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The Nigeria Labour Congress (NLC) has said it would mobilise its members against the decision of the Senate seeking the removal of the national minimum wage from the Exclusive List because of its potential to create a pool of the working poor and cause slave labour in Nigeria.
The Labour center in a communiqué issued at its National Executive Council (NEC), yesterday and signed by its President, Comrade Abdulwahed Omar, and Acting General Secretary, Comrade Chris Uyot, condemned in strong terms the inability/refusal of the government to reach an amicable resolution of its dispute with the Academic Union of Universities (ASUU).
Part of the Communiqué read: ”The Congress is set to mobilise its members across the country against the decision of the Senate on the prescription of a national minimum wage on the Exclusive List, because of its potential to create a pool of the working poor, judicial nightware, slave labour , an environment for payment of arbitrary wages; destruction of the economy; major industrial unrest; and worsening national security situation”
He said the Congress will leave no stone unturned in resisting the Senate, adding that in spite of the overwhelming support of the Nigerian people, the Senate, against every grain of wisdom, removed Labour and the national minimum wage from the Exclusive List.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Nigeria’s unemployment situation is set to worsen, as the fate of about 10,000 workers in the Olokola Liquefied Natural Gas project, OKLNG, is currently on the line, following the pulling out of Chevron and Shell, which threatens the continuation of the project.
The workers, currently employed in the construction phase of the project, risk being disengaged, as Chevron Nigeria Limited, CNL, Wednesday, confirmed its withdrawal from the OKLNG project, blaming it on the lack of progress on the project, eight years after its inception. Oil Installation
Vanguard, had, Friday, exclusively reported that Chevron and Shell had pulled out of the project, citing a number of factors, ranging from non-commitment on the part of the Federal Government to pursue the completion of the project and also the non-passage of the Petroleum Industry Bill, PIB.
Shell, as usual, is still playing a cat-and-mouse game refusing to confirm its pull out as Chevron did, thereby raising questions as to the reason for the secrecy.
Likewise, the word is mum at Nigerian National Petroleum Corporation, NNPC, the principal partner in the project, which had been informed on the oil majors decisions, and had over the years had seconded a lot of its staff to the OKLNG project.
However, after almost a month of taken the decision, Chevron, in a statement signed by its General Manager, Policy, Government & Public Affairs, Mr. Deji Haastrup, said that the company effectively pulled out of the project on July 31, 2013, adding that efforts over the last eight years to mature the project have not resulted in a final investment decision, FID.
The statement also confirmed that Shell pulled out of the OKLNG project, July 31, 2013. The Chairman/Managing Director, CNL, Mr. Andrew Fawthrop, said the withdrawal affords his company the opportunity to prioritise its investment portfolio.
He said, “The business decision to withdraw from OKLNG is based on a review of our investment portfolio, the lack of progress on the project and a reprioritisation of resources to focus on growing domestic gas supply.”
The Chevron statement also said that the NNPC was duly informed of its decision to withdraw, adding that the divestment process is being managed in accordance with the provisions of the Shareholders’ Agreement governing the project.
Chevron originally had 19.5 per cent equity in the project, but this increased to 22.74 per cent after the withdrawal of BG from the project.
The statement added, “The OKLNG Project Company was formed in 2007 by NNPC, BG, Chevron and Shell. BG and Shell withdrew from the project in June 2012 and July 2013 respectively. NNPC was duly informed of Chevron’s decision to withdraw and the divestment process is being managed in accordance with the provisions of the Shareholders’ Agreement governing the project.”
The LNG project The Olokola LNG project was originally designed to consist of a marine berth for offloading LNG, along with four LNG trains each with a 5.5 Million Tonnes Per Annum (MTPA) capacity.
The first phase of the construction was designed to complete two of the trains, and the second expected to complete the other two — resulting in a 22 mtpa capacity.
