), Portugal (Simsimbra), Morocco (Casablanca), Senegal (Dakar) Mauritania (Nouakchott) Sierra Leone (Freetown), Liberia (Monrovia), Togo (Lome), Cape Verde (Praia), Gambia (Bamjul) Guinea Bisau (Bisau), Guinea (Conakry) Cote d'Ivoire (Abidjan), Benin Republic (Cotonou), Ghana (Accra), Nigeria (Bonny).
It was also confirmed that the submarine link has a capacity for 32 channels with each channel holding 10 gigabits per second or STM 64 Dense Wavelength Division Multiplaxing.
This makes available tremendouscapacity for the three dimensional communication available in the -Voice, Data (internet/IP) and video.
At the moment, the only such facility in Nigeria is the 2 STM which hardly meets the growing communication needs of the country as the facility is shared by over 32 members and 16 countries in Africa.
This project being undertaken by Alcatel Submarine networks, the world's leading provider of cable infrastructure will connect West Africa to UK (with a dedicated capacity to the USA) on a 32 channel STM64 fibre optic cable capacity.

Sounds great!! :) Any clues on when the completion date might be? Guess it's gonna take a loong time.

Boom in public offers

March 7th, 2007


To usher in the second phase of the consolidation exercise in the banking industry, many banks are accessing the capital market for additional funds.
Godfrey Obioma

These banks include UBA, Oceanic Bank, Diamondbank, First Bank and Afribank. Also in the pipeline are Bank PHB, Access Bank, GT Bank, First Inland Bank and IBTC Chartered Bank.

UBA is offering for public subscription, 1,127,400,000 ordinary shares of 50 kobo each at N35 per share and rights issue of 423,600,000 ordinary shares of 50 kobo each at N34 per share. It hopes to realise N54-billion from the offers.

Oceanic Bank is floating 3,357,993,373 ordinary shares at N16.50. First Bank is said to be getting set to raise N100-billion from the market. In all, about N400-billion is expected to be reaped through these offers.

If the experience of the first phase of the consolidation exercise is anything to go by, more banks will follow suit.

Further bank recapitalisation has become necessary following the need for these financial institutions to play in the global market and create new frontiers.

However, there are concerns in some quarters that the market may not have the capacity to justify and accommodate the jumbo offers. Some would rather prefer that these offers are spread over time to ensure full subscription. There is also the worry that the bunching of the new issues could crowd out non-bank companies that would want to come to the market for funds.

But financial market analysts say the fear of market capacity should have been allayed by now, following the success stories of these banks in 2004 during the first recapitalisation exercise. Their offers were over-subscribed.

Ndi Okereke Onyiuke, director-general of the Nigerian Stock Exchange, said doubting Thomases were proved wrong when virtually all the new issuing banks recorded oversubscriptions in 2004. Many market analysts share her optimism, citing the current rising liquidity in the economy compared with the level in 2004. This is why many stocks are currently bullish.

In 2004, many investors had to off-load their shares in the secondary market on the floor of the stock exchange to take positions in the primary (new issues) market, leading to a slide in stock prices.

Market watchers believe the rising liquidity in the economy suggests that these jumbo offers are not likely to face subscription problem.

Ayodele Akinwunmi, an investment analyst with CountersTrust Securities Ltd, said some of these offers would be snapped up by foreign investors. Akinwunmi also believes that the naira appreciation against the dollar will stimulate foreign investment as such offshore investors will reap growth in the investment value.

He also shares the view that the economic reform and outlook have created investors’ confidence in the economy.

According to him, the decline in inflation to eight percent means that those taking positions in many Nigerian stocks will earn higher returns than the rate of inflation.

The performances of these banks since the first consolidation programme are expected to excite investors. But dealers say they should not rest on their oars, as their simultaneous coming to the market would trigger competition among them for money from the capital market. This, they say, calls for local and international promotion to market the returns prospects for their offers.

Stock brokers are of the view that the new move to further boost capitalisation will enlarge shareholders’ base and challenge banks to design products and other innovations that will bolster their earnings and returns to shareholders.

Their advice is based on discoveries that although banks’ profits and total dividends have been growing since the first consolidation, earnings per share and dividends per share have been dropping in most of the banks, a development that is attributable to the enlargement of shareholder base amid huge but relatively idle capital.

Ariyo Olushekan, managing director of Capital Assets Limited, believes banks should device strategies that would enable them grow income and profit so that they could pay higher dividend or plough back their profits for increase in bonuses.

Sounds great!! Any clues on when the completion date might be? Guess it's gonna take a loong time.

No, I don´t maybe someone has to check their website!

The Permanent Secretary, Lagos State Ministry of Health, Dr. Jide Idris has said that from Monday, 12th March, 2007the state government will commence free health services to all Lagosians.
Addressing a press conference to kick-start the Eko Free Health Programme, Dr. Idris said the free health programme would start from Alimosho General Hospital, Igando, in the Lagos West Senatorial district from Monday, 12th to Friday, 16th March, 2007.
Dr. Idris said the programme would include free consultation and treatment of various ailments, including surgical operations for the correction of hernia, appendix, abdominal swelling, lumps, gynecological problems, among others, adding that there would also be screening for and treatment of hypertension, diabetes, eye diseases and dental problems.
He urged corporate and non governmental organizations to partner with the government to improve health care delivery in the state.

More good news for Nigeria´s massive gas reserves which are way bigger than its oil reserves!:banana:


Government awards Train 7 Bonny LNG contract

March 4th, 2007

The planned Train 7 of the N1.1-trillion (about $8.5-billion) Bonny Island plant of the Nigerian Liquefied Natural Gas project in Finnima, Bonny Island of Rivers State has inched closer to reality.

EJIOFOR ALIKE

The Federal Government last week sealed a contract for the project design and specification with a US firm.

Foster Wheeler Limited announced last week that government awarded the contract to its UK and Nigerian subsidiaries —Foster Wheeler Energy Limited and Foster Wheeler (Nigeria) Limited. They are both part of its Global Engineering and Construction Group. The contract will be executed in conjunction with Chiyoda Corporation.

The contract, sealed with the Nigeria LNG Limited (NLNG) was for the specification, or front-end engineering design, of the SevenPlus project.

The NLNG Train SevenPlus project involves the construction of two new natural gas liquefaction trains, each producing 8.5-million metric tons of LNG a year at Bonny Island LNG complex.

BusinessDay has gathered that on completion, the projects will be the two largest LNG trains in the world.

The shareholders in NLNG are Nigerian National Petroleum Corporation (NNPC), 49 percent; Shell Gas B.V., 25.6 percent; Total LNG Nigeria Limited, 15 percent, and ENI International (N.A.) N.V. S.a’r.l., 10.4 percent.

"We welcome Foster Wheeler’s leadership in our plans to design and build the world’s two largest LNG trains in Nigeria. Foster Wheeler has over 30 years experience in Nigeria and brings substantial LNG liquefaction expertise from other LNG projects in Australia, the Middle East and the Far East," says Chinasa Ego-Osuala, expansion co-ordinator, Nigeria LNG Limited.

The terms of the contract were not officially disclosed.

A source close to the company told BusinessDay that the contract value and other commitments were in excess of N96.3-billion.

By the terms of the contract, Foster Wheeler and its joint venture partner will produce a project specification package, which will form the basis for an invitation to bid for an engineering, procurement and construction contract.

"Foster Wheeler is proud to be leading this joint venture. This award demonstrates NLNG’s confidence in the quality and experience of our technical experts and our LNG track record. We are committed to working with NLNG to meet its objectives including safety, quality, cost, schedule and local content," says Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited.

Government has put a number of LNG projects in place in an effort to make the country the world’s second largest LNG producer after Qatar by 2011, and transform it from an oil nation to a gas nation by 2020.

Aside the Bonny LNG, the Brass LNG project in Bayelsa State and the proposed Olokola (OKLNG) on the south-western part of the country are some of the government’s efforts in this direction.

The proposed project will comprise four LNG trains of approximately 5.5 mtpa each, with the development envisaged in two phases of 11 mtpa capacity.

BG Group has a 13.5 percent share in the project and the remaining partners are NNPC, 49.5 percent; Chevron OKLNG Holdings Limited, 18.5 percent, and Shell Gas and Power developments B.V., 18.5 percent.

Foster Wheeler Ltd is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services.

Splendid.

A Nigerian company aquiring stakes in a UK company, that is news I have been waiting for!:banana: :) Now it is set to become an important big company! Read it!


Shoreline Acquir[es Costain West Africa

By Crusoe Osagie, 03.12.2007


Shoreline Energy International Limited, a closely held firm with Nigerian interest, has acquired controlling interests of Costain Group Plc UK in Costain West Africa Plc., making it the new owner of the construction firm.
Managing Director of Shoreline Energy International, Mr. Kola Karim, described the acquisition as central to his company’s strategy of becoming the leading infrastructure solution provider in Africa.
“This is the second big acquisition we have made in West Africa in the last two years and it is in line with our goal of becoming the foremost infrastructure solution provider on the continent”, Karim said.
He disclosed that a technical service agreement is in place with Costain Group Plc UK to continue to support Costain West Africa Plc’s various projects across West Africa.
“We already have substantial stakes in the infrastructure sector in East Africa and will be in the same position in Southern Africa when we complete a major acquisition which is at an advanced stage of negotiations,” Karim added.
Managing Director of Costain West Africa Plc, Mr. Phillip Wharton, also said the divestment by Costain Group Plc, will not impact negatively on the operations of the company.
He expressed optimism that Shoreline would bring vigour, new ideas and much needed investment into Costain West Africa Plc which will enable the company to re-strategise in order to regain its position as the leading engineering company in the region.
“I am excited at having Shoreline Energy Intern-ational on board. Over the last few months working on this acquisition, I have been impressed by the energy, dynamism, commitment and ideas of Shoreline Energy International. I am convinced their presence will make a huge difference to Costain West Africa Plc”, he stated.
Shoreline already has substantial investment in Nigeria. In 2005, its subsidiary, Shoreline Power Company Limited, acquired the manufacturing arm of ABB Nigeria, ABB Electrical Systems Limited, making it the only Original Equipment Manu-facturer (OEM) for ABB products in Sub-Saharan Africa.
The company’s focus has been on power distribution infrastructure development in Africa and through another subsidiary, Agbara Shoreline Power Company, it is also building an 100MW power plant in Agbara Estate.
Shoreline Energy International also has substantial interests in the telecommunications sector through its subsidiary, Fortis Construction Limited.

Nigeria: Soludo Opens New UBA Office in New York

By Eromosele Abiodun, 03.12.2007


Another vista was opened in Nigeria’s financial landscape Friday when Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo, declared open the new office of United Bank for Africa Plc, at the Rockefeller Plaza, located in the heart of New York’s financial district.
Speaking at the occasion, Group Managing Director /CEO of UBA Plc, Mr. Tony Elumelu said the event was an important milestone for the bank and thanked Soludo for making out time to open the new office.
He noted that, “New York is the centre of UBA’s North American business and is a springboard for an African focused franchise, aimed at companies and individuals located in this part of the world who do business and maintain links with Africa”
The glamorous ceremony was attended by regulators, well wishers and prominent international businessmen.
UBA is the only sub-Saharan African bank operating in the United States of America and is regulated by the office of the Comptroller of Currency.
UBA New York branch provides banking services specifically in the following strategic business areas; corporate banking with focus on energy, treasury and propriety trading, missions banking, correspondence banking and trade finance as well as remittances.
The event comes at a time when the bank is in the capital market to raise N54 billion through a hybrid offer of 1,127,400,000 ordinary shares of 50k each offered at N35 per share to the investing public and a rights issue of 423,600,000 ordinary shares of 50k each at N34 per share, to existing shareholders.
With less than two weeks into the capital raising exercise, there has been a rush for the UBA shares on offer as investors are said to be keen on buying into the UBA success story.
The capital raised in this transaction will be used for the bank’s international expansion strategy, and branch rollout plan. UBA also plans to upgrade existing branches and enhance its operating resources, including automating all the bank’s offices and processes, as well as to expand the bank’s ATM Rollout and other non-ATM Electronic channels.
These activities will further strengthen the bank’s position for superlative performance and increase service delivery in the future.
UBA has firmly established its position as the largest financial services institution in Nigeria, in terms of balance sheet size and contingents (over N7 trillion), branch network (over 500), customer base (16 million active customer accounts) and other key parameters.
The bank’s rating as the largest bank in Nigeria received a boost in February 2007 from Agusto & Co, the renowned financial analysis company, which ranked UBA in its latest industry analysis, as the number one bank in Nigeria by various financial parameters.
In addition, UBA received the Bank of the Year accolade in this year’s THISDAY Awards for Excellence.
The strategic intent of the bank is to leverage its dominance of the Nigerian financial services landscape into Africa and beyond. UBA’s ambition is to dispel the myth that nothing good comes from Africa by establishing a global brand that will become the bank of choice for transactions involving Africans and African businesses wherever situated on the globe.

PS: Nigeria, get more aggressive, show the world your teeth and dispel the still largely held view that Africans are "incapable" and "incompetent" people!:cheers:

The most important news coming out today is that a Nigerian company aquired controlling capital stakes in a UK company! (see article on page 3):)

$1.1bn West African Gas Pipeline Ready

From Onyebuchi Ezigbo in Abuja, 03.12.2007

The $1.1billion dollar 630km West African Gas pipeline (WAGP) has been completed and may be commissioned this month, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun, has said.
Kupolokun, who spoke to newsmen at the weekend in Abuja on the state of government's gas utilisation efforts, said the ceremony marking the commissioning of the project will be performed by the president, Chief Olusegun Obasanjo.
The GMD also said the Federal Government has proposed a new gas price regime to be pegged at 40 cents (about N50) per standard cubic feet as a measure to promote more investment into the sector.
The ambitious sub-regional gas utilization project was embarked upon under a deal between Nigeria and her West African neighbours, Ghana, Benin Republic and Togo to enable the supply of gas through a pipeline network stretching up to about 630Km from the Niger Delta area through Lagos to Benin Republic and on to Ghana.
The WAGP will traverse 620 miles (1,033 kilometers) both onshore and offshore from Nigeria's Niger Delta region to its planned terminus in Ghana.
The first portion of the pipeline, which will deliver gas to the greater Lagos area (Alagbado), is already in existence. WAGP estimated to gulp $500m will initially transport 120 Mmcf/d of gas to Ghana, Benin and Togo begining in June 2005.
Gas deliveries are expected to increase to 150 Mmcf/d in 2007, to 210 MMcf/d in 7 years and be at 400 Mmcf/d when the pipeline is functioning at its capacity (approximately 15 years after construction).

It is estimated that $600 million will be spent on the development of new and renovated power facilities in the four states to utilize the gas.
It is also possible that the WAGP will be extended to markets in Cote d'Ivoire. Speculation has the WAGP eventually terminating in Senegal, but the current regional stability problems of several countries (Cote d'Ivoire, Liberia, Sierra Leone) that lie on the way to Senegal, will hinder any further extension of the WAGP.
The Escravos-Lagos pipeline (ELP) was commissioned in 1989, supplying natural gas to Nigeria's Egbin power plant and other industrial consumers in Lagos and Ogun States. ELP has a capacity to handle nearly 900 million cubic feet per day (Mmcf/d) of natural gas, but currently the majority of this capacity is not utilized. A 34-mile (57- kilometer) onshore portion of the WAGP will run from Alagbado to Seme beach in Lagos State.
The WAGP will continue offshore, with proposed landfall spurs at Cotonou (Benin), Lome (Togo), Tema (Ghana), Takoradi (Ghana) and Effasu (Ghana). The initial capacity of the WAGP will be 200 Mmcf/d, with the capability to expand to 600 Mmcf/d as demand grows.
Four nations, Nigeria, Ghana, Togo and Benin Republic signed a 20-year agreement on the implementation of the WAGP which provides for a comprehensive legal, fiscal and regulatory framework, as well as a single authority for the implementation of the project. The WAGP partners are ChevronTexaco with 36.7%, NNPC with 25%, Shell with 18%, Ghana's Volta River Authority (VRA) with 16.3% and SoBeGaz and SoToGaz each with a 2% interest.
Speaking on the new gas price, GMD said the proposed price of 40cents per standard cubic feet is yet to take effect until the Gas Bill now pending at the National Assembly is passed and signed into law. "The new gas price will become effective the day Mr. President appends his signature to the gas Act ", he said. He said the proposed gas price part of the Gas Fiscal Policy, intended to monitise gas from 4 to 10 cents in order to attract investment and greater revenue to the industry. He said FG's drive to promote gas exploitation has yielded a lot of results and has even posed a chellenge on how to meet demands for gas both from within and outside the country. "There is a plotoria of challenge to meet demands for gas today, so we must go out there aggressively to develop existing gas fields and bring them to rpeoduction to meet the commencement dates of these projects" He said the new gas price structure took along with the signing of the gas bill into law late last year. On the continued shortfall of gas supply to power plants operated by the Power Holding Company of Nigeria (PHCN), Kupolokun said the problem is tied to the yet-to-be repaired Excravos gas pipeline in the Channomy creeks of the Niger Delta region. "The Excravos gas pipeline that was vandalized by the militants has knocked-off substantial volume of gas supply to the power sector", he said, adding that contractors handling the project has given an assurance on the completion of the repair works between late April and first week of May. An industry analyst told THISDAY that the price increase will bring gas up to a commercial parity, that is the international price which will force PHCN and other users of the commodity to up their performance. According to them, Nigeria loses a lot income by giving gas at a subsidized price to PHCN, adding that the situation is holding down the sector never and not allowing it to come alive. "All the while, because the power company got gas at a subsidy, they had no reason not to perform uptimally and recover all money", he said. Nigeria has, with about 232 trillion cubic feet of gas, and is the 8th largest gas reserve holder in the world. Government made a strategic policy shift towards the commercial exploitation of gas resources and from that many gas production facilities such as Escravos Gas to Liguid, Brass NLNG and Ok LNG were embarked upon. Apart from introducing a viable price, the Gas Bill is proposing the establishment of the Nigeria Gas Regulatory Commission (NGRC), that would play a similar role that the existing Department of Petroleum Department (DPR) and the commercialisation of the Nigerian Gas Company (NGC). Under the gas master plan, FG has implemented a number of projects such as the West African Gas Pipeline project, Multi-billion Dollar Olokola Gas project in Ondo State, Trans-Saharan Gas Pipeline Projects and the implementation of the Brass Liquefied Natural Gasb(LNG). The Master plan represents a road map that shows what is on ground and how best to tap it. Among the gas monetization strides of government is the deal to supply Equatorial Guinea about 600 - 800m standard cubic feet per day of gas. Under the agreement which was entered between NNPC, and the Equatorial Guinea's Ministry of Mines, Industry and Energy, about 600-800m standard cubic Feet of liquefied natural gas per day to that country's EGLNG train 2.

:)


UBA Acquires Two More Nigerian Banks: City Express And Metropolitan Banks

http://www.cbcglobelink.org/cbcglobal/meetings/past/africasme/images/uba_small.jpg

From Kunle Aderinokun in Abuja, 03.12.2007

The Nigeria Deposit Insurance Corporation (NDIC) said at the weekend that United Bank for Africa Plc (UBA) has placed its bid to acquire City Express Bank and Metropolitan Bank, two of the 14 failed banks, by way of Purchase and Assumption (P and A).
Purchase and Assumption (P and A) otherwise called “Cherry Picking”, is a resolution Transaction, in which a healthy institution purchases some or all of the assets of a failed bank and assumes some or all of its liabilities including all insured deposits.
Only last December, UBA acquired Trade Bank Plc through P and A and has commenced offering of banking services to the latter’s customers through its (the failed bank’s) outlets.
Managing Director, NDIC, Mr.Ganiyu Ogunleye who made this known weekend in Abuja in an interview with select-journalists, said the corporation had early this year re-offered the two failed banks to the stronger banks for purchase and assumption but only UBA bidded for them and assured the deals on them would soon be concluded. “…I am aware we have gone far with two other banks. These are City Express Bank and Metropolitan Bank. But we have not concluded. I believe before long we will be able to conclude. “Only one bank bidded for the two failed banks and the bank is United Bank for Africa Plc,” he disclosed Ogunleye explained that P and A was adopted for the failed banks to allow customers to continue to have access to banking services, thereby assuaging their suffering, instead of just paying them their insured deposits of N200,000 after liquidation. He argued that, the NDIC was not keeping depositors of failed banks waiting, noting that customers of the failed banks through P and A by strong and healthy were enjoying banking services and unfettered access to their accounts. He however pointed out, the customers of the yet-to-be handled failed banks by NDIC were being delayed by court suits filed by their directors. According to him, “you seek to put the issue in context if you are talking about depositors being kept waiting. The fact that the depositors had not have access to their funds is not our making because we are ready at any point in time. If you talked of insured deposits, it is an obligation. We are ready to pay at any time. But, part of the issue we have today is that we have adopted the purchase and assumption strategy whereby instead of paying individual depositors we still want them to have access to banking services by encouraging the banks in operation to acquire some of these failed banks. If a stronger bank acquires a failed bank what will normally happen is that customers of the failed bank will become customers of the stronger and healthy bank. So, the customers still continue to have access to their accounts and bank services. It is not a case of everybody coming to queue up to collect his or her money. “The ones that are delayed, like I said, is not our making. It is because some of the shareholders and directors of those banks were to court. And if people go to court you have to have for the decision of the court. We have no control over court processes. But, we are doing our best to make sure that the cases are determined as soon as possible within the legal requirement.”

Do you still remember the news about the construction start of that magnificient 600 Million $ project called "Malaysia Gardens" that has taken off in Abuja recently, now an Indonesian conglomerate has come to get their pie of Nigeria´s still very juicy real estate sector.



Indonesian firm to build ‘cities’ in Nigeria

March 11th, 2007


Barring last-minute hitches, Lagos, Abuja and Port Harcourt will be beneficiaries of ultra-modern city developments, compliments of an Indonesian firm.

VINCENT CHUKS IGBINEDION

The firm, Ciputra Group, has already made a series of visits to Nigeria and has had discussions with government officials on the feasibility of establishing the projects in the country.

Charles Okoye, managing director/chief executive officer of UBN Property Co. Ltd, in an exclusive chat with BusinessDay in Lagos, says the firm has universal reputation for self-contained city development and the founder of the company, Ir. Ciputra, is highly excited at the prospects of investment in Africa, particularly Nigeria.

According to Okoye, Ciputra discussed the prospects of the project at a congress of the International Real Estate Federation. This followed a country tour to Nigeria by the immediate past president of the federation, Dato’ Alan Tong Kok Mau, last year.

Alan Tong, a Malaysian popularly called the Condo King (he is said to own about 80 percent of the condos in Malaysia), had during the visit advised that city developments in [B]Nigeria should henceforth be vertical, that is, developers should concentrate on high-rise buildings rather than the conventional low-rise buildings that dot the cityscape. He made the recommendation bearing in mind the cost of land, especially in such cities as Lagos, Abuja and Port Harcourt.

Ciputra Group is a consortium established in 1984 for the specific purpose of planning, developing and managing the Bumi Serpong Damai new city project on 6,000 hectare site located south west of Jakarta — the first self-contained city.

Okoye, who is the Africa regional president of the federation, says the group specialises in large-scale developments, starting from 4,000 hectares of land. He adds that officials of the firm have had series of discussions with Nigerian embassy officials in Jakarta, before they met at the real estate forum. The real estate federation is an association of professionals in the industry with headquarters in France.

The current president, Owen Gwyn, has confirmed the interest of the Indonesian company in the development projects.

This development is coming after the Malaysian Gardens project, a large-scale city development programme being executed in Abuja, the Federal Capital Territory. Also last year, developers of The Paddocks, an N18-billion self-contained upper-end estate, unveiled the project. It was funded 80 percent by an Italian firm.

Founded in 1981 by Ciputra and members of his immidiate family, the Ciputra Group pioneered housing development adjacent to Jakarta International Airport.

It specialises in large-scale, integrated projects; combining housing, commercial and recreational centres, and mixed-use developments including hotel, shopping and office-complexes. The Ciputra Group went public in 1994.


PS: We need to watch out!:)

An article of the current revamping project on Lagos Island


Giving Lagos Island a facelift


By Jude Njoku & Kingsley Adegboye

Posted to the Web: Monday, March 12, 2007

Lagos Island is unarguably the hottest business district in the country. The district which houses the tallest buildings competing for visibility was the toast of property investors and other blue chip companies until the late 1980s and early 1990s. Reason? The area decayed so terribly that many of these corporate organizations that had their head offices in the district soon started relocating to Victoria Island and South West Ikoyi.

The menacing activities of street urchins popularly called area boys and street traders compounded the environmental problems of the city centre. Persistent calls for action by the Lagos Island Millennium Group on the Environment (LIMGE) and similar non-governmental organizations (NGOs) on the government to check the downward slide in the fortunes of the CBD fell on deaf ears until recently when the state government embarked upon massive redevelopment of the Island. Lagos Island stakeholders who spoke on the impact of the ongoing rehabilitation project thumbed up the government.

Property values begin to appreciate

Prior to the ongoing redevelopment of Lagos Island, most banks and blue chip companies relocated their head offices to Abuja, Victoria Island and South West Ikoyi. The situation was so bad that most high-rise buildings in the Business District became virtually unoccupied. Property owners in the area under the aegis of the Lagos Island Millennium Group on the Environment (LIMGE), cried out to the state government to commence a redevelopment of the city centre and check the excesses of miscreants popularly called area boys. Their plea initially fell on deaf ears until the government flagged off the present renewal effort.
Second Vice President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Osita Okoli said the situation is now changing and property values are going up again.

He was answering a question on whether the menace of the street urchins will not jeopardize the current renewal efforts and what impact the redevelopment will have on property values. Hear him: “Most definitely, properties will appreciate.

"To start with, the major reason why properties depreciated in Lagos Island wasn’t because of the human factor; it wasn’t because activities of area boys and their menacing impact on the society; It was because the area was blighted. The streets were almost impassable due to many street sellers.

" So, I am confident that upon the conclusion of the renewal efforts being undertaken by the Lagos State government in providing roads, drainages and such other infrastructure, Lagos Island will be given a rebirth. Property values are in fact already on the upward swing. Rentals in this property have increased and I expect that rentals will increase on other properties as well.

"Management of the human factor is an easy problem. It is something that requires a bit of tact on the part of the state government and it can be done; provide jobs for them, get them actively employed and they will be out of the streets. There is no way the human factor can override the infrastructural development of the city centre and this is the major thing. All over the world, you have crime and criminals in the city centres and Central Business Districts (CBDs). In Johannesburg, New York City, Washington DC, London and Frankfurt. I have been to many capitals around the world, even in Asia, there is crime everywhere.

" It is just a matter of management. The current construction of roads and drains will enhance the management of such people because if the law enforcement agents are trying to track or chase them, it would be easier to get them when the roads are passable than when they are impassable. Is there a glut of vacant properties in Lagos Island? This was the question VF put to Mr. Okoli and he responded thus: “

To the best of my knowledge, there are still some fallow buildings, but they are being snapped up. But I can tell you that as the development progresses and people begin to see the impact the development is making, many of the banks and financial institutions that have moved to Victoria Island may reconsider and come back to Lagos Island because Lagos Island will be easier to access. It is nearer to the mainland; it is more central and traffic would be easier to manage. In fact, Lagos Island has a more beautiful view. Look at the lagoon just there. I can tell you, Lagos Island is coming back to life”.

The state government

Lagos State Government at the weekend assured that the ongoing facelift of roads which is the first stage of the government’s redevelopment programme of the Central Business District (CBD) in Lagos Island is expected to be completed in the next two months. The second stage which is the construction of shopping malls with entertainment complexes and more office towers is also expected to commence immediately.

Speaking to our correspondent, the Lagos State Commissioner for Physical Planning and Urban Development, Mr. Francisco Abosede said the completion period for the road work which commenced in October 2005, was 18 months which is supposed to come to an end in April this year.


The Commissioner who said street traders in the CBD will be moved out to allow for free flow of traffic on the upgraded roads, also noted that the state government has plans to engage the touts popularly known as Area Boys in the area in order to get rid of area boys’ activities in the Island, explaining that the government will train them in different kinds of craft works so that they can become useful to themselves and their society. He noted that the government already has a centre for the training of area boys to artisans.

Explaining that the economic potentials of the CBD will be further boosted with more investors coming to the area after the completion of the redevelopment programme of the Island, he said the companies that left the area because of its previous deplorable condition have started returning to the CBD because “they are seeing things happening in the area” Abosede noted.

Great news, especially the last two articles. Thos projects will transfoem the whole of Lagos's skyline:)

Do you still remember the news about the construction start of that magnificient 600 Million $ project called "Malaysia Gardens" that has taken off in Abuja recently, now an Indonesian conglomerate has come to get their pie of Nigeria´s still very juicy real estate sector.





PS: We need to watch out!:)

Nice to hear that, I hope they build quality homes and not some "cut-and-patch" crap some of these firms do sometimes.

ooohh pappy, you really drive me crazy, man! Instead of trying to look for projects, you simply leave embittered comments, people with such a negative viewpoints on Nigeria while enjoying a life of glee abroad are really the graveyard of our country!

Btw, Have you ever been to Malaysia and see what people have built there, I doubt it otherwise you would not have left such a comment...it is way better than the vast majority of "cut-and-patch" houses you find scattered allover the USA!

Sorry Matt, I didn't mean to drive you crazy. lf you read what I posted you'd realize that I commended the development. However if wanting nothing but the best for my country is a crime I plead guilty.

Zenon Gets N193.5bn from 10 Banks


In an unprecedented landmark deal, Zenon Petroleum and Gas Limited, Nigeria’s leading importer of refined petroleum products, weekend got a $1.5 billion (N193.5bn) loan facility from a consortium of banks including the French BNP Paribas and nine Nigerian banks.
The nine Nigerian banks involved in the project are: Access Bank, First City Monument Bank (FCMB), First Bank, GTBank, Interc-ontinental Bank, Oceanic Bank, Bank PHB, United Bank for Africa (UBA) and Zenith Bank. Zenith Capital, a subsidiary of Zenith Bank, also acted as the financial adviser for the deal.
Speaking at the signing ceremony held at the head office of Zenith Bank in Lagos Friday, Mr. Femi Otedola, chief executive officer of Zenon, said the facility would be directed essentially at building new retail outlets in order to alleviate the “problems associated with access to refined products at the retail level” in the country.
According to him, Zenon stepped into the downstream sector of the oil and gas to bridge the existing gap between petroleum products supply, storage and distribution.
This, he said, led to the building of the 80 million litres storage depot at Ibafon and another 75 million litres capacity depot in Apapa, the combined capacity of which remains the largest storage facility by any indigenous oil company in the country today.
Otedola said further that strengthened by the facility, Zenon intends to build the largest PMS (premium motor spirit) storage facility in Africa.
The firm, Otedola also said, is equally planning to set up retail outlets for kerosene to enable it reach out directly to consumers of its products at affordable prices; having successfully done so with diesel.
“In order to alleviate the problems associated with access to refined products at the retail level, we have embarked upon the process of reaching our customers through new retail outlets under the trade name of Zenon Direct. Very soon there will be many Zenon Direct outlets in your various neighbourhood. This would make it easier and cheaper for every household to have access to refined petroleum products”, Otedola said,
He added that the “company has also diversified into new areas – notably, trucking, shipping and real estate. We believe that within the shortest possible time the Zenon Brand would stand very tall among other distinguished brands in the country”.
Speaking on behalf of the participating banks, Mr. Jim Ovia, managing director of Zenith Bank, added that the facility which would serve as working capital and trade finance for the firm, is the largest single facility ever arranged for any company in the oil and gas sector in Nigeria.
Ovia said the loan will guarantee steady supply of petroleum products and further strengthen Zenon which already has the largest storage facility for refined products in Nigeria.
He said the decision by the banks to come together to facilitate the loan was borne out of the confidence the banks have on Zenon, while the involvement of BNP Paribas represents international endorsement for the mega deal.
The event witnessed massive representation by participating banks, among them the managing director of Oceanic Bank, Mrs. Cecilia Ibru, and her Access Bank counterpart, Mr. Aig Imokhuede and that of FCMB, Mr. Ladi Balogun.

Oceanic Bank, others eye 4th Mainland Bridge financing

LAGOS—OCEANIC Bank International Plc and other Nigerian banks are currently studying the development of the 4th Mainland Bridge which is on the drawing board for private sector financing. Disclosing this at Oceanic Bank Investors’ Forum in Lagos, last Friday, Managing Director of the Bank, Dr. Cecilia Ibru,who said one of the reasons Nigerian banks were going back to the capital market for more funds was to be able to finance big projects which used to be dominated by foreign banks.

The 4th Mainland Bridge is expected to take traffic from Lekki to Epe, Ikorodu and Shagamu thereby easing the traffic problem in Lagos. It is probably the most ambitious plan as it will displace 3rd Mainland Bridge as the longest bridge in Africa, but this time it would be built with private capital.

Dr. Ibru said Oceanic Bank went to the market to expand its shareholders’ funds that would give the bank the opportunity to lend more to single but large projects which a lower level of shareholders' fund would not allow. She said when she saw the plan for the 4th Mainland Bridge and the attendant advantage to the economy, it “blew my mind and we are preparing to be part of the development of the bridge.”

She said with adequate funding, Nigerian banks were prepared to lend long term for the development of the country and in particular, gearing up to participate in the oil and gas sector of the economy. She said the banks were also preparing to fund the development of the Nigeria railways and the power sector. Banks, she said, were now in the mood to tap into the huge opportunities available in these sectors, hence the desire of banks to raise more funds to position for intermediary role in the development of the economy, adding that foreigners were watching Nigeria and that Nigerians must take the bull by the horns to develop the country.

She also said banks, after the second round of consolidation, would be in a position to fund road projects and other infrastructure in the country, dismissing fears in some quarters that Nigerian banks were over-capitalised and that shareholders' fund enabled banks to expand.
Speaking on the offer, the bank chief described the response of the investors to the offer since inception as awesome.

Acknowledging the positive response to the offer, she assured old and prospective investors of the bank of bumper returns on their investment in the bank. Capital market analysts have, however, projected that the bank’s share value would hit N35 billion by the end of its current financial year.

Speaking in the same vein at the forum, Chief Executive of Clearview Securities Limited, Rev. Olu Odejinmi, described the offer price of N16.50 per share as give away, noting that the performance of the bank’s stock in the capital market has made it investors’ delight.

