The major reason why foreign and local investments continue to boom is not unconnected to the telecommunications laws protecting it. According to the Executive Vice Chairman, NCC, Dr. Eugene Juwah, this has remained the strength of the sector in the past 12 years of its liberalisation.

The Nigerian Communication Act 2003, which defines how telecommunications works in a win-win both for the country and the investors, has been a major source of the industry success.

The NCA, which legal experts have also lauded as one of the most progressive laws in the country, gives the regulator absolute power, devoid of government or other external interferences to regulate the industry according to the best global practices as enshrined by the International Telecommunications Union and other regional telecoms regulatory bodies.

At the Mobile World Congress in Barcelona, Canada-Nigeria Investment Conference in Toronto and within the country, Juwah had been consistent in hinging the success of the industry to the existence of enabling laws which guarantee investors’ protection.

According to Juwah, the power of the Nigerian Communications Act guarantees a safe market for investors that they can indeed bring their money into Nigeria and be sure that the law is there to protect their investment.”  The NCC also demonstrated as it recently signed an agreement with Canada to protect the Nigerian-bound Canada’s investment within Nigeria.

Industry experts say drawing strength from the Act, the industry has witnessed year on year growth.  The last official industry data showed that active mobile subscriptions in Nigeria has grown to over 116 million while teledensity has grown over 80 per cent in the last 12 years.

Also with over 47 million Nigerians online, with less than 10 per cent of thme having access to ‘broadband’, studies has shown that developing broadband market in Nigeria also holds great potential to investors.

In spite of the growth, the NCC boss said the Act has helped the Commission to maintain a firm grip on the industry, coming down hard on operators when the need arises. “The strength of the Act is why the NCC is excited about the roadmap ahead,” saying the roadmap includes various frequency auctions that will come up between 2013 and 2015.

According to him, such a roadmap includes the creation of a huge broadband market in Nigeria, the effect of which can touch every life in the country.

Broadband technology will enable Nigerians enjoy data services by opening up new vista of competition in the industry.

He added that the broadband regime, which the country is entering, will create a new excitement in the industry; ensure availability of quality products and services as well as the protection of the subscribers.  A recent Pyramid Research study has shown that Nigeria continues to be a budding investment destination for Nigeria, which current Foreign Direct Investment estimated by the regulator at about $25 billion as at mid-last year.

With a growing large population and a favourably policies created by the policies with the NCA to properly regulate the industry, the Pyramid study hinted that for 2013 and beyond, Nigeria will remain a good telecoms market for investors looking for where to puts their money for maximal results.

Despite the impressive showing of several Nigerian financial institutioons in the 2012 financial year, and the bottom-line figures that have set shares of quoted banks soaring in value at the Nigerian Stock Exchange (NSE), a bank chief, yesterday, warned it is not eureka yet, as local banks still fall below global profitability benchmarks.

Managing Director and Chief Executive, Skye Bank Plc., Mr Kehinde Durosimi-Etti, who stated this at the bank’s pre-AGM briefing in Lagos, yesterday, said the global benchmark for assessing profitable banks may be in the neigbourhood of $1 billion profit per annum which, he pointed out, must be consistently sustained over a number of years. According to him, the figure is what each of the four top South African banks make annually to qualify being listed among world’s leading financial institutions.

While acknowledging that recent results by Nigerian banks was a positive indication that symbolizes good things to come, Durosimi Etti said current profit margins cannot make such banks compare with South African banks which are larger by asset base and volume loan portfolio.

The profit recorded by Nigerian banks in 2012 is better than what we saw in the past years, but we can only say they are doing very well if they can make up $1billion profit consistently over time,” he stressed.

He stated that while the outlook for domestic economy looks fairly stable with a growth rate of 6 to 7 per cent year on year, in line with development in key sectors like power and oil and gas, policy reforms that reduced of CoT, from 5 per cent per mille and its impending remover in the years ahead may likely hurt banks’ profit projections.

Durosimi Etti explained that the reduction of COT actually hit most banks’ interest income in the year under review due to the general concessions that management did in line with policy.

This and other policy changes in the industry he said are likely to further shrink the net profit of banks in the years to come, stressing that only innovative product offering can help operators cover up the anticipated shortfalls.

