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Ogun PDP candidate asks Daniel-led faction for cooperation

Ogun PDP candidate asks Daniel-led faction for cooperation

The governorship
candidate of the People’s Democratic Party in Ogun State, Tunji Olurin,
yesterday extended a peace offering to the opposition within the party
led by the state governor, Gbenga Daniel, asking that they work
together to move the state forward rather than sit on the fence.

Mr. Olurin spoke
with journalists in Abeokuta shortly after a church service to mark the
second year’s anniversary of Chapel of Christ The Glorious King,
located within the complex of the Olusegun Obasanjo Presidential
Library in Abeokuta.

“We are all
citizens of Ogun State; there is no winner or loser in this issue. It
is our responsibility to join hands together to develop Ogun State.
Those who are in opposition, I will personnaly call them, embrace them
to come together with me on board to develop the state,” he said.

Accompanied by his
running mate, Tunde Oladunjoye, the party candidate who emerged from
the Olusegun Obasanjo faction of the party said his administration’s
focus would be to make rural areas attractive and stop rural-urban
migration.

“By the time we
make rural areas attractive, we will not have rural-urban migration
anymore, because most of our children go to the cities to sleep under
the bridges because they couldn’t make ends meet in their villages,”
Mr. Olurin said. “We want to transform the villages, we want to give
them the same facilities they could not get in the cities, so they can
remain there, we shall accelerate development.”

He said he is very confident about his ticket, just as he said he would embark on his campaign soon.

The Daniel faction
of the party, however, appears to have foreclosed working with Mr.
Olurin. The state Commissioner for Information and Strategy Sina
Kawonise, said there was no going back on the stance of his group,
which he said was to stick by the recent ruling of an Abeokuta High
Court which declared the Obasanjo group as illegal, null and void.

“The court
judgement still stands; the law is clear on that,” Mr. Kawonise said,
adding that the former president was earlier given a proposal to
resolve the crisis, but rejected it.

Reports at the
weekend alleged that Mr. Obasanjo had refused to entertain the plea of
a reconciliation committee sent by the party to harmonise the list of
candidates produced by the two factions. But the chairman of the PDP’s
harmonised executives, Dayo Soremi, described as false reports that the
former president tore a purported peace list supposedly sent by
President Goodluck Jonathan.

One list

In a press
statement issued yesterday in Abeokuta, Mr. Soremi said: “Our BOT
chairman and elder statesman has absolute respect for the office of the
president, which he had occupied as a military head of state and as a
two-term civilian president. We wish to state categorically that there
were no two lists of candidates in Ogun PDP, other than the one
submitted by the harmonised executives and approved by the national
leadership of our party.

“The list
containing our party’s flagbearers have been submitted and accepted by
INEC. The only alteration we made was the accommodation of Dimeji
Bankole, as directed by President Goodluck Jonathan.”

Mr. Soremi
expressed his happiness over the reaction of people to the
Olurin/Oladunjoye governorship ticket since it was confirmed with the
presentation of flag in Ibadan last Tuesday.

“I can tell you that even opposition parties in Ogun State are already imploding since the ticket was announced,” he said.

A socio-political
organization, Gateway Democrats Coalition (GADECO) at the weekend
described the gubernatorial candidacy of Mr. Olurin as a unifying force
for the 2011 gubernatorial election in Ogun State. The group noted that
the political situation in the state required a leadership that would
return it to its prosperous past and restore hope in the citizenry.

“We believe firmly that Adetunji Olurin’s candidacy will restore
needed hope, peace and bring back the unity of Ogun State,” GADECO
National Coordinator, Adeola Shoaga, said. “The recovery of Ogun State
from the scars of political crisis that has overtaken development
activities in the state in the last five years depends solely on the
election of a credible and “big picture” leader like Mr Olurin.”

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Military dissolve Egypt’s parliament

Military dissolve Egypt’s parliament

Troops took control
of Tahrir Square, the fulcrum of protests that swept Hosni Mubarak from
power, to allow traffic through central Cairo on Sunday, as military
rulers struggled to get life in Egypt back to normal.

There were heated
rows in Tahrir Square on whether to keep up protests or comply with
army orders to help put Egypt back on its feet. “The people want the
square cleared,” one group chanted. “We will not leave, we will not
leave,” replied another.

