Pass Bills That’ll Be Impactful On The Economy – Elumelu tells National Assembly

Chairman of UBA, Tony Elumelu, has called on the National Assembly to pass progressive bills that will impact positively on the economy, following Nigeria’s exit from recession.

He said, “We need the system to work by itself. We need to hold the National Assembly accountable.
“We need to encourage the National Assembly and hold them accountable. We need the National Assembly to help us pass progressive bills to help our country.”
Elumelu, who is also the chairman of Heirs Holding Limited, made the call in Abuja shortly after he was conferred with the Fellowship of the Nigerian Economic Society at the 58th annual conference of the society.

He was honoured alongside the Emir of Kano, Muhammadu Sanusi II, and Prof. Essien Okoh of the University of Benin.

Elumelu noted that there were a lot of policies that needed legislative approval to unlock the potential of the economy.

He cited the creation of the Asset Management Corporation of Nigeria through legislation as an example of what good legislation could do.

Elumelu also urged the Nigerian Economic Society to come, with recommendations to the government that would help reposition the economy on the path of recovery.

Also speaking at the event, Sanusi said certain decisions, which had been taken in the past, were still having adverse consequences on the economy.

For instance, he stated that the constitutional provisions that made it mandatory for each state to have a minister, as well as a certain number of legislative seats at the federal, states and local governments, were not necessary.

According to the emir, this political structure comes with huge financial burden, and this is why the government had huge amounts as overhead expenses.

He said if the government did not address some of the social and political issues, the country was not likely to experience the growth it desired.

Bag Of Rice Now Cost More Than Our Minimum Wage – NLC

Chairmen of the Nigeria Labour Congress (NLC) Anambra State beanch, Jerry Nnubia, lamented this morning over the economic situation of the country saying a bag of rice now cost more the N18,000 being paid to them as minimum wage.


The labour leader wants to know why workers should be victims of an economic downturn when they are not remembered in times of economic prosperity.

Speaking at a rally in solidarity with Nasarawa workers who were allegedly brutalised by the police while protesting the reduction of their wages by the state government on July 29, he said that any governor who could not pay salaries should resign.

He said, “Why should workers be victims of every economic doom? When we have economic boom nobody remembers workers,” he said.

“Our position is that any governor that can’t pay workers’ salaries should resign. Why haven’t the governors sliced their wages and those of their aides?

“We are here today to show solidarity with our members in Nasarawa state who were killed and injured by overzealous policemen at the gate of government house, Nasarawa for opposing a slice in their salary by the state governor, Tanko Al-Makura.”

The Anambra NLC chairman said it was laughable that salary paid when a bag of rice was sold for N9, 000 is the same salary being paid now that the price a bag of rice has risen to N23,000.
“A bag of rice today is N23,000 or more and their minimum wage is N18,000. This is laughable,” he said.

Mobile Money Holds Huge Potential In Ghana

Mobile money started off in Ghana tottering on the brink of little hope it will gain popularity among the public. While the promoters, mainly the mobile telecom operators, touted its potential, especially drawing on Kenya’s huge success story with the service, critics maintained that the geo-economic and demographic differences between the two countries were poles apart for Kenya’s succes to be replicated in Ghana.

That notwithstanding, mobile money started with Airtel’s (then Zain) launch of Zap in February 2009 and later followed by MTN in the same year. As of 2012, the transaction value of Mobile money was GH¢171million.

Fast forward to today, not even the most avowed doomsday prophet will stand by his words – as there are now 21,721,814 number of wallet holders with GH¢11.6 billion value of transactions carried out – the landscape has changed and the perceived bleak future of mobile money has given way to a bright and prospective story of hope, unspeakable success and more room for improvement.

Mobile money gather momentum

Patronage of mobile money continues to gain momentum, as the value of transactions for the third year running saw an astronomical jump, from GH¢2.4 billion as of 2013 to about GH¢11.6 billion in 2014, according to the Bank of Ghana (BoG). This means the number of transactions has almost quadrupled since 2012; from 30 million to about 106.4 million in 2014.

Registered mobile money customers have also increased from 3,303,837 in 2013 to 5,424,650 in 2014, representing a 64- per cent increase, while the total number of subscribers also increased from 20,346,016 in 2013 to 21,721,814 in 2014.

