BNET Nigeria News Update

August 2017

whole—and would remain negative for about a third of HIGHLIGHTS the countries in the region. “The slight upward revision to 2017 growth relative to the Nigeria’s economic growth to April 2017 WEO forecast reflects a modest upgrading of growth prospects for South Africa, which is experiencing a overtake South Africa next bumper crop due to better rainfall and an increase in mining output prompted by a moderate rebound in year commodity prices.

“However, the outlook for South Africa remains difficult, with elevated political uncertainty and weak consumer and business confidence, and the country’s growth forecast was consequently marked down for 2018,” it added. July 2017 It urged Nigeria and other commodity exporters to continue to adjust to lower revenues, while diversifying The International Monetary Fund (IMF) on their sources of growth over time. Monday predicted that the Nigerian economy would expand by 1.9 per cent in 2018, higher than the 1.2 per “Oil prices have receded, reflecting strong inventory levels cent it estimated for South Africa. in the United States and a pickup in supply. Headline inflation also generally softened as the impact of the In addition, the multilateral institution projected that commodity price rebound of the second half of 2016 Nigeria would exit the biting economic recession this year faded, and remains at levels well below central bank with a slim economic growth of 0.8 per cent, just as it targets in most advanced economies. predicted that South Africa, would also record one per cent growth in its Gross Domestic Product (GDP) this year. “Core inflation has remained broadly stable. It has largely been stable in emerging economies as well, with a few, The fund made the predictions in its World Economic such as Brazil and Russia, witnessing strong declines.” Outlook (WEO) for July 2017, titled: ‘A Firming Recovery,’ that was obtained on its website. According to the report, capital flows to emerging economies have been resilient in the first few months of The Nigerian economy sank into its worst economic 2017, with a notable pickup in non-resident portfolio recession in 29 years last year and has seen government inflows. pursuing expansionary fiscal policies to reflate the economy. It noted that while risks around the global growth forecast appeared broadly balanced in the near term, they Similarly, South Africa entered recession for the first time remained skewed to the downside over the medium term. in eight years in 2017; data from Statistics South Africa had shown last month. “Projected global growth rates for 2017–18, though higher than the 3.2 per cent estimated for 2016, are below pre- But the latest WEO stated that in sub-saharan Africa, the crisis averages, especially for most advanced economies outlook remains challenging. and for commodity-exporting emerging and developing The report anticipated growth in the continent would rise economies.” in 2017 and 2018, but would barely return to positive The report stated: “Among the former, many face excess territory in per capita terms this year for the region as a capacity as well as headwinds to potential growth from

1 aging populations, weak investment, and slowly advancing The Nigerian Stock Exchange (NSE) All-Share Index slid 2.6 productivity. per cent to close at 33,477.89, ending a five-day winning streak. Similarly, market capitalisation fell by the same “Reforms to boost potential output are of the essence, margin from N11.89 trillion to close at N11.58 trillion. and slow aggregate output growth makes it even more important that gains are shared widely across the income On the banking index, Skye Bank Plc shed 5.0 per cent, distribution,” it stated. while EcoBank Transnational Incorporated and FBN Holdings Plc fell by 4.9 per cent apiece. According to the report, financial stability risks needs close monitoring in many emerging economies. Diamond Bank depreciated by 4.6 per cent, just as Zenith Bank Plc and Access Bank Plc went down by 3.9 per cent “Short-term risks are broadly balanced, but medium-term each. Guaranty Trust Bank Plc and Fidelity Bank Plc also risks are still skewed to the downside. fell by 2.5 per cent and 1.5 per cent, respectively. “Lower commodity prices would further exacerbate However, the volume and value of trading rose by 29.7 per macroeconomic strains and complicate adjustment needs cent and 52.1 per cent, respectively, to 508.7 million in many commodity exporters.” shares worth N6.4 billion, from 392.268 million shares valued at N4.217 billion traded on Tuesday. Stocks end five-day rally as MSCI on Tuesday said it was undertaking an index review of Nigeria, China, Saudi Arabia and Argentina, and was MSCI defers decision on slated to announce its decision that night. Nigeria Nigeria was under review for possible demotion from the MSCI’s frontier markets index to “standalone” status. Market analysts had indicated that the newly introduced Investors’ and Exporters’ (I&E) foreign exchange window targeted at foreign portfolio investors could earn Nigeria