The OKLNG project was initiated in 2005, with the Nigerian National Petroleum Corporation, NNPC, as the major shareholders, with 46.75 per cent stake, BG — 14.25 per cent, Chevron — 19.5 per cent and Shell — 19.5 per cent. BG pulled out from the project in 2009, following which Chevron increased its stake to 22.74 per cent.
The Memorandum or Understanding, MoU and shareholders’ agreement for the company were signed by parties in 2005 and 2007 respectively, Final Investment Decision was billed for 2007, production and first shipment of LNG from OKLNG was scheduled to commence in 2009, while phase 2 of the project was scheduled to conclude in 2010.
A source at OKLNG said the project, which is the most cost-effective LNG project in Nigeria, if allowed to come on stream, would have served as a major contributor to Nigeria’s economy development.
According to the source, a number of projects already undertaken at the site, risk being abandoned, such as the pioneer camp among others.
The source said, “The project was going ahead of schedule, all of a sudden, funding ceased.” The source noted that the plan of the project was for gas producers/owners to send natural gas to the facility where it would be converted to LNG for a fee and pumped into owner ships for sale.
The source said the frustration and eventual pulling out of the oil majors from the project stems from the fact that many years after the memorandum of understanding (MoU) was signed, nothing concrete has been recorded. “Presently, all the expatriates have left; the only people remaining are NNPC’s staff on secondment to the company and a few contract staff,” the source said.
The Olokola LNG project was initiated in 2005, with the Nigerian National Petroleum Corporation, NNPC, as the major shareholder, with 46.75 per cent stake, while BG Group, which had earlier withdrawn, has 14.25 per cent.
The source said the project, which is the most cost-effective LNG project in Nigeria, if allowed to come on stream, would have served as a major contributor to Nigeria’s economy development.
According to the source, a number of projects already undertaken at the site, risk being abandoned, such as the pioneer camp among others.
The source said, “The project was going ahead of schedule, all of a sudden, funding ceased.” The Olokola Liquefied Natural Gas project is located between Ogun and Ondo States. The project was designed to develop an LNG and Natural Gas Liquids facility in the Olokola area of Ogun state. The launch project was 2 X 6.3 million tonnes per year of LNG and ultimate capacity is up to 35 million tonnes per year. LPG production was projected at 30,000 barrels per day, while up to 15,000 barrels per day of condensate was projected to be produced.
The OKLNG project has among its benefits; capacity building in local community for ongoing business relationship with OKLNG; generate about two million tonnes per annum of Liquefied Petroleum Gas, LPG, close to the Lagos market, minimize NNPC funding requirements and improve Nigeria’s global LNG position and revenue from gas exports, among others.
Controversies The OKLNG has been mired in controversies since the project was initiated under former President Olusegun Obasanjo’s regime. Niger Delta militants, under the aegis of Joint Revolutionary Council, had in 2006, threatened to sabotage the OKLNG, if its FID was taken ahead of the Brass LNG project. The Joint Revolutionary Council was made up of the Dokubo Asari-led Niger Delta Peoples Volunteer Force (NDPVF), Movement for the Emancipation of the Niger Delta (MEND), and the Martyrs Brigade.
The groups had called for the cancellation of the OKLNG project and the termination of the MoU, or face the “fiercest showdown” yet by their forces. The group issued threats at the foreign oil companies involved in the project, Chevron and Shell, as well as Nigeria’s state-owned firm NNPC. The group also said that it would punish Nigerian’s who “collaborate” on the project.
The militants said that they would stop at nothing to make sure the project fails. They said, “Let us state in very clear terms, that we will destroy this project. We will sabotage the pipelines. We will ambush and attack its workers. We will take hostages. We will sabotage the project’s logistics and vandalizes every facility we set our eyes on.
In a statement signed by Cynthia Whyte, the Group said, “We will like to state in very clear terms that Shell and Chevron will not go unpunished. For more than 40 years, our people have been subject to the worst levels of environmental degradation and despoliation. We have borne acid rains and have stomached putrid water.
