Archive for nigeriang

Petroleum corporation denies fuel price hike

Petroleum corporation denies fuel price hike

The management of Nigerian National Petroleum
Corporation (NNPC) has said there are sufficient petroleum products in the
country.

The Group General Manager, Public Affairs
Division of NNPC Levi Ajuonuma, said in a statement in Abuja on Monday said:
“NNPC has well over 39 days sufficiency of PMS and other Petroleum products in
stock.”

The statement urged petroleum tanker owners to
release their trucks for the loading of products at various depots. “The NNPC
wishes to inform Nigerians that the rumoured hike in the price of PMS by the
federal government is false and a mere figment of the imagination of detractors
of the nation.

“The corporation also urges petroleum tanker
owners and drivers to resume loading of petroleum products in order to avoid
any artificial scarcity of the products,” the statement added.

It advised the public to desist from engaging in
panic buying of products as the corporation worked hard to end the artificial
scarcity created by the rumour. Following the fear created by the rumour, long
queues have re-emerged at filling stations around the country.

Click to Read more Financial Stories

Lawyer alleges illegal land acquisition in Ogun

Lawyer alleges illegal land acquisition in Ogun

An Abeokuta-based
legal practitioner and former member of the Ogun State House of
Assembly, Benjamin Ogunmodede raised alarm that some foreign investors
in the state are in the habit of dislodging rural dwellers under the
guise of bringing development projects to the communities.

“Our rural
inhabitants are being cheated and dislodged from their inheritance and
God-given gifts by Chinese and other foreign investors and their
Nigerian collaborators,” Mr Ogunmodede said.

He made the
revelation while delivering a lecture on the topic, ‘Environmental
Degradation in Some Rural Communities and Adverse Effect on The Rural
Inhabitants’ as part of the second session of the 12th Synod of Egba
Anglican Diocese, held at the Bishop’s Court, Abeokuta on Sunday.

Mr Ogunmodede
revealed that the foreign investors engaged in the act in collaboration
with some Nigerians serving as partners, commission agents,
facilitators or land speculators. He said the communities which were
affected included Osiele-Odere, Ilawo in Odeda local government area,
Oko-onigari, Obale, Kajola and Oloparun in the Obafemi Owode local
government area, all in Ogun State.

“They enter rural
dwellers land containing rocks, paying them a pittance or at times
intimidating them that government is the owner of the land and they can
only be paid little or nothing for their crops on the land and not
minerals on it, whereas the position of the law is that whatever
attaches to the land belongs to the owner,” Mr Ogunmodede stated.

He added that the
so-called projects had been causing serious damage to farmland, crops,
and led to the collapse of houses in different villages due to soil
earth vibration and splinster of rocks that fall on houses in the
villages where rocks and quarry sites are located by the crushing
companies.

“I am aware and can
confirm to you that some villages have been completely sacked or
rendered desolate and abandoned due to quarrying activities, whereas
there should be corporate social responsibility by the investing
companies to provide alternative,” Mr Ogunmodede said, adding that the
situation persisted because the affected communities do not have
knowledgeable people like relevant professionals to negotiate on their
behalf, thus the result is “serious and monumental cheating of our
rural inhabitants”.

Click to Read more Financial Stories

Oil drops sharply after bin Laden’s death

Oil drops sharply after bin Laden’s death

Oil prices fell more than 3 percent on Monday after U.S. forces
killed al-Qaeda leader Osama bin Laden after a decade of military operations
across central Asia and the Middle East.

ICE Brent crude futures for June fell $4.22 to a low of $121.67
a barrel before recovering some ground to trade around $122.85 by 0942 GMT.
Last month Brent hit a 32-month high above $127.

U.S. crude slid $2.40 to $111.53. Early futures market volume
was depressed by a public holiday in Britain and several other countries, which
may have added to price volatility, oil brokers said.

The oil market focused on whether the news would help unwind the
risk premium attached to prices because of war in Libya and unrest in the
Middle East and North Africa.

“There’s probably a knee-jerk reaction to the extent that part
of the geopolitical risk has been supported by al-Qaeda, so there will be an
initial sell-off,” said Jeremy Friesen, commodity strategist at Societe
Generale.