reprieve from being demoted from the MSCI’s frontier June 2017 markets index. This, according to the index provider, stemmed from “continuous deterioration of the market accessibility” after the introduction of restrictions on foreign currency trading in 2015. Eleven Lagos-listed stocks on the Nigerian Stock Exchange (NSE) are currently on the MSCI Frontier Markets 100 index with a weighting of around seven per cent. That is the fourth largest after Kuwait, Argentina and Vietnam. MSCI eventually announced its decision to delay a potential reclassification of its Nigeria frontier market index to “standalone” market status till November. Nigerian stocks fell 2.6 per cent Wednesday after global The delay would temporarily save Nigeria from the index provider, MSCI, said it would leave the country in its ignominy of another removal, having been delisted by U.S. frontier index until at least November, when it will again investment bank, JP Morgan & Chase, from its assess investor access to the market. Government Bond Index for Emerging Markets (GBI-EM) in MSCI said Nigeria would remain a frontier market, with the September 2015, and Barclays from its emerging markets possibility of being downgraded to “standalone” status, local currency government bond benchmark in February leading shares to retreat. 2016. According to Reuters, the index of Nigeria’s top 10 banks, In a statement on the results of the MSCI 2017 “Market its relatively liquid sector, shed 2.6 per cent partly on the Classification Review”, obtained Wednesday, the index MSCI news, and after Etisalat Nigeria failed to agree a debt provider said: “To date, investors seem to be cautiously renegotiation deal with lenders. 2 optimistic on the effectiveness of this new window but still Consequently, MSCI plans to add 222 China A Large Cap require more time to test it further.” stocks, representing on a pro-forma basis approximately 0.73 per cent of the weight of the MSCI Emerging Markets It added: “As a reminder, the Central Bank of Nigeria (CBN) Index at a 5 per cent partial Inclusion Factor. pegged the local currency to the U.S. dollar in the first half of 2015, resulting in a sharp decline in liquidity on the Atlas Mara to Increase UBN Stake foreign exchange market, particularly at the beginning Meanwhile, global financial services holding firm, Atlas 2016. Mara Ltd., which has dropped almost 80 per cent on the “Hence, the ability of international institutional investors London Stock Exchange (LSE) since an initial public offering to repatriate capital has been significantly impaired to a led by co-founder Bob Diamond, plans to raise more than point where the investability of the Nigerian equity market its market value by selling a 35 per cent stake to Fairfax is being questioned. Africa Holdings Corp. “Additionally, the decision on the potential removal of the The firm, which specialises in bank acquisitions in Africa, MSCI Nigeria Index from the MSCI Frontier Markets Index expects to get $200 million from selling new stock to has been delayed to November 2017 to allow more time existing shareholders and Fairfax Africa and will also issue for international institutional investors to better assess the a fresh convertible bond to the Toronto-based investment effectiveness of the new FX trading window introduced by company, Atlas Mara said in a statement Wednesday. the Central Bank of Nigeria.” Atlas Mara will use the proceeds to boost its holdings in Last April, the CBN had introduced a new FX trading Union Bank of Nigeria Plc to 44.5 per cent from about 31 window for investors and exporters aimed at facilitating per cent, reported Bloomberg Wednesday. the repatriation of capital. Atlas Mara, which owns banks in seven African countries, The CBN further recently revealed that cumulative has plunged in value since its December 2013 IPO after transactions on the new I&E window had risen to $2.2 growth across the continent slumped and currencies billion, from about $1 billion last month. weakened amid a commodities rout. CBN interventions in the I&E window have dwindled to Diamond, 65, in February ousted Chief Executive Officer below 30 per cent, enabling participants to freely trade John Vitalo and pledged to cut annual operating costs by currencies at a market determined rate. $20 million after rising expenses threatened the company’s ability to expand through acquisitions. Alongside Nigeria, MSCI also announced that the MSCI Argentina Index will not be reclassified to emerging Union Bank, Atlas Mara’s single biggest investment in markets status, as investors expressed concern that the Africa, is Nigeria’s worst-performing bank stock this year. It recently implemented market accessibility improvements, announced plans to raise capital through a rights issue in including the removal of capital controls and FX November as the country’s Tier 2 lenders struggled to restrictions, needed to remain in place for a longer time cope with a contraction in the economy of Africa’s biggest