The Arab world’s
most populous country was taking its first tentative steps toward
democracy and protest organisers were forming a Council of Trustees to
defend the revolution and urge swift reform from a military intent on
restoring law and order.

Police officers
gathered to demand higher pay and a security guard said warning shots
were fired in the air. No one was hurt, however. Earlier, troops, some
wielding sticks, pushed protesters aside to reopen Tahrir square to
traffic.

“Revolution continues”

Protest leaders
want the immediate release of political prisoners, the lifting of a
state of emergency used by Mubarak to crush opposition and dissent, the
closure of military courts, fair elections, and a swift handover of
power to civilians.

Despite Mubarak’s
resignation, some protesters have said they plan to stay in the square
to ensure the military council keeps its promises on transition. They
plan a big demonstration next Friday to celebrate the revolution and
honour those killed.

The Higher Military
Council has given no timetable for a transition, but tried to reassure
with a statement on Saturday affirming a commitment to democracy and
its treaties, aimed particularly at Israel with which Egypt has a peace
treaty.

The military is
expected on Monday to ban meetings by labour unions or professional
syndicates, effectively forbidding strikes, and to tell all Egyptians
to get back to work. On Saturday, the army said it would uphold Egypt’s
international obligations.

These include a peace treaty with Israel, whose defence minister has
been in touch with his Egyptian counterpart, who heads the military
council. Interior minister, Mahmoud Wagdy, has said Egypt needs “the
speedy return of the police to duty,” saying 13,000 inmates who escaped
from prison early in the uprising were still on the run.

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Atiku, Ribadu lament Port Harcourt tragedy

Atiku, Ribadu lament Port Harcourt tragedy

Former vice
president, Atiku Abubakar yesterday demanded investigation into the
death of some Nigerians at the PDP presidential rally in Port Harcourt
on Saturday.

In a message of
condolence issued by his media office in Abuja on Sunday, Mr Abubakar,
who lost to President Goodluck Jonathan at last month’s presidential
primaries of the party, described the death of the Nigerians as a
tragedy.

No fewer than 16
people lost their lives during a stampede at the Liberation Stadium,
Port Harcourt where the PDP held its presidential campaign rally at the
weekend.The former vice president, however, implored the ruling party
and the government not to desert the families of the deceased as they
are ‘heroes of democracy’.

The campaign
organisation of the presidential candidate of Action Congress of
Nigeria (ACN), Nuhu Ribadu also described the deaths as avoidable and
tragic loss. In a statement by its Director of Media and
Communications, Ibrahim Modibbo, the organisation said it sympathises
with the family of the deceased and prays that “God will grant them the
fortitude to bear the loss.”

The organisation
however asked all political parties to ensure that adequate security
measures are taken before, during and after campaign rallies and
programmes. The organisation also called for the police to be more
efficient in their duties, particularly during this campaign season as
“more political rallies will definitely take place.”

Medical assistance

In the wake of the
tragic incident ,the governor of Akwa Ibom State, Godswill Obot
Akpabio, has set up a team of medical experts to assist some of the
victims of the stampede.

The governor, in a
statement signed by his Chief Press Secretary, Usoro I. Usoro, said
that “a delegation headed by the Commissioner for Health, of the state,
Louisa Ukpe, left Uyo for Port Harcourt, immediately after the
incident, to offer medical assistance towards fore-stalling further
loss of lives.

“The team is also
expected to search all hospitals and other health facilities with a
view to identifying all Akwa Ibom indigenes who might have been
involved in the incident and offer immediate help to them.” Mr. Akpabio
said that the victims of the stampede were part of the teaming crowd of
supporters that thronged the Liberation Stadium to show overwhelming
solidarity to their son, Mr Jonathan.

The governor
however urged Nigerians to vote overwhelmingly for Mr Jonathan as a
mark of honour in memory of those who died in the incident. “Today and
always, we will always remember their loyalty and support which they
carried to the end. Our heart goes out to them. We mourn with the
families of those mourning and pray with a deep sense of sorrow that
the Almighty God should console them over this unexpected calamity”,
the governor said.

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Candidate steps down for Bankole

Candidate steps down for Bankole

The PDP candidate
for the post of House of Representatives for Abeokuta South
constituency from the Jubril Martins Kuye-led faction of the People’s
Democratic Party in Ogun State, Peter Olusegun Alawode, yesterday
withdrew his candidacy in favour of the speaker of the House of
Representatives, Dimeji Bankole. Mr. Alawode, who disclosed this while
speaking with journalists in Abeokuta, explained that his withdrawal
was on the order of the party’s leadership and that he had no
ill-feeling over that, stressing further that he could not go against
the wishes of the party authority.

