Archive for nigeriang

Nigerian interbank rates drop lower on budget flows

Nigerian interbank rates drop lower on budget flows

Nigerian interbank lending rates
eased to 1.16 percent on average this week from 7.33 percent last week after
about 390 billion naira in monthly budgetary allocations to states and local
governments was injected into the system, traders said on Friday.

The secured Open Buy Back (OBB)
eased to 1.05 percent from 6.5 percent, after initially dropping to 1.10
percent on Wednesday when part of the funds hit the system.

Overnight placement fell to 1.20
percent from 7.50 percent, while call slipped to 1.25 percent from 8.0 percent.

The finance ministry announced
the disbursal of 750 billion naira from the federation account to the three
tiers of government — federal, state and local — on Monday, but part of the
funds meant for states and local governments came into the system between
Wednesday and Thursday, helping to ease the tight liquidity in the market.

“The system closed with a
surplus balance of about 310 billion naira, this is more than sufficient to
keep the system liquid for the coming week,” one dealer said.

Banks in sub-Saharan Africa’s
second biggest economy depend largely on monthly cash inflows from budgetary
disbursals to its agencies to fund their operations.

Africa’s biggest energy producer
shares oil revenues between federal, state and local governments each month in
order to pay salaries, fund development projects and keep government running,
providing the bulk of liquidity in the economy.

The federal government’s portion
of the funds is kept with the central bank, while that of the other two tiers
goes in the accounts with retail banks.

Dealers said the cost of
borrowing among banks could remain stable next week despite plans by the
central bank to sell treasury bills at the secondary market in a bid to reduce
the impact of excess liquidity on the economy.

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KOWA Party leaders promise new politics

KOWA Party leaders promise new politics

Nigerians should be part of the
on-going political renewal in the country by embracing membership of
political groups, rather than complaining or criticising those
involved. The national president of Kowa party, Umar Mustapha, said
people’s bias against the political class, which made them to tag
politics a dirty game, means some few have been allowed to hijack the
system to lord it over others.

“KOWA party has emerged as an
alternative political movement, driven by the deeply felt desire and
sense of public duty of hitherto non-partisan Nigerian professionals,
entrepreneurs, development practioners, faith community leaders, civil
society activists, media practitioners, academics, and youth leaders to
organise collectively for turning Nigeria in a new direction,” Mr.
Mustapha said.

He said Nigerians must learn to demand
more from their leaders, saying these people have failed a nation of
strong and hardworking people.

“Nigeria is at a crossroads. The
quality of life is at its lowest, and our future and that of our
children are at risk,” he said.

The party leader however, said
Nigerians cannot afford to shun political activities and still support
the ‘one man, one vote’ campaign that the civil society is clamouring
for in the country. He called on Nigerians to join political groups
such as KOWA party, a people-party funded by the people.

“When few people are involved in the
funding of activities of a political party, then majority of the people
cannot be involved in the decision making or question how things are
done. So, the people need to know that they need to take over what is
theirs and contribute towards its development,” said Oluremi Sonaiya, a
professor of Foreign Languages at Obafemi Awolowo University, Ile-Ife,
and Public Relations Officer of the party.

Founded in June, 2009, the party said
its developmental plans goes beyond 2011 election to include
participation in the entire election, by using its political platform
to contest election and also monitor the entire political process.

The National Secretary of the party,
Olalekan Awogbemila, said the membership drive is for individuals
interested in contributing towards the development of Nigeria –
especially ordinary Nigerians on the streets, whom he said should stop
relegating themselves to merely watch how things happened without
prejudice to their financial status.

New progressive parties

KOWA party is one of a new group of
progressive parties fighting for space ahead of next year’s election.
Others include the Congress of Progressive Change (CPC) and the Social
Democratic Mega Party (SDMP). Presently, the Independence Electoral
Commission still has just 37 political parties listed on its websites.

Nigerians are also wary about the likely impact of the new parties, with the elections so near.

Lagos lawyer and Action Congress
member, Jaiye Alabi, said: “It is an odd thing to say that some names
you hear are political parties. Every day, they register new parties
and you wonder if even you can ask the INEC people themselves to
mention their names off hand. They can’t.”