Economists including David Cohen from Action Economics warned
that in the near term, Mr bin Laden’s killing might trigger a violent response
by al-Qaeda, but analysts said it was unlikely the network would succeed in
disrupting oil supplies.

The closest al-Qaeda has been to hitting the oil industry was on
February 24, 2006, when Saudi forces repelled a suicide attack on the Abqaiq
oil-processing centre, the world’s largest.

The U.S. Department of Homeland Security (DHS) and the FBI have
not issued any warning of a credible or imminent threat, but President Barak
Obama warned Americans to remain vigilant.

“Temporary”

Thorbjørn Bak Jensen of Global Risk Management suggested the
initial sell-off was unlikely to last.

“We regard the reactions as temporary as nothing fundamentally
new is really on the table. If anything it might be a good idea to secure oil
costs,” he said.

Oil was already down before the bin Laden news, after NATO air
strikes over the weekend killed one of Libyan leader Muammar Gaddafi’s sons and
industry sources said Saudi Arabia raised output in April.

Mr Gaddafi’s youngest son and three grandchildren were killed in
a NATO air strike, the Libyan government said on Sunday. Britain said that
while it was not targeting the leader, it was homing in on the regime’s
military machine.

“What’s happening in Libya is probably an event that will see
Gaddafi moved out of his position, so the risk premium which relates to Middle
East concerns will start to erode,” said Jonathan Barratt, head of Commodity
Broking Services.

Saudi Arabia’s crude oil output edged back up in April to around
8.5 million barrels per day (bpd) from roughly 8.3 million bpd in March as
demand picked up, Saudi-based industry sources said on Sunday.

The dollar strengthened by around 0.2 percent on Monday
following last week’s slide, deterring investors from piling into commodities
this week and triggering a 10 percent plunge in spot silver prices.

Money managers increased their bets on higher U.S. crude oil
prices to a combined record level in New York and London in the week to April
26, data from the CFTC showed on Friday, as U.S. prices rose to their highest
level since September 2008.

Volatility and uncertainty due to the pan-Arab protests and
Libya’s conflict have tempered oil trading. The U.S. 30-day average volume was
down by nearly 130,000 lots compared with the 250-day average at the end of
last week, Reuters data showed.

Click to Read more Financial Stories

Oil drops sharply after bin Laden’s death

Oil drops sharply after bin Laden’s death

Oil prices fell more than 3 percent on Monday after U.S. forces
killed al-Qaeda leader Osama bin Laden after a decade of military operations
across central Asia and the Middle East.

ICE Brent crude futures for June fell $4.22 to a low of $121.67
a barrel before recovering some ground to trade around $122.85 by 0942 GMT.
Last month Brent hit a 32-month high above $127.

U.S. crude slid $2.40 to $111.53. Early futures market volume
was depressed by a public holiday in Britain and several other countries, which
may have added to price volatility, oil brokers said.

The oil market focused on whether the news would help unwind the
risk premium attached to prices because of war in Libya and unrest in the
Middle East and North Africa.

“There’s probably a knee-jerk reaction to the extent that part
of the geopolitical risk has been supported by al-Qaeda, so there will be an
initial sell-off,” said Jeremy Friesen, commodity strategist at Societe
Generale.

Economists including David Cohen from Action Economics warned
that in the near term, Mr bin Laden’s killing might trigger a violent response
by al-Qaeda, but analysts said it was unlikely the network would succeed in
disrupting oil supplies.

The closest al-Qaeda has been to hitting the oil industry was on
February 24, 2006, when Saudi forces repelled a suicide attack on the Abqaiq
oil-processing centre, the world’s largest.

The U.S. Department of Homeland Security (DHS) and the FBI have
not issued any warning of a credible or imminent threat, but President Barak
Obama warned Americans to remain vigilant.

“Temporary”

Thorbjørn Bak Jensen of Global Risk Management suggested the
initial sell-off was unlikely to last.

“We regard the reactions as temporary as nothing fundamentally
new is really on the table. If anything it might be a good idea to secure oil
costs,” he said.

Oil was already down before the bin Laden news, after NATO air
strikes over the weekend killed one of Libyan leader Muammar Gaddafi’s sons and
industry sources said Saudi Arabia raised output in April.

