FG Decries CCECC’s Slow Pace Of Work On Port Harcourt-Maiduguri Railway

The Minister of Transportation, Sen. Saidu Alkali, has expressed disappointment over the slow pace of work on the reconstruction of the Eastern Railway Corridor by the Chinese Civil Engineering Construction Company (CCECC) Ltd. The minister made his feelings known at the weekend when he inspected the progress of work done on the reconstruction of Eastern railway corridor to Port-Harcourt, Rivers State. Alkali expressed sadness that between Port-Harcourt and Aba Section, only 47 per cent completion stage had been achieved, instead of achieving 47 per cent completion of the entire stretch from Port-Harcourt to Maiduguri. “If you cannot complete Port-Harcourt to Aba which is 63km in 12 months, how would you be able to complete over 2000km in 36 months?” Alkali expressed dismay on the use of manual alignment processes by the CCECC in laying the track in the 21st Century. According to him, in a project that is 85 per cent funded by the Chinese and 15 per cent by the Federal Government, it is only the 15 per cent fund provision by the Federal Government that financed the project so far. The minister said that he would go back to the ministry to look at what was doable within the ambit of the law and that whatever the law provided on the issues observed, he would enforce it. Alkali however, identified one of the striking benefits to be the linking up of the two Sea Ports in Port-Harcourt to Maiduguri as well as promotion of regional trading at a highly reduced cost. The minister assured the people of the zone that by the time the passenger train services commenced, it would go a long way in cushioning the effect of the petroleum subsidy removal on Nigerians that would make use of the train services. Briefing the Minister and his delegation, representative of the CCECC, Mr C. Ching, promised that the first section of the project which was from Port-Harcourt to Aba, would be delivered by December, 2023. The CCECC assured the minister that enough materials were on ground to meet the target date, adding that the project with a special kind of bolts and nuts that were ‘anti-theft’ had been introduced to make vandalism difficult. Onovo said the Consultant handling the project, Khairi and Jamub Global Services Limited as well as the Permanent Secretary, Federal Ministry of Transportation, Dr Magdalene Ajani, Directors from the Ministry, the Managing Director, NRC, Fidet Okhiria and others attended the inspection. On March 10, 2021, the Federal Government began the $3 billion repair and reconstruction of the 1,443 kilometres Eastern Railway Line from Port Harcourt to Maiduguri. The railway, when completed, will link Rivers, Abia, Imo, Enugu, Benue, Nasarawa, Plateau, Kaduna, Bauchi, Gombe, Yobe and Borno States.

Increased Investment In Women Will Improve Nigeria’s GDP -UN

UN Women Regional Director for East Africa, West, and Central Africa, Maxime Houinato, has said that in order to bridge the multi-sectoral gender gaps in Nigeria and improve the standard of living for women and girls, there is need for the federal government to commit specific percent of national budgets and development funds to interventions that address gender disparity in Nigeria. Maxime Houinato is in Nigeria for an executive visit. In a press briefing on Friday at the UN House in Abuja, Houinato said that increased allocation of specific budget lines to address gender disparity in Nigeria would empower more women.    “Women are at the heart of human capital for economic development in any nation – health, education, agriculture, and business. Gender disparity and the suffering of women are having a detrimental impact on the building of that human capital which is at the centre of productivity and development,” Houinato said.   The UN Women regional director met with various stakeholders in Lagos and Abuja including the Minister of Budget and National Planning, Sen. Abubakar Atiku Bagudu. In Lagos, a $25million GBV fund was launched as part of a contribution from Nigeria’s private sector. The fund will serve to fund gender responsive interventions that will curb violence against women and girls and enhance women’s empowerment. He said, “I was rushed to Lagos by my team the moment I landed in Abuja to look at a couple of initiatives. One of them is the establishment by the private sector with the technical support of the UN Women of a $25 million GBV Fund. This is the first time in Africa that the private sector is coming together to take up such issues as GBV and to put hard currency on the table.   “When I met the minister of Budget, he really appreciated that contribution and that the government might consider a tax break for private companies that decide to put money on the table to address gender equality issues that have always been the contribution of the government to the private sector initiative. “I was also thrilled to meet with the Nigeria Exchange group that has decided to start working with UN Women to launch in 2025 the first gender bond in Nigeria with contribution from various investors into gathering resources to address the lack of opportunity that women suffer from. “Those initiatives are interesting because so far, the government has been putting resources for critical elements of gender inequality. Now we believe more and more the private sector is getting interested, the reason being that gender based violence, gender inequality that was placed in the social sector has now moved to the economic sector where we recognize that inequality is crippling the economy.” In her remarks, UN Women Representative to Nigeria and ECOWAS, Beatrice Eyong, stated that the financial implication of GBV is enormous and reiterated that if the prevalence of violence against women and girls reduces, family income and earnings will improve and so will the economy of the society at large.