period to be deemed irreversible. oil producer. Consequently, the MSCI Argentina Index will remain on the Atlas Mara agreed to acquire an indirect 13.4 per cent review list as part of the 2018 Annual Market Classification shareholding in Lagos-based Union Bank from the Review. Clermont Group for $55 million, it said. The index provider also announced that beginning from Union Bank is going through regulatory approvals and will June 2018, it will include China A shares in the MSCI then start the share sale, spokeswoman Ogochukwu Emerging Markets Index and the MSCI ACWI Index. Ekezie said. This decision, it explained, has broad support from “A strategic partnership with Fairfax Africa creates a strong international institutional investors with whom MSCI relationship between two like-minded, long-term investors consulted, primarily as a result of the positive impact on in Africa,” Atlas Mara said. “Each is focused on capitalising the accessibility of the China A market of both the Stock on the long-term growth potential of Africa and provides Connect programme and the loosening by the local permanent capital to support growth.” Chinese stock exchanges of pre-approval requirements The partnership with Fairfax Africa, which last year bought that can restrict the creation of index-linked investment Zurich Insurance Group AG’s South African business and vehicles globally.

3 rebranded it Byte Insurance, will give Fairfax four of the macroeconomic projections, and review reform nine seats on Atlas Mara’s board. implementation. A new management incentive plan will also be put in He stated that at the end of the visit, Mati, who is the place, while Diamond will continue as Atlas Mara’s Senior Resident Representative and Mission Chief for executive chairman, the company said. Nigeria at the IMF, issued the statement. Existing investors face a dilution of about 35 per cent, The team, according to the statement, noted that according to data compiled by Bloomberg. economic activity contracted in the first quarter of the year by 0.6 per cent, mainly as maintenance stoppages Fairfax Africa agreed to buy at least 30 per cent of the reduced oil production. $100 million of new shares at a price of $2.25 apiece, representing an implied purchase price of 0.33 times book It said: “However, following four quarters of negative value, the company said in a separate statement. growth, the non-oil economy grew by 0.6 per cent (year- on-year), on the back of a rebound in manufacturing and Atlas Mara’s stock has traded at an average this year of continued strong performance in agriculture. Various $2.26, according to data compiled by Bloomberg. The indicators suggest an uptick in activity in the second shares rose 1 per cent to $2.54 as of 1.05 p.m. in London quarter of the year. Wednesday, giving the company a market value of $197.5 million. “Helped by favourable base effects, headline inflation decreased to 16.1 per cent in June 2017 but remains high “Banks are at the forefront of economic development in despite tight liquidity conditions. sub-Saharan Africa,” Prem Watsa, Fairfax Africa’s chairman, said in the statement. “Preliminary data for the first half of the year indicate significant revenue shortfalls, with the interest-payments “Atlas Mara represents a unique opportunity to invest in to revenue ratio remaining high (40 per cent at end-June) many profitable banks in the region at a very attractive and projected to increase further under current policies. valuation,” he stated. High domestic bond yields and tight liquidity continue to crowd out private sector credit. Nigeria’s economy remains “Given Nigeria’s low growth environment and the banking system’s exposure to the oil and gas sector, non- challenging despite signs of performing loans increased from 6 per cent in 2015 to 15 per cent in March 2017 (8 per cent after excluding the four relief – IMF undercapitalised banks).” The IMF team noted that faced with these challenges, the federal government started implementing a number of important measures, adding that the Economic Recovery and Growth Plan (ERGP) was driving the diversification strategy, and security in the Niger Delta improved through August 2017 strengthened engagement. It said: “The new Investor and Exporter FX window has The International Monetary Fund (IMF) has declared that provided impetus to portfolio inflows, helped increase Nigeria’s economic backdrop remains challenging, despite reserves above $30 billion, and contributed to reducing some signs of relief in the first half of 2017. the parallel market premium. Important steps have also It also noted that near-term vulnerabilities and risks to been taken in implementing the power sector recovery economic recovery and macroeconomic and financial plan, introducing a voluntary income and asset declaration stability remained elevated. program and moving forward the 60-day national action plan to improve the business environment. These were part of the preliminary findings following the visit of an IMF staff team to