Weekly Report – Nigeria, Feb. 11-17, 2012

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Weekly Report – Nigeria, Feb. 11-17, 2012

Ex-soldier Habibu Bama wanted by SSS, as Army joins manhunt, stops suspect’s pension: An ex-soldier wasdeclared wanted in connection with the dastardly act of bombing a church and killing about 47 people. It was alsogathered that the Army authorities on their own, have commenced investigations to ascertain how Bama who allegedlybears three names including Habib Mamman left the Army, as well as the actual name he bears while in the Army, howmany years he served and the year he retired.

AfDB urges Nigeria to deliver on power, infrastructure: Dr. Ousmane Dore, Resident Representative of the AfricanDevelopment Bank (AfDB), said the nation must deliver on power and other infrastructural challenges to meet theVision 20:2020 goals. Dore who spoke in an interview with the News Agency of Nigeria (NAN) said that over theyears, the bank had come to the realization that the major constraint to African development was that of inadequateinfrastructure. Dore told NAN that almost half of the projects which the bank embarked upon currently wereinfrastructure-related.

72 Generals Redeployed in Army Shake-up: As the Federal Government continues to tighten security around thecountry in the wake of challenges posed by terrorist groups and insurgency, the Nigerian Army Wednesday re-jigged itsformations with the redeployment of 72 of its generals. Of the number, 29 are major generals while 43 are brigadiergenerals.

Nigeria to privatize three banks in 12-18 months: Nigeria's "bad bank" AMCON will privatize three nationalizedlenders in 12-18 months’ time, chief executive Mustapha Chike-Obi said on Wednesday, February 15. Nigerianationalized three lenders last year after they failed to find merger partners to recapitalize them following a central bank audit in 2009 that found them to be dangerously undercapitalized.

Nigeria deficit widens in amended 2012 budget plan as government provides N888bn for subsidy: Nigeria hasrevised upwards its outlook for the budget deficit this year due to the cost of partially reinstating petrol import subsidiesand will pay for the move by raiding its crude oil savings. The finance ministry said on Thursday the 2012 deficit wouldreach 2.97 percent of gross domestic product, up from 2.77 percent in its previous fiscal plans outlined in December.Nigeria's government removed fuel subsidies on January 1 but was forced to partially reinstate them after tens of thousands took to the streets in more than a week of protests over the increased cost of petrol. The new 2012 budgetincludes costs of 888 billion naira for fuel subsidies, up from 155 billion in the previous plans. The federal government's309 billion naira share of the subsidy will be funded out of the excess crude account (ECA). The rest will be funded bystate and local government. Total expenditure in the new budget plan will be 4.649 trillion naira, down from 4.749trillion in December. Based on several assumptions and parameters, the amount of subsidy to be provided in 2012 isN656.30billion while the revised amount to be provided for 2011 carried over is N231.8billion.

World Bank to Increase Support to Federal Government on Critical Programmes: The World Bank has againpledged to support the Federal Government in improving the contributions of critical sectors that readily affect thegrowth and development of Nigerian women. The World Bank has pledged to improve support to the governmentinclude woman and girl-child education, maternal and child mortality as well as issues relating to women health,economic empowerment, as well as access to justice and decision making process.

External Reserves Hit 6-month High: Nigeria's forex reserves, which have been bullish since this year attained a six-month high of $35.036 billion on February 13. Data obtained from the Central Bank of Nigeria’s (CBN’s) website

showed that the last time was around it current value was on September 12, last year, when it stood at $35.072 billion.At its current position, the reserves had gained a total of $2.137 billion this year, compared with the $32.899 billion it

was as at December 29, 2011. Financial market experts had attributed the accretion in the forex reserves to the steadyrise in oil prices in the international market since this year as well as the moderate demand for forex at the CBN’s

official forex market – the Wholesale Dutch Auction System (WDAS).

NNPC fails to defend N1.35tr 2011 budget: The Nigerian National Petroleum Corporation (NNPC) failed to defendits last year’s N1.35trillion budget before the Senate. The Joint Committee of the Senate and House of Representativeson Petroleum (Upstream) flayed the corporation for its inability to explain whether $8.720bn or $9.387bn wasappropriated for it in 2011. General Manager of the National Petroleum Investment Management Services (NAPIMS),Mr. Morrison Fiddi, who appeared on behalf of the NNPC Group Managing Director, Mr. Austen Oniwon, said only$8.722 billion out of the $10.553 requested was approved for the corporation for the year under review.



