Wednesday, June 22, 2016
Video - Civil servants in Nigeria shut down Ministry of Finance
It appears that the Nigerian government has a lot more than stabilizing the Naira to deal with. For two days now, Nigeria's finance ministry has been shut down as ministry employees demand payment of allowances.
Former Super Eagles captain Joseph Yobo to play in Nigerian league
The LMC, through its official twitter handle, said Yobo had been signed on as League Ambassador and would soon be assigned to one of the four clubs already bidding for his services.
“Joseph Yobo to play last 12 #NPFL games this season as League Ambassador signed on by the LMC,” one of the tweets from the custodians of the Nigeria League read.
The LMC listed four teams; Akwa Utd, FC Ifeanyiubah, Kano Pillars and Wikki Tourists as those bidding to land the former Super Eagles defender.
The LMC assured that Yobo will soon be assigned to a club under the NPFL Elite Players Scheme which Sani Kaita benefited from two seasons ago.
Yobo started his football career on the home front almost two decades ago with Michelin FC in Port Harcourt.
He went on to feature for teams in Belgium, France, England and Turkey.
His stint with Premier League side, Everton, where he was the first signing made by David Moyes, was one of the highpoints of his club career.
The NPFL Elite Players Scheme was introduced by the LMC since 2014 season to inject Nigerian players with specified national team caps as part of strategies to rekindle greater following for the domestic league as well as attract sponsors to the clubs.
Only Enyimba, which signed on ex-Eagles defender, Sani Keita, has so far explored the scheme.
The Naira is sinking after currency float
After the first day of trading following a currency float, the value of Nigeria’s naira dipped by 31%, selling at 288.85 naira as markets closed on Monday (June 20). It was the first day in recent history the naira was traded openly with its value decided by market forces in line with the Central Bank’s new flexible policy. The apex bank also says it has cleared a backlog of foreign exchange demand of around $4 billion.
The naira had previously been officially pegged between 197 and 199 per dollar as the government instituted strict currency controls in a bid to protect its foreign reserves following depleted earnings caused by the falling price of oil, the country’s main resource.
The plunge in the value of the naira in reflection of market realities validates the long-term calls for the devaluation of the currency before the country’s government finally budged last week.
In truth, for most everyday Nigerians and small to medium-sized businesses the naira is only just coming in line with its value on parallel markets, where it has traded between 300 naira to 350 naira per dollar for several months. Nigeria, which depends on oil sales for much of its foreign currency, has seen the naira hit by the global downturn in oil prices. Only a limited number of large banks and traders had access to foreign currency at the 197-199 naira rate. This often created arbitrage opportunities in the banking system.
As has been the case over the past year, the naira still has two different prices. While the interbank value of the currency weakened following the float, its value on the parallel market—which served as a primary source of foreign exchange in the last few months—was quoted up to 10% stronger. Over time, the Central Bank is counting on its new policy and increased availability of foreign exchange to result in a convergence of both values of the naira. Describing the first day of the float as a “robust take-off” of its new policy, the apex bank hopes investor confidence, previously frayed, will return to the country’s economy which shrank in the first quarter of the year.
The bank’s optimistic outlook will likely not be shared by Africa’s richest man, Aliko Dangote whose fortune fell by $3.7 billion following the take-off of the new currency float.
The naira had previously been officially pegged between 197 and 199 per dollar as the government instituted strict currency controls in a bid to protect its foreign reserves following depleted earnings caused by the falling price of oil, the country’s main resource.
The plunge in the value of the naira in reflection of market realities validates the long-term calls for the devaluation of the currency before the country’s government finally budged last week.
In truth, for most everyday Nigerians and small to medium-sized businesses the naira is only just coming in line with its value on parallel markets, where it has traded between 300 naira to 350 naira per dollar for several months. Nigeria, which depends on oil sales for much of its foreign currency, has seen the naira hit by the global downturn in oil prices. Only a limited number of large banks and traders had access to foreign currency at the 197-199 naira rate. This often created arbitrage opportunities in the banking system.
As has been the case over the past year, the naira still has two different prices. While the interbank value of the currency weakened following the float, its value on the parallel market—which served as a primary source of foreign exchange in the last few months—was quoted up to 10% stronger. Over time, the Central Bank is counting on its new policy and increased availability of foreign exchange to result in a convergence of both values of the naira. Describing the first day of the float as a “robust take-off” of its new policy, the apex bank hopes investor confidence, previously frayed, will return to the country’s economy which shrank in the first quarter of the year.
The bank’s optimistic outlook will likely not be shared by Africa’s richest man, Aliko Dangote whose fortune fell by $3.7 billion following the take-off of the new currency float.
First lady of Nigeria calls opposition governor a 'mad dog'
The wife of Nigerian President Muhammadu Buhari has become embroiled in a spat with an opposition governor over corruption allegations.
The spat began after the governor of Nigeria’s Ekiti state, Peter Ayodele Fayose, accused Aisha Buhari of involvement in a bribery scandal involving former U.S. Congressman William J. Jefferson. In 2009, Jefferson was found guilty of 11 counts of corruption and was sentenced to 13 years’ imprisonment. The court found that he took around $500,000 in bribes and an account in the name of Aisha Buhari in Nigeria was cited in the sentencing memorandum as one of the accounts from which transfers to Jefferson were made.
The Nigerian presidency has dismissed Fayose’s allegations, with presidential spokesman Garba Shehu characterizing them as those of a man “childishly obsessed with the desire to grab the headlines and insulting people at will because of his incurably boorish instincts.” Shehu said that the president’s wife had no connection to the Jefferson case and challenged Fayose to provide evidence to the contrary.
The former head of Nigeria’s Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde, told Nigeria’s Premium Times that the Aisha Buhari cited in the memorandum is not the same woman as the current president’s wife. Fayose made the allegations after the EFCC froze one of his personal accounts.
A tweet was sent from Aisha Buhari’s verified Twitter account on Tuesday evening apparently responding to Fayose’s allegations, Nigeria’s Vanguard newspaper reported . “Enough is enough Fayose. A mad dog that isn’t chained. I refuse to keep quiet,” the tweet said. It was subsequently deleted and the Nigerian government has not made any public statement on the affair nor confirmed whether the tweet was sent by the First Lady.
Fayose is a member of the opposition People’s Democratic Party (PDP), which was ousted from government when Buhari defeated former President Goodluck Jonathan in an election in March 2015. The PDP has accused the Buhari administration of focusing its anti-corruption crackdown on members of the opposition and not dealing with allegations of graft within the ruling All Progressives Congress (APC).
Aisha Buhari married the now-president in 1989 and the couple have five children. The First Lady oversees the Future Assured initiative, which aims to reduce the country’s maternal and infant mortality rates.
The spat began after the governor of Nigeria’s Ekiti state, Peter Ayodele Fayose, accused Aisha Buhari of involvement in a bribery scandal involving former U.S. Congressman William J. Jefferson. In 2009, Jefferson was found guilty of 11 counts of corruption and was sentenced to 13 years’ imprisonment. The court found that he took around $500,000 in bribes and an account in the name of Aisha Buhari in Nigeria was cited in the sentencing memorandum as one of the accounts from which transfers to Jefferson were made.
The Nigerian presidency has dismissed Fayose’s allegations, with presidential spokesman Garba Shehu characterizing them as those of a man “childishly obsessed with the desire to grab the headlines and insulting people at will because of his incurably boorish instincts.” Shehu said that the president’s wife had no connection to the Jefferson case and challenged Fayose to provide evidence to the contrary.
The former head of Nigeria’s Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde, told Nigeria’s Premium Times that the Aisha Buhari cited in the memorandum is not the same woman as the current president’s wife. Fayose made the allegations after the EFCC froze one of his personal accounts.
A tweet was sent from Aisha Buhari’s verified Twitter account on Tuesday evening apparently responding to Fayose’s allegations, Nigeria’s Vanguard newspaper reported . “Enough is enough Fayose. A mad dog that isn’t chained. I refuse to keep quiet,” the tweet said. It was subsequently deleted and the Nigerian government has not made any public statement on the affair nor confirmed whether the tweet was sent by the First Lady.
Fayose is a member of the opposition People’s Democratic Party (PDP), which was ousted from government when Buhari defeated former President Goodluck Jonathan in an election in March 2015. The PDP has accused the Buhari administration of focusing its anti-corruption crackdown on members of the opposition and not dealing with allegations of graft within the ruling All Progressives Congress (APC).
Aisha Buhari married the now-president in 1989 and the couple have five children. The First Lady oversees the Future Assured initiative, which aims to reduce the country’s maternal and infant mortality rates.
Niger Delta Avengers deny negotiating ceasefire agreement with Nigerian government
The Niger Delta Avengers, a militant group that has claimed responsibility for attacks on oil and gas facilities in Nigeria's southern energy hub, said on Tuesday it never agreed a ceasefire with the government.
Government officials told Reuters a one-month ceasefire had been agreed last week after talks between the oil minister, community groups and state governors in the Niger Delta, the source of most of Nigeria's crude oil.
Militants say they want a greater share of Nigeria's oil wealth to go to the impoverished Delta region. Crude sales make up about 70 percent of national income and the vast majority of that oil comes from the southern swampland.
A petroleum ministry official said the Avengers, who have claimed responsibility for most attacks in the last few weeks that have pushed Nigeria's crude output to 30-year lows, were among those who agreed to a truce.
"It was very difficult getting the Niger Delta Avengers to the negotiating table, but we eventually did through a proxy channel and achieved the truce," said the official, who asked not to be identified. A second government official also said a ceasefire was agreed.
But hours later the Avengers issued a statement on Twitter denying that it had an agreement with the government.
"The NDA High Command never remember having any agreement on ceasefire with the Nigeria government," said the group.
It would be difficult to achieve a ceasefire in the hard to access swamps where militants are divided into small groups that tap widespread anger over poverty and oil spills. Leaders have little sway over unemployed youths willing to work for anyone who pays them.
RIGHT PEOPLE?
A Nigeria-based security expert, who did not want to be named, said he did not believe the government had been holding talks with the right people.
Earlier this month, the government said the military campaign in the Delta would be scaled down as part of an attempt to pursue talks with militants, who laid down arms in 2009 in exchange for cash benefits under a government amnesty scheme.
Nigeria, an OPEC member, was Africa's top oil producer until the recent spate of attacks pushed it behind Angola. Oil production has fallen from 2.2 million barrels at the start of the year to around 1.6 million barrels. The impact has helped push up global oil prices.
Speaking after meeting President Muhammadu Buhari and Emmanuel Ibe Kachikwu, the oil minister, incoming OPEC Secretary-General Mohammed Barkindo said on Tuesday he had been told Nigeria's oil production was "beginning to rise again". He did not provide details.
Barkindo said the government was trying to resolve militancy in the Niger Delta through talks, but did not elaborate.
