BusinessDay 15 Feb 2018

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34 BUSINESS DAY C002D5556 Thursday 15 February 2018 NEWS Senate adopts new election sequence in... Continued from page 1 them out of order. The APC senators faulted the refusal of Saraki to allow for clauseby-clause consideration of the bill in line with parliamentary procedure. The 10 APC senators include: Abdullahi Adamu, Umar Kurfi, Ovie Omo-Agege, Benjamin Uwajumogu, Binta Masi Garba, Andrew Uchendu, Yahaya Abdullahi, Ali Wakil, Abdullahi Gumel, and Abu Ibrahim. In January, the INEC had fixed the Presidential and National Assembly elections for February 16, 2019, and governorship and House of Assembly poll for March 2, 2019, respectively. However, the House of Representatives approved the re-ordering of sequence of elections by inserting a controversial clause in the 2010 Electoral Act - Section 25. In the proposal, lawmakers FG’s decision to cut import duty hurts... Continued from page 1 toms website shows that imported milk and cream concentrate with code 0402.2100.22 now attracts five percent import duty and a Value Added Tax (VAT) of five percent as against 10 percent duty and five percent VAT recorded some months ago. Key stakeholders in the dairy industry who spoke with Business- Day on the recent tariff reduction say it could halt investments in the sector and progress made thus far in increasing local milk production to meet up with domestic consumption. “The reduction in the tariff from 10 to five percent is a killer decision for a government that is supposed to support investments in the sector. It is a clear indication that the government has no intention to grow the country’s dairy industry,” Muhammadu Abubakar, managing director, L &Z Integrated Farms Limited told BusinessDay. “This means that all the potential investments in the industry will begin to die a natural death because it will be more difficult to compete now. The decision is a disincentive for investment in the sector.” Abubakar explained that it costs an average of N300 to produce a litre of milk in Nigeria as against imported powdered milk which is about N130 per litre even with the 10 percent duty. “Now with the tariffs lowered to five percent it is going to cost less than N100. How do local processors compete with producing a litre of milk at over N300?” he asked. He said the government decision has sent a conflicting signal to the dairy industry as a lot of operators had begun making investments in the sector, thinking that the government is going to hike the tariffs on all imported dairy products, but instead the government has reduced the tariffs. Data from the National Bureau of Statistics (NBS) show N59 billion worth of powdered milk were imported into the country from January through September 2017. An August 2014 report by Agusto & Co. notes that the dairy sector was the second largest segment in the food and beverage industry (behind poultry) in the country, with estimated revenue of N347 billion in 2013, and compounded amended the 2010 Electoral Act by approving that the conduct of National Assembly election will hold first, followed by Governorship and House of Assembly, while the presidential election will be conducted last. Omo-Agege disclosed that 59 senators were opposed to the inclusion of the insertion, adding that any attempt to override the President’s veto would not see the light of the day. Adamu also displayed a copy of his conference report, which he said was not signed by chairman of the Conference Committee, Suleiman Nazif, and his co-chairman, Pwajok Gyang. The ranking lawmaker also listed other committee members that failed to sign the report to include Peter Nwaboashi, Biodun Olujimi, Hope Uzodinma and Ajayi Adeyinka. He said: “We are part of a whole of senators that feel very strongly that annual growth rate (CAGR) of eight percent over the last three years. The sector leads the food, beverage and tobacco sector, say analysts. Nigeria’s dairy industry comprises milk, cheese, yoghurt, icecream, butter and infant formula. The report by Agusto & Co. says that the milk segment remains the largest in the industry, accounting for an estimated 61 percent of the industry’s turnover. “It was a surprise to us in the industry when the tariffs were lowered from 10 to five percent because it does not help the local dairy industry and it also runs counter to the government’s stated efforts to support the sector and create economic environment for pastoralists to settle down and create a market for their milk,” Mezuo Nwuneli, managing partner, Sahel Capital Agribusiness Managers Limited, said in a response to questions. Nigeria’s national dairy output per annum is 700, 000 metric tons while the national demand is put at 1.3 million metric tons annually, leaving a gap of 600,000MT, according to the Federal Ministry of Agriculture. Players in the industry say