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CBN predicts increase in Nigeria’s poverty level: The Central Bank of Nigeria, CBN, Governor, Mallam LamidoSanusi, on Wednesday, said the level of poverty in Nigeria will continue to rise unless there is a deliberate effort tocreate other sources of revenue. Sanusi said the country, presently, has a dysfunctional economy, emphasizing that thereis an urgent need for a clear understanding of economic direction and structural adjustment that would create otheravenues for further revenue. He regretted that the agriculture sector that contributes 42 per cent to the Gross Domestic,GDP, is being neglected, adding that the CBN and banks are doing all it takes to revive the sector.

NESG raises alarm over divestment, unemployment: The Nigerian Economic Summit Group (NESG) has lamentedthe high rate of divestment and unemployment in the Nigerian economy and called for a collective action againstcorruption if the country intends to address the myriad of social and economic challenges confronting it. Mr Frank Nweke Jr., Director-General of the NESG, said the effects of corrupt tendencies affect everyone, both directly andindirectly, especially as the monies paid out in corrupt exchanges into private pockets prevent the provision of appropriate social and economic facilities especially quality infrastructure.

RenCap set to shake-up Nigerian bond market: Leading investment bank, Renaissance Capital (RenCap) withoperations in Europe, Africa and Asia, is set to deepen its presence in the Nigerian investment industry in 2012 andbeyond, with the launch of a range of fixed income offerings for the Nigerian market, as soon as April. The RencapCEO stated that Nigeria and Ghana remain the focus of its West Africa operations, due to the high-growth potential of both countries. According to her, if the power and infrastructure deficit could be bridged, Nigeria can achieve an

average GDP growth rate of at least 10 percent.

Former American President, Bill Clinton said Nigeria can overcome Security, Economic challenges: Nigeria andher leaders received words of encouragement and hope from former American President Bill Clinton who spoke inLagos Monday at the 17th Annual THISDAY Awards for Excellence. Clinton said it takes a long time to growdemocracy. According to him, what deepens democratic ethos is the recognition that people belong to different factions.He argued for respect for the majority, as well as minority and individual rights.

Anti-bomb cop dies in Kaduna twin bomb explosions: A twin bomb blast tore through Kaduna on Wednesday,February 15, killing a policeman and injured a Senior Special Adviser to the governor, Col. Dangana Maman (rtd). Thefirst one went off at Ungwar Sarki Market, Kaduna North Local Government of Kaduna State at about 11:30am. Tenminutes later, another blast occurred about 500m away, under a busy overhead pedestrian bridge instantly killing apoliceman, Sergeant Sunday Badang, an anti- bomb specialist who was trying to defuse the bomb.

CBN chief, Sanusi slammed over N100m donation to Kano victims: Non-governmental groups and some prominentNigerians have criticized the Governor of the Central Bank of Nigeria, Mallam Lamido Sanusi’s N100m donation to the

victims of bomb blasts in Kano. Some of the groups wondered why the CBN governor did not make a similar donationto bomb victims in Borno, Yobe, Plateau and Adawama states. An Islamic cleric and Chief Imam of the University of Abuja, Dr. Taofeeq Abdulazeez, also wondered why Sanusi single out Kano.

India Largest refiner buys Nigerian crude: Indian Oil Corp (IOC), the country's largest refiner, has bought one verylarge carrier of Nigerian light sweet crude via a tender, traders said on Monday. IOC has bought two 950,000 barrelcargoes of Qua Iboe for April loading from European oil major. Price details are not known and sales have not beenconfirmed. Subsequently, IOC issued another tender to buy West African light sweet crude and a rare tender to buyheavy crude. Both tenders are intended to buy April loading cargoes, and will both close on Thursday with bidsremaining valid till Thursday.

BPE may revise timetable for electricity firms’ sale: The Bureau of Public Enterprises (BPE) is considering a freshreview of the timetable for the privatization of the government-owned electricity firms. The delay in the issuance of revised legal documents to bidders for the successor companies to the Power Holding Company of Nigeria (PHCN) maylead once again to the revision of the schedule for the privatization of the companies. According to the presentprivatization schedule, bidders were supposed to get the revised legal documents on January 31, 2012, but as at Friday,they had yet to get the documents necessary for taking the process to the next level.