Farmlands have been destroyed. Seas have been polluted. Vegetations have been devastated. Yet the infidel partnership of NNPC, Shell, and Chevron still seek to short change our people and deprive them of that which should be given them.
“If the LNG plant will be built in Olokola, then let them get their gas from Olokola or its environs, Any pipeline from any of our communities would be destroyed, site workers found aiding and abetting the laying of pipes will be taken hostage or taken out. Every shipment with facilities meant for Olokola project will be destroyed.”
Also, the Department of Petroleum Resources, DPR, had in 2008, questioned the siting of the project on the Free Trade Zone.
It also questioned the legality of the company, directing the promoters to incorporate the project with the Nigerian Corporate Affairs Commission, CAC, or face serious sanctions, such as denial of operating license.
Mr. Billy Agha, the then Head, Gas Department of DPR, had stated that it was not right to locate a Nigerian business such as OK LNG on a free trade zone, since such a location was initiated to woo foreign investors into the country.
According to him, the government is in a battle with the management of OK LNG over its establishment on the Free Trade Zone, adding, however, that it is 100 per cent in support of the project.
He said, “According to the Free Trade Zone Act, if you are in the zone, it means you are a foreign firm and not a Nigerian company, this is why it is compulsory for them to register with CAC and I have told them they should either comply or forget it.”
“I know the project would boost Nigeria’s LNG production but what I am saying is that they should do the right thing first and register with the CAC, but they come to me and say they have incorporated it in the free trade zone, then I told them I was sorry if you claimed to have incorporated it in the zone, therefore, you cannot register with CAC, then you will not be dealing with DPR because I will not issue you an operating license.”
In August 2006, Chevron awarded the Front End Engineering Design, FEED work to a joint venture between Foster Wheeler and National Engineering & Technical Company (NETCO) for the gas wellhead platforms and pipelines portion of Chevron’s OK Gas Supply Project. The offshore terminal will collect gas from offshore fields and transport up to 2.3billion cubic feet/day Bcf/d of natural gas to the OK LNG plant.
The first shipment of LNG from Olokola LNG was expected in 2009 (Phase 1)., while the Phase 2 was scheduled for 2010. But none of these came to pass as the FID on the project was never taken.
Oil rise to 18month high above $117 Meanwhile, oil rose more than $2 a barrel on Wednesday, with Brent pushing above $117 and the U.S. benchmark soaring to its highest in over two years, amid worries a possible military strike by Western powers against Syria could hit Middle Eastern crude supply.
The United States and its allies have told the Syrian opposition to expect military action soon against President Bashar al-Assad’s forces, which were blamed for last week’s chemical weapons attacks.
“Assuming they take action, it’s likely for the risk premium to be built in for quite a while,” Ric Spooner, chief market analyst at CMC Markets in Sydney said, referring to oil prices.
Brent had jumped to a 6-month high of $117.23 a barrel while U.S. crude hit an intraday high of $111.75 — its loftiest since May 2011.
Oil prices have gained $5-$6 so far this week on worries tensions in Syria could spill over and destabilize the Middle East, which pumps a third of the world’s oil. The risk premium could vary from $10 to $25, Spooner said, adding that if the situation worsens Brent could rise to $119-$126 while U.S. crude could move toward $114-$115. A prolonged outage at several Libyan oilfields has also underpinned prices.
Libya’s largest western oilfields closed when an armed group shut down the pipeline linking them to ports, its deputy oil minister said on Tuesday.
Total Libyan oil output would be just under 200,000 barrels per day from pre-war levels of around 1.6 million bpd, according to a Reuters estimate, the worst disruption since the civil war in 2011.
“While the events in Syria have little impact on oil prices in isolation, the potential impacts flowing through to the rest of the region are high while sectarian violence continues in Iraq and supplies from Nigeria, Libya and Sudan continue to disappoint,” ANZ analysts said in a note.