He said: “The offer price of N16.50 is a giveaway. It is a price of one for two. I have no doubt that investors would swoop on the shares. No doubt, the bank has a lot of goodwill. A good wine needs no bush. In the capital market, the Oceanic Bank’s stock is investors’ delight. It is one of the most traded stocks on the floor and one that is very liquid. This is an opportunity investors cannot afford to miss. I can assure you that you will be smiling to the bank two weeks after the closure of the offer.”

On her part, Chief Executive of Future View Securities, Mrs. Elizabeth Ebi, lauded the bank’s decision to sell the offer at a discounted amount of N16.50 kobo.
She said: “Oceanic Bank has done very well, the bank would certainly get to the top in the industry with the current zeal of its management, the fantastic and realistic plans and the anticipated returns on investment that are indeed bumper.”

Chairman of Nestle Nigeria, Chief Olusegun Osunkeye, also stressed the need for investors to invest in the offer. Osunkeye hinged his reasons on the bank’s consistent wealth creation for investors, adding that the bank has proved over the years to be investor friendly.

According to him, “I like to be part of a success story and would expect all investors to follow suit. Over the years, Oceanic Bank has proved to be investors’ friendly. It has a rich history of wealth creation for investors. Just take a look at the year-end where they gave shareholders one for four and 42k per share. Is there any better example for investors’ friendly bank? Besides, look at the array of awards, commitment to corporate governance, track records of performance and all that investors need in an organisation, better be on board to share in the ocean of prosperity now and the future,” he advised.

Chief Executive Officer, Oando Plc, Mr Wale Tinubu, who gave a testimony of how the bank helped Oando to grow its business, was optimistic that Nigerians would rally round the bank to ensure the Offer records monumental success.

The bank, since last Monday, has been in the market offering a total of 3.4 billion units of its shares at a discounted rate of N16.50. The offer, expected to increase the bank’s shareholders’ funds by N55.4 billion to over N100 billion, is being undertaken to give investors opportunity in the Oceanic Bank treasure.

Nigeria Exits London Club, Pays $388m

From Kunle Aderinokun in Abuja, 03.13.2007

Debt Management Office (DMO), said yesterday that Nigeria would finally exit the London Club early April, as it commenced the process to fully redeem 1.76 million units of oil warrants, totaling $388million held by creditors in the Club.
Making this disclosure in Abuja, Director-General of the DMO, Dr
Mansur Muhtar, said the Federal Government had offered to redeem the oil warrants at a minimum clearing price of $220 each and expected them to be fully redeemed by March 29, 2007.
He said, “we have asked the holders to tender the oil warrants for cash at a minimum clearing price of $220 per oil warrant. They have up till March 29, 2007, to do this. We envisage that we will be exiting the debt by early April."
Investigation revealed that under the minimum clearing price arrangement, value of the oil warrants was said to be projected at $388 million (N49.664 billion). The Central Bank of Nigeria,
however, may vary the minimum clearing price from time to time, but no later than March 15, 2007.
The Federal Government had earlier promised to finally exit the London Club in the first quarter of this year.
The Nigeria’s London Club debt stock comprised three parts, namely Par Bonds valued at $1.486 billion, which were paid last December, promissory notes worth about $500 million and 1.76 million units of oil warrants estimated at about $400 million. But the Federal Government had last week concluded transactions on $512 million worth of promissory notes, which enabled it to exit that aspect of the London Club debt.
Muhtar said the Federal Government through the CBN had taken steps to buy back the oil warrants from the holders as part of its efforts to settle the London Club debt. As part of its efforts, it had in January appointed Citigroup to act as the dealer manager for a planned cash tender offer for the outstanding oil warrants.
The DMO boss said under the oil warrant arrangement, the debt securities become payable when the price for crude oil exceeds a given level. This, he pointed out, becomes payable twice a year, if the average price of the Nigerian Bonny Light crude oil exceeds $30 per barrel in the six months to the payment date.
According to him, we have them as 1.786 million units. The arrangement here is different. We are basically committed to making debt service payment on these instruments when oil price rise above certain level (about $28 per barrel).
"And for each increase, we have increased the amount. We now have a maximum of $43 per barrel at which point we would be paying US$52 million per year to creditors. This is what we have been paying to creditors.
"Assuming oil prices don’t fall below $43 per barrel, then between now and the year 2020 when these instruments mature, we would have been paying $52 million per year up to 2020. But if the oil prices come down to below $40 per barrel or they crashed to $28 per barrel, which is unlikely, then the value changes dramatically."

:P Finally, we owe no one any money!!!

FG Mobilises for Made-in-Nigeria Satellite

From Onyebuchi Ezigbo in Abuja, 03.13.2007

The Federal Government yesterday assembled the cream of the country's engineering community and space technology researchers in Abuja to brainstorm on how to develop local capacity in the design, manufacture and launch of a space satellite within the shortest possible time.
The event, which was organised by the National Space Research and Development Agency (NASRDA) and the Ministry of Science and Technology, brought together distinguished university scholars, Nigerians in Diaspora and private consultants to work out modalities for the actualisation of the country's dream of a wholly Nigerian-built space satellite by 2018.
Minister of Science and Technology, Professor Turner Isoun who was represented by the Director of Agriculture and Natural Resources, Mr. A. Adejumo said government's heavy investments in space satellite technology clearly demonstrates its commitment to the development of space technology and subsequent application to hasten our socio-economic progress.
He said government's interest was emboldened by the success story of the first satellite, NigeriaSat-1 which has since its launch in 2003 contributed immensely to national development.
President Olusegun Obasanjo had while unveiling the country's space technology road map directed that NASRDA should work towards grooming Nigerians to become space astronauts in the next 15 years.
Nigeria launched its first satellite, NigeriaSat-1, an earth-observation satellite in 2003, and is currently engaged in the execution of two other satellite projects, NigeriaSat-2 and Nigeria communications satellite - NigcomSat.
However, all of these efforts are being carried out outside the shores of the country under a foreign technical assistance programme with China.
Isoun said acquiring satellite technology is of great strategic importance to any country, adding it is for this reason that the government has taking up the challenge to mobilise our human capital to acquire and sustain the space technology.
Speaking at the research workshop, NASRDA Director-General, Professor Robert Boroffice said the objective of the national space technology programme is to make space research and development activities part of the overall strategies for sustainable development.
He said the purpose of the workshop was to explore areas of research collaboration with Nigerian universities to develop local expertise for the development of a satellite locally in line with the presidential charge of having a manned mission on the moon by 2025.

Igbowarrior, that is truly good news!

Igbowarrior, that is truly good news!

I agree :D

Nigeria is on the come up!

I saw an article about Sao Tome paying Nigeria back it's debt, did Nigeria lend Sao tome money or what:)

I saw an article about Sao Tome paying Nigeria back it's debt, did Nigeria lend Sao tome money or what.

Probably, yes.:)

More good news:)

FG Awards N19.9bn Gas Pipeline Contract

From Paul Ibe in Lagos and Sufuyan Ojeifo in Abuja, 14.03.2007

The Federal Government yesterday took another major step in its bid to improving power generation, transmission and distribution under the National Integrated Power Project (NIPP), with the signing of the N19.9 billion Calabar-Adanga gas pipeline project with Messrs IDT Consortium. The Consortium comprises of IDT Associate, Al-Jamin Nigeria and Ascot Offshore Nigeria Limited (new owner of Wilbros Nigeria).
Also, it will now be a crime punishable with a fine of N30 million for any firm to attempt to defraud the Federal Government in the extractive industry if the Nigeria Extractive Industries Tran-sparency Initiative (NEITI) Bill is passed by the National Assembly.
The 107km gas pipeline with a diameter of 24 inches will supply gas from the Addax platform offshore to the 561 megawatts gas power plant being built at Ikot Nyong, near Calabar in Cross River State.
The contract valued at N19,867,845,040.90 has a naira component of N3,868, 589,917.30 and dollar component of $125,978,386.80.
The Calabar-Adanga gas pipeline project is expected to be completed within 15 months. It is one of the projects under NIPP, which is aimed at building seven new power plants with associated gas pipeline, over 1,000kms of transmission line network and several distribution projects all over the country.
The bidding process for the Calabar-Adanga gas pipeline project commenced in 2005 with the pre-qualification process while the technical and commercial bid took place last year. In all about 11 firms were pre-qualified for the project.
Minister of State for Energy, Ahmed Abdulhamid, who represented the Federal Government at the signing ceremony in Abuja yesterday enjoined the contractors to “work assiduously to realise the objectives of the government in this critical national infrastructure development initiative.”
There are three gas projects under the NIPP. Lot one is the 18 inches by 2 kms Escravos-Lagos pipeline system to Ihorbor Gas Power Plant. Within lot two, there are two gas routes feeding two power plants in Gbarain Ubie and Egbema in Bayelsa and Imo States respectively. The gas pipeline to Egbema spans a length of 30kms and a diameter of 18 inches while the one to Gbarain Ubie covers one kilometre. The third lot is the Calabar-Adanga. Lots one and two are onshore pipeline projects that will take gas from Shell and Addax facilities while that of lot three combines offshore and onshore, but will take gas from the Addax offshore facility at Adanga.
Only recently President Olusegun Obasanjo commissioned the gas power plant in Geregu, Kogi State while the ones in Papalanto in Ogun State and Alaoji in Abia are set for commissioning before the end of this administration. A number of other plants are billed for commissioning before the year runs out.
The NIPP is funded from the Excess Crude Account as approved by the National Economic Council (NEC) and the National Assembly.
Meanwhile, it will soon be a crime punishable with a fine of N30 for any company in the extractive industry to defraud the Federal Government.
The sanction is one of the numerous other listed in the Bill for an Act to Establish the Nigeria Extractive Industries Transparency Initiative (NEITI) adopted by the Senate as presented by the Chairman of its Committee on Establishment and Public Service, Senator Felix Ibru (Delta State).
The two chambers of the National Assembly are expected to appoint a Joint Conference committee to harmonise the differences in the Bill before it will be transmitted to the President for his assent.
Section 16 of the Bill, which was considered clause-by-clause in the Committee of the Whole, was read for the third time and consequently passed by the Senate reads: “An extractive industry company which
(a) gives false information or report to the Federal Government or its agency regarding its volume or production, sales, and income; or
(b) renders false statement of account or fails to render a statement of account required under this Act to the Federal Government or its agencies resulting in the underpayment or non-payment of revenue accruable to the Federal Government or statutory recipients commits an offence and shall be liable on conviction to a fine not less than N30,000,000.”
Besides, the bill prescribes the same punishment for “any company which delays or refuses to give information or report under this Act or wilfully or negligently fails to perform its obligations.
“If any extractive industry company commits an offence against this Act, every Director or other persons concerned in the management of the company commits the offence and is liable on conviction to not less than two years imprisonment or a fine of five million,” the Bill added.
Earlier, while making his presentation, Senator Ibru had told the Senate that the Bill, when passed would give legal backing to (NEITI) “with the sole aim of enthroning a regime of effective monitoring of all revenue payments from the extractive industry companies to the Federal Government.”
He listed the objectives of the Bill to include among others, “To ensure due process, transparency and accountability in the payments made by extractive industry companies; to ensure due process, transparency and accountability in the revenue receipts of the Federal Government from extractive industry companies; and to ensure accountability and transparency in the prudent management of the revenue accruing from oil, gas and mining payments.”
He explained that an important aspect of the Bill was the clause that provided for the establishment of the National Stakeholders Working Group charged with the responsibility of overseeing the activities of NEITI.
The functions of the NEITI, according to the Bill include auditing, adding, “It shall appoint independent auditors in line with international audit standards to carryout audit works (process, physical and financial auditing) of extractive industry companies representing the payment entities and statutory government agencies (CBN, DPR, FIRS, NNPC etc) representing the revenue receiving entities.”
NEITI would also be backed by the Bill to develop “a framework for transparency and accountability in the reporting and disclosure by all extractive industry companies of revenue due to or paid to the Federal Government.”
It will also be in a position to “evaluate without prejudice to any relevant contractual obligations and or sovereign obligations in the practices of all extractive industry companies and government respectively regarding acquisition of all acreages, budgeting, contracting, materials procurement and production cost profile in order to ensure due process, transparency and accountability.”
The Bill further stated that NEITI would ensure transparency and accountability in the management of the investment of the Federal Government in all extractive industry companies.
Also yesterday, the Senate received and adopted the report of the Conference Committee on the Council for the Regulation of Freight Forwarding in Nigeria Bill, 2007 presented by Senator Ugochukwu Uba (Anambra South).
It also received and adopted a report of the Conference Committee on the National Agriculture Development Fund (NADF) BIll, 2007, which was presented by Senator Hosea Ehinlanwo (Ondo South).

I have being having difficulties getting into the site, but the above article does look promising, also I saw an article that electrcity dropped in Nigeria yesterday, due to a condensation blockage in a pipeline but will increase higher than average next week and that Nigerians will feel an improvement in pwer supply:)

OBIORA RETURNS FROM MINING CONVENTION –INSISTS INVESTORS ARE COMING

Nigeria’s Mines and Steel Development Minister, Professor Lesley Obiora has expressed optimism that a number of International Mining Companies including Mano River Resources incorporated, Moydow, as well as Diamond fields international, will be arriving Nigeria within the next two weeks to firm up arrangements for business opportunities as provided by the reform the solid Mineral Sector to Investors who are willing to exploit the vast Mineral Resources in Nigeria.

Specifically, they have indicated their willingness to invest in Gold Mining which Nigeria is about to resume after over 60 years of dormancy and decline.

The Minister, who was the head of a strong Nigerian delegation to the 75th International Mining Convention Trade Show and Investors Exchange in Toronto, Canada, held meetings with various prospective Investors to present Nigeria’s latest initiatives aimed at securing partnership to develop the nation’s solid Minerals Sector.

Addressing Investors at the expo, Obiora noted that the past few years have witnessed an era of Gold rush, with its price moving from $500 in 2006 to $750 on ounce before it consolidated at $625 an ounce since summer.

Also addressing Mine Africa Investors’ Forum, the Minister said that Nigeria had to carry out a massive reform leading to the attainment of a new mining policy with world class legal and regulatory framework, privatization of government mining corporation, as well as private sector friendly fiscal policy which allow one hundred percent foreign ownership of mining companies and three to five years tax holiday as attraction to foreign investors.

Nigeria at the export mounted a stand were officials of the Ministry of Mines and Steel Development provided technical information on minerals resources in the country.

Canada noted as the mining capital of the world, with exploration spending of $1.7 billion in 2006 alone, attracted more than 15,000 delegates around the world.

Early in February of 2007, Nigeria also featured at INDABA- a Mining Convention held in Cape Town, South Africa as an indication of the nation’s resolve to reinvigorate the Solid Minerals Sector.

Nigeria declared the year 2007 as year of Mineral and Mines to make her a new choice mining destination in the world.

PAPALANTO AND OMOTOSHO 335MW POWER STATIONS TO BE COMMISSIONED NEXT MONTH

The Minister of State for Energy, Ahmed Abdulhamid, has disclosed that efforts were being intensified to ensure that the Paplanto and Omotosho 335MW power stations in Ogun and Ondo states respectively came on stream by April 2007, while adding another 670MW to the national grid.

The Minister made this known while addressing the Press after an inspection tour of the two power stations last week.

He assured that “We are doing everything possible to monitor the activities of the contractors in order to fast-track the process. Also the 10,000MW target for 2007 is on course”.

He expressed regrets that vandalizing gas pipelines and transmission lines posed a great threat to the stable supply of electricity in the country and then called on all Nigerians to wage a total war against those perceived enemies of progress, while equally urging Nigerians to conserve energy by switching off appliances when not needed.

On the recent interconnection power project of 80MW between Nigeria and the Republic of Benin, he explained that it was part of a sub-regional cooperation Agreement aimed at power sufficiency within the sub-region under the West African Power Pool (WAPP).

PAPALANTO AND OMOTOSHO 335MW POWER STATIONS TO BE COMMISSIONED NEXT MONTH

Interesting...

NEPC launches Nigeria into global outsourcing industry, targets N1.3trn

By Franklin Alli
Posted to the Web: Thursday, March 15, 2007

The Special Adviser to the President/CEO Nigerian Export Promotion Council (NEPC), Mrs. Modupe Sasore, said the Council has created a platform that will enable the country to net $10 billion (about N1.3 trillion ) as revenue annually, from the global Information Technology Business Process Outsourcing (IT BPO).
The global outsourcing Industry which is estimated to be worth $150-310 billion, generating over 400,000 jobs.

Sasore said the Council is executing the project through Hudson Consulting Group USA, and Tathya Dot Com India who has an outsourcing company with offices in the United States and India, to outsource to Nigeria through a newly established Nigerian company named Business Outsourcing Solution and Services (BOSS Nigeria).
BPO is the contracting firm of some specific business tasks such as a call centre to a third -party, a service provider, while the company focuses on its core business. The outfit requires the software, the process management and the staff to operate the service.

It depends on Information Technology, hence it is referred to as IT BPO. Comparative analysis showed that while South Africa has a vibrant BPO industry with 80,000 staff and 70 companies offering services, and wants to boost this by creating another 100,000 jobs in this sector over the next five years, India, USA controls 59 per cent of the market, Europe 27 per cent, India who netted 36 billion revenues from the sector in 2006, control 5-6 per cent share of the total BPO industry. Philippines, and China have also emerged to take a share of the market.

Describing the sector as very lucrative, Sasore, said “Indeed, the potential of a thriving outsourcing industry in Nigeria is very possible particularly with the recent launching of the Outsourcing initiative by the Federal Government. This will go a long way in kick-starting the growth in the non-oil sector of the economy,” she remarked.
The country, she pointed out, has abundant skilled human capital in IT and Internet Service knowledge that can be easily harnessed to deliver outstanding service export, stressing that the timing of the launching of the outsourcing initiative is most apt since it constitutes the basic ingredient that could and should ginger the entrepreneurial spirit of Nigerians both at home and abroad as well as attracting the much needed foreign direct investment in the IT sub-sector.

Nigeria, she affirmed, is actually better positioned in terms of cultural fit, adaptability, spoken English as well as potential cost savings for customers.
“It was in our attempt to take advantage of this opportunity that culminated in the launching of this project aimed at facilitating the creation of the business process outsourcing industry in Nigeria.

The objective of the project is to among other things, develop a strategy and implementation plan that will enable Nigeria establish a new export product in the area of flourishing IT outsourcing, thereby making Nigeria an outsourcing destination for IT BPO in Africa.

It is also intended at diversifying the non-oil sub-sector of the Nigerian economy by developing and promoting another product for export. The short and long term goal of the project is to create more jobs and earn foreign exchange for Nigeria.” she said.
Also speaking , Executive Vice President, Hudson Consulting Group USA, Mr. Tom Iseghohi, who said the sector demands: First world infrastructure, international connectivity, sophiscated financial services industry, international finance, legal and security compliance and cultural affinity of agents, including time zone affinity to Europe and multilingual staff and leadership and work ethics, said BOSS Nigeria has met all these requirements and is ready to begin business May 2007. BOSS Nigeria is already registered with Corporate Affairs Commission, has secured three 78 million dollars contract, which will be executed in the next five years.

He also foresees the possibility of the company to be quoted on the Nigeria stock Exchange (NSE), after 18 months in operation.

March 16, 2007
Posted to the web March 16, 2007

Anas A. Galadima

Global economic rating agency, Fitch, has rated Nigeria BB- (BB minus) for the second consecutive year, there by placing the economy at par with those of Venezuela, Brazil and a number of other countries.

The three tiers of government in the country also shared additional N156billion, as statutory allocations, to make up for the shortfall recorded in January and February this year.

The international rating agency however expressed concerns over heightening tension in the country as it heads towards the general elections.

It commended non oil sector growth and very strong public balance sheets and external reserves of the country. The government's effort at spending more on infrastructural development was described as a move in the right direction, by the agency.

"Economic growth for 2006 was 5.6percent driven by the non oil sector, which grew by 8.9percent and has been the main driver of economic growth since 2004," Fitch said in its report which was obtained by Daily Trust.

It said "The production cuts in oil due to unrest in the Niger Delta caused oil sector growth to contract by 4.7percent. The oil sector accounted for 39percent of GDP in 2006. non oil sector growth continues to be driven by agriculture which, which accounted for 32perecent of GDP, accounted for the largest share of employment and grew by 7percent year-on-year."

Fitch however raised concerns that heightening political tension across the country could pose a great danger for stability in the country, pointing out that such tensions are likely to increase as the elections draw closer.

"The forthcoming elections have increased political risk. Restiveness in the Niger Delta ahs now persisted for over a year and political risk across the country can be expected to increase further as the elections get closer. Issues such as voter registration exercise, census result, the corruption charges brought against many elections candidates by the EFCC and possibility of irregularities could all give rise to more tensions after the polls."

The report also said that the persistent crises in the Niger Delta coupled with the sophisticated level of militants' activities also pose a great danger for stability.

"Militancy must decrease if the infrastructure projects must have any chance of implementation."

It noted that unrest in the region has caused the nation between 600,000 to 700,000 barrels per day of crude oil as a result of many operations of oil companies that had to be shut down at various times in the last one year.

The report also noted that "lack of development, weak human development indicators and low income per capita are major weaknesses for Nigeria relative to its rating peers."

The other countries with similar rating as Nigeria are Brazil, Indonesia, Turkey, Ukraine, Venezuela, Vietnam etc.

Speaking during a press briefing in Abuja yesterday, the minister of finance, Nenadi Usman said the ratings confirmed government's efforts to improve the economic conditions in the country.

She said the fears raised about tension in the country were uncalled for as the government was doing all that is possible to ensure that the elections do not come with violence.

She noted that most of the weaknesses pointed out in the report are going to be addressed in the NEEDS II programme which is expected to last fromm2008 to 2011.

During the same briefing, the minister said that N156billion was shared by the three tiers of government as statutory allocation meant to make up for the shortfall in revenues shared in January and February this year.

She said the funds were share to enable all the parties meet up with spending as provided in their budgets.

Great news for our Economy..

ONDO STATE OIL PRODUCING AREA COMMITS N19.16 BILLION ON PROJECTS

A total of N19.16 billion Naira has been released to the Ondo State Oil Producing Area Development Commission (OSOPADEC) between 2003 to date for the execution of various developmental projects in the area.

The Chairman of the Commission, Chief Adewale Omojuwa, disclosed this at a press conference in Akure where he said the commission was currently financing five road projects, two of them inherited from the previous administration and the remaining three initiated by the Agagu administration with the total length of the roads amounting to 104.8 kilometers at a total cost of N23 billion.

The roads, according to him, were Igbokoda township roads - 5.3 kilometers, Makun-Atijere road - 12 kilometers, Igbotu-Igbekebo road - 10.5 kilometers, Igbokoda-Ugbonla road - 35 kilometers and Aboto-Olokola road that is being jointly financed by the Federal and Ondo State governments.

The OSOPADEC Chairman noted that the commission had awarded electrification contracts totaling about N1.4 billion and installation of 300KVA generating sets, one at Ugbonla and Ayetoro, N1.0 billion project of extending the national grid from Igbokoda to Ugbola and extension of national grid from Irele to Agadagba Obon and Kiribo which cost he put at N159 million.

Apart from rehabilitating 433 housing units inherited from the previous administration, Omojuwa said the commission had awarded 420 others at the cost of N570 million, adding that additional 500 units were in the pipeline for the 2007 capital budget.

On HIV/AIDS and other health matters, the OSOPADEC Chairman explained that the commission had spent N5 million on campaign, N25 million on free surgery and N15 million on the procurement of drugs.

NASRDA begins awareness on Global Navigation Satellite System

• Monday, Mar 19, 2007

The National Space Research and Development Agency (NASRDA) has began an awareness campaign on the economic benefits of Global Navigation Satellite System (GNSS).

GNSS is the standard generic term for satellite navigation system that provides autonomous geo-spatial positioning with global coverage.

In the military GNSS is used for precision in the delivery of weapons to targets, greatly increasing lethality while reducing inadvertent casualties from mis-directed weapons.

Addressing a stakeholders workshop on GNSS familiarisation and application in Abuja, Minister of Science and Technology, Prof. Turner Isoun said that the technology and its diverse applications had the capacity of fast tracking national development.

Isoun, who was represented at the workshop by NASRDA Director-General Robert Borroffice, said that the ability of the technology to provide timing, velocity and positioning information to users could not be over-emphasised.

“Precise information will enhance development and benefit flight phases of commerical aircraft, marine and rail navigation, surveying and civil engineering, civil protection, communication network synchronisation and maintenance,” he said.

Other areas where the technology will impact on the economy, according to him, include public transport, research and rescue operations, and oil exploration.

He said the civil aviation sector had experienced growing problems of capacity in respect of traffic control, both in the air and at major airports in the country.

He added that the civil and marine applications of GNSS would provide veritable solutions to these problems.

Isoun urged the participants to articulate ways the nation’s economy would quickly benefit from the technology in view of government commitment and unprecedented support to space science and technology.

He was optimistic that with the launch of NigcomSat-1 in May, navigational services through space based augmentation system would further improve GNSS performance to an acceptable level.

NASRDA Director, Space Application Joseph Akinyede said at the workshop that though the technology “Maybe used in Nigeria and host of other African countries, its utilisation is far from being optimised.”

Akinyede said that NASRDA was leading other stakeholders in different sectors of the economy in developing GNSS projects that would be used to enhance the growth of the nation.

“The performance of GNSS has been enhanced by many nations to enable its application across a wide region and as alternative solution to many human problems or challenges,” he said.

The workshop attracted participants from the armed forces, the acedmia, private and public sectors.

MTN, Celtel, Glo Get 3G Licenses

By Efem Nkanga, 03.20.2007
The Federal Government, at the weekend, awarded Third Generation (3G) telecommunication licenses to the nation's three major GSM companies and a relatively unknown operator, Alheri Engineering Co. Ltd, to enable them expand their scope of operation in the industry.
Alheri and the other beneficiary companies; MTN Nigeria Communications Limited, Celtel Nigeria Limited and Globacom Nigeria Limited, emerged out of the initial 17 firms that expressed interest in the bid.
The award, THISDAY gathered, follows the expiration of the application March 16 deadline that was fixed by the industry watchdog, the Nigeria Communications Commission (NCC).
With the award of the licenses, the four successful applicants are expected to each pay the $150 million fee, being the Reserve Price less, the Intention-to-Bid deposit of $15 million, within 14 business days of award of the Provisional Licence, industry sources said.
THISDAY checks reveal that the four applicants’ submissions were evaluated with respect to the compliance details outlined in the Information Memora-ndum with which each applicant was found to have been fully complied with.
Consequently, since the number of applicants matched the number of lots available, no further allocation process was used to award the license.
The NCC, in a statement yesterday, said it was pleased to announce that each of the applicants has been successful in its bid for a 10MHz lot in the 2GHz band.
The commission further expressed that ''it expects to receive the licence fees, being the reserve price less the Intention-to-Bid deposit of $15 million, within 14 business days of award of the Provisional Licence. Upon receipt of cleared funds, the commission will award the Spectrum Licence'', it added.
The NCC has at the outset of the licence allocation process stated its objectives to efficiently allocate spectrum to those who value it most in an open and transparent manner, following international best practice, saying it has fully met those objectives.
It, therefore, congratulated the winners and urged them to continue to contribute to the development of the Nigerian telecommunications sector and the economy.
The NCC, as one of the first African countries to issue 3G spectrum, expressed the belief that the success of the licensing process would help maintain Nigeria’s place in the vanguard of investing in and deploying new communication technology in the continent.
It will be recalled that the NCC last year unveiled its intention to license spectrum in the 2 GHz bands (3G) in order to further the development of the communications industry.

Eleme Petrochemicals Exports Products to Europe

•Secures $320m credit facility from banks
From Onyebuchi Ezigbo in Abuja, 03.20.2007
Newly privatised Eleme Petrochemicals Company Limited (EPCL), Port Harcourt, yesterday said it had begun export of its products to Europe, Asia and across Africa.
The company, which was acquired by an Indonesian firm, Indorama Group, during the privatisation exercise last year, specialises in the production of high density polyethylene grade used as raw material for numerous end-products in the plastic industry.
The company also disclosed that it had obtained $320 million loan package from the World Bank and some Nigerian banks.
A statement signed by the company’s Head, Corporate Communications, Mr. Jossy Nkwocha, listed the countries where the EPCL high-grade products are exported to include France, Spain, Italy, Belgium, Portugal, Turkey, India, China, Pakistan, Sri-Lanka, Nepal, Vietnam, Ghana, Tanzania, Kenya, Togo, Egypt, Algeria, Morocco, Cote d’Ivoire and South Africa.
He said in order to service the domestic industry, ECPL, in addition to its office in Port Harcourt, had opened a warehouse in Lagos, while another would soon be opened in Kano to service the northern market.
According to the statement, production at the EPCL plants has been on the upward scale since November 2006, following the turnaround maintenance (TAM) carried out by Indorama Group before the complex was re-commissioned.
The company said the World Bank, through its private sector arm, International Finance Corporation (IFC), had endorsed Indorama's 75 per cent equity acquisition of EPCL as well as its comprehensive turnaround of the company to make it competitive and profitable.
It said the World Bank had extended a loan of $155 million through the IFC to Indorama in furtherance of the transaction and the comprehensive turn-around programme of the company.
According to EPCL, Stanbic Bank is also collaborating with Fidelity Bank and UBA to raise a loan of $165 million for Indorama to pursue full capacity utilisation of the complex.
While commenting on the development, the Managing Director, Mr. Arun Taneja, said the basic philosophy of exports evolves from the domestic (Nigeria) demand position.
The MD said ECPL has been very aggressive in the domestic market and in the last four months, we have already covered 60 per cent of domestic market in our product segment, replacing the imported material and thus saving foreign exchange worth millions of dollars.
Almost all the large domestic players in the plastic industry are using EPCL products in their factories,” he said.

FERMA Proposes N70bn in 2008 Budget

From Andy Ekugo in Abuja, 03.20.2007
Federal Road Maintenance Agency (FERMA), will present a budget proposal of N70 billion in the year 2008 budget, for road maintenance and construction.
Managing Director of the FERMA, Engineer Olubunmi Peters, who disclosed this while leading the management staff of the agency to the National Assembly to lobby the Senate Committee on Works over the pending amendment bill, said most of the roads in the country are distressed, and appealed to the National Assembly to approve the five per cent surcharge from the sale of petroleum products, to enable it fix roads and make them motorable.
Peters warned that the entire highways in the country might face total collapse if urgent steps are not taken to rehabilitate, repair or reconstruct them at the appropriate time. He expressed regrets that “most of our highways constructed in the 70s lack proper maintenance, with road users increasing by the day.
“Most of the highways in the country require urgent attention to avoid imminent total collapse. To ensure they are fixed properly between now and the next five years, we are making a proposal for N70 billion in the 2008 budget for strengthening and total overlaying of the roads.” He said the highways would be better for it if the request for the surcharge is granted by the National Assembly in the on-going amendment to the FERMA bill.
Peters, who put the volume of fuel consumption to about 12 billion litres per annum, said the five per cent stands to increase the purse of the agency by N76.8 billion annually.
He said the funds would also be channeled towards the maintenance of states and local governments roads throughout the federation, adding that Ghanaians are paying N9.80 as fuel tax to keep roads motorable, adding, “government alone cannot provide roads for the citizens.”

In his response, Chairman, Senate Committee on Works, Senator Idris Kuta, urged Peters to avoid the award of contracts if there is no money to pay contractors.
Kuta, who felt concerned over the debt profile of the agency, warned the management against misappropriation of funds allocated to it, or turning the agency to another Petroleum Trust Fund (PTF) of the 1990s, where funds meant for roads were used for procurement of drugs for hospitals.

NATIONAL NUTRITION COUNCIL ESTABLISHED

President Olusegun Obasanjo has established a National Nutrition Council.

The Council was established at State House, Thursday, after a meeting of the Stakeholders’ Forum on Child Nutrition in Nigeria.

Terms of reference of the Council are: to identify problems associated with the status of the nation’s nutrition; to examine past strategies and their results; identify further actions at the household, community, local government, state, institutional, national and international levels; coordination of all activities regarding nutrition, resource mobilization, advocacy and sensitization; and monitoring and evaluation.

The President is Chairman of the Council, while members are: Ministers of Agriculture and Water Resources, Health, Education, Science and Technology, Information, Women, Youth, Finance and National Planning Commission. Other members include Chairman, Forum of Governors, past and present president of the African Nutrition Association, Nigerian president of the International Paediatrics Association, Institute of Medical Research, Primary Health Care, Institutes of Child Care, and the Paediatrician Association of Nigeria.

Also on the Council are the Nutrition Association of Nigeria, Dietetic Association of Nigeria, National Agency for Food, Drugs Administration and Control, Nestle and West African Milk Company, Association of Food and Beverage Employers and Prof. O. O. Akinkugbe.

Two gold mining giants to invest in Nigeria fields - Obiora

By Hector Igbikiowubo
Tuesday, March 20, 2007

THE Minister of Mines and Steel Development, Prof Lesley Obiorah , has said that Nigeria’s under explored gold fields are about to bounce to live as two world rate gold mining firms have indicated interest to invest in Nigeria in the next two weeks.


One of the companies is Moydow and Diamond Fields with head office in Dublin , Ireland , and offices in Toronto and Accra , Ghana . Moydow has a deep profile portfolio of exploration assets with primary interests in precious and industrial minerals and diamonds and is well at home with the African terrain


The other is the Mano River Resources Inc - an exploration and development company focused on the discovery of gold, diamond and iron ore deposits in the West African Mano River Union countries of Sierra Leone , Liberia , and Guinea .


A statement from the Office of the Minister signed by the Chief Press Secretary of the Ministry, Mr. Clinton Oni in Abuja on Friday, said the Minister, who had earlier led Nigeria ’s delegation to the 75th International Mining Convention Trade Show and Investors Exchange in Toronto Canada , said the companies would be coming to Nigeria within next two weeks.

“Mano River Resources Incorporated, Moydow and Diamond Fields have indicated interest to invest in Gold mining, which is about to resume after over 60 years of dormancy and decline”, said the statement


“She said the companies would be coming to firm up arrangements for business opportunities which was initiated at the Canada meeting”, the statement added

Obiorah who addressed investors at the expo explained that in the past few years, gold have witnessed an era of gold rush, with its price moving form $500 in 2006 to $750 an ounce before balancing at $625 an ounce since summer.