"Government is negotiating and we are seeing positive results. I remain confident that through this resolution a stable and permanent solution will be found," he said.
Neither the presidency nor the petroleum ministry have issued official statements on a truce. Buhari has said the government wanted to hold talks with Niger Delta leaders to address poverty and oil pollution.
But his administration angered former militants when it cut by two-thirds the budget allocated for the amnesty program set up in 2009. Ex-militants were paid stipends and given employment training from that program.
A number of new militant groups have sprung up in the last few weeks, each with their own set of demands, which has made the insurgency increasingly fractured. It is not yet clear how many groups took part in the talks.
In a sign of apparent discord among groups in the Delta, former militants who were known as the Movement for the Emancipation of the Niger Delta (MEND) have criticized the Avengers and urged them to negotiate with the government.
In a statement on the Avengers' website, dated June 18, the group said of the ex-militants: "If you and your criminals want to resurrect the defunct MEND and negotiate with the government that is your business".
"We, once again, restate that we are not going to be part of any dialogue."
Government officials told Reuters a one-month ceasefire had been agreed last week after talks between the oil minister, community groups and state governors in the Niger Delta, the source of most of Nigeria's crude oil.
Militants say they want a greater share of Nigeria's oil wealth to go to the impoverished Delta region. Crude sales make up about 70 percent of national income and the vast majority of that oil comes from the southern swampland.
A petroleum ministry official said the Avengers, who have claimed responsibility for most attacks in the last few weeks that have pushed Nigeria's crude output to 30-year lows, were among those who agreed to a truce.
"It was very difficult getting the Niger Delta Avengers to the negotiating table, but we eventually did through a proxy channel and achieved the truce," said the official, who asked not to be identified. A second government official also said a ceasefire was agreed.
But hours later the Avengers issued a statement on Twitter denying that it had an agreement with the government.
"The NDA High Command never remember having any agreement on ceasefire with the Nigeria government," said the group.
It would be difficult to achieve a ceasefire in the hard to access swamps where militants are divided into small groups that tap widespread anger over poverty and oil spills. Leaders have little sway over unemployed youths willing to work for anyone who pays them.
RIGHT PEOPLE?
A Nigeria-based security expert, who did not want to be named, said he did not believe the government had been holding talks with the right people.
Earlier this month, the government said the military campaign in the Delta would be scaled down as part of an attempt to pursue talks with militants, who laid down arms in 2009 in exchange for cash benefits under a government amnesty scheme.
Nigeria, an OPEC member, was Africa's top oil producer until the recent spate of attacks pushed it behind Angola. Oil production has fallen from 2.2 million barrels at the start of the year to around 1.6 million barrels. The impact has helped push up global oil prices.
Speaking after meeting President Muhammadu Buhari and Emmanuel Ibe Kachikwu, the oil minister, incoming OPEC Secretary-General Mohammed Barkindo said on Tuesday he had been told Nigeria's oil production was "beginning to rise again". He did not provide details.
Barkindo said the government was trying to resolve militancy in the Niger Delta through talks, but did not elaborate.
"Government is negotiating and we are seeing positive results. I remain confident that through this resolution a stable and permanent solution will be found," he said.
Neither the presidency nor the petroleum ministry have issued official statements on a truce. Buhari has said the government wanted to hold talks with Niger Delta leaders to address poverty and oil pollution.
But his administration angered former militants when it cut by two-thirds the budget allocated for the amnesty program set up in 2009. Ex-militants were paid stipends and given employment training from that program.
A number of new militant groups have sprung up in the last few weeks, each with their own set of demands, which has made the insurgency increasingly fractured. It is not yet clear how many groups took part in the talks.
In a sign of apparent discord among groups in the Delta, former militants who were known as the Movement for the Emancipation of the Niger Delta (MEND) have criticized the Avengers and urged them to negotiate with the government.
In a statement on the Avengers' website, dated June 18, the group said of the ex-militants: "If you and your criminals want to resurrect the defunct MEND and negotiate with the government that is your business".
"We, once again, restate that we are not going to be part of any dialogue."
Monday, June 20, 2016
Boko Haram kill at least 18 women at funeral in Adamawa state, Nigeria
Boko Haram militants are said to have rampaged through the village of Kuda in Adamawa state, killing at least 18 women at a funeral. During the attack, which took place Thursday, at about 5pm local time, houses were also set on fire amid the random shooting. Reports say some women, who were present at the funeral are still missing. The numbers of those killed have not been independently confirmed by the authorities. Kuda is close to the Sambisa Forest, which is known to harbor majority of the Boko Haram militants. The same village was last attacked by the militants in February.
Video - Football academy looking to get Nigeria back to its best
Nigeria once enjoyed a comfortable place among the top-rated football nations of the world, but lately its rankings have been in a free-fall. At its best, Nigeria was ranked 5th best football nation in the world...but that was back in 1994. It has since dropped to number 61 in the latest global FIFA ranking. In the following report, CCTV's Kelechi Emekalam takes a look at efforts to revive that past glory by one man who captained the national team in the 1980's.
Does Nigeria have a corrupt culture or a victim of a particular history?
Just before the anti-corruption summit in London, British Prime Minister David Cameron made his now infamous public gaffe in a rather a silly, schoolboyish way.
He boasted to the Queen:
We’ve got some leaders of some fantastically corrupt countries coming to Britain. Nigeria and Afghanistan, possibly the two most corrupt countries in the world.
The rudeness and stupidity of the remark apart, it was also inaccurate. Nigeria justifiably has a reputation for corruption and criminal networks. But it is by no means one of the two most corrupt countries in the world. Somalia and North Korea hold that distinction,according to Transparency International. Nigeria also ranks as less corrupt than Kenya which is ranked 139 out of 167 countries. Nigeria is ranked 136.
Nigeria has long had a reputation for corruption in politics, business and its military establishment. It also has reputation for being heavily involved in the infamous international 419 financial scams, in drug and sex worker trafficking.
Return assets stolen from Nigeria
The reaction of President Muhammadu Buhari of Nigeria was one of shock – rather a faux shock for the media. After all, Buhari is involved in cranking up an anti-corruption drive that has seen the arrest of major politicians and army officers. An investigation is ongoing into the corrupt diversion of funds that were to have purchased weapons to fight Boko Haram but ended up in the pockets of political, military and business insiders connected with the previous administration of Goodluck Jonathan.
Buhari said he didn’t want an apology from Cameron over the remarks but instead the return of assets stolen from Nigeria and banked in or via Britain. The latter is in reference to off-shore banks in British territories like Guernsey, Jersey and the Cayman Islands. These are the very offshore banking network revealed, to Cameron’s embarrassment, in the Panama Papers. The leaked papers detailed the vast international network of tax avoidance, money laundering and investment of stolen or criminally-obtained assets.
London as a corrupt financial capital
And Buhari has a point. The British are in no position to preach, according to the world famous expert on the mafia and other forms of organised crime, Roberto Saviano. The journalist and author told his audience at the Hay-on-Wye literary festival that British financial institutions enabled what he called “criminal capitalism” to operate through the network of offshore banks, investment funds and other holdings in British territories.
Saviano said his research showed that the City of London operated in a way that made possible the working of financial systems that eluded investigation, let alone taxation, and effectively made Britain the most corrupt country. He was quoted by the Guardian and Telegraph as saying:
If I asked what the most corrupt place on Earth is, you might say it’s Afghanistan, maybe Greece, Nigeria, the south of Italy. I would say it is the UK. It’s not UK bureaucracy, police, or politics, but what is corrupt is the financial capital. Ninety per cent of the owners of capital in London have their headquarters offshore.
The gap between law and reality
It is no coincidence that the late journalist, academic and expert on crime and corruption in West Africa, Professor Stephen Ellis, devoted an important part of his posthumously published book, This Present Darkness, to the role of British, American and Swedish companies among others in bribery, avoidance of the payment of royalties, false accounting and illegal capital flight in Nigeria and in aiding and abetting domestic corruption.
His superbly researched and incisive study details how British bankers saw the end of empire as both a threat and an opportunity and developed existing offshore banking networks. They used the “archaic jurisdictions” of British dependencies in the Channel Islands and the Caribbean to exploit "the disconnection between the physical location of a transaction and the legal space where it is recorded”. This enabled the cunning or corrupt to “exploit the gap between law and reality”.
British and other foreign companies took advantage of this in their looting of resources. They also used this in trading relationships with countries like Nigeria by concealing the real earnings from exports or inflating the costs of imports. So too did wealthy Nigerians, often through deals with foreign companies, who got their corruptly obtained riches out to offshore banks.
A tradition of gift-giving
But corruption in Nigeria is not something that can be blamed solely on multinationals. As Ellis painstakingly explains, it is much, much more complex. One major factor is the tradition of gift-giving to holders of public office. And then also the expectation that holders of office would use their position to distribute largesse to their followers.
These traditional systems of mutual benefit and patronage were not swept away by colonial rule but often distorted and developed by it. New classes of politicians, public servants and businessmen retained the exchange of gifts or distribution of wealth through social and political networks. These include the ubiquitous secret societies in some parts of Nigeria.
Old networks persisted in new contexts, creating informal or hidden patronage-client systems that were still important to the exercise of political power and formal state institutions. The weakness of Nigerian legal and formal political institutions – as evidenced by the repeated coups – meant that these informal networks became more rather than less powerful. This situation was reinforced by the very diverse and fragmented nature of Nigeria and the importance of local power bases for politicians.
The oil industry and sudden influx of substantial royalties also created opportunities for corruption, the expansion of networks of corruption and misuse of state funds or natural resources. Oil fuelled the rise of a new class of local middlemen, who acted as agents for the oil companies. Contracts for state-funded projects connected with the oil industry became a new form of patronage. At first this was through the military – whose officers benefited hugely from the political power that flowed from the barrel of a gun as well as from barrels of oil.
Is Nigeria innately corrupt?
What Ellis’s book amply demonstrates is the extent of corruption in Nigeria. It uncovers the networks of wealth accumulation and patronage that dominate politics, business and the oil industry. It traces the inextricable link with international financial networks used to launder or invest corrupt money. Finally, it exposes the plundering activities of multinational companies that avoid tax, under-report export volumes and inflate contracts.
Nigeria is part of a fantastically corrupt international network. But is Nigeria innately corrupt or has corruption developed and burgeoned there for specific reasons related to its complex past? I concur with Ellis when he concludes: “Nigerian organised crime is not created by culture, but it does arise from a particular history.”
Keith Somerville
He boasted to the Queen:
We’ve got some leaders of some fantastically corrupt countries coming to Britain. Nigeria and Afghanistan, possibly the two most corrupt countries in the world.