that the tariff reduction could also intensify the clashes between farmers and herdsmen in the country, saying that it will become difficult for pastoralists to settle down as the market to sell their milk would become less attractive. “We have to brace up for more herdsmen and farmers conflicts because the solution to the crisis involves an economic solution and the economic solution is creating market for the local milk producers which constitutes mainly the herdsmen,” Abubakar said. What industry players expected was that the government would support the sector to bridge the infrastructural gaps in the sector that has led to a cost of production. “Infrastructure in the dairy industry currently is zero and we cannot grow the industry without it. This is what the government is supposed to focus on and not cutting down tariffs,” Abubakar said. Meanwhile, the Senate has condemned the reduction of import duty on powdered milk by the Federal Government from 10 to five percent. •Continues online at www.businessdayonline.com the process by which the so-called conference committee report was laid and considered. We believe the process was rushed. Yes, we may rely on some existing statutes or laws rightly or wrongly but the importance the strategic placing of the bill in question is such that needed no rushing whatsoever, there is no need for the rush, what is right is right. “We believe very strongly that we are against what happened. We stand by that. Incidentally, if you take note of the report that was laid, the report that was circulated the chairman and the co-chairman did not sign. We don’t know why they did not sign the report. Normally, if we are going through due process we need to know why they did not sign. “The bill need better attention and must be fairer in the passage. This is a very partisan report, because from the gesturing it is a pre-determined thing for a political party that is threatened by the APC government.” With the enactment of the bill by the House of Representatives, the next stage is the presentation of the proposal to the President for assent. There are, however, strong indications that the President will withhold his assent when the bill is eventually forwarded to him, even as lawmakers from the two chambers are set to activate Section 58 (5) of the 1999 Constitution (as amended), should the President withhold his assent on the Electoral Act (Amendment) Bill. The section provides that: “Where the President withholds his assent and the bill is again passed by each House by two-thirds majority, the bill shall become law and the assent of the President shall not be required.” The implication is that 73 senators and 240 members of the House of Representatives would be needed to actualise this. But in a swift reaction, Nazif insisted that he signed the report, explaining that the sequence of election is not targeted at anyone. “Let me make it very clear that I have signed on the concurrence committee report. I do not know where that came from but I signed it. This is it, signed by me (displaying the report) and if you go to the Clerk, it is also signed by me. “I am not aware if the sequence of election is being targeted at anybody. What I know is that as Chairman of the Committee on INEC in the Senate, I have a responsibility and I chaired the concurrence committee of both the House and the Senate. “But politics is dynamic. What I know is that there are reasons for elections, people have different reasons for why elections should start from the top to down and from down to top. In the past, we have had elections from the top to down. I don’t know if anybody questioned that. In the past also, we have also had elections from down to top. I don’t know if anybody questioned that,” he said. He cited instances where the presidential elections held last to include the 1992, 1999, 2003 and 2011 general elections. L-R: Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI); Yves Necolet, consul general, Embassy of Switzerland, and Babatunde Ruwase, president. LCCI, during a courtesy visit of the consul general to LCCI Office in Lagos. Valentine Day pushes up prices of perfume... Continued from page 1 day, revealed that prices for perfumes sold between N1,500 and N2,000, were increased by over 80 percent to 100 percent. While retailers boast of increased sales, Nigerians who had thronged the markets to buy gifts for their heartthrobs were forced to pay more, while others left disappointed. Nigerians, who had made plans to feast on love and could not afford the prices of products presented to them, took to Google search engine to put smiles on the faces of their loved ones. As of 2.08pm monitored by BusinessDay, Google ranked Nigeria as the 13th country, two places behind South Africa and five places ahead of Kenya, which came second in Africa, on the number of valentine day messages searches, just as the search for gift