CBN: Import Prohibition Attracts $10b Investment

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said the import prohibition policy of the apex bank has attracted investment valued at $10billion into the country.

The CBN chief spoke in Abuja during an interactive seesion with the Joint House Committees on Finance, Appropriation; Aids, Loans & Debt Management and Budget Research on the 2018-2020 Medium Term Expenditure Framework/Fiscal Strategy Paper.

Represented by Deputy Governor, Operations, Adebayo Adelabu,Adebayo Adelabu, the CBN governor said a reduction in inflation rate from 18.9 per cent to a little above 15 per cent has been achieved by key fiscal policies introduced by the administration which were aimed at stabilising the economy.

He said local manufacturing of some of the prohibited items, such as building materials–granite, marble, among others, has started by some companies established across the country. This he said would create jobs for the youths.

Emefiele said the official exchange rate of N305/$ and the parallel market’s N360/$ have been stable over the past few months due to the intervention of the CBN in agriculture, solid minerals, manufacturing sectors and petroleum sector which has been yielding positive results.

The CBN and Federal Account Allocation Committee (FAAC) agreed that proceeds from forex transaction would be remitted into the Federation Account for the three tiers of government to share, and reduce budget deficit.

Members, however took him to task on the bailout given to states and he said CBN does not bailout to states as provided in the CBN Act, 2007.

He added that since they cannot afford the high interest rate from commercial banks, intervention fund were given to critical sectors of the economy at single rate and was channeled through Development Financial Institutions (DFIs).

However, Permanent Secretary of Federal Ministry of Finance, Mahmud Dutse, who respresented Kemi Adeosun, Minister of Finance requested the support of the National Assembly towards boosting the 20 per cent independent revenue from government owned enterprises, saying there were plans to sanction CEOs of agencies who fail to adhere to the policy.

He said Nigeria’s tax regime should be reviewed as it is one of the lowest in the world and less than one-third of Africa’s ratio.

He said in line with the Economic Community of West African States (ECOWAS) tariff policy, the only proposal for tax review applies to excise duties on alcohol and cigarette.

Executive Chairman, Federal Inland Revenue Service (FIRS) Tunde Fowler, in his presentation disclosed that N3.233 trillion was realsied over the past 10 months, an amount that represented 79.35 per cent of its collection target for 2017 fiscal year.

The FIRS justification for 2018-2020 revenue framework, he said, was based on the Federal Government Economic Recovery and Growth Plan (ERGP).

He said its tax assessment between 2013 and 2015 revealed N1 trillion after its tax audit exercise base deployed technology which has aided the tax agency to increase its revenue.

Various measures have been adopted by FIRS to ensure increased collections of Federal Government dues in the corporate and individual taxes.

Fowler added that the new modalities structured for optimal access of accruable due from the Voluntary Assets and Income Declaration Scheme (VAIDS) had yielded over $54 million (N16.73 billion) and N207.41 billion) totalling about N16.40 billion at the federal level only.

“We have stepped up enforcement activities against tax defaulters on different fronts. These include placing non-compliance stickers on business premises of tax payers who have back-logged of taxes owed and have not made any move to liquidate such.

“We have adopted substitution as an enforcement tool by putting a lien on the bank account of errand tax payers. This, in my view, will serve as deterrent to defaulters and consequently increase tax collection.

“FIRS has so far collected over N6 billion and $4.2 million (over N1.4billion) totalling over N7.7 billion. This drive is continuous and will be unrelenting going forward,’’ he said.

Fowler revealed that as from December,31, 2017, 34 companies will no longer enjoy pioneer status.

Bala Wunti, NNPC Corporate Planning & Strategy in his presentation expressed confidence that the 2.3million barrels per day(mbpd) oil production and $45 per barrel are possible and that positive results are being yielded by the negotiation between Federal Government and Niger Delta stakeholders.

Nigeria, he said, recorded 18 per cent over-performance in the 2017 crude oil benchmark based on improved dynamics in supply and demand at the international market, just as he expressed regrets over shutting down of major export infrastructure including Trans-Forcados Pipeline.