“Thanks be to God
Almighty, we have been able to resolve issues and that is based on the
order of my leaders and elders, the likes of Buruji Kashamu. There is
no way I could go against the wishes of the party and not only the
party but the elders and the leaders,” Mr Alawode said.

Denying
speculations that he withdrew following financial inducement from the
camp of the speaker, the former candidate added that the party leaders
are in control.

“If I should be
asked to step down for the speaker to go back to that seat, there is no
big deal,” he said. “I want to say yes, wilingly and without much
pressure. I was able to say okay, I agree with you. No any ill-feeling.
The decision of me serving in Olurin’s cabinet is solely the affairs of
the party and leaders.”

Ongoing consultations

On the crisis rocking the party, Mr. Alawode said that the party leaders have been making efforts to resolve the issues.

“There are lots of
consultations here and there in order to resolve issues because time is
not on our side; we do realise that. My leaders and elders are trying
their best in resolving these grievances,” he said.

Mr. Bankole participated in the primaries of the party organized by
the faction of the party loyal to the state governor, Gbenga Daniel.
Although he won the ticket, his name could not be forwarded to the
Independent National Electoral Commission because the commission
recognised candidates supplied by the Martins-Kuye faction of the
party. These candidates were last week presented with the party’s flag
at the presidential rally held in Ibadan, Oyo State. Mr. Bankole
received the flag on behalf of House of Representatives candidates,
although his name was not on the INEC-recognised list. Mr. Alawode’s
withdrawal of his candidacy means that Mr. Bankole can now be presented
as the candidate of the party.

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Anti-government protests persist across Middle East

Anti-government protests persist across Middle East

Anti-government
protesters clashed with police blocking them from marching to Yemen’s
presidential palace in Sanaa on Sunday, witnesses said. The clashes
occurred while President Ali Abdullah Saleh and the main opposition
group were preparing for talks that the government hoped would help
avert an Egyptian-style revolt in the Arabian Peninsula state, a vital
U.S. ally against al Qaeda.

Saleh decided to
postpone a visit to the United States planned for later this month “due
to the current circumstances in the region,” About 1,000 people
attended the demonstration shouting “the Yemeni people want the fall of
the regime” and “a Yemeni revolution after the Egyptian revolution,”
before dozens broke off to march to the palace.

In the harshest
response yet to a wave of protests in the capital, police prevented the
smaller group from reaching the palace, hitting them with batons, while
protesters threw rocks at the police, witnesses said. Four people were
injured. Opposition officials said 10 protesters were briefly detained
in Sanaa on Sunday and 120 more were taken into custody overnight in
the city of Taiz after protests on Saturday.

The United States
relies heavily on Saleh to help combat al Qaeda’s Yemen-based arm,
which also carries out attacks in neighbouring Saudi Arabia. U.S.-based
Human Rights Watch criticised Yemen for allowing government supporters
to assault, intimidate and sometimes clash with protesters calling on
Saleh to quit. U.S. President Barack Obama has urged Saleh to follow up
his pledges of reform with concrete action.

Algeria police stifle protest

Meanwhile,
thousands of police in riot gear blocked off the centre of Algeria’s
capital on Saturday and stopped government opponents from staging a
protest march that sought to emulate Egypt’s popular revolt.

Small groups of
demonstrators angry at President Abdelaziz Bouteflika gathered in May 1
Square shouting “Bouteflika out!” They waved newspaper front pages
reporting Friday’s overthrow of Egypt’s President Hosni Mubarak.

However the riot
police was deployed to suppress the protest. After about three hours,
hundreds of people left the square quietly, with police opening up gaps
in their cordon to let them through. Some 200 young men from a poor
neighbourhood nearby stayed on the square. Some threw objects at
police. Widespread unrest in Algeria could have implications for the
world economy because it is a major oil and gas exporter. But many
analysts say a revolt is unlikely because the government can use its
energy wealth to resolve most grievances.

