How to tackle infrastructural gap in South East, by Nnaji (Read full details)

http://ift.tt/2mL34my

Bart Nnaji

The near absence of federal government presence in industrial and infrastructural developments in the southeast has created a huge gap in the economic and security stability of the zone and its people, former Minister of Power, Prof Barth Nnaji has said.

To overcome the infrastructural challenge however, he suggested a synergy among the five states of the zone to harness the individual potentials of each state as was the case in the 60’s when eastern zone was reckoned an economic giant.

Nnaji spoke yesterday in Awka, Anambra state capital on the topic, “Regional Economic Development: Implications for growth and sustainable development of southeast Nigeria”, organized by African Heritage Institution in partnership with the DFID’s Partnership to Engage, Reform and Learn (PERL).

Speaking on the need for regional integration of the zone, Nnaji stated that since the growth of the region was halted by Civil war, efforts at revamping it had failed because of “lack of integral block and organized leadership”, stressing that southeast has not found the will to jointly address critical projects which a single state will not have resources to undertake.

Nnaji said that the registration of the South East Region Economic Development Corporation (SEREDEC) was aimed at driving sustainable economic growth, stressing that it would produce a generic model of regional development agenda for the region devoid of politics and ethnic colouration.

He further stated that the industrial development of the southeast would be incomplete without the establishment of an industrial park and Industrial free zone in Aba, Abia state to propel the manufacturing industry. Stressing that the activities of the free zone will create vibrant synergetic economic partnership among the regions in Nigeria, he said that already the Afrexim Bank, Cairo was discussing with Abia state government on the establishment of a 7500 hectares industrial park to promote export.

Identifying stable power supply as key to industrialization and economic development of the zone, he said that the southeast was badly hit by inadequate power given her interest in small and medium scale industries.

Vía Uzomedia http://ift.tt/2manVfj

Senate pledges speedy passage of national building code

http://ift.tt/2lG2Qu2

Senate President Bukola Saraki at the National Assembly PHOTO: TWITTER/NIGERIAN SENATE

To forestall increasing cases of building collapse in the country, the Senate has promised a speedy passage of all necessary legal frameworks on the revised National Building Code.

Senate President, Bukola Saraki gave the assurance, while declaring open the public hearing by the Senate Committee on Lands, Housing and Urban Development on “The Need to Prosecute Building Laws Violators”.

The Upper Legislative Chamber according to Saraki, who was represented by the Senate Leader, Senator Ahmad Lawan, would also employ more aggressive oversight scheme.

He noted that the forum would help the legislature to “provide a platform to undertake a detailed and thorough investigation with the engagement of all the relevant stakeholders with a view of finding possible and lasting solution to these preventable housing disasters.

“Working together we will all rid our country of this menace, if not in its entirety but bring to the barest minimum the occurrence of these disasters and also very importantly purge the construction industry of all forms of unsafe and negligent acts in the construction processes”.

Lawan added that Nigerians had in recent times endured unacceptable incidences of building collapse, which have sadly claimed the lives of a number of our citizens, lamenting that “many cases of building collapses have been recorded with about many lives lost, yet very few people are held responsible”.

He, however said that cases of building collapses were not peculiar to Nigeria, but added that across the world building development practitioners are working hard to reduce these incidences to the barest minimum, saying “rate of occurrence and the intensity of damage are low in the advanced nations where strict controls, enforcement of the codes and high ethics of professionalism are made imperative.

“In our country, the principal causes of these collapses are non-compliance to the building laws, use of unskilled artisans, poor supervision, inferior materials, ignorance, lack of maintenance, misuse of structures, conflicts among professionals and corruption.

“The lack of enforcement of our building laws and flagrant violations is directly connected to the exacerbation of this problem. It could also be said that the non-adherence to this laws may also be linked to the other problems we see now with the constant infernos being recorded at market places across the country and other public places and other housing disasters.

Earlier, chairman of the committee, Senator Barnabas Gemade, stressed the need to prosecute building law violators in the country, saying that “the incessant building collapses in the country had given the government and Nigerians sleepless nights due to the huge loss of lives and property”.