Oil could also get another boost if the U.S. Federal Reserve decides to start paring back its bond purchases later than the anticipated September timeline.
“Another potential outcome from Syria is that if it does deteriorate, it could make the Fed less likely to act in September,” CMC’s Spooner said. “It’s another general supportive factor for commodities, including oil.”
Investors are now waiting for weekly oil inventories data from the United States later in the day for clues on demand in the world’s top consumer.
U.S. crude stocks rose last week while gasoline inventories declined and distillate stocks increased, data from industry group the American Petroleum Institute showed – See more at: http://www.vanguardngr.com/2013/08/10000-jobs-at-risk-as-chevron-shell-pull-out-from-oklng/#sthash.m2f9z3Rc.dpuf
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Last week, fast-food workers around the United States yet again walked off the job to protest their low pay and demand a wage hike to $15 an hour, about double what many of them earn today. In doing so, they added another symbolic chapter to an eight-month-old campaign of one-day strikes that, so far, has yielded lots of news coverage, but not much in terms of tangible results.
So there's a certain irony that in Australia, where the minimum wage for full-time adult workers already comes out to about $14.50 an hour, McDonald's staffers were busy scoring an actual raise. On July 24, the country's Fair Work Commission approved a new labor agreement between the company and its employees guaranteeing them up to a 15 percent pay increase by 2017.
And here's the kicker: Many Australian McDonald's workers were already making more than the minimum to begin with.
The land down under is, of course, not the only high-wage country in the world where McDonald's does lucrative business. The company actually earns more revenue out of Europe than than it does from the United States. France, with its roughly $12.00 hourly minimum, has more than 1,200 locations. (Australia has about 900).
So how exactly do McDonald's and other chains manage to turn a profit abroad while paying an hourly wage their American workers can only fantasize about while picketing? Part of the answer, as you might expect, boils down to higher prices. Academic estimates have suggested that, worldwide, worker pay accounts for at least 45 percent of a Big Mac's cost. In the United States, industry analysts tend to peg the figure a bit lower — labor might make up anywhere from about a quarter of all expenses at your average franchise to about a third.* But generally speaking, in countries where pay is higher, so is the cost of two all beef patties, as shown in the chart below by Princeton economist Orley Ashenfelter. Note Western Europe way up there in the upper-right hand corner, with its high McWages and high Big Mac prices.
That said, not every extra dollar of worker compensation seems to get passed onto the consumer. Again, take Australia. According to the The Economist, Aussies have paid anywhere from 6 cents to 70 cents extra for their Big Macs compared to Americans over the past two years, a 1 percent to 17 percent premium. If you were to simply double the cost of labor at your average U.S. Mickey D's and tack it onto the price of a sandwich, you'd expect customers to be paying at least a dollar more.
Why don't they?
To start, some Australians actually make less than the adult minimum wage. The country allows lower pay for teenagers, and the labor deal McDonald's struck with its employees currently pays 16-year-olds roughly US$8-an-hour, not altogether different from what they'd make in the states. In an email, Greg Bamber, a professor at Australia's Monash University who has studied labor relations in the country's fast food industry, told me that as a result, McDonald's relies heavily on young workers in Australia. It's a specific quirk of the country's wage system. But it goes to show that even in generally high-pay countries, restaurants try to save on labor where they can.
It's also possible that McDonald's keeps its prices down overseas by squeezing more productivity out of its workers. Researchers studying the impact of minimum wage increases on American fast food chains in the Deep South have found that while restaurants mostly cope by their raising prices, they also respond by handing their employees more responsibility. It stands to reason that in places like Europe and Australia, managers have found ways to get more mileage out of their staff as well.
Or if not, they've at least managed to replace a few of them with computers. As Michael Schaefer, an analyst with Euromonitor International, told me, fast food franchises in Europe have been some of the earliest adopters of touchscreen kiosks that let customers order without a cashier. As always, the peril of making employees more expensive is that machines become cheaper in comparison.