Recently, Protem Chairman of the SDMP,
Pat Utomi, also asked the ranks of progressives in Nigeria to unite and
save Nigeria from the aimless drift into poverty which, he said, is
increasing on a daily basis in the country.

“History would hold the progressive
elements and leaders of the opposition in permanent contempt if they
fail to rally and take advantage of the fact that PDP has become
unelectable, as they now are largely a Poverty Distribution Party,
rather than a political party,” he said.

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PDP did not formalize zoning, says Osuntokun

PDP did not formalize zoning, says Osuntokun

Former Special
Adviser to President Obasanjo on Political Matters, Akin Osuntokun, is
one of the promoters of the reform group within the PDP. He speaks on
the ongoing debate about the zoning arrangement within the party and
the activities of the reform group

Need for electoral reform ahead 2011 elections

Our march to
democracy since 1999 has not been bad, though there are some hitches
and hiccups here and there. One thing the National Assembly should do
as part of the electoral reform process is to insert in the
constitution the need for the president to transmit a letter to his
Vice in case of impairment or incapacitation. When this is done, the
kind of experience we faced when the late president Umaru Musa Yar’adua
was sick and had to go to Saudi-Arabia and then came back before he
died will not arise. But so far, we have not done badly since 1999.
Definitely we would have gone very far if some mistakes were not made
in the past which truncated democracy and paved the way for the
military to continue their stay in the office.

The sudden emergence of the PDP reform

It is
self-explanatory, even at the level of individuals. If you discover
that you need to take some medication to improve something in your body
or system, you are free to do it. But to come to your question, there
is nobody in the PDP today who does not know that the party needs
internal democracy. The overbearing influence on the party, especially
from the Governors Forum, is something that members are worried about.
We are looking for a situation where imposition of candidates into any
elective position is totally abolished. Reform is not a new thing and
even in Britain’s Conservative Party, they have embraced the concept of
reforms. It is meant to bring an improvement into the party so that the
dreams and visions of the founding fathers will not be lost.

The controversy over the zoning agreement within the PDP

What happened was
that a caucus within the party met and discussed the issue of zoning,
but it was not formalized and is not binding .The decision to zone the
presidency to the south in 1999 was to assuage the feelings of the
people, especially in the south west as a result of the annulment of
the June 12,1992 election. It was because there was no binding
arrangement about this that made people like the late Abubakar Rimi to
contest the 1999 and 2003 presidential elections.

And now that the
current president is there and is duly qualified, especially as the
region (south -south) he represents has never produced a president,
either through the military or civilian, he should be given the chance.
This will ensure smooth relationship among the various ethnic divides
in the country. Reports that former president Obasanjo’s men dominated
last PDP reform meeting Look, I am 48 years old. There are some who are
50 years and above who came there for the meeting. I have my own
independent mind.

It was just sheer
blackmail and they did that to attack the current president. People are
just using the media to blackmail others and unfortunately, the press
is yielding cheaply into their hands. Nobody at that meeting, to the
best of my knowledge, took permission from Obasanjo to be there. It was
purely in the interest of the party and nobody was a target.

Advice for the president regarding free and fair elections

He has said that in
many fora that free and fair elections shall be his priority. There
will even be greater burden on him if he decides to run because people
will now use that to test his sincerity. There is no doubt that the
country needs free and fair elections for the system to be viable and
strong politically and economically.

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Justice minister confirms Okigbo Report

Justice minister confirms Okigbo Report

The Office of the
Minister of Justice and Attorney-General of the Federation, Mohammed
Bello Adoke (SAN), has confirmed the authenticity of the certified true
copy report of the Pius Okigbo Panel, re-submitted to the Federal
Government in Abuja some weeks ago by a group of civil society
organizations.

Mr. Adoke, on
Thursday, affirmed the genuineness of the report in a response made
through his Special Assistant on Media and Special Duties, Onyema
Omenuwa, to NEXT on Sunday correspondent’s enquiry at the Justice
Ministry.