Professional Accountants Have Contributed To Nigeria’s Economic Woes – Expert

A governance expert, public affairs analyst and Chairman of the Board, Amaka Chiwuike-Uba Foundation (ACUF), Dr Chiwuike Uba, has revealed that accountants have contributed to the economic woes of Nigeria in the last few years as a result of their professional silence and inactions. Speaking on Thursday in Abuja during the 28th annual conference of the Association of National Accountants of Nigeria (ANAN), on ‘Role of Professional Accountants in Economic Reforms’, Uba, a lead presenter, said some accountants have had opportunities to support economic reforms of successive administrations, but ended up corrupting the system. The ACUF boss said poor management of debt and guarantees have created unnecessarily high debt service costs and could cause significant fiscal risks. Uba also revealed that professional accountants play a crucial role in economic reforms by providing financial expertise and advice to various stakeholders, including governments, businesses and organisations. He said: “Professional accountants’ actions and inactions might have contributed to Nigeria’s economic conundrum. I am expressing this opinion because some professional accountants, who had the opportunity to support economic reforms in the past, ended up corrupting and messing up the system even more.  “In some instances, professional accountants, including one of the former Accountants General of the Federation, were involved in a corruption case that amounted to billions of naira. “Currently, over 90 of Nigeria’s revenue is being spent on payment of interest on debt. Poor debt management procedures can lead to increased costs of borrowing, poor decision making and possible default on debt repayment with associated consequences. “They equally play a pivotal role in promoting financial stability, transparency and sustainable economic growth. Professional accountants should, therefore, among others, play these roles: record, report and continuously monitor debt and guarantees and, based on monitoring feedback, provide expert advice. They should regularly monitor the ratio of average monthly debt service deducted from revenue. “Audit reports need to include more forward-looking, qualitative and non-financial data in the field of financial reporting with more information on risks. Timely reporting of audit findings to generate increased value for stakeholders and enable real-time decision-making is key. The idea of producing audit reports in arrears needs to be corrected.  “The last audited financial statements that are publicly available on the website of the Office of the Auditor General were the 2019 accounts. Incidentally, the account was published on August 18, 2021, which was 19 months, 18 days from the end of the financial year.” Dr Uba stressed the need for increased communication of financial statements and auditor’s reports through the publication of the reports for public access, adding that management letters from public companies should also be made available more widely beyond sharing it with the audit committee. “Performance and accountability have become vital elements in the governance framework. Improving performance and accountability with an eye on delivering more appropriate, efficient and effective public service is the hallmark of good governance. The ability of professional accountants to defend or account for performance according to some ethical framework is part of the accountability framework. “Audits, investigations and advisory services are required to reduce risk, improve transparency and accountability, and maintain the public trust. To satisfy this key element needed to achieve the objectives of economic reforms, professional accountants engaged in auditing should carry out Value for Money (VFM) auditing by confirming whether proper arrangements were in place to secure economy, efficiency and effectiveness in the use of public resources,” he added.