, Minister of State for Budget & National Planning, Zainab Ahmed, in her speech earlier said total oil production is pegged at 2.51 mbpd while budget oil production volume net incremental was pegged at 2.3mbpd; $45 oil benchmark; while exchange rate was pegged at N305/$ for fiscal year 2018.

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Nigeria Raises $3bn At International Capital Market

The Minister of Finance, Mrs Kemi Adeosun, says Nigeria has raised $3bn at the international capital market.

She made this known in a statement issued by Mr Oluyinka Akintunde, the Special Adviser, Media and Communications on Wednesday in Abuja.

She said the Notes comprised a $1.5bn 10-year series and a $1.5bn 30-year series.

“The 10-year series will bear interest at a rate of 6.5 per cent, while the 30-year series will bear interest at a rate of 7.625 per cent.

“By raising $1.5bn of 30-year notes, Nigeria has emulated a number of our international contemporaries, including Brazil, South Africa, Argentina and Egypt to issue long-dated debt as the basis for long-term infrastructure financing.

“It will also establish a benchmark for the private sector to extend the tenure of its own financing.

“This is critical to delivering an environment within which both the government and the domestic private sector can rapidly enhance its ability to fund investments in infrastructure projects and broader project financing.

“The full $1.5bn proceeds of the 30-year notes are allocated to 2017 capital projects.’’

According to her, the 30-year notes will benefit Nigeria because it demonstrates strong investor confidence in the Nigerian economy and growth, while providing the long-term funding required to finance infrastructure projects at affordable interest rates.

She said the provision of infrastructure was critical to the long-term sustainability of the nation’s economic growth and would provide a more productive economy for current and future generations of Nigerians.

They also provide a benchmark for long-term private sector funding, she added.

She said the proceeds would be split between the 2017 budget capital projects ($2.bn) and re-financing some of the nation’s short-term domestic debt ($500m).

Capital projects under the 2017 budget include roads, rail, power and housing projects which are crucial to the delivery of the economic recovery and growth plan.

Adeosun said Nigeria raised a further $1.5bn of 10-year notes, and presently had a full ‘basket’ of international debt notes, including five-year, 10-year, 15-year and 30-year issuances trading in the market.

She said this provides international investors with the full range of tradable options in Nigeria’s international debt.

According to her, of the $1.5bn of 10-year notes, $1bn will be allocated to the 2017 capital budget under the $2.5bn approval from the National Assembly.

She said the balance of $500m allocated to the refinancing of domestic debt was in line with the nation’s strategy to re-balance its domestic/international debt profile.

She, however, said the full amount of $5.5bn approved by the National Assembly was not raised because it was approved in two separate resolutions.

“One for $2.5bn to fund capital expenditure in the 2017 budget, and one to re-finance existing domestic debt of $3bn, which is not time bound.

“Our intention for this issuance was to meet our short-term requirement to fund $2.5bn for the 2017 budget.

“Following significant investor interest of over $11bn, we brought forward a further $500m of funding toward the refinancing of existing domestic debt and will assess options for concluding the refinancing process in the New Year.

“Restricting this issuance to $3bn also enabled us to optimise the price of the notes, which at 6.5 per cent (10-year) and 7.625 per cent (30-year) are significant improvements to our existing portfolio.’’

On the issue of re-balancing the nation’s debt portfolio and increasing international borrowing, she said Nigeria had over the last five years, been overly focused on domestic debt, which was short term and high cost.

“This means that we pay too much and have to regularly refinance existing debts rather than having the security of longer term instruments.

“You can see this clearly reflected in our debt service to revenue ratio, which at 45 per cent as of Third Quarter (Q3) 2017, is higher than we would like.

“Having returned the economy to growth in 2017, and secured a stable and liquid exchange rate regime, we are focused on addressing this issue by diversifying our sources of debt to achieve an optimal balance.

“So far, we have moved our domestic/international debt ratio from 18:82 to 23:77 and we expect this to improve to circa 27:73 by year end, with an ultimate target of 40:60.

“This will deliver significant savings in our debt service costs, with provisional estimates demonstrating savings of up to N91 billion in 2018 alone.’’

(NAN)

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Banks may soon publish list of accounts without BVN

As the expiration of the November 3 deadline for all account holders to obtain Bank Verification Numbers (BVN) ended on Friday, compilation of accounts without BVN has started in banks.

