Saturday, 22 February 2014

National Conference: Our agenda, by Igbo, Yoruba, North, S/South

Vanguard News - Latest updates from Nigeria, including business, politics, entertainment, fashion, health, technology, naija lifestyle

By Clifford Ndujihe & Dapo Akinrefon
Confab-cartoonAFTER initial discordant tunes in some quarters, all sections and segments of the polity are now poised for the forthcoming National Conference. Leaders of the ethnic nationalities are taking the lead to fashion out water-tight agenda to be presented at the confab.
Main opposition All Progressives Congress (APC), which initially dismissed the proposed confab as diversionary and waste of scarce resources meant to boost President Goodluck Jonathan’s re-election agenda, has made a U-turn and indicated its readiness to partake in the dialogue.
APC National Leader, Asiwaju Bola Ahmed Tinubu, led a delegation to an expansive South-west leader’s meeting  on the confab, last week. Yoruba leaders at the meeting, held in Ogun State, agreed on a common agenda for the conference. Thereafter, other meetings were held in Lagos and Ibadan with the agenda remaining similar.
Ekiti State Governor, Dr Kayode Fayemi, said the APC states resolved to take part in the conference to protect the interests of their people especially when Jonathan had declared that the Federal Government would nominate delegates for states that fail to do so. Each of the 36 states is expected to nominate three delegates.
Indeed, in the line with the APC change of heart, Kano State governor, Dr Musa Kwankwaso, who recently defected to the APC from the Peoples Democratic Party, PDP, weekend, nominated three prominent indigenes of the state as delegates.They are  Dr Junaid Mohammed, Malam Sule Hamma and Hajiya Aishatu Isma’il.
To firm up their agenda for the National Dialogue, Igbo leaders will meet in Enugu today. Holding at the Banquet Hall of the Governor’s Lodge at 12.30 pm, Igbo leaders expected at the parley include the five South-East governors, Igbo leaders in the National Assembly, ministers and political leaders of the  geo-political zone.
Meanwhile, the zone has picked a strong team of 30 men and women, whose names have been submitted to the Office of the Secretary to the Government of the Federation as  delegates to the confab.
Speaking on the issue, Ohanaeze Secretary General, Dr Joe Nwaorgu, told Sunday Vanguard that the apex Igbo socio-cultural organization picked 15 of the 30 delegates while the governors nominated the rest with each of the five states having six slots.
Asked about those nominated, he said that Ohanaeze President General, Chief Gary Igariwey, would disclose those on the list, adding, “The President-General has the prerogative to make the list public.”
However, he said that the delegates were chosen in consultation with Igbo organizations affiliated to Ohanaeze such as the South-east People Development Association, Aka-Ikenga, Izu Umunna, Igbo Delegates Assembly and Igbos in Diaspora among others.
“The heads of these organizations in consultation with us arrived at the list. Ohanaeze picked 15 delegates while the governors picked three delegates each ,” he said.
Igbo want restructuring, reparation for incessant killings –Nwaorgu
On the agenda of the Igbo for the conference, Nwaorgu said it is not different from what the Ohanaeze presented to the Senator Femi Okurounmu-led President Advisory Committee (PAC) on National Conference when it visited the South-east last October 27 and 29.
His words: “We are prepared for the conference and we are determined to make it succeed. The issues we want resolved include: the structure of government-presidential or parliamentary, fiscal federalism, devolution of power, resource control, citizenship right, security of lives and property, and reparation over the continuous killing of our people and destruction of their property.”
South-west seeks regional autonomy, devolution of power
At the various meetings, South-west leaders  agreed that the Yoruba federation should maintain its six-state structure with boundary adjustment for Ekiti in Kwara to join Ekiti State, Igbomina and Ibolo in Kwara to join Osun State.
They also proposed the Westminster parliamentary system of government, power devolution from the central to federating units, resource control and revenue allocation to be reviewed in accordance with derivation instead of being based on  total revenue accruing to the Federation Account.
Among others, the South-west is proposing that immunity for elected officials should be limited to civil cases only.
On policing, they want regional police to be given clearly defined roles and relationship with the federal police.