The rudeness and stupidity of the remark apart, it was also inaccurate. Nigeria justifiably has a reputation for corruption and criminal networks. But it is by no means one of the two most corrupt countries in the world. Somalia and North Korea hold that distinction,according to Transparency International. Nigeria also ranks as less corrupt than Kenya which is ranked 139 out of 167 countries. Nigeria is ranked 136.
Nigeria has long had a reputation for corruption in politics, business and its military establishment. It also has reputation for being heavily involved in the infamous international 419 financial scams, in drug and sex worker trafficking.
Return assets stolen from Nigeria
The reaction of President Muhammadu Buhari of Nigeria was one of shock – rather a faux shock for the media. After all, Buhari is involved in cranking up an anti-corruption drive that has seen the arrest of major politicians and army officers. An investigation is ongoing into the corrupt diversion of funds that were to have purchased weapons to fight Boko Haram but ended up in the pockets of political, military and business insiders connected with the previous administration of Goodluck Jonathan.
Buhari said he didn’t want an apology from Cameron over the remarks but instead the return of assets stolen from Nigeria and banked in or via Britain. The latter is in reference to off-shore banks in British territories like Guernsey, Jersey and the Cayman Islands. These are the very offshore banking network revealed, to Cameron’s embarrassment, in the Panama Papers. The leaked papers detailed the vast international network of tax avoidance, money laundering and investment of stolen or criminally-obtained assets.
London as a corrupt financial capital
And Buhari has a point. The British are in no position to preach, according to the world famous expert on the mafia and other forms of organised crime, Roberto Saviano. The journalist and author told his audience at the Hay-on-Wye literary festival that British financial institutions enabled what he called “criminal capitalism” to operate through the network of offshore banks, investment funds and other holdings in British territories.
Saviano said his research showed that the City of London operated in a way that made possible the working of financial systems that eluded investigation, let alone taxation, and effectively made Britain the most corrupt country. He was quoted by the Guardian and Telegraph as saying:
If I asked what the most corrupt place on Earth is, you might say it’s Afghanistan, maybe Greece, Nigeria, the south of Italy. I would say it is the UK. It’s not UK bureaucracy, police, or politics, but what is corrupt is the financial capital. Ninety per cent of the owners of capital in London have their headquarters offshore.
The gap between law and reality
It is no coincidence that the late journalist, academic and expert on crime and corruption in West Africa, Professor Stephen Ellis, devoted an important part of his posthumously published book, This Present Darkness, to the role of British, American and Swedish companies among others in bribery, avoidance of the payment of royalties, false accounting and illegal capital flight in Nigeria and in aiding and abetting domestic corruption.
His superbly researched and incisive study details how British bankers saw the end of empire as both a threat and an opportunity and developed existing offshore banking networks. They used the “archaic jurisdictions” of British dependencies in the Channel Islands and the Caribbean to exploit "the disconnection between the physical location of a transaction and the legal space where it is recorded”. This enabled the cunning or corrupt to “exploit the gap between law and reality”.
British and other foreign companies took advantage of this in their looting of resources. They also used this in trading relationships with countries like Nigeria by concealing the real earnings from exports or inflating the costs of imports. So too did wealthy Nigerians, often through deals with foreign companies, who got their corruptly obtained riches out to offshore banks.
A tradition of gift-giving
But corruption in Nigeria is not something that can be blamed solely on multinationals. As Ellis painstakingly explains, it is much, much more complex. One major factor is the tradition of gift-giving to holders of public office. And then also the expectation that holders of office would use their position to distribute largesse to their followers.
These traditional systems of mutual benefit and patronage were not swept away by colonial rule but often distorted and developed by it. New classes of politicians, public servants and businessmen retained the exchange of gifts or distribution of wealth through social and political networks. These include the ubiquitous secret societies in some parts of Nigeria.
Old networks persisted in new contexts, creating informal or hidden patronage-client systems that were still important to the exercise of political power and formal state institutions. The weakness of Nigerian legal and formal political institutions – as evidenced by the repeated coups – meant that these informal networks became more rather than less powerful. This situation was reinforced by the very diverse and fragmented nature of Nigeria and the importance of local power bases for politicians.
The oil industry and sudden influx of substantial royalties also created opportunities for corruption, the expansion of networks of corruption and misuse of state funds or natural resources. Oil fuelled the rise of a new class of local middlemen, who acted as agents for the oil companies. Contracts for state-funded projects connected with the oil industry became a new form of patronage. At first this was through the military – whose officers benefited hugely from the political power that flowed from the barrel of a gun as well as from barrels of oil.
Is Nigeria innately corrupt?
What Ellis’s book amply demonstrates is the extent of corruption in Nigeria. It uncovers the networks of wealth accumulation and patronage that dominate politics, business and the oil industry. It traces the inextricable link with international financial networks used to launder or invest corrupt money. Finally, it exposes the plundering activities of multinational companies that avoid tax, under-report export volumes and inflate contracts.
Nigeria is part of a fantastically corrupt international network. But is Nigeria innately corrupt or has corruption developed and burgeoned there for specific reasons related to its complex past? I concur with Ellis when he concludes: “Nigerian organised crime is not created by culture, but it does arise from a particular history.”
Keith Somerville
Nigerian Boko Haram victim deported from Iceland
As Eze sat in the pews at a church where he goes most mornings to pray, his phone buzzed with a new message. His Icelandic teacher was checking in on him, giving him support.
A calm and composed man, Eze began to cry, the emotion intensifying as he continued to read. His friends in Iceland were standing with him, the message said, they would fight for him.
Eze Okafor, 32, had been living in Iceland for the last four years, working as a cook in a local restaurant, learning the Icelandic language, building a community.
"Iceland is my home now. I have contributed to the society here. Many people know me. My friends have become my family," he told Al Jazeera.
Eze fled Nigera after being targeted by Boko Haram. In 2010, he and his younger brother, Okwy, were attacked in retaliation for not joining the armed group. "They tried to recruit me, but I refused."
Members of Boko Haram stormed their house in Maiduguri, Borno State, in northeastern Nigeria. Eze was stabbed in the head and face. Okwy was killed.
Soon after, Eze fled Nigeria and made a long and dangerous boat journey to Europe, where in 2011 he sought asylum in Sweden. He told his story and showed his still fresh and infected wounds, including the gash over his eye, which he feared would cost him his eyesight. He was denied asylum and made his way to Iceland.
He applied for asylum in Iceland in 2012 but was denied.
He has been working with a lawyer, Katrin Theodorsdottir, who then applied for permission for Eze to stay in Iceland on humanitarian grounds, as his case has slowly made its way through the system. Eze said in October he was given temporary residency and could work.
His case in Iceland has hinged on what time limit is relevant to his asylum request, as defined by Article 19 of the Dublin Regulation, which determines which EU member state is responsible for asylum seekers.
Article 19 lays out a timeframe of six months within which an asylum seeker must be sent back to the country where they were originally asking for asylum, otherwise the current country is responsible for processing their asylum case.
After many rejections, appeals and back and forths between various immigration authorities, Theodorsdottir said there was a "twist". A special immigration committee reviewing Eze's case said the time limit to send Eze back to Sweden might have expired, and advised him to go to the immigration office and have his application for asylum processed.
Eze went to the immigration office as instructed to pick up the paperwork, and was told to wait 45 minutes, which he did. According to Theodorsdottir, unbeknownst to him, the police officer was calling the immigration office. And then another twist.
"The police said I should come to sign and all of a sudden they took me into custody. They arrested me. I spent the night in jail," Eze recalled.
"They next morning they said they were deporting me. I said I should go and get my stuff from my house. They said no. They took me to the airport and manhandled me.
"In Iceland, I have been integrated into society, with so many friends. A lot of people know me. So when the police was beating me, when I was arrested, there was a lot of reaction."
Early on May 26, Eze was put handcuffed onto a plane for deportation. Two members of the rights group No Borders Iceland boarded the plane and stood up in protest, asking other passengers to stand up as well to protest Eze's deportation. After about 10 minutes, they were arrested by Iceland's police.
He was taken to Stockholm. At the airport, he thought the Icelandic authorities would give him back the only ID he had - his Nigerian driver's license. They took it back to Iceland. He was handed papers by the Swedish immigration authorities, which gave him until June 1 to leave Sweden or be deported back to Nigeria.
He was also given a piece of paper saying he had no right to financial assistance. Without money or any identification, he was turned out onto the street where he spent the first night.
Boko Haram is an ongoing threat in Nigeria with members and supporters, Eze said, at all levels of government and the police. Several years ago, members of Boko Haram kidnapped his mother in what Eze said was a bid to force him to return to Nigeria. After brutalising her - including an attack to her face that compromised her eyesight - the kidnappers demanded a ransom.
"What I am facing in Nigeria is that this Islamic group is after my life. My life is in danger."
He said he believes that when he lands at the airport in Nigeria he fears he will be apprehended by the police. "Boko Haram has a network. They have been looking for me since then."
Today, Eze is uncertain about his future. His does know one thing for sure. If he were to return to Nigeria, he believes it would mean death for him.
With his friends, he is working hard to find a lawyer who could take his case in Sweden. His dream is to return to his home in Iceland.
Theodorsdottir said there is something the immigration office could do. She has requested that he be granted permission to live in Iceland on humanitarian grounds, a request that is still pending.
Eze said his mother, Celina, taught him how to cook at an early age and it is his passion. He loved working in the restaurant in Iceland and had a good relationship with his boss. He loves to cook Nigerian food. Maybe, he said, once he is back in Iceland, and his life has found balance again, he could pursue a dream. There is no Nigerian restaurant in Iceland.
"Maybe one day, when I am back in Iceland, I could open a restaurant", Eze said, smiling.
"When I was in handcuffs on my way to Sweden, I was pleading with them," Eze said. "I am not a criminal. I did not commit any crime. I am asking for refuge. They should treat me like a human."
A calm and composed man, Eze began to cry, the emotion intensifying as he continued to read. His friends in Iceland were standing with him, the message said, they would fight for him.
Eze Okafor, 32, had been living in Iceland for the last four years, working as a cook in a local restaurant, learning the Icelandic language, building a community.
"Iceland is my home now. I have contributed to the society here. Many people know me. My friends have become my family," he told Al Jazeera.
Eze fled Nigera after being targeted by Boko Haram. In 2010, he and his younger brother, Okwy, were attacked in retaliation for not joining the armed group. "They tried to recruit me, but I refused."
Members of Boko Haram stormed their house in Maiduguri, Borno State, in northeastern Nigeria. Eze was stabbed in the head and face. Okwy was killed.
Soon after, Eze fled Nigeria and made a long and dangerous boat journey to Europe, where in 2011 he sought asylum in Sweden. He told his story and showed his still fresh and infected wounds, including the gash over his eye, which he feared would cost him his eyesight. He was denied asylum and made his way to Iceland.
He applied for asylum in Iceland in 2012 but was denied.