Deposit Money Banks, are carrying out the exercise sequel to the order of the Federal High Court in Abuja and may soon publish the list in newspapers in line with the directive of the court.

According to bank executives, the list after compilations will also be sent to the Federal Government through the Central Bank of Nigeria.

Recall that the court presided over by Justice Nnamdi Dimgba, had on October 17, ordered the Central Bank of Nigeria (CBN) and the 19 commercial banks in the country, to reveal all accounts in their custody and the balances in such accounts.

The ruling was as a result of an ex parte motion, the Attorney General of the Federation (AGF) filed on behalf of the Federal Republic of Nigeria.

Justice Dimgba had directed that banks should disclose the details of all such accounts, their owners and their proceeds in their affidavit of compliance deposed to by their Chief Compliance Officers.

He had also given an interim order mandating banks to freeze all BVN-less accounts by denying “all outward payments, operations or transactions,” into such accounts pending the hearing of the substantive application seeking the forfeiture of the balances in the accounts to the Federal Government.

Further on the matter, the court asked banks to also disclose “any investments made with funds from these accounts without BVN in any products.”

The investments include “fixed/term deposits and their liquidation and interest incurred, bank acceptances, commercial papers and any other relevant information related to the transaction made on the accounts.”

The CBN and the Nigeria Inter-Bank Settlement System PLC were as well asked “to validate the information contained in the affidavit of compliance/disclosure filed by the respective 19 banks” within seven days from the date of service of the orders on them.

Defendants in the case are Access Bank PLC, Citibank Nigeria, Diamond Bank PLC, Ecobank Nigeria, Fidelity Bank of Nigeria PLC, First Bank of Nigeria, First City Monument Bank PLC, Guaranty Trust Bank PLC and Heritage Bank PLC.

Others are Keystone Bank, Skye Bank PLC, Stanbic IBTC Bank PLC, Union Bank of Nigeria PLC, United Bank for Africa PLC, Unity Bank PLC, Wema Bank PLC, Zenith Bank PLC and the CBN.

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NSE RoundUp! Nigerian equities net N165bn gains amidst global equities rally

Nigerian equities sustained a largely bullish performance during the immediate past week, leaving investors with net capital gains of N165 billion at the weekend. Benchmark indices at the Nigerian Stock Exchange (NSE) showed widespread positive sentiment as quoted companies rounded off the submission of their third quarter earnings.

The deadline for the submission of the nine-month third quarter earnings for quoted companies elapsed on Tuesday October 31, 2017. Most active companies met the deadline.

The All Share Index-the value-based index that tracks share prices at the NSE, trended upward to 36,939.59 points at the weekend as against its week’s opening index of 36,462.26 points. This represented a week-on-week average return of 1.31 per cent.

Aggregate market value of all quoted companies correspondingly rose from its week’s opening value of N12.619 trillion to close the week at N12.784 trillion, representing net capital gain of N165 billion. The uptrend nudged the average year-to-date return at the Nigerian equities market to 37.45 per cent..

The performance of the Nigerian equities market highlighted the global demand for quoted shares during the week. From the advanced markets of Europe, Britain and America to the emerging markets of the Asia and Africa, global equities showed a largely positive performance.

In Africa, South Africa’s FTSE-JSE All Share Index appreciated by 1.6 per cent. Kenya’s benchmark NSE 20 Index posted a return of 4.2 per cent. Egypt’s EGX 30 Index gained 2.6 per cent while Ghana’s GSE Composite Index posted a modest week-on-week return of 0.6 per cent.

In the developed and global emerging markets, United Kingdom’s FTSE Index rose by 0.8 per cent. In United States of America, while the S & P 500 was unchanged, the US NASDAQ Index rose by 0.6 per cent. Germany’s XETRA Index posted a gain of 1.9 per cent. Japan’s Nikkei 225 Index rose by 2.4 per cent. Hong Kong’s Hang Seng Index inched up by 0.6 per cent. France’s CAC 40 Index posted a modest gain of 0.2 per cent while India’s BSE Sens indicated above-average return of 1.6 per cent. However, Brazil’sIbovespa Index declined by 3.5 per cent. Russia’s RTS Index slipped by 2.2 per cent while China’s Shanghai Composite Index declined by 1.3 per cent.

