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European Banks Get Reality Check

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Banking regulators said last Thursday that European banks need to raise nearly €115 billion by June as pressure mounts for political leaders to come up with a workable plan to resolve the debt crisis.

Among the 31 banks on the European Banking Authority’s list, six are from Germany — Europe’s largest economy. But Spain’s Banco Santander faces the biggest shortfall of €15.3 billion, CNN reports.

Spanish banks came under scrutiny in July, when the EBA carried out stress tests of 90 institutions. Of the eight that failed, five were in Spain. At that time, the EBA said the banks needed €2.5 billion to survive.

While the latest EBA report was not the result of stress tests per se, it is still a big reality check for banks across Europe.

Aside from Greece, Spain faces the biggest overall shortfall, of €26.2 billion, followed by Italy (€15.4 billion) and Germany (€13.1 billion).

And Belgian bank Dexia, which received a €90 billion bailout in October, needs to raise €6.3 billion.

Banks have been at the epicenter of the crisis as sovereign debt problems deepen and spread.

“It’s really no surprise,” said Keith Springer, president of Springer Financial Advisors. “We know they’re undercapitalized.” He also estimates the capital requirements may be closer to the trillion mark.

Banks must submit their plans, which could include retaining profits and cutting bonuses, to the EBA by Jan. 20.

It’s been a tough two years for Europe as the crisis took hold and spread like the plague.

In the past month alone, three countries have gotten new leaders, including Italy, where borrowing costs skyrocketed. Meanwhile, leaders continued to do a lot of talk with very little action.

0:00 / 1:29 Countdown is on to save euro

There’s a lot riding on the European Union two-day summit, which concludes Friday. On Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had agreed to a fiscal pact that would help avert another crisis.

But the pact would most likely require treaty changes for at least the 17 eurozone nations, though Merkel said she’d like all 27 EU members to consider changes as well.

“It all comes down to Germany,” said Springer.

The pressure is on. Earlier this week, Standard & Poor’s put 15 of the 17 eurozone nations on notice that they may face a possible downgrade.

The ratings agency also warned the European Financial Stability Facility, which is partially backed by those countries, that it could also be downgraded, as well as the European Union as a whole.

S&P also warned several large eurozone banks, including some on the EBA list, that they could be downgraded.

French bank BNP Paribas, along with Germany’s Deutsche Bank and Commerzbank made both lists.

In all, the EBA reviewed 71 banks in 20 countries.

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FG Approves 4 New Channel Management Firms For Seaports

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The Federal Executive Council (FEC) has approved four new channel management companies for seaports across the country in a move aimed at improving vessel navigation and port operations.
Speaking at the recently concluded Annual General Meeting of the Nigerian Association of Master Mariners (NAMM), former General Manager, Marine and Operations, Capt. Ebubeogu Ihenacho, disclosed that there would be changes in the ownership of the Lagos Channel Management Company Limited and the Bonny Channel Management Company.
According to Ihenacho, the four channels serving Nigeria’s major port clusters will have different channel management companies as approved by the FEC.
He said a new company had been approved to manage the Lagos port channel, with a change of name, while the Calabar Channel would be managed by the Calabar Channel Management Company.
He added that Bonny Channel Management Company had also undergone a change of ownership.
On the Warri Channel, Ihenacho said the Federal Government had approved China Harbour Engineering Company (CHEC) and two other companies to form a consortium to manage the Escravos Channel.
He said: “For Warri, it was approved for China Harbour Engineering Company, CHEC, and two other companies, who would now form a consortium.
That consortium will now form a Special Purpose Vehicle (SPV) with the Nigerian Ports Authority to manage the Escravos Channel.”
Recall that the management of the NPA had declined to renew the concessions of the Lagos Channel Management Company Limited and the Bonny Channel Management Company, opting instead for six-month extensions of the existing arrangements.
By; Enoch Epelle
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RIRS Warns Against Unauthorised Tax Collection

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The Rivers State Internal Revenue Service (RIRS) has warned motorists, transport operators and business owners against paying taxes, levies or charges to Unauthorised persons and organisations, insisting that only the Service and its duly appointed agents are legally empowered to collect taxes on behalf of the state government.
The Service gave the warning in a public notice dated October 21, 2026, signed by its Executive Chairman, Sir Israel O. Egbunefu, FCTI, in which it clarified that the Rivers State Ministry of Transport was not authorised by the state government to collect road tax or any other tax, levy or charge from motorists and transport operators.
RIRS also specifically disowned Explore Strategic Alliance Ltd, located at No. 7 Rumuodaolu Market Road, Port Harcourt, declaring the company had not been appointed or authorised by either the state government or the Service to collect Motor Vehicle Transport (MOT) tickets or any other tax on its behalf.
The revenue agency consequently cautioned members of the public against making payments to the company or any of its staff, stressing that anyone who ignored the warning would do so at their own risk.
It reaffirmed that only the legally authorised agency responsible for tax collection in Rivers State and the appointed agents that would carry out such duties in accordance with the law.
The Service urged taxpayers to demand official identification from anyone claiming to be its tax agent and verify the person’s credentials directly with RIRS before making payments.
It further warned that individuals or groups found impersonating tax consultants, agents or their representatives to collect Unauthorised taxes would be arrested and prosecuted in accordance with the law.
RIRS also called on members of the public to report suspicious persons and activities relating to Unauthorised tax collection to the Service for appropriate action.
The agency advised taxpayers seeking clarification or assistance to visit any of its offices or contact it through its official email address, info@riversbirs.gov.ng.
The Service reiterated its commitment to protecting taxpayers, promoting voluntary compliance and safeguarding the integrity of tax administration in Rivers State.
By: King Onunwor
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Bayelsa consumers Groan  Over Inflation As Traders Remain Helpless Over Low Patronage 

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Consumers and traders at the Swali ultramodern market in Yenagoa, capital of Bayelsa State have continued to groan over high prices of commodities and poor Patronage due to cost-push inflation.
The Tide reports that in the past weeks prices of goods and services in Yenagoa metropolis has experienced increase.
Notable services like transportation have also increased  lately due to increase in the pump price of fuel that has recently further exacerbated inflation in the prices of staple foods like rice, beans, garri and others.
Speaking with The Tide on a market survey, a trader, Mrs Tovie Barakabo said a bag of bean which sold between N120,000-N130, 000 now goes for N140,000-N145,000.
Mrs Barakabo also hinted that the only commodities whose price has not gone up was price of millet which sells N60,000, while big bag of garri now sells for N30,000.
The Tide further gathered from other inside Source that 25 litres of Kings cooking oil currently sells N75,000 as against the former price of N57,000.
Other commodities such as delicious vegetable oil  now goes for N68,000, Pure vegetable oil currently goes for N66, 000, while spaghetti is now N18,800 per bag.
The market survey also discovered that Sonnia tomato mix sells N75,609, while a big and small basket of fresh tomatoes are sold for N30,000 and N6,500 respectively.
A disappointed custom, Mrs Juliet Domo who fielded questions from The Tide expressed her worries over the inflation, calling on government to take decisive stands against inflation.
By: Ariwera Ibibo-Howells, Yenagoa
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