The Skye Bank boss however expressed optimism that the development may be remedied if the ongoing cashless initiative was faithfully implemented to increase the number of customers patronizing the industry.

Meanwhile, Skye Bank boss yesterday hinted that the company would be raising between N50 to N75 billion to shore up its Tier 1 and Tier 2 capital to enable it compete with others for emerging opportunities in the power and oil and gas sector.

He added that getting sufficient capital will assist the bank to raise its share of total industry asset from the present 5 per cent to about 7 to 10 per cent later.

By LOUIS IBA

The Federal Government hopes to raise the level of its current revenue from the nation’s airports by about 500 per cent on completion of the on-going rehabilitation, expansion and remodelling projects of 22 airports across the country.

Current yearly income capability from aeronautical and non-aeronautical businesses from the airports is put at about N50 billion.

According to Aviation Minister, Stella Oduah, available industry projections indicated that by 2015 total domestic and international passenger movement in Nigeria would rise from the present 12 million to 16 million and with better airport facilities and commercial offerings at these airports, air travellers would be increasing by at least 10 per cent every year.

Odua is spearheading a reform of 22 airports across the country. Over the weekend, President Goodluck Jonathan had inaugurated the remodelled Akanu Ibiam International Airport in Enugu.

At the same event, the Managing Director of the Federal Airports Authority of Nigeria (FAAN) George Uriesi said the income from every remodelled airport is estimated to increase by 500 per cent because of revenues that would accrue from the non-aeronautical businesses such as book shops, eateries, cafe’s, car parks and other business structures that could house banks, which have been expanded at each of the airports.

He said with the improvement of airport facilities more people would be attracted to the fly and that means more income earning from the aviation sector.

Odua, who in her opening speech to welcome President Goodluck Jonathan, who laid the foundation stone for the construction of international terminal at the Akanu Ibiam International Airport in Enugu as well as commission the remodelled domestic terminal of the same airport, said the international terminal project in Enugu would be completed in December 2014 and the total cost of the project is put at N13.3 billion.

Odua noted that investments in the sector targeted ensuring “Nigeria’s aviation industry must take its rightful place in our national life.”

Odua said the 22 state-owned airports currently being remodelling and upgraded would boost the nation’s Gross Domestic Product (GDP) on completion as they are expected to galvanise economic activities in their various locations and enhance international and domestic travel.

“The industry must become pivotal to the socio-economic development of our country as it is supposed to be and as we proclaim in our Vision, we will continue to do what it takes to deliver just such an industry to Nigerians,” said Odua.

She described Enugu as the fastest growing airport in the country and said the new international terminal with a total floor area of 25,000 square meters would have capacity to handle 500,000 passengers per annum. “On completion of the terminal, this airport will finally answer its name in the real sense of the word “Akanu Ibiam International Airport”, Oduah said.

She disclosed that already two international airlines have indicated interest to operate flights into the Enugu airport, adding that discussion along these lines would continue over the next few months “as we prepare the airport’s infrastructure to meet this demand.”

The Minister assured that the remodelling of the 22 federally-owned airports would be completed, including the five new international terminals coming on stream in Lagos, Abuja, Port Harcourt, Enugu and Kano, noting that these were not the only transformation taking place in the aviation sector, but also the aerotropolis projects and the perishable cargo terminal projects.

“You take Enugu for example, if Enugu was making a N100 a month and FAAN was spending a N1000 on it, the net loss was N900.

With the remodelling, this N100 Enugu was making is going to become N800. It may become profitable as an airport simply because of the commercial offerings it has or at least it may pay off its bills and save FAAN from subsidising it. So as we replicate all these, the income from every airport is going to go up in my estimation by at least 500 per cent,” the FAAN Managing Director said.

In a bid to shield their investments from the brewing political crisis, foreign investors have repatriated some $2.74 billion out of Nigeria from January to March, this year.

This was contained in the Central Bank of Nigeria’s (CBN) first quarter Economic Report, which revealed that foreign exchange outflow from the economy was $6.54 billion, dominated by foreign exchange outflows for ‘invincibles’.

