No reliable statistics on Nigeria’s poverty rate – World Bank

The World Bank has said there is no reliable data with which to correctly measure the decline or increase in Nigeria’s poverty rate.
In a video press conference to mark the release of Africa’s Pulse, an analysis of issues shaping the continent’s economic future, the World Bank’s Chief Economist for the African region, Mr. Shanta Devarajan, said the poverty rate in the continent’s resource rich was reducing slower than in non-rich resource nations.
Answering a specific question on Nigeria’s poverty rate, Devarajan said the subject was very controversial and suggested that the country should invest more in the production of statistics that were reliable.
“We (World Bank) don’t know Nigeria’s poverty rate. We don’t know whether it is going up or coming down. There is a lot controversy surrounding it. There is need to invest in data,” he said.
The National Bureau of Statistics had in February released figures that showed that the nation’s poverty level was increasing. The report was mired in controversy as it was rejected by the Federal Government.
The Statistician-General of the Federation, Dr. Yemi Kale, had said, “It remains a paradox … that despite the fact that the Nigerian economy is growing, the proportion of Nigerians living in poverty is increasing every year.
“NBS estimates that this trend may have increased further in 2011 if the potential positive impacts of several anti-poverty and employment generation intervention programmes are not taken into account.”
According to him, the poverty rate in Nigeria may have risen to 71.5 per cent, 61.9 per cent, and 62.8 per cent using the relative, absolute and dollar-per-day measures, respectively, adding that the picture would become clearer when the Annual Socio-Economic Survey would be completed later in the year.[b][/b]
Devarajan, however, said the continent needed to translate the high growth rate it was enjoying into poverty reduction, adding that job creation remained an important instrument for poverty reduction.
He said the continent had a large young population that could make it a powerhouse in the future, but regretted that with the slow rate of job creation, the young people might end up working in the informal sector as their parents.
In a statement issued at the end of the conference, the World Bank said Africa was expected to grow at 4.8 per cent for all of 2012.
Excluding South Africa, the continent’s largest economy, growth in sub-Saharan Africa was forecast to rise to six per cent
 BusinessNews

GTBank is Nigeria’s Biggest Bank by Market Capitalization

GTBank MD, Segun Agbaje

GTBank is currently Nigeria’s biggest bank by market capitalization value. Market Capitalization represents the share price of a company multiplied by its number of outstanding shares. By this metric, GTBank is leading the financial services industry as it closed with N606.3 billion as at the close of the Nigerian Stock Exchange yesterday.
Zenith Bank came in a distant second, closing with N533.4 billion at the close of business yesterday. First Bank and Access Bank were third and fourth, closing with N505.8 billion and N209.4 billion respectively.
UBA came in at fifth with a market capitalization of N154.4 billion at the close of the market yesterday.
The least capitalized bank in the industry was Wema Bank which closed at N6.4 billion yesterday.
Nigeria’s top 5 banks also known as the top-tier banks are set to double their profits this financial year as shared profits increase to $1.6 billion from $400 million in 2005.
CEO of Access Bank, Aigboje Imokhuede says, “The Nigerian banking system is set for a new era of competition”.
BusinessNews

AFDB collaborates with IITA to aid farmers in flooded states

Tomatoes Produce at a Farmers market

An agricultural-assisted programme, the African Development Bank (AFDB) has concluded arrangements to collaborate with the International Institute of Tropical Agriculture (IITA), in a bid to support farmers in the flood besieged states.

Dr Ibrahim Arabi, who is the National Co-ordinator of AFDB Community-based agricultural and rural development programme, yesterday disclosed this while speaking to journalists after attending a meeting with some government officials and the affected farmers in Yola, Adamawa State.

The Co-ordinator, maintained that the move was to curb imminent National food crisis because of the flood in some States.

“The bank has concluded arrangement with the management of IITA to urgently provide and release early yield varieties of maize, cowpea, rice among others to farmers in flood affected states to curtail the imminent food crisis,” he continued.

He stated that, they will provide short-term varieties, the varieties would be harvested within 60 to 80 days to replace the submerged crops for the year. “Anytime from now, when the flood begin to subsidise, farmers should start planting the seeds because we still have two months or more of rain season in some parts of the country and that period would enable them grow the crops,” he said.

Arabi, who doubles as the Zonal Director, Northeast, Federal Ministry of Agriculture, and Rural Development named Adamawa, Bauchi, Gombe, Kwara and Kaduna as the states to benefit from the first phase of the intervention programme. He further expressed dismay to the level of damage the flood has caused and further advised the Federal Government to put in place modalities that will keep this from happening again.
BusinessNews

Union Bank Repays CBN $800 million Bailout Fund

Union Bank MD, Funke Osibodu

Union Bank of Nigeria Plc yesterday announced that it had paid its $800 million bailout fund it collected from CBN, this development was made possible following the huge leap in its deposit and current accounts.