Finally, McDonald's has also helped its bottom line abroad by experimenting with higher margin menu items while trying to court more affluent customers. Way back in 1993, for instance, Australia became home to the first McCafe coffee shops, which sell highly profitable espresso drinks. During the last decade, meanwhile, the company gave its European restaurants a designer make-over and began offering more localized menus meant to draw a higher spending crowd.
So if President Obama waved a magic wand tomorrow and raised the minimum wage to $10 or $15, does this all mean that U.S. fast food chains would be able to cope? "Were that to happen overnight, it would be a hugely traumatic process," Schaefer told me. After all, virtually every fast food franchise in the country would have to rethink its business model as their profits evaporated. But as the international market shows, the models are out there. It would certainly mean more expensive burgers. It would almost definitely mean fewer workers, as restaurants found ways to streamline their staffs, either through better management or technology. And it might mean fewer chains catering to the bottom of the market.
But in some people's eyes, it might also be worth it.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
(Codewit.com) – As part of strategies to diversify the nation’s export base as well create more value for its crude oil, foremost industrialist and President/Chief Executive of the Dangote Group, Alhaji Aliko Dangote, has tasked government to begin the production of petroleum products for export.
He made the call in a keynote address titled: ‘Nigeria Beyond Oil’ which he presented at the 9th All Nigerian Editors’ Conference held in Asaba, Delta State at the weekend. Dangote, who was represented by his Chief of Staff, Engineer Joseph Makoju, said that with the discovery of crude oil in many African nations, fall of oil prices in the international market, and exploration of alternative sources of energy such as shale oil, the nation should seek ways of enhancing its economic sustainability.
One of the strategies he identified is refining and production of diverse petroleum products for export. He stated with the creation of industries dedicated to the production of petroleum based products, there should be conscious effort by government and stakeholders to create a demand for these products in the local economy.
He explained that Nigeria has a large population which translates to huge market if harnessed, adding that countries like China and India relied on their population to create a huge domestic market for products. Dangote also called on government to use the nation’s abundant petroleum resources to drive the industrialization of the economy, adding that it is only through industrialization that value is added to raw materials.
He said: “We believe industrialization is the key to Nigeria’s economic prosperity and we also believe Nigerians should drive the industrialization process. As a practical demonstration of our business philosophy, we have massive investments in the real sector both within and outside the country. Currently, we have over 13 subsidiaries in Nigeria and operations in 14 other African countries.”
Following the success of the Dangote Group, he said foreign investors now see Nigeria as a beautiful bride that should be courted. To achieve her goal of industrialization, he said Nigeria needs massive infrastructural upgrade, effective regulation and legislation and value re-orientation. He also harped on the need to invest in skills acquisition programmes with more emphasis on research and technology.
He identified the absence of highly trained and experienced human capital to drive growth as one of the major challenges to industrial growth in Nigeria, adding that the Dangote Academy of Learning and Development was set up in 2010 to address this shortcoming.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
THE Federal Ministry of Agriculture and Rural Development, yesterday sought for closer collaboration with the Nigeria Computer Science, NCS, to transform the sector.
The call was made by the Permanent Secretary in the Ministry, Mrs. Ibukun Odusote while delivering a paper titled, ‘Opportunities for Investment in Nigeria’s Agriculture’, at the breakfast meeting of the College of Fellows of the Nigeria Computer Science (NCS) in Iloko-Ijesha, Osun State.
Odusote said the support of NCS would further boost the achievement and success recorded in agricultural sector under the present administration, especially in digital management of the new silos built by the federal government across the country.
She stated that such support from NCS will add more value to the performance and productivity of the silos’ management and staff in measuring content, quantity and output of grains contained in each silo, and enabling the ministry to efficiently manage and deploy the contents to the people for consumption.