Nigerian poverty rising despite economic growth at 60.9%: Poverty in Nigeria is rising with almost 100 millionpeople living on less than $1 a day, despite strong growth in Africa's second largest economy, data showed on Monday.The percentage of Nigerians living in absolute poverty - those who can afford only the bare essentials of food, shelter



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and clothing - rose to 60.9 percent in 2010, compared with 54.7 percent in 2004, the national bureau of statistics said.Although Nigeria's economy is projected to continue growing, poverty is likely to get worse as the gap between rich andpoor in Africa's largest oil producer continues to widen. More than half of the country's 160 million inhabitants livewithout electricity, while the rest have to rely on expensive generators run on diesel supplies controlled by a small andpowerful cartel of importers.

Pirates kill captain, chief engineer in Nigeria ship attack: Pirates shot dead the captain and the chief engineer on a

cargo ship off the coast of Nigeria on Monday, an International Maritime Bureau (IMB) official said, the latest in astring of attacks on vessels off the coast of Africa's No. 1 oil producer. The attack came on about 110 miles south of thecommercial hub and main Nigerian port Lagos, comes two days after pirates on two boats in the same stretch of waterfired shots at a different cargo vessel and chased it for 25 minutes before giving up, the website said.

Boko Haram continue their surge, kills 7 in Borno: Gunmen suspected to be members of Boko Haram on Sunday,February 12 had laid siege on historic town of Old Maiduguri, neighboring town to Maiduguri, the capital of BornoState, killing seven people between February 12 and Sunday morning. The killings in old Maiduguri within Jere localgovernment area of the state was followed by a deafening bomb blast and subsequent exchange of gunfire betweenmembers of the dreaded Islamic sect and soldiers around the popular Gamboru market within the Maiduguri metropolis.

Unemployment Rate Contrast FG’s Economic Growth Figures: Despite statistics by the Federal Government thatshowed that the nation’s economy has witnessed appreciable growth in the last few years, the 2011 Annual Socio -

Economic Report, by the National Bureau of Statistics (NBS), has some worrying data on the labour market. The NBSreport revealed that unemployment has grown from 12.3 per cent of the labour force in 2006 to 23.9 per cent in 2011.The report also showed that Nigerians in the 15-64 age brackets available for, and in search of employment were unableto find one. Meanwhile, the NBS report also revealed that unemployment rate is higher in rural areas (25.6 per cent in2011) than urban (17.1 per cent), which “helps to explain the rapid growth of the population in the largest cities su ch asLagos. New entrants to the labour market averaged 1.8 million per year in 2006-11, and are forecast by the NBS toexceed 8.0 million in 2015

Nigeria security forces stop bomb attempt in Kaduna, Bomber identified as a government worker: Nigeriansecurity forces stopped a bomber on Monday who tried to ram a car packed with explosives through the gates of government house in the northern city of Kaduna, a government official said. The bomber tried to flee and was shot inthe legs, Reuben Buhari, spokesman for the governor, told Reuters. He said medical workers were treating him in policecustody. A soldier, who witnessed the attempted strike, told Reuters that the driver of the car was a government worker.

Electricity Tariffs to Rise Up to 88%: Electricity tariffs in the country are expected to increase by up to 88 per centunder reforms designed to revive the power sector and attract investors. The proposed new rates will be announced inthe coming weeks before the privatization of 18 state-run power generation, distribution and transmission companiesthis year, the London-based Financial Times (FT) has reported. Confirming the tariff hike, Chairman/Chief Executive of the Nigeria Electricity Regulatory Commission, Dr. Sam Amadi, informed that the commission had been working onthe introduction of new electricity tariffs, of which the pilot phase would take off on March 1 in some cities but wouldcome into effect nationwide in April this year.

Nigeria to Subsidies Power with N60 Billion: As the new electricity tariff comes on stream April 1, this year, thefederal government says that it has budgeted the sum of N60 billion to subsidies the effect on the rural urban poor thisyear. Minister of Power, Professor Barth Nnaji, disclosed this yesterday in Abuja. Only recently, the federal governmentannounced that from April 1, this year the tariff on electricity will be increased by 88 per cent. It is expected that thisnew rate would be announced before the privatization of the 18 power generating, distribution and transmission

companies this year. The minister however, said that Nigeria was ranked second to the last in the countries that payelectricity tariffs in Africa.

U.S. to Invest U.S.$1.5 Billion in Power: The United States Tuesday, February 14, declared its readiness to invest asmuch as $1.5billion in the Nigerian Power Sector through its various private sector companies that may be interested inentering the sector of the Nigerian economy. Vice-Chairperson and First Vice-President of the United States ExportImport (USEXIM) Bank, Wanda Felton, who is a member of an on-going United States Energy Trade Mission toNigeria, said. Felton who said the $1.5 billion would only be a first tranche of a broader spectrum of investment inNigeria's power generation, transmission and distribution added that the funds would certainly build up into higherinvestment as it progresses.



