Tuesday, October 11, 2016
Video - Thousands in Nigeria affected by insurgency in need of psychosocial support
In Nigeria, millions of people displaced or affected by the Boko Haram insurgency are in dire need of support. And this doesn't only mean food, shelter or medical care. As Kathryn Omwandho discovers, some of the survivors are in desperate need of psycho-social support.
Judges arrested in Nigeria for corruption charges released
Senior Nigerian judges arrested as part of a corruption investigation have been released, the head of the country's bar association and a security agency official said on Tuesday.
The Department of State Services (DSS), the country's security agency, on Saturday said it seized $800,000 in cash found during raids targeting judges from the supreme, appeal and high courts.
Abubakar Mahmoud, who heads the Nigerian Bar Association (NBA), on Tuesday said all of the judges held had been released, although he did not confirm the number or when they were freed.
A DSS official, who did not want to be named, said seven judges were released on bail on Sunday and reported to the security agency on Monday.
"I cannot say when they will be arraigned in court but as soon as we are done with investigations, we will send the files to the attorney general's office which will advise accordingly and act," said the official.
The judiciary has been the subject of longstanding corruption allegations but the nature of the raids has been criticized as being unconstitutional, with the NBA accusing the DSS of a "Gestapo-style operation".
President Muhammadu Buhari, a former military ruler, has pledged to crack down on corruption since taking office last year but critics say he is conducting a witch-hunt against his political opponents.
His spokesman said the raids were part of an anti-corruption drive and were not an attack on the judiciary.
The Department of State Services (DSS), the country's security agency, on Saturday said it seized $800,000 in cash found during raids targeting judges from the supreme, appeal and high courts.
Abubakar Mahmoud, who heads the Nigerian Bar Association (NBA), on Tuesday said all of the judges held had been released, although he did not confirm the number or when they were freed.
A DSS official, who did not want to be named, said seven judges were released on bail on Sunday and reported to the security agency on Monday.
"I cannot say when they will be arraigned in court but as soon as we are done with investigations, we will send the files to the attorney general's office which will advise accordingly and act," said the official.
The judiciary has been the subject of longstanding corruption allegations but the nature of the raids has been criticized as being unconstitutional, with the NBA accusing the DSS of a "Gestapo-style operation".
President Muhammadu Buhari, a former military ruler, has pledged to crack down on corruption since taking office last year but critics say he is conducting a witch-hunt against his political opponents.
His spokesman said the raids were part of an anti-corruption drive and were not an attack on the judiciary.
Related story: Nigeria seizes $800,000 in cash from judges
Banks in Nigeria in credit crisis
Seven Nigerian banks may be under-capitalised and in deficit The Nigeria’s banking industry is said to be experiencing a “full-blown financial crisis” as failed fiscal and monetary policies lead to a credit crunch, according to Arqaam Capital. According to the Bloomberg report Monday, two banks are close to being insolvent, while lenders anthor two “will need a dilutive capital hike,” Jaap Meijer and Tarek Sleiman, analysts at the Dubai-based investment bank and brokerage, said in an e-mailed note on Monday.
Capital ratios are set to worsen because of currency depreciation and souring loans, they said Central Bank of Nigeria, CBN in July replaced the management of Skye Bank after the lender breached liquidity thresholds, spurring concerns about the health of small- and medium-sized lenders, and reviving memories of bank rescues by the government after the financial crisis in 2009.
Nigerian banks are grappling with a devaluation of the naira, rising bad loans and an oil-dependent economy that’s set to record its first annual contraction in more than two decades. “Our acid test reveals seven under-capitalized banks” with a deficit of as much as 1 trillion naira ($3.2 billion) in the financial system, Meijer and Sleiman said.
A stress test identified one of the banks as the most under capitalized lender with Unity, Diamond Bank Plc, Skye, FCMB Group Plc, Sterling and Fidelity Bank Plc also showing deficits if they were to fully provide for non-performing loans, according to Arqaam. “Our bank is strong,” Ikechukwu Mike Omeife, a spokesman for Diamond Bank, said by phone from Lagos. “Our capital-adequacy ratio and non-performing loans are within the statutory requirements.”
Common Challenges
Moody’s Investors Service said on Monday that Nigeria’s five biggest banks share common credit challenges related to the economic slowdown. Moody’s expects non-performing loans to increase to about 12 percent over the next 12 months.
The ratio of non-performing loans to total credit rose to 11.7 percent at the end of June from 5.3 percent at the end of 2015, the Abuja-based Central Bank of Nigeria, which requires banks keep the measure below 5 percent, said in a report on its web site The five largest lenders, which together hold 57 percent of the country’s banking assets, “are able to absorb all losses under our severe stress scenario,” Moody’s said. Guaranty Trust Bank Plc showed “the greatest resilience” and the other four banks were Zenith Bank Plc, Access Bank Plc, United Bank for Africa Plc and First Bank of Nigeria Ltd., the ratings company said.
To create a capital buffer, Sterling Bank is planning to issue a 27 billion-naira bond and “if the interest rate looks better, we will do it this year,” Abubakar Suleiman, the lender’s chief financial officer, said on phone. “We will do it if the rate goes down to around 15 percent or 16 percent. We don’t want to raise it at a very high rate. If we do it, it will take our capital adequacy ratio to over 15 percent.”
