'The Street Child' by Stanley Chuck. Please, Click on the link and vote

Please click on the link and vote for my story on etisalat flash fiction. All you need to do is follow the link and click on the facebook like button to increase the like numbers. Voting stops 30th of November

The Street Child  http://prize.etisalat.com.ng//flash-fiction/voteall.php?id=2121 via @etisalatreads

In October, Lagos state paid N1.5bn to 333 retirees

The Lagos State Pension Commission said it paid another set of 333 retirees the sum of N1.5bn in October.

According to a statement obtained on Sunday, LASPEC said the beneficiaries were from the mainstream civil service, local governments, state Universal Basic Education Board, teachers’ establishment and pensions office as well as other parastatals of the state government.

The Director-General, LASPEC, Mrs. Folashade Onanuga, said that since monthly payment of accrued pension rights started in August, 2015, the administration had been able to pay the cumulative sum of N20.98bn to a total number of 4,799 retirees under the Contributory Pension Scheme in the last 15 months.

She spoke at the 32nd retirement benefit bond presentation ceremony, which took place at LASPEC office in Lagos, adding that the payment of  pensions was structured in such a way that one did not need to know anyone before one could be paid.

She also advised the retirees to put their money in ventures they could manage, and not one that would put their health in jeopardy.

Onanuga said that apart from the commitment to paying the entitlements of the retirees, the Lagos State Government was interested in the well-being of the retirees and would soon have a one-day retirees’ interaction with the governor.

“This forum, which will be the first of its kind in Lagos State as well as in Nigeria at large is tagged- ‘Retirees day-out with his Excellency’, and the first outing will take place early in the New Year,” it stated.

Nigeria, D8 nations agree to increase trade by $500bn

The Chambers of Commerce and Industry of eight developing countries, otherwise known as D-8 have agreed to increase trade volume among member countries to the tune of $500 billion by the year 2023.

The countries are Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

This pact was contained in a communiqué issued at the end of the D-8 Chambers of Commerce and Industry meeting held at Izmir, Turkey in October 2016.

A copy of the communiqué made available to journalists yesterday in Kaduna by the President of Kaduna Chamber of Commerce and Industry, Dr. Abdul Alimi Bello, who was at the Izmir, Turkey, said they planned to enhance trade amongst the D-8 countries, where the countries have comparative advantage: Bangladesh in silk and mango; Turkey in culture fishing, leather and shoes sectors; Nigeria in construction, mining, agriculture and energy fields.

Other resolutions of the D-8 countries show they plan to provide five years’ visa for businessmen with multiple entries.

Member-countries of the developing nations also resolved to abolish all existing commercial and economic restrictions that obstruct economic co-operation between them, abolish custom duty tariffs between countries as well as facilitate and enhance banking operations within member-countries.

Other highlights of the communiqué include: signing the double taxation avoidance agreement, to cooperate in tourism between member-countries, provide scholarship by the Izmir University of Economics to one student from each chamber of commerce and industry that participated in the meeting, to develop know-how and technology transfers between the D-8 countries, to participate reciprocally in trade exhibitions in D-8 countries to increase commercial and economic interaction.

Naira may not fall below 475

Economic and financial experts say the naira may not fall below 475 against the United States dollar between now and end of December.

They based the prediction on declining dollar demand and efforts being made by the Central Bank of Nigeria to boost supply of foreign exchange.

The experts spoke in separate interviews on the outlook of the naira.

“It appears the exchange rate has got to the peak, which is something around 470/dollar. I think  the naira may not go beyond 475/dollar between now and end of December,” a currency strategist at Ecobank Nigeria, Mr. Kunle Ezun, said.

He added that holidaymakers returning to Nigeria for Christmas would also make dollar supply to increase.

According to Ezun, this will reduce the currency volatility created by dollar scarcity.

The Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said due to declining economic activities, demand for forex was gradually reducing.

This, coupled with efforts being made by the regulator to boost forex supply, will make the naira-dollar exchange rate to remain around the 470 mark in the coming weeks, according to him.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said efforts being made by the CBN to boost supply would make the naira to appreciate in coming months.

He said, “The CBN Governor, Mr. Godwin Emefiele, met with the International Money Transfer Organisations in London on Saturday. The government is trying to woo these operators to enable them to bring more forex into the country. This will boost supply. Already, the exchange rate which the IMTOs can sell dollars to the banks has been increased from 336 to 375.”

He added, “At the association level, we have created committees that will check sharp practices in the market. All these will yield result.”

