FG Orders Refund Of Post-UTME Fees

Minister of Education, Malam Adamu Adamu has directed all tertiary institutions that have conducted post-UTME examination to immediately refund money taken from candidates.

The minister has also declared that post-UTME examinations already taken are nulland void; threatening that any institution caught still conducting the examination under any guise would be sanctioned.

The minister made this position known yesterday, in a press statement issued by Deputy Director Press and Public Relations, Ben Bem Goong. The strong-worded statement reiterated the Ministry’s position that post-UTME examinations have been cancelled with immediate effect and no institution should conduct such examinations. The minister warned that once the Joint Admission and Matriculation Board (JAMB) has certified a candidate worthy of admission into any of the tertiary institutions, that candidate must be deemed fit by the institution.

According to the statement, students who have already been offered admission by JAMB may be screened by the institutions but this must not involve the conduct of any other entry examination. The candidates can be screened by verifying their certificates but not through the conduct of examinations.

The minister stated that it is unnecessary to subject students to further examinations when they have been offered examinations by JAMB since they will still have to go through between eight or 12-semester examinations throughout their four to six years study in the institutions.

The minister, therefore, directed the National Universities Commission (NUC) and appropriate departments in the Ministry to communicate the directive to relevant agencies and institutions to ensure strict compliance.

“Those who have already advertised for the conduct of the Post-UTME under any guise should stop the exercise immediately as any university caught conducting Post-UTMNE will face appropriate sanctions. If any tertiary Institution has already conducted Post-UTME, such an exercise stands annulled and money taken from such candidates must be refunded immediately”, the Minister said.

The directive to stop the post-UTME examinations was given by the minister nearly a month ago. The minister said through the statement that it was important to emphasise the directive in order to ensure that no stakeholder is left in doubt as to government’s position on the matter.

He affirmed that the responsibility for admission into public tertiary institutions lies solely with JAMB and under no circumstance whatsoever, should anybody or institution take over that responsibility by proxy.

“The ban is with immediate effect, and under no circumstance should any institution violate the directive”.

“Any educational institution after secondary education is regarded as a tertiary institution. Therefore all tertiary institutions, Polytechnics, Colleges of Education, Universities or by whatever name it is called after secondary education must be subjected to admission through the JAMB. At the end of probationary admission by JAMB, the candidates can be cleared (screened) for final admission. For any institution with a shortfall in admission, such institution can revert to JAMB for supplementary admission”.

“Clearing in this case (screening) entails only the verification of certificates of the candidates, JAMB scores, and any other physical examination to ensure that such candidates are not cultists. After this, the candidates are qualified for matriculation.

Such screening should be at no cost to the parents or students and should be done upon resumption in order to avoid unnecessary travels in search of admission”, the minister said, For secondary school leavers who are seeking admission into the tertiary institutions, Malam Adamu said that subjecting them to too many examinations all in one year, is traumatic, exploitative and absolutely unnecessary. This is besides the cost of travelling, hotel accommodation and examination fees that parents have to incur in their bid to secure admission for their ward.

Education Minister Says Ban on Post UTME is With Immediate Effect

Nigeria’s Education Minister Adamu Adamu, has reiterated that the ban on post UTMEs in the country is with immediate effect.

“

The ban is with immediate effect, and under no circumstance should any institution violate the directive,” a statement issued by the education ministry said.

“The responsibility for admission into public tertiary institutions lies solely with the Joint Admissions and Matriculation Board (JAMB) and under no circumstance whatsoever, should anybody or institution take over that responsibility by proxy.

“For the avoidance of doubt, any educational institution after secondary education is regarded as a tertiary institution.

“Therefore, all tertiary institutions, Polytechnics, Colleges of Education, Universities or by whatever name it is called after secondary education, must be subjected to admission through the JAMB.’’

The statement said that at the end of probationary admission by JAMB, the candidates could be screened for final admission.

