Hope for local manufacturers as Senate passes Public Procurement Bill

With the Senate passing the Public Procurement Act, 2007 Amendment Bill on Thursday, better days are around the corner for local manufacturers.

The bill, when signed into law by the President, will, among other things, give precedence to locally made goods in all government procurements.

The Chairman of the Procurement committee, Senator Joshua Dariye, while presenting the report during plenary, said that the essence of the bill was to provide for and adopt the local content policy.

He explained that certain sections of the 2007 version of the Act had been amended to favour local manufacturers and ensure speedy completion of projects.

“Similarly, the issue of disposal which is an integral aspect of procurement has been aptly captured by the amendment in the new sub-clause 1(e).

“The committee has equally sustained the amendment to section 34(1,2) sought by the bill for the purpose of patronizing made in Nigeria goods: this will go a long way to encourage our Nigerian manufacturers.

“The amendment proposed by the bill in section 35 is to review upwards the mobilization fee from 15 per cent to 25 per cent that may be paid to a supplier or contractor. This is aimed at enhancing timely completion of procurement processes at various phases.”

Furthermore, the Senate  approved the inclusion of Nigerian Institute of Architects and the Nigerian Institute of Quantity Surveyors as members of the National Council on Public Procurement.

Read More

Military to rehabilitate Boko Haram terrorists

Nigeria's military authorities plan to rehabilitate repentant Boko Haram terrorists through its “Operation Safe Corridor.”

The Director of Defence Information, Defence Headquarters, Brigadier-General Rabe Abubarka disclosed this on Thursday at a News Agency of Nigeria Forum in Abuja.

Abubakar said that the operation is designed to rehabilitate, reintegrate, empower and de-radicalise surrendered members of the terrorist group.

His words:
“Nigeria being a signatory to United Nations convention must comply fully with that portion of the convention.

“Even if you arrest or capture an enemy or prisoner of war, by international law, you are to treat him with all human dignity. You must do that, as long as you are a signatory to UN convention.

“We evolved a policy by the defence headquarter and that operation is called operation ‘Safe Corridor’.

“Operation safe corridor is an operation trying to rehabilitate, reintegrate, empower and de-radicalise those that surrendered and those captured.

“It is not in any way amnesty. We are trying to comply fully with international best global practices and that is why we came up with that.

“The Chief of Defence Staff, Maj.-Gen. Abayomi Olonishakin with other service chiefs agreed to this and they came up with it, which is the first of its kind since the Boko Haram terror began.

“And very soon, we will have a camp somewhere in the Northeast where they will be kept for empowering and reintegrating and de-radicalising them.’’

Read More

Five states meet criteria for N90b budget support loan

As at the last National Economic Council meeting, five states had met the conditions for obtaining the N90 billion budget loan being provided by the Federal Government to support state governments.

One state has however, rejected the new loan that attracts nine percent interest rate.

Governor of Akwa Ibom State, Udom Emmanuel said this in Abuja during a chat with State House correspondents at the end of the 68th NEC meeting chaired by Acting President Yemi Osinbajo.

Emmanuel was accompanied to the briefing by the Deputy Governor of Kaduna State, Mr Bala Bantex, Minister of Trade and Investment, Okey Enelamah, and the Special Adviser to the President on Social Investments, Mrs. Maryam Uwais.

The budget support loan has 22 stringent conditions which states must satisfy before accessing it.

Emmanuel declined to name the five successful states and the one that opted out, but hinted that the disbursement of the loan will begin during the next Federation Account Allocation Committee, FAAC meeting.

“The Honourable Minister of Finance, Kemi Adeosun, also briefed the Council on the Federal Government’s N90 billion budget support loan facility for States at a nine per cent interest rate.

“Five States have already completed the process for borrowing from the Presidential Budget Support Facility for States, which will help states to pay salaries and other pertinent emoluments. Other states are expected to proceed to tap from the facility.

“Though I am not the minister, I can throw more light on the question. The N90 billion is the same thing as I have mentioned. I wouldn’t want you to call it a bail out. I want to call it the exact name that it is.

“What the minister explained was that first tranche of N50 billion bond will be issued and the N40 billion will follow to make N90 billion. It is just to make this available, but it is not compulsory. What is important is that people can have access to a lifeline. We all know that what is happening today is not peculiar to Nigeria as a country. You know the impact of the fall in crude oil price that has actually gotten to oil producing countries like Nigeria.

“What we are looking at are the solutions. We must provide a lifeline for people to survive and to move on. I don’t think it’s too much,” he said.

Read More

N20m pile of cash: Bauchi State Govt speaks

The Bauchi State Government has reacted to the pictures circulating online of huge piles of cash estimated to be about 20 million naira seen in the office of a serving commissioner.

In a press release signed by the Special Adviser to the Governor on Communications, Shamsuddeen Lukman Abubakar, the Bauchi State government said that the money was for feeding the less privileged during Ramadan.

Read the press statement below.