He has been working with a lawyer, Katrin Theodorsdottir, who then applied for permission for Eze to stay in Iceland on humanitarian grounds, as his case has slowly made its way through the system. Eze said in October he was given temporary residency and could work.
His case in Iceland has hinged on what time limit is relevant to his asylum request, as defined by Article 19 of the Dublin Regulation, which determines which EU member state is responsible for asylum seekers.
Article 19 lays out a timeframe of six months within which an asylum seeker must be sent back to the country where they were originally asking for asylum, otherwise the current country is responsible for processing their asylum case.
After many rejections, appeals and back and forths between various immigration authorities, Theodorsdottir said there was a "twist". A special immigration committee reviewing Eze's case said the time limit to send Eze back to Sweden might have expired, and advised him to go to the immigration office and have his application for asylum processed.
Eze went to the immigration office as instructed to pick up the paperwork, and was told to wait 45 minutes, which he did. According to Theodorsdottir, unbeknownst to him, the police officer was calling the immigration office. And then another twist.
"The police said I should come to sign and all of a sudden they took me into custody. They arrested me. I spent the night in jail," Eze recalled.
"They next morning they said they were deporting me. I said I should go and get my stuff from my house. They said no. They took me to the airport and manhandled me.
"In Iceland, I have been integrated into society, with so many friends. A lot of people know me. So when the police was beating me, when I was arrested, there was a lot of reaction."
Early on May 26, Eze was put handcuffed onto a plane for deportation. Two members of the rights group No Borders Iceland boarded the plane and stood up in protest, asking other passengers to stand up as well to protest Eze's deportation. After about 10 minutes, they were arrested by Iceland's police.
He was taken to Stockholm. At the airport, he thought the Icelandic authorities would give him back the only ID he had - his Nigerian driver's license. They took it back to Iceland. He was handed papers by the Swedish immigration authorities, which gave him until June 1 to leave Sweden or be deported back to Nigeria.
He was also given a piece of paper saying he had no right to financial assistance. Without money or any identification, he was turned out onto the street where he spent the first night.
Boko Haram is an ongoing threat in Nigeria with members and supporters, Eze said, at all levels of government and the police. Several years ago, members of Boko Haram kidnapped his mother in what Eze said was a bid to force him to return to Nigeria. After brutalising her - including an attack to her face that compromised her eyesight - the kidnappers demanded a ransom.
"What I am facing in Nigeria is that this Islamic group is after my life. My life is in danger."
He said he believes that when he lands at the airport in Nigeria he fears he will be apprehended by the police. "Boko Haram has a network. They have been looking for me since then."
Today, Eze is uncertain about his future. His does know one thing for sure. If he were to return to Nigeria, he believes it would mean death for him.
With his friends, he is working hard to find a lawyer who could take his case in Sweden. His dream is to return to his home in Iceland.
Theodorsdottir said there is something the immigration office could do. She has requested that he be granted permission to live in Iceland on humanitarian grounds, a request that is still pending.
Eze said his mother, Celina, taught him how to cook at an early age and it is his passion. He loved working in the restaurant in Iceland and had a good relationship with his boss. He loves to cook Nigerian food. Maybe, he said, once he is back in Iceland, and his life has found balance again, he could pursue a dream. There is no Nigerian restaurant in Iceland.
"Maybe one day, when I am back in Iceland, I could open a restaurant", Eze said, smiling.
"When I was in handcuffs on my way to Sweden, I was pleading with them," Eze said. "I am not a criminal. I did not commit any crime. I am asking for refuge. They should treat me like a human."
5 ways floatation of the Naira will affect Nigeria
Nigeria is allowing its struggling currency, the naira, to trade freely in a move to tackle the financial crisis in Africa's most populous nation. Financial blogger Feyi Fawehinmi looks at how it will affect people's lives.
1. Petrol prices will remain stable
Refined petrol is Nigeria's single biggest import. The story of how an oil exporting nation has to import almost all of its refined products is well told.
According to the National Bureau of Statistics, refined petrol imports in the first three months of 2016 amounted to 226bn naira ($1.1bn, £791m) or 15.6% of the total imports.
Last month, petrol subsidies were removed and a new price band of 130 naira to 145 naira per litre was recommended by the government.
This new price assumed an exchange rate of 285 naira to $1, compared to the official rate of 199 naira to $1.
Remarkably, Nigerians took this price rise with no more than a shrug and the attempt by labour unions to force a price reversal with strikes flopped spectacularly.
In the short term, the Central Bank of Nigeria (CBN) is likely to continue to be the main supplier of dollars to the market until foreign investors return.
With one eye on the petrol price, it is likely to kick start the market at a rate that keeps petrol prices stable i.e. somewhere below 285 naira to $1.
Refined petrol is Nigeria's single biggest import. The story of how an oil exporting nation has to import almost all of its refined products is well told.
According to the National Bureau of Statistics, refined petrol imports in the first three months of 2016 amounted to 226bn naira ($1.1bn, £791m) or 15.6% of the total imports.
Last month, petrol subsidies were removed and a new price band of 130 naira to 145 naira per litre was recommended by the government.
This new price assumed an exchange rate of 285 naira to $1, compared to the official rate of 199 naira to $1.
Remarkably, Nigerians took this price rise with no more than a shrug and the attempt by labour unions to force a price reversal with strikes flopped spectacularly.
In the short term, the Central Bank of Nigeria (CBN) is likely to continue to be the main supplier of dollars to the market until foreign investors return.
With one eye on the petrol price, it is likely to kick start the market at a rate that keeps petrol prices stable i.e. somewhere below 285 naira to $1.
2. Still no imported tomatoes, rice - or tooth picks
In June last year, the CBN came up with a now infamous list of 41 items that would no longer be eligible for foreign exchange from official sources.
Items on the list ranged from Indian incense to private jets. Importing those items were not actually banned so since the list came into effect, anyone who wanted to import them had to source foreign exchange from the black market.
The CBN said last week that those 41 items remain ineligible to access forex at the new interbank market.
You can still import toothpicks but you will have to source dollars from the black market to do so.
Based on this, prices of those items are unlikely to be affected. This is a shame because Nigeria could do with some tomato imports right now after the tuta absoluta pest devastated harvests in northern Nigeria.
Allowing rice imports wouldn't be a bad idea either given how rice prices have spiked in recent times.
Rice importation has always worked on a quota system - those with political connections usually getting the right to import it. The current policy restricting the imports is tied to goals of national pride in achieving self-sufficiency. Given this, it is unlikely to be lifted.
Not everyone is unhappy about this list, though.
The Nigerian palm oil producing company, Okomu Oil, posted a 98% increase in profits for 2015. Palm is of course on the list of 41 ineligible items.
In June last year, the CBN came up with a now infamous list of 41 items that would no longer be eligible for foreign exchange from official sources.
Items on the list ranged from Indian incense to private jets. Importing those items were not actually banned so since the list came into effect, anyone who wanted to import them had to source foreign exchange from the black market.
The CBN said last week that those 41 items remain ineligible to access forex at the new interbank market.
You can still import toothpicks but you will have to source dollars from the black market to do so.
Based on this, prices of those items are unlikely to be affected. This is a shame because Nigeria could do with some tomato imports right now after the tuta absoluta pest devastated harvests in northern Nigeria.
Allowing rice imports wouldn't be a bad idea either given how rice prices have spiked in recent times.
Rice importation has always worked on a quota system - those with political connections usually getting the right to import it. The current policy restricting the imports is tied to goals of national pride in achieving self-sufficiency. Given this, it is unlikely to be lifted.
Not everyone is unhappy about this list, though.
The Nigerian palm oil producing company, Okomu Oil, posted a 98% increase in profits for 2015. Palm is of course on the list of 41 ineligible items.
3. Inflation should eventually fall
Latest figures from the National Bureau of Statistics show that inflation is rising steadily in Nigeria. Given how Nigeria is dependent on imports for a lot of basic items, a floating currency is likely to further increase prices, at least in the short-term.
In reality, however, the policy of rationing foreign exchange in the last one year meant that those who needed it the most hardly ever got it.
As such, even as the official rate remained stable at 199 naira to $1, prices of imported everyday goods have been reflecting black market exchange rates for a while now.
Nigerians have already endured the equivalent of a gut punch from soaring prices and are unlikely to be in the mood for any more.
Further price increases might just force consumers to eliminate demand for some products altogether. A more stable and open foreign exchange regime should also eliminate a lot of the uncertainty that has been pushing up prices.
Given what has already happened in the last year, a floating naira, somewhat counter-intuitively, can be expected to start bringing down inflation.
Latest figures from the National Bureau of Statistics show that inflation is rising steadily in Nigeria. Given how Nigeria is dependent on imports for a lot of basic items, a floating currency is likely to further increase prices, at least in the short-term.
In reality, however, the policy of rationing foreign exchange in the last one year meant that those who needed it the most hardly ever got it.
As such, even as the official rate remained stable at 199 naira to $1, prices of imported everyday goods have been reflecting black market exchange rates for a while now.
Nigerians have already endured the equivalent of a gut punch from soaring prices and are unlikely to be in the mood for any more.
Further price increases might just force consumers to eliminate demand for some products altogether. A more stable and open foreign exchange regime should also eliminate a lot of the uncertainty that has been pushing up prices.
Given what has already happened in the last year, a floating naira, somewhat counter-intuitively, can be expected to start bringing down inflation.
4. Bad news for banks and businesses with forex loans
The CBN says that 10.1% of all the loans in Nigeria's banking system have gone bad. A lot of these loans are foreign currency loans extended to local oil and gas companies when crude oil prices were $100 per barrel.
Between 2012 and 2014, an estimated $10bn was lent to local oil companies to purchase assets from foreign oil majors.
Once the naira starts to float, banks will have to adjust the value of these loans on their books. In turn, the increased burden on the borrowers is likely to push more of them into bad loan territory.
A couple of weeks ago, the Nigerian government bizarrely asked banks to stop sacking workers. More bad loans will almost certainly trigger more sackings.
It remains to be seen how the government will react to more sackings if and when they happen. Or perhaps the banks will use it as a bargaining tool to extract another round of bailouts from the government.
The CBN says that 10.1% of all the loans in Nigeria's banking system have gone bad. A lot of these loans are foreign currency loans extended to local oil and gas companies when crude oil prices were $100 per barrel.
Between 2012 and 2014, an estimated $10bn was lent to local oil companies to purchase assets from foreign oil majors.
Once the naira starts to float, banks will have to adjust the value of these loans on their books. In turn, the increased burden on the borrowers is likely to push more of them into bad loan territory.
A couple of weeks ago, the Nigerian government bizarrely asked banks to stop sacking workers. More bad loans will almost certainly trigger more sackings.
It remains to be seen how the government will react to more sackings if and when they happen. Or perhaps the banks will use it as a bargaining tool to extract another round of bailouts from the government.