Huge police deployment

Government
officials had banned Saturday’s protest, citing public order concerns.
A massive police mobilisation, which started on Friday afternoon,
appeared to have stifled it. Human Rights Groups condemn this move;
they say it is bad for Algeria’s image. The protest was not backed by
the main trade unions or the biggest opposition parties. Most members
of radical Islamist groups in Algeria banned in the 1990s, but still
have grassroots influence, stayed away.

Responding to
opposition pressure, government officials say they are working hard to
create more jobs and improve housing, and they have promised more
democratic freedoms including the lifting of a state of emergency in
force for 19 years. The Interior Ministry statement on Saturday’s
protest said: “An attempt to organise a march was recorded today at May
1 Square by a crowd estimated at 250 people. Fourteen people were
detained and immediately released.” But contradicting his statement,
officials with the opposition RCD party, which helped organise the
protest, told Reuters the demonstrators totalled between 7,000 and
10,000 and that 1,000 people were arrested.

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Presidential aide claims amnesty has helped economy

Presidential aide claims amnesty has helped economy

The special adviser to President Goodluck Jonathan on
Niger Delta affairs, Kingsley Kuku, has praised the federal
government’s amnesty programme for militants in the region, saying this
has helped to improve the country’s economy.

Speaking at a forum for stakeholders of the Niger
Delta held in Lagos over the weekend, Mr. Kuku disclosed that the
amnesty would go down in the history as the “sincerest effort by the
federal government of Nigeria to holistically address the Niger Delta
question”, as he noted that prior to the proclamation of the official
pardon, militancy and general insecurity in the region virtually
crippled Nigeria’s economy.

Mr. Kuku said that investment inflow to the upstream
subsector of the oil industry had dwindled remarkably, threatening the
country’s crude oil reserves.

“Nigeria had targeted 40 billion barrels proven
reserve by the end of 2010 but insecurity in Niger Delta led to the
exodus of investors from our country to more stable business
opportunities in Africa. For example, due to militants’ activities in
the Niger Delta, Shell Petroleum Development Company, by early 2009,
had declared force majeure on its operations, which caused a drop in
its production capacity from one million bpd to about 259,000 bpd.

“Worse still, citing insecurity, union officials all
too often called strikes to protest insecure working environment. It
got to a point where Nigeria’s export dwindled to as low as 700,000
bpd, compared with a targeted 2.2milion bpd for the first quarter of
2009. In 2008 alone, it was estimated that Nigeria lost over N3trillion
as a result of militancy in the Niger Delta,” he said.

The special adviser said that with the proclamation
of amnesty for the militants agitators, reasonable disarmament took
place and relative peace was restored in the Nigeria Delta, adding that
oil companies reopened shut-in wells and under four months, Nigeria’s
oil production increased from 700,000 barrels per day to 2.3milion
barrels per day.

“With cessation of hostilities, government began
giving assurances that Nigeria once again fill its OPEC (Organization
of Petroleum Exporting Countries) quota and be trusted by major
consumer nations to meet its contractual obligations,” he said.

Disappointment from oil companies

Mr. Kuku disclosed that oil companies operating in
the Niger Delta have not being helping the region in terms of enhancing
the lives of residents of the area, adding that the companies have
remained indifferent when it comes to recruiting ex-combatants.

“The oil and gas companies have not done enough and
they must do enough because it is a problem they caused this country.
They said they are putting together $30m and they can only support te
training of 3,000 out of 26,358 ex-combatants. We demanded if they were
going to employ them? But they said they cannot guarantee that.

“We reject that completely, because from that point
of view, the people they want those to be trained by them to be just
artisans, but we are saying that they must train our people in
employable fields that some of them can stand the chance of being
qualified to be chairman in the SPDC (Shell Petroleum Development
Company)one day,” he said.

Sustainable development Dennis Ogwaro, a participant
at the forum called for sustainable developments in the Niger Delta, as
he explained that this could be achieved by the construction and
establishment of institutions and higher education centres in the
region.

“With this kind of development, our youth will have
their minds taken away from the high demand for money and this will
increase the number of increase the number of entrepreneurs in our
Niger Delta,” he said.</

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Party leaders distance selves from Nwodo’s resignation

Party leaders distance selves from Nwodo’s resignation

The National
Working Committee (NWC) of the Peoples Democratic Party has denied
complicity in the last month’s resignation of the party’s former
chairman, Okwesilieze Nwodo.

It, however,
refused to state clearly if the former chairman left N7 billion in the
coffers of the party when he was leaving office, as claimed.