News Agency of Nigeria

EURO 2016: Defending Champion Spain Crash Out of Tournament

Back-to- back European champions Spain has been sent packing from this year’s European tournament by Italy in a round of 16 fixture that ended 2-0.

Italy enjoyed an early attacking momentum as Alessandro Florenzi takes advantage of a Jordi Alba slip before putting a low ball into the box which is hacked clear by the Spain defence.

Spanish goalkeeper, David de Gea had a busy day as he saved a free-kick from Florenzi’s, before saving an overhead kick by Giaccherini at the 24th minute and a couple of attempts by the Italians.

The breakthrough finally came at the 33rd minute when Sergio Ramos gave away a silly free-kick 23 yards out and although De Gea saves Eder’s low shot, A swarm of Italy shirts are first on the scene with Giorgio Chiellini tapping home the rebound.

Although Spain made attempts to redeem their image, a second goal by Graziano Pelle in first minute of stoppage time completes a happy day for the Italians.

Spain, winners of the 2008 and 2012 editions have lost a chance to become the only country to win the championship 3 times in a row.

NYSC Reacts To Rumours Of Scrapping Scheme

Director-General of the National Youth Service Corps, NYSC, Brig. Gen. Suleiman Kazaure, has debunked rumours making rounds that the one year national youth service scheme has been scrapped.

Kazure disclosed this during a visit to the NYSC orientation camp in Mangu Local Government Area, Plateau on Monday.

He explained that the purpose of the scheme was for national integration, a key in building a better Nigeria and urged the people to desist from peddling such rumours.

The DG, who described the rumours as fabrications, called on the batch “A’’ stream of the scheme to embrace the NYSC skill acquisition programme.

He said that the skill acquisition programme would enable the corps members become employers of labour rather than searching for non-existing white collar jobs.

He said that the skill acquisition and entrepreneurship development programme would prepare them with relevant vocations and skills for self-actualisation after the service year.

Kazure appealed to the corps members to obey, respect the culture and customs of their host communities urging them to add value to their host communities, by identifying a need to be met.

The DG commended the state coordinator and staff of the NYSC for making the orientation exercise conducive for the corps members.

Mr Abdul-Razak Salawu, the state coordinator, NYSC Plateau, commended the D-G for his visit.

NAN

Bank of Industry’s (BOI) N10 Billion Youth Entrepreneurship Support (YES) Programme – 2nd Round

Bank of Industry – The Youth Entrepreneurship Support (YES) programme is an ambitious programme by the Bank of Industry (BOI) aimed at addressing youth unemployment in Nigeria which is currently over 50%. According to a 2013 survey by the Nigerian Institute of

Social and Economic Research (NISER), most of the capacity building programmes aimed at addressing youth unemployment, have concentrated more on training without any tie-in to the provision of small business loans, which is a critical success factor to the establishment of small businesses. In addition, they hardly take care of the entire training value chain in terms of Entrepreneurship, Business Management and Technical Skills.

Bank of Industry’s N10 Billion Youth Entrepreneurship Support (YES) Programme

Components of the YES Programme

The YES-Programme comprises the following: ◦Eight (8) weeks extensive online Entrepreneurship and Business Management training which has the ability to test participants’ understanding and track their progress.

. Five (5) days in-class Entrepreneurship and Business Management training (5 modules).

. Technical skills training in partnership with the various technical training and vocational institutes in the country.

. Financing the businesses by BOI under its SME Cluster initiative in consonance with the United Nations Economic Commission for Africa’s Commodity-based Industrialisation Strategy.

Successful Applicants will be trained in the following areas: ◦Entrepreneurship

. Business Management

. Technical Skills

Programme Objectives

The YES-Programme has the following broad objectives: ◦To create an interactive learning platform to train young aspiring entrepreneurs in Entrepreneurship, Business Management and Technical Skills that will ultimately translate into improved efficiency and productivity.

. To kindle the entrepreneurial spirit of the youths.

. To act as an incubation center where business ideas are nurtured to their full potential as well as entrenching global best practices by inculcating a culture of innovation-driven entrepreneurship and ethics in the programme participants.