5. Foreign airlines will be back in business
Another effect of rationing foreign currency in the past year is that it has allowed a backlog of unmet demand for forex to steadily build up.
The CBN says this backlog is now at $4bn and will take four weeks to clear. Others say the backlog is at least double that amount.
Included in that backlog is the $600m owed to foreign airlines which has caused a number of them to either stop serving Nigeria entirely or put the route under review.
If nothing else, this has been embarrassing for Nigeria and has drawn unflattering comparisons with Venezuela. Once that backlog is cleared, foreign airlines should continue their business as normal.
Of course, trapped funds are not their only worry - the economic situation has done its bit to dampen demand for foreign travel by Nigerians. Still, solving one of two problems is not a bad deal.
The verdict?
Ultimately, Nigerians have reason to hope that the worst of the last year is now over.
With a floating exchange rate, foreign investors can have more confidence in the country and Nigeria should see an uptick in the foreign investments it so desperately needs.
Another effect of rationing foreign currency in the past year is that it has allowed a backlog of unmet demand for forex to steadily build up.
The CBN says this backlog is now at $4bn and will take four weeks to clear. Others say the backlog is at least double that amount.
Included in that backlog is the $600m owed to foreign airlines which has caused a number of them to either stop serving Nigeria entirely or put the route under review.
If nothing else, this has been embarrassing for Nigeria and has drawn unflattering comparisons with Venezuela. Once that backlog is cleared, foreign airlines should continue their business as normal.
Of course, trapped funds are not their only worry - the economic situation has done its bit to dampen demand for foreign travel by Nigerians. Still, solving one of two problems is not a bad deal.
The verdict?
Ultimately, Nigerians have reason to hope that the worst of the last year is now over.
With a floating exchange rate, foreign investors can have more confidence in the country and Nigeria should see an uptick in the foreign investments it so desperately needs.
Thursday, June 16, 2016
Niger Delta Avengers set tough conditions for negotiation with Nigerian government
Niger Delta Avenger militants have set stringent conditions for tripartite negotiations to begin contrary to claims by government that talks are already underway. Nigeria's crude oil exports are nearing 30 years low, as militants attacked more oil installations in the Niger Delta.
President Buhari returns from medical trip today
President Muhammadu Buhari is expected back to Nigeria today from London.
Buhari had two weeks ago embarked on a 10-day trip for medical treatment.
The Presidency had, in a statement, said the President would during the visit to the United Kingdom, see an Ear, Nose and Throat specialist for a persistent ear infection.
The 10-day holiday ended on Wednesday.
An insider hinted Punch that arrangements had been put in place to receive the President, who is due back in the country on Thursday.
“He is expected back on Thursday (today). We are in touch with him. As of today (Wednesday), we have not been told that there is any change in arrangement,” the source said.
Recall that the presidency had on Monday, released photographs of the visit of the Archbishop of Canterbury, Most Revd, Justin Welby, to Buhari in London.
Buhari had two weeks ago embarked on a 10-day trip for medical treatment.
The Presidency had, in a statement, said the President would during the visit to the United Kingdom, see an Ear, Nose and Throat specialist for a persistent ear infection.
The 10-day holiday ended on Wednesday.
An insider hinted Punch that arrangements had been put in place to receive the President, who is due back in the country on Thursday.
“He is expected back on Thursday (today). We are in touch with him. As of today (Wednesday), we have not been told that there is any change in arrangement,” the source said.
Recall that the presidency had on Monday, released photographs of the visit of the Archbishop of Canterbury, Most Revd, Justin Welby, to Buhari in London.
Minister of Petroleum says Job creation will end pipeline vandalism in Nigeria
The Minister of Petroleum Resources, and Group Managing Director of Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu, has stated that Nigeria would not totally eradicate pipeline vandalism without creating an enabling environment that will empower militants in the Niger Delta.
Kachikwu, who made this disclosure in Uyon, the Akwa Ibom State capital, noted that with the array of pipeline bombings by the Nigerian Delta Avengers, NDA, it would take nothing less than 15 to 20 years to get infrastructure in the oil sector working.
According to him, “Modular refineries are going to be the answer to our problems in the future. We talk about the militants and their agitations; the reality is that until we begin to put things in place that would have these so called ‘militants’ find opportunities in the sector, the destruction is going to continue.
“I have appealed to those who are breaking oil pipelines for now, the Niger Delta Avengers and everybody else, and as you know, we are engaging in negotiations for us to find peace this week and be able to enter a truce that stops all the destruction.”
Kachikwu noted that Akwa Ibom would have an oil depot, as his ministry developed a document basically on relationship with oil producing states.
He said: “So we can find a direct link between what we do and the oil that we produce. Then the restiveness will go. More than just the depot, I think Akwa Ibom deserves more.”
Kachikwu, who made this disclosure in Uyon, the Akwa Ibom State capital, noted that with the array of pipeline bombings by the Nigerian Delta Avengers, NDA, it would take nothing less than 15 to 20 years to get infrastructure in the oil sector working.
According to him, “Modular refineries are going to be the answer to our problems in the future. We talk about the militants and their agitations; the reality is that until we begin to put things in place that would have these so called ‘militants’ find opportunities in the sector, the destruction is going to continue.
“I have appealed to those who are breaking oil pipelines for now, the Niger Delta Avengers and everybody else, and as you know, we are engaging in negotiations for us to find peace this week and be able to enter a truce that stops all the destruction.”
Kachikwu noted that Akwa Ibom would have an oil depot, as his ministry developed a document basically on relationship with oil producing states.
He said: “So we can find a direct link between what we do and the oil that we produce. Then the restiveness will go. More than just the depot, I think Akwa Ibom deserves more.”
Nigeria finally gives in and will float the troubled Naira
After months of dithering, Nigeria’s Central Bank will allow the national currency’s value be determined by market forces after removing pegs which tied it to a fixed figure. The new policy will take effect from June 20 and will effectively devalue the naira.
The naira was officially pegged at around 199 naira to $1 but as the economy tanked and foreign reserves dried up, the Central Bank allowed few local businesses or individuals access to dollars at that rate. On the more commonly used parallel markets it traded around 350 naira to $1, which many believe is a fairer reflection of its value. It is a departure from the Central Bank’s former position as the sole dealer and means the naira will now be traded through the Central Bank’s selected primary dealers.
The policy change has been largely welcomed. It follows months of fuel shortages, record inflation and investor withdrawal—occasioned by a stubborn refusal to devalue the currency in the face of dipping revenues as a result of the sharp drop in the price of oil, the country’s main resource. Manji Cheto, senior vice president at London-based Teneo Intelligence says the Central Bank’s change of tack “is a clear admission that its earlier policies had failed.”
The Central Bank’s refusal to devalue the naira reflected the position of Nigeria’s president, Muhammadu Buhari. He has said a devaluation was tantamount to ‘killing the naira’. Even though the Central Bank is supposed to operate independently of government the president’s stated position is believed to have influenced the Central Bank. The administration’s refusal to devalue, despite pleas from international and local economists, triggered investor caution in light of the country’s strict monetary policies.
The apex bank says it will periodically intervene in the market, stating conditions under which this could happen in its new guidelines on trading foreign exchange. But Cheto says the possibility of an intervention means the new policy can only be described as a “managed float.”
The Central Bank expects its new policy to close the gap in the current dual exchange rates possibly merging the pegged rate of the naira and its value on the parallel market where it has typically traded around 50% higher for most of the year. “We’re talking about an open, transparent two-way system,” Godwin Emefiele, Central Bank governor said at a press conference. “It’s intended we don’t have speculators and rent-seekers. I don’t expect that any other exchange rate will be recognized.”
The naira was officially pegged at around 199 naira to $1 but as the economy tanked and foreign reserves dried up, the Central Bank allowed few local businesses or individuals access to dollars at that rate. On the more commonly used parallel markets it traded around 350 naira to $1, which many believe is a fairer reflection of its value. It is a departure from the Central Bank’s former position as the sole dealer and means the naira will now be traded through the Central Bank’s selected primary dealers.
The policy change has been largely welcomed. It follows months of fuel shortages, record inflation and investor withdrawal—occasioned by a stubborn refusal to devalue the currency in the face of dipping revenues as a result of the sharp drop in the price of oil, the country’s main resource. Manji Cheto, senior vice president at London-based Teneo Intelligence says the Central Bank’s change of tack “is a clear admission that its earlier policies had failed.”
The Central Bank’s refusal to devalue the naira reflected the position of Nigeria’s president, Muhammadu Buhari. He has said a devaluation was tantamount to ‘killing the naira’. Even though the Central Bank is supposed to operate independently of government the president’s stated position is believed to have influenced the Central Bank. The administration’s refusal to devalue, despite pleas from international and local economists, triggered investor caution in light of the country’s strict monetary policies.
The apex bank says it will periodically intervene in the market, stating conditions under which this could happen in its new guidelines on trading foreign exchange. But Cheto says the possibility of an intervention means the new policy can only be described as a “managed float.”
The Central Bank expects its new policy to close the gap in the current dual exchange rates possibly merging the pegged rate of the naira and its value on the parallel market where it has typically traded around 50% higher for most of the year. “We’re talking about an open, transparent two-way system,” Godwin Emefiele, Central Bank governor said at a press conference. “It’s intended we don’t have speculators and rent-seekers. I don’t expect that any other exchange rate will be recognized.”
Tuesday, June 14, 2016
President Buhari says Nigeria must 'radically' boost exports
Nigeria must “radically” increase its exports to ease shortages of foreign exchange in the oil-dependent West African nation, President Muhammadu Buhari said.
“In a world of lower oil prices and dollar revenues, the only sustainable path is to reduce Nigerians’ over-reliance on imports,” Buhari, 73, who came to power in May 2015, wrote in an opinion piece published in the Wall Street Journal on Monday. “We must rebalance our economy by empowering entrepreneurs and producers, big and small, to create more of what their fellow Nigerians demand.”
The government will help local businesses by encouraging more investment in infrastructure and lowering taxes on small companies, he said. It will also “eliminate bureaucracy to bring the informal economy out of the shadows.” The central bank will introduce a more flexible foreign-exchange policy, Buhari wrote, without giving any details of plans first announced by Governor Godwin Emefiele on May 24.
Africa’s largest economy has been battered by the fall in oil prices since mid-2014 and a drop in production this year to an almost three-decade low as militants bomb crude and gas pipelines. The economy contracted in the first quarter for the first time since 2004 and a recession is imminent, according to the central bank. Inflation accelerated to 15.6 percent in May, the highest rate since early 2010, the national statistics office said on Tuesday.
“In a world of lower oil prices and dollar revenues, the only sustainable path is to reduce Nigerians’ over-reliance on imports,” Buhari, 73, who came to power in May 2015, wrote in an opinion piece published in the Wall Street Journal on Monday. “We must rebalance our economy by empowering entrepreneurs and producers, big and small, to create more of what their fellow Nigerians demand.”