The statement said that Pro. Obiora also addressed a Mine Africa Investors Forum, were she wooed more investors, telling them that Nigeria had to carry massive reforms leading to the attainment of a new mining policy with world class legal and regulatory framework; privatization of government mining corporation as well as private sector friendly fiscal policy, which allows 100 per cent foreign ownership of mining companies and three to five years tax holiday a attraction to foreign investors.


Gold in Nigeria , according to information from official website of the Ministry, can be found in the northwest and southwest of Nigeria .

“Officially recorded gold production in Nigeria started by 1913 and peaked in the period 1933-1943 when about 1.4t of gold were produced”, says the source, but observes that “gold production declined during the Second World War period and never recovered as mines were abandoned by mostly colonial companies”


However, according to the website, the Nigerian Mining Corporation started exploration of gold in Nigeria in the early 1980s but failed to be sustained due to lack of funds. The discovery of petroleum and its subsequent domination of the Nigerian economy also contributed to the lack of attention to gold exploration despite the widespread potentials.

It could recalled that in August last year, the BPE sold some publicly owned mining assets and mineral fields to the private sector.


At that pubic offer, which saw two Bitumen Block in Ondo State and six other Mining Corporation assets and fields sold for $19,840,383, most of the bidders shunned most of the Gold Fields.


Only Igun Gold District Mining Lease (ML) 20501, ML 20507, ML 10904 was grabbed by Livingspring Mineral who bided at $350, 000, to beat Central Asia Gold’s $20,000.

The explanation for the lukewarm interest in Nigeria Gold fields, according to some investors, was that there was no sufficient geological data to support taking the risk. And that there was no legislation with a clear mining policy to encourage investors.


Unfortunately, after the Mineral Act was passed by the National Assembly and assented by President Olusegun Obasanjo last February, the Senate last month, revoked the Act, saying it did not go through the right procedure.


The Bill is still before the National Assembly. But industry watchers, say there is nothing to worry about, since the Senate had no problem with its content other than the procedure it followed.

OBASANJO COMMISSIONS BENIN BY PASS AND DUALISED BENIN -WARRI ROAD

The multimillion Naira Benin Bypass road project was at the weekend commissioned by the President Olusegun Obasanjo as well as the Benini –Warri road.

He thanked officials of the Ministry for doing a very good job including providing uncompromising quality supervision of the contractors and appealed against abuses of the road through overloading of vehicles and the vandalisation of the road.

Obasanjo challenged the contractors, Messrs Reynolds Construction company (RCC) Ltd who are also handling the on-going rehabilitation of the Benin – Ore road to pay particular attention to the drainages.

He noted with relief the reports on the progress of work on the East – West dualisation, particularly the Warri – Kaima section being handled by Messr5s SETRACO Nig. Ltd.

He commended the communities for cooperating and supporting the contractors, who were working to give them better roads.

He reaffirmed his faith that the succeeding administration would sustain his administration’s reform in the transportation sector to ensure greater inter and multi –modalism between Air, Roads, Water and Rail transports, and sustainable funding of road projects.

Transportation Minister, Mr. Cornelius O. Adebayo stated in his speech at the occasion that the initiation and completion of the projects highlighted the commitment of the Obasanjo administration to the development of infrastructure in the country in general and in the Niger Delta in particular.

The Benin Bypass project is a 44.80 kilometre long dual carriageway. Section I, which is 24 kilometres originates at the Benin end of Warri – Benin dual carriageway and terminates at the Benin – Asaba dual carriageway intersection with Benin – Auchi road terminating at Benin – Lagos dual carriageway.

The project originally awarded to Messrs Strabag construction company Ltd was re-awarded to Messrs Reynolds construction company (Nig.) Ltd. At a contract sum of N3, 874,159.63 with a completion date of 15th March 2007.

Contract for the dualisation of the Warri – Benin road was first awarded in 1990 to Messrs Daewoo construction company Ltd. Owing to a combination of factors, the major one being funding, not much progress could be made on the job leading to the abandonment of the project in November 1993.

The project was revived and re-awarded on 15th September 2000 to Messrs Reynolds Construction Company, RCC Nig. Ltd., in the sum of N6, 255,749,960.16, with a completion period of 38 months.

Subsequent reviews to reflect inflation in the cost of available construction materials, youth and community restiveness, scarcity of construction materials increased the contract sum to N7, 979,781,934.06 with an extended completion date of 31st May 2007.

Dualisation of Benin-Warri Road has long been overdue! I am happy to read that it will soon turn into reality.

Government awards N445bn contract to ease power failure

March 20th, 2007



A N445-billion ($3.46-billion) contract has been awarded for the construction of the Mambilla hydro power project to improve power supply in the country.
EJIOFOR ALIKE


Edmund Daukoru, minister of energy, said this yesterday in Lagos at the 2007 oil and gas seminar organised by the Institute of Directors of Nigeria.
Daukoru said the contract for Lot 1 of the project, which would cost N187.6-billion ($1.46-billion), had been awarded to a Chinese firm, while an additional N257-billion ($2-billion) would be required for the completion of the project.
The minister, who was represented by Jafaru ****, special adviser to the president on petroleum resources, said the Lot 1, which covered civil works and hydraulic steel structures, would be completed in 64 months.
The energy boss said the hydro-electric power project would generate 2,600megawatts of electricity when completed.
The minister said the Federal Government had spent over N771-billion ($6-billion) on power plants, while N45.8-billion had been expended on rural electrification from 1999 to date with N23.3-billion earmarked for rural electrification agency in 2007.
He said 1,946 rural electrification projects were continuing, with 836 communities already covered, adding that 445 projects would be completed before May this year.
The equipment for the construction of the power plants at Gbarain, Egbema, Sapele, Ihovbor and Calabar have been discharged at Onne and Calabar ports.
According to him, N81-billion has been invested in the distribution of electricity, with the construction of 1,701 kilometres of new 33kv lines; 2,666km of new 11kv lines; 3,540 MVA new sub-station capacity, and 22, 598 new transformers.
He maintained that the over 250 contracts being executed in more than 600 project sites had provided employment to 100,000 people, adding that the power projects had created jobs in the Niger-Delta area.

S/African Telkom to Buy 75% Stake in Multilinks

By Shina Badaru Contributing Editor, 03.21.2007
South Africa’s fixed line operator, Telkom would soon close an acquisition deal in which it will pay $200 million for 75 per cent stake in Multilinks, Nigeria’s pioneer private telecoms operator (PTO).
Investigations reveal that both parties are tying up the final details of the sale, having been granted regulatory approval by the Nigerian Communications Commission (NCC), for the proposed change in ownership structure of Multilinks.
Telkom’s talk with Multilinks is coming after MTN Nigeria acquired another PTO, VGC Commu-nications Limited, for $65 million.
Executive Director, Multilinks, Chief Ezekiel Fatoye, confirmed on phone yesterday that NCC has granted an “anticipatory approval” for both parties to proceed with the proposed sale.
Based on licensing stipulations, operators have to obtain clearance from NCC when they plan to change ownership structure of their business.
According to him, “we have already obtained an anticipatory approval from NCC to proceed with our discussions with Telkom of South Africa.”
Although did not volunteer additional information on the depth of shareholding to be acquired by Telkom but said both parties hope to conclude talks, “within the next two months.”
According to him, “what has happened is that they (Telkom) have expressed interest but we have not concluded yet.”
Asked the volume of shares being unbundled by the current investors in the telecoms business, Ezekiel stated that, “if you say they are taking 75 per cent, it means that everybody here will be affected.”
Speculations have been rife that Vodacom, South Africa’s top mobile operator, has been in talks with some Nigerian operators including Multilinks.
This followed a botched acquisition of controlling stakes in Vmobile (now Celtel Nigeria) and lately, emerging indications that it offered $150 million for the sector’s last GSM licence that was sold to Mubadala of the United Arab Emirates (UAE) in January.
Multilinks’ confirmation of the proposed deal with Telkom may have put paid to industry speculations that it was in discussions with Vodacom. Telkom and UK’s Vodafone, have substantial stakes in Vodacom which is exploring emerging stakes in new markets beyond South Africa.
Multilinks, which was started by an Indian businessman, C.K. Ramani, who also doubles as Managing Director/CEO of the company is chaired by industrialist, Lema Jibrilu.
It flagged off commercial service in December 1997 to compete with the then monopoly of the Nigerian Telecommunication Limited (NITEL) in the fixed-line service arena.
It is the pioneer private sector telephony service to emerge in the Nigerian telecoms market in following the liberalisation of the sector in 1992 by the military administration of General Ibrahim Babangida.
In June 2006, Multilinks announced that it had obtained a Unified Access Service Licence (UASL) allowing operators offer a bouquet of services ranging from voice, internet and data.
UASL, which was introduced by NCC after the expiration of the five-year market exclusivity granted mobile operators that emerged in the telecoms market after the January 2001 GSM licence auctions is making a profound impact on the competitive telecoms market as it allows former fixed-line operators to extend their limited mobility and explore technological advancements to deploy services across the country.
Multilinks, the first operator to introduce the CDMA 2000 1X technology supporting wireless telephony and internet services, said last year that it has recorded over 100,000 subscribers and projected to grow the number to over 500,000 by the end of 2006.
While the company’s current subscriber base was yet to be confirmed, NCC said over 34 million combined fixed and mobile lines have been connected at the end of January, this year.
Competition has since stepped up in the Nigerian market with four national mobile GSM providers by user base: MTN, Glomobile, Celtel Nigeria and M-tel. A fifth GSM and UASL licences was in January sold to the Mubadala for $400 million.
In addition to the two national carriers, NITEL and its competitor, Globacom, there are over 20 operators offering fixed telephone services, including Fixed Wireless Access (FWA) and CDMA-based fixed and mobile service providers.
Telkom holds South Africa’s dominance in fixed-line service as well as international connections to and from the country on the SAT3 and SAFE cables accounting for the majority of the country’s international bandwidth.
The company is currently the largest provider of broadband in South Africa, with over 120,000 subscribers at last count in 2005.

IFC Invests N6.5bn in UBA

...Gets another N3.5bn facility
By Eromosele Abiodun, 03.21.2007
The International Finance Corporation (IFC), the private sector arm of the World, has extended a $50 million (N6.5 billion) convertible loan to the United Bank for Africa (UBA).
Both organisation yesterday formally signed the agreement for the convertible debenture which when converted gives IFC control of two percent equity of UBA and a seat on its board.
The $50 million convertible loan is part of a $75 million (N9.7 billion) financing and advisory services package that IFC's Board approved for the bank.
The package also includes a $25 million (N3.2 billion) partial credit guarantee for bonds and medium-term notes that UBA plans to issue to finance mortgage lending and other strategic businesses. That portion of the deal is expected to be signed in the near future.
Speaking at the agreement signing ceremony, Managing Director and Chief Executive Officer of UBA, Mr. Tony Elumelu, said "this is a new dawn for UBA, the private sector and an endorsement of the reforms of the Nigerian Government.
"A year ago, we had a dream, but we needed a bigger platform to actualise that dream. This partnership is a step in that direction. We believe that, with the investment, we will be able to create value for our stakeholders, shareholders inclusive," he said.
The investment, he said, will help the bank improve its working capital and drive its growth aspirations adding that "with this, we will be in every economy in Africa that deserves our presence. Today, UBA can talk about another first, it is important for us because it goes beyond the agreement, what is of value for us is the value that we will get.”
He added that IFC’s partnership will help the bank develop a robust risk framework and help it build its consumer portfolio to ensure that the average man on the street can have access to finance for their needs.
“This transaction reinforces our relationship with IFC and our common commitment to developing the financial markets in Nigeria and the rest of Africa. We hope to make this strategic partnership with IFC a success story, which should also translate to increased shareholder value for our investors. This support by IFC is a very good signal to current and future investors in UBA”, he said.
He added that IFC and UBA are developing a strategic alliance under which IFC is investing in and providing advisory services to the bank in numerous areas.
“These include supporting the bank's regional expansion, co-financing large infrastructure and industrial projects, and helping to develop the bank's mortgage, insurance, and structured finance businesses. IFC will also advise the bank on establishing a credit bureau, developing its retail business, financing micro, small, and medium enterprises, on corporate governance, and developing new classes of fixed income capital market products," he added.
Solomon Adegbie-Quaynor, IFC's Country Manager for Nigeria, who led the IFC delegation, said the deal highlights IFC's continued strategic partnership with select Nigerian financial institutions.
The investment, he explained, is expected to both deepen confidence in the country's financial sector reforms, as well as support the implementation of UBA's post consolidation strategy aimed at developing UBA into a top pan-African bank and financial institution.

“Nigeria's financial market has experienced good regulatory reforms which have also catalysed further market consolidation to create well-capitalised and stronger banks in terms of risk management," he said.
He added that, "We are therefore shifting our strategy from providing only long-term credit facilities to forming long-term strategic partnerships with select banks and other financial institutions to deepen existing market segments that they serve, as well as enter new market segments where needs and opportunities are great."

Nigeria to Earn $10bn Annually from Gas Projects – Kupolokun

From Chika Amanze-Nwachuku and Onyebuchi Ezigbo in Abuja, 03.21.2007
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Funsho Kupolokun yesterday disclosed that Nigeria would earn well over $10 billion annually when the various gas projects embarked upon would have come on stream.
Speaking at the opening of the 2007 Offshore West Africa oil and gas conference holding in Abuja, Kupolokun said, the gas sector has recorded tremendous successes such that from a mere 197mmcf per day in 1999, the country has moved to 5billion mmcf with a projection of about 20bn cfpd by 2010
He stated that the first phase of the West African Gas Project, which was aimed at supplying natural gas to Republics of Benin, Togo, and Ghana, has been completed and would be commissioned in the first week of April by President Olusegun Obasanjo.
"The project holds a capacity of 200million standard cubic feet per day with a potential of 500million scfd that would supply natural gas to Benin , Togo , and Ghana" .
The NNPC boss also disclosed that the corporation is to spend between $10 and $11bn on counterpart funding for annual oil and gas investments estimated at about $29.4bn, adding that it would amount to double of its current level of $5.5 billion.
Production has grown from 1.2million barrels per day in 1992 to 3million bpd under the current dispensation, representing a growth of four per cent per annum, he said.
"Here we are talking of an explosion, the domestic gas sector in 1993, we were talking of 324mmcf and by 1999 when this administration came, it dropped down to 197mmcf per day. But since the inception of the civillian administration, the volume has risen to 5 billion standard cubic feet per day. The growth is
such that by 2010 - 2011, we should be talking about
20 billion mmcf per day", he said.
According to him, the prospect for increased gas pricing in
Europe and America is driving up demand for LNG
products from Nigeria while the unprecedented
development in the country's power sector is another
source of improved earnings from gas.
The GMD who alluded the rising profile of gas in the
country economy to the various strategic
transformations spear-headed by government, said even
the gas industry appeared to have been taken unawares
by the fast growth in demand for gas.
Kupolokun listed some the gas projects expected to
deliver enormous revenue to the country to include,
Nigeria Liquefied Natural Gas, Olokola Liquefied
Natural Gas, West African Gas Pipeline, Escravos Gas
to Liquid project and Trans Saharan Gas Pipeline.
The NNPC boss said the Final Investment Decision on
the Brass LNG will be taken by first week of April,
while that of OKLNG will come up before the end the
year.
The GMD noted that tremendous successes have been recorded in various deep water projects like; Usan, Agbami and Apo, saying by the time these projects would come on stream, the country's new targets of 4.5million bpd and 40billion barrels reserve would have been more than achieved, even as it is producing about 2.4million bpd of its installed capacity of 3million bpd.
Kupolokun however lauded the Local Content Policy of the federal government, stating that the bill is currently before the National Assembly.
Speaking on the effort of the company to
bridge the expected funding gap for joint venture
projects, he said, NNPC has successfully initiated a
stable funding structure that would enable the
organisation fill the gap of about $5bn by next year.
He disclosed that the company is about launching a major
initiative aimed ensuring a stable funding structure
to take care of the shortfall from government's
contribution to the running of the JV operations in
the oil and gas industry.
Although, he did not give further details on the
nature of the fund, Kupolokun said the arrangement
will see NNPC creating a window for ready source of
funds for its JV activities.
Speaking on recent developments in the oil and gas
industry a consultant with a United Kingdom based
firm, Douglas-WestWood, Mr. John Westwood said there
has been a growing influence of national oil companies
around the world.
He noted that for instance these national oil
companies controls about 75% of oil production while
oil majors in responsible for 24%.
He said there is a major upsurge in gas production
arround the world adding LNG is about the world's
fastest growing fuel.
On the Niger Delta, he noted that "what has happened in the region between 1999 and today is more than double what happened in the region since 40 years ago, adding that in terms of investments, Nigeria is tops among other countries, but stated the need for corporation with intending investors.
On his part, Executive Director, Deep Water Production, Exxon Mobil, Mr. Ian Edwards, stated that the deepwater project was a demonstration of the corporation’s expertise, which took off in March 2006.

Evolve New Tax Policy, Duke Urges Tax Board.

Governor Donald Duke of Cross River State has urged the different tiers of government to strive to develop their economies to improve Internally Generated Revenue so that they could be independent of Federation Account.

While receiving members of the Joint Tax Board led by its Chairman Ms. Ifueko Omoigui on a courtesy visit in Calabar ahead of the board’s prelude to its 116 th meeting, Duke stated that the philosophy behind the developmental strides in tourism and agriculture is aimed towards developing and sustaining economy to generate wealth and job.

According to him “What is done in Cross River State is to develop the local economy and sustain it to generate revenue, adding that while initiating the Urban Renewal Programme in Calabar, Ugep, Ikom, Ogoja and Obudu, Urban Development Tax was introduced in those areas to generate revenue for their maintenance.

Duke noted that through the programme, Calabar now has the best organized network of roads in Nigeria outside Abuja, saying that the replanning of the urban cities in the state was made possible with the aid of an aerial mapping which was first introduced in the country by Cross River State.

He said a new tax system should be introduced to determine the amount of money that either comes into or goes out of the country thereby fixing a certain percentage of what comes into the country to strengthen the re venue, adding that such a system of tax collecting tax is practiced in some countries as an idea of expanding the tax base.

The Governor called for the introduction of technology into tax collection so as to reduce human lapses recorded in tax collection thereby creating a formidable tax collection system to check loop- holes.

Duke said another way of creating revenue base is to bring more people as possible into the tax bracket while encouraging his guests to visit Tinapa as well as Obudu Ranch Resort and find what nature has for the people as a way of knowing the country better “because diversity strengthens the nation”.

The Chairman of the Joint Tax Board Ifueko Omoigui, who said finance as the Centre force of government should be given a great priority, added that their mission is to create a tax friendly environment as well as promote uniformity and harmony in the application of Personal Income Tax in Nigeria whilst providing advice on general tax matters as may be required.

Omoigui said that the membership of the board is made up of the Chairman of the Federal Inland Revenue Service/Federal Board of Inland Revenue, who is also the chairman of the Joint Tax Board, Chairman of the State Internal Revenue Service/State Boards of Internal Revenue and Organizations connected with revenue matters like Federal Road Safety Commission (FRSC) and Revenue mobilization Allocation and Fiscal Commission (RMA & FC).

According to Omoigui, the Federal Inland Revenue Service is the body charged with collecting revenue for the Federal Capital Territory (FCT), the Federal Capital Territory Administration is also co-opted as member to ensure, working with the Federal Inland Revenue Service, effective coordination of revenue matters for the FCT.

She said the 116 th meeting holding in Calabar would be the last before the end of the present administration and that it was imperative they discussed effectively and come up with a better tax collection system before the next administration comes in, adding that the board had introduced a publication to sensitize people on the essence of taxation.

The Chairman commended Duke for the vision behind Tinapa as well as the series of development which have been recorded at the Obudu Ranch Resort.

Cross River Records Increased IGR.

The aggressive and deliberate effort put in place by the Joint Tax Board to enlighten the citizenry to pay their tax has caused an increase in the monthly Internally Generated Revenue in Cross River State from N50 million to about N265 million.

Governor Donald Duke of Cross River State stated this while declaring open the 116 th Joint Tax Board (JTB) meeting in Calabar, commending the JTB for raising the consciousness of Nigerians to realize that tax payment is a civic responsibility aimed at protecting the overall interest of the country and its people.

Duke noted that no nation has been able to evolve and develop to its desired target without putting in place an ideal method of taxation, stressing that in Cross River State, a bill to check multiple taxation in the state has been sent to the State House of Assembly.

The Governor reasoned that there was need for people to pay tax willingly as it is critical to achieving financial independence and social engineering, explaining that government should streamline taxes so that its citizenry know why they are paying taxes because in Cross River State the people are not averred to tax payment but want to know what their taxes are used for.

He said the motto of the state is to prove that” it can be done” and to achieve this, citizens have to pay their taxes as this determines what government wants to achieve, adding, however, that government is aware that there should be effective systems of tax collection but not taxes that would have grievous burden on the people.

The Chairman of the Joint Tax Board (JTB) Ms Ifueko Omoigui, in a her key note address disclosed that the board was established by section 86 (i) of the Personal Income Tax (PIT) Act, Cap 8 of the laws of the Federal Republic of Nigeria, 2004 to create a tax friendly environment, promote uniformity and harmony in the application of Personal Income Tax and provide advice on general tax matters in Nigeria.

Omoigui explained that there was need for the diversification of the revenue base of the nation from oil as oil wells would dry up, eventually stressing that global socio-economic insecurity arising from scarce allocation of resources are at the root of most social strife, and that with a well streamlined regime, Nigeria can fund its project, train and pay its civil servants.

She stressed the importance of strengthening tax policy and the interface between tax policy and administration, asserting that the board is strategically placed to play a pivotal role in the success of the various initiatives of State/Federal Administration tax reform agenda that all people seeking political and elective office have been made to pay their taxes.

The Chairman appealed that “the various bills at the national and State Assemblies on autonomy of the Federal/State Internal Revenue Services as well as amendments to the various tax law are concluded before the end of this administration”.

The State Commissioner for Finance, Mr. Chris Agibe represented by the permanent Secretary, Ministry of finance, Pastor Essien Ankor in his welcome address urged participants to make useful contributions that will enhance the concept of tax collection in Nigeria as well as suggest ways to replace absolute tax laws of the country.

Nigeria may be next to raise debt

March 21 2007 17:35

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Nigeria is one of the favourites to emulate Ghana as sub-Saharan Africa begins to show tentative signs of emerging into the international capital markets to raise fresh debt.
The oil-rich country has almost completed a strong push to rid itself of legacy debt since President Olusegun Obasanjo was returned to power as elected ruler in 1999, when he made a priority of clearing Nigeria’s near-$35bn of debt, which made it one of the world’s most heavily indebted countries.

Nigeria’s government last year came close to issuing government-backed bonds to clear some of its then $2bn remaining London Club debts, but decided instead to use its external dollar reserves, which stood at more than $40bn at that time.
Thursday will see the end of an auction process run by Citigroup that the country hopes will clear the last of its debt pile and lead to an improvement in its credit ratings, which are below investment grade.
Nigeria last week confirmed that it had set a minimum clearing price of $220 for each of the roughly 1.76m oil warrants that remain outstanding and cost the country about $52m in annual payments.
The warrants were originally attached to sovereign bonds as a way to allow creditors to share in the benefits of higher oil prices to Nigeria, which is Africa’s leading oil producer. But while the bonds were repaid the warrants were split off and have developed a complicated history, with confusion as to who holds many of them.
The $220 minimum price indicates that the government will have to shell out at least $390m to repurchase the lot, but there are concerns that some investors may try to retain the warrants to benefit from ongoing high oil prices.
However, Nenadi Usman, the finance minister, told the Financial Times that Nigeria would consider “legal action” should some holders of the warrants decline to cash them in for speculative reasons.
She also warned that future Nigerian governments would be unlikely to prioritise clearing debt in the way Mr Obasanjo had.
Nigeria will announce on March 29 how many of the warrants are to be repurchased.
Copyright The Financial Times Limited 2007

Internet use and data downloading has become a lot easier as Starcomms Limited, one of Nigeria's largest CDMA 3G Mobile networks, has delivered on its promise to empower Nigerians through consistent provision of customized and innovative telecommunication solutions.

The company introduced a new service known as 'Pay As You Surf' which provides subscribers a more flexible and unlimited access to the internet in a most price-friendly manner.

The customer just loads a normal recharge card to browse and will be billed on per minute basis. That means that the subscriber will only pay for the time he/she connected to the net. The new service requires the purchase of a data pack which contains the connecting cable, CD and information describing how the subscriber will activate the service in any Starcomms' CDMA internet-compliant handset and computer.

This service will cost a nominal N1,000 one-off activation fee payment. With options of N7.40 per minute during peak time and N5.00 per minute during off-peak, the customer surfs at his/her convenience and pays for the exact usage. There are no monthly subscriptions, but the subscriber enjoys unlimited access as long as there is sufficient credit in his account.

To activate the service, all the subscriber needs to do is visit any Starcomms shop, request for Pay As You Surf data service, fill a data subscription form, pay N1,000 activation fee and the service is activated within 24 hours after completing the request.

Mobiles and fixed wireless phone users all top up their Data PAYS Account with a normal recharge card, while for first time activation, the subscriber has to access the IVR dialing *999*. All subsequent recharges can be done by simply following the instructions behind the Starcomms recharge card.

In addition, a Pay As You Surf subscriber can share the same credit account for voice and data. The subscriber can surf the internet or make voice calls as long as there is sufficient credit in the account, and the subscriber can keep using the service by simply topping the account when low by loading a recharge card.

Starcomms' Commercial Director, Mr. Prakash Pantham, who confirmed the development, said it was borne out of the need to give subscribers different options on accessing the internet, adding that it is a demonstration of the firm's expertise in maximizing new technologies to meet customers' needs.

"It is the endeavour of the company to constantly innovate and introduce services and products to cater to each segment of the market. This innovative service will bring the internet much closer to the common man, allowing easy and affordable access to the world-wide web".

He added that the new service, one of many to be introduced, is in partial fulfillment of Starcomms' promise to build a solid network for voice and data to cater for the needs of its existing and potential subscribers.

This is a really cool development!!

Telecommunications in Nigeria is just getting better and better:)

FG to Build Satellite Centre in Abuja

From Onyebuchi Ezigbo in Abuja, 03.23.2007
The Federal Government yesterday said it had granted approval for the construction of two satellite development centres to be located in Abuja, the
Federal Capital Territory. The centres to be known as Satellite Design Centre (SDC) and Satellite Assembly, Integration and Test Centre (AITC) are to provide critical infrastructure base for training Nigerian space engineers and scientists and to groom them for the task of building satellites in the country.
The Director-General of the National Space Research and Development Agency, Professor Robert Ajayi Boroffice, who disclosed this at the opening a one-day space science workshop for the media in Abuja, said President Olusegun Obasanjo has given the go-ahead for the establishment of a satellite development centre to enable Nigerian engineersdesign, build, launch and manage our satellites in orbit.
Against the background of the renewed impetus being given to space technology, government said it has completed the building of Nigerian Communication satellite and would launch it by May 12.
Borofiice said in furtherance of the country's aspiration to develop an in-country capacity in the field of space technology, a Nigerian-built satellite would be launched in 2009 along with the NigeriaSat-2.
He said the construction of the Nigerian satellite is being undertaken by 25 Nigerian engineers presently on a government sponsored study in Surrey in the United Kingdom.
NASRDA D-G also said the construction of the agency's
permanent site had been completed and would be
commissioned next month ahead of the launching of
the communication satellite.
Minister of Science and Technology, Professor Turner
Isoun, while declaring the workshop open said the
launching of the communication satellite has been
fixed for May 12.
He said the satellite device has already commenced its
journey to the site where the eventual launch into
orbit will be performed in the Chinese city of Siyan.
The Minister said ahead of the formal launch, the
communication satellite has already transmitted well
over 2000 images to its ground base in Abuja.
Isoun said the facility is equipped with 26
transponders to aid communication anywhere in Africa.
"The satellite is also positioned to provide
comprehensive transmission
services via digital or analogue system, operate same
by either fixed or mobile satellite, direct
broadcast satellite services, end-to-end solution and
engage in transponder leasing.", he said.
The building of communication satellite project is
supported by a $200m credit facility from EXIM Bank of
China will provide a wide range of innovative
solutions to challenges facing communication
networking in Nigeria and African continent.
Boroffice said the cost of the design and manufacture
of the country's first ever communication satellite,
NIGCOMSAT-1 is $450 million.
He said the cost estimate include that of
manufacturing the satellite equipment, building of
ground the station and sponsoring staff training.
The D-G said the advent of a wholly owned satellite
facility by an African nation has put an end to the
continent dependence on outsiders for its needs.
Borofice said shortly after the launching of the
facility, it would be handed over to be managed by a
commercial entity known as NIGCOMSAT Nigeria Limited
which will undertake marketing and sell of bandwidths
and other services of the satellite.
The D-G said NASRDA is currently engaged in some pilot
service delivery effort to institutions including the
University of Abuja where it using its facility to
link the institution's study centre to the main campus
in Gwagwalada and assisting the Ministry of Health to
be in touch with its Primary health centres via
satellite.
He said the agency is also planning to link the
University of Maiduguri Teaching Hospital, and that of
University of Ibadan to some health clinic centre in
the remote villages to enable them attend to patients
through the device known as video conferencing.
Sudanese company, El-RASID Electronic Trading Company
limited yesterday became the first African country to
buy into the satellite project, staking $200m as
equity holding on the facility.
The Dubai-based firm also put down $50m as advance
payment to purchase 10 out of the forty transponders
offered by the communication payload.

NIGERIA, INDIA TO STRENGTHEN TIES IN ITC AND BIOTECHNOLOGY

The Nigerian Government has expressed its interest to partner with India for Capacity building in the areas of Information Technology, Biotechnology, Tele-medicine, space technology and small scale Industry.

Nigeria’s Minister of Science and Technology, Professor Turner Isoun, gave the indication in Abuja when the India deputy High commissioner to Nigeria, Anil Trigunayat paid him a courtesy visit.

Isoun’s statement came against the backdrop that India had achieved so much as the emerging economy of the world and had outgrown Nigeria adding that Nigeria was therefore determined to learn and do a few things right that would bring it at par with India in no distant future.

The Minister who spoke through the Permanent Secretary of the Ministry, Abdullahi Aliyu also took on the India Deputy High Commissioner on matters relating to the e-Africa Network, Pharmaceuticals outsourcing and its legal environment in terms of security, copyright and quality manpower, science pacts with Universities, Polytechnics and research institutes geared towards enhancing local performance as well as encouraging the return of Nigerians in the Diaspora.

All these put together the Minister said would boost science and technology which would in turn impact on meaningful development and competition with the Western world.

Earlier, Mr. Trigunayat said India believed in sharing her knowledge and that knowledge had no boundary and to this end his country was prepared to partner and exchange knowledge with Nigeria to enhance Nigeria’s manpower base to be qualitative and also to boost her capacity building.

Trugunayant also pointed out that his country had done remarkably well in ICT, and that India was the 4th largest Pharmaceutical nation in the world and government was keenly seeking for collaborative efforts with Nigeria at bilateral level.

Electricity: 414 Companies Express Interest

From Kunle Aderinokun in Abuja, 03.23.2007
The Bureau of Public Enterprises (BPE) said yesterday that a total of 414 Expressions of Interest (EOIs) were submitted the deadline of March 9, 2007 the nation’s three electricity generation (thermal power stations) and 11 distribution companies.
Head of Public Communication, BPE, Mr. Chigbo Anichebe, who disclosed this yesterday in Abuja, pointed out that a total of 102 EOIs were dropped for the generation companies while applications totalling 302 were submitted for the distribution firms.
The three generation firms are Egbin Power Plc, Geregu Power Plc and Ughelli Power Plc whereas the distribution companies are Enugu Electricity Distribution Company Plc; Eko Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Ikeja Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc.
Others are Ibadan Electricity Distribution Company Plc; Jos Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.
According to Anichebe, “a total of 102 applications were received in respect of the three distribution companies, as follows: Egbin, 37 EOIs were harvested; for Geregu 32 applications were received whereas for Ughelli 33 EOIs were harvested.
“Three hundred and twelve (312) applications were received for the 11 distribution companies. The breakdown is as follows: Abuja 26; Benin 32; Eko 41; Enugu 30; Ibadan 39;Ikeja 42; Jos 20; Kaduna 21; Kano 22; Port Harcourt 27; and Yola 12.”
It could be recalled that the Nigerian electricity industry has been unbundled into generation, distribution and a single transmission company with the view of encouraging private sector participation and attracting foreign and local investment into the
sector to ensure economic and reliable electricity supply.
Egbin Power Plc is situated in Lagos commercial area and has a total installed capacity of 1320 MW whereas Ughelli Power Plc is situated in Delta area and has a total installed capacity of 972 MW.
Geregu Power Plc, which is situated in Kogi state, has a total installed capacity of 414 MW. Prospective core investors/concessionaires for the generating firms, who must be local and/or international power generators or investors with power generators as technical partners, will be responsible
for operating the station, improving the generation
capacity and making the necessary investments.
The prospective core investors/concessionaires for the distribution companies, who must be local and/or international power distributors or investors with power distributors as technical partners, will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with Federal Government’s objectives.

JAPAN TO INVEST $80M IN NIGERIA

Japan has indicated interest to invest $80m in Nigeria’s non-oil sector.

The executive vice president of Japan Tobacco Inc, Mr. Mitsoumi Koizumi, who led a delegation of international investors from Japan and Middle East, disclosed this during a courtesy call on the Minister of Finance, Mrs. Nenadi Usman, in her office.

Mr. Koizumi said if his firm’s proposal was accepted by the Nigerian government, it would be the biggest investment of Japan in Nigeria’s non-oil sector, adding that the project would lead to further in-flow of Japanese investments into the country.

He said already Japanese investors already had several factories operating in Ogun State.

Responding, the Minister of Finance, Mrs. Nenadi Usman, said with the pragmatic economic reform being implemented in the country, Nigeria was truly an investors’ delight.

She said the Federal government, in line with her national interest, would examine the firm’s proposal, adding that Nigeria was very happy with the interest shown by the Japanese investors in Nigeria.