Total turnover at the Nigerian stock market stood at 1.363 billion shares worth N17.714 billion in 21,891 deals last week in contrast to a total of 1.394 billion shares valued at N16.403 billion that exchanged hands in 19,195 deals two weeks ago. The financial services industry led the activity chart with 1.046 billion shares valued at N9.032 billion traded in 12,847 deals; thus contributing 76.79 per cent and 50.99% to the total equity turnover volume and value respectively. The consumer goods industry followed with 119.907 million shares worth N5.109 billion in 4,827 deals. The third place was occupied by healthcare industry with a turnover of 70.587 million shares worth N77.530 million in 349 deals.

The three most active stocks were FBN Holdings Plc, Diamond Bank Plc and United Bank for Africa Plc, which accounted for 497.016 million shares worth N2.947 billion in 4,205 deals, contributing 36.48 per cent and 16.64 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 1.16 million units of Exchange Traded Products (ETPs) valued at N6.404 million executed in 13 deals compared with a total of 104,544 units valued at N11.506 million traded in seven deals two weeks ago.

In the sovereign debt market, a total of 2,775 units of Federal Government bonds valued at N2.770 million were traded in four deals, compared with a total of 559 units valued at N485,803 traded in five deals penultimate week.

All sectoral indices at the Exchange closed positive with the exception of the NSE Consumer Goods Index, which slipped by 0.07 per cent. The NSE 30 Index-which tracks the 30 most capitalised companies at the Exchange, posted a gain of 0.92 per cent. The NSE Banking Index appreciated by 0.27 per cent. The NSE Insurance Index rose by 1.52 per cent. The NSE Oil and Gas Index posted a gain of 1.44 per cent while the NSE Industrial Goods Index rose by 1.45 per cent.

There were 37 advancers against 29 decliners last week as against 33 advancers and 32 decliners recorded in the previous week. University Press recorded the highest gain of 26.34 per cent to close at N2.59. Learn Africa appreciated by 19.05 per cent to close at N1 while Flour Mills Nigeria rose by 18.23 per cent to close at N35.47 per share.

On the downside, Newrest ASL led the decliners with a drop of 18.3 per cent to close at N6.43. Linkage Assurance dropped by 13.3 per cent to close at 78 kobo while Unilever Nigeria lost 6.5 per cent to close at N40 per share.

“In the coming week, we expect the positive performance to be sustained given the increasingly favourable condition in the oil market – a major anchor of the business cycle. Following a broadly positive performance and investor sentiment this week, we expect the market to sustain momentum as knock-on effect of the oil rally buoys investors’ appetite for Nigerian assets,” analysts at Afrinvest Securities stated.

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NSE LIVE! Equities lose N36b amidst profit-taking

After two positive consecutive trading sessions, Nigerians equities came under sell pressure on Thursday as investors turned round to take profit. With 27 decliners to 19 advancers, the overall market position shifted downward, dropping by N36 billion.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), declined by 0.29 per cent to close Thursday at 36,517.48 points as against its opening index of 36,622.85 points.

Aggregate market value of all quoted equities at the Exchange dropped from its opening value of N12.675 trillion to close at N12.639 trillion. The decline depressed the average year-to-date return for Nigerian equities to 35.88 per cent.

Most sectoral indices also closed negative. The NSE Insurance Index dropped by 1.2 per cent. The NSE Consumer Goods Index dropped by 1.0 per cent. The NSE Oil & Gas Index dipped by 0.5 per cent while the NSE Banking Index slipped by 0.20 per cent.

The momentum of activities improved with investors staking N4.22 billion on 356.80 million shares in 4,384 deals. United Bank for Africa was the most active stock with a turnover of 90.5 million shares valued at N842.01 million. Fidelity Bank followed with a turnover of 37.07 million shares worth N62.42 million while Custodian and Allied placed third with 35.54 million shares valued at N142.10 million.