Vía The Guardian Nigeria http://ift.tt/2kXYqPf

Recession blues – Part 3

http://ift.tt/2lGkZYP

Vía The Guardian Nigeria http://ift.tt/2kIVZ4M

New N20billion REIT lifts Nigerian real estate industry

http://ift.tt/2lFWfQe

Fresh prospects maybe on the card for real estate investors seeking property ownership without the attendant expenses or difficulties of being a landlord, if statements made recently by one of Nigeria’s leading property development company – Top Services Limited (TSL) are anything to go by.

The company with specialty in providing “neighbourhood” malls has announced, it will float a N20 billion Real Estate Investment Trust (REIT) in the capital market.

REITs are corporations or trusts that use the funds of many investors to purchase and manage income property and/or mortgage loans. It is traded on the Nigerian Stock Exchange (NSE) just like shares.

It offers tax advantages to investors and provide a liquid way to invest in real estate, which is an otherwise illiquid market. Another benefit of REITs is that they allow investors to share in non-residential properties like hotels, shopping complexes, malls, and industrial properties.

REITs require no minimum investment and do not necessarily increase and decrease in value along with the broader market. However, they pay dividends no matter how the shares perform.

In Nigeria, REITs are highly successful and provides less risky investment options in real estate to both small and big investors, regular and dependable income to the unit holders and attraction of massive Foreign Direct Investment (FDI) in the real estate sector. It enjoys pockets of tax exemptions that attract investors and fund managers such as exemptions of investors from withholding taxes (WHT) as well as Value Added Tax (VAT) and Capital Gains Tax (CGT) on sales of these units or securities.

Currently, there are four listed property companies on the NSE with a combined market capitalisation of over N45 billion. These include Skye Shelter Fund PLC, Union Homes Real Estate Investment Trust, UPDC and UACN Property Development Company.

Experts say, the property companies listed, UACN Property Development Company and the UPDC REIT have the most diversified investment portfolio which include hospitality, office, residential, retail and hospitality assets. Skye Shelter Fund PLC and Union Homes Real Estate Investment Trust are predominantly focused on residential property assets.

But with the proposed entrance of the TSL, the equation may likely change.   The close-ended TSL REIT offer, consisting of 20 million units for subscription at N1, 000 per unit started on February 1, 2017, with First Ally Capital as its lead issuing house and First Ally Asset Management as its fund manager.

Under the scheme, TSL committed itself to building and delivering “neighbourhood” malls that are affordable yet of high quality to attract anchor tenants. To date, TSL has developed four malls; Adeniran Ogunsanya Mall, Surulere, Apapa Mall, Apapa, Cocoa Mall, Dugbe, Ibadan, Oyo State and Akure Mall, Akure, Ondo State, all of which are currently operational and have occupancy rates of over 80 per cent.

Chairman of Top Services Limited, Chief Tokunbo Omisore, said initial investments by the REIT would focus on retail-related real estate including the highlighted four malls owned by TSL. Promising stable and regular income distribution to investors in the REIT, Chief Omisore disclosed that the malls could boast of diverse corporate tenant profile with staggered rental renewal periods, which prevents mass vacancy at any one period.

He listed the strengths of the TSL REIT to include predictable cash flow, multiple anchor tenants at each location with long-term leases, rental payments agreements that are indexed to the naira/dollar rate, zero leverage of assets at inception, while Investors will not take on development, construction or financing risk. In addition, the malls have high average occupancy rate as all the malls are at or above 80per cent occupancy levels.

For Mr. Winston Osuchukwu, Managing Director of First Ally Asset Management, Fund Manager for the TSL REIT, “investing in the TSL REIT allows for diversification of investment portfolio thereby reducing portfolio risks.”

He assured investors that professionals with great care, top skill, prudence and diligence would manage the REIT. For instance, the Investment Committee consists of professionals of diverse skills and in depth knowledge in real estate investment and operations. In addition, the REIT is transparently structured and backed by reputable organizations including ARM Trustees Limited, Stanbic IBTC Bank Plc and Leadway Assurance Plc,”

Osuchukwu appealed to institutional investors, particularly the Pension fund administrators (PFAs), to take advantage of the REIT, adding that the REIT’s excess capital will be invested in upgrading existing facilities, government securities and real estate related investments to enhance the yield of the fund, among other projected income streams.