The apex bank report also indicated some positive tidings as the economy recorded more foreign exchange inflow than outflow in the first quarter.

It said that the provisional data on aggregate foreign exchange flows through the economy showed that total inflow amounted to $34.47 billion, representing an increase of 13.5 and 20.9 per cent above the levels in the preceding quarter and the corresponding quarter of 2012.

While, oil sector receipts, which accounted for 29.1 per cent of the total, stood at $10. 01 billion, compared with the respective levels of $10.09 billion and $11.63 billion in the preceding quarter and corresponding quarter of 2012.

The report stated that non-oil public sector inflows, which accounted for 1.4 per cent of the total foreign exchange flows declined significantly by 54.1 per cent below the preceding quarters level, while autonomous inflow, which accounted for 69.5 per cent, increased by 32.8 per cent above the preceding quarters.

At $6.54 billion, aggregate foreign exchange outflow from the economy fell by 19.9 and 35.2 per cent below the levels in the preceding quarter and corresponding quarter of 2012, respectively.

The fall in outflow, relative to the preceding quarter was accounted for largely, by the 49.3 and 72.9 per cent decline in other official payments and autonomous sources (imports and invisibles). The invisible sector accounted for the bulk (42.4 per cent) of total foreign exchange disbursed in the first quarter of 2013, followed by industrial sector (18.9 per cent), while other beneficiary sectors, in a descending order included: mineral and oil sector (15.0 per cent), manufactured products (10.5 per cent), food

No fewer than five million subscribers of the four Global System for Mobile communication (GSM) in the country have ported from one network to the other. Prior to the Mobile Number Portability (MNP) launch, MTN Nigeria had the largest market share of 49 million subscribers, making it the market leader in the telecommunications industry.

On its heel was Globacom with over 25 million subscriber base, while Airtel Nigeria has well over 20 million, and the Etisalat Nigeria has 13 million subscribers. MNP is a service that enables subscribers to retain their mobile phone number when changing from one mobile service provider to another. The initiative was flagged off by the telecommunications regulator, the Nigerian Communications Commission (NCC) to boost quality of service.

According to findings, Globacom and Etisalat Nigeria are worst hit by the porting, owing to several reasons ranging from poor quality of service to customers not able to have accessible customer care agents to register their complaints. Daily Sun source, who didn’t want his names in print, hinted that Etisalat is also currently raging, and has written a petition to the Advertising Practitioners Council of Nigeria (APCON) over MTN’s controversial advert on “I don port o”. MTN Nigeria used ‘Saka’, Hafis Oyetoro, a former ‘Face of Etisalat Nigeria’, to pass its MNP message to its teeming customers.

“Etisalat has issues that should have been managed before now. I am sure that about a million of its subscribers will have ported. The company will not reveal it and, if the network does not go the extra mile to improve its network, it may experience further depletion. It is not only by wooing subscribers with freebies, there should be a corresponding balance in network improvement,” he declared. He also added that the Second National Operator, Globacom is also experiencing a reduction, which is close to two million because the MNP was just an opportunity for its subscribers to legally move to other networks, saying, “Before now, the network has been poor and nothing significant was done by the company to improve on its network.”

Airtel Nigeria and MTN, according to the source , are also not enjoying the best of times, as their subscriber base have also been down by a million each. However, a stakeholder in the industry, Adebowale Johnson, explained that prior to the MNP introduction, the country has been a multiple network system, where citizens are encouraged to have more than one line by virtue of the poor network being experienced by subscribers. This, he said, is already a lifestyle. He advised that stronger marketing strategies may help the operators not to lose more of its subscribers.

“Like every new thing, people may want to defect to the other network to ascertain whether the network had actually improve or not. Like a Yoruba adage, if a woman has not been married to two husbands, she not know, who is best. “This is what I want to call mass exodus. They may still come back after making their personal decisions. I may not know the exact figures but I know that network operators will be licking their wounds,” he said. Another stakeholder, Obina Obienu, noted that MTN has a wider coverage and that no operator has broken that hold. And that despite the general complaints by subscribers of poor network, most of them have refused to abandon their first line.