. Promotion of self-employment among graduates of institutions of higher learning, thereby changing their job-seeking mindset.

. To deepen financial inclusion by de-risking the young aspiring entrepreneurs and making them eligible for small business loans to be provided by BOI.

Who Can Apply?

To be eligible for the Competition you must satisfy the following criteria: ◦The applicant must be a Nigerian.

. Must have a viable business idea within the 40 identified clusters that is operated, or will operate in Nigeria.

. Must be within the age limits of 18 and 35. (proof of identity: International passport/Drivers License/National ID/Voters card required).

. Must possess a minimum educational qualification of Ordinary National Diploma (OND).

. Applicant must be able to carry out the application process online.

Deadline: 17th July, 2016.

Click Here to Start Application

Procedures to Complete Application

Step 1 – Check Your Eligibility

Check that you are qualified to apply. See the section “Who can apply?” above.

Step 2 – Register

Click the link above to register if you have not already done so

You will receive a confirmation email from YES Programme with all the details you will need to log in.

Step 3 – Complete Application

Once you have successfully registered, log in and click the “Start Application” button on the Start Application Tab on this page. To return to your application, click the “save and continue” button and come back to it at any time. Once you are done with your application, click on the “Submit” button at the end of the form to send it to us. You can submit only ONE application per “application cycle” (typically 3-4 months).

Step 4 – Keep Informed

After the closing date you will be notified if you have been shortlisted for the next stage of the competition. Constantly check the YES Programme homepage for regular updates.

Note: Applicants who applied for the first round but were not successful are encouraged to improve on their submissions and re-apply.

Economic and Financial Crimes Commission (EFCC) Shortlisted Candidates For Recruitment 2016

The Economic and Financial Crimes Commission (EFCC) – The under-listed candidates are shortlisted for screening at the just concluded recruitment exercise which took place in April 2016.

Candidates should click on the link that correlates with their Cadre as seen below:

1.) Economic and Financial Crimes Commission (EFCC) List – Diploma Cadre

Click Here To View List Shortlisted Candidates

2.) Economic and Financial Crimes Commission (EFCC) List – SSCE Cadre

Click Here To View List Shortlisted Candidates

3.) Economic and Financial Crimes Commission (EFCC) List – Graduate Cadre

Click Here To View List Shortlisted Candidates

Itsekiri Warlord Issues Stern Warning To Niger-Delta Avengers

Former member of the Delta Waterways Security Committee, DWSC, Warri, Delta State and ex-Itsekiri warlord, Comrade Omolubi Newuwumi, aka ‘Gentle General’, has issued a stern warning to the Niger Delta

Avengers that the Itsekiri ethnic nationality would defend itself if the group does not desist from the provocative bombing oil and gas installations in its (Itsekiri) territory.

Newuwumi, the Itsekiri equivalent of Ijaw‘s Tompolo and former Commissioner for Youths in the state, told Niger Delta Voice: “The bombing of oil and gas facilities in Itsekiri territory is absurd; it is an act capable of provoking the Itsekiri nation and personalities like me. I am categorically saying that if they continue, they may force us, Itsekiri, to protect our territory, especially if the present administration fails in their responsibilities to protect lives and properties.”

He said: “We will be prepared to assist the government to end the bombings of oil installations in our area just like the role of the civilian JTF in the north, which has yielded successful results”.

“The then federal and state governments failed to protect us from the Ijaw until we decided to take our own destiny into our hands and defend ourselves. I just hope this present government will not abandon us to our fate,” he added.

NIGERIA: Parallel Market Exchange Rate (27/6/2016)

Note: “Buy” refers to the rate you pay if you want to buy forex. “Sell” is the rate that you sell to parallel market operators.

Our rates are obtained from black market operators on the mainland and the island of Lagos. We prefer to publish the higher of the two.