According to the CEO of First Ally Capital, Mr. Ebenezer Olufowose, access to long term financing like that of the PFAs can help lower cost of rent for tenants on the long run. “This is an opportunity to monetize existing assets and developing TSL investment with some borrowed funds from the bank. We are not bringing in asset, the asset already exist, the cash flow are there, they are guaranteed and we have anchor tenants like shoprite, and other major tenants who have contracts, signed contract with the sponsor.

“Already there, it is secured and it is index to the dollars. So investors will have investment that will yield them good returns progressively over the years. So what’s going to be different here is that would be, if you look at most of the previous event, you raise the money and then you go to build and every time you go to do that, you realize that you have cost over loans, you are not able to finish the project and then you have to move back and raise other cash and all that, but in this case the asset are there.”

Vía The Guardian Nigeria http://ift.tt/2kY6Fe4

Nigerian heads Shelter Afrique

http://ift.tt/2lFWfzI

Femi Adewole

A Nigerian, Mr. Femi Adewole has been appointed as the Acting Managing Director of Kenya-based pan-African finance institution – Shelter Afrique.

He was selected after the Board of Shelter-Afrique accepted the resignation of Mr. James Mugerwa from the position of Managing Director with effect from February 1, 2017.

Mugerwa resigned in order to pursue other interests outside of Shelter Afrique. The reconstituted leadership team comprises Mr. Oumar Diop (Acting Deputy Managing Director) while Mr. Vipya Harawa retains his position as Company Secretary/Director of Legal, Risk, and Compliance.

Adewole has served Shelter Afrique for the past five years first as Director of Business Development and Operations and most recently as Director of Business Development.

He joined as Director, Business Development and Operations in June 2011. He has over 15 years of experience in construction/project finance in the UK and Nigeria and previously worked as Chief Executive Officer/MD for First World Communities in Lagos, Nigeria.

Adewole holds an MBA from the University of Warwick Business School, an MSC in Land Management and Development from the University of East London, an MSC in Architecture and a BSC in Architecture, both from the University of Ife in Ile-Ife, Nigeria.

A partnership of 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company, Shelter Afrique supports the efficient delivery of affordable housing and commercial real estate.

Vía The Guardian Nigeria http://ift.tt/2kIZNml

Banks sign off on N25b yearly fund to finance agro-allied, other products for export promotion (Read full details)

http://ift.tt/2k9Yqd7

Agro-Allied

Deposit Money Banks [DMBs] in the country yesterday announced that as part of their contribution to the Nigerian economy, it has concluded plans to float a N25 billion yearly Fund to finance export – based products as a way of diversifying Nigeria’s foreign exchange [FX] earnings to address supply challenges currently being faced by the country and restore the Naira’s value.

Nigeria’s foreign reserves has dropped drastically from USD59.37 billion as at March 28, 2007 to a low level of $24 billion last year until late last month when it began to pick up again, now berthing at a little above $28 billion, largely driven by low oil prices at the international market as well as quantity shock as a result of vandalism of oil installation in the Niger Delta Region of the country. The consequence of this has brought undue pressure on the Naira because of the scarcity of FX as the country is unduly import – dependant and depends largely on crude oil proceeds alone for her FX earnings.

Now, to address the narrative, the banks under the aegis of Bankers’ Committee said the Fund which is to take off this year would derive from each deposit money bank’s 5 per cent of profit after tax.

Given the banks’ three year financial results , it is estimated that between N24.5 billion to N25 billion yearly will be pooled into the Fund to be held at the Central Bank of Nigeria [CBN] and jointly owned by the banks based on equity contribution, according to the new Director of Banking Supervision, Mr. Ahmad Abdullahi at a press conference at the end of the meeting in Abuja.

He explained that the facility with a maximum financing tenor of 10 years will be deployed to identified projects particularly in the agriculture and allied sector as well as other sectors with high potentials of FX earning for the country through export as part of fast – tracking diversification of the economy as well as import substitution to reduce the high demand of FX for items that can be manufactured locally.

