Connect with us

Business

Save Part Of Excess Crude Account, Expert Urges FG

Published

on

Some financial experts
have called on the Federal Government to ensure that certain percentage of the nation’s Excess Crude Account (ECA) was saved for the future.
The experts, who spoke in separate interviews with  journalist in Lagos, advised that this should be enshrined in the constitution.
They gave the advice following reports that a former Minister of Finance, Dr Ngozi Okonjo-Iweala, has blamed the current economic situation in Nigeria on the past administration’s lack of political will to save.
A financial expert, Mr Johnson Chukwu, said the immediate past administration should have compelled the other tiers of government to save part of the ECA when oil price was higher than the budget benchmark.
Chukwu, the Managing Director of Cowry Assets Management Ltd., said that the immediate past government should have saved from the ECA even when it was not a constitutional provision to do so.
He recalled that President Olusegun Obasanjo saved 22 billion dollars although there was no constitutional provision supporting the savings from the ECA.
Chukwu said the government should have clear vision and be disciplined to have the political will to save for the rainy day.
He, however, said that the former minister’s revelation should not be seen as casting aspersion on the previous administration, but rather a lesson for the current government.
A former President, Association of National Accountants of Nigeria (ANAN), Mr Samuel Nzekwe, however, said that the last government tried to save through the creation of the Sovereign Wealth Fund (SWF).
He said that the current administration should consider reviewing the constitution on the matter and make pronouncement as to how much could be saved.
The former ANAN leader said that the revelation was a good idea and called for more insights into the misappropriation of public funds by the previous governments.
A former Executive Secretary of Financial Markets Dealers Association (FMDA), Mr Wale Abe, said that the statement was factual.
Abe said that it was not easy to criticise the government in which one had served, but she had to do so for the nation to move forward.
He said it was obvious that the country had remained stagnant, stressing that there was the need for improvement, particularly in the area of electricity.
Abe said that no economy could work without power.
A former Director of Research at Central Bank of Nigeria (CBN), Mr Titus Okurounmu, said that political issue could not be separated from the economy, adding that the two were intertwined.
Okurounmu said that failure to save was due to inability to reach consensus on national interests.
He advised that the country should build a system free of corruption and devise mechanisms to sustain it.
The Tide recalls that Okonjo-Iweala blamed the country’s current economic situation on lack of political will by the immediate past government to save for the rainy day.
Okonjo-Iweala, who spoke on April 14 at the George Washington University, Washington D.C, said that President Goodluck Jonathan’s administration differed from President Olusegun Obasanjo’s administration.
She said under the Obasanjo a dministration, the Nigeria government saved 22 billion dollars which helped to cushion “the dryness” of the country at the end of the last decade.

Continue Reading

Business

CBN Assures On Depositors’ Fund Safety 

Published

on

Central Bank of Nigeria (CBN) has reassured the banking public of the safety of their deposits and the banking system’s resilience.
CBN’s Acting Director of  Corporate Communications Department, Mrs Hakama Sidi-Ali, gave the assurance in a statement on  Monday in Abuja.
The statement, a response to concerns raised about the stability of some Nigerian banks in the wake of Heritage Bank Plc’s license revocation, faulted claims that the CBN was considering revoking the operating licences of Fidelity, Polaris, Wema, and Unity Banks.
It also clarified that a circular issued by the Bank on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, was currently being circulated as though it was freshly issued.
According to the Director, Heritage Bank’s case was isolated.
“Allegations of further revocation of licences prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system”, Sidi-Ali said.
She stated that bank customers, particularly those of Heritage Bank, need not worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment to the bank’s insured depositors.
The spokesperson urged members of the public to continue their regular banking activities without fear, dismissing any false reports regarding the health of specific Deposit Money Banks.
“The CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions”, she said.
Sidi-Ali reiterated the assurances of the CBN Governor, Olayemi Cardoso, that the recapitalisation of banks in Nigeria was intended to bolster the banking system and safeguard the sector against risks.

She urged all stakeholders to cooperate in ensuring the success of the process, which she said would be for the overall growth of the Nigerian economy.

