Archive for Money

‘Road project to improve socio-economic activities’

‘Road project to improve socio-economic activities’

The secretary,
Bwari Area Council, Ali Kawu, said the Bwari/Kawu Road, currently being
constructed, will improve the socio-economic activities of the area.

He told the News
Agency of Nigeria in Bwari on Wednesday that the project, which was
approved by the Federal Executive Council, would transform the area and
facilitate the conduct of elections in 2011.

Mr. Kawu explained
that in the past, election results from the area were usually collated
late because of the difficult terrain in the area.

“It is important to know that there are more than 100 villages along
the road, and 99 percent of the populations are farmers. The project
will also boost agricultural activities,” he said.

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Operators want tariff reduction on business lines

Operators want tariff reduction on business lines

Operators of phone
call centres in Lagos yesterday called on service providers to reduce
tariffs so they, ( the operators) can remain in business.

Some of the
operators who spoke to the News Agency of Nigeria (NAN) said the
business is no longer profitable for them because of high tariffs and
low patronage.

Both Etisalat and Airtel Nigeria have recently reduced their
tariffs. Etisalat to a 25k per second (N15 per min) charge and Airtel
to N20k per second (N12 per min), billing but the operators say this
reduction does not apply to them.

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Customers want banks to improve on service delivery

Customers want banks to improve on service delivery

Bank
customers are expectant that service deliveries by banks would improve
in 2011. Seething from a plethora of complaints over banking services
in 2010, many customers spoke on the need for banks to update their
services in the coming year.

Ibrahim Buba, a
Kaduna-based architect and building contractor, said there was need for
banks to modify the modalities for usage of Automated Teller Machines
(ATMs). According to him, some of the machines choose the wrong time to
malfunction while banks insist that amounts below a certain threshold
must be done via the ATM.

“Why should banks charge me for withdrawing from the counter below a certain amount. Is it not my money?”

Mr. Buba said banks should be sensitive to the needs of the Nigerian economy.

“What this economy
needs now is entrepreneurship. Banks must be willing to support young
Nigerians with brilliant business ideas. Otherwise, if they cannot
fulfill this basic function of granting loans to businesses, then there
is no need for banks. I would rather go to a money lender to get funds
to run my business,” he further said.

He said in the New
Year, banks should look at viability of business plans to grant loans
instead of seeking fabulous and fake business proposals which fail
eventually and default in payment.

Improve services

Still on ATM
service, a bank customer who gave his name as Elvis, said banks need to
improve their services in order to reduce the hardship of customers. He
wondered why banks push people to use ATMs, even when ATM services are
not optimal.

“Last weekend, I
had to visit about five banks in my neighbourhood before I could get a
functional ATM to use,” he said. According to him, banks should employ
technology more in order to improve service delivery in 2011.

“We have heard
talks about mobile money for almost forever. Banks should embrace
mobile money technology, since the focus is now on reducing cost,” he
added.

Some customers said
banks do not abide by laid down instructions, thereby costing their
business. Bayo Adeoshun, a brand and marketing communications
consultant, said banks should take customised service as important in
2011. According to him, despite making a request to his bank that that
he should be notified of any third party withdrawal beyond a specified
amount, his bank still goes ahead to pay beyond the amount without
notification.

“This has caused me
embarrassment on a number of occasions. Going forward, I expect banks
to deliver more of specialised service to cater to the needs of their
customers. They should be friendly and reduce the stress that one has
to go through,” Mr. Adeoshun said.

Banking industry challenges

Eddy Ademosu,
president of the Association of Corporate Affairs Managers of Banks
(ACAMB), said the challenges facing the banking industry were not
peculiar to Nigeria alone.

“We appreciate the
complaints, but those complaints must come against the background of
the scenario in the banking industry this year and the challenges the
industry had to contend with. Yes, in some few cases we have had
service issues, non availability of credit,” he said.

He said with the gains that have been achieved with reforms in the banking system, things can only be better.

“Service can be
better and service will be better. A lot of initiatives that the
operators and regulators have put in place will impact on service
delivery. Banks are now talking about shared platform. The moment we
are able to streamline technology, the issues relating to ATM services
will be a thing of the past,” he said.