Abdullahi said : “ To help diversify the Economy fast, the Bankers’ Committee has come up with an initiative that five per cent of each bank’s profit after tax will be pooled and kept at the CBN and it will be used to finance eligible, bankable projects that are meant to drive export and import substitution. The scheme is to be managed by a Committee which will screen projects submitted by entrepreneurs. The Fund has a maximum tenor of ten years financing for a project.’

Explaining further, the Banking Supervision Director said unlike other schemes which run on interest, this initiative will be run on equity holding between the banks and the entrepreneurs, with the banks recovering their investment from the profit generated by the projects while the economy as well as the entrepreneur equally benefit .

Also , another decision taken at the yesterday meeting was the plan to resume the cashless policy implementation across the remaining 30 States of the Federation where the policy had not been taken to before its suspension in 2014.

The apex bank Deputy Director/ Head of Shared Services in the Governor’s Department, Mr. Chidi D. Umeano at the briefing said arrangements have been concluded for the resumption of the plan in the remaining states begining on the 1st of May this year; 1st of August and finally 1st of October with each batch covering 10 states each. The implementation of the policy had been effected in only five States and the Federal Capital Territory. The States include : Lagos, Ogun, Anambra, Abia and Kano. The highpoint of the policy is the abolition of cash payment or lodgments for individuals of more than N500,000 daily, with any excess payment or lodgment of the amount attracting a fine.

Vía Uzomedia http://ift.tt/2kyg2mk

Buhari’s counsel absent as hearing of suit over Onnoghen begins (Read full details)

http://ift.tt/2k9QA36

Justice Walter Onnoghen. PHOTO: PHILIP OJISUA

Fayose commends Presidency for sending CJN’s name for confirmation
A Federal High Court, Abuja, yesterday heard the suit filed by human rights crusader, Chief Malcolm Omirhobo challenging the powers of President Muhammadu Buhari and others to appoint a Chief Justice of Nigeria (CJN).

Other respondents in the suit marked as FHC/ABJ/CS/1019/16, are Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, the Federal Judicial Service Commission (FJSC), Justice Walter Onnoghen and the National Judicial Council (NJC).

When the matter came up before Justice John Tsoho, yesterday only the NJC was represented, while others were absent even though they were served with the originating summons.

Counsel to the plaintiff, Mrs. Chinwe Okpala, confirmed to the court that all the defendants had been served and wondered why the other four were not in court. The counsel therefore asked for an adjournment.

Consequently, Justice Tsoho granted the adjournment and fixed March 7, 2017 for hearing.

In the suit, the plaintiff, suing for himself and on behalf of Nigerians, Omirhobo asked the court to give interpretation to Section 231(1), (3), (4) and (5) of the 1999 Constitution as amended.

Omirhobo, a legal practitioner based in Lagos, is asking the court to declare that the judicial arm is not an appendage of the executive arm of government and that by virtue of Section 231 of the Constitution, the President must act on the recommendation of the NJC to appoint the CJN, among other reliefs.

In a related development, Ekiti State Governor Ayodele Fayose yesterday commended the Acting President Yemi Osinbajo for sending the name of Justice Walter Onnoghen to the Senate for confirmation as the substantive Chief Justice of Nigeria (CJN).

Fayose said the action has saved the judiciary in particular and Nigeria in general from unnecessary tension.

He also wished President Muhammadu Buhari well and urged Nigerians to pray for his quick recovery so he can return to office and solve myriad of economic challenges facing the country.

Vía Uzomedia http://ift.tt/2kO97nl

I will be Nigerian president, says Fayose

http://ift.tt/2kbHcNm

Ekiti State Governor, Ayodele Fayose

Ekiti State Governor Ayo Fayose has disclosed his ambition to become Nigerian president.Fayose, who is the chairman of the Peoples Democratic Party (PDP) Governors’ Forum, was not specific on when he will contest for the office of president. “It is according to God’s will that I will one day become the president of Nigeria,” he said.

Although Fayose did not give a timeline for the realisation of his presidential ambition, his declaration will influence the politics of the 2019 presidency. His interventions in his political party and issues affecting the entire country may now be linked to his presidential ambition as he is one of the most vocal members of the opposition .