Souh-south seeks 50% derivation
The South-south geo-political zone, the chief revenue generator for the country, also wants restructuring, fiscal federalism and 50 per cent derivation. Currently, derivation is a miserly 13 per cent.
Most participants at the one-day South-south zonal conference on the National Dialogue held at the Cultural Centre in Calabar, the Cross River State Capital, last week, insisted that local communities and states where natural resources emanate should control their wealth by, at least, 50 per cent. They argued that if this singular issue is resolved, the national atmosphere would be convivial.
Some ethnic nationalities at the meeting included Ijaw National Congress, Oron Ethnic Nationality from Akwa Ibom State, South-south Peoples Assembly, South-south Peoples Forum, Efik Eburutu and Ethnic Nationality.
Governor Liyel Imoke, represented by his deputy, Mr Efiok Cobham, said: “On derivation, our position aligns with the that of the entire South-South states to the effect that the constitution be amended to read that a state on whose territory oil (or other natural resources) are extracted or found be entitled to not less 50 per cent of the entire proceeds from the exploration and exploitation.”
Still on control of resource, he said further:: “Solid minerals should be exploited by states where such minerals are deposited. Compensation should be paid on monthly basis for game reserves and forest conservation as the owners have lost their means of livelihood which is predominantly farming.”
Another point of their emphasis was that the outcome of the conference should never be subjected to scrutiny and review of the National Assembly as proposed by Jonathan as that would  defeat  the essence of the national discourse because members of the National Assembly would alter the resolutions of the conference.
For the outcome not be challenged and seen to be lacking in law, the people proposed that there should be an Executive Bill to the National Assembly  to enact enabling law to legitimately back up the National Dialogue.
Another proposal curtailing  “the over-reaching powers of the federal government” and making the central government more accountable to the federating units over the handling and management of the nation’s financial outlay. “Powers should therefore be devolved even as the Executive legislative list be reviewed in order to transfer certain matters to the Concurrent List.”
Senator Florence Ita-Giwa canvassed compensation for Bakassi people for the loss of their ancestral homeland and another deeper look into how the Bakassi Peninsula was was ceded to Cameroon. She also said called for 50 per cent affirmative action for women
Northern govs adopt 30-point agenda
The North is also not left out of the preparations. Apart from the enlarged Arewa Consultative Forum (ACF) last week, the 19 northern states articulated a 30-point for the conference at  that  their two-day meeting concluded in Kaduna on Tuesday.
The meeting was part of the governors’ legwork to ensure that the North speaks with one voice at the conference.
Speaking  on the agenda, Governor Babangida Aliyu of Niger State said the northern governors took a bold step at their just concluded meeting in Kaduna on the points to be presented at the conference and assured that the points would not in any way tamper with the unity and development of the country.
“In our last meeting, we took a principled position to send our best and experienced people to the conference and this will include those who will be able to defend and discuss the issues without fear or favour but which will not tamper with the unity and development of the country,” the governor remarked.
The adopted points to be presented at the conference include fiscal federalism, structure of government, state police, labour matters with regards to wages and salaries, with emphasis on whether salaries should be uniform or based on the financial capability of each state, electricity as a major weapon of economic growth, especially on whether states should be allowed to generate power independently.
Other points include tenure of president and governors, devolution of power, traditional institutions, immunity clause for governors and president, independence of the legislative arm and the judiciary, onshore and offshore dichotomy, resource control.
There are also social security, including health, housing, electoral law which include how elections should be conducted, system of government — presidential or parliamentary, security, creation of more states and local governments and transformation of the agricultural sector as the mainstay of the northern region.