dropped. Edo State led the country in the number of searches followed by Lagos and Abuja. Some more operators who spoke with BusinessDay expressed happiness on the level of patronage, especially for beauty products, but confirmed prices for perfumes increment due to high patronage. Judith Ese, assistant supervisor, Neixa Fragrance, in Surulere, said patronage was better compared with last year, which resulted to increase in the prices of fragrance products as demands was high. “In the last two years, Patronage was low because of the recession. The prices of most of our items did not go up but this year we have to increase our prices, because we still have old stocks we bought when dollars was high. We just increased the price of some of our perfumes products from 1700-2000, 3000-3500, some up to 100 percent increment. “However, discounts were offered in most products on displayed, this according to her is driven by demands,” Ese said. Picodi, an online research firm, last week in his report, revealed that perfume was Nigerians’ most preferred gift on Valentine Day. The research, which surveyed over 5,600 people from 32 different countries, including Europe, Asia, Africa, South and North America, noted that out of 83 percent of Nigerians, 50 and 58 percent of male and females, respectively, preferred given out perfumes among other gifts. Kelechi Chukuji, a banker who had visited a market store to buy gift for his fiancée, said he was shocked that the prices of her preferred perfumes had shot up by almost 32 percent. “The last time she told me she got the perfume was for 6500, am surprise it has increased to 7000 between short period. I had no choice but to add it to the gifts I have prepared for her.” Private sector raises... Continued from page 4 assent. Some retrogressive forces have gone behind the stakeholders after the public hearing on the bill to insert a 0.5% tax on companies to fund the establishment of a planned commission/agency that will undertake responsibilities under the law,” Oshinowo said. Oshinowo said while the private sector welcomed and supported the introduction of a dispensation where an institution would exist to promote fair, efficient and competitive markets in the Nigerian economy, at no time, during the public hearing on the bill, did they discuss the imposition of 0.5% profit after tax on companies operating in Nigeria, as a source of funding the commission. “This provision was not contained in the draft bill that was exposed to the public. So, what could have been the source of this obnoxious provision that seeks to further drain life out of a struggling and comatose private sector that is still labouring under the unbearable weight of multiple and overlapping taxes and levies? “This surreptitious insertion is a fraudulent act, which we seriously frown at. We do not support it. We will not accept it. If not removed, it may signify the death knell for this intended dispensation, as the private sector will not pay an unnecessary additional levy/tax.”
Thursday 15 February 2018 CBN digitalises Anchor Borrowers Programme, enlists participating farmers ... spends N55bn so far ONYINYE NWACHUKWU, Abuja Central Bank of Nigeria (CBN) has introduced a new technology to guide input distribution to farmers under its Anchor Borrowers Programme, which it has spent some N55 billon so far to execute and create several jobs. The new scheme has seen biometrics information of the farmers taken, their farms mapped and biometric cards produced for each farmer, to enable their easy identification during the distribution of inputs by the service producers. CBN governor, Godwin Emefiele, speaking at the flagoff ceremony in Abuja, for this year’s dry season farming, said the pilot phase, which was flagged was to build a national database for small holder farmers, enhance efficiency of input distribution and eliminate ghost farmers. Represented at the event by his Special Adviser on agriculture, Olatunde Akande, Emefiele said the service providers had already mapped all farmlands to be used for this season in order to avoid false claims by the participating farmers. He noted that the Federal Capital Territory farmers would be used as pilot for the new innovation introduced into the Anchor Borrowers Scheme, and that the process will spread across several states, which have expressed interest to participate. At the event flagged off by the governor, the input distributed included water pump, NPK fertiliser, organic fertiliser, urea fertiliser, and herbicide. The service providers equally provided tractors that would be used for ploughing and harrowing. Reps flag-off probe of over $21bn crude oil revenue loss KEHINDE AKINTOLA, Abuja Ad-hoc committee investigating the loss of crude oil worth over $21 billion and huge debts being owed indigenous companies by International Oil Companies (IOCs) flaggedoff its legislative business on