“Good evening to the good people of Bauchi state. It has come to my attention, the circulation of certain photographs online of money found on the table of a serving Commissioner of Bauchi state. I wish to assure you all that, the said picture is no implication of corruption or illegal money transactions.
This period of Ramadan teaches us to extend love to the poor, less privileged and the non buoyant. In line with this, and as has always been done, the Bauchi State Government releases funds to mosques in Bauchi state for the provision of iftar to faithfuls. These funds are disbursed through the Office of the Commissioner for Religious Affairs, to assist faithfuls who are not buoyant enough to afford iftar.
Once again, we understand the insensitivity of the image, surfacing at a time like this when we as a Government are working hard to achieve a corruption-free and transparent administration.
We want to assure the good people of Bauchi state that all and sundry is being done to make the best use of resources, fight corruption within the State and ensure that all our promises to the people are fully delivered.
May Allah crown our efforts with success.
Shamsuddeen Lukman Abubakar
SA Communications to His Excellency the Governor of Bauchi State
16th June, 2016

Read More

Certificate suit: Court adjourns indefinitely as Buhari hires 13 SANs

The Federal High Court, Abuja, presided over by Justice Adeniyi Ademola on Thursday, indefinitely adjourned the suit challenging the academic credentials of President Muhammadu Buhari.

Justice Adeniyi in his ruling attributed the indefinite adjournment to a notice of appeal filed by President Buhari.

President Buhari had on Wednesday, appealed against a previous ruling of the court dismissing his preliminary objection to the suit filed by Nnamdi Nwokocha-Ahaaiwe, an Abuja-based lawyer.

Nwokocha-Ahaaiwe had in his suit argued that President Buhari was not qualified to run for president because he did not possess the minimum qualification to run for the office.
He is alleging that Buhari did not sit for the Cambridge West African School Certificate WASC in 1961.

To defend his position, President Buhari has hired an intimidating team of 13 Senior lawyers led by Wole Olanipekun, SAN.

Other lawyers on the team are Lateef O. Fagbemi (SAN), Akin Olujinmi (SAN), Oluwarotimi O. Akeredolu (SAN), Kola Awodein (SAN), Taiwo Osipitan (SAN), Charles Edosomwan (SAN), Emeka Ngige (SAN), Femi Atoyebi (SAN), Femi Falana (SAN), Funke Aboyade (SAN), and H.O. Afolabi.

Read More

Tinubu, Oba Adetona visit Buhari in London (Photos)

The National Leader of the All Progressives Congress, APC Asiwaju Bola Ahmed Tinubu , and the Awujale of Ijebuland, Oba Sikiru Adetona Ogbagba II were guests of President Muhammadu Buhari in London on Thursday.

Read More

Text of CBN Governor's speech on new forex framework

Good afternoon ladies and gentlemen and welcome to the Central Bank of Nigeria (CBN). The Management of the Bank has called this Press Conference in response to one of the commitments contained in the Communiqué of the Monetary Policy Committee (MPC) of 24th May 2016.
Having consulted widely and prepared carefully, the committee of Governors of the CBN is delighted to unveil to relevant stakeholders and the general public, the broad framework and guidelines of the Flexible Exchange Rate Inter-bank Market, which we alluded to at the end of that MPC Meeting. Before I proceed into the details of this new policy, please permit me to provide you with a brief context.
2. We all know by now that Nigeria has been dealing with the effects of three significant and simultaneous global shocks, which began around the third quarter of 2014. These include:
· The over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves;
Global growth slowdown and geopolitical tensions along critical trading routes in the world; and
· Normalization of Monetary Policy by the United States’ Federal Reserve.
3. In view of these headwinds, the CBN witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.
4. Despite these outcomes, the demand for foreign exchange has risen significantly. For example, in 2005 when we had oil prices at about US$50 per barrel for an extended period of time, our average import bill was N148.3 billion per month. In stark contrast, our average import bill for 2015 was about N917.6 billion per month. Unfortunately, the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.
5. In order to avoid further depletion of the reserves, the CBN took a number of countervailing policy actions, anchored on the prioritization of the most critical needs for foreign exchange as well as maintaining stability in the exchange rate. Having allowed two adjustments from August 2014 to February 2015, we decided to manage the Naira-Dollar Exchange Rate at about N197/US$1 over the last 16 months, and then provide the available but highly limited foreign exchange to meet the following needs:
· Matured Letters of Credit from Commercial Banks
· Importation of Raw Materials, Plants, and Equipment,
· Importation of Petroleum Products, and
· Payments for School Fees, BTA, PTA, and related expenses
6. Over the intervening period, we are happy to note that these policies have yielded some positive developments. In particular, we have managed to stabilize the exchange rate since February 2015, thereby creating certainty for both household and business decisions, and also underpinning the economic growth we recorded in 2015. We have largely eliminated speculators and rent-seekers from the Foreign Exchange Market. Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months. Furthermore, the domestic production of items restricted from the FX market is picking up nationwide, thereby creating more jobs for many more Nigerians.
7. Despite these positive outcomes, the Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market.
8. Although the detailed framework and operational guidelines of the market will be released to the public immediately after this Press Briefing, permit me to highlight its key aspects:
a. The market shall operate as a single market structure through the inter-bank/autonomous window;
b. The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book;
c. The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises;
d. To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis;
e. These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing;
f. There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market;
g. The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market;
h. To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers;
i. Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads;
j. The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market;
k. The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates;
l. Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and
m. Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market.
9. In terms of timelines, the Management of the Central Bank has agreed as follows:
a. The detailed operational guidelines for the Flexible Foreign Exchange Market will be released immediately after this Press Briefing;
b. The guidelines for the selection and operations of FX Primary Dealers would also be released immediately after this Press Briefing;
c. Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market;
d. Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and
e. The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday 27th June 2016.
10. In closing, let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.
11. I therefore urge market participants to assist us in ensuring that this new system enables the CBN to pursue its mandate in a more effective and efficient manner, which guarantees preservation of our scarce commonwealth, stability of our financial system, and growth of our economy to the benefit of all Nigerians.

Read More