In spite of the
confirmation of the genuineness of the report, the former military
president, Ibrahim Badamasi Babangida, whom the report seeks to indict
for mismanagement of public funds, said he is undeterred in his resolve
to contest and obtain the presidential ticket of the Peoples Democratic
Party in 2011.

Justice Minister’s statement

In a letter, dated
May 12, 2010 and addressed to the 10 CSOs working to ensure the
prosecution of former military President, Ibrahim Badamasi Babangida on
allegations of mismanaging about $12.4 billion Gulf War oil earnings,
the Attorney General acknowledged the receipt of Okigbo report and
promised to take action on the report.

“As appropriate, I
shall set up a committee that will confirm the authenticity of the said
report and also review the allegations and recommendations contained
therein, with a view to ascertaining whether these allegations can
sustain a criminal charge,” Mr. Adoke wrote.

Signatories to the
petition were the: Socio-Economic Rights and Accountability Project,
Women Advocates and Documentation Centre, Access to Justice, Committee
for Defence of Human Rights, Civil Society Legislative Advocacy Centre,
Partnership for Justice, Human and Environmental Development Agenda,
Nigeria Liberty Forum, Nigeria Voters Assembly, and Centre for the Rule
of Law.

Mr. Babangida’s reaction

In a response sent
by the Media Assistant to Mr. Babangida, Kassim Afegbua, the former
military President did not only deny being indicted by the report but
he also subjected the authenticity of the report to ambiguity and doubt.

“What the
Attorney-General said in his response to the petition is unambiguous:
that the government will try to ascertain whether that is the true copy
of the Okigbo Report,” he said. “The whole concept of civil society
organizations bringing signed copy of a Federal Government Report to
government raises a lot of curiosity and mischief on the part of the
civil societies. I have not seen a situation where a government will
set up a panel, only for report to be given to it (government) by
unknown bodies.

“Despite all the
clear-cut attempts to rubbish the good name of General Babangida by
this gang of sinuous fawns who want to play the ‘angelic’ role as civil
societies. I am yet to find anywhere in the whole wide world where
these organizations have rendered account of their own grants from
foreign countries in the years of their existence. This is our
challenge to all of them.”

No controversy, no ambiguity

Mr. Adoke, however,
has cleared the air saying there is no misunderstanding, doubt or
controversy, whatsoever; over the authenticity of the report he
received. He added also that there is no ambiguity whatsoever in his
formal response and promise to see how the allegations can sustain
prosecutions.

Asked to clear
whatever ambiguity was inherent in Mr. Adoke’s statement, Mr. Omenuwa,
a lawyer and journalist, said there was no ambiguity in the statement.

“The Minister’s
statement was very clear and unambiguous,” he said. “He promised to set
up a committee that will confirm the authenticity of the report and see
how the allegations could be sustained for a criminal prosecution. If
you were to defend a person as a spokesperson, would you see anything
different to say than argue that the report is not genuine? What is not
genuine about the report?

There is no
ambiguity, whatsoever. It is just a matter of language.” Asked when the
Justice Minister will be inaugurating the committee he promised to set
up on the report, considering especially that Mr. Babangida is already
campaigning for the 2011 presidential election ticket of the Peoples
Democratic Party, Mr. Omenuwa said Mr. Adoke will address the nation as
he has always done once everything is put in the right place.

In spite of the
negative impacts of the challenges on his presidential ambition, Mr.
Babangida has promised to weather the storm; even as he has been
scheduled by his aides to present a state of the nation address at a
summit in Kaduna State on Saturday June 5, 2010, where he will also
unveil his vision for a national rebirth.

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Beating the high failure rates

Beating the high failure rates

Determined
to beat the odds in the increasing high failure rates in senior
secondary external examinations, a group of students of the Air Force
Secondary School, Ikeja, experimented with a new method of examination
preparations.

They took advantage
of the practice offered by a new indigenous online examination
preparation web portal, Testafrica.com, which enabled them improve on
speed and accuracy. The results were astounding.

“I decided to try
it for my students after hearing about it, and at the end I believe
that the test bailed my students out,” said Olufemi Obakoya, the
examination officer of the school.