Subsidy and the alleged missing billions

Vanguard News - Latest updates from Nigeria, including business, politics, entertainment, fashion, health, technology, naija lifestyle

By Chinwoke Akoma
The Senate Finance Committee sitting on alleged missing N20billion dollars had a lot of interesting testimonies. From the initial accusations by the suspended CBN Governor, Mallam Lamido Sanusi, to the clarifications by the various government agencies,facts are out in public domain which have enlightened the public on the issue.
For example ,Nigerians now know that the allegation that kerosene subsidy is illegal is  no longer sustainable . This is because the so-called presidential directive stopping subsidy was discovered to be contradictory and unimplementable by the then Petroleum Minister Rilwanu Lukman . It also came to the fore that there is truly subsidy on kerosene but the impact is not  being  felt because of the high demand in the face of low supply. Nigerians also now know that by virtue of the Petroleum Act ,the oil corporation has the power to incur expenditure.
Many more facts came out including the fact that nobody is ready to withdraw subsidy on kerosene as even the Senate Committee asked the executive arm to make request through supplementary appropriation. Even at that, the hearing was confronted with the reality of a provision of the Petroleum Act which empowers the Minister of Petroleum Resources  to fix the prices of petroleum products. The plan for an independent audit was also unimplementable because the responsibility is statutorily that of the Auditor General of the Federation.
The Senate sitting had opened with a  theatrical drama by the suspended CBN Governor. He anchored the missing N20billion on the argument that there is no subsidy. But events have proved that there is indeed subsidy ,leading to the new reality that the so-called missing money was spent on kerosene subsidy. If Sanusi had succeeded in proving that a presidential directive  stopped subsidy,he would have also triumphed in claiming that the N20billion dollars was illegally spent . On both counts,Sanusi failed as several documentary evidence confirmed.
N5,000 NOTE: Mallam Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria, CBN (right) and CBN Deputy Governor, Serah Alade, at a briefing on the introduction of N5,000 note, with image of three Nigerian women, to be introduced in 2013, in Abuja. PHOTO: Gbemiga Olamikan.
File Photo: Mallam Sanusi Lamido Sanusi, fmr Governor, Central Bank of Nigeria, CBN (right) and fmr CBN Deputy Governor, Serah Alade. PHOTO: Gbemiga Olamikan.
First, Lukman, in his capacity as Petroleum Minister, was obviously unable  to implement  this directive as the inherent contradiction in the directive was at variance with a fundamental and critical requirement of the Petroleum Act which requires  the issuance of a gazette. Specifically ,the directive contained a clause that said the subsidy removal should not be made public.
For the avoidance of doubt , the letter of the controversial presidential directive is to the effect that commencing from July 2009: “Eliminate existing subsidy on the consumption of kerosene, taking into account that subsidy payments by government, on kerosene do not reach the intended beneficiaries. Public announcement of this measure should be avoided”.Lukman refused to gazette the directive because of the contradiction . So subsidy continues especially after the violent demonstrations of 2012.
The other thing is why the high prices of kerosene despite subsidy? The President of the Independent Petroleum Marketers Association of Nigeria, IPMAN,  Alhaji Aminu Abdulkadir, said the problem has to do with high demand versus low supply as the quantity  subsidised is not sufficient to meet the needs of kerosene users. Said he: “About 7 to 10 million liters  are supplied  but our national consumption today is about 15 million liters. There is a shortfall in supply, hence people think the subsidy is not reaching the people. There is subsidy”.
The management of the Nigerian National Petroleum Corporation  (NNPC) also said that diversion of kerosene to neighbouring countries, industrial use, aviation fuel, sharp practices by middlemen and pipeline vandalism are reasons kerosene is not readily available for domestic consumption. Group Managing Director of the corporation, Engr. Andrew Yakubu, made this disclosure during the two-day investigative public hearing on supply, distribution, expenditure and subsidy on kerosene.
Yakubu maintained that due to a number of issues ranging from incessant pipeline vandalism and diversion of the product to road construction, the product, meant for the masses, is not readily available. “There are quite a number of competing demands for kerosene and until these are addressed by other relevant agencies, the issue of kerosene not being readily available for domestic use will continue to reoccur every now and then.
The way out is for this committee to collaborate with the NNPC to encourage the sale of liquefied petroleum gas otherwise known as cooking gas,” the NNPC boss  said.