Mr Gaddafi’s youngest son and three grandchildren were killed in
a NATO air strike, the Libyan government said on Sunday. Britain said that
while it was not targeting the leader, it was homing in on the regime’s
military machine.

“What’s happening in Libya is probably an event that will see
Gaddafi moved out of his position, so the risk premium which relates to Middle
East concerns will start to erode,” said Jonathan Barratt, head of Commodity
Broking Services.

Saudi Arabia’s crude oil output edged back up in April to around
8.5 million barrels per day (bpd) from roughly 8.3 million bpd in March as
demand picked up, Saudi-based industry sources said on Sunday.

The dollar strengthened by around 0.2 percent on Monday
following last week’s slide, deterring investors from piling into commodities
this week and triggering a 10 percent plunge in spot silver prices.

Money managers increased their bets on higher U.S. crude oil
prices to a combined record level in New York and London in the week to April
26, data from the CFTC showed on Friday, as U.S. prices rose to their highest
level since September 2008.

Volatility and uncertainty due to the pan-Arab protests and
Libya’s conflict have tempered oil trading. The U.S. 30-day average volume was
down by nearly 130,000 lots compared with the 250-day average at the end of
last week, Reuters data showed.

Click to Read more Financial Stories

European shares hit 2-month high

European shares hit 2-month high

European shares hit
a two-month high in holiday-thinned trade on Monday on optimism the
earnings season will stay strong in the near-term and in a knee-jerk
reaction to news that al Qaeda leader Osama bin Laden was killed.

Mr Bin Laden’s
death in a shoot-out with U.S. forces in Pakistan on Sunday ended a
nearly 10-year worldwide hunt for the mastermind of the September 11
attacks and prompted equity investors to believe global risk threats
might reduce.

Although analysts
said that the positive impact of the news might be short-lived and
focus will soon shift back to economic fundamentals and company
earnings.

At 0735 GMT, the
FTSEurofirst 300 index of top European shares was up 0.3 percent at
1,160.03 points after touching 1,162.05, the highest since early March.
The Euro STOXX 50 — an index of the euro zone’s top blue chips — was
up 0.3 percent at 3,021.50 points.

The UK stock market was closed for a holiday.

“It’s a
psychological and knee-jerk reaction and we have to see how long it
lasts,” said Koen De Leus, strategist at KBC Securities, referring to
the news of Mr bin Laden’s death.

“The market is also
getting support from earnings, which are good. We have some important
economic figures this week that might set the near-term direction.”
Investors awaited the release of the U.S. Institute for Supply
Management’s manufacturing index at 1400 GMT, U.S. jobless claims
figures on Thursday and non-farm payrolls numbers on Friday.

Across Europe,
France’s CAC 40 gained 0.5 percent, while Germany’s DAX rose 0.9
percent to its highest level in more than three years.

“Last week and this
week taken together, more than two thirds of the DAX companies will
report. In these two weeks, the chances for a test of the equity
market’s leeway on the upside will be better than in the weeks to
come,” said Tammo Greetfeld, equity strategist at UniCredit in Munich.

“Going forward, the
newsflow is unlikely to live to high expectations given a number of
burdening factors that have accumulated,” he said, referring to factors
such as a rise in oil prices, more and more central banks raising
interest rates, cyclical indicators which are past their peak, the
catastrophe in Japan and the euro zone debt crisis.

Among individual
movers, Demag Cranes surged 22 percent after U.S. crane maker Terex
said it would launch a takeover offer for its German rival in an 884
million euro bid.

Danish food
ingredients and enzymes maker Danisco gained 4.3 percent after its
board of directors unanimously recommended that Danisco shareholders
accept DuPont’s improved offer for Danisco.

On the downside,
Actelion fell 5 percent after the company said it may appeal against a
jury’s decision in a Californian court to award Asahi Kasei Pharma
Corporation up to $547 million in a dispute with Actelion unit CoTherix.

TNT was down 3.8
percent after reporting a worse than expected performance in its mail
unit, adding to woes in its global express division.