On access to
credit, he said more credit will be available to businesses from next
year. He said documentation for loans was important before banks can
grant loans.

“Even beyond
collateral, what about character of the customer? Part of the problems
we have in the banking industry today is as a result of default on
loans by the customers themselves.

“Customers may have good business ideas but lack organisational
structure. So, how do you relate with a formal organisation like a
bank?” He queried.

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Customs sets higher revenue target for 2011

Customs sets higher revenue target for 2011

The Nigeria Customs
Service (NCS) says its main objective in 2011 is to mobilise its
workforce and resources toward surpassing the revenue generation target
achieved in the outgoing year.

Reviewing its
operations in the last quarter of the year, NCS Comptroller General,
Abdullahi Inde Dikko, said in Abuja that the various reforms initiated
in the service’s operational procedures will facilitate the realisation
of a new revenue target of more than N500 billion next year, from N450
billion set for 2010.

“Concrete steps
have been taken to reduce the corruption environment through a mixed
bag of welfare packages, including the approval of 100 percent increase
in the salaries and allowances of all officers and men in the service
to give them the new impetus to work harder to achieve the target,” Mr.
Dikko said.

The service, in its
2010 Annual Report by the Deputy Comptroller (Welfare), Mohammed
Ibrahim, indicated that in the last one and half year improved welfare
package has positively impacted the morale and wellbeing of the
officers, resulting in enhanced performance.

Areas of manifest
impact, Mr. Ibrahim claimed, include insurance, health, housing,
cooperative, pensions and training, as no fewer than 435 retired
officers and relations of about 134 others benefitted from the
insurance policy during the outgoing year.

The policy, which
commenced in 1992, has evolved and expanded into three schemes, with
the first requiring officers to contribute five percent of their annual
salary for a benefit that is three times their annual pay in event of
death, in addition to N80, 000 support for burial expenses. Besides, a
retired officer is entitled to 60 percent of his annual salary, in
addition to an interest payable on his contribution.

Though the NCS is a
self-accounting service, he said it has also initiated a Group Personal
Accident (GPA) policy since 2005, that enables claims of between N2
million and N6 million to be paid to officers who lost their lives in
violent circumstances in their line of duty.

“A premium of N800
million was secured during the year (2010), while claims for more than
40 officers were settled. In 2010, the insurance scheme should cover
assets, marine and aviation,” Mr. Ibrahim said.

Similarly, a
compulsory Group Life Assurance policy, as spelt out under the Pension
Reform Act 2004, entitles an officer to a minimum pay that is thrice
his annual total emolument as death-in-service, payable into his
Retirement Savings Account (RSA).

The NCS has also
been working with the Federal Mortgage Bank for a housing loan scheme
for a monthly contribution of 2.5 percent into the National Housing
Fund (NHF), deductible from individual officers’ monthly salary to
facilitate decent accommodation for officers.

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OIL POLITICS: The betrayal at Cancun

OIL POLITICS: The betrayal at Cancun

It was obvious to
observers that the climate negotiations at Cancun were wired to support
commerce rather than tackling the climate crisis that the world is
confronted with. This trend took solid steps a year earlier at the
summit in Copenhagen when a handful of nations sidestepped the
multilateral tradition of the United Nations and working through “green
rooms” away from the conference floor concocted the so-called
Copenhagen Accord instead.

The Copenhagen
Accord could not be adopted at the end of the 2009 conference for the
basic reason that majority of country delegations did not know how it
was crafted and on what basis. Countries like Bolivia and Venezuela
stood resolutely against it and that conference only agreed to take
note that such a document existed.

The fact that the
Accord was not adopted as a conference outcome did not deter its
authors, principally the United States, from working behind the scenes,
bilaterally, to get several countries to endorse it. Some analysts have
said that the endorsement was achieved through arm-twisting tactics and
promises of financial and other aids. Those who refused to yield were
sanctioned by way of having climate or environment assistance cut.