Responding to a question on whether kerosene subsidy is still in place, he said that was exactly what he met when he assumed office in June 2012, adding that kerosene subsidy is funded by unrealizable revenue flow. “The NNPC takes crude at international price and sells it at the domestic market at regulated price of N50 per liter,” he stated.  Answering a question on what the NNPC is doing to stop kerosene diversion, the NNPC helmsman said that the Corporation does not have the power to police marketers and sanction them, adding that there are statutory bodies with the responsibility.
Commenting on the legality of kerosene subsidy, the NNPC Company Secretary, Anthony Madichie, citing Petroleum Act section 6 subsection 1, said only the Minister of Petroleum Resources has the authority to fix petroleum product prices, stressing that if a presidential directive is given and not gazetted, such directive will not be effective.
In his submission to the committee, the Managing Director of the Pipelines and Products Marketing Company, PPMC, a subsidiary of the NNPC, Prince Haruna Momoh, informed that kerosene is sourced for the Nigerian market through importation and domestic refining, adding that dual purpose kerosene (DPK) is sold to coastal marketers, Major Marketers Association of Nigeria, MOMAN, Depot and Petroleum Products Marketers Association, DAPPMA and NNPC Retail.
“I can confirm to this committee the statistics for the supply of DPK is as follows. In 2010, NNPC supplied 2,515,582.44 metric tonnes of DPK, in 2011, NNPC 1,922,263.56 metric tonnes, in 2012, NNPC supplied 2,622,843.20 metric tonnes and in 2013, NNPC supplied 2,671,747.97 metric tonnes making a total of 9,732,437.17 metric tonnes,” Momoh revealed.
Marketers also supplied further statistics on the existence of subsidy.The price regime of DPK ex-refineries/depots in Nigeria is at N40.90k/litre, NNPC sells DPK at its retail outlets for N50/litre. If the PPPRA template is taken into account, DPK is expected to have a landing cost of N130/litre leaving a gap of about N80/litre which is a cost element to NNPC and the tune to which DPK is subsidized for the populace.
Demand versus supply
The question ‘where does the subsidy go?’ then arises. The total demand for DPK across all sectors by far outweighs the supply available nationwide thus leading to a shortage of the product and a resultant increase in the equilibrium price. This is the major reason the subsidy though enormous is not being felt by the populace.
Another  major development is a submission which went a long way to settle many contentious issues affecting a subsidiary of the oil corporation.
The Attorney General of the Federation and Minister of Justice, Mohammed Bello Adoke, said the  NNPC can legitimately transfer its participating interest in oil mining leases (OML) to its wholly owned subsidiary, the Nigerian Petroleum Development Company,NPDC.
The AGF provided the legal position during the investigative hearing of the Senate Committee on Finance on the alleged unremitted $49.8bn oil revenue in respect of the status of $6bn NPDC gross revenue which Sanusi  had alleged should have been remitted to the Federation Account by the NNPC.
Adoke informed  that by virtue of paragraph 14 to 16 of the First Schedule of the Petroleum Act, CAP.P.10 Laws of the Federation of Nigeria, LFN, 2004 (NNPC Act) and Regulation 4 of the Petroleum (Drilling and Productions) Regulations 1969 as amended, a holder of an OML or Oil Prospecting License (OPL) can assign its interest provided the consent of the minister of petroleum resources is obtained.
On whether all revenues derived by the NNPC from upstream operations including those under which OMLs in the JV operations are payable to the Federation Account, the minister posited that NNPC is generally under an obligation to remit its revenue from the upstream petroleum operations into the Federation Account.
According to him, this is, however, dependent on the definition of ‘revenue’ within the meaning and intendment of section 162 (10) (c) of the constitution of the Constitution of the Federal Republic of Nigeria 1999 (Constitution) saying that the NNPC can by virtue of section 7(4) of the NNPC Act defray all expenses incurred in the course of its business in the upstream operations.
The AGF stated that the NNPC is required to pay into the Federation Account the ‘net revenue’ as opposed to the ‘gross revenue’.
Meanwhile, IPMAN has warned that kerosene subsidy removal was capable of bringing down government even as it denied reports that it bribed officials of the petroleum ministry and the oil corporation on  allocations.
Speaking in Abuja ,the National President of IPMAN, Alhaji Aminu Abdulkadir, said the bribery allegation  was part of  the plot to politicise the oil sector ,stressing that “any removal of subsidy is a ploy to instigate  uprising against government as kerosene subsdised the cost of living for the poor.
The IPMAN leader said those plotting to derail the Jonathan presidency are the ones behind the push to withdraw kerosene subsidy which he said would impose further hardship on the poor,canvassing that “subsidy should remain until LPG supply is sufficient to fill the gap.
”Until LPG is widely available,you cannot remove subsidy. If you do,it will bring social unrest. I strongly advise that subsidy should remain. I also call on the minister to call industry operators to order to put in more efforts into the provision of LPG. Part of the subsidy should be used to fund facilities for LPG”,he said .