Read also: National grid to add 540MW as Mobil Producing Nigeria reaches new deal

Brewers led the decliners. Nigerian Breweries-the second most capitalised quoted company, led the downside with a drop of N6 to close at N155. International Breweries followed with a drop of N2.72 to close at N51.78. Forte Oil dropped by N2.12 to close at N40.30. PZ Cussons Nigeria lost N1 to close at N23. Cement Company of Northern Nigeria dropped by 47 kobo to close at N9.70. Mobil Oil Nigeria declined by 40 kobo to close at N155.60 while Guaranty Trust Bank lost 30 kobo to close at N41.70 per share.

On the upside, Nascon Allied Industries rose by N1.55 to close at N16.77. Presco followed with a gain of N1.50 to close at N66.50. Lafarge Africa added N1.46 to close at N52. Dangote Sugar Refinery rose by N1.28 to close at N15.84. Danfote Flour Mills gathered 76 kobo to close at N8.26 while Guinness Nigeria appreciated by 65 kobo to close at N101 per share.

“Given today (Thursday)’s negative performance, we expect nine-month 2017 releases to continue to dictate market performance in the near term. However, we advise investors stay bullish on stocks with strong fundamentals,” Afrinvest Securities stated.

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5 money moves to make in your 30s

         Some of the basic financial rules stay the same as you get older (i.e., pay off debt and keep saving), but there are some steps that are more important at some some stages than at others.For 30-somethings, it means paying off more debts as your income grows, reevaluating current spending habits, and diving head first into adulthood by updating your insurance coverage.Taking care of these responsibilities is essential to making sure you're on stable financial footing.Below, you'll learn why each one of these steps is important to tackle before you move on to the next stage of life.

• 1. Increase retirement contributions Here's what the median retirement savings amount is for all Americans (hint: it's not great) between 1989 and 2013, which is the latest data available from the Economic Policy Institute (EPI):As you can see, 32- to 37-year-olds had a median savings amount of just $480 in their retirement savings in 2013 (yikes!), and that number was down from $1,123 in 2007. EPI notes that the median savings numbers are so low because nearly half of Americans don't have any retirement account savings at all.These numbers show just how important it is to not just start a retirement savings account, but to keep funding it as well.If you already have a 401(k) at your current job and save a specific percentage of your income then great! But now is the time to slowly raise that percentage. Consider bumping up contributions by 1 percentage point as a first step. If you can handle more that's great, but the point is to start putting more money aside. If you can't swing an increase in contributions right now, then consider doing it the next time your employer gives you a raise.Also, if you're not taking advantage of your employer's matching 401(k) contributions, then start with that first. Make sure you're contributing enough money to your 401(k) to get the full matching amount from your employer. Remember, in 2017 you can max out your retirement contributions at $18,000.If you don't have a 401(k) through your employer, then make sure you've set up an individual retirement account (IRA) for yourself, and that you've automated your contributions.

• 2. If you're not investing, start now Adding to your 401(k) and IRA is one thing, but 30-somethings shouldn't overlook investing their money in other ways as well.Investing in stocks can be a great choice, but if you're not into picking individual stocks then selecting a low-cost (and low maintenance) index fund is also a good choice. A Vanguard 500 Index Fund has an expense ratio of just 0.14%, and the company's overall index fund expense ratios are 71% lower than industry averages.This fund tries to match the returns of the S&P 500, and has historically achieved annual returns of about 10%.In short, you'll be well diversified right from the start, and the low expense ratio means that the vast majority of your gains can go straight back into reinvesting in the fund -- instead of a fund manager's pocket.

   

• 3. Evaluate your insurance needs This one isn't all that exciting, but it's still very important. If you've gotten married, had kids, bought a house, or made any other major changes in your 30s, you should take a good look at your insurance needs and make sure you have the proper coverage.For example, if you don't have any life insurance then buying a good, inexpensive,term life insurance policy is a smart way to ensure that your family receives money for a mortgage, your family's living expenses, etc. if you die. There are lots of different options for these based on what your payout amount would be and how long you want the term to last for. The most important part, however, is just making sure that you have a policy in place.It's also smart to look into other types of insurance you may need as well, such as disability insurance, an umbrella policy to extend your renter's insurance or homeowner's policy, and health insurance. Just remember not to overspend on insurance you don't need.