Speaking on the facts behind the Figure on the floor of the Nigerian Stock Exchange, Mrs Funke Osibodu,  the Chief Executive Officer stated that, the bank paid the debt with interest and in the same period recorded growth in market share and maintains a strong financial position.

It could be recalled that Union Bank was one of the banks CBN bailed out in 2009, CBN injected N620 billion into the bank and the bank owed that much until recently. African Capital Alliance, Amcon and other shareholders since acquired the bank with 65%, 20%, and 15% respectively.

Reports coming in last week confirmed that Union Bank has continued to improve on its financial performance with a net profit of N13.6 billion, a PAT of N16.14billion, increased equity to N207.92 billion, all from negative to positive as posted in 2011.
According to Osibodu, other areas of improvement included, “low NPL ratio of five per cent, Strong liquidity, solid capitalisation with CAR of 20.79 per cent, increased number of profitable branches, accountable subsidiaries, emergence of younger workforce and improvement in financial accountability”.

She said the bank’s performance was an indication of its determination to help develop important sectors of the economy, especially the agricultural sector and reinforcing national food security.

She continued that the bank will always use the best risk management practices available as well as put together all logistics needed for customer’ business to grow with free based returns.

“This day forward, strengthening customer relationship will be one of the bank’s tactics building the image of the bank as well as extending products and offers to customers”, she said.

The Chief Executive Officer of the Nigerian Stock Exchange, Oscar Onyema noted in his opening remark that, notwithstanding recent problems that have besieged the bank, it has kept its word as the slogan goes, “Big, Strong, and Reliable.”

His words:  “It is interesting to note that it is the only commercial bank among the erstwhile revitalized banks that still retains its identity. While four of the then rescued banks have since been acquired and three were bridged, Union Bank survived the storm.”

He concluded that Union Bank has finally retained its position as the Best Performing Bank in Nigeria under the CBN-managed Agricultural Credit Guarantee Scheme Fund (ACGSF) and the bank has awards to that effect.
BusinessNews