From the beginning
of the Cancun negotiations, signals were sent that its essence was to
elevate the Copenhagen Accord to the level of being the conference
outcome. The first salvo was fired by the delegation of Papua New
Guinea who declared that a few nations with divergent votes from the
majority must not prevent the conference from reaching a decision. They
suggested that if a consensus became impossible a decision should be
made by a vote. This position, as noted in an earlier article on
Cancun, was immediately objected to by the delegations of Bolivia,
India, Saudi Arabia and others.

At the end of the
Cancun summit, with the Copenhagen Accord now dressed in new garbs,
there was no consensus for its adoption. Not to be deterred, the
Mexican presidency of the conference banged the gavel repeatedly on her
table and rammed the document through, after redefining consensus as
not necessarily meaning unanimity.

Empty promises

Nations yelped and
cheered. Cancun had delivered; they enthused and backslapped each
other. But what did Cancun deliver and how will the planet fare under
the scenario set by what has been termed Copenhagen Accord 2?

The conference
outcome avoided legally binding emissions reduction targets for the
main polluting nations – the rich industrialised countries – and rather
urges a voluntary pledge based system with no monitoring mechanisms.
From recent WikiLeaks regarding discussions in France, it is clear that
the rich countries are determined not to make binding commitments to
act for the safety of the planet.

Looking for
something to celebrate, some countries latched on the promise to create
a Climate Fund within the United Nations climate change framework but
having the World Bank as a trustee. The promised climate fund did not
specify how the funds would be sourced.

The agreement did
not review subsisting intellectual property regime that does not freely
allow the exchange of green technology. It took big steps in paving the
way for new market based mechanisms that would allow for speculation
and avoidance of actions to reduce emissions at source and generally
position the planet at great risks of catastrophic climate change.

Teresa Andersen of
the Gaia Foundation, who wrote about the manner the Cancun conference
ended, captures the disbelief of critical observers:

“We sat in
disbelief as the crowds leapt to their feet, cheering, applauding,
whooping and whistling the Mexican chair of the Cancun climate
negotiations. Mexico’s foreign secretary, Patricia Espinosa, graciously
bowed her head, her hands crossed over her heart in an authoritarian
simulation of modesty, as we shook our heads, open-mouthed, at the
eerie frenzy taking place around us. In the last hours of the Cancun
climate negotiations, the world’s deluded leaders were cheering as they
tossed the planet onto the bonfire.

According to
Teresa, “The Cancun Agreement, we are told, has “saved
multilateralism”. What it has not done though, is offer any meaningful
solution to climate change. As it stands, the Cancun Agreement could
mean global temperature rises of up to 5 degrees centigrade, and a
possible 6.5 degrees in Africa.”

An initial analysis
of the Cancun outcome by Friends of the Earth International (FOEI) saw
the prospects of opening new market mechanisms as potentially creating
practices that are more harmful to the climate than current ones.

According to FoEI,
“the establishment of one or more market-based mechanisms over the
course of the next year is to be considered, with a view to taking a
decision to adopt these new mechanisms at COP 17 in South Africa. The
new mechanisms could include a number of different types of
instruments, some of which would be more destructive than others.”

Little gains

All was not lost in
Cancun. Social movements pushed the path of climate justice in various
venues in Cancun. The government of Bolivia, which had facilitated a
Peoples Conference on climate change and the Rights of Mother Earth in
April 2010, stood with the people, pushing the right analysis and
solutions, right to the end of the conference.

Social and climate
justice movements clearly stated that the causes of climate change are
systemic and that the only way to tackle the climate crisis is through
a change of the capitalist and patriarchal system that caused it.

With the clear
indication that rich nations are not keen to tackle climate change, but
would rather make bogus promises that poor vulnerable nations
unfortunately lap up, it is doubtful if the 2011 conference to be
hosted in Durban, South Africa, will produce anything different from
Copenhagen and Cancun.

The South African
government has dubbed COP17 the Peoples COP. It will be seen whether
the voices of the people will prevail or if corporations and their
surrogate politicians will hold sway in their market-based chariots.

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‘World economy can withstand $100 oil price’

‘World economy can withstand $100 oil price’

The global economy can withstand an oil price of $100 a barrel,
Kuwait’s oil minister said on Saturday, as other exporters indicated OPEC may
decide against increasing output through 2011 as the market was well supplied.