My story, by Sanusi Lamido Sanusi

Vanguard News - Latest updates from Nigeria, including business, politics, entertainment, fashion, health, technology, naija lifestyle

By Gbenga Oke
In the beginning
As at the time I came into office, several things had collapsed. From banks to stock exchange, they had crashed. Inflation was at 15.6percent three months before I became Central Bank Governor; there was already instability in every sector of the economy. When I look back, I thank God for the people who supported us and criticized us as well because criticism has made us stronger. Also, when I look back, I can point to several things that have changed after our arrival and till date.
Keeping inflation down
For the first time in a long while, we have been able to keep inflation at about 7percent since January 2013 and it is still like that up till this moment. As far as instability and exchange rate is concerned, we have worked tirelessly to ensure things work out well for the economy.
We also introduced cash reduction in the system. Although most people didn’t like it because they felt it will add more problem to the exchange rate because people want to buy dollars but against all odds, the cashless policy has worked and it’s still working today.
sanusi-interview
*Sanusi
On the face-off between CBN and NNPC
On the face-off between CBN and NNPC, I must say that we are not EFCC. What I have been talking about is the areas that affect my job which have been a dwindling in the money that comes into the Federation Account. Let me make it clear, the disputed $20billion may be gone. And what some people want is the continuity of this; that stealing of public funds should continue.
On his suspension
I must say that there was no time when the CBN received any letter from the Financial Reporting Council of Nigeria. At no point were we given any letter to respond to over any financial allegations. Also, nothing in the letter declared that I did anything wrong. I can tell you that CBN does not operate the way it’s been presented because all facts and statements of account are there for everybody to see. They said we spent N1.2billion on the police – even if that is true, is that corruption? Did I set up my security outfit and pay myself?  I want to repeat that I have had my last day in office. I have achieved everything I set out to achieve. Looking at the suspension letter, I was not given the benefit of doubt to respond or explain myself.
Court order
However, I have a court order now enforcing my fundamental human right because once they seize your passport, you don’t know the next step they will take. I took an exparte motion to court to ensure I am not harassed.
On the allegation that he is partisan
When I was in King’s College, I was in Form 2 when Bukola Saraki came into Form 1. He has been my friend since we were 11years old. Also, El- Rufai has been my friend. I never knew I will be CBN Governor because I had wanted to study law, also Bukola Saraki never knew he would become a politician because he read medicine. These people remain my friends and, with all sincerity, every one of us has friends across political divides. These are things some Nigerians categorize and accuse me of being a politician. Also, I had known Governor Fashola and Bola Tinubu since I was in First Bank. I am a Lagos boy as well and my children were all given birth to and groomed in Lagos. When Nasir El- Rufai heard what happened, he decided to come to the Lagos airport so that if I am going to be arrested, it will be in the company of some of my friends. He never came to the airport as an APC member but as a friend. I am not a politician but people think I am one.
What next on NNPC
It is not my responsibility anymore but I can comment as a Nigerian. I can talk if I feel like. I believe nobody will challenge me that I did not speak out when I was supposed to as CBN Governor. If the next CBN Governor wants to pursue the missing funds matter or the National Assembly wants to go ahead, they are free of do so. Can you imagine a sitting Minister on national television saying they spent money without appropriation. In any other country, such minister has sacked herself. To  me, that is not financial recklessness.
Let me simply ask, if the Nigerian Constitution says don’t spend money without appropriation or says don’t pay subsidy and the Minister went ahead to pay, is it not a political problem? Technical problem is what we deal with at CBN, we deal with CRR and other issues.
In this kind of situation of investigation going on, you are supposed to either keep quiet as a wise man or walk away. But as you can see, I am not a wise man.
Donation of 100million
It is called principle of donation. During the Ikeja bomb blast explosion, the CBN Governor then, Joseph Sanusi, gave N10million. So I was not the first person to do that. This is contained under Corporate Social Responsibility. The blast in Kano did not affect  Kano citizens alone, SSS offices, police stations were attacked and these are federal offices which have several people from the South working there. I can tell you that 80percent of the victims of that bomb attack are not Kano citizens, there were several Christians from the South involved and I gave N100million to their families. What is bad in that? Why are people not complaining  about the N500million I compelled the Bankers Committee to give to flood victims in Benue State and other places? What is wrong in it? With CSR, you cannot do everything in all the 36states of the federation; you will do the little you can.
Mint printing!
This is one area that we have been able to cut down on spending. In 2012, CBN spent N38billion on mint printing down from the N49billion spent in 2011. In 2013, we spent N35billion and, in my 2014 budget, my plan was to spend N30billion. So we have been bringing down the cost of printing.
Under the Fiscal Responsibility Act of the CBN, we contribute 80percent into the Federation Account. In 2008 before I became Governor, CBN contributed N8billion into the Federation Account. In my last year, we gave N159billion. In 2012, we gave N80billion, in 2011, we gave N60billion. In the first four years of my term as CBN Governor, we gave government about N279billion. The National Assembly called  to commend me. We have been able to give N600billion from surplus alone and the money is made from prudent finance, cutting down currency expenses, every over headline has gone down. So I can say, with all sense of humility, that the last thing anybody can accuse me of is financial recklessness.