• 4. Re-evaluate your budget and pay off debt You may still be spending money in the same carefree way you did when you were in college, but your financial responsibilities are likely to grow in your 30s. That's why it's a good time to reevaluate your spending habits.I occasionally go through my own finances to see if there are any services I'm paying for that I don't really use, or places I'm spending too much money and need to cut back on. The idea isn't just to trim the fat, but to also take that money you're spending and apply it to any existing debt, like student loans.According to the latest data (from 2015), 30-somethings account for a larger amount of student loan debt than any other age demographic, with $408 billion owed.If that's you, or if you've racked up credit card debt, then it may be time to take a look at your budget and how you can reallocate some of your spending to paying off debt.

• 5. Add more to your emergency fund and savings account And the last but certainly not the least money move you should make in your 30s is to make sure you're properly funding your savings account. According to a recent Go Banking Rates survey, more than half of Americans have less than $1,000 in savings, and this includes many people in their 30s.A good goal to shoot for if you have little-to-no savings is get your account to $2,000. That's the amount the Federal Reserve Bank of New York says it will take to overcome an average-size financial emergency. That is, of course, just a starting point. Ideally, you want to have enough in savings so that you can cover three to six months of living expenses in case you lose your job. But don't be overwhelmed with getting to that point. The best way to increase your savings without thinking about it is to set up automatic monthly withdrawals from your checking account to your savings account. This will help you jump start the savings process and keep it on autopilot as your build up your account. Some final thoughts Getting older usually comes with more responsibilities, and that includes setting personal financial goals. It's easy to feel overwhelmed about getting your finances in order, but just remember that any steps you can take to save more, spend less, and pay off debt will help you achieve your goals. If reading through all of these money moves make you nervous, then start tackling one of them and focus on that first and then move onto the next step. Any progress is better than none.

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12 criteria for starting a successful business, if you want to get rich

Starting your own business sounds good and great. But what is the ideal set up for a company?

Founders of a company often make decisions that determines the ultimate success or failure of an enterprise. However, a few decades ago investment strategist Richard Russell already listed twelve criteria for the "ideal business model".

If you consider starting a new business (or know someone who wants to do that), consider the list below carefully. You’ll find out meeting all twelve criteria is extremely difficult. yes' The suggestion therefore would be to meet as many criteria as possible of the 'ideal business model'.

Of course, whatever business model you choose, the first years require hard work and perseverance. But by electing a strong business model, your chances of success increase considerably.

For many young people in search of jobs, starting your own business should be considered as a serious alternative.

These are the 12 criteria:

1) The ideal business does not only sell to a local community, but have an unlimited global market .

(2) The product of the ideal business is characterized by an "inelastic" demand. People want your product so badly, they are prepared to pay high prices.

(3)Moreover, the product can’t be easily substituted or copied.

(4) The labour input for the ideal business is limited. So, basically you have an office with executives. Production, marketing and distribution are all done by other companies.

(5) The overhead cost of the ideal business is low. It does not depend on an expensive location, large amounts of energy input, expensive employees or a large inventory.

6) The ideal business has no need for large investments in equipment. Therefore capital is not tied up in the business.

7)Cash generation is strong, so your company does not depend to much on credit arrangements.

8) Government regulation is not interfering with your business a lot.

(9) The ideal business can be moved easily to other locations.

(10)The ideal business inspires you intellectually and makes you happy.

(11)The business leaves you with free time. Ideally, it allows you to spend time improving the company, rather than being a person working in the company.

(12)Last but not least: your income is not limited to your personal output, a problem hairdressers have for example. On the contrary, selling to one person or a million customers basically makes no difference for the ideal business.

Source: https://amp.pulse.ng/bi/strategy/12-criteria-for-starting-a-business-if-you-want-to-get-rich-id7392930.html

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5 helpful business tricks for small businesses

It’s unfortunate that a lot of small businesses don’t survive beyond the first few years of their existence, but this mainly happens due to a lack of knowledge and understanding of what needs to be done to help sustain a small business.many run into business because the profit is attractive,but after some years the story is not the same. this is a general problem for all businesses either large scale or small scale but here are the 5 helpful business tricks that can help to sustain your business.