CBN Formally Confirms Emefiele’s Resignation As Cardoso Assumes Duty

The Acting Governor of Central Bank of Nigeria (CBN), Dr. Olayemi Michael Cardoso, on Friday, formally assumed duty pending his confirmation by the Senate. This is as the Central Bank officially confirmed the resignation of former CBN Governor, Godwin Emefiele. President Bola Ahmed Tinubu, recently appointed Cardoso, and other Deputy Governors.    This follows the resignation of Mr. Godwin Emefiele as Governor of the Central Bank of Nigeria (CBN). A statement by the Director, Corporate Communications, Dr. Isa AbdulMumin which was made available to journalists on Friday in Abuja, added that the Deputy-Governors-Designate have also assumed duties in acting capacities, sequel to the formal resignation of former Deputy Governors, Mr. Folashodun Shonubi, Mrs. Aishah Ahmad, Mr. Edward Lametek Adamu, and Dr. Kingsley Obiora. Dr. Cardoso and his colleagues subscribed to the relevant oaths of office at a brief ceremony held at the Bank’s Head Office in Abuja, on Friday and have since settled down to the task of administering monetary and financial sector policies of the Federal Government. An Economic and Development Policy Advisor, Financial Sector Leader, former Chairman Citi Nigeria and Commissioner for Economic Planning and Budget in Lagos, Cardoso brings over three decades of managerial experience on board. He is an alumnus of Aston University, Birmingham, United Kingdom, where he studied managerial and administrative studies. He also holds a Master’s degree in Public Administration from the Harvard Kennedy School, United States of America. It would be recalled that Dr. Cardoso and his colleagues were appointed by President Bola Tinubu to their respective positions at the Bank on September 15, 2023, subject to their confirmation by the Senate. Meanwhile, The Central Bank of Nigeria (CBN) has confirmed the resignation of Mr Godwin Emefiele as its governor, three months after being suspended from office by President Bola Tinubu.

Nigeria’s Impressive $20.1bn Tops Diaspora Remittances In Sub-Saharan Africa

Nigeria has emerged as the leader in Diaspora remittances within Sub-Saharan Africa for the year 2022, receiving an impressive $20.1 billion, representing 38 percent of the total remittance flow to the region. This figure surpasses that of other countries in the region, including Ghana (11.9 percent), Kenya (8.5 percent), Tanzania (25 percent), Uganda (17.3 percent), and Rwanda (21.2 percent). According to the World Bank, Nigeria played a pivotal role in contributing to the total remittance flow of an estimated $52.9 billion into Sub-Saharan Africa in 2022. The increase in remittances has provided significant support to several African nations facing various challenges such as food insecurity, supply chain disruptions, drought (particularly in the Horn of Africa), floods (in countries like Nigeria, Chad, Niger, Burkina Faso, Mali, and Cameroon), and debt-servicing difficulties. Taking a broader perspective, global remittance flows to low- and middle-income countries (LMICs) reached $647 billion. It is projected to experience a modest 1.4 percent increase, reaching $656 billion in 2023. Highlighting the significance of remittances, the World Bank emphasized that over the past year, remittances have become a major source of external finance for LMICs, surpassing foreign direct investment (FDI), official development assistance (ODA), and portfolio investment flows. The report also pointed out that in several countries, remittances have overtaken key exports as the primary source of foreign exchange earnings. For instance, in Kenya, remittances exceed the earnings from critical sectors such as tourism, tea, coffee, and horticulture. Other nations, including the Gambia, Lesotho, Comoros, and Cabo Verde, are also highly dependent on remittance receipts as a proportion of their GDP. However, the report highlighted that Sub-Saharan Africa continues to face the highest remittance costs globally. Sending $200 to African countries during 2022Q4 incurred an average cost of 8.0 percent, up from 7.8 percent in 2021Q4. Costs vary widely across the region, ranging from 2.1–4.0 percent in the lowest-cost corridors to a staggering 17–35 percent in the highest-cost corridors. Notably, banks impose the highest costs, underscoring the importance of cross-border mobile money transactions. Limited interoperability among telecom operators and money transfer operators in countries like Kenya, Rwanda, Tanzania, and Uganda poses challenges for such transactions. Furthermore, the growth of remittance flows into Africa is projected to slow down to 1.3 percent in 2023, compared to 6.1 percent in 2022. Factors contributing to this slowdown include risks related to capital outflows, foreign exchange controls, and sanctions. South Africa’s placement on the “gray list” by the Financial Action Task Force (FATF) is also noted. However, remittance flow growth is expected to rebound to 3.7 percent in 2024, according to the World Bank.