Click to Read more Financial Stories

Ensuring food security in Africa

Ensuring food security in Africa

By most accounts, agriculture is the mainstay of most African
economies, as experts insist that Africa has what it takes to produce food for
its population of about one billion people and even export food to other
regions of the world. The continent, which is blessed with good weather and
geographical conditions, has the capacity to produce food to feed its
inhabitants, all things being equal.

Agricultural experts, however, note that some regions of the
world, including Africa, have been experiencing a food crisis, as global food
prices spiralled upwards, partly because of rising fuel prices, among other
factors.

The rising food prices have elicited a lot of concern from
observers and agencies such as the World Bank, whose Food Price Index is
currently around its 2008 peak.

Since June 2010, an additional 44 million people fell below the
1.25-US-dollar poverty line as a result of higher food prices, says the latest
edition of World Bank’s Food Price Watch.

The situation may even get worse, as simulations show that a
further 10-percent increase in the food price index could lead to 10 million
people falling into poverty, while a 30-percent increase could increase poverty
by 34 million people.

African economies

However, the situation varies from country to country. The World
Bank publication indicates that low-income and lower-income countries are
experiencing an average 5 percent points’ higher food price inflation, when
compared to better-off countries. A special focus on the Middle East and the
North African region in the publication reveals a double-digit food price
inflation in Iran,

Egypt and Syria, with more moderate levels in other parts of the
region. In spite of the gloomy picture, experts, nonetheless, insist that
Africa has the wherewithal to produce abundant food, attain food security and
even export food to other continents. Calestous Juma, a professor of the
Practice of International Development, Harvard Kennedy School in the US,
belongs to this school of thought.

He stressed that agriculture remained the strength of most
African economies, adding that if agriculture was given priority attention in
Africa, the region had the capacity to withstand the vagaries of rising global
food prices.

Mr Juma, who said this at the recent IMF/World Bank Spring
Meeting at Washington DC in the US, stressed that African leaders should focus
their attention and energy on how to use agriculture to foster the region’s
development.

“Agriculture and economy are one and the same, in the sense that
the African economy is driven by agriculture,” he said, adding:

“Therefore, the countries’ ministers of agriculture ought to be
the presidents to enable them to effectively coordinate agricultural activities.”
Mr Juma reiterated that the rising food prices in Africa could be effectively
curtailed if there was a pragmatic focus on agriculture.

Develop agriculture

Sharing similar sentiments, Ngozi Okonjo-Iweala, the managing
director of the World Bank, urged African leaders to focus more attention on
developing their countries’ agricultural sectors, while making pragmatic
efforts to boost food production.

“I think African countries really have to sustain their efforts
to use agriculture funds to ensure food security,” she said.

Mrs Okonjo-Iweala stressed that the global food crisis had been
haunting the world, adding, however, that virtually all the African leaders had
come to realise the pivotal roles of agriculture in efforts to boost the
economy.

Agnes Edmond, an agriculturist, supported Mrs Okonjo-Iweala’s
sentiments but insisted that greater efforts should be directed at expanding
the people’s access to credit facilities for agricultural ventures.

She noted that most African farmers were hamstrung by their lack
of access to agricultural funding, adding that issues regarding the land tenure
system should also be examined.

“Africa has a lot of contentious issues. Corruption should be
checked, the land tenure system should be properly managed, while farmers
should have little difficulties in accessing credit for farming activities,” Ms
Edmond said.

Click to Read more Financial Stories

‘Bank lending should rise this quarter’

‘Bank lending should rise this quarter’

Bank lending should rise significantly in the second quarter of the financial year once the April 2011 elections, which have prompted a slowdown, are over, according to Bisi Onasanya, group managing director and chief executive officer of First Bank Nigeria.

Mr Onasanya told Oxford Business Group (OBG), a consultancy firm, that financial risk exercises undertaken last year by the Central Bank of Nigeria (CBN) and the April elections had both contributed to a dip in loan growth.

Figures show that lending growth turned a corner to reach 5 percent by the end of last year after plummeting in the wake of the 2008 global financial crisis, which was exacerbated in Nigeria by troubles in the domestic banking sector.