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Nigeria to generate 40MW Hydro-electricity by 2014: The Minister of Water Resources, Mrs. Sarah Reng Ochekpe,has stated that the Kashimbilla/ Gamovo multi-purpose Dam with a projected completion date of April 2014, will add40 megawatts of electricity to the national grid. The Dam has the capacity to supply water of 60,000m3 per day for400,000 people, irrigation of 2,000 hectares of farmland, including tourism and fishery potentials which would alsoalleviate poverty.

PDP, ruling party Candidate, Hon. Seriake Dickson wins Bayelsa Governorship Election: A candidate of thePeople’s Democratic Party (PDP) in Bayelsa governorship election, Hon. Seriake Dickson, has been declared winnerof the contest. Dickson was declared winner of the election at about 6pm Sunday by officials of the IndependentNational Electoral Commission (INEC). The election which held Saturday was contested by 35 parties which fieldedcandidates. Dickson polled 417,500 votes; Imoro Kubor of Change Advance Party (CAP) came second with 22, 534votes; Kemela Okara of the Action Congress of Nigeria (ACN) scored 9,627 votes and Famous Daunemigha of Congress for Progressive Change (CPC) polled 3, 548. The 32 other candidates scored an insignificant number of votes.

Nigeria to generate 370,000 jobs in 2012 says President Goodluck Jonathan: President Goodluck Jonathan hasreiterated his administration’s determination to address the problem of youth unemployment in the country. He also saidthe series of government projects outlined to address the situation will generate 370, 000 jobs across the country beforethe end of 2012. He disclosed this at the Banquet Hall of the Presidential Villa, Abuja during the launch of the PublicWorks and Women/Youth Employment (PW/WYE)) project, which is a component of the Subsidy Re-investment and

Empowerment Programme (SURE) on Monday, February 13.

Security Agents Shoot Director at Kaduna Government House: A team of security personnel guarding the KadunaState Government House on Monday, February 13 shot a director in the state's ministry of information when he refusedto stop for routine security checks. Pastor Isuwa Kiforo, the Director of Finance and Supply in the Ministry of Information and Home Affairs, was shot and injured in the leg and in the abdomen, and taken to hospital. The directorwent to the Government House at about 1:28pm in a Toyota Corolla salon car but attempted to avoid security checks bythe security personnel manning the entrance.

President Jonathan ends Nigeria ECOWAS Chairman: President Goodluck Jonathan is replaced Friday by IvoryCoast President Alassane Ouattara as the new Chairman of the Authority of Economic Community of West AfricaStates (ECOWAS) Heads of State and Government.

Nigerian bomber sentenced to life in prison: A federal judge on Thursday sentenced a Nigerian man to life in prison

for trying to blow up a U.S. airliner bound for Detroit in 2009. "This was an act of terrorism that cannot be quibbledwith," said U.S. District Judge Nancy Edmunds, who imposed the maximum sentence allowed. A bomb hidden in theunderwear of Umar Farouk Abdulmutallab, now 25 caused a fire but failed to explode on a Delta Airlines flightcarrying 289 people on Dec. 25, 2009. Abdulmutallab, who wore a white t-shirt and skull cap, sat impassively as thesentence was read out in a crowded Detroit court room.

Senate Confirms 5 New RECs: The Senate Thursday confirmed five new Resident Electoral Commissioners (RECs)of the Independent National Electoral Commission (INEC). The confirmed nominees whose names were forwarded tothe upper chamber by President Goodluck Jonathan early this year are Professor Jacob Jatau from Nasarawa State, BabaAbba Yusuf, Borno; Segun Agbaje, Ekiti; Nasir Ayilara, Kwara and Austine Okojie from Edo.

Reps move to cut powers of President, governors: A bill for an Act to amend Section 315 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) on Thursday, February 16, passed through second reading in the House of

Representatives. The Bill seeks to amend Section 315 (2), which gives the executive arm of government at both the stateand federal levels powers to modify existing laws. Also, the House of Representatives told those calling for theconvocation of a Sovereign National Conference (SNC) to perish the thought and instead strengthen their belief in theNational Assembly.

Weekly Report – Nigeria, Feb. 11-17, 2012

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