Dollars

Buy   – N346

Sell    – N340

Pounds

Buy  – N460

Sell  – N450

Euro

Buy – N375

Sell – N370

The Deadly Combination That Has Sent Nigerian Stocks Crashing

The Stock Market All Share Index was on a high on Thursday, June 23rd 2016 until something happened. The index had been on a stunning 7% run gaining at least 2% on the three days before the decline on Friday.

So what must have happened? Before we get to the whys we will like to remind you of what a bullish 10 days we have had in June. The stock market began a major rally from the 15th on June 2016 when the Central Bank announced its new flexible exchange rate policy. It gained over 3% on that day and above 2% every other day except for the 20th of June 2016 when it lost about 1.6%. It was considered a blip as the bulls regained steam to gain another 7% in three days. And then the slide began.

We published an article from Rasheed of TRW Stockbrokers where he indicated that profit taking was about to commence in the stock market. Here is an excerpt;

The 30,329 points close is within the October 23rd psychological resistance level (investors and traders tend to be very cautious around these numbers, but also a technical resistance within an upward price channel. What this means is that there are plenty of reasons for traders watching these levels and formations to start taking profit.

Just as he rightly predicted the market reversal began the next day (24th of June) with stocks plunging by 1.35% or losing N140 billion in just one day. That was not the only reason;

On that day, the world woke up to hear that Britons had voted to exit the European Union sending markets on a massive sell off and the pound to its lowest since 1985. The world had lost over N2 trillion by the end of that ensuing weekend. Nigeria wasn’t excluded as local investors saw this as another reason for foreign investors to delay investing in Nigeria. The market hates delays, not with short term investors calling the shots.

The trigger for the June rally were two major economic decisions that the market felt was a snag to bringing back foreign investors. First, was the removal of fuel subsidy and then most importantly the floating of the Naira. These were significant movers and investors decided to pile into the market in the hope that they can sell to foreign investors on a high by the time they return. With an imminent delay now in the offing, caution is gradually taking over and the reality is now dawning on the markets.

In a few weeks time, companies will commence publishing results and not a lot of people have high expectations. The country is on the brink of a recession with consumer and government spending in the driver’s seat. The outlook appears gloomy for most companies and very few are willing to hold on to stocks till results are released. The market will rather sell and then re-enter when results have been mostly published and digested.

We like to call this a bull trap at Nairametrics and as such regularly inform our readers to learn to buy low and sell high, rather than buy high and sell low. Buying stocks during a bull rally can be profitable but it’s also very risky as a lot more traps are laid by what investors call the smart money. We prefer to buy when the market is bearish as the upside is even more when it starts to gain. Just make sure you buy stocks with great fundamentals.

These Are What We’ve Learnt About The New Exchange Rate In The Last One Week

It’s officially seven days since Nigeria began a free float of its exchange rate. The new interbank foreign market ushered in by the Central Bank Governor, Godwin Emefiele is expected to provide some relief for an economy that has been starved of foreign investments in

the wake of the imposition of capital controls that has contributed in no small measure to an imminent recession.

As Nigerians wait expectantly to see the impact of this policy on their standard of living, we have on our own compiled a few pointers that we believe could decide the trajectory of this new policy.

41 items still an issue – When Godwin Emefiele announced the new policy he made sure he informed everyone that the 41 items banned from assessing the forex window remained banned. It was seen as the only downside of a policy that basically exceeded everyone’s expectation. Unfortunately, the bans is still being seen as a likely impediment to the success of this exchange rate policy. The reason is obvious, importers will not relent in finding forex to fund these items. Something has to give.

CBN Intervention – Another point of note in the last one week is the role the CBN will be playing in ensuring currency stability. Everyone had feared that volatility could hold sway once the policy comes into effect considering the unmet demand that had lingered in the books of most banks for months. However, the Central Bank has remained a major supplier of forex in the interbank market frequently meeting bids placed by participating banks. The Central Bank has sold FX for virtually every single day since the new interbank foreign exchange market started. This is probably the main reason why the exchange rate has been stable.