The governor, who spoke on Saturday in Ado Ekiti while hosting journalists to a dinner, said since the prophesy was from God and it was very clear that he would govern the country, the issue needed not to be debated as he was only waiting for its manifestation.

“It was the same prophesy that said I would return as governor of Ekiti when I was in the trenches that predicted that I will govern the whole country. Many did not believe the first one but it happened just as we are waiting for the manifestation of the second one.

“Do not bother to ask me questions as to how this will materialise, I also do not know how it will happen but all I know is that I shall one day occupy the presidential villa, not as a visitor but as president,” Fayose said.

He claimed to be in the good book of most Nigerians, whom he said would always be ready to make God’s plans for him come to pass at the appointed time. Fayose told his guests at the dinner that he would use his position as chairman of the PDP Governors’ Forum to correct many ills of the society as well as fight the cause of the poor masses.

He disclosed to the gathering that the anti-graft body, Economic and Financial Crimes Commission (EFCC) had again frozen his personal accounts in Zenith Bank in defiance of a court order made last month.

He said he was at the bank’s branch in Ado-Ekiti‎ on Friday to withdraw money in line with a subsisting court order but was prevented from making any withdrawal from the account.

While appreciating journalists for their effective coverage of the Ekiti State, he advised them not to allow themselves to be drawn into politics.Doing so, he noted, would impugn on their integrity and make them inherit other people’s enemies.

The governor also called on Nigerians to pray for their leaders and support them, no matter the situation.The Lagos State chapter of the PDP declined comment on Fayose’s presidential ambition. The chapter’s spokesman, Mr. Taofik Gani said: “I don’t have any comment on that.” When also asked for reaction, the PDP spokesman in the South West zone, Dapo Adeyeye declined to comment.

However, a member of the party’s Board of Trustees and former Minister of Transportation, Chief Ebenezer Babatope said it had never come to his knowledge that the PDP was backing anybody to run for the presidency or that anybody could become the president of the country through prophesy. “But Fayose is free to say whatever he likes. This is democracy and anybody is free to express his desire,” he said.

Vía The Guardian Nigeria http://ift.tt/2jSGjYO

BBN: Eviction fever grips Miyonse, Soma, Efe…Read full details

http://ift.tt/2jIRJDw

Miyonse

Gradually, things are definitely heating up in the Big Brother Naija house. After a week of excitement and a mock eviction, which shook the housemates and brought some of them to tears, Big Brother Naija is set for the first real eviction come Sunday, February 5. The housemate with the least number of votes will be evicted from the house, cutting short the dream of winning 25 million naira and SUV.

On Monday night, BBNaija fans witnessed the first live nomination show. The housemates were each given 45 seconds to nominate two fellow housemates for possible eviction. However, new housemates Bassey and Debbie-Rise were exempted from nominating and being nominated this week.

After the housemates’ individual sessions with ‘Biggie’, it was revealed that Miyonse, Soma and Gifty got the most nominations from other housemates. Perhaps the most shocking move was when TBoss, Miyonse’s on and off ‘girlfriend’ put him up for eviction. Then the moment came when Biggie asked the head of house (HoH), CoCoIce to save one of the nominated housemates and replace with another. CoCoIce then proceeded to save Gifty and replaced her with Efe.

To save your favourite housemate, viewers in Nigeria shouldtext the word “Vote” followed by the housemate’s name to 32052. While for the rest of Africa, follow the AfricaMagictv official account on WeChat and click on the menu option ‘BBNaija’ and select your preferred housemate. Voting opens at 21h00 WAT on Monday, 30 January and closes 20h00 WAT today.

The show is aired 24/7 in 45 countries from Nigeria through East, West and Southern Africa on DStv channel 198 and GOtv channel 29.

Vía Uzomedia http://ift.tt/2jN8UPd

$174 million ADB loan: National Assembly queries Fashola over sudden change in TCN leadership (Read full details)

http://ift.tt/2jIWZXq

The National Assembly is worried about the brewing crisis over the sudden change in the leadership of the Transmission Company of Nigeria (TCN) in fulfillment of the conditions to obtain the $174 million loan granted a year ago by the African Development Bank (ADB).