“Lending growth was suppressed last year, partly due to a conservative response from banks following the stress test which the CBN conducted in 2010,” he said. “The elections are slowing loan growth for the first half of 2011, but there will be a major increase after elections in April. I expect loan growth of 10 percent in 2011, which is double the 5 percent figure for 2010.”

Businesses face challenges

Mr Onasanya acknowledged that businesses in Nigeria still faced an uphill struggle to obtain credit from banks, despite CBN Governor Lamido Sanusi’s high-profile campaign to encourage growth by stimulating Small and Medium Enterprise financing. He believes banks are unlikely to increase lending to smaller businesses, which are viewed as a higher risk than big corporations, unless lending rules are relaxed.

“Although SMEs have access to some credit, the risk tolerance limit is too high,” he said. “The banks can’t be blamed since they have to meet provisions when the CBN tests their portfolios. The government and the Central Bank should consider implementing risk sharing to increase the flow of credit to higher risk areas.” With bidding for Nigeria’s unhealthy banks drawing nearer, Mr Onasanya highlighted the importance of ensuring that the selling process was clearly laid out in a framework if legal wrangles and lengthy court cases were to be avoided.

Ten of Nigeria’s banks are up for sale after they failed to meet standards set out in an audit undertaken by the CBN in the wake of the 2008 crisis. The move is set to bring consolidation to the sector, with observers expecting the process to reduce the number of players to 15.

“Due process must be followed involving the boards of directors and shareholders,” he said. “Otherwise, if the distressed banks are sold by the CBN rather than by the actual owners, each acquisition will go into irreconcilable litigation.”

Click to Read more Financial Stories

Kwara evacuates corps members from Bauchi

Kwara evacuates corps members from Bauchi

The Kwara State
government has evacuated corps members from the state serving in some
northern states in the country. Some of the corps members were attacked
during the riots that broke out in the wake of the presidential
elections, leaving them stranded and traumatised. The secretary to the
Kwara State government, Saka Abimbola Issau said yesterday that youth
corps members of Kwara State origin currently serving in Bauchi State
have been brought back to Ilorin, the state capital.

“The state government placed high premium on the lives of its citizens, irrespective of where they live,” he said.

They arrived in Ilorin on Monday night and have since joined their families.

“The government
thanks parents and guardians of the corps members and other well
wishers for their patience and understanding during the evacuation
exercise and assure them of the government’s readiness to cater for the
welfare of its citizens at all time,” Mr Issau said.

The coordinator of
the state’s corps members serving in Bauchi State, Abubakar Rafiu also
expressed the appreciation of his members to the state government over
the evacuation programme and pledged their continuous loyalty to the
government of Nigeria.

He said his colleagues always prayed to God to intervene in the crisis so that peace would return to the region.

Bad experience

Some of the
affected corps members expressed their displeasure over the incident.
Bello Saheed Olanrewaju, a graduate of the Kwara State polytechnic who
was deployed to Alkaleri Local Government Area of Bauchi State, said:
“The crises erupted as a result of the outcome of the various elections
conducted in the state, with opposition parties challenging the victory
of the ruling People Democratic Party (PDP).

“We were rescued by
the local government inspector in Alkaleri Local Government Area who
sneaked us into the 301 Artillery barracks in Bauchi, where we spent
two days before joining a bus to Jos, Plateau State and finally to
Ilorin,” he said.

Owolabi Bolaji, a
corps member deployed to Misau Local Government said: “our lodge was
set ablaze by the protesters and we quickly find rescue with the State
Security Service (SSS) officials in Bauchi. We spent two days there and
later added another two days at the Army barracks in Bauchi before
finding our way down to Ilorin.

“It was a terrible experience. We call on the Federal government to
look into the welfare of the corps members across the country so as to
ensure the survival of the scheme.”

Click to Read More Latest News from Nigeria

Doctor wants medical education promoted in Nigeria

Doctor wants medical education promoted in Nigeria

If the country’s health sector is to be in tune with 21st century health practices as practised in developed countries, a focused political leadership and self-development by medical practitioners must be vigorously pursued.

The founder of Ashanti Graham Health and Education Initiative Foundation (AGHEIF), Douglas Okor, made this known yesterday at a Continuing Medical Education (CME) programme organised by the foundation in collaboration with the Edo State chapter of the Nigerian Medical Association (NMA).