Backlogs cleared – For months, analysts had alluded to a backlog ranging from $3 billion to $9 billion as an overhang that will be hard to clear by the CBN if it eventually devalued. The CBN did not devalue but went a step further by floating the Naira. As mentioned above, we wondered how they were going to fund the backlogs without causing volatility in the market. What happened next was another surprise to analysts. The Central Bank, cleared all the so-called backlogs that was thought to be a major recipe for volatility. The CBN used a combination of cash and forward market deals to clear the backlog in one fell swoop. This helped calm the market paving the way for people who actually needed forex for legitimate transactions to create the right demand.

Oil Majors foot-dragging – Something else we observed is the fact that oil majors who are expected to help provided liquidity in the interbank market are still foot-dragging. Sources inform us that oil majors are set to enter the market in larger quantities suggesting a further strengthening of the Naira. No one knows for sure when this will happen and so we remain expectant of an increase in liquidity.

Parallel Market Premium – When the CBN announced a float of the currency the impression was that the exchange rate at the parallel market will strengthen. It did strengthen, with the exchange rate rising from as low as N370 to about N325 before weakening again to N345 as at Monday the 27th of June. Poignant in all of this is the fact that the Naira at the parallel market is still trading at a premium of 22% to the rate at the Interbank. Analysts expect a range of between 5 and 10% as ideal premium considering that we still have the overhang of the banned 41 items and the exchange controls that still remain. This suggest a price of about N310 assuming the official rate remains at N282. This is one space we will be watching for a while to come.

Arbitrage still on – We have been getting reports that some elements in commercial banks are still engaging in activities that suggest round tripping. For example, a depositor informed Nairametrics that his bank debited his accounts just a few days before the flexible exchange rate was announcement was made at a price of N197, only for them to return the money claiming that the exchange rate had since changed. Stories like these abound confirming that the dirty practices that was prevalent in the fixed exchange rate system still exist. The CBN will have to improve on its oversight functions and clamp down of unscrupulous behaviors of some of our commercial banks. Depositors also need to be better informed.

Foreign Investors are watching – Last week we featured an article from Reuters confirming that foreign investor apathy still exist. They are watching intently at how all this plays out. We also do not expect them to come right back until they get some green light from the likes of JP Morgan and the trio of Moody’s, S&P and Fitch. They are also watching the president intensely and will always put a premium to anything he says that suggest a threat to the floating of the Naira.

How Foreign Investors Could Interpret Buhari’s Latest Devaluation Gaffe

President Buhari is probably better left alone especially when it comes to questions relating to the economy. He was speaking at a breaking of the Ramadan Fast with some members of the

Business Community in Abuja when he seized on the opportunity to comment on the new flexible exchange rate policy.

The president who last two weeks ‘wrote’ an article on the Wallstreet Journal supporting a “greater float” of the currency appeared to be going back to his old ways claiming that he still does not support a devaluation of the Naira.

Even though we weren’t surprised by his admission we thought it wise to psycho analyze some of his comments from the perspective of a foreign investor.

“I don’t like the returns I get from the CBN (Central Bank of Nigeria),”

Assuming he wasn’t quoted out of context, this further confirms his firm grip on the activities of the Central Bank. The Apex bank is supposed to be independent, however this President is not letting up. His meddling in the operations of the CBN is one of the reasons why foreign investors are still skeptical about the sustainability of the new policy.

“In August 1985 , the naira was N1.30 to a dollar but now you need N300 or N350 to a dollar. What do we derive from that? How much benefit can we derive from this ruthless devaluation of the naira? I’m not an economist neither a businessman, I fail to appreciate the economic explanation,”

There are quite a number of economist who do not support devaluation of the currency but we doubt there is anyone who can’t grasp why 1985 is not 2016. The president still holds on to the past like he owns a time machine. This attitude is quite disturbing and is likely a factor in his handling of the economy. The more he sees 2016 as 1985, the more he dwells in archaic policies that just don’t work. This is quite disturbing.

“What has happened to us now is that we have maneuvered ourselves into mono economy which led to the collapse we are seeing now.”