Odusote said: “Our partnership with Nigeria Computer Science ,NCS, will enable us to achieve a better and faster result, that will enable us eliminate corruption in our system and empower a whole new generation of farmers who were now seduced into farming”.
”We need to continuously update the data and it is Information Technology, IT, that can help us to update and manage the data at the newly built silos.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ABUJA—THE Senate said, Tuesday, it would soon release to the public accurate figure of its expenditure, saying it has nothing to hide.
This came on a day the House of Representatives spokesman, Zakari Mohammed, refuted claims that lawmakers in the National Assembly were the highest paid lawmakers in the world.
Chairman, Senate Committee on Appropriation, Senator Ahmad Maccido,PDP, Sokoto North, said he would go through the records and come up with authentic figure of amounts released and expended so far.
Maccido,who responded through a short text message to Vanguard, in Abuja, on the latter’s question seeking his reaction to Monday’s statement by former Minister of Education, Mrs. Oby Ezekwesili that Nigeria had so far spent more than N1 trillion on the maintenance of National Assembly in the past eight years, said the Senate was not prepared to join issues with her.
He said the upper legislative chamber had nothing to hide, saying it had been transparent in the course of its functions.
Maccido also insisted that appropriate figure on money released to the Senate would in no time be made available.
He said: “It needs some time to go through records and come up with accurate figure and at the moment I am not in Abuja.”
The former Minister of Education had stirred the hornet’s nest with her allegation that a whopping N1 trillion had not only been spent on the maintenance of members of the National Assembly but also N9.08 billion on maintenance of presidential fleet.
Mrs Ezekwesili, who is the immediate past Vice-President of the World Bank (Africa), had equally decried the budgetary allocation system in the country, which gave more to recurrent expenditure than capital projects.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
At the just concluded second quarter industry forum on Mobile Number Portability, MNP, organized by the ICT Publishers Alliance held in Lagos recently, telcos under the umbrella of the Association of Telecommunications Companies of Nigeria , (ATCON) disagreed with the regulator, NCC, over options of sanctions for errant mobile service providers under the MPN scheme.
MNP allows subscribers to switch from one network to another in search of better telecoms service, while still retaining their original mobile numbers.
Speaking at the forum , ATCON President, Mr. Lanre Ajayi, told the gathering that saction was not the best for ailing operators under the MNP. He argued that service providers would have used the money placed on them as sanctions to build network capacity in the country.
“Sanctions have not worked for the sector. It is not the way to go because it involved taking the money that should be invested in the networks to give to the regulator. It is the bail out option. Iam not in support of sanctions as an option. The operators could have used the money to build capacity in the country” Ajayi said.
Disagreeing with ATCON boss, the Special Assistant (Technical) to the Executive Vice-Chairman, NCC, Mr. Edoyemi Ogoh told the audience sanction was only a tool used as deterrent to others thereby restoring sanity in the system.
“There is always sanctions in any system. NCC uses sanctions to restore sanity in the system. It is always the last option after several warnings and reminders. When all avenues have been explored by the NCC to correct the operators and they still do not want to change, then we sanction. This will eventually force them to do what is right,” Ogoh who represented NCC EVC Dr. Eugene Juwah said..
Also speaking at the forum, the Chief Operating Officer, Interconnect Clearing House Limited, Mr. Uche Onwudiwe, while agreeing that the number of subscribers porting across the networks were on the rise noted that there was need to review the 90-day timeline to 30 days.
Although NCC introduced the porting scheme with much enthusiasm, it appears Nigerians are not so excited about it, as only 22, 000 subscribers have successfully ported their numbers in four months, of the 114 million active subscribers across all networks.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
International Finance Corporation, IFC said it has invested 25 per cent, about N60 billion of its 2012 total investment in Nigeria on infrastructure.
Vice President, Sub-Saharan Africa, Latin America and The Caribbean, Jean Philippe Prosper stated this in Lagos while interacting with news men during his visit to Nigeria.
