Agbakoba: How to tackle economic recession

Former president of the Nigeria Bar Association (NBA), Dr Olisa Agbakoba (SAN), has called on the federal government to take hold of the banking sector and exert more regulatory control, if the country must quickly get out of the current economic recession.
He warned that Nigeria could remain in recession until the fourth quarter of 2020 if new economic models are not adopted.
He also advised the Federal Government to return the Treasury Single Account to the commercial banks and create a new supervisory agency to monitor them, while the Central Bank of Nigeria (CBN) should focus its attention on formulating monetary policies.
At a briefing on the state of the nation in Lagos, he called for a council of economic advisers made up of economists, statisticians, and other financial experts to map out strategies on economic recovery.

Travel agencies list ways to revive aviation sector

For the Federal Government to effectively revive the aviation sector, it should steer clear of running a national carrier and rather be concerned with providing an enabling environment.
This was the position of the National Association of Nigeria Travel Agencies (NANTA) recently in Lagos.
The travel agencies also canvassed full private ownership of airline operations in the country, urging the government to adopt the kind of relationship between Ethiopia Airline and Togo’s ASKY Airline in Lome.
Blaming the government and regulatory authorities for the problems of the aviation sector, NANTA condemned the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) for imposing multiple charges on passengers. While FAAN allegedly charges $50 per passenger, NCAA collects about $20 per passenger, both charges which have further raised the ticket fares for passengers on the international routes.
FAAN and NCAA have, however, defended the charges, describing them as Passenger Service

FG, states benefit from N12bn French loans, grants

The most vulnerable of the urban population in Lagos are among beneficiaries of a N4 billion loan procured by the Lagos Government. Part of the loan is meant for enhancing the management and treatment of solid waste as well as strengthening the capacities of the State Government to implement integrated urban development projects.
Details of the projects released by Hugo Pierrel, the Acting Country Director, of the Agence Francaise de Developement, AFD, (French Agency for Development), as part of its annual report also indicates that there was another loan of $33 million for an Ogun State Urban Water Supply Project, targeted at increasing the coverage steadiness and the quality of water supply in the State capital (Abeokuta).
It is also aimed improving the financial viability of existing water utility, and the governance of the water sector in the state.

OPEC predicts oil glut in 2017

The Organisation of Petroleum Exporting Countries (OPEC) has predicted a larger surplus in the oil market in 2017 from non-OPEC members as new fields come on stream, according to the cartel’s monthly Oil Market Report (OMR) published monday.
Apart from new oil fields coming on stream, the anticipated glut in the oil market will be further buoyed by the United States shale producers, who have refused to be forced out of the market by the low oil price.
The booming output from shale oil fields had pushed the global market into oversupply in 2014, with prices plummeting from a peak of $115 per barrel in June 2014 to an all-time low of $27 per barrel in January this year.
The prices later recovered to a 2016 peak of $52 per barrel in June before it dropped, hovering

Mastercard sued for $19 billion over charges

About 46 million people in Britain could potentially benefit from a legal case brought against Mastercard, demanding 14 billion pounds ($19 billion) in damages for allegedly charging excessive fees, according to court documents filed in London.
The case, Reuters said, brought by a former chief financial services ombudsman alleges the payments company charged unlawfully high fees to stores when shoppers swiped their debit or credit cards and these were passed on to consumers in higher prices.

Nigeria spends N596bn on fuel import in six months

Nigeria, in spite of the declining economic fortunes, spent N595.5 billion on the importation of fuel in the first six months of 2016, rising by N34.3 billion from the amount spent in the last six months of 2015.
According to data obtained from the National Bureau of Statistics, NBS, the country spent N276.226 billion on petrol import in the first quarter of 2016, while N319.28 billion was spent in the second quarter.
The NBS report showed that the amount spent on fuel importation appreciated by 6.1 percent, compared with N561.2 billion spent in the second half of 2015.
However, the report pointed out that the amount spent on fuel import in the first half of 2016 was 12.18 percent lower, which is N82.63 billion less than the N678.13 billion spent on fuel imports in the first half of 2015.
The report also highlighted that the country spent N1.24 trillion on the importation of fuel in 2015.
For the first half of 2016, the NBS disclosed that Nigeria recorded total imports of N3.57 trillion.