The Head, Research and Communications at the Ghana Telecoms Chamber, Mr Derek B. Laryea, said mobile money holds huge potential for the country, especially should the current trend continue.

The service, he said, had already proven to be viable and sustainable, as awareness had increased and additional payment options now being developed by the day.

Growth in the service is expected to contribute to economic growth because it offered convenience and consumer protection, while lowering the risks inherent in the informal economy and widespread use of cash.

Mr Laryea, speaking in an interview with the GRAPHIC BUSINESS, said mobile money would also act as a catalyst for formalising the economy and enable the government to have a broader view of transactions.

Mobile money not replacing banking

Although the mobile money revolution has been a little litargic in Ghana compared to Kenya, the former’s approach was to make the mobile operators carry their transactions on banking platforms (within the banking sector). In the case of Kenya, the telecom companies had the liberty to create wallets on their platforms and only partner with banks by choice.

It is only recently that the BoG issued new user guidelines which give the mobile money outfits of the various telecom companies some autonomy from their banking partners.

Under the new guidelines, the mobile money operators would be required to go for new licences that would make them independent financial institutions rather than just departments of the respective telcos.

The mobile money licences which were issued to banks to partner with the telecom companies will now be issued directly to the mobile money operators, and they will use the banks only as deposit agencies.

The mobile money brands will become separate financial institutions registered under different names but still owned by the respective telecom companies.

A banking consultant, Nana Otuo Acheampong, also in an a separate interview, said mobile money was filling the gaps in the banking sector but not replacing banking.

“It will be economically suicidal for any bank to open a branch in a community of about 500 people whose major source of income is farming. Mobile money has, therefore, come to provide people in such communities a platform to send and receive money,” he stated.

He believed this was why people living in especially the rural areas had embraced the transfer of money through mobile networks since it was introduced in 2009.

He said mobile money had helped people living in urban areas to transfer funds to friends and families with ease within and outside their communities.

Mr Laryea, commenting on this, said mobile money was complementing banking and not competing with banking.

“Banks will continue to be banks while telcos will play their role as telecom companies. Thanks to the rigorous supervision of the regulator and the new Electronic Money Issuers (EMI) and Agent Guidelines, both sectors can play their respective roles and complement each other”, he stated.

Mr Laryea said banks, however, still had a major role to play while the mobile money industry also had its role in the Ghanaian economy.

He believed there was enough room for both to co-exist as banks generally relied on traditional ‘brick & mortar’ infrastructure which creates a struggle to serve low-income customers profitably, particularly in rural areas.

“Mobile money can be seen as a cheaper option of expanding traditional banking to the unbanked using devices that are already in the hands of consumers”, he stated.

Source: Graphic.com.gh

Ghana Rated Best Place To Buy A Fairly Used-Cars At A Reduce Prize

Ghana has been rated as the most price-friendly country when it comes to buying a used-car in Africa, despite the high rate of import duties and an unstable currency.

The average price of a used-car in Ghana is US$17,654, making it cheaper than Senegal’s US$18,923, Congo’s US$25,093, Cameroon’s US$29,598 and Rwanda’s US$34,259.

Carmudi, an online vehicle market place with offices in about 20 countries worldwide, analysed about one thousand used-cars listings in order to find out how much consumers are spending on used vehicles globally.
The study looked at used-car models aged 2008 to 2013 to provide insights into price differences across Carmudi countries.

The number of vehicle registrations doubled year on year between 2000 and 2010. During that period, Ghana’s economy grew at an annual rate of six percent. The current growth in car sales in the country stands at a total of 0.6 percent.

With the most competitive car prices in the region and significant economic growth, the study revealed that Ghana is experiencing positive developments in car sales.

The study attributed the boom in used-car sales to the country’s political and economic stability, saying: “Both Senegal and Ghana are rare examples of political and economic stability in an otherwise unstable West Africa. This translates into a positive environment for auto commerce.

“This domestic stability means that in Ghana, despite minor inflation problems, car dealerships will continue to be a major import industry for years to come.”

The study also revealed that buyers increase demand as they have extra income or can find lenders for car purchases to locate their dream vehicle. It said auto dealers are able to keep prices low for consumers due to predictable import duties.

Aside from a positive political and economic climate, resulting in competitive car prices, the purchasing experience too can be made better through new methods of online browsing and sales.