“Though, almost everyone has more than one line but there is every indication that the advert may deplete the other’s subscriber base if not well defended. The real business men use MTN network, while most business centres operate from the Globacom platform and Etisalat is more a youth focused network, which have also been captured by MTN,” he added. However, President, Association of Telecommunication Companies of Nigeria (ATCON), Mr. Lanre Ajayi, hinted that it was too early to start making insinuations but that time will tell if truly people may port to MTN.

“I consider that as a creative advertisement, which is just MTN’s strategy. We don’t know other company’s strategies, may be ,we should wait before we start making comparison. But definitely, time will tell,” he assured. Buttressing Ajayi’s point, Ifeanyi Osusueke, a telecoms writer, explained that the advert itself has created different kinds of impression in the minds of people. Maintaining that a number of factors will facilitate porting and not just mere advert campaign.

Executive Secretary of the Nigerian Christian Pilgrims Commission (NCPC), Mr. John Kennedy Opara, reflects on his activities at the commission in this exclusive interview with Sunday Sun.

Opara has to his credit a befitting edifice housing the commission’s headquarters in Abuja. The Aboh Mbaise, Imo State-born Opara said the building brings joy to his heart each time he goes to his office.

He revealed, among other issues, that he goes to work as if it is his last day in office. Hear him: “As a matter of fact, if you look around my office, you will see so many bags. Everyday I come to this office I come with all my bags packed. I drive myself to the office.

“I always tell myself that except the Lord decides otherwise, I don’t have any right or power to stay behind. “So, as you can see, I come to this office with all my bags fully packed. When I close from work, I pack my things again and put them in the car. Even if you announce today that I’m gone, I don’t need to come back here for anything. I simply go from there,” he said.

Opara also gave account of the encounter between Emeritus Catholic Archbishop of Lagos, Anthony Cardinal Okogie and President Goodluck Jonathan in which the former told the President that he was going to win the 2011 election but would not rule. It is interesting and revealing. Excerpts…

How are you coping with the NCPC, packaging Nigerian Christians to Jerusalem?

It has been a wonderful experience. It has been a very trying too, and I want to say with all sense of responsibility and thanksgiving to Almighty God that the Lord has been faithful. I want to say that without Him, I won’t be here. He has assisted the commission to carry on its assignment. It is not an easy one, but I thank God for all the things He has done through us and what He is still doing today.

What would you describe as memorable moment, so far?

The day Mr. President came to commission this beautiful edifice, which is now known as headquarters of the NCPC, it was something we never planned.

You laid the foundation?

Yes. This building belongs to us. Before now we didn’t have a building, we didn’t have a shelter. But thank God for the Hajj Commission that decided to provide us an accommodation. For two years they didn’t allow us to pay one kobo. For two years we shared their accommodation with them and at a stage they realized the place could not take the two organizations and they had to vacate.

That shows that Christians and Muslims can really work together. Yes, we could work together. In fact, at a stage they had to vacate the building to rent another apartment elsewhere so as to allow us use the place. I think I owe it a duty to be grateful to my friend, Bello, and to the entire Hajj Commission members

.What would you say is your low point, so far?

I would say without fear of contradiction that each time we give a deadline and the stakeholders are not able to pay, I feel sad in my spirit because it is a Christian project. It is something that should be uppermost in the heart of Christians. So, when they are unable to fulfill this simple obligation, I get worried. But over a period of time, the Lord has been faithful. He has continuously stabilized us and I thank Him for that.

With your dressing, one would think you are a pastor. Apart from being the NCPC executive secretary, do you engage in any other work?

My life is a life of ministry. I preach and I also make sure I share the good news because what I benefitted in knowing Jesus, I want my friends to benefit also. And I want to share it with them with all sense of joy; the greatest moment of my life is when I am able to win them to Christ, and make them understand that our God can do the impossible.

With your busy schedule, do you have enough time for your family?

It is a very difficult thing for me. I must tell you that my family suffers. But I thank God for the kind of wife He gave me. She has been very understanding and my kids are wonderful. Above all, anytime I have opportunity to spend time with them, I don’t spare it. I make sure I give them the best of attention.

How have you been able to disconnect your office from politics?