Thursday, 13 February 2014

Our prospects in 2014 may be brighter than expected


Our prospects in 2014 may be brighter than expected

By Dr. Ngozi Okonjo-Iweala on 11/02/2014

Let me begin by thanking His Excellency, Mr. President, and His Excellency, Mr. Vice-President, for their strong leadership of the government’s power sector reform programme. They truly prioritised this sector right from the start, based on the realisation that if we get power right, this country’s growth and development will accelerate. Today, I want to talk briefly about the economic environment in which we are operating, before moving on to talk about investment opportunities and financing instruments for our country’s power sector.

On the economic outlook for the country, let me just say that globally there are still some strong headwinds as uncertainty persists in the global economic environment. Our prospects in 2014 may be brighter than expected just three months ago, largely on account of some recovery in advanced countries that are our major trading partners like the US and the UK. Recent IMF projections suggest that advanced economies will now grow by 2.2 percent in 2014, which is slightly higher than its projection of 2 percent growth just last October, and also higher than growth of 1.3 percent in 2013. However, the IMF revised downwards its growth projections for advanced economies in 2015, and growth in major emerging markets like China is expected to slow down over the short-to-medium term, so we are not out of the woods yet.

In spite of this, Nigeria’s economic fundamentals remain strong. GDP growth remains robust at 6.81 percent in the 3rd quarter of 2013 and expected 2013 growth is still at 6.5 percent, even though we face challenges of inequality and inclusion. This strong growth is sustained by the non-oil sector which recorded 7.95 percent growth in the third quarter of last year, with strong performance from the Agriculture, Solid Minerals, and Housing and Construction sectors, as well as wholesale and retail trade. The IMF expects our economy to grow at 7.4 percent in 2014, which is one of the fastest growth rates in the world this year and is above our own projections of 6.75 percent growth in 2014. Inflation has remained at single digits of 8 percent as at December 2013, while the exchange rate though there have been relatively stable within 155 – 160 naira to the US Dollar range, though there have been occasional dips.

Our efforts to diversify our economy from dependency on oil, is unlocking the potential for growth and job creation in key sectors like Agriculture where various government measures are already being implemented, Solid Minerals, and the Housing sector, with the recent launch of the National Mortgage Refinance Company (NMRC) which will provide affordable mortgages for Nigerians. Work is currently underway to rebase our GDP, and with the current projected growth rate this could make our economy the largest in sub-Sahara Africa, within very few years.

Distinguished ladies and gentlemen, regardless of our current economic performance, our economy will not reach its full potential if we do not address the significant gaps in our infrastructure, particularly in power and transportation infrastructure. According to a joint World Bank and African Development Bank study, we are losing at least 2 percent of GDP growth annually as a result of our infrastructure deficit, and we need about US$ 14.2 billion per year to bridge the infrastructure gap with about $10.5 billion needed for federal infrastructure alone but current spending is only $5.9 billion. This is why the government developed the 30-year Nigerian Integrated Infrastructure Master Plan for accelerating infrastructure development in the country. With the aim of raising our stock of infrastructure from the current 35-40 percent of GDP to 70 percent by 2043, there is enormous potential for private investment.

While our government continues to play its part in infrastructure development, it also recognises the need for private sector support. So what are the prospects for the Power Sector? A brief comparison with other countries will highlight the opportunities. But before I get to that, it is important to understand that a wholesale privatisation of the magnitude we recently experienced in our private sector has never been experienced elsewhere, not even in South Africa that is constantly used as a yardstick. Given the absence of precedents or templates for comprehensive power sector reform before Nigeria’s, this administration has to be praised for overseeing an outstandingly transparent transfer and transition of power assets from government ownership and operatorship to fully privatised entities, with a focus on massive improvements in sales and collection efficiencies and quality service delivery.

Now back to our comparisons, as of 2013. South Africa has a population of 49 million and electricity consumption per capita (kWh per person) of 4222.46kWh, Egypt with a population of 83.6M has 1383.71kWh, even our neighbours to the west, Ghana with a population of 24.6M manages a per capita consumption of 248.33kWh. Meanwhile, Nigeria with a population of 170 million people has a per capita consumption of 103.81kWh. Our per capita electricity consumption is abysmally low and as you can see, there is so much room for improvement in Nigeria and by implication there is so much opportunity for investment with good returns.