Buy and sell rating:
Arqaam rates FBN, Skye, Sterling, Stanbic IBTC Holdings Plc, Unity and Ecobank Transnational Inc. as sell, according to the analysts’ report. Zenith, Access and United Bank are rated buy. CBN’s spokesman Isaac Okorafor didn’t immediately answer his phone or respond to text messages. Diamond, Unity and Fidelity didn’t answer calls. Moses Obajemu, a Lagos-based spokesman for Skye, didn’t immediately reply to questions sent to him by text message, as per his request. Meanwhile, Diamond Bank , Fidelity Bank , Wema Bank Plc, FCMB Group Plc, United Bank and Skye recorded declines in their shares traded on the Nigerian Stock Exchange, NSE, with Zenith ranking as the most traded stock among the 171 securities on the exchange.
Diamond Bank fell 5.5 percent, Fidelity dropped 4.3 percent, Skye Bank slid 4.6 percent and Unity Bank slipped 4.1 percent. Union Bank Nigeria Plc, which is part owned by London-based Atlas Mara Ltd., was the second-biggest gainer.
Monday, October 10, 2016
Nigeria selling two presidential jets
President Muhammadu Buhari, after months of being questioned about its size, is finally pruning Nigeria’s presidential air fleet which includes several jets and helicopters. While it is unclear how many aircraft the fleet currently holds (reports suggest there are 10), the president has put two of the jets—a Dassault Falcon 7x executive jet and a Beechcraft Hawker 4000—up for sale.
The presidency is branding the sale as part of efforts to “cut waste” in government spending but, given Nigeria’s difficult times (its first recession in decades, a spiraling currency and falling oil exports), Nigerians will likely see the move more as a desperate attempt to raise foreign exchange (interested buyers will be quoted in dollars) amid a biting shortage.
BudgIT, an advocate for transparency in Nigerian government, has suggested that the government currently spends more on maintaining the presidential fleet than is allocated to any of the federal universities.
It could be argued the president’s office has enough planes to start a national carrier which would be ironic given reports president Buhari has asked the ministry of aviation look into restarting a national carrier.
Typically, cost-cutting moves by government are lauded in Nigeria but this has been met with a lukewarm reception as many see the move as being several months late. Buhari’s presidential campaign, hinged on a strong anti-corruption message and championing his austere lifestyle, led many Nigerians to hope that the government’s excesses would be quickly reduced under his administration. But much of that enthusiasm has slowly sipped away. Nigeria’s senate, the poster-child of the high cost of government in Nigeria, has so far refused to cut its annual $364 million budget despite ranking among the world’s best paid lawmakers.
Under Buhari, the cost of running the presidential state house has also gone up, with millions budgeted for line items repeated from last year, such as the “installation of electrical lighting and fittings.”
The presidency is branding the sale as part of efforts to “cut waste” in government spending but, given Nigeria’s difficult times (its first recession in decades, a spiraling currency and falling oil exports), Nigerians will likely see the move more as a desperate attempt to raise foreign exchange (interested buyers will be quoted in dollars) amid a biting shortage.
BudgIT, an advocate for transparency in Nigerian government, has suggested that the government currently spends more on maintaining the presidential fleet than is allocated to any of the federal universities.
It could be argued the president’s office has enough planes to start a national carrier which would be ironic given reports president Buhari has asked the ministry of aviation look into restarting a national carrier.
Typically, cost-cutting moves by government are lauded in Nigeria but this has been met with a lukewarm reception as many see the move as being several months late. Buhari’s presidential campaign, hinged on a strong anti-corruption message and championing his austere lifestyle, led many Nigerians to hope that the government’s excesses would be quickly reduced under his administration. But much of that enthusiasm has slowly sipped away. Nigeria’s senate, the poster-child of the high cost of government in Nigeria, has so far refused to cut its annual $364 million budget despite ranking among the world’s best paid lawmakers.
Under Buhari, the cost of running the presidential state house has also gone up, with millions budgeted for line items repeated from last year, such as the “installation of electrical lighting and fittings.”
UAE stops issuing visas to Nigerians
Indications have emerged that the authorities of the United Arab Emirates (UAE) have stopped issuing visas to Nigerians, following the stabbing of a police officer by a group of six boys.
The incident which took place in Deira, the hub of business in Dubai, resulted in the massive arrest of blacks irrespective of their nationalities.
The officer was said to have died immediately from the injuries he sustained from the incident. A source who in the region during the incident, warned Nigerians to careful in order to avoid arrest. "Those of you have relatives in Dubai should be warned. The atmosphere is so hot especially for those without permit," he said.
The incident which took place in Deira, the hub of business in Dubai, resulted in the massive arrest of blacks irrespective of their nationalities.
The officer was said to have died immediately from the injuries he sustained from the incident. A source who in the region during the incident, warned Nigerians to careful in order to avoid arrest. "Those of you have relatives in Dubai should be warned. The atmosphere is so hot especially for those without permit," he said.
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