SHAGARI DAM – A VERITABLE SOURCE FOR REDUCING GLOBAL WARMING -OBASANJO

President Obasanjo has commissioned the Shagari Earth Dam project, describing it as a veritable source for afforesting the area, balancing the ecosystem and reducing global warming.

He said that in addition to the usual provision of water for both agriculture and domestic purposes, the dam, located in Shagari town of Sokoto State, would also provide employment to the residents of the town.

Obasanjo, who assured the residents that government would compensate and resettle all affected people, called on the Sokoto State government and the benefiting communities to protect the facility.

Earlier, the Minister of Agriculture and water Resources, Mallam Adamu Bello, had described the dam, constructed at the cost of N1.3 billion, as a multi-purpose dam for water supply, irrigation, and fishing, adding that it was constructed in line with the provisions of the National Empowerment and Economic Development Strategies (NEEDS).

The Minister also said that the dam had a reservoir capacity of 15million cubic meters of water, and could irrigate about 1,500ha of down stream. He assured that all compensation and resettlement would be paid before the closure of the valves and that preference would be given to those displaced by the dam during the allocation of the irrigated area.

Mallam Adamu Bello also revealed that the gains derivable from the Shagari Dam were meant to complement gains of the rehabilitation of the Goronyo Dam, which would irrigate 4,430ha land.

He underscored the importance of food security in the building of a viable economy, and agricultural best practices through the culture of irrigation and adoption of new technologies in bringing a paradigm shift in the production of food.

In a welcome address delivered on-behalf of the Governor of Sokoto State, the Deputy Governor, Alhaji Chiso Dattijo, thanked the Federal Government for constructing the dam and pledged their commitment to ensuring that the facility would be well utilized.

NIGERIAN GOVT ASSURES WORLD BANK OF PRUDENCE IN DISBURSING FACILITIES

Nigeria’s Mines and Steel Development Minister, Mr. Bala M. Borodo, has assured the World Bank of prudence in the disbursement of its facilities to Nigeria to improve mining activities in the country.

Speaking in Abuja during a courtesy call by the country Director of the World Bank in Nigeria, Hafez Genan, the Minister said that the $120m World bank loan to Nigeria was designed to achieve two major objectives of utilizing the fund to resume large scale mining as well as fund the dev elopement of small scale mining in the country.

The two objectives, according to the Minister, would be pursued vigorously and at the same time increase mining activities in Nigeria.

He expressed Nigeria’s gratitude to Hafez Genan, who he said, was one of the first few to call on him after he became a full cabinet minister.

Earlier, Hafez Genan told the minister, that one of the major objectives of the World Bank was to fight poverty all over the world.

He described the partnership between Nigeria and the World Bank as excellent, and expressed hope that the achievements recorded through this partnership would be surpassed, especially in the area of large-scale mining, and growing support for small-scale miners.

IF the present National Assembly gives the Lagos Mega-City Development Authority bill recently presented to it by President Olusegun Obasanjo accelerated consideration and passage, the former federal capital will begin to receive the special attention that has been denied it since Abuja became the capital of the country.

The initiative, according to a letter by the president to the federal legislators, is aimed at arresting the infrastructural decay in Lagos and protecting the unique status of the state as the country's former capital and its today's premier commercial city.
Africa 2007

The letter noted that this state of affairs, "coupled with the teeming population of Lagos, which has spread to parts of Ogun State, has led to insecurity, heavy traffic congestion, huge refuse emissions and other environmental problems and has made Lagos almost unbearable".

President Obasanjo pointed out that there was need to redevelop and modernise Lagos to bring it to the level of such cities as New York, Sydney, Johannesburg, Istanbul and Toronto that serve as commercial and financial nerve centres of the economies of their respective countries. He indicated that Lagos will serve as a pilot project, to be followed, if successful, by such other cities as Port Harcourt and Kano.

This initiative cannot but be acclaimed by all right thinking people but while acclaiming the proposal, these same people cannot, but wonder aloud why such a bill is coming at the twilight of the life of the present government.

Most Lagosians and, indeed, non-Lagosians have, since the capital was moved out of Lagos, continued to canvass the according of a special status to Lagos but till the Lagos Mega-City initiative commenced not long ago, no one had given serious thought to the issue. Those in authority seemed not to worry that the state plays host to nearly all the headquarters of the major banks in the country, two foremost seaports, the frontline international airport, a large concentration of industries and a huge multi-ethnic population.

It ought to have been clear to those in authority, even as the capital was being moved to Abuja, that the Lagos State government alone could not have been able to shoulder the responsibility of running Lagos.

When the current dispensation came, it was expected that the anomaly would be redressed but the hurdle of the state and federal governments being controlled by different parties, unfortunately, proved too high for the dramatis personae, on both sides, to scale. The result was that Lagos was left to further deteriorate and the withholding of the allocations of the state's local governments did not help matters.

It is, thus, heart-warming to realise that at last an initiative to right the wrongs of serveral years is being put in place. It is clearly late in coming but as it's said, better late than never.

Although we believe that President Obasanjo whose government has articulated the bill would have been in the best position to implement the provisions of the Act when the bill becomes law, we are still acutely aware of the fact that government is a continuum and that whoever takes over from President Obasanjo on May 29 this year would see this project as priority and pursue it as such, if the vision of making the nation one of the 20 largest economies in the world by 2020 is to be actualised.

The initiative involves the federal government, the Lagos State and Ogun State governments contributing allotted percentages and we believe that the lessons that must have been learnt from what has happened since 1999 concerning the development of Lagos would see to it that the three stakeholders play their parts fully irrespective of the party in power in the states or at the federal level. The fact, indeed, remains that the initiative must be insulated from partisan considerations for it to achieve its goals.
Relevant Links

It is also gratifying to note that foreign and local private sector players would be deeply involved in the provision of social infrastructure, transportation, security and physical planning as well as environmental issues. Indeed, it is difficult to see the governments alone funding the huge infrastructures that would need to be put in place for Lagos and parts of Ogun State be what they ought to be, though the environment for such massive injection of private funds would have to be created bty the governments involved in this pilot project.

The challenge is now for the National Assembly to task itself to expeditiously debate and pass the bill so that the work of redeveloping Lagos that has been delayed for years can start in earnest. Apart from the challenge posed by the national elections, the Lagos Mega-City bill should rank next on their order of priorities and if they have to reconvene to consider, amend where necessary and pass the bill, they should, otherwise, whenever they resume from their recess, they should ensure that they pass this historic bill so that their names would enter the history books as those that set in motion the process of the transformation, not only of Lagos but also, of the other megacities that should also receive the immediate attention of not only the Obasanjo government but also the incoming government.

We cannot afford to allow these cities to go to seed, to atrophy or degenerate. They must continue to be renewed and redeveloped to compete with the leading cities of the world.

Better late than never eh!?!

THE Federal government has awarded contract for the first phase of the multi-billion Dollar OK Liquefied Natural Gas projects, which is expected to cost $29 billion (about 29 trillion naira) on completion.

Governor Olusegun Agagu of Ondo State disclosed this in Akure at the signing into law the N13.4 billion budgets for the state Oil Producing Area Development Commission (OSOPADEC).

The first phase is awarded for $11bn through the Nigerian National Petroleum Corporation (NNPC) and President Olusegun Obasanjo is expected in the state in April to lay the foundation of the project.

While the first phase will kick-start the project, the second phase scheduled for award by the end of this year, will cost $18bn, according to the governor.

Awarded alongside was the $600 million contract for site clearing and land preparation at the site of the project located at Olokola, a coastal boundary area between Ondo and Ogun States.

He said with the "commencement of the Olokola mega projects, the stage has been set for the unprecedented development of the state in the industrial sector.

Agagu appealed to the indigenes of the area to create a conducive atmosphere to get the full benefits of the huge investments in terms of employment and general growth of the local economy.

According to him "government has already begun the provisions of the needed infrastructure in the hitherto desolate area."

Agagu said that a road network to link the site with the rest of the state, which contract is worth more than N20 billion is nearing completion.

The governor said that the era of backwardness and government neglect of the oil-producing areas of the state is now a thing of the past as the commission has brought tremendous development to the areas.

He said that the budget of OSOPADEC has grown from a modest N4 billion in 2004, N5.6 billion in 2005 and N11 billion last years, adding that the development is a testimony to government commitment to bring the desired development to the long-forgotten areas.

Agagu also disclosed that like the state budget over the years, the OSOPADEC appropriation has continued to witness almost a hundred percent implementation, an attribute, which he claimed, was due to government fiscal discipline.

:banana:

The federal government last week flagged off four presidential initiative projects from Abuja to Lokoja. At the occasion, transportation minister, Chief Cornelius Adebayo said President Obasanjo, in May 1999, mentioned an agenda to dualise roads leading to the Federal Capital Territory.

He said it was against this backdrop that the ministry carried out the engineering designs of the Abuja - Keffi road and the later sections of the Abuja (Zuba) - Abaji - Lokoja - Benin.
He said the Abuja - Keffi road dualisation would soon be commissioned.

"The flag-off is the first in the series after the commencement of works on the Presidential Initiative Projects throughout the country. Mr. President has awarded the contract for the dualisation of the Kano - Maiduguri road in the north-east to five contractors and the east-west road from Warri to Oron to four contractors. The contractors have been mobilized and works have commenced," the minister said.

He said it was expected that with the designs for the dualisation of Lokoja to Benin completed, Benin to Lokoja should be dualised by the incoming administration, thereby completing the dualisation of Abuja to Lagos axis. He added that the engineering design for the dualisation of Ilesha - Akure - Owo - Kabba - Lokoja road is already at various stages of completion.

He said the Infrastructure Concession Regulatory Commission Act 2005 had been passed and the legal framework for the public private partnership to thrive in the nation was now in place.

:banana:

Nigeria, represented by the Nigerian Tourism Development Corporation (NTDC), recently made its mark at the just concluded international travel fair, International Tourismus Burse (ITB Berlin) in Germany. Travel and Leisure examines Nigeria's performance at the event that attracted crème de la crème of the global travel and leisure industry.

This year, the 41st annual travel fair, adjudged to be the world's largest and leading travel fair recorded the largest-ever presence of exhibitors from all over the continents.

The travel show set new records of 15 per cent more trade visitors with an increasingly international dimension.

According to official information this year, the event attracted 10, 923 companies from 184 countries and the event recorded over 177,154 attendance with India as the official partner of the fair.

The five-day event which took place between 7th and 11 of March was held at the International Convention Centre, Messe Berlin in Germany.

Participants cut across private and government agents in travel and tourism from around the world displayed the best of their products before thousands of tourists and prospective investors.

For Nigeria, the 2007 edition was unique in many ways. For the first time, Nigeria recorded an impressive outing that gave her the opportunity to promote destinations that have never been advanced beyond the shores of River Niger. It provided a platform for the exchange of ideas and policies between Nigeria and other leading players in the tourism industry.

Nigeria was said to top the list among many of the African countries that participated in the event and attracted both Berliners and other visitors.

This performance, according to observers might not be unconnected with the rich blend of ideas and artefacts displayed by the NTDC, the county's official flag bearer.

Apart from the magnificent exhibition pavilion put in place, a colourful Nigerian cultural troupe was also on hand to add colour to the exhibition square.

From the north to the east, south to the west, no section of the country was left out in arts and crafts as well as historical and natural attractions that are abundant in Nigeria.

In an interview with Travel and Leisure, the head of the Nigerian team and Director General of the Nigerian Tourism Development Corporation (NTDC), Mr Otunba Runsewe said from the responses and data they collected from discerning tourists, he was optimistic that Nigeria would in the nearest future become a cynosure of many perspective tourists.

"We recorded an impressive outing and we hope it will open doors for better opportunities for our country.

"Like other major outings, we have been able to promote prime destinations in the country and these destinations have many areas of interest which we believe will lure in perspective investors and tourists." Otunba said.

On the poor outing of the Nigerian private sector, the NTDC boss appealed to the private organisations particularly travel and leisure agents to take the challenges of participating in major international events.

According to him, the government can only provide incentive conducive for them to explore the market and added that the market is full of opportunities.

How ITB Berlin 2007 set new record

"In terms of quality and volume, the ITB Berlin 2007 continues to strengthen its position as the world's leading marketing platform for the travel industry. For example, over the past five days, the industry has been able to form a picture of the changes that will take place in global demand as a result of climate change. At the same time, the Berlin Exhibition Grounds were the background to an excellent level of business, providing the basis for commercial success in 2007." These were the positive conclusions drawn by Dr. Christian Göke, COO of Messe Berlin.

Information from the official site of the event said each year, the ITB Berlin becomes an even more international event. Whereas in 2003 approximately one third of all trade visitors came to Berlin from abroad, this year they accounted for 43 per cent of the total, a further two per cent rise over the previous year. However, the world's largest travel trade show did not only set new records for the number of exhibitors: 10,923 companies from 184 countries presented the latest products and services from the travel industry (previous year: 10,856 companies from 183 countries). The number of trade visitors broke the 100,000 barrier for the first time. Between Wednesday and Friday, 108,735 trade visitors were recorded, a 15 per cent rise. (2006: 94,553 trade visitors). The ITB Convention Market Trends and Innovations proved to be a major attraction, with participation up by a quarter and a total of more than 9,000 trade visitors. On Saturday 68,419 members of the general public came in search of ideas for their next vacation, compared with the 68,270 who attended on the Friday afternoon and the weekend at last year's ITB Berlin. Over the five days of this trade show the halls on the Berlin Exhibition Grounds were visited by a total of 177,154 visitors.

And the media was there too

The ITB Berlin is an international media event. In addition to international news agencies, it was also attended by some 8,000 journalists from 91 countries (previous year: 85 countries).

In accordance with the new arrangement, the next ITB Berlin 2008 will take place from Wednesday to Sunday, 5 to 9 March 2008.

:banana:

Cooking Gas: FG Targets 1m Tonnes By 2010

From Juliana Taiwo in Abuja, 03.27.2007
The Federal Government yesterday unveiled a strategy for raising LPG (cooking gas) from the present 60,000 tonnes annual consumption to one million tonnes by 2010.
This was contained in the final report on the Nigerian LPG Sector Policy and Regulatory Framework Project carried out by a US Consulting Firm, Nexant Incorporated submitted to the Minister of Energy, Edmund Dakorou.
The report also estimated that as part of the measures to popularise the use of cooking gas in the country and reduce cost of the product, the Federal Government intends to promote the local manufacture of five million cylinders between 2007 and 2015.
Presenting the report on behalf of the consulting firm, its Vice President, Bruce F. Burke said the sector when properly harnessed is capable of creating more than 85,000 new jobs.
He said the study covered areas like supply, gas cylinder, safety measures, manufacturing capacities, key issues of affordability of cylinders and the cooking gas itself.
Part of the challenges facing the use of cooking gas is lack of availability, high cost and safety concerns. This has led to gradual decline in its ulitilisation by Nigerians who now go for other alternatives like fire woods, kerosene and other energy sources.
Commenting on the employment opportunities offered by the sector, Burke said to increase the use of LPG significantly, there is the need to invest in facilities along the entire supply chain from the new terminal storage, to distribution facilities, to the refineries.
“This is because to get the LPG from the facility to the end users the only way is through trucks. So you need a lot more trucks, drivers, supporters and we have done the analysis.

To get to one million tonnes per year of LPG consumption is a tremendous increase which requires new facility and we have estimated the number of new jobs associated with that”.
He said from the study the current consumption rate is between 50,000 to 60,000 metric tonnes per annum, which he said is very small.
On the investment required by the sector to fully achieved government’s aspiration, he said $50 million to $100 million investment will be needed to be able to get five to six million cylinders between now and 2015.
The Manager, Energy of Nexant, Dr. Larry Song, said the funding for the manufacturing of the six million cylinders will come from the government, banks and the private sector.
The Minister of Energy, Dr. Edmond Daukoru, while accepting the report recalled that President Olusegun Obasanjo had in 2004 granted the allocation to the domestic market of 300,000 metric tonnes of LPG from NNPC/ExxonMobil production plant, that was earmarked for export. He said it was meant to be a relief measure to the domestic market since the refineries that were the sole source of LPG in the country where shut down.
He said the arrangement collapsed after few months’ operation on the granted allocation due primarily to logistics problems. He stressed that government has however continued the waiver of import duty on imported LPG on annual basis in order to make the product available at an affordable price.
Daukoru said following government’s deep concern over the low level of LPG consumption in the country, it has in recent times pay more attention to the establishment of more coastal LPG depots in the country. He said government in 2006, granted the waiver on import duty and vat on imported facilities and equipments for the establishment of a coastal depot in Lagos in order to revitalize the consumption of LPG in the country.
He said policy and regulatory issues stood out prominently in the midst of the many problems affecting the development of LPG sector in the country, hence the need to institute an appropriate framework became imperative.
Explaining why Nextant Incorporated was engaged, the minister said the United States Trade and Development Agency (USTDA) provided the grant ($856,000) and technical assistance for the project.
Also speaking, the Special Assistant to the President on Petroleum Matters, Alhaji Ja’Afaru Aliyu ****, said government’s conscious effort was aimed at revitalize the declining market having clearly identified lack of policy and regulatory framework as it relates to a deregulated market. He said it was to restore and provide an enabling operation environment to the existing and potential investors in the market the need to put in place and appropriate Policy and Regulatory framework that would lead to the growth of the sector became vital.
In his remark, Greg Moore, the representative of the US Ambassador, said the US was ready to support efforts to revamp the LPG sector.

Nigeria: Zenith Bank, 5 Others Back Airport Terminal Project With N20bn

Vanguard (Lagos)

March 26, 2007
Posted to the web March 26, 2007

Lagos

Zenith Bank Plc Friday led five other banks including GTBank and First Bank Plc to arrange N20 billion loan for the completion of the Aviation Terminal II at the local wing of the Murtala Mohammed International Airport.

Other banks involved in the loan syndication, the agreement of which was signed at the new terminal building along the Airport Road, were Oceanic Bank, Access Bank and FCMB. The terminal is billed for commissioning April 1, 2006.

Speaking at the signing ceremony in Lagos, Aviation Minister, Femi Fani-Kayode, commended the participating banks for the support they have given to the project and the Olusegun Obasanjo-led government for the vision, which led to the building of the facility that, on completion, will be second in Africa in terms of meeting the standards of International Civil Aviation Organisation (ICAO).

Fani-Kayode said the banks' response was a demonstration of faith in government's campaign for public/private sector collaboration, adding that the model holds the key to reviving the retinue of abandoned projects that liter the nation's landscape, to the benefit of all Nigerians.

On his part, Dr Wale Babalakin (SAN), Chairman, Bi-Courtney Limited, the contractors handling the project, commended the participating banks for prompt response to the call for public infrastructure development, saying the facility was so far, the largest private sector funding for any project in the aviation sector.

Also speaking at the ceremony, the Executive Director of Zenith Bank, Elias Igbin-Akenzua, who stood in for the Managing Director Mr. Jim Ovia, said what has happened was the beginning of more of such collaborations by the banks to intervene in the rescue of public infrastructure to bring back national pride.

He commended other participating banks for believing in Zenith to provide leadership in the deal.

Zenith Bank is the lead arranger for the facility while Zenith Capital, a subsidiary of Zenith Bank is the project Advisor.

Speaking in the same vein, the Managing Director/CEO, Zenith Capital Limited, Mr. China Onyemelukwe, commended the Central Bank of Nigeria for the reforms that have strengthened the banking sector and made transactions like this possible.

Zenith bank, has played a major role in recent times in project financing and only last two weeks, led nine other banks, including France-based BNP Paribas, to provide funding worth N193.5 billion for Zenon Oil one of Nigeria's leading indigenous importer of petroleum products.

The airport project, which is already near completion, will be managed by Zortek Systems and Liwet Operating & Management Services, two firms reputed to be involved in major airport projects around the world, including Paris International Airport and the Franfurt Airport in Germany.

First Bank sells $175m bonds in international market

The Punch, Tuesday March 27, 2006
Stories: Chijama Ogbu with agency report

FIRST Bank of Nigeria Plc has sold $175m of bonds to become the second Nigerian lender to tap the international capital markets this year.
The bank is the country’s biggest company by market value.

FBN, which was founded in 1894 and is the country’s oldest lender, priced the subordinated bonds to yield 10 percent.

“The notes will help fund the bank’s push into retail banking,” the bank’s, Executive Director, Corporate Banking, Bola Adesola, was quoted to have said at a London meeting.

The spokesman of the bank, Mr. Jide Ogundele, also confirmed the development to our correspondent on the telephone on Monday.

“The deal was a signal that more Nigerian banks both can and will come to market,’’ the head of emerging market debt origination at Merrill Lynch & Co., Alex von Sponeck, said. Merrill Lynch managed the transaction. “Investor appetite is definitely there.’’ According to agency reports, the bonds are the first subordinated notes to be issued by an African bank outside of South Africa. Holders of subordinated bonds are paid after other creditors in a default, making them riskier than senior debt.

The higher risk is reflected in a lower rating. First Bank is rated BB-, three steps below investment grade, by Standard & Poor’s and a level lower at B+ by Fitch Ratings.

S&P grades the bonds two steps lower at B. The notes count as lower Tier II, a form of capital.

Orders for the bonds outstripped the amount on sale by almost two times, said von Sponeck.

“We could have priced a much larger deal without any problem,” he said.

Guaranty Trust Bank Plc had in January sold $300m Eurobond. This made it the first financial institution in sub-Saharan markets to successfully access the international bond market.

GTB’s issue was oversubscribed, as the bank raised $521m, but the fund managers took and alloted $350m, returning $221m to intending investors.

GTBank’s success in the international capital markets was unprecedented in the history of Nigerian banking.

GTB raised the $350m eurobond without any guarantee from the Federal Government or any international financial

Tinapa City Business Resort may be listed on NSE 2008

March 27th, 2007


The multi-billion naira Tinapa project may be listed on the Nigerian Stock Exchange (NSE) in 2008, says Sam Anani, its chief executive officer.
BLESSING ANARO & EMELIKE OBINNA

Anani who spoke last weekend in Lagos at a pre-launch media update said the authorities of the exchange have already given their consent, pending when the company would put its acts together to approach the market.

According to him, the advisers, KPMG would want the company to be operational for a period of time to allow investors know the worth of what they would be investing in.

Anani said, at the end of the day, coming out with the Initial Public Offer (IPO) would depend on market fundamentals, not just sentiments.

He explained that the project was currently worth about N46 billion, excluding the additional N4 billion being invested on the cinema and movie department.

To this end, he explained that the Cross River State government had put in place measures to ensure private sector participation, such that government involvement was negligible.

So far, he said, the place has over 24,000 tenants, while 17,000 tenants are still discussing on how to get business spaces.

He assured that by June this year, all available business spaces would have been taken up, as other delayed issues would have been ironed out, while by September, all facilities would become fully operational.

He said the place would not rely on public power supply for electricity.

According to him, 18 megawatts electricity is being generated through an independent power plant and that out of the 18 MW, only 16 MW would be required by Tinapa, while the remaining two would be utilised by the state government for street lights as part of boosting tourism in the state.

The Tinapa project is expected to be commissioned on April 2.

FG launches Niger Delta Development Master Plan

President Olusegun Obasanjo yesterday formally launched the Niger Delta Regional Development Master Plan, a blueprint for the sustainable development of the area and the final in the series of meetings on the socio-economic development of coastal states to be presided over by him.
This comes just as Shell Petroleum Development Company of Nigeria Limited (SPDC) describes as "misleading" reports that its Managing Director has been charged to court along with 19 other persons in connection with an alleged dumping of toxic waste in Nigeria.
Speaking at the launch of the Master plan, Obasanjo appealed to all political aspirants to have the fear of God and respect for the country and its constitution as they pursue their ambitions.
The President, who noted that the 2007 elections is a couple of weeks away, also urged people in the Niger Delta area to embrace peace to ensure sustainable growth.
He pledged that the Federal Government would “remain committed to the entrenchment of the ideals of democratic good governance, accountability, transparency, due process, equity, justice and pro-people God-fearing leadership in our dear nation.”
“We all have an abiding duty to join the vanguard in our nation’s march to an assured prosperous destiny”, he added.
While emphasising the need to work out a coordinated and harmonised skill acquisition programme for the Niger Delta by the end of April to ensure adequate employment opportunities for the restive youths in the area, he said this has become pertinent “so that those who decide to live in crime will be dealt with adequately”.
“The 2007 elections is only a matter of couple of weeks away. Let me use this opportunity to appeal to all political aspirants to pursue their ambitions with the fear of God, the overriding interest of our nation in the ambit of the law and in strict adherence with laid down guidelines set out by the Independent National Electoral Commission (INEC), the electoral law and our constitution. All parties, should exercise restraint and ensure that their supporters do nothing to compromise the electoral process”, he stated.
The President noted that “if by the grace of God we have a Peoples Democratic Party (PDP) President and Vice President in Aso Villa on May 29, what we are doing now will be continued. That I can assure you but to make that happen depends on you”.
While noting that there is hope in the Niger Delta, he added that “there will be genuine amnesty for those who turn a new leaf and hand over their weapons but I will not give amnesty to somebody who will point a gun on the head of somebody. I dare say to you that if you are a militant, I am a militant too. If you do not want me to show you my militancy, then do not show me that you are one”.
Regretting the insecurity in the Niger Delta, Obasanjo noted that “it costs us 50 per cent more to award contracts in the Niger Delta. So, instead of doing three kilometers of roads, we can only do one. So, who is the loser? The Niger Delta. So, you should think of that. But I will not succumb to blackmail, intimidation or threat”.
He recalled that the Bill for the establishment of the Niger Delta Development Commission (NDDC) was the second he sent to the National Assembly when he assumed office in 1999 “because the under-development and neglect in the area was unacceptable and decisive actions therefore needed to be taken to address the peculiarities of the area”.
He, however, added that “the Federal Government is convinced that the master plan that affords us the opportunity to have short, medium and long-term development plan will succeed in its 15-year time-frame if faithfully implemented”.
He said, “the region (Niger Delta) is pregnant with great potentials for development and progress, but we must push hard to deliver it. I charge all stakeholders to commit to making an unqualified success of the implementation of this master plan. Nothing but total and steadfast commitment at all levels would do. The consequences of failure are too grim to imagine, let alone allow”.
A copy of the Master plan indicate that ecological fund is to account for 50 per cent, Federal Government 15 per cent, oil and gas industry contribution is 3 per cent, gas processing industry contribution 3 per cent and other sources 29 per cent.
Meanwhile, the Shell Petroleum Development Company of Nigeria Limited (SPDC) yesterday described as "misleading" reports that its Managing Director has been charged to court along with 19 other persons in connection with an alleged dumping of toxic waste in Nigeria.
In a statement forwarded to THISDAY, the company’s management said: “We make haste to disabuse the minds of the reading public about this misleading report and to inform the public that there is no iota of truth whatsoever in the report. For the avoidance of doubt, SPDC has not been charged to court in connection with any alleged dumping of toxic waste anywhere in Nigeria.
"However, SPDC is aware that the Federal Government has filed some charges at the Federal High Court in Abuja against SPDC and some other corporate organisations, including some individual employees of these organisations, concerning some radioactive tools which allegedly got missing in transit between SPDC's Ogunu jetty and the contractor's work site at a rig location in SPDC's western swamp area.
"The main charge against SPDC and its affected staff is that we allegedly stored, handled and transported radioactive sources from the jetty to the rig site without authorisation from the NNRA. SPDC has not been charged formally and our lawyers are studying the information obtained from the press to determine the remedies that may be available to us for establishing our non-culpability in the matter.
"Radioactive tools are widely used globally to differentiate oil from gas in the formation and Shell, like other operators, have contracts with Technical Companies who own as well as being responsible for importing, storing, transporting and using radioactive tools to and from location they need to work with them.
"Oil Companies enter into a contract with these Technical Companies who carry wellbore evaluations to help determine presence, nature and volumes of oil gas the well has found. This is standard worldwide practice.
"The Technical Companies are expected to obtain all requisite permits to enable them operate in Nigeria; we understand that the Contractor in question had the requisite licenses. Some of the tools used in well evaluation do require the placement of radioactive sources. The tools are property of such Technical companies.
"The Technical Company (contractor) was evaluated, inspected and duly pre-qualified in line with regulatory standards and have the required Government permits to operate in the line of business in Nigeria and have been doing so for many years: the terms of the contract required it (the contractor) to ensure safe handling, storage and transportation of the tools to the site of the activity.
"Shell only provided a tugboat to help push the barge containing the bunker with the radioactive source and other materials from our Jetty to the rig site under in order that it can be in a security convoy provided by security agencies, due to the security situation in the swamp.
"The radioactive source in question was acquired, stored, secured in a bunker with special padlock and transported to Ogunu jetty by the contractor. The contractor also supervised the loading of the radioactive material onto a barge. It was the contractor that observed and reported that the radioactive source was missing from the bunker.
"Ever since the radioactive tools were declared missing, SPDC has given its full co-operation to the relevant authorities in the concerted effort to trace the alleged missing tools, and we will not relent in this effort until the tools are found.
"SPDC remains committed to conducting its operations in accordance with applicable regulations on health, safety and environment."

Read this article: Arik Air and its ambitions truly rock, will be a rough ride for Virgin Nigeria and the others.:lol:

Arik to Build Largest Hanger in W/Africa:)

By Chinedu Eze, 03.29.2007

Lagos

Arik Air has announced the construction of a super hanger that will be located at its Lagos facility at the domestic wing of the Murtala Muhammed Airport.
The Managing Director of the airline, Mr. Mike McTighe told journalists on Wednesday in Lagos that when completed the hanger will provide maintenance facility for all airlines and will become the largest of its kind in West Africa.
While unveiling the artistic impression of the super hanger, McTighe also announced that Arik will take delivery of three additional aircraft to its fleet, disclosing that one of the aircraft, CRJ900 built this year will arrive Nigeria at the weekend.
The other two aircraft, brand new 126-seater Boeing 737-700 will be delivered next month after a handover ceremony in Seattle, United States on April 25.
These two aircraft are already designated to fly Central and West Africa routes, which will resume in June this year.
"These additional aircraft represent an investment of circa $100 million and together with the airline's two Boeing 737-300, three Dash 8 Q300 operated by Denim Air, two Hawker XP JETS and three Bombadier CRJ200 due in May, will swell the fleet to sixteen by June 2007 making Arik air the largest commercial airline carrier in Nigeria."
McTighe also said that the foundation stone laying ceremony of the super hanger, which will be laid by the out-going and in-coming Presidents of the Federation, will take place in May this year and the project is expected to be completed in 2009.
"The engineering partner of this state-of-the-art technical and maintenance facility is yet to be confirmed but to put a perspective on the scale of the hanger it will easily house an Airbus A 380 and Boeing 747-800 the biggest and the longest aircraft in operation worldwide today," McTighe added.
He said that the development of the super hanger will reinforce the airline's commitment to providing all airlines in Nigeria with an opportunity to deliver passengers to their destination in well maintained, safe aircraft.
The Arik boss disclosed that over 150,000 passengers have flown with the airline since it commenced operations six months ago, "and although we have had many challenges, we are extremely proud of what we have achieved and of our plan to grow the airline and its facilities."
He also said, "Very soon we will be the largest commercial airline carrier in Nigeria, and despite this fact we have never lost sight of our commitment to safety and to providing a route network and service that Nigerians both need and want."

The above news is great; New Aircraft as well as a new hanger.:cheers2:

Looks like the airline industry is going the way of the banking industry.

MTN Nigeria Earns N275bn in 2006

By Shina Badaru, Contributing Editor, 03.29.2007

Lagos

MTN Nigeria Communications Limited, the telecoms market leader, raked in over N275 billion in revenue from an estimated 12.1 million subscribers on its mobile service at the close of year 2006, investigations have revealed.
MTN Nigeria is one of the very profitable international operations of South Africa's MTN Group which is due to release its 2006 financial report today in Johannesburg, South Africa.
Efforts by the South African operator to further expand its footprint beyond Africa into the Middle East suffered a setback when it recently lost a bid for the third mobile licence to MTC, the Kuwaiti operator that owns controlling stake in Celtel Nigeria which staked a whooping $6.1 billion for the deal.
According to the figure obtained, MTN Nigeria's revenue performance in 2006 from its post-paid, pre-paid, value added services, handsets and accessories, interconnect and other revenue witnessed a chequered growth peaking at over N25.5 billion in November, its best month in the year, 2006.
Revenue dropped to N20.4 billion in February 2006 from about N21.3 billion the previous month. March earning was N21.7 billion while April dropped marginally to N21.4 billion but grew in the succeeding months. In May the same year, earning was N22.2 billion growing further in June and July to N22.8 billion and N23.1 billion respectively.
In August, it grew further to N24.2 billion but dropped to N23.8 billion in the succeeding month of September. The first two months of the last quarter of 2006 also witnessed revenue growth with October accounting for N25.5 billion and November recording N25.5 billion. December's earning was N23.5 billion in the year that MTN recorded a fiscal Year-to-Date earning of over N275 billion.
Within the year, the company raked in a post paid connection fee of N5.5 million while earnings from airtime was N5.3 billion. Monthly fees from post paid connection was N717 million while earnings from post paid subscriber roaming was N886.5 million with VAS (valued added service) accounting for about N1 billion. The total post paid revenue for 2006 peaked at N8.2 billion.
On the other hand, the 2006 total prepaid revenue peaked at N226.4 billion with prepaid connection fee accounting for N2 billion and prepaid airtime raking N202.9 billion. Within the period, prepaid monthly fee was N12.3 billion while subscriber roaming earnings was about N855 million. Earnings from VAS was about N1 billion with prepaid SMS accounting for N7.2 billion.
Ahead of today's announcement, MTN Group had earlier announced in its interim result that its total subscriber number grew within the last six months by 9.4 per cent to 25.4 million.
According to our checks, within the Nigerian operation of MTN, total subscriber number grew from 8.7 million in January 2006 to 12.1 million in December 2006 with prepaid accounting for over 12 million while post paid users were only about 100,297 users.
The MTN Group operates in Botswana, Cameroon, Cote d'Ivoire, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Swaziland, Uganda, Zambia, Afghanistan, Benin, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Liberia, Sudan, Syria and Yemen.

Nigeria: Foreign Reserve Drop to $42.9 Billion


Daily Trust (Abuja)

March 29, 2007
Posted to the web March 29, 2007

Nigeria's foreign reserve dropped to $42.98 billion as at Friday last week from the $43.38billion that the nation had two weeks ago.