The government will help local businesses by encouraging more investment in infrastructure and lowering taxes on small companies, he said. It will also “eliminate bureaucracy to bring the informal economy out of the shadows.” The central bank will introduce a more flexible foreign-exchange policy, Buhari wrote, without giving any details of plans first announced by Governor Godwin Emefiele on May 24.
Africa’s largest economy has been battered by the fall in oil prices since mid-2014 and a drop in production this year to an almost three-decade low as militants bomb crude and gas pipelines. The economy contracted in the first quarter for the first time since 2004 and a recession is imminent, according to the central bank. Inflation accelerated to 15.6 percent in May, the highest rate since early 2010, the national statistics office said on Tuesday.
Nigeria sacks entire cricket team including coaches
In a bizarre, yet not unexpected move, the Nigeria Cricket Federation has sacked the entire men's cricket team and their Indian coach, Shriam Regananthian.
This was after the side failed in the ICC World Cricket League Division Five tournament held last month in UK, finishing bottom of the table.
The team had just one win over Tanzania and lost to Oman, Guernsey, Vanatu and Jersey. The team also lost to Tanzania again to claim the bottom spot. Jersey went on to become champions.
Federation president, Emeka Onyeama added that national chief coach Uthe Ogbimi has also been relieved of his duty with the team. He blamed Ogbimi and the team Captain Kunle Adegbola for the embarrassing campaign. He however refused to blame the Indian level A coach who joined the team on the eve of their departure to UK.
According to him, the team underperformed despite having intensive preparations and increment of their daily allowance to $100 per day from the old regiment of $25- $50 per day.
He declared that the federation would now undertake a rebuilding process where young players from the U-19 team would be upgraded to the national team.
He said a new national coaching crew will be announced in the wake of the proposed North West Africa Tournament and ICC/Africa T-20 tournament scheduled for September.
This was after the side failed in the ICC World Cricket League Division Five tournament held last month in UK, finishing bottom of the table.
The team had just one win over Tanzania and lost to Oman, Guernsey, Vanatu and Jersey. The team also lost to Tanzania again to claim the bottom spot. Jersey went on to become champions.
Federation president, Emeka Onyeama added that national chief coach Uthe Ogbimi has also been relieved of his duty with the team. He blamed Ogbimi and the team Captain Kunle Adegbola for the embarrassing campaign. He however refused to blame the Indian level A coach who joined the team on the eve of their departure to UK.
According to him, the team underperformed despite having intensive preparations and increment of their daily allowance to $100 per day from the old regiment of $25- $50 per day.
He declared that the federation would now undertake a rebuilding process where young players from the U-19 team would be upgraded to the national team.
He said a new national coaching crew will be announced in the wake of the proposed North West Africa Tournament and ICC/Africa T-20 tournament scheduled for September.
Niger Delta Avengers threaten more violence
The Niger Delta Avengers (NDA) has warned Nigerian authorities it may “review our earlier stance of not taking lives” if oil companies continue to operate in the country’s oil hub.
The militant group has launched a series of attacks on oil pipelines and facilities in the Niger Delta, where the majority of Nigeria’s oil reserves are concentrated. The NDA has so far rejected offers of dialogue from the Nigerian government and vowed to continue its Operation Red Economy, the purported goal of which is to reduce the West African country’s oil production to zero.
In a statement published on its website on Monday, the NDA said that the oil companies must not carry out any repair works on the affected pipelines and that buying of crude oil from the Niger Delta must be suspended “as we await the right atmosphere that will engender genuine dialogue.”
The NDA has claimed attacks on facilities belonging to several international oil companies, including Royal Dutch Shell, U.S. firm Chevron and Italian oil giant ENI. Some of their attacks have shown a high degree of sophistication and have taken down strategically-important pipelines—the first attack claimed by the group was on an underwater pipeline at Shell’s Forcados terminal and forced the company to temporarily shut down the 250,000 barrels per day (bpd) terminal.
Nigerian oil minister Emmanuel Ibe Kachikwu attempted to reach out to the militants earlier in June, saying that the Nigerian military would step back from pursuing the group in order to establish a platform for dialogue. In Monday’s statement, however, the NDA said it would only participate in dialogue with “independent mediators” appointed by the international oil companies working in the region.
Historically, the Niger Delta has been the site of previous uprisings by militant groups, who have claimed that the impoverished region does not benefit sufficiently from its oil wealth. In the mid-2000s, militants led by the Movement for the Emancipation of the Niger Delta (MEND) decimated the country’s oil production and kidnapped oil workers, with the insurgency only coming to an end in 2009 with the introduction of an amnesty program for the fighters. MEND has publicly called upon the NDA to engage in dialogue with the government, but the latter group has rejected the former and criticized its leaders for abandoning their cause.
Largely as a result of attacks by the NDA and other militants, Nigeria’s oil production has plummeted from 2.2 million bpd to a 20-year low of between 1.5 million and 1.6 million bpd.
The militant group has launched a series of attacks on oil pipelines and facilities in the Niger Delta, where the majority of Nigeria’s oil reserves are concentrated. The NDA has so far rejected offers of dialogue from the Nigerian government and vowed to continue its Operation Red Economy, the purported goal of which is to reduce the West African country’s oil production to zero.
In a statement published on its website on Monday, the NDA said that the oil companies must not carry out any repair works on the affected pipelines and that buying of crude oil from the Niger Delta must be suspended “as we await the right atmosphere that will engender genuine dialogue.”
The NDA has claimed attacks on facilities belonging to several international oil companies, including Royal Dutch Shell, U.S. firm Chevron and Italian oil giant ENI. Some of their attacks have shown a high degree of sophistication and have taken down strategically-important pipelines—the first attack claimed by the group was on an underwater pipeline at Shell’s Forcados terminal and forced the company to temporarily shut down the 250,000 barrels per day (bpd) terminal.
Nigerian oil minister Emmanuel Ibe Kachikwu attempted to reach out to the militants earlier in June, saying that the Nigerian military would step back from pursuing the group in order to establish a platform for dialogue. In Monday’s statement, however, the NDA said it would only participate in dialogue with “independent mediators” appointed by the international oil companies working in the region.
Historically, the Niger Delta has been the site of previous uprisings by militant groups, who have claimed that the impoverished region does not benefit sufficiently from its oil wealth. In the mid-2000s, militants led by the Movement for the Emancipation of the Niger Delta (MEND) decimated the country’s oil production and kidnapped oil workers, with the insurgency only coming to an end in 2009 with the introduction of an amnesty program for the fighters. MEND has publicly called upon the NDA to engage in dialogue with the government, but the latter group has rejected the former and criticized its leaders for abandoning their cause.
Largely as a result of attacks by the NDA and other militants, Nigeria’s oil production has plummeted from 2.2 million bpd to a 20-year low of between 1.5 million and 1.6 million bpd.
Monday, June 13, 2016
Nigeria wants to close down banks that lay off staff due to bad economy
Nigeria’s government is taking an unconventional approach in a bid to stop its rising unemployment rate from spiraling out of control.
The country’s labour minister ordered financial institutions to stop sacking workers and threatened a possible license withdrawal of banks who flout the order. The order comes after a fortnight which has seen financial institutions in Nigeria lay off workers en masse.
While the banks describe the retrenchment as part of a “renewed drive for optimal performance” and “market re-positioning exercise”, it’s widely believed the layoffs are a stark reaction to unfavorable economic headwinds in Africa’s largest economy. With a high non-performing loan rate in the banking system as well as the institution of a Treasury Single Account which required banks to pay all government cash in their coffers to the Central Bank, local banks reported profit declines in the first quarter of the year.
The layoffs also compounds Nigeria’s unemployment woes, with half a million people said to have lost jobs in the first quarter of the year. The increasing lack of job security has heaped even more pressure on the president Muhammadu Buhari who is faced with fixing a shrinking economy. In reaction, Buhari’s party, the ruling All Progressives Congress described the layoffs by banks as “sabotage” to discredit its government under which unemployment has spiked.
For its part, the government is hoping ease the unemployment crisis by rolling out mass recruitment exercises. Earlier this week, it flagged the hiring of 500,000 unemployed graduates into teaching positions. Similarly, at the start of the year, the government kicked off a recruitment exercise into the police force but the response was likely chilling evidence of the scale of the problem at hand as nearly a million people applied for the recruitment exercise which only listed 10,000 positions.
The country’s labour minister ordered financial institutions to stop sacking workers and threatened a possible license withdrawal of banks who flout the order. The order comes after a fortnight which has seen financial institutions in Nigeria lay off workers en masse.
While the banks describe the retrenchment as part of a “renewed drive for optimal performance” and “market re-positioning exercise”, it’s widely believed the layoffs are a stark reaction to unfavorable economic headwinds in Africa’s largest economy. With a high non-performing loan rate in the banking system as well as the institution of a Treasury Single Account which required banks to pay all government cash in their coffers to the Central Bank, local banks reported profit declines in the first quarter of the year.
The layoffs also compounds Nigeria’s unemployment woes, with half a million people said to have lost jobs in the first quarter of the year. The increasing lack of job security has heaped even more pressure on the president Muhammadu Buhari who is faced with fixing a shrinking economy. In reaction, Buhari’s party, the ruling All Progressives Congress described the layoffs by banks as “sabotage” to discredit its government under which unemployment has spiked.
For its part, the government is hoping ease the unemployment crisis by rolling out mass recruitment exercises. Earlier this week, it flagged the hiring of 500,000 unemployed graduates into teaching positions. Similarly, at the start of the year, the government kicked off a recruitment exercise into the police force but the response was likely chilling evidence of the scale of the problem at hand as nearly a million people applied for the recruitment exercise which only listed 10,000 positions.
Video - Media's obsession with Nigeria's rich kids
Nigeria’s ‘super-rich’—or rather, their children—have been a source of intrigue bordering on obsession within the British media for the best part of the last 18 months, as a ‘new’ breed of uber-consumer, jetting in from Lagos to live the high-life in London.
Along the way, they are apparently snapping up upscale property, private education and luxury consumer goods—in between jaunts to the city’s most exclusive nightclubs.
The latest hagiography of these Nigerian transatlantic trust fund babies, is a one-hour TV documentary featured on the UK’s Channel 4 last week (June 7).
“In London’s poshest neighborhoods, Nigeria’s super-rich are moving in,” the narrator breathlessly declares in the opening seconds of Lagos To London: Britain’s New Super-rich.
All against the backdrop of a dark blue Bentley Coupé parked next to a classic Georgian townhouse, a row of the ‘mansion block’ apartments found in many upscale corners of the city and a snippet of a 200-head banquet held at the Mandarin Oriental Hyde Park hotel, that turned out to be a graduation party and not a wedding.