Mr Nwodo’s
political adviser, Buhari Bala had in a recent media interview accused
the Working Committee members of complicity in the resignation of his
principal last month. He also claimed that Mr Nwodo left N7 billion in
the party’s account at the time he resigned.

The NWC, in a
statement by PDP national publicity secretary, Ahmed Alkali on Sunday
in Abuja, said that Mr Bala’s comment was jaundiced, ill-timed,
uninformed and in bad taste. “When we first heard of the story, we
could not believe that an aide to a former chairman of our party could
make such allegations. We therefore waited, thought that he must have
been quoted out of context. But having waited up to this time without
him retracting the statement, we have reasons to believe that the
action was deliberately taken,” Mr Alkali said.

“It is not the
tradition of the leadership to join issues with our past leaders or
those who worked with them. There is however need for us to make some
clarifications in this case in order to put the record straight and
avoid a situation where party members and especially Nigerians will be
led to believe a lie.” he said.

Intentional attack

The PDP spokesman
said the committee finds it strange that Mr Bala could choose this
period when the party had just concluded its presidential campaign at
the zonal level and about to commence the door to door campaigns in the
states, “to throw spanner on our collective efforts and determination
to achieve success for our party in the forthcoming general elections.”
Stating that the committee will not go into the details of the
circumstances that led to the resignation of Mr Nwodo, Mr Alkali,
however, recalled that the former chairman himself said he was quitting
based on the need to “maintain cohesion in the overall interest of the
party.” He added, “For an aide to the former chairman to turn around
and make unfounded and unsubstantiated allegations against the NWC of
the party speak of mischief and indeed a deliberate attempt to create
bad blood, hatred and odium between members of the NWC and the former
national chairman whom we hold in high esteem. “We want to put it on
record that since June 2010 when Okwesilieze Nwodo was elected the
national chairman of the PDP, he enjoyed the highest level of
cooperation from members of the National Working Committee who
supported every single programme that he introduced.

Mr Alkali dismissed
Mr Bala’s claim that Mr Nwodo left N7 billion in the PDP’s purse,
saying that he (Bala) was never in a position to know the state of the
party’s finances and therefore not qualified to speak on the matter.

The PDP spokesman asked Mr Bala to give clarification on the
allegations he raised, adding that this will determine the committee’s
next line of action.

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POLITICAL MANN: Egypt: Republicans fear over Islamic radicalism

POLITICAL MANN: Egypt: Republicans fear over Islamic radicalism

Should we fear the
uprising in Egypt? American conservatives are caught up in an unusually
open argument about the crowds in Cairo.

“This isn’t about
Egypt,” said top-rated television personality Glenn Beck. “This is the
story of everyone who has ever plotted, or wanted, to fundamentally
change or destroy the Western way of life.” Beck is telling his
enormous audience that the protests against Hosni Mubarak are part of
an international Islamic resurgence sweeping all the way from Asia to
England. His opinions are among the most extreme in mainstream America
today, but there are a range of opinions about Egypt among Republicans
and others on the right.

“Only a child can
believe that a democratic outcome is inevitable,” writes conservative
columnist Charles Krauthammer “And only a blinkered optimist can
believe that it is even the most likely outcome.”

Broadly speaking,
members of President Barack Obama’s Democratic Party welcome the end of
dictatorship as complicated and potentially dangerous but inherently
desirable.

Obama’s stance
seems to have evolved since the demonstrations started; his latest word
is that the Mubarak regime should take prompt, careful steps to move
towards democracy. Most Republicans in Congress have quietly supported
the president’s position. But outside of Washington some prominent
Republicans are breaking ranks.

Influential
Republican strategist Newt Gingrich says the administration has been
naive about Egypt’s most popular opposition movement, because of its
roots in Islamic radicalism.

“The Muslim
brotherhood is a mortal enemy of our civilization,” he said. “This
administration, I think, does not have a clue about those realities.”
Like Gingrich, former Alaska governor Sarah Palin is considered a
possible presidential candidate. She says she’s disappointed that the
Obama administration hasn’t established what’s ahead in Egypt.

“Nobody yet has
explained to us – surely they know, more than the rest of us know – who
is going to take the place of Mubarak,” she said. “They know what’s
going on and aren’t telling us.” It’s not clear that the White House is
hiding anything. A lot of America’s plans are being unsettled
unexpectedly by the sudden upheaval in Egypt.