Iyanuoluwa Oni,
whose JAMB score of 296 has comfortably positioned her to realize her
dream of studying Medicine and Surgery in university, is one of the
students.

“The countdown
system of the online tests really helped me improve my speed, and also
gave us a hint of the kind of questions to expect from JAMB,” she said.

Addressing their inadequacies

Concerned with the
need to reverse the trend of recent high rate failures in secondary
school external examinations, a research and technology firm, Liquid
Domino Ltd, launched www.testafrica.com, an online examinations
preparation portal for students gearing up for WAEC and JAMB
examinations.

“We did some
research and realized that education is losing its substance, and kids
are failing more,” said Obinna Nwabineli, a director of the company.
“In our research, we found out that it’s not that kids are not smart
enough. Rather the problem is time management, inadequate preparations,
etc. So we came up with this initiative to help them prepare for exams.
Secondly, we realised that the future of examinations is online-based
so we need our students to become more familiar with the web.”

The website offers
real time tests where candidates are timed according to the real
examinations. Past questions for WAEC and JAMB from 1978 to 2008,
totalling over 20,000, are available. Registration is free, while
candidates are expected to purchase a ₦500 pin number that grants
access to 10 tests.

“Another advantage
is that it gives parents the real time opportunity to be involved in
assessing their children and know where their deficiencies might lie,”
said Mr Nwabineli.

Peter Chukwu, an
educationist, lauds the initiative, and believes that such projects by
the private sector would effectively position the students to make a
smooth transmission to the web-based examinations that will soon take
over from the traditional paper-based era.

“I learnt that JAMB
will soon be taking the examinations online, maybe from next year, and
the question is how many Nigerian students, especially in public
schools, are very familiar with the Internet?”

Building familiarity

Enyinnaya Opara, a
first year Medicine student at the University of Lagos, who used the
web portal during her preparations for last year’s entrance
examinations, accepts that the tests greatly improved her preparations
for last year’s JAMB examinations so much so that she has introduced
her younger siblings to the website.

“With the
experience I had from taking the online tests, I found out that so many
questions in the actual exam became familiar,” she said. “The
preparation proved really helpful, and showed in my JAMB scores.”

The students of Air
Force Secondary School, Ikeja, who used the Testafrica platform
unanimously agreed that the online tests heightened levels of
concentration, and subsequently enabled them become familiar with the
pattern of questions.

Overcoming the speed factor

However, the
inability to finish on time has been identified by most of the students
as their greatest albatross; a factor that the online platform enabled
them address. During the online mock tests, the web portal closes down
after the given time elapses.

“The test improved
their speed and, therefore, helped them during the actual examination
to finish in time,” said Mr Obakoya. “Despite the high failure rate of
41 per cent for the exams, my students recorded an impressive pass
rate.”

Henry Ejiogu, who
equally applied to study Medicine in university, said he was intrigued
and challenged by the speed management system in the platform.

“Testafrica.com
helped me mostly in my speed and accuracy because it was more difficult
answering the questions online,” he said. “The major problem that most
of us have is speed, so the preparation online helped us improve
tremendously.”

Best brains for 2010

In a bid to also
encourage secondary school students who might be financially challenged
in pursuing their graduate studies, Domino Ltd announced that it would
soon launch an annual national scholarship scheme, ‘Best Brains.’

According to
Azunnaya Okereke, the project director of Testafrica.com and CEO of
Liquid Domino, the scheme is open to students across the country, and
aims to reward the winners with various tuition-based prizes. The
overall winner will earn a four-year tuition of up to ₦1 million per
session at any university of his/her choice in Nigeria and/or Ghana,
plus a laptop.

“Two hundred and
forty nine runners-up will also be rewarded with scholarships (covering
Tuition, Library, Faculty, GNS & Departmental Fees) plus a laptop
each,” said Mr Okereke. “The scholarship will start in June. This is
our own little way of giving back to the society, especially to these
children, and also encourage the revival of education in the country.”

Ms Oni is confident of clinching the first prize, and is sounding a note of warning to fellow contestants.

“I can’t wait to try my hands at the prize, and I strongly believe that I will win it,” she said.