“Hey, some people have graduation photos – we just happen to have magazines,” pipes up the celebrant Florence ‘Cuppy’ Otedola next. She’s the 23 year-old ‘DJ’ daughter of Nigerian oil magnate and Forbes-lister Femi Otedola, who likens herself to a latter-day Marie Antoinette—only with diamond-encrusted Beats headphones. And the bill for her party? Apparently the equivalent of “two nice cars.”
“We follow a new generation of Nigerian elite as they live, work and party—between Lagos and London,” the show’s narrator goes on to promise.
Except that we largely don’t. What we mostly see is the progeny of high-profile Nigerians working hard at spending easy money at places like Harrods. “I try to make it a point of duty to have a personal shopper in different states,“ Lagos ‘media personality’ Toke Makinwa earnestly informs us. That’s London and New York by the way.
Out of all of the characters featured in the program, only one—British-born Alex Amosu appears to be close to doing anything that resembles ‘work’ and being ‘self-made’ as the world mostly defines it.
Is he the creator of some disruptive technology that aims to change the way we live? Solar power perhaps, that will bring Nigerian industry and society literally into the light? No. He sticks 14-carat diamonds onto mobile phone sets—and sells them on to other wealthy Nigerians.
And then you have the 28 year-old Mbadiwe twins Ozee and OC, about whom it is never really clear what they do—other than bask in the light of their distinguished family name, in between selfies.
The show—and Twitter—provided the perfect sounding board for comment and opinion – a heady mix of admiration, aspiration and outrage – among Nigerians at home and in the diaspora.
But arguably the most cogent online commentary on the program could be found away from the twittersphere.
Fans of Lagos To London will argue that the show and the other media stories like it are sorely needed—as alternative narratives to Boko Haram, the Niger Delta Avengers and endless stories of mind-boggling corruption—precisely what Nigeria needs to counter the country’s long-held stereotypes.
But just how much of an alternative are these narratives? Do they seek to pursue a higher truth for a nation misconstrued? What is clear is that they are utterly at odds with the daily monetary experiences of most Nigerians at the moment.
Nigeria may be Africa’s largest economy, but it’s an economy in a mess.
With more people living in poverty than in any other African country, Nigeria is on the brink of recession, the naira is in freefall against the dollar with imminent devaluation a real possibility, and inflation was at 13.6% in April, a six-year high.
Oil production is at its lowest in 20 years, due to poor infrastructure, spiraling global prices and sabotage from the latest iteration of militants in the Delta.
Nigeria also has acutely low foreign exchange reserves of around $27 million and high unemployment at 12.1% in the first quarter of this year.
Stories in western media of young Nigerian playboys and debutantes spending their inheritance via armies of personal shoppers stationed from London to New York via Dubai are a rather unsavory counterpoint to the life lived by Nigerians at home and their attempts to get a grip on an out-of-control economy.
The irony in last week’s documentary is that it featured the grandchildren of some of Nigeria’s late prominent statesmen—former Lagos State Governor Sir Michael Odetola and Kingsley Ozumba Mbadiwe, a minister of the First Republic. But there was a saddening lack of awareness of their own legacy and what their lives say about a country that could be so much more than it is. None of them had anything to say about their homeland, other than perfunctory references to the ‘family business.’
As obsessed with Instagram as they are with instant gratification, the Lagos-to-London super-rich are akin to a gaggle of Nigerian Neros—fiddling while home burns.
Nigerian elites presenting as shallow, luxury goods-obsessed dilettantes provides no more context to the story of Africa’s most populated country than the ubiquitous tales of economic crises, religious fundamentalism and corruption.
Friday, June 10, 2016
Video - Stephen Keshi was respected in Nigerian and African football
Stephen Keshi was a prominent figure not only in Nigerian football but across the continent too.
Video - Nigeria to spend $1.76 bln in capital projects
Nigeria's government will next week pump much of the 1.76 billion dollars earmarked for capital projects into its economy. The spending is part of efforts to stimulate activity after a 0.4 percent contraction in the first quarter of this year. Nigeria is going through its deepest crisis in decades, brought on by the fall in crude prices. Last month Nigeria's central bank governor said a recession appeared to be "imminent". President Muhammadu Buhari signed the delayed 2016 budget into law last month. The record $30.6 billion budget triples capital expenditure compared with the previous year. But with Nigeria's heavy reliance on oil sales, which comprise about 70 percent of national income, it is unclear how this will be achieved.
91.1% of tomato paste in Nigeria are fake
Tomato Pastes manufacturers in the country including Dangote Farms, Erisco Foods Limited and Savanna Farms Thursday told the House of Representatives Joint Committees on Health Care Services and Drugs and Narcotics that over 91.1 percent of tomato pastes in the country were fake and substandard.
This is just as the House has condemned the alleged importation of dangerous killer tomato pastes imported into the country and promised to carry out investigations into the matter.
Meanwhile, the National Agency for Food and Drug Administration and Control, NAFDAC, has fined the Erisco Foods what it called administrative charge of N1 million for an alleged unauthorised advertisement of Erisco range of products without getting clearance and approval from the agency.
The Speaker of the House, Yakubu Dogara in his address at the one day investigative public hearing stated that the House should not consider lightly allegations injurious to public health.
The Speaker who was represented by the Minority Leader, Leo Ogor stated that the public hearing centred primarily on importation of fake substandard and cancer causing tomato paste into the country. He said what was “worrisome is the unpatriotic attitude of some companies and individuals importing fake, substandard and cancer causing tomato paste into the country at the expense of the health and wellbeing of Nigerians.”
Related story: Nigeria hit with critical tomato shortage
Nigeria army 'killed Biafra protesters'
Nigeria's military has killed at least 17 supporters of Biafran independence, according to Amnesty International.
The rights group called on Nigeria's government to investigate the deaths in the south-eastern city of Onitsha last month.
The Nigerian military described the claims as unfounded and misleading.
At least one million people died in the 1967-70 civil war started by Biafran secessionists. Protests have resumed over the past year.
According to Amnesty, some of those who died were members of the Indigenous People of Biafra (Ipob), a group campaigning for Biafran independence.
Some had been shot in the back, an indication that they were fleeing the scene, Amnesty said.
Ipob says Nigeria's government is dominated by northerners and has not done enough to develop the mostly Igbo-speaking south-eastern parts of Nigeria.
The rights group called on Nigeria's government to investigate the deaths in the south-eastern city of Onitsha last month.
The Nigerian military described the claims as unfounded and misleading.
At least one million people died in the 1967-70 civil war started by Biafran secessionists. Protests have resumed over the past year.
According to Amnesty, some of those who died were members of the Indigenous People of Biafra (Ipob), a group campaigning for Biafran independence.
Some had been shot in the back, an indication that they were fleeing the scene, Amnesty said.
Ipob says Nigeria's government is dominated by northerners and has not done enough to develop the mostly Igbo-speaking south-eastern parts of Nigeria.
MTN agrees to pay Nigeria $1.7 billion fine over three years
MTN Group Ltd. agreed to pay a 330 billion naira ($1.7 billion) fine to the Nigerian government over three years, ending an eight-month negotiation process.
MTN Nigeria also agreed to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange, the Johannesburg-based company said in a statement on Friday.
MTN shares rose 10 percent, on track for their biggest gain since 2008, to 136.09 rand as of 12.36 p.m. in Johannesburg.
MTN Nigeria also agreed to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange, the Johannesburg-based company said in a statement on Friday.
MTN shares rose 10 percent, on track for their biggest gain since 2008, to 136.09 rand as of 12.36 p.m. in Johannesburg.
Related story: MTN hires top US fomer attorney to help fight Nigeria fine
Thursday, June 9, 2016
Video - Ringback tones making big money in Nigeria
When you call a Nigerian number, there's a good chance you'll hear music playing. Ringback tones cost just 25 cents a month, but artists, record labels, and telecom companies are raking in millions.
Video - Africa pays tribute to Nigerian football legend Stephen Keshi
There were more tributes paid to the late Stephen Keshi on social media following the news of his death. Here's what his former teammates, colleagues and fans had to say on Twitter.
President Buhari sends list of new ambassadors to Senate
President Muhammadu Buhari has sent a list of 47 new ambassadors to the Nigerian Senate for confirmation.
This was announced by the president of the Senate, Bukola Saraki, during the sitting of the upper legislative chamber on Tuesday.
Mr. Saraki read a letter from Mr. Buhari containing the list.
Names of the nominees are yet to be made public.
Nigeria has had no ambassadors to UK, Germany, USA, China, U.N., Spain, Russia and France after previous envoys were removed by Mr. Buhari after taking office in May 2015.
This was announced by the president of the Senate, Bukola Saraki, during the sitting of the upper legislative chamber on Tuesday.
Mr. Saraki read a letter from Mr. Buhari containing the list.
Names of the nominees are yet to be made public.
Nigeria has had no ambassadors to UK, Germany, USA, China, U.N., Spain, Russia and France after previous envoys were removed by Mr. Buhari after taking office in May 2015.
Rihanna and Jay Z sued for cancelling show in Nigeria after receiving $160k advance
Rihanna and Jay Z, who runs her music label Roc Nation, are being sued for allegedly collecting money for a concert she never gave.
The Work singer, 28, was allegedly booked to perform a show in Nigeria by Chris Ubosi and his radio station Megalectrics back in May 2013, TMZ is reporting.
Ubosi claims he made a deal with two individuals who represented Rihanna, Roc Nation and Jay Z with the promise that she would be paid $425,000 for a 65-minute performance at the Eko Hotel in Lagos - but a rep for Rihanna's label says the promoter was the victim of a scam.
The promoter coughed up $160,000 in three installments but then he claims her people asked to push back the concert to July.
According to TMZ, Ubosi agreed on the condition that Rihanna alert her fans of the date switch on social media.
DailyMail.com has reached out to Rihanna's representative for comment.
In his lawsuit filed in Manhattan Supreme Court, Ubosi claims that Rihanna never did mention the change on social media and so he and Megalectrics 'demanded the full and prompt return of their money,' the lawsuit says.
Ubosi claims he never got the $160k advance back and so he's taking Rihanna to court.
Her label Roc Nation and founder Jay Z, 46, who is wed to Beyonce, have been named as defendants.
The Barbadian beauty and her camp, on the other hand, are saying Ubosi was the victim of a scam and that they had nothing to do with this deal.
'Rihanna, Roc Nation nor anyone associated personally or professionally with either party was in contact with this person,' a spokesperson for Roc Nation told TMZ.
'Unfortunately this person was scammed. Rihanna nor Roc Nation collected any money for this event.'
Rihanna is currently in the midst of her Anti World Tour to support her eighth studio album released on January 28 exclusively through Tidal.
In total, she will perform 74 shows across North America and Europe.