President Obama
clearly believes that the country and the region will benefit from more
democracy. American conservatives aren’t quite as convinced.

Jonathan Mann
presents Political Mann on CNN International each Friday at 18:30
(CAT), Saturday at 3pm and 9pm (CAT), and Sunday at 10am (CAT).

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While private sector lags, government gets busy in bond market

While private sector lags, government gets busy in bond market

While many firms
could hardly raise cheap capital to run their businesses last year, the
state and federal government had a field day accessing funds from the
bond market. Since the stock market crisis which began in 2008, many
believed that the bond market would provide a more reliable avenue for
firms to raise capital.

But that was not to
be. In addition to forays by the federal government, five state
governments, namely Bayelsa, Ebonyi, Kaduna, Niger and Lagos all raised
various sums to meet their developmental needs. The private sector was
not so lucky. Apart from United Bank for Africa and Guaranty Trust Bank
which raised N20 billion and N13.162 billion, UAC Properties raised N15
billion while C & I Leasing raised N2.24 billion. Other firms that
planned to venture into the bond market eventually had to shelve the
plans as market sentiments did not tilt in their favour. The
alternative for these firms was bank borrowing which added to the cost
of business.

On the other hand,
the Debt Management Office (DMO), on behalf of the federal government
raised over N1.1 trillion from the domestic bond market last year. With
plans by the DMO to raise N186.5 billion in the first quarter of this
year, the private sector may yet again be at the receiving end in 2011.
The Debt Office plans to raise N66.5 billion next Wednesday and another
N60 billion in March. This capital raising plan by government, compared
to N5 billion raised by Food Concepts Limited last week already sets
the tone of what to expect in the bond market this year.

Government has been
blamed for crowding out the private sector from the bond market, a
claim often countered by the director general of the DMO, Abraham
Nwankwo, who insists that the government is in the bond market in order
to develop it sufficiently for the private sector to thrive. Mr.
Nwankwo said the goals of the office is to develop the domestic bond
market to enable the private sector access long term funds to develop
agriculture, mining, solid minerals, transportation, manufacturing,
power. “Now, there are funds of up to 20 years in the Nigerian capital
market, through the issuance of FGN bonds. Today, if any private entity
wants to issue a bond to raise five, seven, 10, 20 years money for
investment in agriculture, manufacturing, power sector or other
infrastructure will succeed,” he said in an interview last week.

Mr. Nwankwo said
Nigeria’s debut $500 million Eurobond which was subscribed by 150 per
cent was part of government effort to encourage the private sector to
tap into the international bond market. “Government desires an active
role by the private sector in this direction. What government has done
through the Eurobond issue is to open a new window to facilitate
Nigeria’s private sector to go into the international capital market to
issue their own debt instruments and raise long term monies to fund the
country’s various needs in the real sector and infrastructure.”

However, not many
operators share this outlook. “The sustained expansion in public
borrowing risks crowding out the private sector,” said the interim
administrator of the Nigerian Stock Exchange, Emmanuel Ikhazobor, in
his presentation at a press briefing on the review of 2010 and the
outlook for 2011, held last month in Lagos. Mr. Ikhazobor noted that
the international and Nigerian capital market would be very busy this
year as the federal government and various government agencies source
funds from both markets.

Tola Odukoya, an
analyst at Dunn Loren Merrifield, an investment firm in Lagos is also
optimistic that the corporate bond market will fare better this year.
“We anticipate a strong growth trajectory for corporate bonds on the
back of the revised Pencom guidelines and the success of the corporate
bonds issued in 2010. From our standpoint, over N30 billion will be
raised from the market via corporate bonds in the first half of the
year.”

Unchanging trend

This enthusiasm is
not totally shared across the industry as some operators are still
skeptical, given the huge funds raised by government last year. Akin
Oladeji, chief executive officer of Futures and Bonds Limited, a
financial services firm, said the trend may not change much this year.
“The market will not be different from previous years since FGN has
devised a crafty way of raising bonds to finance its projects. WMarket
will continue to be crowded with FG and State Bonds.” Mr. Oladeji said
attraction of the corporate to the bond market will be determined by
interest rate. “If the usual high lending rate and low deposit rate
should continue, most corporate organisations will consider bond
issuance subject to their existing allowable debt to equity ratio.”