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Drug peddling on the rise

Drug peddling on the rise

The recent arrest
of a deportee, Ene Patrick, 34, and eight others for allegedly
smuggling about 11.45kg of illegal substances have further confirmed
experts’ worries on the rising cases of drug trafficking in the country.

These concerns
follow the incessant arrests made by the National Drug Law Enforcement
Agents (NDLEA) officials at the Murtala Mohammed Airport 1 (MMA1) in
the last few months.

The NDLEA Airport
command in a statement on April 6th, said the agency seized a total of
52.845kg of illicit drugs at the MMA1 in April alone worth over
millions of naira.

Government’s laxity

Investigations
revealed that more than ten people were arrested with about 70
kilogrammes of narcotics at the MMA1 between January and March 2010.

Darlington
Ajitenisan, a drug counsellor and broadcaster, said illicit drug
trafficking is on the rise because government treats the issue with kid
gloves.

Mr. Ajitenisan, who
expressed worries over the trend, said he had constantly through his
ministry as a pastor and counsellor preached against the dangers of
illicit drugs and their effects especially on youth.

“It is sad that the
government always talk about illicit drugs and they proud themselves in
the number of arrests they made but what happened at the end of the
day, the real kingpins, who are the barons are hardly arrested. Right
here at Egbeda (a Lagos suburb) where I live, some youth pride
themselves in taking hemp and cocaine.

“They sell the
drugs in broad daylight and when I tried to talk them out, they went as
far as burning me alive in my church, it was God who saved me. When I
reported the matter to the police, they treated it with kid gloves and
up till now that spot where they sell illicit drugs is still thriving
with even policemen and soldiers coming to smoke hemp there. So what
are they saying about arrest; where right under their nose, people buy,
sell and smoke hemp, Egbeda is not the only place there are so many in
Lagos and the police and the NDLEA have not done anything, “ said Mr.
Ajitenisan.

More peddlers

According to a
statement by the NDLEA, the figure shows that more women are engaging
in drug trafficking and the sad outcome is a family who had used their
6 year old twin sons to have allegedly trafficked cocaine worth over
N20 million in April.

Investigations also
revealed that in the first quarter of the year seven women were
arrested; while thirteen male were also arrested.

This figure increased sharply when in April alone a total of 21 suspects, eighteen male and three women were arrested.

The total seizure for the first quarter stands at 70.98kg as against 52.84kgs of last year; revealing an increase of 18.14kg.

Jimoh Bashiri, his wife, and their twin sons were the first family to be arrested in April.

According to the
NDLEA spokesperson, Mitchell Ofoyeju, “The 46 year old father Jimoh
Oladega Bashir was alleged to have connived with his wife Jimoh Mulikat
Adebukola in concealing 350 grammes of cocaine each on the diaper of
their 6 year old twins. The wife also concealed 3.350kg on her bra and
under wear which brought the total quantity of cocaine to 4.050kg.

The couple will now
face multiple charges because of the nature of their case. Besides
being the first family to be nabbed over cocaine trafficking in the
country, they are also the first to use their twins in smuggling
cocaine. The likely charges hanging on their necks include unlawful
possession and exportation of 4.050kg of cocaine, money laundering as
well as child abuse for using their six years old twins in cocaine
smuggling,” Mr. Ofoyeju said.

Also arrested in
March was a three month old pregnant woman, 29 year old Osatohamen
Esohe, who ingested 27 wraps of cocaine weighing 350gramme.

Mr. Ofoyeju said
despite the numerous arrests made by the agency, drug peddlers had
continued to devise nefarious means to conceal drugs. Some of their
methods include, concealing hard drugs in bras, foodstuffs, under
wears, diapers, stethoscopes, hair, vagina and anus, shoes, seminar
bags and shoe laces.

Speaking on the recent arrest, Mr. Ofoyefu said the NDLEA is
determined to halt illegal drug trafficking with the prosecutions of
the suspects, adding that this will deter others from engaging in the
crime.

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Politics of budget benchmarks

Politics of budget benchmarks

It is left to
conjecture whether last week’s stalemate among members of the
Federation Accounts Allocation Committee (FAAC) could be blamed on
fiscal recklessness on the part of the nation’s economic managers, or
attributable to legislative incompetence on the part of the National
Assembly, or both.