The decline was caused mainly by the withdrawals made last week by the Federation Account Allocation Committee (FAAC) from the Excess Crude Proceed Account to fund the shortfall in revenues recorded in January and February this year.

The funds were paid to the three tiers of government as statutory allocations this month. A total of N205.234 billion was disbursed to the federal government, 36 states and the local governments in the country.

The current level of reserves represents a decline of 0.92 per cent or $400 million over its former level of $43.38 billion as at March 16.

According to the Central Bank of Nigeria 's Economic Indicators Report for the week-ended March 23, the current level of the reserves can finance 25 months of foreign trade at the current rate of foreign exchange.

The CBN report said that the average volume of output of crude oil stood at 2.15 million barrels per day (bpd) as at March 23 as against the federal budget of 2.5 million bpd crude oil production for the current year.

The renewed increase in aggregate foreign exchange demand under the Wholesale Dutch Auction System (WDAS) also accounted for the reduction in external reserves level, in addition to the withdrawals from the excess crude account.

Currency-in-circulation fell during the period under review from N729.99 billion to N721.6 billion

Another 5 star hotel for Lagos

Daily Champion (Lagos)

March 29, 2007
Posted to the web March 29, 2007

Ogun State government said yesterday it had concluded plans to establish a 270-room five-star Hotel in Lagos.

Ogun State Properties and Investment Corporation (OPIC), Managing Director, Tokunbo Odebunmi told newsmen in Abeokuta Tuesday at the ongoing ministerial briefing on the activities of his corporation at governor's office that the project would cost N1.3 billion.

According to Odebunmi, the hotel would be sited on the remaining land at OPIC plaza beside Ikeja Sheraton Hotel in Lagos.

Already, Mariott International Development has been commissioned to manage the hotel while OPIC has engaged hotel developers and managers to set up the institution.

Besides, Odebunmi who is also patron of the Ogun State council of the Nigerian Union of Journalists (NUJ), said OPIC had also finalised arrangements to establish stone quarrying at its estate in Abeokuta.


He stressed that apart from OPIC investment in properties, it had also generated thousands of employment opportunities for various categories of workers and professionals.

Nigeria: Akwa Ibom's Fiesta to Remember

Daily Champion (Lagos)

March 29, 2007
Posted to the web March 29, 2007

Nnaemeka Meribe
Lagos

UYO, Akwa Ibom State capital is now agog following the Ibom 2007 Fiesta which kicks off today.

The fiesta which will include an invitational golf game is part of activities put together for the commissioning of Le Meridien Ibom Hotel and Golf Resort.

Top golfers including world star, Colin Montgomerie, Nancy Lopez and Retief Gooson as well as legion of Nigerian professional golfers will slug it out at the lush green course which is one of the best in this part of the world.

Beyond the golf show, there will also be cultural and entertainment extravaganza which would serve as an opportunity to showcase the rich cultural heritage of Akwa Ibom people to the world. Top Nigerian musicians will also thrill the golf stars and other tourists who have converged on Uyo.

Artistes who would thrill at the fiesta include Lagbaja, Tu-Face Idibia, D'Banj, K.C. Fresh, and Mista Xto.

To also perform at the concert include, Nu Skool, Sir Wilker - as well as top disc-jocky, Jimmy Jalt. The fun will be driven to the next level when such ace comedians as Gbenga Adeyinka I, MC Basket Mouth, Klint Da Drunk, Omo Baba and Oga Joe move to crack some ribs with their jokes.

The multi-billion naira Le Meridien Hotel and Golf Resort is one of the initiatives of Governor Victor Attah's administration which undoubtedly would boost tourism in the state.

Governor Attah, an architect by profession, has changed the face of Uyo since 1999 when he assumed office.

The Ibom Plaza, an architectural masterpiece which welcomes visitors into the town has been described as the best roundabout in the country.

The plaza which houses a garden with a large screen television and shopping arcade, has become a tourist attraction of some sorts with visitors to Uyo trooping there daily to take photographs.

Governor Attah who is bent on making the fiesta a memorable event described the Le Meridien Hotel and Golf Resort as a legacy which will open the state and country to local and international investment.

We has also assured golfers and tourists who would grace the fiesta of a swell time laced with the traditional Akwa Ibom hospitality.

What we have been able to achieve here is a legacy that will stand the test of time. It is only proper that we make the inauguration an equally memorable occasion," he said.

Also, Akwa Ibom State commissioner for Tourism, Mrs Asa Ebieme, has promised that the state is poised to make the sports, cultural cum entertainment fiesta a success.

She said the event will not only be an avenue to showcase the state's cultural endowment but also will promote tourism potentials of the state.

While describing the golf resort as a laudable project, Ebieme said one of the reasons for executing the project is to attract businessmen and women to partner with the state government in its public and private sector synergy.

"As we speak, all the infrastructural supports that will showcase Akwa Ibom as a tourist destination have been put in place. The five star hotel and golf course will make vistors to the state enjoy our hospitality to the fullest", she said.

Akwa Ibom State may not have witnessed the kind of influx of tourists that have come for the fiesta. This is an indication that Governor Attah's initiative was a step in the right direction.

Akwa Ibom State was created in 1987 by the General Ibrahim Babangida's regime. The oil rich state is famous for its delicious cuisines.

The Le Meridien Ibom Hotel and Resort would be commissioned tomorrow morning while the invitation golf game will take place in the afternoon and the musical concert in the evening.

Nigeria: Aspect Software Partners Customer Contact Solutions

This Day (Lagos)

March 28, 2007
Posted to the web March 29, 2007

Idowu Sowunmi
Lagos

Aspect Software Inc., the world's largest company solely focused on the contact centre, has named Customer Contact Solutions Nigeria Limited (CCSNL) as its newest channel partner in Nigeria.

According to Aspect Softwarfe Inc., the relationship would strengthen sub-regional market penetration by Aspect and enable companies in Nigeria and West Africa to purchase contact centre solutions for customer service, collections, and sales and telemarketing from a single, local vendor.

Aspect Software Regional Sales Director for Africa, Henry McCracken said "CCSNL's breadth of experience in the contact centre industry, support infrastructure and commitment to customer service will provide great additional value to our customers in Nigeria and West Africa." He also said the "partnership will not only benefit CCSNL and Aspect but any company trying to build a successful contact centre in the region."

To the CCSNL Managing Director, Ikenna Odike, "CCSNL is proud to partner with Aspect Software, and we think our work together will make a major positive impact on the contact centre industry in Nigeria and West Africa as a whole."

He added that "this is a great opportunity for CCSNL to become not only the leading contact centre software vendor in West Africa, but the leading contact centre outsourcing destination in Africa, utilising the complete suite of Aspect products."

The Aspect Signature, Unified IP and Performance Optimisation product lines include contact centre solutions ranging from automatic call distributors, diallers and voice portals to computer telephony integration, workforce management, quality management, performance management and interaction optimization applications.

Aspect products feature open interaction architectures that support new and emerging technologies, such as voice-over-Internet protocol (VoIP), while facilitating simplified integration.

CCSNL was established in 2004 to grow the contact centre market in Nigeria. It operates predominantly in the outsourced contact centre, communication consulting, maximisation services and value-added services arenas. It also enables its customers to communicate using state-of-the-art methodologies and application technologies in voice, Voice-over-Internet Protocol (VoIP), mobile telephony, intranet, fax and email.

Besides, Aspect Software Inc., founded the contact centre industry and is now the world's largest company solely focused on Internet Protocol (IP) and traditional voice-based products and services for customer service, collections, and sales and telemarketing business processes.

Aspect Software powers more than 125 million customer-company interactions at thousands of in-house and outsourced contact centres around the globe. Its trusted signature product line offers Automatic Call Distributors (ACDs), diallers, voice portals and computer telephony integration (CTI).

The company's leading Contact Center Performance Optimisation product line provides workforce management, quality management, performance management and interaction optimization applications. Its pioneering Unified IP Contact Center product line delivers a comprehensive, multi-channel solution. The company has operations across the Americas , Europe, Africa, the Middle East and Asia Pacific.

Nigeria: Hirest Boosts Broadband Internet Provision

This Day (Lagos)

March 28, 2007
Posted to the web March 29, 2007

Efem Nkanga
Lagos

HiREST Africa Limited, a broadband services provider has stated that it is poised to boost broadband Internet service provision in the country through a partnership arrangement with some foreign partners.

According to a statement made available to THISDAY, Hirest will deploy a new approach to its service delivery machinery to drive its market share.

The company, which commenced full operations barely 12 months ago with Mr. Igho Mrakpor at the driver's seat, stated that it is focused on providing extraordinary services to its customers across the country and in the West and Central Africa region.

Mrakpor, who declined to name who his foreign partners are, however stated that HiREST was set up basically to fill the gap that hitherto existed between service providers and their customers.

According to him "before we commenced business, we discovered that there was yearning gap of service inadequacies. We noticed that subscribers complained about unstable and unreliable networks. It was in an effort to bridge this gap that HiREST was set up and we intend to do all that is required to close this gap," he disclosed.

He reiterated that though the Internet business in Nigeria is no doubt witnessing one of its glorious moments as today's customers are no longer conservative, but added that Nigerians are well aware of global developments and as such demand better services.

Mrakpor stated that "that is why in this market today, we have brought a new approach in service delivery to the market. We do not believe that we should just take a customer's money, give him his equipment and disappear. He added that the only thing that will make the Internet service sector better again is to make the "Customer King" once more and to give him value for his money".

"We are customer focused, at HiREST "the customer is king; the customer is first for us. While we look at customer satisfaction, we ensure that we exceed our customers' expectations," he added.


Mrakpor stressed that there was a need for a paradigm shift by Internet Service providers to put the customer back at the centre stage and provide services to them instead of overselling bandwidth and leaving customers to suffer the attendant poor service quality associated with such actions. Hirest in a move geared at establishing a closer relationship with its customers, has also opened two new offices in Abuja and Port Harcourt. The Abuja office is the company's International office, while the Port Harcourt office will serve the East and Central Africa office. "Our customers are already enjoying better services as a result of this," he noted.

HiREST Africa Limited was actually incorporated in 1993 as a private limited liability company and was involved in the provision of backbone support services or Internet service providers. The company was recently repositioned by a new team of investors and professional managers to become a Multimedia Service Provider with focus on Internet Service provision and satellite broadcasting services.

HiREST provides its Internet services through VSAT (KU Band and C-Band). The products are tailored for corporate organizations with different product ranges; for one user, seven users, as well as products for 20 to 200 users.

Nigeria: Tinubu to Re-Build Lagos City Hall Next Week


Vanguard (Lagos)

March 28, 2007
Posted to the web March 29, 2007

Lagos

Governor Bola Tinubu of Lagos State, yesterday, promised to commence the immediate rebuilding of the Lagos City hall and restore its lost glory by moving contractors to site next week.

Governor Tinubu who made the pledge at the Campos Square venue of the Lagos Island rally of the Action Congress (AC) said following the representations made to him by some senior and influential people of Lagos Island, he has decided to take up the project and stop its continued decay.

He said it was condemnable that the edifice which had served as one of major landmarks was burnt and destroyed during the tenure of Senator Musiliu Obanikoro as the chairman of Lagos Island local government in 1997.

He appealed to youths in the area to cooperate with the contractor when he is mobilized to site by ensuring that he encounters no form of difficulties in the process of ensuring the rehabilitation of the building.

Governor Tinubu said he feels compelled by the fact that as a scion of the Tinubu family of Lagos, he is morally bound to ensure that one of the landmarks of Lagos city is not lost and forgotten.

The governor reminded the people of the area to massively vote against Senator Musiliu Obanikoro and other candidates of the Peoples Democratic Party in the coming general elections as the senator traded away the mandate of the people of Lagos in Abuja.

Tinubu condemned the plan by the governorship candidate of the PDP, Senator Musiliu Obanikoro, to scrap LASTMA.

plans to also discontinue the operations of the Alpha Beta as the tax consultant to Lagos has exposed Obanikoro as a candidate who is bereft of ideas and a complete illiterate.

Governor Tinubu said what Obanikoro and his ilks have failed to realize is that it was the financial re engineering which Alpha Beta brought about that ensured that the internally generated revenue profile of Lagos rose from 600million which it was in April 1999 to over N5b presently.

While addressing the rally, the Action Congress Governorship candidate, Mr Babatunde Fashola promised to upgrade the Campos square to a mini stadium in addition to the Alakoro sports ground.

He pledged his determination to use qualitative leadership to liberate the people of Lagos and improve their lot when he assumes office in May 2007.

Fashola who described himself as the actualiser said he has learnt the ropes from the great teacher and master, Bola Tinubu and is ready to move Lagos to the next level.

Free Trade Zone - Lagos Signs MoU With Chinese Govt

Vanguard (Lagos)

March 30, 2007
Posted to the web March 30, 2007

Olasunkanmi Akoni
Lagos

THE Lagos State Government has signed a Memorandum of Understanding (MoU) with the Chinese Government for the development of the Lekki Free Trade Zone.

Governor Bola Tinubu of Lagos State who signed on-behalf of the state government at the just refurbished Lagos House in Marina , stated that with the project, the investors have the prospect of dominating the much coveted West African market.

The governor therefore urged the investor to as a matter of urgency seize the opportunity to commence in earnest the project which Tinubu said would not only generate massive employment, but would ensure the geometric development of the economy of Lagos .

He noted that several Asian countries have indicated interest in the project as well but the Lagos State Government decided to stick with the Chinnese because of their track record.

Tinubu recalled the rapid transformation which Shanghai town had undergone as a clear demonstration of the benefits which an organized market like a free trade zone could bring, hoping that same would come to Lagos .

While commending the tremendous level of commitment displayed by the people of China who are involved in the project, the governor reassured that the Lekki community and the state government is ready to ensure that the project become a reality.

Speaking earlier, the leader of the Chinese delegation who is also the Secretary of Jiangsu Provicional Committee of the Communist Party of China, Mr. Li Yuanchao expressed confidence that the project would be a reality, stressing that the project would further bring about greater cooperation between Nigeria and China

:banana:

Any news or Pictures on the new Calabar Airport??

Or the Big qua Mall??

LOS is already the biggest airport in West Africa!

What would be nice is it were the "best" airport in West Africa and with a bit of hard work, the best in Africa. Such a situation would entice Virgin Nigeria and other Nigerian carriers to develop LOS into a regional/continental connections hub. For instance, passengers from Southern Africa can fly to smaller airports in Europe and North America via LOS. It's possible to lure them not just with good fares but also a premium airline product. Same goes for West African pax on their way to Europe, US, Asia, and East/Southern Africa.

The main hurdle for a super terminal in LOS is finance and as such only the private sector can take such a challenge! The facilities at Murtala MOhammaed International Terminal have been slightly improved over the years but as I said above it will take some SERIOUS investment in a brand new mega terminal capable of handling 20million+ pax a year with room for expansion... The good news is that MMIA already has sufficient area to make this dream a reality one day...

Didn't they privatise the MMA already? Or are they still in the process?

Here is a link to images and specifications of the above project!!!


http://www.lahmeyer.de/e/units/ge/ps_ge4_e_230340_niger_delta_2006_10.pdf

Perhaps Nigeria could help Ghana with its crippling power problems. I had that there was some deal in the pipeline to help with the power crisis happening in Ghana from Nigeria. Any idea as to what is happening with this?

English Premier League agrees to help Nigeria

The English Premier League has agreed a deal to help Nigeria repackage its football league and make it more commercially viable.

Premier League board chairman David Richards said the deal was an opportunity for the Premier League to repay Nigerian football, which had contributed immensely to the English game, local media reported on Monday.

"We have benefited and we will continue to benefit from (the) Nigeria Football League," Richards told reporters in the Nigerian capital Abuja at the end of a two-day visit.

"We see our cooperation as a way of giving something back," he added, according to the Leadership newspaper. Some of the Premier League's leading scorers are Nigerians, including Yakubu Aiyegbeni of Middlesbrough, Nwankwo Kanu of Portsmouth and Newcastle United's Obafemi Martins.

Under the agreement, the Premier League will train Nigerian officials to improve the technical standard and organisation of the domestic league.

The Premier League has also sealed separate deals with sponsors to pay referees in the 20-team league, provide balls and broadcast matches in England.

The agreement is designed to make clubs in the cash-strapped league self-sufficient and free them from government management, Richards said.

"It is going to be a gradual thing, ultimately government will not be running the clubs," he said.

Celtel partners Cross River govt over TINAPA

Celtel Nigeria is partnering the Cross River State Government in the launch of TINAPA, the international business resort, which comes up on ***** 2, 2007.

According to Head of PR, Events & Sponsorships, Emeka Oparah, Celtel Nigeria , is excited about the possibilities and business opportunities, which TINAPA will provide to Nigeria and the people of the country.

He explained that the company’s sponsorship of the launch of TINAPA was borne out of the belief that great things could come from Africa and indeed Nigeria.

“Coming just days after we launched the first ever flat tariff in Nigeria , the launch of TINAPA could not have been better timed because the world class standards of infrastructure in the business resort and the philosophy behind the project, like the Celtel Flat Tariff, represent a paradigm shift for Nigerians.

Oparah commended the Governor of Cross River State, Mr. Donald Duke, whose vision and developmental initiative nurtured the TINAPA dream to reality.

“We are particularly delighted that the Celtel Shop will be one of the few businesses ready and fully operational at the time of launch next week”, he stated.

The Head of PR stated that the quest to complete the Celtel Shop ahead of the launch was fired by the company’s commitment to its corporate philosophy of making life better.

The Celtel Shop, a world class ultra-modern business outlet designed to offer sales and customer service solutions, will also be commissioned during the TINAPA launch.

Celtel’s creative deployment of branding collaterals will add colour to the beautiful celebrative decorations that will adorn the entire TINAPA business resort during the occasion, including the brand *** buses, which will ferry guests and visitors to and from the Resort from Calabar town.

Meanwhile, Celtel Nigeria has taken the good ***s of its *** Flat Tariff package to the ongoing Enugu International Trade Fair.

The company, which is one of the major sponsors of the fair, the biggest trade show in the South-East of Nigeria, is using the occasion to educate visitor about how to take advantage of the country’s first and only non-discriminatory low tariff regime.

Celtel Nigeria last week unveiled the FLAT “Unity Tariffs”, which reduced call costs to as low as 33K per second, and come in three different plans:
•The “Simply Special” plan targeting the Youth and average consumers
•The “Simply Smooth” plan targeting professionals and heavy users
•The “Simply Smart” plan for SMEs and ultra heavy users.

The *** FLAT tariffs eliminate the complexity associated with choosing price plans, by offering customers affordability, simplicity, and greater transparency.

Celtel also announced *** international call rates, which lowers prices by 45% and reduces calling costs to as low as 55K per second for popular destinations like UK, US, UAE, amongst others.

At the Enugu Trade Fair, Celtel has also established boots within its stand where guests can view live demonstration of airtime transfer known as Celtel Me2U and how to migrate to any of the ***ly introduced tariff plans.

Speaking at the Fair, Celtel’s Regional General Manager (South-East), Mr. Austen Okoronkwo , the *** tariffs are intended to make life convenient for phone users and eliminate the usual price discrimination across networks by operators, necessitating the need for people to carry more than one phone.

He said the *** Celtel flat tariff regime is unique in many respects as it takes into consideration Nigerians in the various economic strata, removes complexity of call pricing and choice of tariff plan, adding that everyone can easily find and choose a suitable tariff plan no matter their income level.

Coolio

I cant eait to see the *** Calabar Airport renders and the monorail!!

Nigeria Realizes Tourism Dream With Tinapa

ive African leaders are expected to join President Olusegun Obasanjo at the monumental event of the commissioning of the Tinapa Business Tourism Resort in Calabar, Cross River State tomorrow. Undoubtedly, this is the biggest physical development ever in Nigeria's tourism industry. Its realization has set the country on an irreversible course of progress reports Nseobong Okon-Ekong.

Mr Sam Anani, CEO, Tinapa Business Resort Limited previously handled by the Cross River State Finance and Commerce Ministry. As a Commissioner in the state executive council, he brought his experience as a banker to bear on the finances of the state. He was also in these strategic offices at the out-set of the biggest entrepreneurial dream by the Governor Donald Duke administration. And when the time for the home-run of the project came, he was asked to step-aside from the state execo and pay more attention to Tinapa, which is planned as a commercial leisure hub for West Africa.
One of the visions behind Tinapa is to create a hub to feed from the local manufacturing, particularly from the Calabar free trade zone. It is also positioned to drive local and regional tourism, and subsequently international tourism. The unquantifiable local employment to be generated by Tinapa is something to look forward to, along with growth in manufacturing and SMEs.
Tinapa is designed as a mixed-use retail, wholesale, redistribution, entertainment and leisure destination to carter for Nigeria and the whole of West Africa. There is no where in the world that has all the components that Tinapa boasts of in one destination; as the project moves from Phases 1 to Phases 2, 3 and 4 all these components will become available.
Tinapa is also a waterfront development and has a Free Zone status, which comes with its own benefits and advantages. For instance, mixed-use retail and resort development within Tinapa FTZ
The whole concept is deliberate even from the location of Tinapa. It is located by the river, it is contiguous to the Calabar free trade zone, next to the port. This whole stretch of development was deliberately put together. That is talking about; 80,000ms of wholesale, retail and warehousing facilities. Tinapa has leisure/entertainment complex (hotels, casino, golf, leisureland, movie studio and eco-tourism) distribution node of Nigeria and economic hub of West Africa. It is managed by World-class facility and property management company (Broll Property Group SA, affiliated to Cb Richard Ellis)
Duke didn't just jump into the project. KPMG did a study in 2003 and came up with a figure of US$30 million that Nigerians spend on airfare alone, just going to one destination. The amount for purchase of goods and services was over US$1 billion.
Take into consideration that those who can afford to travel represent probably between 5 and 10% of Nigerian retail and consuming market, it means a development like Tinapa in Nigeria will give flexibility and opportunity to over 90% of the population yearning to buy products, yearning to buy quantities they can afford, that they are not being forced to buy by the big guys who travel to these countries to buy. And yet able to go to an environment where while they are buying these goods they will have an opportunity of watching the movie, have a drink in a good restaurant, etc.
Tourism today is one of the greatest employer of labour in the world: Tinapa is that part of tourism which captures the business flavour of tourism.
Structured retailing provides market outlets that help to grow manufacturing, including SMEs. Part of why the government decided to work with the private sector to set up Tinapa is to ensure that citizens are gainfully employed.
There is a one-stop approval process for setting up operations: In Tinapa, a process that is seamless has been put in place. A foreigner who wants to set up a business, the process is slightly cumbersome and stressful. But in Tinapa because it has a free trade zone status and the process of setting up a business is a 24-hour thing. Your approvals comes within hours and you can start your business.
The whole infrastructure at Tinapa is world-class. Because it is a free trade zone, it has 100% tax and import duty exemption. However if you are bringing the products into Custom territory, you will pay tax. The system enables you pay duty at point of sale. If the products are banned, then you are not allowed to bring them in at commercial quantity. The fact that Tinapa allows you to bring in even banned products into that destination of the free zone does not give you right to bring in banned products into Nigeria because Tinapa is resident within the Nigerian territory.
The Custom procedure in Tinapa will be such that an institution like the World Bank is involved to ensure that everything is done right. Pent-up demand of the largest consumer market in Africa will be released by the unprecedented scale of the range of products on offer at Tinapa. Over 130 million Nigerians cannot afford to travel to world class business and leisure destinations.
Aside from the resident population in Calabar, Tinapa is expected to attract three million annual visits from a diversified target market. Over 15 million people reside within two hours drive: For those who do retailing, that is huge going into one destination.
Direct and indirect current employment at Tinapa is put at over 5,000 and 15,000 when operational. At peak during construction, Tinapa employed over 6,000 Nigerians. When Tinapa is fully operational, both direct and indirect employment will be averaging about 15,000. It will generate an estimated savings and new inflow of over US$1b annually.
There is a great synergy between CFTZ & TFTZ: Calabar Free Trade Zone, which is a manufacturing free trade zone. This is expected to grow substantially because Tinapa would provide an outlet for most of the things that they produce. Over a period, most of the retail outlets will also set up manufacturing because they can't be bringing in these things from abroad all the time because they are expensive. Tinapa will therefore have a positive effect in growing manufacturing.
Duke is a leader with a courage to dream big and focuses on what he wants to do. Seventy Five percent of Cross Riverians are farmers. He invested in agriculture to enhance yield and production to create rural employment and empower the communities. That whole process is up and running and functioning very well.
Cross River State has over 20 tourism sites. They were all moribund. Governor Duke took that upon himself to grow this area. The objectives of the tourism drive are to create urban employment and open up markets for farmers and other traders.
Tourism does not just happen. Cross River State has all the basic elements that every tourist destination requires. It is clean, very peaceful and the people are hospitable. These are attributes that if you want to grow and improve tourism, these must be present.
To be able to market tourism commercially, all the flavours must be integrated. In Cross River State, all these flavours have been captured. There must be something in Cross River State to attract you. Tinapa represents business tourism. The Ranch is about Leisure Tourism. The rain forest is the largest in the whole of West Africa. It represents eco-tourism.
In Cross River State, institutions have been created to ensure that these projects outlive the government of the day. Each of these products has recognition from the State House of Assembly. More so the private sector is involved.
Tinapa today, including infrastructure, is about N46 billion. The Movie studio is not an investment by Tinapa but is a partnership between the state government and a private investor. If you add that, you have an investment of about N50 billion. That is how mega this project is.
It is the evidence of the courage to dream for a state government to partner with the private sector in such a huge project. State money in this whole project is less than 30% of the total cost with 70% coming from the private sector. State government funding goes into infrastructure alone.
13 banks have invested N4.6 billion through the SMEEIS window. NDDC has also invested. River State is the only government, apart from Cross River State that has invested. There are three private equity investors that have invested N55 billion. The state government has raised two bonds of N10 billion each from the market. This is possible because of Mr President's support for the project. He gave a sovereign guarantee that made it possible for Nigerian banks and other corporate investors to be able to put together this money. And that goes to show the seriousness with which the Federal Government and Mr President in particular have taken this project. It was so difficult to raise money initially but the seed money of N5 billion paid Julius Berger to start construction work was provided to Cross River State Government by UBA. That seed money of N5 billion is part of their N8.4 billion investment.
The hotels would be operational by June 2007. Although the construction work is almost complete, the furniture and fixtures, which are the internal items, are still on the high seas coming.
The cinema will be operational in June, while the casino will be operational in August. The interior of the cinema needs specialised items. When you order, they have to produce them. And some of these items are already being ordered.
But the main components, which is the shopping, the wholesale and the retail part of the project is 100% complete.
Today, total lettable area is about 71,000 square metres. Confirmed tenants 24,000. Discussion is on with another 17,000 tenants. What this means is that 50% of the lettable space of Tinapa is likely to be taken between now and end of April, 2007. The target is that by end of June 2007, there should have been tenants to take 100% of the space. By September, every component of Tinapa would have been fully operational.
An international firm of security operatives, Princeton Euroinvest, has been appointed to implement the security infrastructure: The security infrastructure for Tinapa is world-class. In addition to the police manning the outside, so that when you come into Tinapa, there will be no fear of harassment or robbery.
Installation of the power infrastructure is ongoing. Power is already available on site. The system is operational right now. There is power running 24 hours a day. That was done through the IPP.
Cross River State is partnering with Afreximbank to build a monorail linking the airport to Tinapa. The monorail will take passengers right from the airport to Tinapa because in the next couple of years, Calabar would be choked. Traffic is being diverted straight to Tinapa out of the main city.
Sam Anani, CEO, Tinapa Business Resort Limited spoke on the following issues:

On the IPP:

The way we have structured the IPP is that we got a contractor that has been doing projects like this CET Power. They did the Abuja IPP and for multinational companies in Lagos and around. We got them to invest their money in the equipment. What we did at Tinapa is to guarantee their revenue because those who are using power will pay for it. It is only the power used in the common areas like the street lights that will be the cost of power for Tinapa. It is an arrangement that really is not costing Tinapa anything. We are not putting all the money upfront for the IPP. We are getting 18 megawatts of power and we only need 16 megawatts at peak. We are selling the extra two megawatts to the Cross River State Government to power all their street lights. You will have a situation whereby Calabar will be lit 24 hours and that goes to support tourism so that people can have fun and go about their businesses 24 hours.

On listing on the NSE:

We are one of the very few companies that the Nigerian Stock Exchange has issued approval without us going through the rigorous of listing requirements because of the nature of the project and the investment that has gone into it. The Stock Exchange has given us approval to list whenever we want to list. Our plan is to take Tinapa through an IPO and take it to the market early 2008. The justification is that we want Tinapa to trade for almost a year so that people can see revenue streams in order to make the IPO a massive success.

On Custom duties:

Nigeria will make more money on duties than it is otherwise making. If a product is dutiable, you don't need to see the Customs man. As you're paying for the goods at the till, the duty is automatically calculated if you are taking the goods into Nigerian Custom territory. Again, it depends on the quantity. The truth is Tinapa would make more money for Nigeria as far as duties are concerned than what they are collecting at the ports of entry. Tinapa is targeted at West and Central African markets. People who come from outside Nigeria to buy things in Tinapa don't have to pay duties because they are taking the goods out of Nigeria. They will pay duties when they get to their own countries if the goods are dutiable. But Nigerians who go there to buy and who bring the goods into Nigeria at commercial quantity will pay the required duties. The rates will be embedded in the system we are putting in place. As you are paying for the goods, you are already paying the duties on the goods.
We have been able to get necessary approvals to the extent that if you buy goods in Tinapa for personal use, it is duty-free. Mr President has gracefully approved quantity of goods that can be classified as personal use. Similar goods that will arrive Kano or Lagos will be more expensive for Nigerians. So we believe that Nigerians will start driving and flying to Tinapa to buy products because all the products that you will find in Lagos, London, New York, etc we are bringing into Tinapa.

On revenue from tourism and agriculture by Cross River State Government:

Cross River State has run government like a private entity. What the government has done is to create the enablement for Cross Riverians to own their own assets and make money out of it. Take a product like pineapple, which is an agricultural product. Before Governor Duke, there was pineapple. But today, most of our pineapple farmers have cars. What he did was to create the environment where they can access training so that they can enhance their yields.
In Tinapa, the government is investing in infrastructure, the roads, street lights and all other components of the structure. Those things are not making money. But Tinapa has signed a development agreement with government of over 40 years during which the government will be able to amortise its investment. We will be paying government a development levy annually so that it can recoup its investment in the structure in over 40 years. Because the government has put this investment upfront, it created the comfort in the private sector to now make its own investment. In the last eight years, over US$3 billion has been invested in Cross River State from the private sector. That is creating jobs and opportunities for Cross Riverians.

On the Tinapa experience:

When you have the best of the best from different professional fields working together, to get these players to work in sync, be dedicated enough and committed enough to implement the vision for us to have what we have today is one of the greatest experiences that I have ever had. Above all, to work with someone like Donald Duke who decided that he needs to make a difference in the lives of his people, who is going to showcase Tinapa and tell the world that we are not all about fraud, 419, violence; that there is quality in our society, for me, that is the greatest experience. Before 1999, I used to tell my friends I will never ever work for government. When he called me to join his government as Commissioner for Finance, I told him I have only six months. If I am not happy with what you are doing I would leave. In 30 days, I saw the qualities that this man is made of, the qualities that he has shown to Nigerians; that leadership is key, that a good leader who has the courage to dream big can make a difference.

FG plans IPP for Ikeja airport

KENNETH EHIGIATOR
Sunday, April 1, 2007

THE federal government has spoken of plans to build an Independent Power Plant (IPP) for the nation’s airport flagship, the Murtala Mohammed Airport, Ikeja, Lagos. Decision to built the plant came against the backdrop of incessant power failure at the airport, which has been a source of concern for the Federal Airports Authority of Nigeria (FAAN).

FAAN’s Managing Director, Alhaji Muhammad Yusufu, who disclosed this at a forum in Lagos, said the IPP would assist the agency provide uninterrupted power supply to the airport.

According to him, incessant power failures has destroyed some very sensitive navigational equipment at the airport which are vital to safe flight operations.

Radio communication equipment, such as the Non-Directional Beacon (NDB), which aids pilots during take off and landing, and which were installed by the Nigerian Airspace Management Agency (NAMA), had to be replaced frequently because of power outage.

Yusufu noted that it would be more cost effective for FAAN to build an IPP than continue to run the airport on generators in the face of rising cost of diesel.

Sunday Vanguard gathered that the MMA was chosen for the project as it operates for twenty-four hours and especially with the coming of more foreign airlines into the country.

Coming at a time more of the installations at the airport are to be upgraded for more efficient and safe flight operations, stakeholders see the project as one that would not only enhance the safety of the nation’s airspace, but also promote the integrity of the equipment, such as the instrument for landing system needed particularly for pilots’ use during hazy weather conditions as the harmattan.

Although the cost of the project is not immediately known, it was learnt that it would run into hundreds of millions

I wonder what sort of IPP it'll be:)

Govt. wants to attract an investor to set up an IPP at MMIA to sell power to the airport and (possibly?) the surrounding areas.

We dare ask - which investor will be interested if the international terminal is of its current size affording no chance whastoever for growth?

Govt. needs to put its house in order and acknowledge that the international terminal is not marketable in its current form!

Govt. needs to put its house in order and acknowledge that the international terminal is not marketable in its current form!

I can only fully subscribe to that!

Govt. wants to attract an investor to set up an IPP at MMIA to sell power to the airport and (possibly?) the surrounding areas.

We dare ask - which investor will be interested if the international terminal is of its current size affording no chance whatsoever for growth?

Govt. needs to put its house in order and acknowledge that the international terminal is not marketable in its current form!

True its currently disorganized and should be avoided, I remember posting that the government have plans to make LOS the biggest in West Africa, i think they meant the best in west Africa by that statement which will make is marketable.

Moreover, The investment of IPP is a milestone as the investor will invest in the international terminal to ensure his/her business is highly profitable. I can't see any thing but good news coming out of this!!