Wednesday. Daniel Reyenieju, who chaired the inaugural meeting of the Ad-hoc Committee, reiterated the resolve of the committee to ensure transparency and fairness to all the stakeholders. “We are expected to investigate the operations of the Deep Offshore and Inland Basin Production Sharing Contracts Act (PSC), as it concerns the NNPC and IOCs towards determining the reasons for the loss of $21 billion, enquire why appropriate steps were not “All these inputs form part of the total loan due to the farmer, thereby eliminating the old ways of distributing cash directly to farmers,” the governor stated. The Anchor Borrowers’ Programme (ABP) of the CBN has entered another phase with the coming on board of board, members of Rice Farmers Association of Nigeria (RIFAN) . Under the new arrangement unfolded yesterday, CBN credit facility to RIFAN would be digitalised both in inputs and credit facility. Speaking in Abuja at a separate meeting with RI- FAN executive, Akande, said the partnership with RIFAN remains key, noting that it would help in digitalising loan process for smallholder farmers. He said the bank estimated that, an additional 2 million tons of rice would be added in to national rice production using digitalised mechanism, which would be made available to RIFAN members. He said the collaboration would help in monitoring farmers closely by ensuring they get inputs, extension services and other incentives needed to achieve bumper harvests. He said the bank would partner with other commodity associations like maize, cassava, millet, sorghum and other staple foods to provide employment, reduce food import, boost export and earn foreign exchange. “The ABP started in November 2015. Under two years, we decided to upscale it. We’ve decided to collaborate with RIFAN but we’ll also partner with maize, cassava, sorghum, etc, using commodities associations,” he explained. taken promptly and over an inordinately long period to remedy the situation which to the loss and possibly recover the revenue. “Accordingly, the House, requires the Minister of State for Petroleum Resources to provide it with details of financial transactions between the NNPC and IOCs during the period. “Review the PSC, the Joint Operating Agreement and other relevant agreements, with the view to regularising all the anomalies that might have led to the loss of revenue. “In view of the above, the Ad-hoc Committee hereby call on all local companies being owed, to furnish it with details of their respective transactions or contracts,” the Delta lawmaker said. The affected companies are therefore required to Akinwunmi Ambode, governor, Lagos State (m); Abia Nzelu, executive secretary/CEO, Committee Encouraging Corporate Philanthropy (CECP) (3rd r); Kehinde Bamigbetan, commissioner for information & strategy (2nd r); Eniola Erinosho, project director, Mobile Cancer Centre (r); Jide Idris, commissioner for health (3rd l); Okunade Ojengbede, chief executive, Bridgevine Resources Limited (2nd l); Yewande Ojengbede, executive director, Bridgevine Resources Limited (l), during the donation of the Mobile Clinic Cancer Centre at the Lagos House, Alausa, Ikeja, Lagos. Nigeria’s food inflation decelerates to 18.9% as prices moderate CYNTHIA EGBOBOH, Abuja From 19.42 percent in December 2017, Nigeria’s food inflation decelerated in January to 18.92 percent, the lowest in 10 months as prices of locally produced food items moderated, according to the National Bureau of Statistics (NBS). The NBS also said headline inflation equally dropped slightly by 0.24 percent in January 2018 to 15.13 percent from 15.37 percent recorded in December 2017. This makes it the twelfth consecutive slowdown in the headline year-on-year inflation since January last year. In its Consumer Price Index report released on Wednesday, the bureau said, “High year-on-year food prices and food price pressure continued into December though generally at a slower pace year on year. “The rise in the food index was caused by increases in prices of imported food in general as well as bread and cereals, milk, cheese and submit 10 copies of contract related documents to the Secretariat on or before 12noon, 27th of February 2018. He added that the second referral was to “investigate the huge debts being owed local companies and indigenous contractors by IOCs and gas companies with the view to ensuring that such debts are paid promptly.” According to him, the Ad-hoc Committee is expected to submit its report within four weeks. Also speaking, Johnson Oghumah (PDP-Edo) and Evelyn Oboro (PDP-Delta), explained that the idea behind the terms of reference was for the House to use its legislative oversight to strengthen indigenous companies whose works in the oil and gas sector have largely gone unrewarded. eggs, Vegetables, Fish, Coffee tea and cocoa, meat, Potatoes yam and other tubers and Oil and fats. “The Food Index increased