One, I am not a politician and I don’t intend to become one. I would rather be a preacher of the gospel and try to serve God than man. I have tried to make sure that our focus is to make Nigerians – politicians, students – morally and spiritually transformed. And we cannot mix this with politics. We must be able to preach the message boldly. But when you mix it up with them, you will be unable to give the message raw the way it should be. So, I believe it is a unique assignment and something God is expecting us to impact on so many lives. God is expecting us to touch so many people and we have the moral responsibility and duty as a commission to help people grow spiritually and by so doing we are able to do what He wants us to do.

How about the issue of self-sponsorship?

That has been my greatest joy because we have been able to minister to some Christians and convinced them to embark on pilgrimage on their own. It has been very wonderful because I told them it is a Christian project. Christians must own it and if they do, they would be able to hold on to that vision and I am happy to say that the number of self-sponsorship has been on steady increase.

Is it morally right for government to sponsor pilgrims?

I do not subscribe to government funding religious activities. But one thing we must take to heart is that the welfare of the citizens is very important to any legacy you want to leave behind. In other words, if you want to leave a legacy, you are leaving it because you want people to be able to maintain that legacy. When you leave a legacy and we do not have sound minds to sustain the legacy, after a while, it would be gone. Every effort you make would go down the drain. So, we advocate that government should be involved especially in the area of consular services and medical. And that is what government is doing at present because there is no way any responsible government would not be interested in the movement of its citizens to another country. As a matter of fact, no country will even deal with you as an individual moving large number of people. But when you are coming as a country, this is where the government comes in. As for funding, people don’t get it right. The Federal Government does not fund individuals on pilgrimage. That, I do not subscribe to. We are trying to change the people of Nigeria. If we have 28,000 Nigerians who are morally and spiritually transformed on each of the trips, you see that over a period of time, millions would be morally and spiritually transformed and they will pursue peace and uprightness. I told you that the Christian Pilgrims Commission and the Hajj Commission stayed together for two years. There was no quarrel and the Hajj Commission that owns the building vacated it to allow us to use the building. This is very rare. This is because we understand ourselves, and if Christians and Muslims should relate that way, this country would be heaven on earth.

How you been able to separate this commission from corruption?

You know corruption is a thing of the mind and we have been trying to get people to be spiritually transformed. When a man is spiritually sound, corruption will not be part of him. He would always live above board because he believes he has a master he must give account to. Corruption is lack of satisfaction and contentment with whatever God has given you. So, we try to make sure people are focused, spiritually-minded to do what God wants them to do. And we have been able preach that to our staff. I usually organize a yearly training with all the staff of this commission to let them know that their lives should be a living example to others.

Is it not possible to have a local carrier airlift pilgrims to the holy land?

Since we came back we have been able to add local content. For the first time, we had Nigerian airlines taking part. But the only unfortunate thing is that the people that usually get the contract do not have their own private jets except Arik. Arik was once approved as the official carrier. In fact, as a matter of responsibility to our country, it is a must that a Nigerian carrier must take part in the airlift of Christian pilgrims. Just like the grand handling, before now, it was only the Israelis and Italians, but now you cannot handle our Christians without the local content.

You said earlier that if pilgrimage becomes a jamboree, you would resign. In all honesty, would you resign if pilgrimage becomes a jamboree?

I am a man under spiritual authority and God called me here to give service, to touch lives spiritually. And the moment we deviate from this, I will be the first to resign. As a matter of fact, you can look around my office and see so many bags. Everyday I come to this with all my bags packed. I also drive myself to the office.

Don’t you have a driver?

I have government drivers, but in my personal car I drive myself to the office bearing in mind it is always my last day in office, except if the Lord decides otherwise.

So, you go to work as if it is your last day in office?

Yes, as if it is my last day, because that is why David said, “Teach me, oh Lord, to number my days that I may apply my heart to wisdom.” I always tell myself that except the Lord decides otherwise, I don’t have any right or power to stay behind. So, I come to this office, as you can see, with all my bags packed. When I close work, I pack my things back and put them in the car. Even if you announce today that I am gone, I don’t need to come back here for anything. I go from there.

You won’t have any regrets?