KICK-STARTING NIGERIA’S RAILWAYS

Friday, 02 March 2007
Adekunle Ayinde, writing in This Day, published in Lagos, says the transfer of the Central Railway to concessionaire Global Infrastructure Nigeria Limited (GINL) on 12 January 2007 was a “significant milestone in the Federal Government's plan to revamp, reform and modernise the rail system in Nigeria”. Opening a new era in the management and operations of railway infrastructure in the country, it “signposted a great leap in the comprehensive reforms by the Federal Government of other transport modes with the objective of developing a well-coordinated and integrated transport system that will be safe, efficient and affordable”. In the negotiation process leading to the agreement, international consultants CPCS Transcom, financed by the World Bank, assisted Nigeria’s Bureau of Public Enterprises (BPE).
Key steps in the process included:

* A comprehensive inventory of the concession assets, facilities and infrastructure;
* The establishment of a register of concession assets;
* The submission of a technical and financial proposal by GINL;
* The evaluation of the technical and financial proposal by BPE;
* Negotiation of shortfalls in respect of the evaluated proposals.


The Nigerian Ministry of Transport and the Nigerian Railway Corporation (NRC) were involved in the process and contributed to the formulation and drawing up of the concession agreement. At the concession signing ceremony, Director General of BPE Mrs Irene Chigbue advised the management of GINL to keep to the terms of the agreement. "The Nigerian public is watching and will be interested in the progress and achievements on the line,” she was quoted saying.

The concession of the 327km, 1,435mm gauge line, which is not connected to the NRC system, is to run for twenty years.

^^ It's about time...

Panasonic to build assembly plant in Nigeria

Electronics manufacturing gaint, Panasonic Incorporated has unveiled plans to establish an assembly plant in the country to take advantage of the growing market for its products in Nigeria.
The company which said it had secured 50 per cent of the Nigerian air conditioner market assured that based on the strength of its market in the country, it would work towards the setting up of an assembly plant in the country to take advantage of the Nigeria’s large population.
Speaking at the inauguration of Panasonic’s air conditioner parts and service centre in Abuja, the Marketing Manager, Panasonic Lagos Service Centre, Mr Haresh Ram, said the parent company was happy with the performance of the Nigerian business, hence the consideration to set up an assembly plant.
He explained that the assembly plant is part of the company's long-term business development plan aimed at harnessing markets in Africa.
According to him, the new service centre would offer after sales services to their customers, adding that the company was not only interested in selling its products but will also ensure that customers enjoy other services such as the repair of their products in case of damage.
He explained that the Abuja Panasonic Service Centre was the company’s second customer care outlet in the country in a little over one year, after the Lagos centre.
He said the company believed that doing business in Abuja would be as rewarding as the Lagos arm, adding that plans were underway to establish other centres in major cities in Nigeria to provide assistance to their customers.
He said, “For Panasonic Nigeria, we are very satisfied with the level of business we have had from our after sales service activities in Lagos. We don’t know about Abuja. We are just starting today in Abuja. So, let us hope that it is going to be encouraging for us as it has been in Lagos.”
Ram said the service centre normally attended to between eight to 10 complaints on a weekly basis, adding that it had already captured about 50 per cent of the Nigerian market.
In his address, the Managing Director, Binar Traders, Japan, Mr. Bhojraj Rupani, hinted that Panasonic intends to make a wider array of its advanced products and services to customers in Nigeria.
Such service, Rupani said, included Japanese electronic products, employment opportunities and a transfer of high technology to the Nigerian people.
Meanwhile, Matsushita Electric Industrial Company Limited, the parents company of Panasonic has reported a two per cent net profit increase in its consolidated financial results for the third quarter and the nine months ended December 31, 2006 of the current fiscal year ending March 31.
The financial statement made available indicated that the group’s sales rose from 2,398.4 billion yen in the same three-month period a year ago to 2,436.8 billion yen.
Similarly, domestic sales made a three per cent increase from 1,181.6 billion yen to 1.214.5 billion yen in the same year, while overseas sales amounted to 1,222.3 billion yen in the third quarter of fiscal 2006.

Nigeria: Fidelity Bank Partners Nigerian Doctors on $10m Hospital Project

Vanguard (Lagos)

March 29, 2007
Posted to the web March 30, 2007

The efforts of the Federal Government and the organized private sector to encourage Nigerian professionals in the Diaspora to invest at home seem to be yielding fruits as a team of Nigerian doctors based in the United States of America last weekend signed with Fidelity Bank Plc to build a USD10million hospital project in Lagos/Port Harcourt.

The team of four doctors are joining forces to build a modern cardiological centre to be called the African Heart Hospital(AHH), in what promises to be a major Diaspora investment.

The quartet are all American-trained cardiovascular specialists with a cumulative experience of over 60 years in the United States. Led by Dr. Onye Achilihu, Chief Medical Director of Inland Cardiovascular Clinic, Monroe, Louisiana, other members include, Dr. Leo Egbujiobi, a professor of medicine, Medical School, University of Wisconsin Madison, USA; Dr. Kalu Ijem, chairman, Pharmacy and Therapeutics, Georgetown Memorial Hospital, Georgetown, South Carolina; and Dr Obinna Emereole, Managing Partner, Georgia Heart Physicians LLC. Together, they are putting about $10 million to set up the African Heart Hospital.

The hospital will focus on the prevention and treatment of various heart diseases with the capability to open blocked arteries in the heart and other parts of the vascular system, similar to what obtains in the US and Europe.

The core promoters met in Lagos at the weekend with the management of Fidelity Bank at which they formalized the appointment of Fidelity as the sole banker and financial adviser.

Team Leader, Dr Achilihu, expressed his joy that team was coming to use their experience and expertise to assist the social and economic status of fellow Nigerians, pointing out that when functional, the hospital would take care of the various needs that would normally lead to offshore medical evacuations of Nigerians for various heart conditions.

He observed that the team consists well-known cardiovascular practitioners and a distinguished professor of cardiology who himself has produced many frontline cardiologists in the US.

Dr. Achilihu pointed out that with the level of professionalism and commitment that Fidelity Bank had exhibited in the last three months since the discussions began, it was possible to start operations within the year. According to him "it is a great joy that the dream of coming back home to practice what we are doing in foreign lands is gradually becoming a reality".

Responding the Managing Director of the bank, Mr. Reginald Ihejiahi, thanked the team for the confidence reposed in the bank. He mentioned that the bank was delighted with the opportunity to work with the promoters on such a noble project which has strong social and economic benefits.

The African Heart Hospital project will fill a very important vacuum in the country, as this specialized area is one of the grossly under-represented aspects of the country's health-care delivery system.

When completed within the next one year, the African Heart Hospital is expected to employ over 100 core and auxiliary staff. More importantly, it will save billions of Naira spent annually by affluent Nigerians who do their heart-related checks and treatments outside Nigeria.

Lagos State Rail Link

27 July 2006 - (Business in Africa) The Lagos Metropolitan Area Transport Authority in Nigeria has unfolded a comprehensive transportation arrangement aimed at linking every part of the state through a rail network.
Tagged Lagos Urban Rail Network, the agency’s technical advisor, public transport/traffic management, Olugbenga Dairo, was quoted in The Punch saying the project would cost 70bn naira (about $546mn).
Dairo said Lagos Metropolitan Area Transport Authority (Lamata) had already developed a rail master plan of seven rail lines for the city of Lagos.
The seven lines, according to him, were developed in anticipation of a mega city status as it had been projected that the population of Lagos would hit 25 million in 2015.
This, according to Dairo, would be the phase one of the project. It would be followed by Iddo-Agbado rail line. The next would be the Okokomaiko – Mile 2 line, under the light rail transit system, in view of the state government’s expectation of the Nigerian Railway Corporation (NRC) waivers.
The NRC, by the act establishing it, has the statutory power to regulate and operate rail systems in the country
This, Dairo identified, as the major hurdle to the project’s take-off date and completion.
He, however, said that a waiver on the act, which would empower Lamata to execute the project, was already being expected, having got president Olusegun Obasanjo’s nod on the project.
The Lagos state government had, in March last year, signed a $240mn memorandum of understanding with Lemna Incorporated, a United States-based firm, for the construction and operation of a light rail on a build, operate and transfer arrangement.
Dairo, who said the plan was to reduce congestion on Lagos roads, explained that the project was part of the recommendation of the presidential committee on Lagos mega city project, set up by Obasanjo in 2005.
Dairo said the president had approved that Lamata should develop a rail service between Iddo and Alagbado, with future extensions to Lagos Island and Ijoko in Ogun State on the NRC corridor.
This, according to him, would ameliorate the suffering of the estimated 4.6 million people, who arrive in Lagos daily.
A banker, Sola Ajibode, who lives in Sango, neighbouring town in Ogun State, but works on Victoria Island, described the light rail idea as a welcome development and urged the government to involve the private sector to ensure its sustainability.

is it me or this just some annoying project that never seens to see the light of day! I can't wait to go back to Lagos in like 5-7years time and see the Lrt and Trains and Subway!!

Lagos State Rail Link



is it me or this just some annoying project that never seens to see the light of day! I can't wait to go back to Lagos in like 5-7years time and see the Lrt and Trains and Subway!!

Lagos shouldn't have a subway. LRT complimented with a efficient bus system is what Lagos needs.

Presidency wants militants to be recruited for oil installation surveillance

Soji
Monday, April 2, 2007
Adviser to President Olusegun Obasanjo on Niger Delta, Dr. Godknows Igali, has advised that militants in the Niger Delta should be recruited for surveillance in oil installations, just as he advocated the granting of amnesty to them.

This, according to the presidential aide, would help in rehabilitating and demobilising the militants from their violent postures.

Dr. Igali stated in Abuja at the weekend that though remarkable progress had been made in dealing with problems in the area, “granting general and or limited amnesty to the militants will encourage most of them to leave the creeks to the city to find means of livelihood.”

He pointed out that the issue of job creation for the militants would help divert their energies to productive use, adding “ironically, these militants are in a better position to be used for surveillance jobs for the oil installations in the Delta creeks.

“The current negotiations by some oil companies, for example, Shell Petroleum Development Company and Chevron and host communities had taken cognisance of this and will help to reduce the level of disruption of oil activities.”

This is very ambitious, but if it is realised, it'll mean that thereare less miltants unemplyed and less miltants casuing havoc.:)

Tinapa: FG, C’River plan new Calabar airport


President Olusegun Obasanjo, on Monday, inaugurated the N50bn Tinapa Business Resort in Calabar, with a declaration that the Federal Government would build a new airport in the Cross River State capital to take care of the post-Tinapa inauguration challenges.

A section of the Tinapa Business Resort in Calabar, Cross River State. The project will be inaugurated today.

The ground-breaking ceremony for the new airport, according to Obasanjo, will take place before May 29, 2007 the terminal date of the current administration. He said the new airport project would be financed by the state and the Federal Government on a 50-50 basis.

The President, who inspected facilities at the resort, including the Nolly-wood Studio, expressed appreciation to the Cross River State Governor, Mr Donald Duke, for his vision and courage in initiating the project, saying Tinapa had brought back the lost glory of Calabar as Nigeria’s first capital city.

He also commended the various stakeholders, including the banks that contributed to the realisation of the Tinapa project.

He added, “My great delight is informed by the fact that we are today, celebrating the actualisation of the audacious vision painstakingly initiated, devotedly implemented and amicably passed by Duke and his team.

“We must applaud your government for successfully embarking upon and courageously executing this project, which is surely going to change the face of Cross River State forever.”

Just like the Managing Director of the United Bank for Africa, Mr Tony Elumelu, who charged Nigerians to have a dream that could work like that of Tinapa, Obasanjo said it was a thing of joy that the Tinapa dream did not die.

He noted that having inaugurated the resort, there was the need for all the stakeho-lders, including the Federal Government to keep it alive. He said with the birth of Tinapa, a new business vista had been opened for the nation and for African.

“Tinapa, no doubt, represents one giant step in the direction of unprecedented economic growth and regeneration for our continent,” he added.

He said the government had considered the need for a new airport as part of the steps to keep Tinapa alive.

According to him, the decision to embark on the construction on of an entirely new airport was taken because of experts’ advice that it would be cheaper to build a new airport instead of expanding the existing one to accommodate bigger airplanes.

Duke, in his address, thanked the President and the various banks for believing in the dream and supporting it to the point of inauguration.

He said he was excited that the President resolved to midwife the project and stood by him from the beginning, even when most people did not believe in the Tinapa dream.

There is a crap picture of Tinapa on the site here is a link :
http://www.punchng.com/Articl.aspx?t...00704031295529

LePhillippe, are you Nigerian? If so could you explain to me why photos taken by Nigerian newspaper online are almost always of terrible quality? We live in the era of digital camera and beyond yet they appear to take photos in conventional cameras then rescanning them from the print version !?

LePhillippe, are you Nigerian? If so could you explain to me why photos taken by Nigerian newspaper online are almost always of terrible quality? We live in the era of digital camera and beyond yet they appear to take photos in conventional cameras then rescanning them from the print version !?

zexyworm, I stumbled over the same thing, the quality of Nigerian pics in newspapers are of inexcusably bad quality...and I wonder why our newspapers - at least the bigger ones - don´t invest more into godd material?!

Nigeria: Zenith Bank Begins Operation in London

Vanguard (Lagos)

April 3, 2007
Posted to the web April 3, 2007

Omoh Gabriel
Lagos

Zenith Bank Plc has commenced operations in its wholly-owned London Branch office. The subsidiary is christened Zenith Bank UK.

Confirming the development, the bank said: "Zenith Bank UK opened for business last Friday following an approval by the Financial Services Authority (FSA) in the UK considered as the strictest financial regulatory authority in the world.

The FSA gave the bank the nod to open for business having been impressed by the professionalism and strength of the bank's application for a banking licence and the remittance of the requisite paid-up capital for new banks.

"The approval of a banking licence for Zenith by the authorities in the UK represents a strong endorsement of the brand as it is the first wholly-owned Nigerian bank without any previous affiliation to any UK financial institution to be issued such a licence," it said.

It is expected that operating from London, Zenith Bank UK would serve as the bank's launching pad into other parts of Europe and the rest of the world.

Zenith Bank, one of Nigeria's biggest financial institutions with interests in pension and insurance already has a strong presence in Ghana, through its subsidiary, Zenith Bank Ghana. Its foray into the European financial market is interpreted as a move to deepen the bank's base and grow the brand. The bank already has an alliance with respected United States group, J.P Morgan.

Zenith Bank is the second most capitalised company on the Nigerian Stock Exchange with a market capitalisation of N370 billion.

Nigeria: Scangroup Looks to Lagos As Kenya Market Gets 'Saturated'

The East African (Nairobi)

April 3, 2007
Posted to the web April 3, 2007

Catherine Riungu
Nairobi

Encouraged by a 39 per cent rise in profits, Scangroup is planning to expand operations in Uganda and is also eyeing West Africa.

The firm's announcement of a Ksh278.7 million pre-tax profit for 2006 was well received, with its shares immediately registering a five per cent rise in the stock market. This was an improvement over the previous year's Ksh201 million. The company sold 43.5 per cent of its shares to the public last year and currently earns about70 per cent of its revenue from Kenya. But it envisages getting more than half its income from a wider market in future.

Chief executive Bharat Thak'rar said the company would have to venture further afield to sustain current levels of growth since the Kenyan market was saturated.

Scangroup, a marketing services company, controls 66 per cent of the media buying business in Kenya, which has been growing by 6.5 per cent in the past five years. Uganda, its second largest market, contributes 15 per cent of the firm's earnings.

It has acquired a majority stake in FCB Tanzania, which handles advertising for one of the largest advertisers, Vodacom Tanzania. The company has expressed interest in acquiring a mobile service provider and is said to be eying MTN or Uganda Telkom.

Over the past year, Scangroup has been working on a strategy to increase its presence in the telecommunications sector.

Already, it has bagged Kenya's Safaricom and Uganda's Vodacom by acquiring agencies that handle these firms.

In West Africa, Scangroup plans to set up an office in Lagos. "We believe Nigeria will be the next biggest advertising market outside South and East Africa and we need to be in place to take advantage of this opportunity," said Mr Thakrar.

Scangroup is the holding company for media buying companies Media Initiative East Africa, Universal McCann advertising companies, Lowe Scanad (Kenya and Uganda), Thompson KenyaMcCann Kenya, Grey East Africa and Redsky.

Heritage City Park plans for Abuja

Posted to the Web: Friday, March 30, 2007



The Minister of State, Tourism, Culture & National Orientation Professor Ivara Esu has reiterated Federal Government’s commitment in providing conducive atmosphere for private stakeholders to invest in Tourism industry in the country. The Minister made this known while interacting with a delegation from Heritage City Parks Limited and Shenzhen Hytechnology Inc. in his office recently.

Heritage City Park Ltd is a company belonging to Nigerians in partnership with Shenzhen Hytechnology Inc. from Peoples Republic of China. The Partnership project which was initiated three years ago is making effort to develop the first phase of the heritage city park in Abuja.
Professor Ivara said the Federal Government is really interested in any programme that would create more tourism destinations in the country.
He said the overall objective of the Ministry is to support and promote Tourism and Culture in the country.

“Tourists only visit a place where they will have fun so our intension is to support and strengthen any venture that is aimed at promoting or increasing tourism sites that people can visit. Certainly our Ministry is in support of the project”.
He urged them to liaise with professionals in the Ministry for proper use of the historical materials that will portray the various Kingdoms and Empires.

Earlier, the Project Coordinator Heritage City Parks Ltd., Mr. Ekwo Omakwu commended the effort of the minister in Tourism development in the country. He said the Minister of Federal Capital Territory has allocated a land to the company in Kuje to commence the Heritage City Park Project.

Mr. Ekwo explained that the park they intend to build would have three different components and it will be the biggest tourism destination in Abuja. The first component, according to Mr. Ekwo would be for Adventure, the second Historical aspects of the country while the third part will be a water park. Mr. Ekwo called it three in one parks.

He further said that the parks will be called heritage city parks because it will showcase the ancient African Kingdoms and empires that will serve as areas of learning for students and researchers.

He added that the partnership is not only to build the park, but to operate it for some period of time, while training our indigenous personnel to take over its operations.

http://www.vanguardngr.com/articles/2002/features/tourism/tt230032007.html

Hmmm, This seems to be a new article but we all knew this right. Does this mean construction will finally begin??

West African countries target 2009 for proposed single currency, unified central bank
By Patience Saghana who was in Gambia
Posted to the Web: Wednesday, April 04, 2007



Governor, Central Bank of Gambia, Mr. Famara Jatta has said that ECOWAS members have resolved that there is no going back on a single currency and a unified central bank for the region.


Mr Jetta in an address presented to Insurance practitioners in Gambia said that the next meeting of the proposed single currency and unified central bank is scheduled to hold in Nigeria soon and that the headquarter of the bank will be in Ghana

Monetary union is a situation where several countries have agreed to share a single currency (also known as a common currency) among them.

Mr. Famara Jatta while addressing a gathering of insurance practitioners at the just concluded 29th West African Insurance Companies Association (WAICA)’s Annual General Meeting and Educational Conference in Gambia, said the initiative for a single currency and central bank in the West African countries was on course.

Jatta reiterated that West African countries could not afford to shy away from the need to have unified currency and a unified central bank for the region.

He disclosed that the take off date for the proposed West African central bank has been shifted to 2009. According to him, “I spoke about efforts, through the West African Monetary Zone (WAMZ) initiative to create a common central bank and a single currency.

Expectations are that eventually an ECOWAS - wide single economic space will be created. Although the date for the establishment of the proposed West African Central Bank has been moved to 2009, our resolve is undiluted and unshakeable.”

WAMZ is a co-operative platform designed to achieve monetary union with a common Central Bank (slated to be based in Ghana) and a single currency

The Gambia Central Bank Governor said that economic growth rate in the West African countries was growing at a higher rate in the last five years but stated that the economies in the region needed to grow from 6.0 per cent to between 7 and 8 per cent in order to achieve the much needed millennium Development Goals.

He said in the WAMZ countries which comprised Nigeria, Ghana, Gambia, Sierra Leone and the republic of Guinea, economic growth is estimated at 6.9 per cent, higher than the average 6.0 per cent over the past five years.

Mr Momodou Bamba Saho, First Deputy Governor of Central Bank , Gambia in an interview with Vanguard said economic convergence and other criteria which included inflation and budget deficit were responsible for the numerous shift in date of the implementation date of the proposed single currency and central bank.

Saho admitted that there has been considerable improvement in economic growth in the ECOWAS region, adding that economic convergence was attainable due to improvement in economic performance of member countries

According to him, “To achieve the ultimate objective of a single currency, member countries were required to implement a number of measures including: adoption of a market based exchange rate system with variability in the nominal exchange rate not exceeding 10 per cent by the end of 1998 and 5 per cent thereafter; the ratio of budget deficits to the GDP not exceeding 5 per cent by 1998 and 3 percent by 2000; central bank credit to government not exceeding 10 per cent of previous year’s tax revenue and the achievement of single digit inflation rate.”

zexyworm, I stumbled over the same thing, the quality of Nigerian pics in newspapers are of inexcusably bad quality...and I wonder why our newspapers - at least the bigger ones - don´t invest more into godd material?!
With an investment of 250 dollars now in a digicam,you could make very honorable photos.
Maybe its because of the low bandwidth of internet in general in nigeria?
Am i correct?

With an investment of 250 dollars now in a digicam,you could make very honorable photos.
Maybe its because of the low bandwidth of internet in general in nigeria?
Am i correct?

No woinder Nigerian sites are so uselessly rubbish!!

Nigeria: Abolition of Slave Trade - Roots Back On The Air

Daily Champion (Lagos)

April 4, 2007
Posted to the web April 4, 2007

Lagos

As part of the celebration of 200th anniversary of abolition of slave trade in Africa, a consortium of firms have concluded plans to bring back Roots to the airwaves through the Nigerian Television Authority (NTA).

According to the consortium, "ROOTS" is going to make a difference in programming and quality content which is going to be delivered through the NTA network. The root story plot which is said to be ever new, refresh and relevant to Africa and the Diaspora will generate a huge viewership during the new quarter.


"Roots" has become a global symbol that represents the indomitable spirit of the real African. Kunta Kinte, a man made popular by his descendant, Alex Haley in the popular book and TV mini series with the title. The story of ROOTS.

The return of Kunta Kinte is centered around a young man forcefully captured from a town in The Gambia, West Africa, and taken to serve as a slave on a plantation in the United States. Against all odds: torture, deprivation and humiliation, Kunta takes pride in retaining his African identity.

ROOTS became an instant hit on Television because of its captivating plot, interesting twists and inspirational message.

The 12-hour mini-series that was first aired on ABC from January 23-30, 1977 for eight consecutive nights held the American audience captive, especially the producers who initially thought it would fail simply because its plot was based on the story of an African slave seeking his true identity.

ROOTS, features several ace actors such as LeVar Burton and John Amos who play the part of the young and older Kunta Kinte respectively. Leslie Uggams puts up an outstanding performance as Kizzy, Kinte's daughter and mother of Chicken George, played by Ben Vereen.

Other members of cast include George Stanford Brown, Maya Angelou, O. J. Simpson, Madge Sinclair, Olivia Cole and George Hamilton.

The success of ROOTS had a lasting impact on the television industry because no one really expected that a show with black heroes and white villains could attract such huge audiences. But it did, not just in America but also in Nigeria , where the series held viewers captive in the 1980's.

According to Akin Rotimi, a representative of the consortium which include T A Property & Investment Company, Basepoint International, Kakadu Productions, Basap Ventures International & Verdant Zeal Communications, the programme which will run this second quarter will be aired on all NTA stations nationwide at 11 p.m., every Friday starting April 6.

While taking comments on the timing, Rotimi declares "the popularity and the success of "Roots" globally will compel people to stay awake and catch a glimpse of history" As a media practitioner, Akin believes that it is wrong to assume that a certain time of the day is "sacrosanct" as prime time, good planning, good programming vis-à-vis content and the ability of a programme to strike the right cord with the target audience could make the worse time belt become the most popular and therefore a prime time he explains.

He added that while some companies have declared interest to tap into the huge audience that the programme will deliver, more multinationals are still expected to be part of the show in the area of sponsorships.

Education Ministry Partners CISCO to Train 20,000 Graduates

From Josephine Lohor in Abuja, 04.05.2007
The Federal Ministry of Education and a global software company, CISCO, have concluded arrangement to strengthen the skills of 20,000 Nigerian graduates towards making them employable.
Under the arrangement that was approved by the Federal Executive Council (FEC) yesterday, Cisco that has about 10,000 academies around the world, will take N3.7 billion or 84 per cent of the total cost of N4.3 billion while the Federal Government will take the remaining N684 million or 16 per cent.
The Minister of Education, Mrs. Obiageli Ezekwesili, who stated this while briefing State House Correspondents after the weekly FEC, said that the number of Nigerians billed for the training was arrived at after an online survey of graduates from tertiary institutions over a 10-year period during which 29,000 graduates responded.
While describing what she termed as the unfortunate “warehousing syndrome of Nigerian graduates”, she added that out of the 29,000 respondents, over 60 per cent were found to be unemployed and underemployed.
The Minister of Education who said that a lot of countries have relied on CISCO to train their graduates, stated that “in our own case, we found out that when people talk about the new economy they refer to knowledge economy. One of the things that happen in knowledge economy is that sectors are now upgrading their knowledge base, whether it is the oil and gas or the communications sectors. It is all about capability and the capacity that you have in ICT. So in reskilling our glut of graduates towards employability, we needed to take them through a transformation and that transformation is coming in the form of partnership between the Federal Ministry of Education and CISCO”.
Giving insight into the cost implication of the partnership between the Federal Gove-rnment and CISCO, Ezekwesili stated that “this would have been costing a significant amount if we had decided to fund it alone.
But under the partnership, CISCO will take 84 per cent of the cost and the Federal Government will take 16 per cent. For a programme that would be costing N4.3 billion, CISCO will absorb N3.7 billion and the Federal Gover-nment will be contributing N684 billion.
At the end of the exercise which will span 6 months, 12 months and 15 months certification, you can be certain that a good number of those graduates will be transformed”.
She added that “CISCO, basically is a global company known for networking and has been running CISCO Academy all over the world. Currently, there are 10,000 of such academies around the world. They do it as part of their social and corporate responsibility.
They require the country concerned to contribute into the training. We have entered into a strategic partnership with CISCO in which CISCO and Federal Ministry of Education will take 20, 000 of the 29,000 graduates surveyed. These graduates have clearly shown that they are going nowhere and CISCO is going to run an IT re-certification Programme which is of international academic standard. Many people who have gone through this programme go the internet and get jobs. So it is universal certification”.

ANy news at all on the Port Harcourt LRT system??

ANy news at all on the Port Harcourt LRT system??

After the incumbent governor leaves then maybe...

Its such a disgrace in Ngeria that none of the LRT projects bar the Abuja one has actually started construction. One has to keep prosponing a trip in order to get there when an adequate transport system in place.

Its such a disgrace in Ngeria that none of the LRT projects bar the Abuja one has actually started construction. One has to keep prosponing a trip in order to get there when an adequate transport system in place.

It's such a shame...Do you have the article on the Abuja LRT?

I will dig it out for you..

Nigeria: Nigeria Exits London Club Debt

Daily Trust (Abuja)

April 6, 2007
Posted to the web April 6, 2007

Hamisu Muhammad
Abuja

Nigeria has paid off its London Club Debt, Finance Minister, Mrs. Esther Nenadi Usman, said yesterday. However, details of the country's outstanding external debt stock remains at about $ 3bn yesterday.

President Olusegun Obasanjo ordered the clearing of all the country's debt before leaving office in May this year, she said.

Speaking at a press briefing on the London Club debt exit in Abuja, the minister said the process of clearing the debt was successful: "Future generations of Nigerians will not be shackled by debt."

But Nigeria's oil warrants have not been cleared by this administration, the minister said.

She said we were able to retire about 31.4 percent of the total oil warrants tendered, amounting to 369,154, at the repurchase price of about $82 million. This indicated about 70 percent of the oil warrants were uncleared.

But the minister said: "Even though we have not been able to clear the entire stock, the overall result in respect of the London Club debt exit process is excellent".

"It should also be stressed that the oil warrants themselves have no principal value. They constitute liabilities only when oil prices rise above certain level. So it may well be that our liabilities will be further reduced if oil prices fall", said Nenadi.

According to her, "we have laid the groundwork to enable the incoming administration decide how to handle the residual liabilities".

The minister said CitiGr-oup Global Market limited is to manage the process. The fees for services rendered are $217,774.76 and will be paid in the next few days, she said.

Mrs Usman said: "With the conclusion of this London Club debt exit process, several benefits will accrue to Nigeria including; financial savings from interest payments; cleaning up of our balance sheet; improving the country's economic profile; and removing the legacy of these debts including negative image associated with them as well as the onerous legal terms which included waiving our sovereign immunity.

The debt exit will also improve investment climate and facilitate the inflow of Foreign Direct Investment".

Nigeria: Shell to Restore 500,000bpd Production

April 6, 2007

Chika Amanze-Nwachuku
Lagos

Shell Petroleum Development Company of Nigeria (SPDC), has indicated its intention to resume production of more than 500,000 barrels per day (bpd) of crude oil, which it had shut-in more than a year ago, due to crisis in the Niger Delta region.

Managing Director of the SPDC, Mr Basil Omiyi, according to report, said the company hopes to return to its full production levels of about 1.0 million barrel per day within six months.

He said the company would start clawing back production after striking agreements with host communities in the violence-torn delta region.

The oil giant was forced to shut down its entire production in the western division of the Niger Delta since March 2006, following incessant attacks on its facilities and kidnapping of expatriate workers by militants.

In monetary terms, Shell and its joint venture partners, namely the Nigerian National Petroleum Corporation (NNPC), Elf and Agip, might have lost a total of $10.8 billion (N1.38 trillion) to the crisis.

Omiyi said Shell would award more service contracts to local people and businesses including catering, barge and boat leasing, maintenance work and water transportation.

"We've had a series of dialogue with the communities. The communities depend on the oil and gas industry for a significant amount of income in the region, and everybody has got to a point where they are saying let's drop the political part of this and let's get back to business," he said.

Shell has also recently returned teams to inspect damage at facilities abandoned.

The attacks were often launched by the dreaded Movement for the Emancipation of the Niger Delta (MEND). The group had often demanded a greater share of profits from oil extracted from the region for residents, as well as self-determination for delta-based ethnic groups.

It was not clear whether Shell had reached an agreement with MEND or other militants and ethnic groups operating in the region, but Omiyi said the company does not see anything standing in its way.

Nigeria: Ibom Golf Resort Will Attract Tiger and Others to Nigeria -- Monty

Vanguard (Lagos)

April 8, 2007
Posted to the web April 8, 2007

Richard Animam

IF the script written for the new Le Meridien Golf Resort in Uyo is fully played out, there is hardly any existing competitor in view.

Colin Montgomerie, Retief Goosen and Nancy Lopez have their names emblazoned on the commissioning plaque, making it the most exotic around (even when the cost of having them is in the region of $3 million- government won't confirm, anyway) the new resort facility is a ground of endless charm.

Apart from its lonely spotting at a clear community outside town, it also boasts of the only deliberate heli-pad (on a golf course) in the country. Even Dominic Andrew, the assistant resident professional at IBB International Golf and Country club in Abuja, admitted that there were flickers of excellence in the layout. "This is a championship course any day, and, when fully matured, would complete with any standard course in the country and anywhere in the world"

One other high point of the course is the jetty access to the course which, the state governor says, is a 15-minute access to the TINAPA business facility. And definitely it is expected to be one of its highest patrons including the five star Le Meridien Hotel that is the icing of the resort.

However, given the spread of the golf community, the membership expected at the Le Meriedien Golf Resort may be that of country members drawn from the expatriate community down in the Niger-delta. Most golfers (about 65%) are spread across the west and northern regions while golfers down in the south-south regions are basically temporary membership apart from scanty local players which are majorly domiciled in Port Harcourt.

Abu Odihili, a renown local golf architect and former captain of Benin Golf club, says there is need to device a membership drive that would encourage the facility to be maximized and eventually be able to cater for its own maintenance rather than depending on government subventions to run it.

Technically, because of the water table character of the region, it is highly worrisome what becomes of the numerous water hazards that dot the layout. At the nine-hole exhibition play by the invited foreign pros, one observer noted that there was no visible Surface Erosion System to dislodge excess water in case of overflow, which rainfall could cause easily.

The argument is that the course is at the risk of being over-flooded and the lives of the newly grafted grasses could go for it. "We want to believe that there are provisions for the water to be dispensed in case of overflow because they are not apparent from here and it is a major danger for this beautiful layout. Although, if there is none already, it can be incorporate in no time" he said. During the exhibition play too, one major obstacle to free-flow of play was the bumpy putting green which toned down the player's fairways skills.

Odihili offered that: Dwarf Bermuda and Kenyan Kikiyu brands of the grass would have performed better on the turf than the Bengo version that is already growing algae on the newly Le Meridian turfs" The layout for most of the green although is flat and gives the approach shot an easy sit after the crafty fairway challenge.

Although not all golfers agrees that the putting surface tones down the challenge, most IBB Golf Course players vow that that is one of the edge that IBB has over it. Dominic Andrew says that most players, when used to the layout, would find approaching the 1BB very difficult .

"Some of the positioning of the green are cheaper than that of our home course" he says. And, from the architectural viewpoint, Lovett Omo from Ikoyi Club, added that being flat to the ground, the green could be easy trap for flowing water and rainfalls which could be the bane of the grass. For now, the fairways parades cornucopia of grasses, which, hopefully, could still be transplanted for uniformity and beauty of the fairways.

As grand as the course promises, there are still pockets of changes that the Akwa Ibom government needs to make, including what needs to be put in place to keep the golfing community, especially those in the western and northern part, to keep coming back to Uyo after a bone-crunching one hour trip from Calabar (the nearest commercial flight stop).

we....already international golfers coming into the country not only to the capital only but every states.....i mean we want to beautify every states or corners of our country nigeria...unlike those who capitalise on their capital only.

Nigeria: Globacom Set to Launch 3G

April 11, 2007
Posted to the web April 11, 2007

Efem Nkanga
Lagos

Globacom, Nigeria's second national carrier, is set to launch the third generation (3G) telecoms service following the conclusion of the payment of the $150 million license fee for the 3G licence it won with four others last month.

The other winners are MTN Nigeria, Celtel and Alheri Engineering Ltd. The Nigerian Communications Commission (NCC) had given the four winners 14 days to pay up for the license which it later increased by another 7 days.

Globacom paid up the balance of $130 million to the NCC for the licence last Friday after the initial payment of the $15 million dollars deposit intention to bid. Globacom said it is now awaiting clearance from NCC to start 3G operations.