Concerns linger over Jonathan, Tambuwal’s relationship

by: AUGUSTINE AVWODE

Tongues have been wagging about the relationship between the nation’s number one citizen, President Goodluck Ebele Jonathan, and the Speaker of the House of Representatives, Honourable Aminu Tambuwal. The insinuation is that between them, there is no love lost.
The position has been fueled by recent developments, particularly, the absence of the Speaker from the Independence Day celebration ceremony in Aso Villa, Abuja, on Monday.
Besides, the hard-line posture of the House in respect of the 2012 Budget, and its threat to institute impeachment proceedings against the President on account of alleged poor implementation of the said budget is seen as a direct fallout of the frosty relationship between the two chieftains of the ruling Peoples Democratic Party (PDP).
Today, the House has indicated that, despite the communication from the President that he would be willing to present the outlay of his fiscal plan for 2013 today, it would be unwilling to receive the budget.
Last week, the House rejected the request and hinged its decision on the conflict between the President’s date and the time frame the lower chamber set for oversight of projects executed by Ministries, Departments and Agencies (MDAs). The President had written to inform the two chambers of the National Assembly of his plan to present the 2013 budget today. However, House spokesman, Honourable Zakari Mohammed, declared soon after, that the lawmakers would not be available to receive the President.
In his words: “We are going on oversight and will not be back until October 9.” He stressed that the House would not accept the 2013 Budget until it was satisfied with the implementation of this year’s budget. The House had projected that it would begin oversight of projects by the MDAs from on October 1, to ascertain claims by them of what they have done so far. Zakari dismissed the insinuation that the House’s decision not to receive President Jonathan was in furtherance of the rift between the House and the Executive, saying “There is no rift between us. It is purely on the ground of what I told you.” Instructively, the House accepted the medium-term budget sent by the Presidency after a meeting with the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo Iweala, two weeks ago. Media Adviser to the Speaker, Alhaji Imam Imam, told The Nation yesterday that there is no truth in the insinuation that the relationship between the President and the Speaker is frosty. He attributed the failure of the Speaker to be present at the Villa for the Independence Day ceremony to flight logistic.
“There is no iota of truth in that insinuation or speculation. How can people make a mountain out of a mole hill? The Speaker was in Abeokuta on Sunday to commiserate with the family of the late Lateef Adegbite, after which he attended several meetings in Lagos. But he made it clear that we must depart Lagos by the first flight, probably by 6 a.m. But then, because of logistics problems in the arrangement, he was delayed. He quickly got in touch with the Deputy Speaker to represent the House as an institution. Those who are peddling this rumour, don’t they know what protocol is about? How would the Speaker just walk into an arena when the President, Vice-President and the President of the Senate were already seated?”, Imam asked.
He pointed at the appointment of the Speaker to head the Presidential Committee to dialogue with Saudi authorities over the detention and deportation of Nigerian female pilgrims last week as a testimony that both leaders are matured enough to realise that Nigerian interest must not be made to suffer at any point in time.
He asked rhetorically, would the President appoint the person he is not in love with into such a committee?
Tambuwal was named chairman of the Presidential Committee saddled with the responsibility of dialoguing with the Saudi authorities to resolve the issues that led to the detention of over 1000 Nigerian female pilgrims. The Secretary to the Government of the Federation (SGF) Senator Anyim Pius Anyim announced the Committee. However, Imam said the insistence of the House to ensure compliance with the implementation of the budget is a matter of principle. And that any rational thinking Nigerian should not fault the House. “I don’t speak for the House, but you must allow me say that the issue of budget implementation has been a major bane for all administrations in this country and if the House says we can’t continue like that, I think we should listen to them than say it is a way to run down the executive or a fall out of the relationship between two people. It is the welfare of Nigerians that is at stake, I hope we all know that. As far as I know, there is no personal grudge between these two eminent Nigerians. And I want to crave the indulgence of Nigerians not to give mischief makers room to flourish in our body politics”, he explained.
Political observers, however, hold that there may be more to the scenario playing out than meet the eye. A PDP chieftain from one of the Southwest states who craved anonymity, alleged that notwithstanding the explanation anybody may give to the goings on, it is clear that all may not be well and that something is “seriously amiss”.
“Let’s face it, if the President of the country has written to inform the National Assembly of his intention to present the 2013 budget to the National Assembly, it is the height of disrespect to declare that we are not going to welcome him. Yes, the President has an option not to go and just send an aide, but if I were the President, I would go and let the people judge if their decision to shun the President is good judgment or a bad one. Let them mend their fences and give the people good governance and dividends of democracy”, he stated.
In like manner, another chieftain of the party from one of the Southsouth states fingered the politics of 2015 as “the factor stoking the fire”.
He told The Nation, while asking not to be named, that “permutation about what will happen in 2015 is driving the body language of these politicians. We are not deceived. We all know what is happening and you also know the way the Speaker emerged, he was certainly not the choice of the party leadership but once the opposition parties, in a bid to assert their relevance, decided to play a major role in the election of the Speaker, the PDP leadership lost it.
“I think they still regard that development as a slight, if not really anti-party on the part of the Speaker. But even at that, subsequent efforts to douse the tension have not met with any success. If the House raises an issue over the implementation of the budget, and the party and presidency reaches out to the House leadership, I think the House should sheathe its sword. Look at last month, there was an alarm that a grand plan to impeach the Speaker had been uncovered. And naturally, heads will turn in the direction of the presidency. All this further heat up the polity and I think the party has a role to play in calling seemingly big members of the party to order for peace to reign. The party should be supreme and whatever it decides should be final”, the party chieftain said.
Recently, it was alleged that the leadership of the PDP, purportedly acting in concert with the Presidency, wanted to impeach the Speaker over the handling of the bribery allegation against former chairman of the ad-hoc subsidy probe committee, Honourable Farouk Lawan.
It was alleged that the way the House handled the matter was not pleasing to the powers that be and that the development presented a veritable platform to deal with the Tambuwal ‘headache’ once and for all. Tambuwal, branded in some quarters as Opposition Speaker, is said to be a thorn in the flesh of the Executive. In May, he openly disagreed with President Jonathan at the 2012 Democracy Day National Symposium on the concept of Separation of Powers and budget preparation.
There is also the allegation that the Speaker’s popularity rating may be a source of worry in some quarters. This, according to political analysts, may not be unconnected with his resolve to always be on the side of the people. On several occasions, Tambuwal’s leadership has been brave enough to confront the executive.
Recently, the President and the Central Bank of Nigeria (CBN) were forced to suspend their plans to introduce the N5000 note and coin some denominations which was popularly opposed by the people. But it was not only the House that made that possible. The Senate was even more critical in its criticism of the project.
Tambuwal, who represents Kebbe/Tambuwal Federal Constituency of Sokoto State, emerged as the Speaker against all odds. In June last year, the leadership of the ruling party was humiliated as members of the 7th House of Representatives defied its directive on zoning and elected Tambuwal as Speaker and Emeka Ihedioha (PDP, Imo) as Deputy Speaker. The duo were elected in the presence of the then Acting National Chairman, Alhaji Haliru Mohammed Bello, former BOT chairman, Chief Tony Anenih, Anyim and some state governors.
They include former Bayelsa State Governor, Chief Timipriye Sylva, former Kogi State Governor, Ibrahim Idris, Zamfara State Governor, Abdul Azeez Yari, Bauchi State Governor, Isa Yuguda.
Their presence in the gallery did not deter the lawmakers from going ahead with their ‘plot’ as they successfully jettisoned the party’s decision and picked candidates of their choice.
Tambuwal beat his only challenger, Hon. Mulikat Adeola-Akande from Oyo State who happened to be the PDP anointed candidate by 252 to 90 votes in an election that lasted for almost four hours, while Ihedioha was elected unopposed.
On that day, Tambuwal and Ihedioha who belonged to the same camp, disguised their dressing by wearing what they were never known or associated with in terms of dressing code. It was learnt then that it was to avoid being arrested in connection with an alleged N10 billion loan scam for which former Speaker, Dimeji Bankole was being held then by the Economic and Financial crimes Commission (EFCC).
While Tambuwal who is known for his flowing Babariga was dressed in a pair of suit and a bowler cap to fit, Ihedioha noted for his Ibo traditional attire with his green cap chose to dress in a white agbada and mallam-like cap.
After the result was announced by the Clerk of the House, the new Speaker was immediately sworn in. His landslide victory forestalled further election for the position of Deputy Speaker as Hon. Dogara Yakubu and Ishaku Bawa who were also gunning for the position of Deputy Speaker withdrew, thereby clearing the coast for the emergence of Ihedioha without a contest.
In his acceptance speech, Tambuwal said the House was the House of the people and they had spoken through the election of the two of them.
But many Nigerians who have been curious may want to know exactly where to put the relationship between the President and the Speaker.
The Nation