Analysts have said oil producing countries are likely to raise
output after crude rallied more than 30 percent from a low in May because they
fear prices could damage economic growth in fuel importing countries.

European benchmark ICE Brent crude for February closed at $93.46
on Friday after hitting $94.74 a barrel, its highest level since October 2008.

Arab oil exporters meeting in Cairo this weekend said they saw
no need to supply more crude as stocks were high and prices had been inflated
temporarily by cold weather in Europe.

Asked by Reuters if the world economy could stand a $100 oil price,
Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said: “Yes it can”.

Iraq’s new oil minister and the head of Libya’s National Oil
Corporation both told Reuters that $100 was a fair price, while Qatar’s
Minister Abdullah al-Attiyah said he did not expect OPEC to increase production
in 2011.

“I do not expect an OPEC meeting before June because oil prices
are stable,” he said.

Some delegates even called for exporters to comply better with
agreed production limits. OPEC members’ compliance with promised cutbacks
reached 56 percent in November, according to Reuters estimates.

When asked if output could be raised, Kuwait’s Sheikh Ahmad
said: “No. More compliance, more compliance”.

Market “well supplied”

The Cairo meeting of the Organisation of Arab Petroleum
Exporting Countries (OAPEC) brought together Arab members of OPEC including top
exporter Saudi Arabia, which has traditionally been viewed as a price moderate,
as well as non-OPEC countries Tunisia, Egypt, Syria and Bahrain.

OPEC cut output drastically after the global financial crisis
struck in 2008 to prop up collapsing oil prices.

As demand has risen steeply in 2010 and is expected to rise
further in 2011, the market is watching closely whether OPEC can release at
least some of its spare capacity to prevent prices from soaring to around $150
per barrel as they did before the crisis struck in summer 2008.

OPEC’s most influential oil minister, Saudi Arabia’s Ali
al-Naimi, said on Friday he was still happy with an oil price of $70-80 a
barrel and there was no need for an extra OPEC meeting before the next
scheduled one in June.

Others in the group have been pressing for a higher price,
arguing that quantitive easing and a weakened U.S. dollar that spurred gains
across financial markets mean the oil price strength is partly nominal.

Egyptian Oil Minister Sameh Fahmy said the current increase in
oil prices was the result of higher demand on heating fuel because of the cold
weather in Europe.

United Arab Emirates Oil Minister Mohammed al-Hamli said crude oil
inventories are “quite high. It’s the highest over the five years average…
The market is well supplied”.

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FINANCIAL MATTERS: Reflections on yesterday

FINANCIAL MATTERS: Reflections on yesterday

Stocktaking is one of the year-end’s favourite handmaidens.
There are few ways better to end the last twelve months than to tote everything
that had transpired, and compare the resulting balance with the targets we set
ourselves at the beginning of the year. The gaps that then show up explain why
this is also the wish and resolution-making season. When, against the backdrop
of the many failures of the outgoing year, one resolves to approach the
challenges of the New Year differently. It affords little solace at this point
that not enough of the resolutions reached at the beginning of the year will
remain come the end of the cycle. Far more significant is the catharsis of the
process.

The process of enquiry, review, and resolve is especially
poignant in the run up to the general elections next year. On an annual basis,
we cannot claim, as a country, to have met the different targets we set
ourselves at the beginning of the year. As a country, consensus is that over
the last five decades, we have failed in every aspiration but one: “to keep
Nigeria one”. And even the utility of that aspiration has come in for some
serious questioning of late.

“How much of our fecklessness, is the result of the apparent
incompatibility of views amongst the constituents of the republic, on
everything from development paradigms, to moral schemes?”

Still, the countless gaps in our lived space push us in one
direction only. At the end of the inventorying exercise, what may we wish for
legitimately? A “better Nigeria” obviously!

This wish list is not without difficulty though.

For instance, how we define “better”. What does it consist of?
In what does it inhere? The most successful experience in living memory of a
country resolving the problem of large-scale poverty on an industrial scale is
provided by Communist China. Proceeding from this example, it is clear that
“better” need not be “democratic”.

Yet, there is that attribute of “democratic rule” that makes it
difficult to find a jurisdiction that is simultaneously democratic and failing
in the way most countries on the African continent are.