He said that IFC has invested a total of $1.5bn in Nigeria within the organisations’s last fiscal year that ended in June, 2013.
According to him, the infrastructure and natural resources sector got 25 per cent, about N60bn, while manufacturing and agribusiness got 25 per cent. The financial markets got N120bn about 50 per cent of the total investments.
“We have significantly increased our volume of activities both in terms of investments and advisory services. On the investment front, we have in the past fiscal year, which is from July 1st 2012 to June 30, 2013, invested about $1.5bn in Nigeria which represents close to 30 per cent of what we have done in Africa this year. That was about 50 per cent in financial markets, 25 per cent on infrastructure and natural resources and the other 25 per cent in manufacturing and agribusinesses,” he said.
He added that, “Over all in Africa, we have significantly increased our activities in infrastructure development particularly in power and transport, because those are the key areas of need in Africa. In Nigeria, our major focus is on power and we as a World Bank Group are working with the government and others and we have developed a joint World Bank approach on what we call Energy Business Plan.”
He further noted that Nigeria’s economy is providing veritable opportunities, presenting huge prospects for growth and IFC will continue to do more businesses in Nigeria.
“In terms of doing business in Nigeria, we would have not been able to increase our volume of business if there were no opportunities. Clearly there are opportunities, it is a vibrant economy as the economy has grown to over 7 per cent in the last three years and it is expected to continue to grow even in a relatively faster pace. Of course there are issues but what is important to us is that we are seeing positive trends in the economy and we are excited about the opportunity for us to continue to do more business,” he said.
On the $1bn bonds that IFC plans to issue in Nigeria and has approved full authorisation to commence the process, Prosper said, it was to boost investors’ confidence in the financial market and also to make long term loan available to local companies in the country.
“The $1bn bond that we want to issue would have two important effects. First, there will be huge confidence. All the international investors will see that IFC is willing to take the risks on Nigeria, because at the end of the day we are issuing it in naira. Also, that investment will help us to issue long term financial instrument to local companies. This is because once we get that money, we will use it to lend to companies that need naira, we will give more to local companies in long term project of up to fifteen years which commercial banks cannot give because they don’t have such instruments,” he explained.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ABUJA—DESPITE claims that the nation’s 24 banks are strong and posting huge profit, fraudulent practises have continued among operators with no fewer than 3, 380 cases involving N17. 97 billion recorded last year.
According to the Nigeria Deposit Insurance Corporation, NDIC, annual report for 2012, this has resulted in a loss of about N4. 52 billion.
The report, released in Abuja yesterday, also said only 10 banks were rated sound in the year under review.
“The DMBs reported 3,380 fraud cases involving the sum of N17.97 billion with expected/contingent loss of about N4.52 billion in 2012.
“The expected/contingent loss had increased by N455 million (10.9 percent) as against N4.072 billion reported in 2011,” NDIC said.
The corporation said, however, that the amount involved in the fraud cases decreased by 36.4 percent from N28.40 billion in 2011 to N18.04 billion in 2012.
It said DMBs posted a combined profit before tax of N525 billion, adding that last year’s performance was an indication that the banks were strong and well capitalised.
“The banking industry was adequately capitalised in the year under review with capital adequacy ratio of 18.07 percent compared to 17.71 percent recorded in 2011. All the DMBs also met the minimum liquidity threshold of 30 percent. The asset quality significantly improved during the year as the ratio of non-performing loans to total loans decreased from 4.95 percent in 2011 to 3.51 percent in 2012.
“The improvement in the banking industry’s asset quality was due to the purchase of the non-performing loans of DMBs by AMCON and the enhanced credit risk management by DMBs. The overall effect was an improvement in the industry’s profit before tax which increased from a loss of N6.71 billion in 2011 to a profit of N525.34 billion in 2012,” it said.
