Thursday, June 14, 2012

Nigeria to stop importation of petroleum products in two years


The Federal Government said it plans to stop refined petroleum products importation within the next two years, after it was done with the turn around maintenance, TAM, of its traditional four refineries, which first phase has commenced with the Port Harcourt refinery.


Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, gave the hint yesterday, while speaking to journalists on the sidelines of the ongoing 5th OPEC International Seminar inVienna,Austria.


The minister, who was responding against the background of the observations by panellists at the first day of the conference that high oil prices affect the economies of developing nations more than the others, said the move would reduce the impact of oil volatility on the Nigerian economy.


Black Market rules the day as fuel scarcity bites harder in Port harcourt : Pix show: A black marketer, siphon fuel into a costumer's vehicle yesterday along Station road in Port Harcourt. Photo: Nwankpa Chijioke


She said: "The reference here was to oil price volatility because for countries that import crude in a very large volume, it obviously does affect their GDP and that was the discourse.


"We, of course, do import crude but not at too high a volume and also produce to a certain extent, but it affects us as well because higher oil prices obviously affect our Gross Domestic Product, GDP, as well interest rates go up as you heard earlier and cause increases in-country."


She said government was tackling the issue of market volatility from various angles, one of which is to reduce products importation and eventually stopping it completely.


Speculation and volatility


With regard to the impact of the activities of commodity speculators on crude oil prices, which spike high prices, the minister also revealed that Nigeria was in the process of setting up its own trading firms and own its own speculative market.


She said: "In terms of our own assets, we are just actually beginning to look at those markets from an in- country perspective. I know that we are discussing here the global perspective, but we also need to talk about it from the Nigerian perspective.


"We have set up a number of trading houses such as Duke and Parson, and we expect that over the next three years, they will mature to a point that we hope we will be able to create our own trading floor and our own speculative markets, and we will also be able to trade on the international market in oil commodity."


What are we taking away from the meeting/ we looked in general economic issues and the entire discuss today is on oil prices and oil to the world economy as a whole from various perspectives, including that of global energy security as well, the various ramifications of oil and the global economy amongst other things.


Vanguard


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Finance Minister Okonjo-Iweala warns of economic recession


Minister of Finance and Co-ordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, has warned of a difficult time ahead as she told the Federal Executive Council meeting in Abuja, yesterday, that "government should buckle up and prepare for a possible recession" in the economy.


Her warning came on the heels of the approval of a new visa regime by the Federal Executive Council.


Finance Minister, Mrs. Ngozi Okonjo-Iweala discussing with the Health Minister, Dr. Christian Chukwu (l); Housing Minister, Ms. Amal Pepple and the Solid Minerals Development Minister, Arc. Musa Sada during the weekly meeting of the Federal Executive Council at the State House, Abuja. Photo by Abayomi Adeshida


Okonjo-Iweala, who gave the warning during the weekly meeting at the Presidential Villa cited the slide in the price of crude oil as well as the dire economic situation inSpainand Greeceas possible trigger for another round of global recess.


Minister of Information, Mr Labaran Maku, who conveyed the Minister of Finance's warning quoted her as saying: "Nigeriamay not be so lucky to avoid recession this time as it did during the last economic meltdown and urged the Federal Government to put up measures that will help mitigate the effect of such economic melt down."


According Maku, the Coordinating Minister, however, explained that occasional delays in meeting government's obligation to creditors was not a sign of weakness in the economy, adding: "Our economy is sound."


New visa regime


According to Maku, the new visa regime is driven by economics to boost investment, tourism, generate employment and fight terrorism.


Maku, who briefed State House correspondents alongside his colleagues Minister of Interior, Abba Moro and Minister of Health, Onyebuchi Chukwu, saidNigeriawas emulating countries that had tried to make it easier for potential investors by liberalizing their visa policy.


One of the highlights of the new visa regime, the minister explained, was the possibility of some visitors to the country to accessNigeria's visa at various international points of entries into the country.


He said the policy was based on the assumption and dynamics of constantly changing international economy and the need forNigerianot to be left behind in the drive by nations to attract more highly resourceful, wealthy portfolio investors.


Minister of Interior, Abba Moro, who gave further insight into the new visa policy stated: "The assumption and dynamics on the basis of which we had our old policy have changed in line with the realities of our time.


"Most significantly is the fact that we have been in recent time witnessing security challenges in our country and it becomes necessary that we must attack the problem from all sides and the way you enter and get out ofNigeriaconstitute a very vital component of fighting internal security."


He added: "Today, we have a new visa regime that contains some innovations in the sense that new elements are being introduced in line with the strategic interest ofNigeriaand of course most other areas still have to be based on the principle of reciprocity.


Visa at entry point


"We now have visa at entry point. So, if a businessman, a tourist or a business delegation or a government delegation has reason to visitNigeriaat short notice to do business with Nigeria and if by any coincidence we don't have embassy in such country, such delegation or group can come toNigeriaand obtain their visas at point of entry particularly at international airports. Of course, this is without prejudice to ensuring our internal security.


On the abuse of expatriate quota


On the abuse of expatriate quota in the past, the Interior Minister said government had introduced appropriate check mechanism that would make it easier to monitor compliance with expatriate quota under the new regime.