“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

“Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system”, she said

Continue Reading

Business

NERC Approves New Tariff Hike For Port Harcourt DisCo

Published

on

In spire of calls that the recently hiked “Band A” tariff be reversed, the Nigerian Electricity Regulatory Commission (NERC) has approved a new tariff hike for the Port Harcourt Electricity Distribution Company (DisCo).
NERC permitted the PHED to raise tariffs for Band A customers categorised as Maximum Demand 2 Special (A – MD2 Special).
MD customers are customers that have a load of 45kVA and above. They also operate and maintain their dedicated transformers.
From N206 per kilowatt-hour, this category of customers within the Port Harcourt franchise will now pay N225/KWh.
In a regulatory instrument tagged June 2024 Supplementary Order to the Multi-Year Tariff Order – 2024 (“June 2024 Supplementary Order”) for Port Harcourt Electricity Distribution Plc, the NERC said the tariff approval was under the Tariff Review Application by PHED.
“Further to Section 23 of the MYTO-2024, this Supplementary Order seeks to reflect the changes in the pass-through indices outside the control of licensees including inflation rates, naira/dollar exchange rate, available generation capacity and gas price for the determination of Cost-Reflective Tariffs”, NERC stated.
The electricity regilator emphasised the basis for the review, saying the Naira to the US Dollar exchange rate of N1,469.06 per dollar has been adopted for June to December 2024. It said this has been determined by adding a 1 per cent transaction cost to the average foreign exchange rate of N1,454.52 during the period May 1 to 24, 2024 as obtained from the website of the Central Bank of Nigeria.
It also added that the Nigerian inflation rate of 33.69 per cent for April 2024 as published by the National Bureau of Statistics was applied to revise the Nigerian inflation rate projection for 2024.
“Under Section 116 of the Electricity Act and extant regulations, the commission has considered and approved for PHED, the tariffs (in Table 2) effective 1st June 2024. The approved tariffs shall remain in force subject to monthly adjustments of pass-through indices including inflation rates, naira/dollar exchange rates and gas-to-power prices.
“In line with the policy direction of the Federal Government of Nigeria on electricity subsidy, the allowed tariffs for Bands B – E customer categories shall remain frozen at the rates payable since December 2022 subject to further policy direction by the government.
“With this policy, the estimated subsidy benefit for customers under the PHED franchise in 2024 is approximately N11.49bn monthly”, the NERC stated.
In April, the NERC announced a new tariff for customers in Band A, from N68/KWh to N225/KWh.
It later reduced the tariff to N206.80/KWh based on the rebound of the naira.
Meanwhile, organised labour and manufacturers have kicked against the Band A tariff.

Nkpemenyie Mcdominic, Lagos

Continue Reading

Business

AMJON Partners School To Train Journalists On Maritime Operations 

Published

on

The Association of Maritime journalists of Nigeria (AMJON) has gone into a mutually beneficial collaboration with School of Eloquence to strengthen the capacity and reporting skills of Maritime journalists.
This was disclosed in a statement signed by the Chairman, AMJON Organising Committee, Mr. Segun Oladipupo and made available to our correspondent in Lagos on Monday.
According to the statement, “This year’s edition, tagged “Special Edition”, is a collaborative effort between the foremost Public Speaking training School,  School of Eloquence and AMJON”.
Oladipupo said the training is slated to hold on Friday at the School of Eloquence premises at Osborne Road, Ikoyi.
“Experts from the Nigeria Customs Service, Maritime Workers Union of Nigeria (MWUN) and School of Eloquence have been lined up to train journalists on the rudiments of their own operations”, according to the statement.
Speaking, the President of AMJON, Paul Ogbuokiri, said journalism required constant training to be in tune with evolving trends in the industry.
According to him, journalism has taken a leap from what it used to be and journalists need to equip themselves with modern journalism tools that will help them to catch up with the trends.
“We need constant training and restraining to be relevant in this age of journalism. If we fail to update ourselves, we will soon fizzle out,
“This partnership with the School of Eloquence is a right step in the right direction. It will no doubt, energise our knowledge of reportage”, he stated.
On his part, the Chairman, Organising Committee, Segun Oladipupo, said the event would afford members the opportunity to take their reporting to enviable height
He, therefore, enjoined participants to seize the opportunity to learn new trends in journalism and also learn the business side of the job.
He thanked the School of Eloquence for providing a platform for Nigerian journalists to take a flight in their daily assignment.

Nkpemenyie Mcdominic, Lagos

Continue Reading

Trending