No, I won’t. The only thing I would say is ‘to God be the glory’, because I believe in divine mandate and assignment.  When God gives you an assignment or position, you don’t struggle to keep it. But when you try to put yourself in a place, each day of your life on that seat is a struggle. But when God gives you a seat, He keeps, equips and empowers you.

Do pilgrims abscond?

Before now, absconding was part of the entire system. But I am happy to say that since we came aboard, we have been able to bring that to zero per cent. And I am also happy to say that even in the last operation, not even one pilgrim absconded. That is why the Italian authorities are commending us. The pilgrims do not appear before Italian authorities to get Schengen visas because they have confidence in our screening team and they believe in us. We have a moral duty to preserve the integrity of this nation. And I always tell the pilgrims that it is not about leaving this country for another. There is no country on the face of the earth that is better than Nigeria. And I always believe that there is nothing wrong in Nigeria that cannot be remedied.

If you quit today, what are the three things you would confidently say you have achieved?

One, I have been able to establish a befitting headquarters building for this commission. And you can see the expansion going on at the back. That is one legacy that anytime I am passing here, I would say ‘to God be the glory’. Two, we have been able to establish six zonal offices with staff running them. Even if there is anything tomorrow, they can comfortably run and move. Three, we have been able to streamline pilgrimages to the extent that Nigerian Christians can plan their own pilgrimage. We have also extended the pilgrimage to three countries. Nigerians go to Israel, Rome and Greece at present. This is just few of the things we have done. Above all, we have brought to zero per cent the possibility of any pilgrim absconding, and that has improved our image before the international community, something to write home about. And I thank God for it.

How do you go about the welfare of pilgrims?

We make sure we give the handlers programme for the pilgrims. We made it clear that Nigerians must be given local foods while in Israel. We also make sure everything is in order in the hotels they stay so that when they come back they are satisfied materially and spiritually and that gives them fulfillment.

Anthony Cardinal Okogie said recently that one tall man called John Kennedy and another person was with President Jonathan when he prophesied that the President was going to win the 2011 election, but would not rule. You are the only John Kennedy I see around the President. What actually took place during that encounter?

You know Mr. President respects our spiritual leaders. He is a very humble man, a very unique personality. So, in one of his usual ways of according respect to these great men, both Muslims and Christians, he decided he had to pay homage to His Eminence, Cardinal Okogie. He was very frank. The Cardinal spoke his mind and the President, a very good listener, listened to him and was very happy. And after all that he prayed for us. I think it was a kind of very cordial and family meeting. I went to pick him from his house for that meeting.

Do you mean the Cardinal?

Yes, and after that I had to take him back.

But how do you see that prophecy?

He is a prophet of God because he is God’s servant. The Bible says when a prophet of God speaks heaven confirms and brings it to pass. And if God has spoken through him, I know God will always bring it to pass. However, I also see that even in the Bible, God may give prophecy to a prophet and decides that when the people or the person concerned prays, for example, the case of Hezekiah, the Lord sent Prophet Samuel to Hezekiah and gave him the message. What happened was that as the prophet of God left Hezekiah, Hezekiah turned to the wall and reminded God of His faithfulness. And the Bible says God sent back the prophet to ‘go and tell my servant that he will no longer die.’ So, I believe when prophecy comes, it is not as if it is a do or die affair. It is not as if it must happen. What happens is that God in His infinite mercy will always find a way to secure His own, find a way to protect His own especially when you humble yourself and pray. The Bible says God now speaks with His children through visions and dreams and when He speaks, it is left for us mortal beings to pray and ask God to guide and direct us.

Would you say the prophecy has been reversed?

You see, it is not that a prophecy from God is time bound. It takes time. It is only God that can determine when it will end and how far it would go. So, we look at it that we are praying and God is in-charge. Jonathan is God’s project. Jonathan is God’s programme for Nigeria and I can comfortably tell you that as at today, there is no Nigerian better fitted for this assignment except him. That is how God has programmed it. And when God finishes with Jonathan, he will go and another person will come. I would rather believe it is better to give him the support he needs to to move forward and at God’s own appointed time, if He raises another prophet or another person to take over, the person will come and take over. But we must understand that he is God’s own project. He is God’s miracle in progress for now for Nigeria and there is nothing anybody can do about it.