• Remain Abreast of Your Cash Flow

This is very important, especially for small businesses. It is important to have a good and accurate idea of the daily, weekly and monthly financial needs and trends of your organization, and to also keep informed of your current cash flow. When you have a good idea of your financial situation at every point, it makes you financially prudent in your business decisions, which help to improve your sustainability as a business.keep proper records of your daily, weekly, monthly expenses and income,this will help to determine the profitability of your business.

• Set Business Goals

This can also be refers to as the business targets which in return help to achieve business goals. The fact still remains that, small scale businesses need to work with targets if they intend to remain in business in the long run. Setting business goals and objectives and developing targets/ways to help meet goals and objectives stated is essential for business success, because it serve as a ‘planning tool’ that help keep your business to stay focused, and ultimately helps to move your business forward in the long run.

• Learn How to Use Low Budget High Impact Marketing

Small businesses cannot afford to waste money on ineffective marketing, so as a small business, if you must spend on marketing, you need to ensure that what you are spending on will have the needed impact. One way to do this is by testing marketing tactics for effectiveness before adding them to your campaign or marketing mix. Also, be sure to invest in low budget marketing options like social media and content marketing.

• Monitor Business Trends

For some reason a good number of small businesses fail to do this. No business operates in a vacuum, and small businesses need to be particularly sensitive to business or industry trends because they bear the brunt of even the slightest change in these trends. It is important for small businesses to remain current on trends and issues happening in their industry and local community, and if possible, go a step further to predict possible future trends likely to occur. This way, it is easier to develop a response or reaction plan to quickly adjust to the changes before they negatively affect the business (if large corporations are doing this, it only means small businesses need to do this even more if they want to survive).

• Motivate Your Staff

As a growing small business, you need your staff to remain motivated and ready to give their best to the growth of your firm. You might not have the resources to keep your staff happy in monetary terms, but you can figure out other incentives to help keep them motivated and encourage higher levels of performance.

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Nigeria: States and Fiscal Sustainability Plan

EDITORIAL

The states must devise measures to run on their own steam

Despite the recent euphoria that greeted the announcement that Nigeria had come out of recession, the most fervent optimist would concede that the economy is still in the doldrums. This is more obvious in several of the 36 states. That perhaps explains why the federal government has decided to put in place a regulatory and monitoring mechanism to track developments, aside reiterating that consideration for support to these states would be contingent on certain parameters.

At a workshop organised by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on alternative sources of revenue generation for sustainable development in states and local government councils, the federal government said only states with sound financial discipline would now access further assistance from it. Fiscal discipline, improved revenue generation, rational allocation and efficient use of resources, said Vice-President Yemi Osinbajo "must be strategies adhered to by every tier of government if we must return to a path of sustainable growth."

In as much as we subscribe to that idea, we wait to see the implementation. In 2016, the federal government introduced some 22-point fiscal sustainability plan for states and local governments with a view to enhancing fiscal prudence and transparency in public expenditure. All state governments were expected to abide by the FSP's strategic objectives around the five key elements of accountability and transparency, increase in public revenue, rationalisation of public expenditure, public financial management reforms, and sustainable debt management. The ultimate objective of the FSP was to ensure that states were on the path of fiscal sustainability.

However, after more than a year of the existence of the FSP, many of these states are still the biggest source of corruption, waste and mismanagement. Unemployment has remained stubbornly high even as many of the states are unable to perform routine duties of picking up the bills at the end of the month. Only recently, President Muhammadu Buhari pleaded with the states to pay the salaries of workers at least with some of the refunds from the Paris Club.

The inability of the states to pay salaries had a year ago attracted the attention of the federal government and the Central Bank of Nigeria (CBN) in a special intervention package. The Debt Management Office (DMO) also helped them to restructure their commercial loans to the tune of N660 billion. There is no sign that all this had any salutary effect.

Besides, the failure of the states has also become a pressing concern in terms of generating internal revenues. Outside Lagos and perhaps Rivers States with impressive IGR, the remaining states rely more on the dwindling allocations from Federation Account to fund their services. This has led their economies to wither and decay. In addition, there are many leakages that needed blocking. This is rife more in the payroll and procurement policies.