The company had August 2006 announced the successful test-run of the 3G platform on its network by its technical vendors, Alcatel Lucent.

According to Globacom's Executive Director, Legal, Mrs. Gladys Talabi, "3G has been successfully tested on our network by Alcatel. We are now ready for the commercial launch once we get the clearance from NCC," Talabi had stated.

She added that Globacom will immediately launch the 3G facilities in Lagos, Abuja and Port Harcourt, while the capability would be extended to other parts of the country shortly.

Talabi, who further stated that Globacom's 3G network will revolutionise the way data is transferred and relayed digitally reiterated that "We will be able to offer a much faster transmission of data, voice, broadband internet and multimedia services over a range of frequencies," she stated.

She disclosed that as Globacom begins its fourth operating year, it would continue to lead innovation in the country's telecom space and remain focused on providing state-of-the-art technology packed with convenience, freedom and affordability.

The company had as part of its quest to become the number one network on the continent signed a $600m (N78 billion) network expansion contract with leading French telecommunication vendors, Alcatel-Lucent.

Under the terms of the new contract, Alcatel will deploy nationwide fixed and mobile networks as well as next generation IP/MPLS and optical network solutions.

World Bank boosts Lagos transport with $50m

The Board of Directors of the World Bank on Wednesday approved a $50 million additional credit facility for the Lagos State Urban Transportation project. The facility is coming under the Bank's International Development Association (IDA) credit scheme. It is an additional funding to the Lagos State Urban Transport project of $100 million, which began last year. A statement from the Bank's headquarters in New York on Wednesday said the additional funding is aimed at offsetting unforeseen costs that may arise from the completion of the original project. The initiative is expected to help in the completion of the pilot bus franchise scheme along Iyana Ipaja-Ikotun/Igando corridor. Infrastructure like bus shelters, street lights, traffic lights and others necessary for bus franchise operation, including terminal rehabilitation would be provided on the pilot bus route.

Nigeria: CTO 2007 - When Banking Romances Technology

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This Day (Lagos)

OPINION
April 11, 2007
Posted to the web April 12, 2007

James Eze
Lagos

It began a little over a decade ago as a forum for the exhibition of US technology products in Africa's largest market. Today, it is more than a technology fair. Yet, it is not likely that when the Commercial Service section of the US Embassy decided to host CTO, an annual fair for IT products, in Lagos, it envisaged the level of interest the fair has generated over time, even from unrelated quarters.

It is indeed remarkable how CTO has steadily grown from an all ICT affair to a key commercial event in Nigeria's economic calendar, attracting diverse businesses to underscore its relevance to the local economy. A most interesting side to the CTO is the increasing interest of banks in the fair as shown by the increase in the number of participating banks each year. Consummate players like UBA, Zenith Bank and Fidelity Bank made notable showings at the 2006 edition of the fair. Of special interest is the over-awing presence of Zenith Bank at the fair, right from its imposing pavilion to the special seminar that holds a mass appeal for the Nigerian youth.

Nigeria: CTO 2007 - When Banking Romances Technology

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This Day (Lagos)

OPINION
April 11, 2007
Posted to the web April 12, 2007

James Eze
Lagos

It began a little over a decade ago as a forum for the exhibition of US technology products in Africa's largest market. Today, it is more than a technology fair. Yet, it is not likely that when the Commercial Service section of the US Embassy decided to host CTO, an annual fair for IT products, in Lagos, it envisaged the level of interest the fair has generated over time, even from unrelated quarters.

It is indeed remarkable how CTO has steadily grown from an all ICT affair to a key commercial event in Nigeria's economic calendar, attracting diverse businesses to underscore its relevance to the local economy. A most interesting side to the CTO is the increasing interest of banks in the fair as shown by the increase in the number of participating banks each year. Consummate players like UBA, Zenith Bank and Fidelity Bank made notable showings at the 2006 edition of the fair. Of special interest is the over-awing presence of Zenith Bank at the fair, right from its imposing pavilion to the special seminar that holds a mass appeal for the Nigerian youth.

Try to post with a format...

MTN Nigeria invests N383bn on infrastructure

April 12th, 2007



Cellular network provider, MTN, says it is embarking on its most expansive network expansion this year, with a budget of N85-billion ($667-million). This is besides the sum of over N382.5-billion ($3-billion) already expended by the company on infrastructure.
MARTINS AZUWIKE


In its network expansion statement for 2007, the company says: "2007 is our biggest year of expansion since the start of MTN Nigeria and MTNN focus to date is to provide world-class quality service to our subscribers." It also says: "it is worthy to mention some of the major achievements made to date and the plans in 2007 to make MTN provide the world-class quality service promise to the 16.3m (13m + 3.6m) subscribers."

Highlights on numbers of major equipment/infrastructure in the network show that there are 12 switching centres in the country, with 41 switching equipment (MSC) and additional 14 switching equipment would be integrated before the end of 2007.

MTN says it currently has about 2,661 base stations spread around the country and strongly plans to add 900 more before the end of 2007.

MTN’s appetite for growth has remained irrepressible. Business Day gathered that the company intends to cover 252 more cities by the end of the year, in addition to the 2,238 cities that it currently covers.It also plans to embark on an aggressive rural site rollout this year.

The company says that its cutting edge network features and other expansion programs which culminated in the recently launched IP/MPLS network into major cities to provide high value data services to business customers and improve business technology will also benefit telecoms service users in the country as it is also capable of carrying video, data, and voice.

Business Day gathered that MTN Nigeria’s fibre link remains the longest fibre link in Africa. Plans are afoot by the company to further expand it this year by 144km through the Port Harcourt – Warri route to support unlimited transmission capacity and high quality service.

This is supported with continuing dual band upgrade on 571 base stations and normal cabinet upgrades on 105 base stations to provide additional dependable network capacity.

Plans are also in place for an additional 70 core nodes which would be integrated before the end of 2007 for high quality service

Major metro rings expansions are already going on in the country to ensure service reliability within the major cities, and for easy access to communication and data anywhere in the world, MTN Nigeria currently has 237 roaming partners operating in 125 countries with continuing process to increase the partners by 50 in 15 countries before the end of 2007.

MTNN also currently has GPRS roaming agreement with 10 partners operating in 10 countries and there is plan to increase them by 50 by the end of the year.

Other customer-focused products and value-added services offered by the company include P2P, which allows you to transfer credit from one subscriber to another.

It's about time, they invest something into the country. The money they made last year is enough to build a Dubai

Nigeria: Obasanjo Spends N12b On Police Patrol Vehicles
Tordue Salem
Abuja

The Presidential committee on Police equipment, weekend displayed the first batch of about 25, 000 "patrol vehicles" to be presented to the Police by President Olusegun Obasanjo monday, ahead of the Presidential elections.

The BMW, Ford patrol jeeps and 4-wheel-drive trucks, imported into the Country a few days ago, are to be presented to men of the force, by President Obasanjo and the Inspector-General of police, Mr. Sunday Ehindero.
Africa 2007

The National Coordinator of the Police Equipment Fund (PEF), Mr. Kenny Martins, told journalists that "the investigation trucks, which were bought at the minimum of N5million each, cost a total of N12billion"

Mr. Martins who is the National Secretary of the National Democratic Party (NDP), but also working for the PDP Presidential candidate Umar Musa Yar'Adua, told journalists that "the patrol vehicles would go round the 36 states of the Federation"

^^ Nice work Naija!!

Governor duke is amazing, well look at this photo, the circled car is one of the Calabar taxis, that he commissioned a while ago!!

http://www.nairaland.com/attachments/34578_1_jpgf3ccdd27d2000e3f9255a7e3e2c48800

Nigerians abroad remit $7.7 billion in 2006

THE Central Bank of Nigeria (CBN) has disclosed that last year remittances by Nigerians in diaspora back home hit US$7.7 billion.


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The apex bank also indicated its readiness to surrender its head office in Abuja to the African Central Bank (ACB) anytime the African Union approves the take-off of the continental bank.

CBN governor, Chukwuma Soludo, stated these yesterday in Abuja at the quarterly economic forum chaired by President Olusegun Obasanjo. Soludo said that it was only a matter of time for the CBN to become only a branch of the ACB.

He said that the bank was working toward the internationalisation of the naira and that already, the currency, which had remained stable for months now, was being traded in the international money market.

Soludo said that overseas remittances from Nigerians abroad went up to 7.7 billion dollars last year, an amount that was higher the GDP of 29 of the 53 countries in Africa.

Soludo said that the CBN was also planning to establish an international financial centre in the Lekki peninsula of Lagos and that the centre would be in the mould of similar centres in Dubai and Singapore.

He said that for the country to join the league of 11 countries in the world that had been projected to be among developed countries by the year 2025, it must record an annual growth rate of 12.5 per cent.

He said that it was possible for the country to attain that level because only 40 per cent of its arable land was under cultivation and it was also blessed with many more human and material resources that were still untapped.

"We do not have the luxury of a gradual approach; we need a quantum leap to be there,'' he said, adding that the country was already preparing to work so hard to be able to join the league of emerging developed economies by 2020.

Soludo added that with the national gross domestic rising up to 145 million dollars the country was now at par with Chile and Malaysia, although with higher population.

He said that the country's per capita income had gone up to 1,000 dollars, the level it was in 1980, noting that a lot still needed to be done to further improve on the figure.

In her presentation, the Minister of Finance, Mrs. Nenadi Usman, said that the country had completely exited both the London and Paris club debts and was now left with the domestic debt.

She said that the domestic debts included pension arrears of N75 billion and a local contractors' debt of N300 billion.

She said that bonds were issued to liquidate the outstanding pensions and that those being owed were now receiving their cheque.

In his comment on the presentations, Obasanjo said that the forum would review the NEEDS1 document.

He noted that the implementation was being rounded off while the focus would now shift to the NEEDS 2 document to be implemented by the incoming administration. :banana:

while phillippines and many others stands about 1 billion dollars.

The Philippines is a great nation but is in the situation as Nigeria is currently, they are lik ethe most alike Nations in the world, they have the same problems!!

The Philippines is a great nation but is in the situation as Nigeria is currently, they are lik ethe most alike Nations in the world, they have the same problems!!
may god deliver both nations.

BUSINESS HERALD
NIGERIA: IFC's Largest Exposures in Africa
The International Finance Corporation (IFC) has said that Nigeria is already its ninth largest portfolio and largest exposure in Africa.

The corporation's executive vice president, Lars Thunnel, gave this indication recently noting that if the country's business entity continues to grow, activities could boast even further in the years coming as IFC seeks to enter new sectors, including the agro-allied business sector, infrastructure and manufacturing.

In his recent visit to the country, to explore opportunities for IFC's top ten country exposures globally and our largest market in Africa “we had a record year for investments last year and we hope to exceed beyond that this year”.

In Mr. Thunnel's view, the corporation is collaborating with the World Bank to help raise investment opportunities for businesses, exploring work in new sectors providing more products, and increasing our focus through improved support at the local level”.

He stated that IFC's activities in Nigeria have been growing sharply for several years, as the government has implemented key reforms to tackle corruption and improve governance, foster private sector growth, and uplift social service delivery.

In 2006, Mr. Thunnel, stressed, IFC has committed $266 million from its own account to ten projects in Nigeria, an increase of almost 30 percent from the year before, explaining that, IFC's portfolio in Nigeria now comprises about a third of its entire portfolio in Sub-Saharan Africa, up from only about 10 percent in 2001. The corporation's focus includes financial markets, infrastructure, manufacturing and oil, gas and mining. In particular, we are exploring ways to become more actively involved in infrastructure projects.

Mr. Thunnel noted that infrastructure is a frequent upheaval and a major reason for the increased cost of investing in Nigeria, which lowers the overall competitiveness of the economy; hence IFC is encouraging and supporting the governments, reforms and privatization efforts. IFC is scaling up dialogue with a range of stakeholders to assist in preparing and financing viable projects. An example of this approach is our collaboration Geometric power limited, where IFC is providing both financial products and moral suasion to up lift the private company's power generation capacity.

The corporation is boosting from traditional banking credit lines to new products, including trade finance, housing finance, insurance, and credit for micro, small and medium enterprises (SME).

In 2005, three Nigerian banks; GT bank, Diamond Bank and Investment Banking & Trust Company Plc - became the first from Africa to join our global trade finance program, which provides secured coverage of bank risk in emerging markets and enhance recipients trade finance coverage.

The program enables recipients to expand their trade finance transactions within an extensive network of countries and banks. It also supports trade with emerging markets across the globe by promoting flows of goods and services especially between developing countries. IFC also budges to raise financial product and advisory service offerings to improve the country's business environment and improve private sector development. IFC has also commenced offering local currency financing in the country. The move, approved by the Central Bank of Nigeria (CBN), allows companies that do not have foreign currency earnings access longer-term Naira financing from IFC without taking on foreign exchange risks.

The first of such loan, announced during Mr. Thunnel's visit, consists of N390 million ($3m) to Hygeia Nigeria Limited to support an upgrade of three hospitals. The objective of which is to expand and provide affordable health care to the populace. IFC remains committed to helping the private sector of the economy make its crucial contribution to reaching these goals.

I found an even longer version of that article in the British Press called "The Independent". Suddenly they are painting another picture of Nigeria/Africa...the first positive article on Nigeria since the late 60´s probably:lol: :lol:



New Nigeria seeks break with corrupt past

By Richard Dowden in Lagos
Published: 14 April 2007

In the old days going shopping in Nigeria meant going to London. Now Nigerians, at least in Lagos, can go to the country's first shopping mall and parade past air-conditioned shops of clothes and jewellery or sit in armchairs in a coffee shop and sip lattes or cappuccinos. The centrepiece is a South African Shoprite supermarket - again Nigeria's first - where the middle classes can browse and buy ordinary things as biscuits and pre-packed beef.

Not far away on the edge of the street are the old "shops" - open air markets where women sit with little piles of tomatoes or onions on the ground in front of them. Nearby in the open air hang hacked slabs of meat feasted on by flies. Until a few years ago these markets and a few family stores opening directly onto the street were all that was available as shops.

Elements of the old Nigeria are still visible at the Palms Mall. At Shoprite there is rather a lot of goat on the meat counter and the manager, Andrew Mweemba, a 37-year-old from Zambia, complains that containers of perishables regularly get held up at the port. The local electricity supply is too unreliable so the whole mall is powered by generators, which puts prices up. But, says Mr Mweemba, they are hitting their targets and controlling costs. They are planning several other malls in what must be one of the last countries in the world to enjoy retail services the rest of the human race take for granted.

This is probably the most visible sign of a new Nigeria, a Nigeria that is becoming more in tune with the rest of the planet. Its cause is the growth of a young middle class, many have whom have returned from London or New York to work in the booming financial services industry.

The Nigerian "Big Bang" started in 2001 with a free auction for Nigeria's mobile phone licences. Stung by a global reputation for corruption and fraud, President Olusegun Obasanjo's government started to reform the banks, reducing their number from 89 to 25 and supporting businesses that wanted to do things according to international standards. In the old days Nigerian business people were simply agents, getting contracts from the state or acting for foreign companies. Nigeria produced little except oil and gas and its exceedingly rich elite stayed rich because of connections, not competence.

Osaze Osifo, 39, who worked for HSBC in London, is typical of the new generation. He and six other Nigerian professionals are setting up a $300m equity fund in cool, glass panelled offices with a view across the lagoon and out to sea. They have brought international businessmen on to their board to make sure everything is done in accordance with international business practice.

"It is not just local people and people coming back from overseas," he explains, "Nigeria is where it is at. The hotels are full and the merchant banks are beginning to arrive." What encouraged bright young people like him to return home was the business space opened up by the economic reforms. Mr Obasanjo picked a business-minded team to run the economy and the national bank and appointed a brave young police officer to run the anti- corruption body, the Economic and Financial Crimes Commission. Its spectacular investigations and arrests of prominent people have gone some way to persuading outsiders that you can do business in Nigeria without being corrupt.

The sale of mobile phone licences in 2001 was the start of the new era, according to Mr Osifo. The business tyros are challenging the old oligarchs in business and, inevitably, in politics. "More and more people in Nigeria have too much at stake. They have something to fight for and they don't want their businesses ruined by the reputation for corruption", says Mr Osifo. In this weekend's gubernatorial elections and next Saturday's presidential, several of the "new Nigerians" are running for office. Few will win but their voice is increasingly being heard. Their main concern is for the incoming government to make the reforms irreversible. The next big task is to sort out the energy sector - the country still suffers daily power cuts - and the oil sector, the source of the worst corruption.

Lagos also used to have a frightening reputation for robbery and violence but that too has subsided.

Ten years ago the biggest companies on the Nigerian stock exchange would have been subsidiaries of multinational corporates. Today the three richest companies are all Nigerian. Its top 10 banks, most of them new, have announced returns of between 14 per cent and 38 per cent on shares.

Nigeria's richest business man, Aliko Dangote, turned 50 last week. A manufacturer of everything from cement to orange juice, he is reported to be worth $8bn - and may not be the richest man in Nigeria. Some of the oligarchs may be richer, but not for much longer. Nigeria used to be known as the land of no tomorrow. Some Nigerians have learnt deferred gratification.



Source: http://news.independent.co.uk/world/africa/article2447632.ece

i heard nigeria is having most millioniare or billionaire in africa nowadays...i heard it from the voice of america,thanks that thay are coming back to invest home.

Independent". Suddenly they are painting another picture of Nigeria/Africa...the first positive article on Nigeria since the late 60´s probably:lol: :lol:

No The Indepenednt is one of the best newspapers in the UK, they have run some very good reports on Nigeria. Follows these links for details

http://www.worldreport-ind.com/nigeria/index.htm
http://www.worldreport-ind.com/nigeria2/index.htm

The article that Africmento posted, is from a NewZealand Newspaper:)

Dangote's is speculated to be worth 8billion, that is a lot for a Businessman in a developing country. Bill Gates is worth 56, The Chilean Carlos is worth 53Billion and The Indian that runs Mittal isn't too far behind. Nigeria banks are stepping up, and moving up in the world, America even loaned some money to ensure that the banks get of their feet. Nigeria is 40% behind South Afica i most aspects of Economics, but Our southern brothers should be expecting a much closer rivalry :)

Considering that most of the Highirses in Lagos Island are owned by banks such as, First Bank, Union Bank, Wema etc, Nigeria might just be entering a Construction boom. :cheers2:

Obasanjo spends N12b on police patrol vehicles

Tordue Salem
Saturday, April 14, 2007

Abuja — The Presidential committee on Police equipment, weekend displayed the first batch of about 25, 000 “patrol vehicles” to be presented to the Police by President Olusegun Obasanjo monday, ahead of the Presidential elections.

The BMW, Ford patrol jeeps and 4-wheel-drive trucks, imported into the Country a few days ago, are to be presented to men of the force, by President Obasanjo and the Inspector-General of police, Mr. Sunday Ehindero.


The National Coordinator of the Police Equipment Fund (PEF), Mr. Kenny Martins, told journalists that “the investigation trucks, which were bought at the minimum of N5million each, cost a total of N12billion”

Mr. Martins who is the National Secretary of the National Democratic Party (NDP), but also working for the PDP Presidential candidate Umar Musa Yar’Adua, told journalists that “the patrol vehicles would go round the 36 states of the Federation”

Martins doused the fears of Nigerians that the vehicles would end up as “private property of some top government people.”


“These cars are not going to end up with anybody, they are for the police” he clarified.

The NDP chieftain, said “Every vehicle that is here will eventually be tracked in the tracker system, so that they will not be diverted for private use”

He said the Presidency in making the purchases, “dealt with reputable brands like Ford, BMW, Rover, and Toyota and 15% of the vehicle parts came with the cars, and you know that the parts wouldn’t be a problem, because most of the parts can be found here” said he.

Elections result:

http://newsimg.bbc.co.uk/media/images/42807000/gif/_42807339_nig_election2_map416.gif
Btw, Atiku is allowed to contest!! I told you tbite remember!!

I thought no politaclly related threads..

Firms plan $200m shrimps farm in Nigeria

A CONSORTIUM of foreign firms, based in Sri Lanka has concluded arrangements to establish aquaculture shrimp farm worth about $200 million (N25.2 billion) in some states in south-western part of the country.

Naija, yes, I thought you were the one that posted the article, sorry. Thanks to Africamento for doing it.:)

Le Phillippe, can we eventually open an extra thread on the Nigerian elections and keep this thread only dedicated to economic and business related news. :)
they could say bad about nigeria.

Nigeria: Obasanjo Commissions Olokola FTZ Project

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Daily Champion (Lagos)

April 17, 2007
Kola Adepoju
Abeokuta

President Olusegun Obasanjo will today flag off the multi-billion dollar OK Free Trade Zone Project at Olokola a joint venture initiative of Ogun and Ondo State governments.

According to a statement signed and issued by the Senior Special Assistant to Ogun State governor on Public Communication, Mr. Adegbenro Adebanjo, Obasanjo will also perform the ground breaking of the multi-billion dollar gas project sponsored by the OK LNG, a private investor.

Shedding more light on the project at a ministerial briefing at Iwe Irohin Press Centre yesterday, the Special Adviser to the Governor on Economic Planning and Development, Ms Yosola Akinbi,faulted impression that the project may not outlive the outgoing President Obasanjo's government.

Akinbi, who was fielding a question from our correspondent, said the private sector involvement in the project has taken it beyond the reach of any government and as such, would outlive the present administration both at federal and states levels.
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Akinbi, however, disclosed that the OK Free Trade Zone projects would create over 100,000 jobs.

Speaking in the same vein, the Special Adviser said the state Agro Cargo Airport project was neither moribund nor a white elephant project, adding that work is in progress and that people cannot see it because it has not reached the stage of construction.

Akinbi urged the people of the state to exercise patience because Airport project is not as quick as the building of houses, pointing out that took eight years to complete the just commissioned Terminal 2 of the Murtala Muhammed Airport, in Lagos.

Dangote Sugar to boost production capacity next year

By Michael Eboh
Tuesday, April 17, 2007

Dangote Sugar Refinery Plc (DSR) has concluded plans to expand the capacity of its factory from its current production capacity of 4,000 tonnes to 7,500 tonnes by next year.

The Chairman of the company, Alhaji Aliko Dangote, made this disclosure during the Annual General Meeting (AGM) held in Lagos recently. He said that “When this is done, the company would be the biggest sugar refinery in the history of the world.”

He further stated that the company will continually strive to improve its profit margin focusing on basic fundamentals, innovativeness, securing high quality through improved industrial and administrative efficiency.

He disclosed that the company, in fulfilment of its promise of paying dividends every quarter to its share-holders, will be paying its first quarter dividend before the end of April. “Subject to the approval of the Board, hopefully, in two weeks time, we will be paying our shareholders an amount agreed upon by the board. What this means is that our shareholders will be receiving two dividends this April,” he stated.

The President of Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu, praised the management of the company for effectively running the company to ensure that it fulfils its promises made to shareholders.

He said, “the current financial statement of the company can not be compared with that of other companies. The company promised us a dividend of N1.00 per share but ended up paying us N1.15 per share instead.”

He called on the company to put in place measures that will ensure that it sources, at least, 50 per cent of its raw materials locally as this will improve the economy of the country and better the lot of Nigerians.

He said, “As at today, the company is the second most capitalised on the Nigerian Stock Exchange, a fact that we all are happy with. We want its dividend to go in that line. Its dividend should continue to go up until it becomes the best in the capital market.

Dangote disclosed that the company recorded a turnover of N83.8bn and a profit after tax of 16.7bn, while it decided to pay a total dividend of N11.5bn, which translates to a dividend of N1.15 per share for the 2006 financial year.

The company, last year, conducted its Initial Public Offering (IPO) of 10 billion ordinary shares of 50 kobo each at N18.00 per share, which was over-subscribed by over 40 per cent amounting to N21.6 billion. The shares were listed on the Nigerian Stock Exchange (NSE) in March this year.

It performed a historical feat when the chairman disclosed that the over-subscribed portion of the IPO will be refunded to investors with an interest of 10 per cent, amounting to N2.160 billion.

Zenith Bank posts N17.6bn profit in nine months

By Omoh Gabriel, Business Editor
Tuesday, April 17, 2007

LAGOS—Zenith Bank Plc has reported a profit before tax of N17.64 billion for the nine months ending March, 2006, indicating a 59 per cent increase over the N11.08 billion recorded for the same period in 2006.

The bank’s operating results for the third quarter released on the floor of the Nigerian Stock Exchange (NSE) on Monday showed a remarkable improvement on all parameters with gross earnings rising to N62.66 billion from the N42.12 billion recorded for the same period of the previous year. The results also showed that profit after tax rose by 69 per cent, up from N8.86 billion recorded in the same period last year to N15 billion.

Zenith Bank, with a market capitalization of N377.6 billion, has always held an attraction for investors who have reaped a capital appreciation of almost 150 per cent in just one year following recent rallies in the bank’s stock on the floors of the NSE.

Since the public offer of early last year, the bank stock has risen gradually from N16.90, to close at N41.99 per share at the end of trading at the NSE on Tuesday last week, representing a capital gain of N25.09 per share or 148.46 per cent increase in value terms.

Apart from the capital appreciation, investors who bought into Zenith Bank have also reaped from the dividend payout as the bank made good on the promise made when it went public by paying N6.6 billion dividend or N1.10 per share, the highest dividend of any bank in the 2005/2006 financial year.

Zenith shares have been in high demand especially since January 17 when the bank announced its half year result that further confirmed its reputation for high level financial performance.

Analysts believe that the capital appreciation of almost 150 per cent and the strong nine month results announced are indicative of what to expect when the full year result is announced at the close of the bank’s financial year in June 2007.

“Investors have reaped significant capital gain from the investment and the dividend was highly encouraging despite the fact that its number of shares was increased through the IPO,” one market analyst said yesterday. Many others said they were confident the bank would continue to deliver solid financial performances over the coming years especially with its customer focused approach to banking and investment in latest technology.

Nigeria: El-Rufai Signs N30bn Infrastructure Projects

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Vanguard (Lagos)

April 18, 2007
Posted to the web April 18, 2007

Umoru Henry
Abuja

MINISTER of the Federal Capital Territory, Mallam Nasir El-Rufai yesterday signed a N30.3billion contract for the provision of water, electricity, roads and other major infrastructural components for Karshi and Kubwa satellite towns. It will be recall that the FCT Administration had identified seven satellite towns that would be opened up geared towards accommodating the influx of people into the territory.

Giving a breakdown of the contract which was signed with SCC Nigeria Limited, the Minister who stated that Karshi satellite town will gulp N11.5billion with completion period of 80 weeks (1 1/2years), said N18.8billion was voted for Kubwa with completion period of 108 weeks (2 years and 3 months).

Represented by the Minister of State for the FCT, Chief Desmond Akawor, Mallam El-Rufai described the contract signing agreement as a demonstration of President Obasanjo's commitment to the development of satellite towns in the FCT alongside the city centre.

According to him, the influx of people to the capital city with attendant infrastructural problems was earlier envisaged in 1976 following the creation of the territory, even as he assured that incoming government will carry on the projects.

Mallam El-Rufai explained that President Obasanjo had approved that the project should go ahead without hindrance, adding that the contract agreement with SCC was properly packaged with legal framework that would outlive the present administration. "Initially, FCT was designed that satellite towns will be developed alongside with the city centre to avoid the overpopulation the city is presently witnessing. But with the distortions we had during the military era that never took place. But we are back on track again", the minister assured. Signing for SCC Nigeria Limited, the Deputy Managing Director of the company, Engr. Efim Frank who thanked the FCT Administration for the trust and confidence reposed in them, promised to execute the projects as scheduled.

FG earns N70bn from 3G licence

By Aaron Ukodie, Deputy Business Editor, Lagos

Celtel and Alheri have just paid $150 million (N17.5 billion) each for the 3G licence, to join MTN and Globacom for a keen competition to provide upgraded services on mobile telephone handsets.

That has now earned the treasury up to N70 billion from the telecommunications sector alone in six years.

Both companies made the payment last week, in time before the April 13 deadline set by the Nigerian Communications Commission (NCC).

The four operators had deposited $15 million each to participate in the auction slated for April 2, but the exercise was put off when only four companies expressed interest to go into it.

The NCC offered the operators the reserve fee of $150 million and asked them to pay up by April 13 or forfeit the licence.

MTN was the first to make the payment two Fridays ago, followed by Globacom last week.

NCC Head of Public Affairs, Dave Imoko, confirmed on Tuesday that both Celtel and Alheri also met the payment deadline last week.

The government has now earned $600 million (N70 billion) from the 3G licence, on top of the $400 million made two months ago when the NCC awarded the fifth GSM licence to Mubadala.

The treasury earned $885 million from the GSM licence granted four companies in 2001 and another $200 million for the award of the Second National Operator (SNO) licence to Globacom in 2003.

Altogether, licences for the SNO, GSM, and 3G have fetched $2.8 billion, apart from money earned from Unified Licence granted eight companies, and income from minor telecommunications operations.

Globacom, MTN, and Celtel are warming up to roll out 3G services in strategic cities once the NCC issues them with the licences.

Globacom has done a test run in Lagos, Abuja, and Port Harcourt, and is awaiting the final go ahead from the regulator.

MTN and Celtel have also announced test runs of the 3G service.

Once the NCC concludes the issuance of the 3G licence, it may begin, from May 13, the process of awarding licences for the 450 MHz spectrum to CDMA (fixed wireless and mobile) operators who want to provide wider coverage with fewer cell sites.

i wonder where the money is going

i hope it goes into the economy.

FG targets $10b revenue from LNG

By Omoh Gabriel
Posted to the Web: Thursday, April 19, 2007

LAGOS — PRESIDENT Olusegun Obasanjo says Nigeria expects an annual revenue of $10 billion (about N1.28 trillion) from Liquefied Natural Gas (LNG) by 2011. He spoke at the ground breaking of the OK-LNG project at the Olokola Free Trade Zone in Ogun Waterside Local Government.

The $11 billion project, seen as the single largest project in Africa, is being co-sponsored by the NNPC Chevron OKLNG Holdings Limited, Shell OKLNG Holdings B.V. and British Gas OKLNG Limited.

President Obasanjo said: “I am personally gratified to see that our aspiration for the gas sector in 1999 is being met with forecast revenues by 2011, topping $10 billion annually. For many years, gas utilisation in Nigeria was neglected, resulting in wasteful flaring, prompting the present administration to lay down a well-structured agenda for the sector.

“OK-LNG, a critical step in the on-going transformation of the Nigerian gas sector, will produce 22 million tonnes per annum of LNG in a phased implementation with completion of the first stage of the project targeted for 2012.

“As part of the master-plan initiative, a sector-based gas pricing policy has also been established to ensure that gas is affordable for critical sectors of the Nigerian economy.

“In essence, by 2012/2013, we should have major LNG export terminals at three key points along the Nigerian coast, spread from the East to West. This should usher in a major wave of economic development in this axis. As natural gas demand continues to grow in the global market place, we must act with speed so as not to lose ground to other exporters.

"Nigeria is already an important supplier of LNG to the world natural gas market since the Nigerian LNG Project on Bonny Island in Rivers state commenced operations in 1999,’’ Obasanjo said.

Also speaking, Group Managing Director of NNPC, Mr Funso Kupolokun, explained that in eight years, Nigeria now had the second fastest growing LNG capacity in the world, describing the NLNG plant in Bonny as the world’s fastest growing LNG plant.

“Over the last few years, we have stimulated a significant growth in overall gas utilisation. Gas utilisation is forecast to grow in both the domestic and export segments from 5 billion cubic feet daily currently to about 20 billion cubic feet daily by 2011,” he said.

Panasonic to build factory in Nigeria
From DENNIS MERNYI, Abuja
Thursday, April 19, 2007

In response to the high demand of its products in the Nigerian markets and for the purpose of dominating the Nigerian market with its high technology electrical appliances, Panasonic, one of the leading household electronic companies has announced plans to open a manufacturing factory in the country.

Aside, the company has promised to henceforth offer free after sales services to all its customers for a period of twelve months provided they still use them.

Panasonic manager in Nigerian, Mr. Harish Ram explained that the move is part of the company’s strategy to take over Nigeria’s electronic market.

Harish Ram stated this in Abuja recently at the commissioning of the Abuja showroom of Panasonic located along Ahmadu Bello Way in Abuja.

“The company is currently undergoing series of repositioning to be able to meet the international demands of its millions of customers. We are now focusing on after sales services and provision of spare parts into the markets for easy accessibility,” he stated.

NIMASA nets $31.2bn in Q1 2007

From DENNIS MERNYI, Abuja
Thursday, April 19, 2007
The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced that it realised over $31.2million in the first quarter of 2007. The figure represents a 105.26 percentage increase from the $15. 2 million realised in 2006.

Lagos Set For Urban Rail Transit

(Click to Expand)
http://tbn0.google.com/images?q=tbn:GRcgbl7l3-u7dM:http://www.lasg-ebs-rcm.net/images/Train1.jpg (http://www.lasg-ebs-rcm.net/images/Train1.jpg)

In its continual effort to find a lasting solution to the perennial transportation problem in the state, the Lagos State Government in conjunction with the World Bank is planning to put in place the Light Rail Mass Transit and associated bus services before the end of the year. The Lagos Metropolitan Area Transport Authority (LAMATA)’s External Relations Specialist Mr. Kolawole Ojelabi confirmed the sincerity of the state government to embark on the project. Hence in recognition of the magnitude of the project, Lenna International has been assigned to carry out feasibility survey on the workability of the project. In realising the state government‘s vision, the Light Rail Mass Transit which will be powered by electricity by means of overhead wires would initially make use of Nigerian Railway Corporation (NRC) track from Iddo, Lagos to Ifo in Ogun state. In addition 11 stations would either be built or renovated and Iddo Terminal would be converted to a rail interchange while bus services would be introduced from Iddo to Lagos Island.

^^ Finally, this means 24hr electricity and Lrt, Sweet!!

Damn straight :cheers2:

FG adds 335MW to national grid

•Nigeria' to earn $1bn from LNG by 2011
By Chika Amanze-Nwachuku and Fidelia Okwuonu, 04.19.2007

Thursday, April 19, 2007

The Federal Government has added 335MW of power into the national grid with the commissioning Tuesday of the Omotosho Gas Turbine Power Plant, the second, of the four brand new power plant built by the present administration since its inception in 1999.