The fact that he used the word “collapse” is a huge fail in our opinion. You do not expect a President who is presiding over the largest economy in Africa to use words like “collapse” when referring to the state of the economy. Where is the confidence and sense of patriotism or even belief in the economy. There are other countries who you can consider as a mono economy yet rewarding their citizens with a better society, jobs and good quality of life. Nigeria’s problem is that of mismanagement and corruption and we expect the president to know better. Focussing on oil as a reason for Nigeria’s problem is confirming his penchant for clinging to antediluvian ideas.

Listening to the president spewing remarks like this is quite heart wrenching particularly if you consider how fragile the economy is. With foreign investors still skeptical about his intentions, this latest gaffe reinforces the impression out there that he could one day decide to reverse the exchange rate policy. If he continues to utter statements like this he basically makes it harder for his Minister of Finance to get any foreign investor to buy any of our bonds let alone invest in Nigeria. Someone needs to constantly remind the president that we are not in 1985.

WORLD PREMIERE: Naomi Mac Drops New Single ‘Ori Mi’ Featuring Pheelz

House One Music singer Naomi Mac has finally released ‘Ori Mi’ the most anticipated song of the year today, 27 June, 2016, featuring official YBNL producer Pheelz.

The single which made the rounds on several social media platforms last week sparking anticipation by thousands of excited fans, marks the first appearance of Pheelz as a guest artiste on a track produced by him.

Having enjoyed massive airplay with her previous singles ‘My Heart’ featuring Adekunle Gold and ‘Mujo’, Naomi Mac promises ‘Ori Mi’ is much larger than her previous projects. Speaking on why she is so confident that ‘Ori Mi’ will be the biggest song of 2016, the singer remarked;

“Ori Mi speaks to everyone, regardless of whatever social construct you belong to. It’s an incredibly inspirational song everyone can relate to. It’s straight from my heart to you – it’s me sharing my story; a story we’ve all experienced at some point in our lives and it features vocals from my friend, producer extraordinaire Pheelz. Just go listen for yourself.”

Click Here To Download

The Most Expensive Cities For Expatriates: See Where Lagos Ranks

Investment Consultancy Group, Mercer, has released its 22nd annual cost of living survey. The survey found that factors including currency fluctuations, cost inflation for goods and services, and instability of accommodation prices, contribute to the cost of expatriate packages for employees on international assignments.

“Despite technology advances and the rise of a globally connected workforce, deploying expatriate employees’ remains an increasingly important aspect of a competitive multinational company’s business strategy,” said Ilya Bonic, Senior Partner and President of Mercer’s Talent business. 

According to the 2016 Cost of Living Survey by Mercer, Hong Kong topped the list of the most expensive cities to live in the world for expatriates, while Luanda, Angola was No.2 on the list.

Here are the most expensive cities to live for expatriates:

1.    Hong Kong

2.   Luanda (Angola)

3.   Zurich (Switzerland)

4.   Singapore

5.   Tokyo (Japan)

6.   Kinshasa (Congo)

7.   Shanghai (China)

8.  Geneva

9.   N’Djamena (Chad)

10. Beijing

 

Wonder Where Lagos, Nigeria’s economic capital ranked?

 No. 13.

 

However, the World’s least expensive cities for expatriates, according to Mercer’s survey are Windhoek (209), Cape Town (208), and Bishkek (207).

 

Read The Full Report Here

This EFCC’s Latest Threat Is A New Source Of Worry For Nigerian Banks

The Chairman of Nigeria’s Economic and Financial Crimes Commission, EFCC, Mr Ibrahim Magu has led the Buhari’s government’s fight against corruption in a way that is reminiscent of the days of Nuhu Ribadu, the commissions first Chairman.

He has been on the fore front of a number of high-profile arrest of politicians in the former Government of Goodluck Jonathan including that of the previous National Security Adviser, Sambo Dasuki. His roll call now includes, former Army Generals and senior officers, past and current governors, former ministers just to name a few.