Come, Invest In Nigeria’s Bubbling Economy, Tinubu Tells US

President Bola Tinubu has invited the United States business community to come and invest in Nigeria’s ‘bubbling’ economy. Tinubu, who rang the closing bell at the Nasdaq Stock Market in New York on Wednesday, called on the United States business community to invest in Nigeria’s “bubbling market”. The President, who is attending the ongoing 78th session of the United Nations General Assembly, was accompanied to the bell ceremony by the President of the U.S.-Africa Business Center (USAfBC) at the U.S. Chamber of Commerce, Scott Eisner. The closing bell ceremony, held at the seven-storey tower of the Nasdaq headquarters in New York, signifies the end of a trading session. “I am happy to bring Nigeria to your doorsteps and honoured that we’re here today with a bubbling maket that will evolve the West African subregion,” Tinubu said. “The greatest economy is Nigeria. There is an immense opportunity in Nigeria that you can invest your money without fear. “We’ve removed a lot of the bottlenecks. We’ve cleared the subsidy that is corrupt and we’ve also retooled the exchange rate to a reliable, dependable one-figure floating of the exchange naira.”

Nigeria’s Equity Market Rescinds, Sheds N13bn

Trading activities on the floor of Nigerian Exchange on Wednesday closed on a negative note, declining by N13 billion, as investors embark on profit taking activities. Market capitalisation of listed equities declined by 0.03 per cent to N37.400 trillion from N37.413 trillion reported the previous day. The NGX All Share Index also depreciated by 23.50 basis points to 68335.72 points from 68359.22 points traded the previous day. A review of the investment showed that Sunu Assurance led gainers table, increasing by 10 percent to N0.88 per share, Berger Paint followed with a gain of 9.91 per cent to close at N12.75 per unit, Oando Plc added 9.77 per cent to close at N14.60 per share, Chams Plc up by 9.77 per cent to close at N1.40 per unit while MRS increased by 9.47 per cent to close at N104.00 per share. On the contrary, TranscoHotel topped losers’ chart, dropping by 10 per cent to close at N45.90 per share, IkejaHotel trailed with 9.93 per cent to close at N2.72 per share, Chi Plc fell by 7.41 per cent to close at N1.00, NSLTech dipped by 7.41 per cent to close at N0.25 per unit, while Glaxosmith sheds 7.38 per cent to close at N11.30 per unit. Volume of trades declined by 110.105 million, representing 16.27 per cent as investors traded 566.631 million shares valued at N5.386 billion in 8201 deals against 515.280 million shares worth N5.893 billion in 7659 deals. Transactions in the shares of Oando Plc led market activities with 109.996 million shares valued at N1.599 billion, Courtvellle Business Solutions followed with account of 66.002 million shares cost N32.569 million, Chams Plc traded 56.388 million shares valued at 56.388 million shares cost N81.804 million Japaul Gold traded 36.630 million shares valued at N35.248 million Access Corp traded 32.530 million shares valued at N563.305 million.