The report said in terms of level of soundness, 10 banks were rated sound, nine satisfactory, while one bank was rated marginal, adding that “the industry could be considered to be relatively stable in 2012.
It insisted that “there was no unsound bank in the banking industry as at December 31, 2012.”
The corporation said it continued to pay depositors of banks-in-liquidation during the year with cumulative payment of N6.82 billion to 528,212 insured depositors of closed banks by December 31, 2012 as against N6.68 billion paid to 527,942 insured depositors as at December 31, 2011.
The NDIC said the feat was achieved in spite of the long closure of the banks and the unwillingness of many depositors to file for their claims.
Similarly, it said a total sum of N2.505 billion was paid to 75,322 verified depositors of 95 of 103 closed MFBs during the year, against the sum of N2.249 billion paid to 72,062 verified depositors in 2011.
“Also, the sum of N73.58 billion had been paid as liquidation dividend to 250,209 depositors of DMBs as at December 31, 2012. It is pertinent to indicate that a total of 14 out of the 34 banks-in-liquidation prior to 2006 had declared a final dividend of 100 percent of their total deposits, indicating that all depositors of the affected closed banks had fully recovered their deposits,” the corporation said.
The NDIC said the banking industry recorded significant improvement in its financial condition and performance in 2012 as revealed by all major financial indicators, compared to the previous year.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The strategies and dynamic approaches needed to succeed in the competitive market world has made internet marketing a kind of lifeline for businesses that may not have to toil anymore to break even in their prospective endeavours.
However, an issue is how proactive the businesses can be in adopting digital marketing, to create that constant innovation required to seal off deals.
These are the realisations that spurred technology expert and CEO WSI-Axon West Africa, Chief Edirin Abamwa to pitch his tent in Lagos Nigeria with the intention to provide innovative internet marketing solutions for clients worldwide.
Abamwa said that having been involved in developing and executing results-oriented digital marketing strategies that are custom-tailored to new technologies, Nigeria was a better destination giving the number of new businesses sprouting up by the day.
Speaking with Vanguard Hi-Tech, he explained the benefits and leverages a business could derive from engaging digital marketing as a strategy.
Business edge of digital marketing
“Engaging in digital marketing gives business edge. For instance when a business signs to a digital marketing company like ours which covers Nigeria, South Africa and Ghana, via Google, yahoo and other platforms, what it means is that any online product campaign it runs, would be accessed by internet users in those places.
The catch is that the number of yahoo users, which actually is enormous, will get the company’s messages and when that happens, the company is on the march to the top. Remember that as many as possible that stumble on the online promos and become interested are automatically the company’s customers, despite distance and regardless that nobody physically talked to them”.
Another platform that digital marketing also facilitates, include the opportunity of holding online meetings and discussions with unit heads and all marketers. Considering that most organizations don’t have the means to converse internally, digital marketing gives that opportunity of closeness and prompt contact between unit heads and marketers by the intranet that comes with the portfolio.
Planning for digital marketing
However, digital marketing is not a tea party and Abamwa admitted that to invest in digital marketing takes a lot of preparation. “We try as much as we can to let people understand that to get the edge in digital marketing; one however, has to start planning ahead, between six months and one year at the minimum. Besides this planning, website is another very important aspect of digital marketing. A poor website kills the prospects of the strategy while a well designed website draws the benefits closer”
Way forward in a cashless society
If there is a time to take digital marketing seriously, it is now when every transaction is going cashless. “ Nigerian businesses for instance has no choice in this. Today nobody exchanges cash. It’s a cashless society we are trying to entrench and people do their purchases online these days. So how can a business that is not online survive? If Nigeria businesses do not move as the world is moving, very soon it will find it impossible to do business with the rest of the world. So it is inevitable. This is the way the world is moving. However, the argument is not whether the digital media will replace conventional media but we should develop the sense of seeing them as two sides of a coin that complement each other.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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