A wish list for the New
Year

Increasingly, it is clear that conspiracy theorising won’t do as
an explanation for failings such as ours. Our wish list for the New Year might
thence benefit more from focussing on the local constraints that have held
achievement of our sundry goals back for so long.

Discussing with a friend a week ago over the right person for
the office of president come next year’s elections, the limiting constraint
appeared to be a choice between a better managed economy (the focus over the
last one year of my musings on this page) and what my interlocutor referred to
as the “citizenship question”.

There was so much to do about which of the candidates currently
on offer best epitomise these values. Nonetheless, I’m still uncertain that
these constraints are antipodean enough to have generated that much heat.

Thinking back on the discussion I cannot but wonder how true its
underlying arguments are. I have no doubt that a focus on getting economic
management right lends a stronger fulcrum for leveraging this country’s growth
than concern with “citizenship issues” could.

This incidentally is not just because the latter is conceptually
more challenging. Nor is this to detract from the importance of “citizenship”
properly defined as part of the process of properly managing economies.
However, the tension between “managing the economy for growth” and “resolving
the citizenship question as an integral aspect of governance” reaches back to
the old “basis” and “superstructure” argument that lay at the heart of Marx’s
“dialectic materialism”. Easy to conclude from this, that “it’s the economy,
stupid”.

But is this all? What place does governance play in all of this?
How much would we achieve were we to appraise contestants for political office
on the strength of their grasp of the challenges faced by this economy? Or
based on their understanding of the need to (and best means of) address(ing)
the “citizenship question”.

Not much if you ask me. For be far more important are the structures,
processes, rules, and enforcement mechanisms by which the country is run. If we
do not attend to these, we strive in vain aspiring to other goals. Better
therefore to expend effort in the short time remaining on ensuring that every
vote counts and every vote is counted.

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Egypt re-opens 4b pounds of bonds

Egypt re-opens 4b pounds of bonds

Egypt’s finance
ministry will offer three-year, five-year and 10-year bonds worth 4
billion Egyptian pounds in an auction on January 3, the central bank
said on Tuesday.

The three-year bonds worth 1.5 billion pounds, which will mature on October 5, 2013, carry a coupon of 11.6 percent.

The same amount of five-year bonds will be issued, maturing on September 14, 2015, and carrying a coupon of 12.35 percent.

The 1 billion pound issue of 10-year bonds will mature on August 3, 2020, and will carry a coupon of 13.0 percent.

The bonds are sold by the central bank, acting on behalf of the finance ministry. Settlement will take place at January 4.

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Rand hits new high against dollar

Rand hits new high against dollar

South Africa’s rand
advanced to a new three year high against a broadly weaker dollar on
Tuesday and was also boosted by higher metal prices.

The rand was
trading at 6.6750 against the dollar at 10:10 GMT, one percent firmer
than Monday’s New York close of 6.7415. It touched 6.6725, its
strongest since Dec 2007.

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Kenyan shilling holds steady against dollar

Kenyan shilling holds steady against dollar

The Kenyan
shilling held steady against the dollar in a slow market on Tuesday and
traders said they expected a firm underlying bid to continue, while
shares on the Nairobi Stock Exchange were mixed.

Commercial banks quoted the shilling at 80.60/70 to the dollar, against 80.55/65 at Friday’s close.

Although the
government declared Monday to be a working day, banking holidays
elsewhere meant only a handful of trades were made on the foreign
exchange market.

“There’s nothing.
Even on the interbank (market), I can see nothing happening. It’s only
a few customers here and there,” said Steve Lagat, a trader at CFC
Stanbic Bank.

“I think for the
next few days before the year ends, we will be trading in a narrow
range.” Traders said the shilling could strengthen slightly in the next
few days, but that it is likely to trade within a range of 80.30-80.80.

“We have seen some
dollar weakness globally that should have helped the shilling to
strengthen slightly. We are not seeing that happening here at the
moment, but I think going forward during the day and maybe tomorrow, we
could see some shilling strength,” said Andlip Mohamed, senior trader
at I&M Bank.

“I think … international market players are just squaring their positions before the end of the year.”

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