Nigeria Rakes In N5.2trn Revenue In 6 Months – RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed that the total sum of N5,244 trillion accrued into the Federation Account in the first 6 months of 2023. A press statement signed by the RMAFC Chairman, Mr. Mohammed Bello Shehu, and made available to journalists on Wednesday in Abuja, said the amount was captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.  According to Shehu, out of the total gross revenue inflows into the Federation Account, the sum of N627.301 billion was NNPCL JV Petroleum Profit Tax (PPT) due, captured and recorded by the FIRS, but utilized by the NNPCL for other FGN obligations. From the reports according to the statement, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N823,512,065,893.15 while the Federal Inland Revenue Service (FIRS) made a gross collection of N3,655,894,989,129.28 but remitted N3,028,593,066,702.93 retaining the difference as cost of collection.  The statement further disclosed that the Nigeria Customs Service (NCS) on its part remitted the sumN764,630,581,539.17. It however, added that the Nigerian National Petroleum Company Limited (NNPCL) did not remit any amount into the Federation Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021 as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided. Furthermore, the statement adds that the sum of N1,490,946,180,918.52 was realized as Value Added Tax (VAT) while the sum of N83,024,395,855.89 was realized from the Electronic Money Transfer Levy (EMTL) from which the sum of N3,320,975,834.23. Additionally, the FIRS received the sum of N82,031,796,937.01 and N3,320,975,834.23 as cost of collection on PPT/CIT and EMTL collections respectively in the period. The report revealed that on VAT, the FIRS/NCS together received the sum of N59, 593,164,213.83 as cost of collection within the period under review. Similarly, the report indicates that the sum of N16, 680,990,990.93 was realized from the solid minerals sector. The RMAFC Chair further revealed that total collections from VAT netted the sum of N1,387,328,862,898.16 whichwas shared to the 3-tiers of government in accordance with the approved VAT sharing formula.On the statutory allocations to the three tiers of government, Mr. Bello disclosed that the net sum of N3,069,594,889,669.74 (Three trillion, sixty-nine billion, five hundred and ninety-four million, eight hundred and eighty-nine thousand, six hundred and sixty-nine Naira, seventy four Kobowas shared to the 3-tiers of government in the period January to June, 2023. In the area of payment of cost of collection to Revenue Generating Agencies (RGAs) from the Federation Account component, the statement reveals that the NCS received the sum of N53,524,140,707.73 within the period under review. In the same vein, the statement adds that the sum of N48,105,698,218.35 was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). “This money was collected by NUPRC as penalty on gas flared. Revenues on gas flared penalty used to be Federation Account revenues before the PIA, 2021 which provided that such revenues should be paid 100% to the NMDPRA”. In a similar development, the RMAFC Chair described the statutory deductions which constituted 32.27% of the total gross inflow into the Federation Account in the six-month period as superfluous and constitute a drain on the Federation Account.

NCC Introduces New Format To Fixed Lines Numbering

*New Format Takes Effect January 2024 The Nigerian Communications Commission (NCC), in keeping with its responsibilities under the enabling law, the Nigerian Communications Act (NCA) 2003, to manage Nigeria’s numbering resources, has announced a new numbering format for fixed lines. According to a statement signed by Director, Public Affairs NCC Reuben Muoka, Nigeria’s Fixed-Lines Numbering Format has changed from eight digits to 10 digits by adding “02” prefix before the existing fixed number. It said that from January 1, 2024, the new numbering format beginning with “02” prefix will be operational. It however, said the change only affects the Fixed Telephone Numbers.  “There is no change to the existing mobile numbering format,” it said. “The Commission hereby informs the public of the changes and also clarifies that existing numbers will continue to operate concurrently till the cut-over date of December 31, 2023. From January 1, 2024, the new numbering format beginning with “02” prefix will be operational. “In other words, the old and new number formats are allowed to run concurrently till the cut-over date (December 31, 2023). Thereafter (from January 1, 2024), the new fixed-lines format will assume full recognition across all networks.  “For example, in the new order, to dial the hitherto existing number, 09461700, please dial 02094617000. “Additional examples are: For Lagos, Abuja, Port Harcourt and Kano’s current number format of 014630643, 094630643, 084460643 and 064460643, will now be 02014630643, 02094630643, 02084460643 and 02064460643 respectively in the new numbering format. “The announcement is made to give expression to a key responsibility of the NCC and it is consistent with the practices of the International Telecommunication Union (ITU), the United Nations arm supervising Information and Communication Technologies (ICT),” the statement read.

NAICOM Takes Compulsory Insurance Campaign To Nasarawa 

Ahead of its National Insurance conference which comes up in October, the National Insurance Commission (NAICOM) has taken the campaign for compulsory insurance to Nasarawa State.   A statement from the Commission said the Commissioner for Insurance, Mr Olorundare Sunday Thomas led a delegation from NAICOM on a courtesy visit to the Executive Governor of Nasarawa State, Engr. Abdullahi A. Sule to intimate him and members of his executive council on the benefits of insurances. Some of the compulsory insurances the commission is driving includes Public Buildings and Buildings Under Construction, 3rd Party Motor Insurances amongst others. Narrating a personal experience while he was still in the private sector of how the sugar refinery where he worked as the Managing Director was razed by fire but thanks to insurance, a newer and better one was built from the claims paid by the insurance company. The Commission has intensified its drive towards Insurance penetration with some novel products built to captivate the general public.