Opportunities also exist for manufacturing of cables, transformers, poles and pipes, among other products to be used by the sector. In addition, the local content requirement being promoted by the regulator will drive manufacturing development further. The local manufacturing of meters is a case in point. On the services side, given the historical challenge of maintaining our power assets, an opportunity presents itself for companies who are able to offer asset management services to the power stations that have now been privatised; and much like we buy recharge cards for our mobile phones, opportunities will exist to have a similar system in the power sector, to make it easy to buy and pay for power at the retail level.

Market-wise, as the electricity market evolves, it is very clear that the most urgent need is in capital investment to ensure steady growth in the quantity of energy available to Nigerians. A number of power purchase agreements (PPAs) are being negotiated with an increasing number of independent power producers (IPPs) under the Bulk Trader scheme. For the moment, it is clear that these IPPs will not be delivering energy to the national grid before Q1 2017. This clearly indicates an urgent need to deliver energy immediately, using the mechanism developed by the Nigerian Electricity Regulatory Commission through its Embedded Generation Regulation framework.

Financing the assembly and connection or embedding of packages of 20MW or less directly to the various distribution networks, therefore, presents a major opportunity during the coming three to four years, one that promises the immediate alleviation of the biggest single challenge to the system today, which is the availability of energy for Discos to sell to its demanding customers, particularly industrial clusters that provide employment to Nigerians. This development also implies the urgent need to support the introduction of off-grid power systems, to serve remote populations of the country.

In that context, we look to improve Nigeria’s energy mix. As such, we need to develop our capacity for renewables and encourage investments in this area, particularly, solar power which is an ideal fit for remote areas of the north and waste-to-energy for some of our cities, which would eventually take care of the problem of inadequate power and poor waste management. What would drive all these lies in the fact that power is actually generated. It is for this singular reason that the Federal Government together with its multilateral partners is putting systems and processes in place to guarantee power sector investments.

We have strengthened power market intermediaries such as the Nigerian Bulk Electricity Trading Plc (NBET), with sufficient working capital to ensure its solvency and creditworthiness based on the payment risk exposure posed by each of the DISCOs. NBET is now cash-backed with over N120 billion (US$750m) in financing to help stimulate greater private investments in the sector, guaranteeing monthly payments to the generation companies in the unexpected event of distribution company non-payment. Note that I said “in the unexpected event”.

In addition, the Federal Government has also developed the Put-Call Option Agreement that guarantees protection of equity and debt. Our partners at the World Bank and African Development Bank, through their Partial Risk Guarantee programmes, are providing additional guarantee of over US$1.2bn in support of the Bulk Trader for investments in generation. The regulator is putting into place, a cost-reflective tariff that will provide adequate provision for CAPEX and OPEX funding. This Multi-Year Tariff Framework ensures that, in the event of any changes in its underlying economic and technical indices, the tariffs will be modified accordingly. The guarantees and the tariff framework will go a long way to improve the attractiveness and upside potential of the successor companies and other new investors in the sector.

As the Federal Government did recently by raising a $1bn Eurobond for the capitalisation of the Bulk Trader, transmission upgrades and gas infrastructure, Government is committed to using the instruments of the Federal Government to support the sector. Let me at this juncture mention some additional good news which is the transfer of US$200 million to the infrastructure window of our SWF, the Nigerian NSIA, from the Eurobond proceeds to enable it partner with the private sector on gas to power PPPs. We are anxious to lift the bottlenecks on gas supply and wish to use this to encourage some good solutions. The NSIA will also manage $350 million of the liquidity facility for NBET so you can see that we have positioned finance to truly support this sector.

I have spelled out the enormous infrastructure investment potential we have as a nation. I have also spelled out the Federal Government’s willingness to engage in certain types of guarantee mechanisms to spur the power sector alone and together with multilateral partners. You have a great opportunity before you. I sincerely hope we can work hard to enable you seize these opportunities.

•Being excerpts of a speech entitled ‘Nigerian outlook and global funding requirement for infrastructure development’ delivered by the Coordinating Minister for the Economy & Minister of Finance, Dr. Ngozi Okonjo-Iweala, at the International Conference on Private Sector Financing/Support for Power and Infrastructure Development in Nigeria (Nigeria Power Sector Investors’ Conference) held at the State House Banquet Hall, Abuja, February 10, 2014. Photo shows Okonjo-Iweala.