The commissioning of the power plant, which was built at the cost of N80 billion, took place, just as President Olusegun Obasanjo disclosed that Nigeria would earn about $10 billion from Liquefied Natural Gas (LNG) by 2011.

Speaking at the commissioning of the first phase of the power project cum laying of the foundation stone for the second phase, President Olusegun Obasanjo said the development was in furtherance with his administrationís commitment to end power outages in all parts of the country in the shortest possible time.

Obasanjo who restated Federal Governmentís bid to achieve the 10,000MW of power by the end of 2007, assured that other ongoing power projects initiated by his administration would be completed as schedule, adding that his dream of improving power supply in the country would surely be actualized.

Also speaking, Ondo State Governor, Dr. Olusegun Agagu stated that the power plant has planned capacity of 1000MW and was built at an estimated cost of N80 billion.

He said, the Omotosho plant, when completed, is expected to contribute 1000MW to the national grid and will constitute a substantial boost to power supply in the country and aid power stability in the West African Region.

Speaking in the same vein, Minister of Energy, Dr. Edmund Daukoru, stated that the plant has opened a floodgate for commercial activities in Ondo State and beyond and urged the Nigerian Gas Company to ensure availability of gas to the plant.

Meanwhile, President Obasanjo has described the Nigeria Liquefied Natural Gas (LNG) as an important supplier of gas to the world natural market, stating that Nigeria will make well over $10billion in the business come 2011.

Making the disclosure Tuesday, at the ground breaking ceremony of the Olokola Liquefied Natural Gas (OK-LNG) and the signing agreement of the Olokola Free Trade Zone (OKFTZ) in Olokola in Ogun state, the President said, that project was part of his administrationís commitment to ensuring absolute and sustainable economic growth in the country.

According to him, the OKLNG whose major partners are the Nigeria National Petroleum Company (NNPC), Chevron Nigeria Limited (CNL), Shell Petroleum Development Company of Nigeria(SPDC) and BG Group, is part of the ongoing projects aimed at transforming the Nigerian gas sector, adding that it is expected to produce 22 million tones in the year 2012 as well as two million tonnes per annum of liquefied natural gas.

The NNPC has a share percentage of 40 per cent equity in the project, Chevron 19.50 per cent, Shell Nigeria 19.50 percent, BG Group 14.25 per cent, while the remaining 6.75 per cent is for strategic investors, he said.

He noted that for Nigeria to be the gas supply to Equatorial Guinea, by 2012/2014, we should have major LNG export terminal at three key points along the Nigerian coast spread from East to West.


The gas master plan was initiated with a mended and maximized revenue fund and to enable the multiplier effect of gas in the domestic economy and preserve energy security for Nigeriaî, he said.

He also disclosed that there are two major LNG plants in the west including the OKLNG, while there are over 22 new power plants at various stages of development, two methanol plants and many other manufacturing plants, all hoping to use gas as fuel.

He assured that the implementation and completion of the first stage of the OKLNG project is targeted for 2012.

He explained that the gas pricing policy was aimed at ensuring that gas is affordable for critical factors of the Nigerian economy, adding that the OKLNG anchors gas export in West Africa.

He assured investors that the project would aid in ushering in a major wave of economic development in this axis, as natural gas would demand continuous work to go into the global market play adding that we must add to speed so as not to lose ground to other exporters.

Obasanjo noted that Nigeria is already an important supplier of gas to the world natural gas market from the Nigeria LNG project in the bonny island in river state, which he said, commenced operation in 1999.

ìI am personally justified to see that our aspirations for the gas projects from 1999, having met with the forecast revenues by 2011, would be topping $1 billionî, he said, pointing out that the gas project initiatives by his government was informed by the past neglect, which he said, resulted in gas flaring.

He stated the gas flaring prompted him to lay down a well-structured agenda for the gas sector, which has paid off as a source of enormous wealth for the nation.

He congratulated the initiators of the project and the sponsors for of the project for their determination and hard work, adding that the success of the project would require special harmony between the operators of the project and the sponsors and also the host community and the various communities in the area.

There's more too come:)

^^ Finally, this means 24hr electricity and Lrt, Sweet!!

you mean this would hold them down to supply all of the state for 24 hours?...unhm.

Nigeria: African Central Bank for Nigeria -- Obasanjo

Vanguard (Lagos)

April 20, 2007
Posted to the web April 20, 2007

Tony Edike
Enugu

PRESIDENT Olusegun Obasanjo says African leaders have agreed to establish a Central Bank of Africa with its headquarters in Nigeria in recognition of the enormous successes the nation has recorded through the reforms in the banking and financial sector.

The President made this disclosure at the commissioning of the new South East zonal headquarters of the Central Bank in Enugu shortly after commissioning the permanent site of the University of Nigeria Teaching Hospital , Ituku-Ozalla near Enugu equipped with ultra-modern medical equipment under the VAMED Engineering initiative.

He said the various reforms in the different sectors of the economy had put the nation on the right track towards achieving its goal of maintaining one of the twenty largest economies in the world by the year 2020. Such an achievement, he said, would reflect positively on all sectors of the economy making Nigeria not only the leading economy but the hob of economic activities in Africa .

President Obasanjo praised the CBN Governor, Professor Charles Soludo, the CBN staff and management for their numerous achievements which according to him bordered on the miraculous. He said that the national economy was on course towards attaining the targeted 10 per cent growth annually

His words: "If what Soludo tells me is anything to go by, we will even have offshore banking facilities and we will be growing at a rate that will make us a country to reckon with in the committee of nations. That is our desire and that is where we are going."

Nigeria: 'Nigeria's Inflation Drops to 8 Percent '

This Day (Lagos)

April 20, 2007
Posted to the web April 20, 2007

Patrick Ugeh
Abuja

A report by one of the world's foremost international investment banks, Goldman Sachs, says inflation rate in Nigeria has "declined steadily to the upper single digits" to 7.7% year-on-year as at February 2007.

Attributing this to the Federal Government's current monetary policy, the report, made available to newsmen by the Minister of Finance, Nenadi Usman, late yesterday, also stated that Gross Domestic Product (GDP) growth had more than doubled in the last four years, from pre-2002, to an average of 7.3% from less than 3% in prior years.

On macroeconomic stability, the report noted that the Nigerian economy was "much less vulnerable to adverse external shocks" as a result of the Paris and London Club debt restructurings, which had seen Nigeria's debt to GDP ratio fall to 3% (as at the end of 2006), compared to a 60% debt to GDP ratio, as was the case in the 1990's.

It observed that an important part of this GDP growth was that this recent, higher growth trajectory was driven mainly by non-oil sector. It further pointed out that the largest sector of the non-oil sector, agriculture, had enjoyed "robust growth" in the last few years, because of relatively successful policy interventions by the current administration, such as improving access to credit and markets, and irrigation.

DUDL in good start, first property taken up before completion

By Sulaimon Olanrewaju

DESIGN Union Developing Limited, a real estate development and construction company which took-off recently, is poised to be a marketing hit, judging by its very first development project. The project, a five-storey block, has had all the four lettable/leaseable floors taken up in advance of completion by blue chip firms.

According to the company, the project, which is the re-development of an existing building in the heart of Victoria Island, Lagos, is expected to have ample parking spaces for the occupants of the facility as well as their guests. The only floor not planned for normal lease/letting is the ground floor which is expected to be made up of a bouquet of 7-star hotel standard office suites for short and temporary letting.

Speaking on the take-up of the available floors, long before completion, Anthony Aihie, CEO of Design Union Developing Limited, explained that apart from his company’s innovative strategies, the achievement was possible “because of our track records in our previous endeavours before setting up this new operation, as a result of which clients and potential clients have continued to find it easier to accept our word.”

Kemi Alakija, the Company’s Chief Executive Officer, explained that the new building would boast of one of the best finishings in commercial property development in Nigeria. Adding that, “our strength lies in our designs, the structure of our buildings, the materials used, the contractors and consultants we engage, as well as the facility maintenance that we plan to put on the ground. Take the Victoria Island five-storey office block, for example, we are going to have the best facility management unit in the country, in addition to the latest ‘intelligent monitoring’ security system”.

The company plans to have 10 major development projects within the next two years. One of these major projects is a 12-storey high-income residential development planned around Bar Beach. The Bar Beach project has been christened “Y” Flats because of the proposed shape of the property.

Design Union Developing Limited is a new initiative of Design Union Consulting LLC, a leading firm of architects, designers, engineers and project managers. The company is presently in the process of raising about N10 billion worth of capital by way of private placements and other capital market instruments. The funding is expected to help the company realize its plans for the next three to five years including the provision of 1000 affordable home estate of houses priced from N1.5 to N2.5 million, as well as residential estates for the high-end luxury apartments market, and apartments for the middle income groups.

Design Union Consulting LLC, the prime promoter of Design Union Developing Limited, has in less than six years of operations established itself as a credible leader in construction and development consulting. The firm has grown to over 50 professionals with offices in Lagos, Port Harcourt and Accra. The company is known to have delivered several world-class facilities including the design and nation-wide rollout of Oando Petrol Stations, the design and rollout of Standard Chartered Bank branches in Port Harcourt and Lagos, and the design and project management of a 3-block office tower complex for Rockson Engineering in Port Harcourt currently under construction.

The firm also accomplished two major end-to-end developments namely, Charlesgate apartments in Port Harcourt and Funtopia Entertainment Park in Lagos.

CBA in Nigeria, wow!!

Dangote Sugar Records N7.158bn 1st Quarter Profit

By Justice Ilevbare, 04.21.2007
Dangote Sugar Refi-nery Plc first quarter result has shown that the company is on the verge of hitting it big by the end of its financial year. The company, which went public end of last year, posted an impressive first quarter profit of N7.158 billion as against N5.916 billion recorded in the corresponding period last year, an increase of 21 per cent.
This was realised from a turnover of N20.04 billion, which was actually a decline of N1.86 billion against N21.90 billion posted the previous year.
The good news about the company's performance actually started with the management of its cost profile. Cost of sales declined from N15.15 billion in 2006 to N12.51 billion, a decrease of N2.64 billion or 17.42 per cent.
Another highpoint of the result is the company's ability to stabilize its distribution and administrative expenses. With the ever increasing cost of doing business in the country, Dangote Sugar Refinery was able to maintain the same level of expenses with the 2006 figure. The company spent a total N620 million for the first quarter of 2007, the same level with that of 2006.
With N273 million recorded as other income item, it was obvious that the company would be reporting profit in all directions but downwards. And so, when the company made public the first quarter result last Tuesday, shareholders were not disappointed.
Chairman of the company, Alhaji Aliko Dangote, had stated during the listing of the company on the Nigerian Stock Exchange, NSE, on March 8, this year that shareholders would be receiving dividend every quarter. To further gladden the hearts of its shareholders, especially those that bought into the company during its public offer end of last year, the company announced an interim dividend of 40k per share which translates to a dividend cover of 80%. The declaration of an interim dividend last Tuesday which would be paid on the 27th April 2007 was therefore a realization of a promise made earlier and it is the first company in Nigerian history to pay quarterly dividend to shareholders.
In its last financial year, the company paid a dividend of 115k per share on the 11th April 2007. And barring unforeseen circumstances, the company's management is confident of out-performing an already impressive first quarter report in the second quarter.
Early reaction to the company's good result was the prompt share price appreciation, moving from N51.14 per share to close at N56.59 per share as at the close of trading last Thursday.
With this share performance, the equity which was listed at N18 per share has realized capital appreciation of 214 per cent with a market capitalization of well over N566 billion making it retain its position as the most capitalized stock in the Nigerian Stock Exchange. All things being equal, the company according to the chairman, is expected to start export of sugar this year.

Coal blocks: BPE pre-qualifies 36 investors

Friday, Apr 20, 2007

The Bureau for Public Enterprises (BPE), has pre-qualified 36 prospective investors for the acquisition of nine coal blocks of the Nigeria Coal Corporation (NCC).

The Bureau has also pre-qualified 21 investors interested in buying 13 mining titles belonging to NCC.

A statement issued in Abuja by BPE, said that a breakdown showed that for the coal blocks, 17 of the firms that indicated interest were from Nigeria.

Six of the firms came from South Africa, six from India, one from the UAE, one from Poland, one - each from the UK, Italy, Russia, Canada and a Nigeria-Chinese firm. .

According to the statement, a breakdown showed that for the mining titles, 13 firms from Nigeria indicated interest, two from India, two from South Africa, one from Canada, one from Poland and one joint bid from Nigeria and India.

The statement was signed by Mr Chigbo Anichebe, Head, Public Communications of the BPE.

The statement added that the investors who had been pre-qualified would undertake due diligence before they would be required to submit their technical and financial proposals to BPE for consideration.

It stated that BPE had placed advertisements between October 2006 and February 2007 in both Nigerian and foreign media asking for applications from interested investors for the acquisition of the NCC blocks and mining titles.

“By the deadline of February 2007,30 Expression of Interest (EOI) were harvested in respect of the coal blocks and 29 for mining titles,” it added.

It would be recalled that BPE had in February 2006, pre-qualified 11 prospective investors in respect of the coal blocks for submission of technical and financial bids before the process was suspended.

The prospective companies were asked not to resubmit fresh bids when the Bureau placed advert between October 2006 and February 2007.

Sequel to the receipt of the new application for coal blocks, BPE has now pre-qualified 25 out of 30 firms that applied.

Fitch affirms UBA’s A+ long term rating

April 22nd, 2007


The leading global rating and research agency, Fitch Ratings, has affirmed an A+ long term rating for United Bank for Africa (UBA) Plc and endorsed the bank as Nigeria’s largest by asset portfolio.

Fitch considers quantitative aspects of a company such as balance sheet, profitability and risk management frameworks; and qualitative factors, such as strategy, quality of management, array of products, the environment in which it operates, and future development of its business vision. The A+ rating for UBA was published on Friday, April 13, 2007, and this rating comes as timely news as the Bank revs up its march towards becoming Africa ’s leading Financial Services Institution.

Fitch, in according The A+ rating for UBA is an impressive score against the backdrop of a complex merger. Fitch declared in a statement that "the rating reflects UBA’s enhanced retail and wholesale banking franchise following the merger with Standard Trust Bank (STB) and the bank’s consistent earnings track record." Fitch also added that UBA’s improved net earnings for the year ended September 30, 2006 was attributable to "significant increases in net interest and non-interest income on the back of an annualized 168 percent growth in the bank’s balance sheet".

Fitch’s assessment of UBA as Nigeria ’s largest bank corroborates the analysis of Nigeria ’s foremost rating and research agency, Agusto & Co., whose review of the banking industry and ranking of its top players, in February 2007 reached the same conclusion.

The glowing scorecards from these reputable independent agencies, at home and abroad, provide significant leverage to UBA’s determination to compete much more strongly in the international arena.

In addition to the Fitch rating and the Agusto & Co ranking, UBA has recently received various accolades in recognition of the bank’s robust retail distribution network, high growth rate and unparalleled business strategy. UBA was named Bank of the Year at Thisday Awards for Excellence in February 2007 and Best Branch Network by Vanguard Newspapers within the same month.

UBA’s number one position in Nigeria and West Africa is by virtue of its robust asset base, which is in excess of N1trillion, (the first ever and only bank in Nigeria to attain this feat), a deposit base of N776 billion, a retail network of 560 branches and as many as 6 million customers, among other parameters.

The bank has earned the appellation of ‘Financial Solutions Powerhouse’ by virtue of its full range financial services portfolio under the umbrella UBA brand.

With a well-established bank in Ghana (with seven branches) that blazed the trail for Nigerian banks, an office in the Cayman Islands and being the only sub-Saharan African bank with a regulatory presence in the United States (Rockefeller Plaza, New York), UBA is making unparalleled strides towards its aspiration to be a truly global African mega bank, delivering innovative products and services to customers wherever they may be.

The Group Managing Director and CEO of UBA, Mr. Tony Elumelu, was delighted with this latest accolade from the acclaimed agency, asserting that, "the A+ Fitch rating recognizes the long-term sustainability of UBA and authenticates our confidence in our capability to achieve our high ambitions and continually grow value

for all our stakeholders."

Last week UBA released half year results showing a further consolidation of its leadership position in the banking industry with over 120% growth in net earnings. This result came a couple of weeks after the International Finance Corporation (IFC), the private sector arm of the World Bank, invested over USD50 million in UBA in a deal that signals IFC’s strategic partnership with select Nigerian financial institutions.

An FT article on Nigeria :cheers:

Global investors eye Nigeria

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

By Joanna Chung

Published: April 20 2007 19:52 | Last updated: April 20 2007 19:52

Trying to raise hundreds of millions of dollars from international investors in the midst of state and presidential elections alleged to be plagued by abuses is not for the faint of heart.

But this week, the United Bank for Africa, the country’s largest bank by assets, raised $300m (€220m, £150m) from international institutional investors through an equity capital placement, a big sum by the standards of Africa’s capital markets, despite allegations of abusive election practices. Nigerians go to the polls on Saturday to vote for a president. State elections were held last week.


The UBA transaction was oversubscribed, allowing the bank to raise $100m more than planned. It highlighted why bankers are converging on Nigeria, a country many investors see as Africa’s most promising frontier market.

Nigeria, once a basketcase of the financial world, is now a darling, having cleared more than $30bn of external debt in the past year. It has also embarked on, among other things, reforms in its banking sector.

“Nigeria is the giant that is awakening,” says Yvonne Ike, senior country officer for Nigeria for JPMorgan, which managed the UBA’s equity placing along with Moscow investment bank Renaissance Capital.

“Of course there are . . . a lot of concerns during the election period. We also absolutely have our eye on the political risks at the present, but we are fixed more firmly on the long-term opportunities.”

There is a hope within the international Nigerian business community that with oil revenues high, any incoming government will be able to buy off discontent.

But domestic and international observers remain worried that the widespread problems with the election will undermine the legitimacy of the incoming administration.

This has not stopped some investors from committing money, says Christopher Hartland-Peel, African equity analyst at Exotix, a London-based brokerage. Exotix, with a local Nigerian bank, is placing $45m of equity with domestic and international investors for IGI Insurance, the number two insurer by assets.

In addition to an increasing number of equity placements, there have been bond issues by two Nigerian banks, some private equity activity, and a growing number of mergers and acquisitions. Some companies are considering an international stock market listing this year.

Investment banks, including JPMorgan, Citi, Deutsche Bank, Merrill Lynch, Credit Suisse, and HSBC have recently stepped up their presence in Nigeria and sub-Saharan Africa. Ghana could become the first west African nation to enter the international bond markets with a benchmark sovereign bond issue this year and Botswana and Zambia are also increasingly attracting foreign investor interest.

Along with Nigeria, these three countries have seen “pronounced foreign investor interest in their local currency debt markets”, according to a report this month by the International Monetary Fund. Early estimates suggest that in the first half of 2006, Nigeria received portfolio inflows of roughly $1bn, more than five times the total capital flows in 2005.

Additional reporting by William Wallis and Dino Mahtani

Copyright The Financial Times Limited 2007

Thats what I want to hear??

National electricity generation hits 3,300mw, says minister


By Yakubu Lawal, Deputy Energy Editor

THE Minister of State for Energy, Alhaji Ahmed Abdulhamid has said that power generation in the country has increased from the level it was about two months ago to 3,300 megawatts (mw). Before now the generation level went below 2,000mw.

The minister who disclosed this to The Guardian at the commissioning of the Omotosho Gas Turbine power station in Ondo State last week stated that the Escravos-Lagos gas pipeline has been cleaned up and full gas supply now restored to Egbin thermal power station.

The Omotosho power station is expected to generate about 335mw but about 80mw of power will from this week be exported into the national grid system.

Abdulhamid added that with rainy season now at our doorstep, the hydro power stations will also be making significant contribution to the grid and that will further boost power availability to the country.

"We are now generating about 3,300mw. This started since last weekend when the NGC completed the cleaning of the gas pipeline. With the commissioning of this plant today, a lot of improvement has come into the system," the minister said.

Also speaking on the power situation in the country, Presidential Adviser on Electric Power, Mr. Joseph Makoju told The Guardian that more power would be generated from the Omotosho plant as well as from other power station already commissioned by President Olusegun Obasanjo.

Makoju noted that the Obasanjo administration has commissioned several stations, including Omoku Power plant in Rivers State, Geregu thermal plant in Kogi State, Agip Okpai power station, the Omotosho plant and Alaoji in the Eastern part of the country.

He stated further that more projects would be commissioned before the end of this year, pointing out that all is set towards achieving the 10,000mw target set by this administration.

President Obasanjo had stated at the commissioning that by the time the Papalanto thermal power station in Ogun State is commissioned, the power situation would have improved, noting that the government has laid the foundation of the Mambila 2,600mw capacity hydro power station.

Managing Director of Nigeria Gas Company (NGC), Mr. Chris Ogiemwonyi assured that all the power plant will be adequately supplied with gas, noting that the issue of price differential is being tackled.

He said that NGC now has more than one source of gas supply basically from Utorogu/Onben as well as Offshore line.

"We are ready to supply all the IPP plants and we are expanding our sources of gas supply," Ogiemwonyi stated.

Also speaking with The Guardian, the Chief Operating Officer (COO) of Transmission Company of Nigeria, Mr. Godwin Osakue said all the transmission lines that will evacuate the power from the sources of generation into the grid system and the transmission station are being completed.

Osakue said that the transmission lines are equally being strengthened to cope with the increase in power generation, stressing that if power is generated and it is not evacuated then the ultimate consumers will not feel the impact.

"Government has invested a lot in this sector and I can tell you that we are ready to evacuate all the power generated into the national grid," he stated.

The Omotosho power station is one of the four new plants planned as a medium term strategy of Obasanjo's administration to boost the nation's electricity generating capacity.

The scope of the plant include building of a simple cycle gas turbine plant with a total capacity of 335mw using eight single shaft heavy duty model from China.

The contract also includes construction of a half breaker system switchyard complete with control room and a transmission line with the existing transmission line from Benin to Ikeja West.

GSM: Nigeria subscribers’ base now 38 million


•Set to hit 50m by end of 2007 :cucumber: :pepper: :banana: :carrot: :banana2:
04.22.2007

Sunday, April 22, 2007

Efem Nkanga writes that the feat achieved by Nigeria in the GSM telecommunication service as it hits 38 million subscriber base in less than six years is remarkable even as there are ongoing efforts to increase the figure to 50 million by the end of 2007.

For foreign investors in the telecom sector, Nigeria is the place to be as the subscribers’ base keeps soaring. Latest statistics have it that the subscriber base which recorded 34 million lines in the first quarter of this year, has actually increased to 38 million. More than this, it has been projected that the nation could hit the 50 million subscriber base by the end of this year. Indeed, Informa and Telecoms gave a vivid account of the stunning growth of the nation’s revolutionary telecoms, when it predicted last year that Nigeria will in 2007 overtake South Africa and become the number one telecoms base in Africa.

The Nigerian Communications Commission (NCC) only recently announced the award of a Unified Access Service Licence to the Mubadala Development Company of the United Arab Emirates, having confirmed the payment of the full licence fee of $400million. The Licence includes a mobile licence and spectrum in the GSM 1800 and 900 MHz bands.

Even now, the country is set to embrace the 3G technology which will also usher in new technologies characterized by the convergence of voice, video and data in line with technological advancements in other parts of the developed world.

With the introduction of unified licensing making it possible for operators to launch voice, data and internet services on one platform, there is no doubt that Nigeria, an emerging player in the global telecoms market will in the foreseeable future become a beehive of technological activities that will put its citizens on an even platform with other developed countries in the comity of nations.

The astounding growth is such that bodies like the GSM association, which is committed to spreading the gains of the GSM, have severally called for the liberalization of the gateways of developing nations in order to propel the kind of growth recorded in Nigeria to other developing nations of the world.

Nigeria is now being used as a test case on how effective communications can be used to achieve and usher in development if the policy environment was right. Most people can still not get over the fact that six years down the line, telephone facilities that used to be the exclusive preserve of the rich and mighty has become so affordable that Okada riders and illiterate pepper sellers, meat and fish sellers in the market all clutch mobile phones. The music of easy communications access is sweetly playing in the ears of Nigerians with many even owning about two to three handsets at a time.

The country’s telecommunications was targeted to hit a peak of 50 million subscribers’ base by 2010. But with the sector’s current growth rate, experts are of the view that the target could be fast-tracked to the end of this year instead.

The liberalization of the sector has also opened a veritable door of wealth creation for scores of Nigerians. It has helped in bringing down poverty and most Nigerians now use the platform provided by the GSM technology to make money. It’s a common thing to see Nigerians who a few years ago had no clue about information communications technology accessing the internet and making use of the tools of communications to enhance their social and business lives.

The in thing now is the e-culture amongst Nigerians characterized by, email, e Learning, ePayment, eBanking, ePassport, eTicketing, eServices, etc. Now practically everything can be done online. The Internet has opened up a world most Nigerians never knew existed and just by the touch of a button and the magic of the World Wide Web (www). Nigerians too can tap into world experiences and be players in the communication evolution that is fast taking over the global terrain.

Indeed, the effective communication window opened by the GSM revolution in Nigeria aside from increased subscriber base has opened up opportunities and investment doors for the country. For example, the nation’s telecoms sector is now the second largest to bring in Foreign Direct Investments FDI to the tune of billions of dollars following closely the Oil and Gas industry and accounting for over five percent of the nation’s gross domestic product, GDP, last year. Stakeholders have estimated that over $10 billion has been brought into the country through the telecoms sector alone.

The sector is also estimated to have created over 100,000 jobs, with many more waiting to be created. With major operators like MTN, Globacom and Celtel driving the dynamic growth in the industry coupled with the added input of the private telecom operators, PTOs, and the expected competition that the entrance of Mudabala, the fifth GSM operator will bring into the sector, the possibility of the nation hitting the 50 million subscriber base before the end of the year looks real.

In August 2001, Econet now Celtel blazed the trail by connecting the first Nigerian subscriber in 2001, closely followed by MTN a day later. By the end of the first year, over a million subscribers were connected. At the end of the second year, well over a million connections was made bringing the subscriber base to 2,774,790. By the third year, in 2004 to be precise, the subscriber base contrary to all expectations hit the 10 million mark.

With investors beginning to take notice of Nigeria, in 2005, the subscriber base hit almost 20 million. By the end of 2006, the subscriber base was almost 30 million. Nigeria as a result of this feat has earned the respect of the international community and as of today has become the toast of international investors jostling to have a piece of the action especially with current projections that the nation will hit the 50 million subscriber base by year end.

The battle for market share that competition will pose as the weapon that could largely make the 50 million subscriber base possible and ensure penetration into the rural and unserved areas. Even though some experts are of the view that it is not really profitable to roll out in the rural areas because of the low income level of the rural populace, the fact still remains that the rural areas cannot be ignored in the scheme of things as they are today. One reason is that Nigeria has the highest revenue per user (HRPU) statistics and is a fertile ground for any investor to recoup their investments.

MTN recently declared over N260 billion in profits for the year ended 2006. Before now, the country has witnessed higher investments in the urban areas as opposed to lower investments in the rural areas by telecoms operators. In order to bridge this gap, telecommunications and internet services need to be deployed to the rural areas.

The benefits for the nation in the deployment of ICT to the rural areas are enormous. One is the fact that it will accelerate economic growth in the rural areas leading to the stoppage of rural to urban migration. It will also help to reduce poverty as the deployment will attract a lot of opportunities for wealth creation to the rural populace, through the proliferation of small and medium scale enterprises, promotion of human development, and the improvement of the quality of education at the rural level.

The advancement recorded in the western world, pace setters of the digital revolution through constant advancement in technology is a desirable thing that needed to be duplicated across all parts of Nigeria. The ability to deploy telephony and internet to all the nooks and crannies of the country will surely accelerate growth and open a window of opportunities for the rural folks because of the undeniable fact that information leads to improved standard of living. It plays a crucial role in the economic development of any administration.

The federal government currently has different initiatives aimed at digitalizing the nation. One is the Computer for all Nigerians initiative, CANi, which seeks to provide affordable personal computers for the citizenry through flexible payment terms that will encourage and make the acquisition of PCs cheaper for Nigerians. Another is the Universal Access funds initiative geared at providing funds to extend ICTs to rural areas for socio economic empowerment and advancement of the people. The National Rural Telephony project, is also another initiative that seeks to ensure rural telephony project in every village in Nigeria as well as the State Accelerated Broadband Initiative, SABI, among other initiatives.

In recognition of the critical role of telecommunications in social and economic development, vis-à-vis the vision of the Federal Government of Nigeria to place the country amongst the successful emerging nations, President, Olusegun Obasanjo, in July 1999 noted that: “We cannot be talking about creating a conducive environment for foreign investments if the performance of our transport, telecommunication and energy sectors remain dismal and epileptic.”

To give effect to this national aspiration for improved performance of the telecommunications sector, the government formulated and released a National Telecommunications Policy in 2000, with an overriding objective “to achieve the modernization and rapid expansion of the telecommunications networks and services”.

Pursuant to achieving the goals as well as the objectives and activities enunciated in the National Telecommunications Policy, the Nigerian Communications Commission (NCC) licenced four Digital Mobile telephone operators, a Second National Operator (SNO), two National Long Distance Operators, and several Fixed Wireless Access (FWA) Operators. Also licensed are a good number of access providers (employing VSAT) and value added services providers such as Internet Service Providers, Prepaid Card Calling Providers, among others.

Resulting from these regulatory actions, the Nigerian Telecommunications Industry has experienced significant growth in the last four years, following the successful take-off of digital mobile telephone services in the country, using the Global System for Mobile (GSM) technology. From less than 500,000 active fixed telephone lines as at mid 2001, the total number of connected fixed and mobile telephone lines increased to about 10.2 million lines at the end of 2004.

Up till the year 2001, Nigeria was classified as one of Africa’s most under-served telecommunications markets, but today, Nigeria is one of the world’s fastest growing telecommunications market. These achievements can be attributed largely to the goodwill exhibited by the Nigerian government and the enabling and conducive environment with respect to government policy and regulatory regimes.

Impact of Sector Liberalisation

Since May 1999, the Federal Government has pursued an aggressive market liberalization policy, and today, Nigeria is perhaps the most liberalized telecoms market in Africa. Since the introduction of competition in the fixed line market segment, 21 private operators have added about 520,000 new lines (representing about 51 per cent of total fixed lines connected) to the national fixed telephone network of about 1.03 million as at December 2004. This shows a decline in the market share of the incumbent operator, the Nigerian Telecommunications Plc (NITEL), to about 49 per cent of the total connected fixed lines. The increase in the number of fixed lines is, however, a far cry from what the market requires considering the huge demand for telecommunications services.

The licensing of Digital Mobile operators, a Second National Operator (SNO), the licensing of 25 Fixed Wireless Access (FWA) Operators (on a state-by-state basis), and the Wire Nigeria (WiN) initiative are some of the measures evolved to redress the sub-optimal level of access to telecommunications services in the country.

The cumulative effect of the increase in the number of connected fixed telephones and the number of mobile subscribers is that the teledensity profile of the country increased dramatically to about 8.5 from 1.89 in 2002 and 3.36 in 2003. These results notwithstanding, there are evidences to show that more could have been achieved but for the constraints in lack of backbone capacity to meet demand.

In the area of data services, there have emerged a good number of network operators deploying VSAT and fiber optic Local Area Networks as well as Wide Area Networks for corporate bodies, telecommunications value added service providers and institutions. In addition, in spite of the serious limitations posed by lack of adequate infrastructure and cost of bandwidth, users of Internet Services in the country is currently estimated at about 1.8 million showing an average annual growth rate of about 130 per cent from a mere 107,194 users in 2000. Consequently, Internet penetration has increased from a mere 0.1 percent in 2000 to about 1.4 percent at the end of 2004.

Impact of Competition on the Tariffs

The entrance of multiple operators in the telecom sector, according to NCC, particularly the mobile segment, coupled with intensifying competitive rivalry, has had resounding successes in the industry in terms of growing subscriber base, decreasing tariff, widening coverage areas, improving quality of service levels, expanding product range and innovativeness and increasing employment opportunities.

At the beginning of sector liberalisation in 2000, telephones were either not available or out rightly not affordable as in the case of the PTOs. The PTOs charged as high as N100,000.00 each for fixed lines to the very few people that could afford them. However by August 2001, when the newly licensed mobile operators deployed services, digital mobile lines became available at a price range of N10,000.00 to N20,000.00 in a sale transaction devoid of long procedures and waiting times. Telephone lines could now be bought off the shelf in a matter of minutes compared to same transactions that took months (in some instances years) to accomplish before now.

Today, mobile lines, which sold for between N60,000.00 and N70,000.00 between 1996 and early 2000, for analogue services, are available in the market today at less than two percent for basic prepaid digital (GSM) services. The most expensive SIM pack in the market now is in the neighborhood of N1,000.00, out of which about half is given as free airtime.

Similarly, the acquisition cost of fixed lines have crashed, over the same period, by about 90 per cent from over N100,000.00 in 2000 to an average of about N13,000.00 today.

With respect to call rates, there has equally been some significant drop, particularly in mobile telephony, especially since mid 2003 when the fourth operator commenced operations. From an initial N50.00 per minute for basic prepaid service, the mobile call tariff has dropped to between N25.00 and N35.00 per minute. Consumers also enjoy significant price slashes as a result of several tariff-based promotion packages, which has driven the call rate further down to N20.00 per minute (with booster or bumper cards).

However, as a result of the tariff rebalancing carried out by the incumbent operator in 2003, the tariffs for local calls have been increased by about 50 per cent, to give room for a proportionate reduction in international call rates, which dropped from N99.00 to N45.00 per minute to most overseas destinations.
The NCC is committed to ensuring that the consumers are satisfied, that the operators are encouraged to continue roll-out and that government policy of ensuring access to all are achieved.

This must be the biggest leap in communications history(Or at the least in the Top 3) A jump from 5Million to 38 million in less than 5 years, with 50 Million being the target for the end of the year :cheers2: At this rate Every Nigerian will have at least two Cell phones

All-Share-Index rises at NSE by 2.73%

Tuesday, Apr 24, 2007

The All-share Index of the Nigerian Stock Exchange (NSE) roses by 2.73 per cent to close on Thursday at an historic highest value of 44,643.40.

Analysts on the floor of the Exchange attributed the sudden increase to the banking subsector’s activity in recent times, which they said is the result of the consolidation exercise in the sector.

A Stock broker who spoke