His methods have often been questioned by the opposition and their sympathizers alleging that it is often one-sided, illegal and one-sided. People who work with Mr Magu inform Nairametrics that he is as tough as it comes and has instructed his ‘boys’ not to relent in their quest to curb economic crimes.

Mr Magu is also not relenting and is now turning his searchlight towards commercial banks and their chief executives. In one of the most daring comments ever made to corporate Nigeria, he has informed those who care to listen that he “doesn’t care what happens”. He was reportedly quoted in an interview on Channels TV speaking about the commissions plans to expand their crime bursting operations to the Financial Sector.

“We are not only going after the personnel of banks, we are also going after the banks. What happens is that when a staff of the bank is involved in such activities, what the bank does is to take the person out of the system through dismissal.

“But now, we are going to go after the banks and the personnel used to perpetrate the fraud. It takes two to tango. In fact, very soon, you will see us going after the managing directors of the banks.

“We don’t care what happens because the right thing has to be done because they have given a lot of room for money laundering activities to thrive. They were used to hide all the stolen money.”

You would think that’s the worst you’ve heard. Now wait till you read the next quote;

“We had a discussion with the Governor of Central Bank of Nigeria, Mr. Godwin Emefiele, and I insisted that this so-called private banking should be stopped. It is illegal; it is wrong.”

The twin quotes are bound to worry any serious investor who has invested heavily in Nigerian commercial banks especially if you consider how fragile the Industry currently is. Just a few weeks ago, the EFCC dashed into the Headquarters of Fidelity Bank and Access Bank picking up their Managing Directors on suspicion of helping share the alleged “Diezani loot”. Fidelity Bank was forced to announce an acting MD within days. He was later made their Deputy Managing Director, after the MD, Nnamdi Okonkwo was released by officers of the commission. They have also been reported to have stormed the offices of other bank, and oil companies with suspected affiliations with Madam Diezani.

By threatening to go after bank Managing Directors, the EFCC has introduced another level of uncertainty about the ability of the banks to continue with their plans towards increasing profitability, issuing quality loans and ensuring that their capital adequacy ratios are above the Central Bank’s limit of 15%. Already, most banks are reeling from loans to the oil and gas sectors which have mostly gone bad and only now focussed on implementing plans of restructuring some of these loans whilst also improving shareholders return. Rather than focus on what they were hired for, Bank CEOs now have to worry about being arrested by officials of the EFCC as they preside over crucial management meetings.

The worst for us was him threatening to stop banks from engaging in Private Lending, a service that in itself is core to banking. To think he has already discussed this with the Central Bank Governor is an even more cause for concern. Godwin Emefiele, the CBN Governor has been criticized quite often for bidding to the whims and caprices of Aso Rock.

Whilst we do not claim to be oblivious of rogue bankers in our midst, we believe statements like these posse more harm than good to the financial sector. Foreign investors are expected back in Nigeria after the floating of the Naira have expressedother concerns other than the currency as potential reasons to stay away. Uncertainty in the financial sector also adds another layer of concern to an already shaking stock market recovery. The Central Bank and the Bankers committee should immediately open talks with the EFCC to ensure avenues of cooperation between all parties are harnessed before an all out fight that will only do more harm to depositors funds as well as shareholders funds.

This Could Explain Why Job Applications In Nigeria Are Down 55% Since October 2015

The National Bureau of Statistics in conjunction with Jobberman released their 2016 first quarter employment report. According to the Bureau, application for jobs has fallen from about 318,233 in October 2015 to about 145, 872 in March 2016 representing a whopping 55% drop.

In fact, job applications have been sliding since last year, with the situation worsening in February 2016 when applications fell to as low as 123, 657. The report also indicates that Trade/Services posted the largest number of vacancies as well as applications during the period. The oil and gas and banking sector receive the most number of application per vacancy suggesting that more people were applying to these sectors than any other.

So What could be causing this?