The late President
Umaru Yar’adua, had last November proposed a N4.079 trillion “fiscal
stimulus budget” for year 2010, computed on assumptions pegged on oil
benchmark of $57 per barrel and production capacity of 2.088 million
barrels per day (mbpd).

However, in the
wisdom of the National Assembly, the final appropriation for 2010 had
to be reviewed upwards to about N4.9 trillion, with the assumptions on
benchmark oil price adjusted to $67 per barrel, while average daily oil
production capacity was raised to 2.35 mbpd. But, not a few Nigerians,
who understand the unpredictable behaviour of oil prices, faulted their
optimism and the wisdom to tamper with the initial proposal.

Unrealistic estimate

Oladiran Fawibe,
executive chairman, International Energy Services Limited (IES), said
then that the new benchmark price was high and unrealistic, considering
the volatility in prices at the international oil market, arguing that
it could have been safer if it was pegged at between $50 and $55 per
barrel.

With oil price
hovering at about $80 per barrel at the time the budget was passed,
perhaps, their estimation was that an average of about $20 accrual in
the nation’s Excess Crude Account (ECA) from the export of every barrel
of oil daily indicated in the budget would be enough to justify the
increase.

Going by recent
revelation that each member of the House of Representatives is asking
for an increase in his quarterly financial allocation from N27million
to N42million, while their Senate counterparts are demanding for about
N100million, analysts say the decision to adjust the assumptions in the
budget may have been influenced more by political considerations than
anything else.

Besides, the
continuous dependence on the ECA by the three tiers of government has
also affected the drive for alternative sources of revenue to handle
developmental activities. In recent times, the ECA has become the last
resort for governments for augmentation in budget in times of economic
difficulties. As at July 2009, the foreign component of the account,
which had a balance of over $20.01billion at the beginning of the year,
had gone down to about $11.2 billion.

Augmentation and more augmentation

By October, the
figure came down to about $9.2 billion after about $2 billion was
withdrawn as stimulus package for the economy in the wake of the
Central Bank of Nigeria (CBN) reform agenda in the banking system. Remi
Babalola, the minister of state for finance, told journalists last
January that about $5.5 billion was withdrawn from the account to
augment the shortfalls in the budgeted revenue during the year.

Between July and
December, the domestic ECA, which had a balance of about N322 billion,
was run down to about N1.47billion, attracting an alarm by the Revenue
Mobilisation Allocation and Fiscal Commission (RMAFC) against attempts
by the three tiers of government to deplete the account.

In spite of this,
another N51.85 billion was withdrawn as budget augmentation for January
this year; another $2 billion the following month, and $1.5 billion
last March for the same purpose. At the FAAC meeting last week, Ibrahim
Dankwambo, the accountant general of the federation, had said that the
balance in the account, prior to the disbursement of about N339.627
billion to augment the arrears of allocation to the three tiers of
government for January to April stood at about $5.193billion. A
breakdown of the figures indicates that about $4.6billion is in the
foreign excess crude account, while N89billion is in the domestic
excess crude account.

The rejection of
the FAAC technical committee recommendation that members shared the
allocation of N498.3billion for April alone and allow the arrears of
N736.985billion for January to March to be paid subsequently over the
course of the year, because of insufficiency of balance in the ECA to
support any augmentation merely threw up a controversy about the
fallacy of the assumptions in the budget.

Did the nation’s
economic managers not anticipate that the country would get to the
stage where the ECA would not be able to support the profligacy of the
government at all levels?

But, indications
are that the nation ran into the crisis because the law makers took for
granted that oil price would nosedive from the levels above the $80 per
barrel threshold attained early this year to where it is today.

As at last Wednesday, the price of Organisation of Petroleum
Exporting Countries (OPEC) basket of crude crashed to $66.84 per
barrel, the lowest level since January, before rising marginally to
$68.21 the following day and $70.48 on Friday, apparently as a result
of the order by the United States that British Petroleum (BP) should
shut down its operations in the Gulf of Mexico following the spill
accident involving its offshore oil production facility in the area.