The loan, which is being sought to tackle the country’s power sector crisis, has as major condition the fact that ADB experts would run the TCN, which has been managing the national grid.

President Muhammadu Buhari’s approval of the condition was said to have caused the sudden replacement of TCN’s former managing director, Abubakar Atiku Tambuwal, with Usman Gur Muhammed.

But in a statement signed by the Senate and the House of Representatives joint power Committees on Power yesterday, they asked the Minister of Power, Works and Housing to appear at the National Assembly on Monday to provide explanations on the matter.

The National Assembly committees also directed that “the status quo ante in respect of the management of TCN be maintained;

The statement, which was signed by Chairman of the Senate Committee on Power, Enyinnaya Abaribe, and his House counterpart, Daniel Asuquo, ordered that “all TCN staff and relevant stakeholders should maintain the peace in the overall interest of the nation.”

It was learnt that lawmakers are very concerned about some issues that might arise from the loan deal if implemented, including “the propriety of allowing the ADB to run the TCN, even when it is yet to be privatized, the legality of removing the TCN management, which is just midway into its tenure and the arrangement under which the critical national asset will be given to the ADB.”

Vía Uzomedia http://ift.tt/2jN3Muw

First heavy rain causes flooding, gridlock in Lagos

http://ift.tt/2jTiZLr

Flooded Obafemi Awolowo Way, Ikeja…yesterday

The first heavy rainfall in the metropolis of Lagos, which began on Monday, continued yesterday leaving in its wake flooding and traffic jam in some parts of the city.

The rain, which started in the early hours of Monday, left knee-deep floods in some parts of Adeniji area in Lagos Island as well as Ikoyi and Victoria Island in Eti Osa Local Council. Yesterday, many parts of Lagos mainland experienced flash flooding after the downpour, which began around 11a.m.

Obafemi Awolowo Way in Ikeja was for nearly an hour after the rainfall still flooded, as the rainwater found little space in the blocked drains to seep through.

Some residents of Idumagbo Avenue on Lagos Island said the flood was caused by the blockage of the major canal in the neighbourhood and its overflow.

Yesterday’s midday rain locked down Akute community in Ifo Local Council of Ogun State. The rain, which fell intermittently for about 30 minutes, blocked almost every available route in the area as commuters had to take off their shoes to wade through the flood, while many motorcycle and tricycle operators shunned the area.

Some of the residents at Idumagbo Avenue on Lagos Island told newsmen that the flooding was caused by the blockage of the major canal in the neighbourhood and its overflow. A resident, Mr. Yinka Shittu, said the road works in the area also contributed to the flooding. “You can see that there is ongoing reconstruction work on this road which has not been completed.

“Also, construction works where the drainage canal meets the road is yet to be completed. Traders and some of us living in this area have tried to open up the drainage systems but the water has been stagnant,’’ he said.

A watch repairer, Alhaji Malik Yaro, said some residents dumped refuse in the drains. “I am, therefore, not surprised that the floodwater here today was knee deep. People dump refuse of all sorts — empty containers, takeaway plates and papers — in the drainage system.

“I am assuring you that if the situation continues this way, nobody will like to pass through this place whenever it rains heavily like this again and the floodwater may enter people’s homes and shops,’’ he said.

The rain was, however, a relief to some residents. According to Mrs. Oyindamola Adedapo, the rain brought relief from the heat.

“Heat and mosquitoes have been a regular challenge to me every night because it has hindered me from sleeping well. I have been longing for rain since the beginning of the year and I thank God it rained. Am sure I will now be able to sleep better every night.”

Meanwhile, the Commissioner for the Environment, Dr. Babatunde Adejare, said the state government would not relent in its efforts to stem flooding in the metropolis.

He urged the public to change their disposal habits and refrain from turning canals and drains into refuse dumpsites. Such behavioural change, the commissioner said, was necessary because sudden rain, like this week’s, could cause flooding.

Vía The Guardian NigeriaThe Guardian Nigeria http://ift.tt/2jTqi5J