Recession: FG must borrow, sell assets to rescue the economy – Rewane

Bismarck Rewane

An economist and Managing Director of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has declared that for the federal government to overcome the economic recession, it must borrow and sell assets to raise funds that would be injected into the economy.
The Nigerian economy is in recession and the government is looking for solutions to rescue the economy out of the doldrums. Speaking on the current state of the nation’s economy on Channels Television in Lagos on Friday, Rewane said first and foremost the government must inject money into the system.
According to him, since there is a fall in oil revenue, the government has to increase the deficit plan for 2016.
“The government must inject funds into the system and the executive is fully engaged because they know they cannot hide, they have to deal with the problem. And given the fall in oil revenue, you have to increase the deficit plan for the recovery. You must borrow and President

CBN to quit as ‘Lender of Last Resort’ to banking system

Godwin Emefiele

The Central Bank of Nigeria (CBN) will soon stop performing its role as ‘lender of last resort’ to the banking system. CBN Governor, Mr. Godwin Emefiele, disclosed this in Abuja at the annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN).
In a keynote address on the theme of the conference, “Innovation in the Financial Services Sector: Driving Nigeria’s New Economy, Emefiele said that the decision of the apex bank to cease performing the role of ‘lender of last resort’ is one of the reforms aimed at improving the nation’s financial system.
He said, “Despite the progress we have made, I believe that this conference would help illuminate some lingering challenges and proffer durable and innovative solutions. For example, the growing menace of cybercrime and electronic payments fraud continue to challenge the payments industry globally and Nigeria must stay ahead of the curve in improving its fraud management strategy.
In that vein, we are collaborating with law enforcement agencies to set up a Dedicated Electronic

Nigeria can generate over N20trn from cassava – Adewumi

Pastor Segun Adewumi, the National President, Nigeria Cassava Growers Association says cassava can generate over N20 trillion for the country, annually if adequately utilised.
Adewumi stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.
He said that cassava which was one of the most reliable cash crops in the world that could also be used to trigger industrial revolution and solve Nigeria’s economic problems.
Adewumi lamented that the country spent over N600 billion yearly to import ethanol and starch which were cassava derivatives that could be processed and sourced locally.
According to him, cassava has over 20 food types and three major industrial products like ethanol, starch and cassava flour which are raw materials for other products.
“Government should pay more attention to cassava, it has been neglected.

Foreign flights to Nigeria forced to refuel elsewhere

Foreign airlines flying to Nigeria have started to refuel abroad to bypass pricey, and increasingly scarce, jet fuel as the oil producer battles a hard currency shortage that has made fuel available only at a very high price.
It is the second blow for airlines operating in Africa’s recession-hit biggest economy in a year that first saw the central bank make it almost impossible to repatriate profits from ticket sales as it tried to prevent a currency collapse.
The crash in the naira since a devaluation in June has led firms who market jet fuel locally, such as Total, Sahara and ConocoPhillips, to double the price to 220 naira a litre in August, and to as much as 400 naira this month, an airline executive said.
Even at the higher costs, marketers’ lack of dollars has made fuel scarce. Some carriers have had aircraft stuck, or were forced to cancel planned journeys, after frantic last-minute calls from ground staff warned there was no fuel available.
“The economy is crying out for investment, and now it is going to be even harder for anyone to

ILO seeks global expansion of social security to tackle inequalities

There is no more excuse by any nation not to institute social protection initiatives, the International Labour Organization (ILO) has said.
The Director General of the global labour watch body, Guy Ryder, who stated this in China while addressing delegates to the ILO-China-ASEAN South South high-level conference on universal social protection, declared that in 2016, a lack of social protection is completely unacceptable.
The event – which takes place right after the G20 summit – will highlight the global importance of universal social protection and showcase results from Southern countries.
“An old-age pension system which aims to cover all people… has been established in China, as well as universal health insurance coverage,” the Chinese Vice-Minister of Human Resources and Social Security, Kong Changsheng said.

UBA wins big at BUSINESSDAY Banking Awards

Pan-African banking group, the United Bank for Africa (UBA), at the weekend won two strategic awards at the annual BUSINESSDAY Banking Awards.
The bank won the Best Bank in sub-saharan Africa and the Best Bank in support of agriculture.
The first award was in recognition of the UBA’s leading role in expanding access to banking across Africa.
According to the organisers of the awards, the bank also won the “Best Bank in Agriculture Financing,” for its consistent support for the sector in Nigeria.
It lauded the bank for devoting a substantial part of its loan book to agriculture and other related activities.
Receiving the awards on behalf of the bank, the Head of Communications, Charles Aigbe, expressed appreciation to the organisers for the recognition.