Wednesday, 12 February 2014

The African Redeemed Church of God preaches the gospel in US

BBC

The Redeemed Christian Church of God was founded in Nigeria in 1952, and is now spreading across North America

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For centuries, European and American missionaries have gone to Africa to spread the word of Christ. That trend is now working in reverse, with a Nigerian minister in Texas who plans to build churches as numerous as Starbucks coffee shops.
Drive an hour north-east of Dallas, and you will find yourself staring off into a barren, flat horizon. One out-of-place building rises above the landscape: a 10,000-seat auditorium.
It is the centrepiece for the Redeemed Christian Church of God in North America, a Pentecostal movement that started in Nigeria in 1952.
It is one of Africa's largest and most influential Christian movements, claiming more than five million followers worldwide, mostly in Nigeria.
Pastor James Fadele, who runs the Church in North America, said God told the Church's leader Enoch Adeboye that its North American headquarters would be founded near Dallas - but not where, and not when.
Pastor James Fadele stands in front of a church being built in Floyd, Texas"We want to plant churches like Starbucks," says Pastor James Fadele
Then, Fadele said, a white man in Texas had a vision.
"God told him, 'The land doesn't belong to you, it belongs to a group of church people,'" Fadele said. "'When you meet them, I will let you know who they are.'"
Fadele, a short man with a booming voice, said a few Redeemed Church members were eating at a local restaurant when they were approached by the white man.
The man told them God had asked him to buy a patch of land, but that the Church was the owner.
"They accepted it, they paid the check, and the rest, as they say, is history," said Fadele with a laugh.
A church being built on a field in TexasThe Redeemed Church plans to build a university, sports complex and golf course on its land near Dallas
That divine spot is Floyd, Texas, an unincorporated community with a population of 220. Church leaders have grand plans for the property, which now spans 700 acres (283ha): a university, sports complex, even a golf course.
Fadele radiates with excitement describing his vision for future events at the auditorium: "Crazy people for Jesus, people who are in love with Jesus, shouting 'hallelujah', praising Jesus, having prayer vigils, having fun, giving each other high-fives."
Fadele's goal is to establish a church within every 10 miles (16km) in North America, to take as many people as possible to heaven.
"Because heaven is real, God is real," he said. "And that is why we want to plant churches like Starbucks."
Exterior of the Redeemed Christian Church of God in Melrose, MassachusettsChurch leaders say this parish in Massachusetts is one of 720 in North America, nearly double from four years ago
At a recent Sunday morning service at a parish in Melrose, Massachusetts, just north of Boston, about 120 people were gathered, larger than the average Redeemed Church congregation. Once parishes start to gain much size, they quickly split to create more branches - the church's growth strategy.
Redeemed leaders say there are 720 churches in North America, nearly double from four years ago, and they claim 15,000 members in the US.
Ruth Marshall with the University of Toronto, who studies Christian movements in Africa and has studied the Redeemed Church, said its aggressive plans stem from its leader and guiding force, Enoch Adeboye in Nigeria.
"He really wants to be an important global player," said Marshall. "One could say that he's almost obsessed with this logic of church planting because for him it's an index of success. And also, prosaically, because the more parishes there are, the wealthier the central organisation."
Each pastor, she said, must send 20% of tithes, offerings and other funds to the headquarters in Nigeria.
The US - where Pentecostalism began - holds special appeal to Church leaders who believe in a manifest Christian destiny from Africa.
Churchgoers sing during a service in MassachusettsNearly all Redeemed Church members in the US are African immigrants
A woman sings during a church service in MassachusettsTo grow, the Church will need to reach more non-Africans
At the church service in Melrose, their passion for their mission was clear. People were dancing in the aisles, hugging, and breaking into conga lines. The public address system was cranked way up. People sang with arms outstretched and eyes tightly shut. The place was rocking.
These are Pentecostal Christians who believe strongly in faith healing and miracles and speak in tongues to connect with the Holy Spirit. There were young and old in attendance. Children were downstairs in their own service and toddlers were running around the lobby.
Nearly all Redeemed Church members in Massachusetts, as well as in most North American locations, are Nigerian or African immigrants. For the church to grow, they'll need a lot more non-Africans. That's proven challenging.
Marshall of the University of Toronto said the children of African-immigrant churchgoers are less interested in attending the Redeemed Church, preferring congregations more relevant to their lives.
Back in Floyd, Texas, Pastor James Fadele is not discouraged. He says it will take some time, but they will connect with the greater community, perhaps by renting out the huge auditorium for weddings and rodeos.
He said when people learn they are genuine, they'll join his church.
"I'm not saying all the churches in America are fake," he said. "But... we have come all the way from Africa. We are engaging the people to show them the true Gospel, making sure that people are being saved and people are making it to heaven."

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