by 18.92 percent (year-onyear) in January 2017, down from the rate recorded in December (19.42%),” the statistics office stated. It said on a month-onmonth basis, the Food sub-index increased by 0.87 percent in January 2018, down by 0.29 percent from 0.58 percent recorded in December. The NBS said increases were recorded in all Classification of Individual Consumption according to Purpose (COICOP) divisions that yield the Headline Index. On a month-on-month basis, the Headline index increased by 0.80 percent in January 2018, 0.21 percent points higher from the rate of 0.59 percent recorded in December 2017. The percentage change in the average composite CPI for the twelve-month period ending January 2018 over the average of the CPI for the previous twelve-month period KEHINDE AKINTOLA, Abuja C002D5556 was 16.22 percent, showing 0.28 percent point lower from 16.50 percent recorded in December 2017. While urban inflation declined to 15.56 percent in January 2018 from 16.78 percent recorded in December 2017, rural inflation rate also eased by 14.76 percent in January 2018 from 15.02 percent in December 2017. On month-on-month basis, the urban index rose by 0.83 percent in January 2018, up by 0.17 from 0.66 percent recorded in December 2017, while the rural index also rose by 0.77 percent in January 2018, up by 0.23, when compared with 0.54 percent in December 2017. The corresponding twelve-month year-on-year average percentage change for the urban index is 16.55 percent in January 2018. This is less than 16.92 percent reported in December 2017, while the corresponding rural inflation rate in January 2018 is 15.89 percent compared to 16.10 percent recorded in December 2017. On the other hand, core BUSINESS DAY 35 NEWS inflation, which excludes the prices of volatile agricultural remained unchanged at 12.10 percent, similar to rate recorded in December 2017. On a month-on-month basis, the Core sub-index increased by 0.68 percent in January 2018, higher from 0.51 percent recorded in December. The average 12-month annual rate of change of the index was 13.01 percent for the twelve-month period ending January 2018; this is 0.45 percent points lower than 13.46 percent recorded in December 2017. NBS said the highest increases were recorded in prices of fuel and lubricants for personal transport and transport equipment, vehicle spare parts, accommodation services, maintenance and repair of personal transport equipment, Appliances articles and products for personal care, hotels and restaurants, hairdressing salons and personal grooming establishments, clothing materials and other articles of clothing, garments, nondurable household goods and solid fuels. Reps score self high on anti-corruption crusade ... seek more funding for judiciary House of Representatives on Wednesday scored itself high in the ongoing fight against corruption, as it warned against diversion of funds appropriated to the judiciary. Aminu Shehu Shagari, chairman, House Committee on Federal Judiciary, who stated this in Abuja, during the 2018 budget defence of National Judicial Council (NJC), harped on the need for effective preparation for the 2019 general elections. Shagari, who harped on the need for judicious utilisation of funds appropriated for various projects in 2018, reiterated the Committee’s resolve to ensure accountability of public fund allocated to the judiciary arm of government. While commending President Muhammadu Buhari for sustaining the N100 billion allocated to the judiciary since last year, the Sokoto lawmaker called for improved been budgetary allocation in the succeeding years. “As the representatives of the people, the National Assembly is concerned about judicious use of funds. That is why we ensure every year that we conduct budget defence and perform our country oversight function painstakingly. “Some of the exposure of corruption that has been made of recent cannot be divorced from the oversight function of the Parliament. We are determined to improve on our oversight function so that government can deliver services that will impact on the lives of the citizens significantly. “Unfortunately, our well-intentioned efforts are misrepresented. We are not meddlesome interlopers; we are working in the spirit of the doctrine of separation of powers for the people who have elected us. “This Committee through oversight will ensure that there is eagle-eyed monitoring of implementation of this budget, especially to avoid illegal diversions and mismanagement of resources. “However, this must not be misconstrued as the Legislature interfering with the operations of the judiciary, the Committee shall cooperate with the Judiciary to deliver on its Constitutional mandate but shall at the same time hold accountable by ensuring that available scarce resources are judiciously utilized,” Shagari told NJC chief.
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