Group points out South-East projects for FG’s $30bn borrowing plan

The leadership of Buhari Support Organisation (BSO), Enugu State Chapter, has outlined some critical infrastructure projects in the South-East to be included in the $30 billion external borrowing plan for 2016, 2017 and 2018 being worked out by the Federal Government.

The group pleaded that Enugu coal-to-power project, second Niger Bridge and Port Harcourt to Maiduguri railway be included in the ‘Buhari infrastructure renewal.’

In a statement by its publicity secretary, Eze Chibueze, the group noted that since food security cum agriculture was part of the major thrust of the President’s diversification plans, it would be appreciated if the Adani-Anambra rice project was factored into the programme.

“We understand that international creditors predicated the facility on the integrity quotient of Mr. President; most Nigerians are also well disposed to the loan, knowing fully well that the loan will be prudently managed and that President Buhari may not borrow again in the next eight years,” the group stated.

While affirming their full support for the loan, Enugu BSO noted that the President was handicapped by the culture of impunity, crumbling oil prices and the unprecedented looting that caused the general infrastructure deficit.

The group, however, expressed happiness that a “majority of Nigerians have come to the inevitable conclusion that without the Buhari infrastructure renewal, we will remain trapped in gross unemployment, abject poverty and weak infrastructure.”

It, therefore, appealed to the National Assembly and indeed all citizens to support the scheme, stressing that it “remains the only patriotic and viable means to renew our critical, social and physical infrastructure.”

According to an expert, Nigerians borrow more as domestic debt of banks hit N13.8trn

Borrowings by individuals and corporate entities from banking institutions have increased due to the economic recession, according to data from the National Bureau of Statistics.

Many now find it difficult to purchase their usual consumables, leading to increased demand for personal loans.

Topping the list of the increased borrowing are housing and personal loans to support basic necessities like feeding, school fees, repairs and other household miscellaneous.

“Households’ demand for house purchase lending, unsecured credit card lending and unsecured overdraft/personal loans increased in Q3. Corporate lending also increased across all firms’ sizes. These are expected to increase further in the Q4,” the report said.

Secured loan performance, as measured by default rates worsened in Q3, with attendant losses to banks and expectations of improvement in Q4.

Meanwhile, the oil and gas sector’s indebtedness to the banks increased from a N3.2 billion level during the first quarter of 2015 to N4.9 billion in the third quarter of 2016.

This is just a part of private sector indebtedness to the banking sector in the period under review.

The NBS, in its third quarter 2016 Private Sector Banking Credit, showed that banking debt portfolio at the end of the third quarter (Q3) of 2016 is N13.8 trillion. Power and energy industry and services, which are currently struggling to fund their projects, are also increasing their respective obligations.

Private sector credit flow represents the net amount of liabilities (for the instruments debt securities and loans) that have been incurred in various sectors.

Specifically, the oil and gas industry indebtedness rose by N3.6 billion, while the service segment increase was put at N1.2 billion in the period under review. Other high-profile debt increases include the manufacturing, N2.2 billion; mining and quarrying, N27.3 million; construction, N631.5 million; trade/general commerce, N973 million; and real estate, N760.2 million.

Finance, insurance and capital market debt recorded N933.4 million; education N89.3 million; information and communication, N957 million; and transport and storage, N459.2 million.

For example, about 15 energy companies in the country collectively owed bank a total of N380.76 billion, which has translated to a non-performing loan.

Speaking on his company’s indebtedness to banks, the Managing Director and Chief Executive Officer, Egbin Power Plc, Dallas Peavey Jr., said the company owes banks $325 million (N99.13 billion).

He noted that the scarcity of dollars had continued to take a toll on the company’s operations.

Speaking on the implication of such bank exposure to the oil and gas companies, an economic expert and Director-General of Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf yesterday said that the credit risk outlook for these two sectors were not positive due to attacks on oil installations.

The LCCI chief noted that the recovery of the oil and gas sector would depend largely on the progress made in the curbing of the attacks on oil installations as well as the outlook for oil price.

Professor of Economics and Director, Centre for Petroleum, Energy Economics and Law, University of Ibadan, Adeola Adenikinju, blamed the power sector’s indebtedness to banks on the technical and economic losses that remained unacceptably high in the sector.

The don maintained that many government agencies, powerful individuals and organisations were also indebted to the power companies, thereby, worsening the plight of the industry and limiting their ability to meet their obligations to the banks.