He also stressed the need to build institutions, and not personalities, to achieve the country’s vision of becoming one of the leading 20 nations by the year 2020.
According to Mr Okor, the leadership crisis in Nigeria would have to be resolved for the country to attain her Vision 20:2020, of which health is paramount.

“Our vision is 21st century healthcare for Nigeria, like the kind of healthcare you have in developed countries and by our projections, in the next 15 to 20 years, we will have that kind of healthcare.

“We have all it takes in Nigeria to get to where we want to be, but what is lacking is the people to get us there. We lack the people for direction and that is what we are now preaching, that we need leaders.”

Leadership factor

“We are talking about building leaders at the level of undergraduate students, building students at the level of postgraduate students, building leaders at the level of heads of departments and parastatals.” According to Mr. Okor, who is the first neurosurgeon graduate from the University of Benin, the just concluded general elections have raised the hope of Nigerians for getting the right leadership.

“The last election in Nigeria gave us great hope. A revolution has begun, we need to inspire leaders that have the passion to make the change and that will drive people to live up to the stage. We have to build institutions that do not depend on one man but on a process. We need to develop the human capacity. Nigeria is a mega-rich country but we need the right leadership to allocate our resources appropriately. Anybody who tells you that there is no fund in the country, that person is lying.

“The Edo State chairperson of the NMA, Philip Ugbodaga, had in his welcome address described the CME as “the cornerstone for healthcare delivery and a vehicle for improving our health indices.” This, he said, was why regulatory agencies all over the world, including the Medical and Dental Council of Nigeria (MDCN), insist on CMEs as a prerequisite for the renewal

Click to Read More Latest News from Nigeria

Action Alliance protests omission from ballot papers

Action Alliance protests omission from ballot papers

The Action Alliance
(AA) in Oyo State on Tuesday protested against the exclusion of its
logo from the list of political parties which appeared on ballot papers
in the last elections.

The Oyo State
chairman of the party, Babatunde Anifowose-Kelani, who led some other
party officials to address a press conference at their Ibadan office
yesterday, sought the support of all Nigerians to fight the alleged
injustice.

In a speech
presented to the press, the party chairman accused the hierarchies of
the Independent National Electoral Commission (INEC) of conniving with
some expelled members of the party to ensure that the AA was not
registered by the electoral body.

According to him,
despite fulfilling all the laid down rules of the electoral act on
party participation in elections at record time, the INEC still denied
them the right to be part of the April poll.

“The nominations
were concluded but when it was time for submission, INEC refused to
accept the completed forms it gave out to us earlier on a trump-up
excuse that there existed a crack in our national exco.

“It was, however,
discovered that INEC was acting out a script by a cabal within the
commission. They sponsored non-members to camouflage as national
officers of AA so as to make it look as if there was a crack.

“We tried to make
them see the truth that we have no crack in our party but they would
not listen. Investigation has, however, revealed that some charlatans
within INEC are conniving with some powerful but disgruntled
politicians who were members of our party up till 2006 to get Action
Alliance deregistered so as to ensure their illicit activities while in
AA is covered up,” he alleged.

Mr Anifowose-Kelani
further alleged that all court orders the party obtained and served on
the electoral body with respect to the attempts to deny them
participation were ignored.

He said as far as he and the party are concerned, there were not elections in Oyo State.

According to the
chairman, Oyo is the strongest base of the AA, adding that they fielded
candidates in almost all the electives post available in the state.

But to his
consternation, the logo of the party was missing in the ballot papers
for the elections, except that of the state House of Assembly.

Against the constitution

Mr Anifowose-Kelani
said the case of the systemic exclusion from the elections was already
in court and would be followed to a ‘logical conclusion’.

He also debunked
the rumour that the state leadership had collected money from some
individuals to play spoilers role in the victory of the Action Congress
of Nigeria (ACN) in the elections.

“It is not true
that we collected money for this struggle. We were already in court
before the elections were conducted. It is not that we are just
starting now. I even expect the beneficiary of this injustice to join
in this crusade because it could be their turn tomorrow,” he said.

Click to Read More Latest News from Nigeria