The Bureau did not offer any official explanation for this drop. but we believe it all boils down to one thing. Companies are simply doing more of firing than hiring leaving job applicants with no choice but to seek other alternatives. As finding a job becomes harder, many people drop out of the labour force not because they do not want to work for anyone but because they are tired of seeking for jobs.

Applicants per vacancy each month

The data also in a way buttresses this fact (see table above). Even though vacancies increased between October 2015 and March 2015 applications dropped. Nigerians have probably resigned to the fact that they won’t get quality jobs. According to the report, the least competitive industry in the first quarter was Trade/Services, which recorded more vacancies than any other sector. Out of the 5,2626 vacancies, trade and services sector accounted for 83% or 4383 of the total vacancies.

Good paying jobs are nearly had to find and when they do announce vacancies, the application rate is always high as the chart below depicts.

Applicants per vacancy in each industry

Get the report here

A Conversation With an Operator of 3 Fuel Stations Exposes A Common ‘Threat’

Last May, the Minister for State for Petroleum Resources and Group Managing Director of the NNPC, Dr Ibe Kachikwu announced an increase in the price of fuel from about N82.5 to as high as N145 abandoning years of a fixed pricing system for Nigeria’s most desired commodity.

The announcement came on the back of excruciating fuel queues experienced by Nigerians all over the country. Importers of petroleum products claimed they could not continue to import products amidst delays in subsidy payments. They also complained about their inability to access forex from the CBN at the official price of N197. And so subsidy was effectively taken without a single protest from Nigerians. The Nigerian Labour Congress tried to mount a resistance but was met with disdain and stone cold silence from Nigerians. They had no choice but to call it off.

It’s over a month since subsidy payment was stopped on petroleum products and Nigerians are already seeing the benefit as fuel lines have basically disappeared in nearly all parts of the country. A recent article on Nairametrics explains the benefits in greater perspective. In addition to that article, an oil and gas analysts provides another perspective of the impact of fuel subsidy removal on the operations of downstream independent marketers. The article whichwas the latest of a weekly oil and gas roundup byAdedamola, based his opinion in part on a striking conversation between him and an owner of three filing stations. We culled parts of the article

I asked an independent marketer friend who operates 3 stations how the semi-liberalisation of petrol has impacted him. It’s bloody. Demand has dropped by over 60% largely because of reduced demand and competition. In his words(paraphrased), “if your station is close to a mega station,you are finished. They have dropped prices and you can’t compete”.

For years national petrol demand has been estimated at about 40 million litres per day. Seems we were living a lie. Subsidy payments encouraged excessive importation and inefficient use. Don’t blame the importers because the more litres they import, the more the subsidy payments. Don’t let’s talk about the millions of litres that find its way across our borders. That demand was not real. A 50-60% drop in demand for an inelastic product is not normal.

Now that subsidy is gone, our real demand is been established. With time the numbers would be clearer but let’s assume a 30% drop in demand,down to 27 million litres. Our 3 local refineries can produce 7 million litres at average capacity. If 25% of petrol demand can be met locally guess the impact on forex demand. With oil production now touching 1.9 mbopd and prices at high 40s, i am very optimistic of a good Q3/Q4 2016 GDP growth.

Furthermore, If the competitive forces in petrol industry persists, we may also expect a consolidation of independent marketers on the long run. Some would collapse into the major’s chain to benefit from synergies. Dont be surprised if the good old days of getting free windshield cleaning return.

Did I tell you my friend expects this current calm to be short-lived? He wants the chaos back so he can profiteer. Imagine my face when he was saying that.

This analysis further confirms our belief that our energy consumption in Nigeria will likely trend lower and not higher as people become more cost conscious. Rather than fill their tanks as Nigerians typically do, consumers will reduce the quantity of fuel they buy and also reduce how often they drive. This is an obvious business threat to owners of petrol stations and those making a living in the downstream sector. We believe the price of fuel will probably fall in the years to come as completion takes hold. Investors in the downstream sector without capacity to scale, cut cost and operate efficiently will most likely go out of business.