From ISAAC ANUMIHE, Abuja

Minister of State for Finance, Yerima Ngama, has put the balance of the excess crude account at $5.27 billion after the sum of N89.738 billion was transferred into it in April, this year.

Addressing newsmen, after the Federation Accounts Allocation Committee (FAAC) meeting in Abuja, the minister also noted that the gross revenue of N621.07 billion received for the month was higher than the N595,70 billion received in the previous month by N25.362 billion.

According to him, this was due to the increased earnings from domestic crude and Petroleum Profit Tax. He, however, said the challenges of production and lifting operation experienced in the previous month have persisted.

Ngama noted that FAAC allocated the sum of N721.51 billion to the three tiers of government for the month of April adding that the amount represents a decrease of N9.628 billion or 1.3 per cent over the N731.133 billion shared in the previous month of March. Giving a breakdown of the allocation, he explained that it shows that N531.332 billion was shared under statutory sources and N54.571 billion was allocated under Value Added Tax (VAT), while N92.436 billion was the augmentation done in the month owing to shortfall.

Also, N35.549 billion was shared under the Subsidy Reinvestment and Empowerment Programme (SURE-P), while Nigerian National Petroleum Corporation (NNPC) paid N7.617 billion as part of the N450 billion debt it owes the federation account. As for the statutory revenue, the federal government got N246.90 billion or 52.68 per cent and states received N125.124 billion or 26.72 per cent while the local governments shared N96.466 billion.

In the same vein, N59.152 billon was shared to the nine oil-producing states based on the 13 per cent principle of derivation. On the Value Added Tax (VAT) revenue which was equally shared, the federal government got N7.85 billion representing 15 per cent; states received N26.194 billion or 50 per cent while local governments got N18.336 billion or 35 per cent.

Meanwhile, Dr Yerima has disclosed that over 350,000 companies in Nigeria evade tax. To this effect, he said, the Federal Government is introducing e-payment system with a view to bringing those companies into the tax net.

In his speech at the workshop of the African Tax Forum organized by the Federal Inland Revenue Services (FIRS), the Minister disclosed that it was regrettable that most companies in Nigeria were not remitting taxes to government adding that something urgently has to be done on this if the economy is to move forward.

National Bureau of Statistics (NBS) has reported a 6.56 per cent real Gross Domestic Product (GDP) growth rate for the first quarter of 2013, as the oil sector recorded production decline during the same period.

According to the Bureau’s result of Establishment Surveys carried out to determine the real GDP growth rate made available to news men yesterday, it stated that on aggregate. the Nigerian economy, when measured by the real GDP growth grew by 6.56 per cent in the 2013 first quarter as against 6.34 percent recorded in the corresponding period of 2012 and 6.99 percent in the 2012 fourth quarter.

The report also said that the nominal GDP for Q1 was estimated at N9,493,779.44 million as against N9,142,858.51 during the corresponding quarter of 2012.

The non-oil sector, the report said, was the major driver of the Nigerian economy in Q1 2013 compared to the corresponding period of 2012. The sector recorded 7.89 per cent growth in real terms in Q1 2013 compared with 8.14 percent in the corresponding period of 2012.

According to NBS, the decline in growth, could be seen in such activities like agriculture, telecommunications, wholesale and retail trade while manufacturing, hotel, building and construction were bright spots for the economy in the period under review. Also, the non oil sector recorded growth in real GPD in the period under focus, whereas the report said the oil sector recorded an average daily production of 2.29 million barrels per day in the first quarter of 2013 as against the 2.35million barrels per day in the corresponding quarter of 2012.

The NBS said these figures, with assorted gas components resulted in a growth rate in real terms of -0.54 percent in oil GDP in Q1 compared with the -2.32 percent for the corresponding period of 2012. The decline was attributed to the oil sector to some levels of disruptions as a result of pipeline vandalisation and bunkering incidents with some oil companies during the period under review.

Besides, the NBS said the sector benefited from the relative stability in international crude oil market price and the exchange rate of the naira against the dollar. In relation to the contribution to the GDP, NBS said the oil sector contributed about 14.75 per cent in Q1 of 2013, compared to the contribution in Q1 2012 which stood at 15.80 per cent.