S/African Firm Buys 63% Of Dangote Flour For $188m

  BLESSING ANARO WITH AGENCY REPORT

Aliko Dangote yesterday sold 63 per cent of Dangote Flour to South African consumer goods firm, Tiger Brands in a deal worth $188 million, brokers said.
The sale of 3.1 billion shares on the Nigerian Stock Exchange(NSE) was done at N9.50 ($0.06) per share, after regulators’ approval last month.
The deal is Tiger Brands’ third and its biggest yet in Nigeria, which is seen as a growth area for consumer and food products.
The billionaire’s holding firm Dangote Industries Limited, will retain a 10 per cent stake in the flour mill after the shares of Dangote Flour were trading flat at N8.59 on the floor of the  Nigerian Stock Exchange(NSE), as brokers said the deal had already been priced in.
BusinessDay, South Africa, said Tiger Brands, which bought a controlling stake in the Nigerian pasta, noodle and flour manufacturer, Dangote Flour Mills (DFM), this week, has capacity for further acquisitions and was looking at more opportunities on the continent.
“Even after the Dangote transaction, Tiger has a strong balance sheet with capacity for further appropriate acquisitions,” said company secretary, Ian Isdale.
Tiger Brands, SA’s biggest food manufacturer, which owns All Gold, Tastic and Beacon, is focusing mainly on the African continent, but will look at meaningful opportunities in Latin America, where it already has business interests in Chile, Isdale said.
The deal with DFM, which forms part of the business empire of Africa’s richest man, Aliko Dangote, may bring more than just financial benefits to Tiger. A successful business relationship with Dangote, who runs sugar, flour, freight and cement businesses in a number of African countries, may provide Tiger with further business opportunities on the continent.
Dangote, whose net worth is estimated at $11.2 billion by Forbes will retain a 10 per cent stake in DFM and the right to appoint two directors.
The facilities at DFM, with a 30 per cent market share in flour and 40 per cent in pasta in Nigeria, is “world-class” and no significant investment will be required to improve operations, Isdale said.
“The key challenges in Africa are securing appropriate supply chains for both inbound and outbound logistics and ensuring that the products meet the appropriate consumer needs of both price and quality,” he said.
Leadership

Nigeria needs accountable leaders – Cleric

BY OLAYINKA LATONA
The Chairman Board of Trustees of Yaba Baptist Church, Deacon Depo Tade has said that the way forward for Nigeria was the enthronement of a formidable and accountable leadership which must be responsible to the citizens.
Tade who made the remark at the beginning of  the 70th year anniversary of Yaba Baptist Church lamented that despite various natural and human resources that abound in the country, majority of Nigerians are wallowing in poverty.
Tade, however, urged leaders to prudently tap and manage the county resources in the interest of the people, adding that the governors have to develop policies that favour the people.
The chairman of the anniversary planning committee, Dr. Mike Dare said the church has not only been in the vanguard of propagating the gospel of Christ but has also imparted immensely into the society.
Vanguard