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PERSONAL FINANCE: Thinking of buying a property?

PERSONAL FINANCE: Thinking of buying a property?

Buying a property is likely to be one
of the most significant investments you will ever make; it also comes
with much excitement and emotion. Whether you are a first-time buyer,
or someone who has bought and sold several times, real estate investing
is very involving and requires thorough research, careful planning and
attention to detail. Here are some steps to guide you as you consider
investing in real estate.

Be realistic and stay within your budget

Most people have to borrow to buy
property. Your financial history will be key to your securing a
mortgage so it is important to get your finances in order before you
apply. Be realistic about your financial situation and be clear about
how much of a down payment and monthly mortgage payments you can
actually afford before you start pouring over all the beautiful homes
that you’ve been dreaming of.

An online home mortgage calculator is a
useful tool that will help you to determine your borrowing capacity.
You can input your loan term, interest rate and loan amount to deduce
the monthly repayment amount. Remember that spending more than you can
afford can cause a huge strain on your finances; if you default on your
mortgage, you could face foreclosure. If you can’t really afford to buy
a house just yet, there is nothing wrong with renting.

Try to get a pre-approval

It is useful to approach your lender
and run some numbers in order to obtain a loan pre-approval. Whilst
this is just a first step in the whole process, it will give you an
indication of what credit you can realistically obtain within your
budget; with these numbers in hand, you can start to take a look at
homes within your price range. A pre-approval also provides the added
comfort that when you finally identify the right property, you should
be able to quickly put the financing in place.

Identify a good estate agent

Choose your real estate agent
carefully; a tested, dependable, responsive and experienced
professional who comes recommended, will make the whole process easier.
A good agent can bring their experience and expertise to bear as they
should have sound market knowledge and be a good source of useful
current information and trends in the housing market. Interview some
agents and work with one that you feel comfortable with. Your estate
agent will discuss your requirements, likes and dislikes and preview
several properties in order to narrow down choices based on your
selected criteria.

Location, location, location

We’ve all heard the adage “location,
location, location.” The value of property is largely dependent upon
its location. Neighbourhoods change; market conditions, community
issues, the local economic and political environment, poor enforcement
of regulatory policies; these can all affect an area adversely and
diminish property values considerably and are critical to the success
or failure of such an investment.

Good schools, as well as a proximity to
shops, the business district and other important destinations, will
have a huge impact on the resale value of your property. Repeated
visits to your neighborhood of choice at different times of the day,
will give you a good feel and help you to come to a decision. As far as
possible, try to do some research on the areas current prospects as
well as about plans for it over the coming years; this will help you to
avoid buying a property that may not be in demand in future.

Arrange an inspection

Home inspections are important because
they determine the condition of the property and any repairs needed.
When you have narrowed down your choices, it is worth arranging for a
thorough inspection of the properties to help you avoid any expensive
surprises that may show up soon after the purchase. If the inspection
reveals the need for major repairs it may be possible to have further
price negotiations or for you to insist that the seller completes the
repairs before you close.

Think long term

Never rush into buying a property; if
you are impatient you are more likely to make a bad decision. Real
estate is a relatively illiquid asset and should be viewed as a long-
term investment. It can take a long time to sell a property
particularly if there is a liquidity crunch or if you are holding out
for the “right” price. Like stock market investing, real estate goes
through up and down cycles. Whilst there are boom periods in which one
can re-sell quickly, it is those who invest over the long term that are
most likely to reap the benefits from this investment class.

The real estate and mortgage markets can be somewhat complex. The
more prepared you are, and the more information you have the better. By
working with experienced professionals, and following through with a
sound plan, you are more than likely to find the property that meets
your needs.

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Take advantage of the United Nations, companies urged

Take advantage of the United Nations, companies urged

Though
Nigeria ranks high as one of the nation that deploys troops for the
United Nations (UN) peacekeeping mission, it has failed to benefit from
the agency’s procurement system.

Sean Purcell, the UN Chief, Peace Keeping Section, said this at a
workshop in Lagos to sensitise Nigerians on the need to register as
vendors for the organisation. The Ministry of Foreign Affairs and the
Centre for Trade Practitioners organised the workshop.