From ISAAC ANUMIHE, Abuja

As Nigeria’s current external debt profile hits $6.57 billion with the domestic debt rising to N6.5 trillion, Federal Government has dramatically introduced a new structure known as Medium Term Debt Management Strategy (MTDs) (2012–2015) through which it hopes to achieve a balance in public debt portfolio management.

The domestic debt which makes up debts owed local contractors, including bonds issued by government to raise money has suddenly shot up, thus creating public concern that it could get off threshold of sustainability.

According to the Director-General of Debt Management Office (DMO), Dr Abraham Nwankwo, the main purpose of MTDs is to develop a strategy that would meet the financing needs of government at minimum cost; maintain risk at a prudent level and support the development of the market. He explained that the main component of the new MTD is to create a ‘sinking fund’ which is for debt obligations.

“Now that this strategy has been achieved, for every year based on maturity profile, we will be able to advise government how much to provide in the budget cumulatively to be able to address each and every debt when it thus matured. So, there no one single,” the DMO chief said. On the initial seed money for the sinking fund, Nwankwo said that it would be difficult putting a figure on it.

“There is no one single figure we can give now but now that a structure has been approved, the amount to be kept on sinking fund will be based on the debt profile each year and it will be determined based on loan-by-loan basis. The important thing is that, government has established the sinking fund,” he said.

He said government was putting machinery in place for debt sustainability noting that debts should be measured in accordance with assets they procured. “When we are talking of debt sustainability, we should be relating the debt stock with the stock of capital assets that had been created over the years using these borrowed resources.

It’s in that regard that going forward the posture will be targeted at a specific project which is why even if we are going to borrow externally from the international capital market by issuing Eurobond, this could be used in financing power sector development,” Nwankwo, explained.

He listed the benefits of the new debts strategy as including the ability to reduce the amount on debt service on optimal mix between the relatively more expensive domestic debt and less expensive external debt saying that the difference between the domestic and external average cost of borrowing is about eight per cent per annum.

National Co-ordinator of National Poverty Eradication Programme (NAPEP), Alhaji Mukhtar Tafawa Balewa, yesterday, disclosed that about 120 million Nigerians live below N300 per day. Addressing members of Centre for Creative and Leadership Development, who paid him a visit in Abuja, Balewa stated that the situation in Nigeria is different from some countries like India, where there is poverty, but people have something to do to keep them going. But in Nigeria, people are not working and this causes severe security challenges.

“Nigeria’s population is about 170 million, and we have up to 120 million people living below N300 per day. If that is a yardstick upon which to judge poverty, then we are in a very drastic situation,” he said. According to him, NAPEP’ s role has been highly misunderstood because of the flagship role it played where the body provided tricycles to people which is now part of its appellation as Keke NAPEP, adding that the role of the organisation is far beyond giving people temporary succour.

“This misunderstanding about the kind of role NAPEP is playing is undermining the organisation. “Of course, the general image people are having is that we are not better than our flagship project of some years ago called Keke NAPEP. “If anybody thinks of NAPEP they think of Keke NAPEP which is not fair to the intensions of government when they set up the organisation. “NAPEP came to co-ordinate and collaborate with other agencies to ensure that the high level of poverty in Nigeria is reduced.

“There is a lot of youth and women empowerment. There is a lot of need for rural development and to arrest the drift between the urban and rural areas. “Again, there is a lot of negative impact recently from climate change that we are finding with flooding, and the perenial likelihood of it getting worse as a sustainable weather partern change,” Balewa lamented. Quite some time now we are expecting that people are going to be affected over night from having houses over their heads and even children and family being negatively affected by this flooding.

“It was considerable last year. It came as a shock but in response, NAPEP because of its nature as a poverty reduction organization, we set up a mechanism within our organisation to what we call post-emergency programme. This post-emergency programme addresses the lacuna of the gap which exists when emergency relief agencies to leave,” he said.

The National Co-ordinator noted that when the emergency agencies retire, NAPEP takes over to rehabilitate the people who have lost everything they own in life. Earlier, the leader of the centre, Mr Abdullahi Dago had wanted an explanation of NAPEP’s role to the nation and the connection with Keke.