"For every expatriate that is employed, two Nigeria under studies must be employed. If you are coming toNigeriawith $500,000, for instance, in addition to those employed to understudy, you will be expected to employ between 30 to 50 Nigerians.


"We have admitted there has been difficulty in enforcing the expatriate quota before now but with the automation with the business department of the interior ministry, we will enforce expatriate quota."


New E-Health Policy


The other decision by Council was the approval of a new E-Health Policy also known as Regulatory and Business Practices Improvement and Information Management for the National Health Insurance Scheme (NHIS).


Maku explained that the "Minister of Health, Professor Onyebuchi Chwukwu had proposed in his memo to Council for approval to procure an e-platform as part of the e-governance to enable NHIS to function more effectively and improve manual work and make the programme more efficient".


The project is based on the need to promote an efficient plateform for scaling up the installation and implementation of an electronic network that will facilitate transactions between NHIS and other stakeholders in the sector such as Health Management organizations HMO, Health Financiers, Enrollees, Banks and Insurance companies.


He said 60 per cent of the fund is expected to be provided by the International Finance Organisation IFC and the World Bank, while the federal Government will provide the balance 40 per cent.


The IFC grant, which is unconditional amounting to $1,368, 964.45 represents 60 per cent of the total cost, while federal government will provide $554,785.78, representing 40 per cent of the total cost of the project.


Council also approved the rehabilitation of the G17 unit of Ugheli plant expected to deliver 100MGWts of electricity to the country.


Vanguard


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Wednesday, June 13, 2012

Video - Air Nigeria grounded for safety checks


Air Nigeria, the national carrier and second-largest airline of the West African nation, has been grounded for safety checks.

The move comes days after one of the country's worst air crashes resulted in the deaths of all 153 people on board.

Thousands of Air Nigeria passengers are now left stranded as rumours of financial troubles and an engineers' strike adds to the challenges facing the carrier.

The most damning claims, however, come from John Nnorom, former finance director, who says the airline's engineers are under commercial pressure to certify unfit aircraft for travel.


Al Jazeera


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Air Nigeria operations suspended

The Nigerian Civil Aviation Authority (NCAA) has suspended Air Nigeria operations, just as the agency conducts thorough auditing on its aircraft.


Our correspondent gathered that the NCAA took the decision because Air Nigeria had not flown its aircraft in the past week following a strike by its pilots and engineers.


Air Nigeria only resumed operations some five days ago after the pilots and aeronautic engineers under the auspices of the National Association of Aircraft Pilots and Engineers (NAAPE) had called off a one week old industrial action.


The Media Assistant to the Director General of NCAA, Mr. Sam Adurogboye, who confirmed the suspension, said it was a routine action to allow NCAA look at the airline.


"It is a routine action to enable us look at them before allowing them to go back to operations having been on strike for days ,this is normal" he said.


Spokesman for Air Nigeria, Sam Ogbogoro, told our correspondent on phone that there was nothing out of the ordinary about the grounding of Air Nigeria aircraft.


He said that it was normal practice in civil aviation to conduct audits on aircraft once they have not been flown for some time; since Air Nigeria did not fly for a week, it was natural the aircraft are checked by NCAA.


Daily Trust


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Finance chief Arunmah Oteh suspended


The head of Nigeria's stock exchange regulator, Arunmah Oteh, has been suspended pending an investigation into allegations of malpractice.

The decision of the regulator's board comes after a parliamentary committee recommended she be investigated.

Ms Oteh was given the job of cleaning up the stock exchange following a crisis in 2009 which saw stocks lose around 60% of their value in a year.

She has not officially been accused of any wrongdoing herself.

The BBC's Will Ross in Lagos says this not the first time a probe into fraud in Nigeria has turned into a circus of accusations and counter-accusations as the hunter turns hunted.

'Yachts and Rolexes'

When she was appointed more than two years ago, Ms Oteh promised to restore credibility in the stock exchange.

She said fraudsters who had caused share prices to collapse would be charged.

Following her suspension by the board of Securities and Exchange Commission (Sec), some analysts believe she is now being punished for treading on some powerful toes, our correspondent says.

"Some powerful people are fighting back," an analyst told our reporter.

Earlier this year at a committee hearing of the House of Representatives into the 2009 crisis, she detailed the alleged financial mismanagement she had uncovered at the Nigeria Stock Exchange.

Ms Oteh outlined incidents of false accounting, misappropriation and questionable transactions.

She said the stock exchange had spent more than $230,000 (£147,000) on a yacht and more than $1m on Rolex watches to be given out as gifts - much of which she said the previous management of the exchange had not accounted for - allegations they deny.

The same parliamentary committee then recommended she be investigated over the alleged mismanagement of funds to mark the 50th anniversary of the stock exchange, which were organised last year by the commission.

Ms Oteh had earlier defended her name at one point accusing the committee of being a "kangaroo court" and the lawmakers of soliciting bribes from her to stop their recommendation - which they deny.

The Sec board says Ms Oteh, who arrived at her office in Abuja on Tuesday morning to find the locks changed, is being sent on "compulsory leave" to allow for an independent investigation into the 50th anniversary allegations.

Her suspension will once again test investor confidence in Africa's second-largest economy, our reporter says.


joyonline


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