“With our website and mobile app, we see ourselves as providing an enhanced purchasing experience for buyers throughout Asia. With us, buyers are able to easily compare prices and find the best deal for them,” Kobina Amoo, the Managing Director of Carmudi Ghana said.

Source: B&FT
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Devalue Naira, IMF Urges Nigeria

1000 Naira Note

The IMF is pressing Nigeria to further devalue its currency amid uncertainty over the political and economic outlook for Africa’s biggest oil producer and economy a news agency has reported.

The report quoted Antoinette Sayeh, the International Monetary Fund’s Africa Director who had alleged that restrictions placed on 41 items access to foreign exchange was “quite detrimental saying that in Nigerians they “are already making it harder for the average person to buy milk,” at the IMF annual meeting that ended in Peru two weeks ago.
But Mrs Antoinette Sayeh openly avoided Nigeria reporters who asked her to name one country in the world that export crude and import refined products. She was also not forth coming when asked to name one country that would import anything that could be produced locally. Her assertion that it was becoming difficult for Nigerians to buy milk in the open market did not go down well with those who are familiar with the Nigerian situation at the Africa region press briefing. She called for a review of the restrictions and for officials to “permit the exchange rate to continue to adjust.”

Nigeria’s Central Bank devalued the naira by 8 per cent in November and then fixed the official exchange rate at N198 to the dollar, though it sells at N222 at exchange bureaus. The Central Bank has defended the naira by restricting access to foreign currency for 41 items that could be produced locally.

The International Monetary Fund IMF at the same annual meeting said that Exchange-rate devaluation which countries normally use during financial crisis could cause adverse effect on countries economy. In its World Economic Outlook released in Lima, Peru, it said: “Exchange-rate depreciation has generally been a useful buffer for countries experiencing growth slowdowns – and has already been substantial – but could cause adverse balance-sheet effects where there is foreign-currency borrowing”.

In his opening remark at the World Economic Outlook Press Conference Mr. Maurice Obstfeld IMF chief economist said “No single set of policy prescriptions is suitable for every country seeking to improve growth performance or build resilience.”

Source: Vanguard

President Muhammadu Buhari To Run Oil Ministry

President Muhammadu Buhari has said he intends to remain in personal control of the oil ministry as he pursues an anti-corruption campaign.

He won elections in March partly on his tough stance on corruption.

He has vowed to trace and recover the “mind-boggling” sums of money that have been stolen from the oil sector.
Oil exports account for around 90% of Nigeria’s foreign currency earnings and because of low oil prices, the country faces tough economic challenges.



Mr Buhari, who took office at the end of May, is expected to announce his cabinet in the coming hours.

Over the last four months, he has been dealing directly with the top civil servants, who run the ministries.

He has already split the state-owned NNPC oil company into two entities in a bid to tackle corruption.

Issue of trust
The BBC’s Will Ross in Lagos says there had been plenty of speculation that President Buhari would put himself in charge of the crucial oil ministry.

He made the announcement at the UN General Assembly in New York, confirming that a junior minister would take care of the day-to-day running of the ministry while he took overall charge of cleaning up the notoriously corrupt sector.

The Nigerian leader said that in about 18 months he would consider whether to break up the NNPC further to improve efficiency and better root out corruption, Reuters news agency reports.

“We want to see what we have done in reducing the size and redeploying most of the management. We want to see the impact of that before we decide further,” he said.

In the 1970s and 1990s Mr Buhari held key positions in the oil sector so he has some relevant experience for the job.

Some of his biographical information
The 72-year-old is first Nigerian opposition candidate to win a presidential election

Military ruler of Nigeria from 1984 to 1985 until deposed in a coup

Poor human rights record during that time and a disciplinarian – civil servants late for work had to do frog jumps

Appointed petroleum minister in 1976 and then chair of the newly created NNPC state oil firm

Under Gen Sani Abacha in the 1990s, was chair of Petroleum Trust Fund that undertook development projects

A Muslim from northern Nigeria, he is seen as incorruptible

The president wants to recover stolen money and is also keen to ensure that those responsible for the looting end up in court, our reporter says.

Some analysts suggest he does not trust anyone else to do such an important job.

His list of cabinet appointees has be presented to the Senate for approval.