Mr
Purcell disclosed that the UN Procurement Department (UNPD)’s
expenditure has doubled to close to $4billion in the last four years,
but the participation of Nigerians company has drastically reduced.

“In 2009, the UNDP spent $3.6billion on purchases and just $500,000 was what came from Nigeria businesses,” he said.

The
UNPD is saddled with the responsibility of purchasing materials
utilised by UN missions across the world on either peacekeeping or
political mission. The materials range from food, fuel, pharmaceutical
supplies, freight services, air transportation, construction and
engineering services amongst many other services and skills.
Individuals and corporate organisations of member countries of the UN
are allowed to bid for the supply of the materials.

Mr
Purcell revealed that 10 companies are registered with the UNDP from
Nigeria, and noted that the workshop was organised to get Nigerian
companies to register with agency “so that the UN can know what you do
and what you have to offer” adding that “to win a contract with the UN,
you must be a registered vendor.”

He
noted that the UN has 78 different agencies and the UNDP deals with at
least “25 per cent of the entire UN procurement system.”

How to register

Florence
Marie Owonibi, a Nigerian with the UN Procurement Section, New York,
took the participants through the 14-stage process of how to register
as a vendor on the UNDP’s portal, noting that the registration is
“absolutely free.”

Mrs
Owonibi said that transactions vary for vendors from level 1 which
involves expenditure of less than $200,000 to Level 5 of above
$5million, noting that “the registration process has been revised to
let business owners choose businesses that suits their capacity.”

Other
benefits of being a registered vendor, is “the regular supply of
adverts from agencies within the United Nations Global Market Place
(UNGMP)” she added.

Martin
Uhomoibhi, the permanent secretary for the foreign affairs ministry,
noted that despite the price Nigeria has paid in all its services to
the UN “both in human and material resources, Nigeria has not
benefitted significantly in the UN activities” and that other countries
have taken full advantage of the full UN Procurement process.

Mr
Uhomoibhi enjoined all regulatory agencies in the country to ensure
that made in Nigeria goods meet the UN standard because “it is only on
that level that Nigerian goods would be considered” he said.

An
industrialist at the workshop asked if the UN will give certain
considerations to Nigerian companies due to peculiar challenges faced
in the country when competing with other nations citing power failure
which occurred six times during the event. But Mr Purcell responded
that “all the 192 member nations of the UN are evaluated on the same
level.”

For registration, please visit http/www.ungm.org/info/Publications.aspx

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Nigerian interbank rates drop lower on budget flows

Nigerian interbank rates drop lower on budget flows

Nigerian interbank lending rates
eased to 1.16 percent on average this week from 7.33 percent last week after
about 390 billion naira in monthly budgetary allocations to states and local
governments was injected into the system, traders said on Friday.

The secured Open Buy Back (OBB)
eased to 1.05 percent from 6.5 percent, after initially dropping to 1.10
percent on Wednesday when part of the funds hit the system.

Overnight placement fell to 1.20
percent from 7.50 percent, while call slipped to 1.25 percent from 8.0 percent.

The finance ministry announced
the disbursal of 750 billion naira from the federation account to the three
tiers of government — federal, state and local — on Monday, but part of the
funds meant for states and local governments came into the system between
Wednesday and Thursday, helping to ease the tight liquidity in the market.

“The system closed with a
surplus balance of about 310 billion naira, this is more than sufficient to
keep the system liquid for the coming week,” one dealer said.

Banks in sub-Saharan Africa’s
second biggest economy depend largely on monthly cash inflows from budgetary
disbursals to its agencies to fund their operations.

Africa’s biggest energy producer
shares oil revenues between federal, state and local governments each month in
order to pay salaries, fund development projects and keep government running,
providing the bulk of liquidity in the economy.

The federal government’s portion
of the funds is kept with the central bank, while that of the other two tiers
goes in the accounts with retail banks.

Dealers said the cost of
borrowing among banks could remain stable next week despite plans by the
central bank to sell treasury bills at the secondary market in a bid to reduce
the impact of excess liquidity on the economy.

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