Mr. Odukoya said
the corporate bond market has its attraction as many firms may need to
restructure their debt portfolio and may see the bond market as an
alternative. “Our optimism stems from the obvious need for most
corporates to restructure their debt portfolios, which for the most
part are expensive and short tenured in nature.” Mr. Nwankwo, however,
said government was not unaware of the need not to crowd-out the
private sector and that government is creating space for private sector
in the flow of credit. This may account for the drop in government
activity as shown by the DMO’s issuance calendar. While N186.5 billion
is planned for the first quarter of this year, N238.5 billion was
raised during the same period last year, a 21.8 per cent reduction.

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Aganga insists that Nigeria is not bankrupt

Aganga insists that Nigeria is not bankrupt

Despite the
decision by the National Assembly to cut the budget proposals by
government ministries, departments and agencies (MDAs) by 50 per cent,
the Finance Minister, Segun Aganga, insists the country is buoyant
enough to finance government business.

Many of the
ministries and agencies had their 2011 appropriation sliced in a manner
that members of the various committees say was indicative that the
country is broke and can ill-afford funding the budget.

“The 2010 budget,
in my opinion, is a failed budget,” lamented the chairman, Senate
Committee on Environment, Grace Bent, while appraising the 2010 budget
of the Environment ministry last Thursday.

Mrs Bent’s view was
re-echoed by most of her colleagues in other committees and she finds
it worrisome that the Environment ministry, like many others,
implemented only 47 percent of its capital budget for the year, about
six weeks before the expiration of the 2010 fiscal year, as against 100
per cent recorded in the recurrent expenditure and overhead budget.

Indications are
that out of the total allocation of N29.522 billion in the 2010 budget,
the Finance Ministry has only released N10.115 billion to the ministry
till date.

The Environment
minister, John Odeh, blamed the poor performance of the budget on the
Finance ministry’s failure to release the capital budget in full due to
complaints of shortfall in the country’s revenue.

Mr Odeh’s
counterpart in the interior ministry, Emmanuel Iheanacho, also
announced 100 per cent implementation in recurrent expenditure, while
the capital expenditure was about 43 per cent. Mr Iheanacho’s complaint
was that the Finance ministry released only 50 per cent of the
ministry’s 2010 capital budget, because of the shortfall in the
country’s revenue, though the recurrent and overhead budgets were
released and fully expended.

Prudent management

However, Mr Aganga,
explained that the decision to slice the ministries and agencies’
budget is part of the measures being pursued by government to ensure
discipline and prudence in the management of the country’s finances.

“The truth is that
Nigeria is not broke. The question that one needs to ask is: The ones
that they (ministries) got last year, have they used it? Or how well
did they use it? There is no doubt that the country is making more oil
revenue today because commodity prices are going up. But what one
should know is that we are running a deficit budget, which is the
highest ever budget in the history of the country.

“Besides, this is
an expansionary budget because of what government is doing. We must
learn to live within our means. What government is doing is trying to
reduce the huge cost of running business, by emphasising fiscal
discipline and prudence, without necessarily compromising quality in
the implementation of the budget.” Mr Aganga said. During the recent
presentation of the overview of the 2011 budget by President Goodluck
Jonathan, the finance minister pointed out that this year’s budget was
underpinned by the four pillars upon which the country’s economic
growth strategy and government’s reform agenda rests.

Apart from the
determination to make Nigerians feel the tangible benefits of the
country’s economic growth, the minister said government will optimise
necessary capital spending by rationalising recurrent expenditure,
while accelerating the reforms to enhance the quality and efficiency of
public expenditure as well as promote greater prudence in the
management of the nation’s financial resources.

The minister had
argued before the law makers that government was withholding funds from
those ministries that did not show sufficient capacity to utilise past
releases, with some of them accounting for as low as 23.3 percent
implementation of the budget.

“Government has
been very lousy with budget implementation. This is a failed budget of
a failing nation,” observed Bukar Abba Ibrahim, a senator, who claimed
that a cut in the capital budget of the ministries was suggestive that
the nation cannot afford it.

“Why would the
Finance ministry not be able to cash back the capital budget of the
2010 appropriation, despite the claim by the Finance minister that the
country is buoyant enough to fund government’s business and considering
that crude oil price has been stable above the budgeted benchmark?” Mr
Ibrahim noted.

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