It is also insensitive to continue with the generous pensions for ex-governors, many of whom are still drawing hefty salaries from government. Moreover, a situation where a governor appoints 500 personal aides is nothing but sheer irresponsibility. Top officials in some of these poor states are still ferried around in private jets and helicopters mostly to attend unnecessary social events, including marriage ceremonies and birthdays.

However, the chicken is finally coming home to roost with the outright economic bankruptcy of many of these states that now find it increasingly difficult even to pay salaries. Given the foregoing, we endorse the new resolve of the federal government that the states must put their house in order to further access help. They must clean up their financial system and go all out to collect tax from the citizenry as Lagos State is doing so admirably well. The states must be made to run on their own steam.

source: http://allafrica.com/stories/201709180874.html

Nigeria

Govt to Swear in New Lawyers, Including Professor Indicted for Sex Scandal

Twenty-nine of the 30 lawyers nominated to be sworn in as Senior Advocates of Nigeria, SANs will on Monday take their… Read more »

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Nigeria’s oil production cost down by 70.5% to $23 a barrel – NNPC

The Nigerian National Petroleum Corporation (NNPC) has driven down the cost of crude oil production from $78 dollars per barrel as at August 2015 to $23 per barrel representing 70.5 per cent reduction.

The Group General Manager of National Petroleum Investment Management Services (NAPIMS), a unit of NNPC, Engr. Dafe Sejebor, who disclosed this during the inauguration of the Anti-Corruption Committee of the unit, said the country had saved a minimum of $3billion per annum.

Engr. Sejebor said NAPIMS arrived at the figure after looking at the difference between the $78 and $23 which represent the old and new cost of production in relation to the present daily average production in the country.

“If you knock down your cost of production from $78 per barrel to $23, take the difference and multiply by the average daily production, you will discover that we are saving a minimum of $3billion in the upstream for both Production Sharing Contracts (PSCs) and Joint Ventures (JVs)”, he said.

The GGM informed that the target was to bring the cost of production to between $17 and $19 for onshore and offshore production respectively.

He commended the Federal Government for its support to the NNPC management in tackling the challenges in the petroleum industry, especially the cash call exit agreement signed in 2016 and the reduction of contracting circle from three years to six months.

On the new Petroleum Policy, Engr. Sejebor said it was necessitated by the increasing difficulty in operating the petroleum industry within the framework of the old Petroleum Act in the face of the delayed passage of the Petroleum Industry Bill (PIB).

He said the policy would restore investors’ confidence in the industry pending the full passage of the entire PIB by the National Assembly.

On the NAPIMS Anti-Corruption Committee, Engr. Sajebor urged the management and staff to let the principles of accountability, integrity, honesty and transparency be their watchword.

He charged them to generate positive ideas to help tackle the challenges facing the industry and help reverse its fortunes.

He admonished staff to key into the NNPC management’s zero tolerance for corruption.

It would be recalled that the Group Managing Director of NNPC, Dr Maikanti Baru, while inaugurating the Anti-Corruption Unit at Corporate Headquarters recently, had directed all the Strategic Business Units (SBUs) and Corporate Service Units (CSUs) to establish their own anti-corruption committees and NAPIMS was the first to comply with the directive.

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Nigeria can generate N56bn from coal briquettes in 3yrs – Expert

An economic expert has said that Nigeria can make a whopping N56billion in 3 years by reviving the coal industry, especially with the use of coal briquettes for industrial and domestic use, Leadership reports.

An industrial pharmacist and specialist in marketing new technologies, Mr Emmanuel Nwankwo, said Nigeria really needs to go back to basics, which is the use of coal since it has it in abundance, starting from Enugu State.

He said that the use of coal briquettes will help in the diversification agenda of the federal government, especially as the global market for oil and gas appears to be shrinking by the day.

The expert said diversification of coal into other areas that will move the economy is necessary because the use of coal has now been totally repackaged, redefined and there is a brand new analysis of how to use more cleaner coal that will erode all the negativity it had before.

Nwankwo continued: “It is a brand technology, innovation to use coal for domestic, household, industrial as well as institutional use consumption. We use this coal briquettes and the biggest advantage is that it will stop people from cutting down trees.”

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