The Work singer, 28, was allegedly booked to perform a show in Nigeria by Chris Ubosi and his radio station Megalectrics back in May 2013, TMZ is reporting.
Ubosi claims he made a deal with two individuals who represented Rihanna, Roc Nation and Jay Z with the promise that she would be paid $425,000 for a 65-minute performance at the Eko Hotel in Lagos - but a rep for Rihanna's label says the promoter was the victim of a scam.
The promoter coughed up $160,000 in three installments but then he claims her people asked to push back the concert to July.
According to TMZ, Ubosi agreed on the condition that Rihanna alert her fans of the date switch on social media.
DailyMail.com has reached out to Rihanna's representative for comment.
In his lawsuit filed in Manhattan Supreme Court, Ubosi claims that Rihanna never did mention the change on social media and so he and Megalectrics 'demanded the full and prompt return of their money,' the lawsuit says.
Ubosi claims he never got the $160k advance back and so he's taking Rihanna to court.
Her label Roc Nation and founder Jay Z, 46, who is wed to Beyonce, have been named as defendants.
The Barbadian beauty and her camp, on the other hand, are saying Ubosi was the victim of a scam and that they had nothing to do with this deal.
'Rihanna, Roc Nation nor anyone associated personally or professionally with either party was in contact with this person,' a spokesperson for Roc Nation told TMZ.
'Unfortunately this person was scammed. Rihanna nor Roc Nation collected any money for this event.'
Rihanna is currently in the midst of her Anti World Tour to support her eighth studio album released on January 28 exclusively through Tidal.
In total, she will perform 74 shows across North America and Europe.
Video - Makoko floating school collapses
A floating school built to withstand storms and floods at a lagoon in Nigeria’s commercial capital Lagos and educate children from a nearby slum has collapsed only seven months after its official opening.
The aid-funded Makoko Floating School offered free education to children who lived in nearby huts on stilts. Most of their parents fish for a living and, like most of the megacity’s 23 million residents, lack a reliable electricity and water supply.
Heavy rains brought down the pyramid-shaped wooden school, built on a platform held afloat by hundreds of plastic barrels, on Tuesday. None of its nearly 50 pupils were in the building when it collapsed, officials said.
Classes had already been moved to another location in late March after heavy downpours at the start of the rainy season began to affect classes.
“It is not only the floating school that collapsed. It collapsed many houses surrounding the floating school,” said David Shemede, Makoko resident and brother of the school’s director.
Building collapses are a common problem in the west African nation, sometimes due to the use of poor materials and weak enforcement of regulations. At least 30 people died when a building collapsed in an upmarket Lagos district in March.
The school was built to adapt to changing water levels and withstand the storms and floods that lash Lagos in the four-month-long rainy season. Its Nigerian architect Kunle Adeyemi said in a statement that the Makoko community was considering upgrading the structure and rebuilding an improved version of the school.
Makoko was established as a fishing village hundreds of years ago but climate change and rapid urbanisation are now threatening its way of life.
The school was officially opened in November 2015 after being in use for more than a year beforehand. It took three years to build and catered to children coming from the only English-speaking school in the area. Pupils travelled to it by canoe.
Related stories: Makoko's floating school struggles to stay afloat
ECOWAS fines Nigeria $3.3m over extra-judicial killings
The Economic Community of West African States, ECOWAS, court has imposed a fine of $3.3 million on Nigeria over the extra-judicial killing of eight citizens in the Apo District of Abuja, Federal Capital Territory.
The regional court ordered the country to pay compensatory damages of $200,000 to each of the family of the deceased killed and $150,000 to each of the injured by a combined team of soldiers and operatives of the Department of State Service, DSS, during a raid of an uncompleted building at Apo Area of Abuja.
The eight Nigerians killed when the security personnel opened fire on them were later found to be commercial motorcycle (Okada) riders who were taking refuge in the uncompleted building as a result of skyrocketing cost of house rent in the capital city.
The eight Nigerians killed when the security personnel opened fire on them were later found to be commercial motorcycle (Okada) riders who were taking refuge in the uncompleted building as a result of skyrocketing cost of house rent in the capital city.
Those killed are Nura Abdullahi, Ashiru Musa, Abdullahi Manmman, Buhari Ibrahim, Suleiman Ibrahim, Ahmadu Musa, Nasir Adamu and Musa Yobe, while the 11 injured include Muttaka Abubakar, Sani Abdulrahman, Nuhu Ibrahim, Ibrahim Mohammed, Ibrahim Aliyu, Yahaya Bello, Abubakar Auwal, Yusuf Abubakar, Ibrahim Bala, Murtala Salihu and Sanni Usman.
A Non-Governmental Organization, NGO, The Incorporated Trustees of Fiscal and Civil Right Enlightment Foundation, had on behalf of the deceased, dragged Nigeria, the Army and Department of State Service, before regional court to challenge the legality of the killing of the eight commercial motorcyclists and the injuring of others when the securitymen invaded their apartment.
In the judgment of ECOWAS Court delivered by presiding Justice, FridayChijioke Nwoke, Nigeria was found liable of brutal killing of defenseless citizens, contrary to the provision of local and international law on the fundamental rights of citizens to life. The panel of three justices, headed by Justice Nwoke, condemned the killing as barbaric, illegal and unconstitutional and a breach of the fundamental rights of the deceased to life.
Niger Delta Avengers don't want to negotiate with government
A militant group in Nigeria’s oil-producing Niger Delta region says it will not negotiate with the government and has continued to blow up oil pipelines.
Nigeria’s Petroleum Minister Emmanuel Ibe Kachikwu said on Monday that the government was ready to begin a dialogue with stakeholders in the Niger Delta, a region which suffered an insurgency during the mid-2000s by militants who claimed that the country’s oil wealth was not being fairly distributed. “I want to call on the militants to sheath their weapons and embrace dialogue with the government,” said Kachikwu, who also indicated that the Nigerian military would suspend its operations in the Niger Delta.
The Niger Delta Avengers (NDA), which has carried out a spate of attacks on oil infrastructure since February, announced early on Wednesday that it was not involved in any negotiations. “We’re not negotiating with any committee. If [the federal government] is discussing with any group they’re doing that on their own,” said the group via its Twitter feed.
The group continued its campaign of attacking oil pipelines, claiming to have blown up an oil platform run by U.S. company Chevron early on Wednesday in Warri, Delta state, southern Nigeria. The attack was confirmed to Reuters by a local community chief, although Chevron declined to comment.
A senior officer in the Nigerian Army confirmed on Wednesday that it was observing a two-week ceasefire in the Niger Delta, though warned that military operations could resume if the militants did not respond to requests for dialogue. “The two-week ceasefire was such that all military operations in the region were supposed to stop to enable government to apply the non-kinetic means of reaching out to the militants,” said Ibrahim Attahiru, a major-general in the Nigerian Army, according to Nigeria’s Premium Times. “Now the militants have resorted to continue with the attacks on pipelines, we will tarry for a while and if this does not stop, we will decisively act wherever it is necessary.”
The NDA launched its first attack in February, blowing up an underwater pipeline at the Forcados terminal operated by Shell. The group appears to have links with the pro-Biafran movement, which is campaigning for the secession of Biafra in southeast Nigeria. Biafra existed as an independent republic between 1967 and 1970 before being reintegrated into Nigeria. The NDA has also disavowed links with the Movement for the Emancipation of the Niger Delta (MEND), a militant group that led the mid-2000s insurgency in the Niger Delta. The insurgency only came to an end following the introduction of a presidential amnesty program in 2009.
Nigeria’s oil output has dropped from 2.2 million barrels per day (bpd) at the start of 2016 to between 1.5 million and 1.6 million bpd, Kachikwu said. Nigeria’s economy is heavily dependent on the oil and gas sector and the country has now fallen behind Angola as Africa’s biggest oil producer.
Nigeria’s Petroleum Minister Emmanuel Ibe Kachikwu said on Monday that the government was ready to begin a dialogue with stakeholders in the Niger Delta, a region which suffered an insurgency during the mid-2000s by militants who claimed that the country’s oil wealth was not being fairly distributed. “I want to call on the militants to sheath their weapons and embrace dialogue with the government,” said Kachikwu, who also indicated that the Nigerian military would suspend its operations in the Niger Delta.
The Niger Delta Avengers (NDA), which has carried out a spate of attacks on oil infrastructure since February, announced early on Wednesday that it was not involved in any negotiations. “We’re not negotiating with any committee. If [the federal government] is discussing with any group they’re doing that on their own,” said the group via its Twitter feed.
The group continued its campaign of attacking oil pipelines, claiming to have blown up an oil platform run by U.S. company Chevron early on Wednesday in Warri, Delta state, southern Nigeria. The attack was confirmed to Reuters by a local community chief, although Chevron declined to comment.
A senior officer in the Nigerian Army confirmed on Wednesday that it was observing a two-week ceasefire in the Niger Delta, though warned that military operations could resume if the militants did not respond to requests for dialogue. “The two-week ceasefire was such that all military operations in the region were supposed to stop to enable government to apply the non-kinetic means of reaching out to the militants,” said Ibrahim Attahiru, a major-general in the Nigerian Army, according to Nigeria’s Premium Times. “Now the militants have resorted to continue with the attacks on pipelines, we will tarry for a while and if this does not stop, we will decisively act wherever it is necessary.”
The NDA launched its first attack in February, blowing up an underwater pipeline at the Forcados terminal operated by Shell. The group appears to have links with the pro-Biafran movement, which is campaigning for the secession of Biafra in southeast Nigeria. Biafra existed as an independent republic between 1967 and 1970 before being reintegrated into Nigeria. The NDA has also disavowed links with the Movement for the Emancipation of the Niger Delta (MEND), a militant group that led the mid-2000s insurgency in the Niger Delta. The insurgency only came to an end following the introduction of a presidential amnesty program in 2009.
Nigeria’s oil output has dropped from 2.2 million barrels per day (bpd) at the start of 2016 to between 1.5 million and 1.6 million bpd, Kachikwu said. Nigeria’s economy is heavily dependent on the oil and gas sector and the country has now fallen behind Angola as Africa’s biggest oil producer.
Wednesday, June 8, 2016
Video - Tomato disease leads to factories closing in Nigeria
Nigeria is still battling to control a tomato disease that is ravaging farms. The illness called Tuta Absoluta, has led to severe shortages of the much loved vegetable. Processing plants have been shut down and tomato prices have soared. CCTV's Deji Badmus travelled to the North-western Kaduna state to see how deep the crisis runs.
Video - Nigeria to become a nuclear power
Hadassah Egbedi for Ventures Africa reports The ATOMEXPO 2016 International Forum in Moscow, the largest meeting of world leaders and experts on nuclear power, three African countries, Nigeria, Kenya and Zambia signed a Memorandum of Understanding with Russia on nuclear energy.
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