Nigeria. “Progress is also ongoing within the oil and energy sector through the implementation of a new funding mechanism According to a statement by the IMF Press Officer, Mr. for cash calls,” it stated. Andrew Kanyegirire, the staff team led by Amine Mati visited Nigeria between July 20 and 31, 2017 to discuss It, however, pointed out that near-term vulnerabilities and recent economic and financial developments, update risks to economic recovery and macroeconomic and 4 financial stability remain elevated, adding that at 0.8 per stakeholders forum on EU-ECOWAS Economic Partnership cent, growth in 2017 would not be sufficient to make a Agreement in Lagos, Wednesday. dent in reducing unemployment and poverty. According to him, signing the EPA would accelerate “Concerns about delays in policy implementation, a Nigeria’s industrial development, discard EU tariffs on reversal of favourable external market conditions, possible Nigerian exports, and protect domestic industries, shortfalls in agricultural and oil production, additional agricultural and consumer products. fiscal pressures, continued market segmentation in a foreign exchange market that remains dependent on “All the goods that Nigeria can produce are excluded from central bank interventions, and banking system fragilities the list to protect your industries and the goods to be represent the main risks to the outlook,” the IMF said. imported are capital goods, machinery and inputs that are useful for the industrial sector. All West African exports It pointed out that acting on an appropriate and coherent will gradually reduce duties on 75 per cent of EU imports set of policies to enhance an economic recovery remains over a long transition period of 20 years,” he said. urgent. Amato said manufacturers would also benefit from lower According to the IMF, “This includes implementing input prices under the agreement, adding that EPA would immediately, specific priorities that will help achieve the enhance cooperation on issues such as standards, trading, goals of the ERGP. In the near term, a stronger push for agriculture, investment and customs cooperation. front-loaded fiscal consolidation through a sustainable Also speaking at the event, the ECOWAS Commissioner, increase in non-oil revenues would be needed to create Trade, Customs and Free Movement, Laouali Chaibou, said space for infrastructure spending, social protection, and private sector credit. the overall objective of the stakeholders’ forum was to sensitise key stakeholders on the content of the EPA, in “This should be simultaneously accompanied by a order to better understand and disseminate factual monetary policy that avoids direct financing of the information. government and is kept sufficiently tight, a unified and He said the advantages offered by the EPA tend to make market-based exchange rate, and rapid implementation of the West Africa region the production centre for export to structural reforms. “Pursuing these policies would help reduce Europe, pointing out that the integration of ECOWAS and macroeconomic vulnerabilities and create an environment Nigeria in the global value chains involves the ability for for a diversified private-sector led economy.” Nigeria to attract investments from all walks of life either to transform local raw materials or to transform semi- The statement said while in Nigeria, the IMF team held finished products, saying that the EPA is one of the productive discussions with senior government and instruments to achieve this. Central Bank of Nigeria (CBN) officials. It also met with members of the National Assembly, representatives of the “The ECOWAS commission remains committed to building banking system, private sector, civil society and West Africa’s capacity on the EPA. We believe that the international development partners. different stakeholders gathered here have a critical role to play in this process,” he said. According to the statement, the views expressed by the The President, LCCI, Chief Nike Akande, said the chamber IMF staff do not necessarily represent the views of the IMF’s Executive Board, adding that the IMF mission team had followed the debate on the EPA, maintaining that as will not result in a board discussion. members of the Organised Private Sector (OPS), it deemed it fit to provide a platform where all stakeholders could EPA Vital for Nigeria’s Economic Diversification meet and discuss the issues. The European Union (EU) and ECOWAS Commission have “There are arguments for and against Nigeria’s urged the managers of the Nigerian economy to sign the endorsement of the EPA, but we believe we can find a Economic Partnership Agreement (EPA) to fast-track its middle ground. In international trade, competitiveness is quest for economic diversification and regional paramount for any country to get a fair deal. We would, integration. therefore, continue to stress the imperative of an enabling environment to deepen the competitiveness of firms in The Head of Trade and Economic Section, EU Delegation to Nigeria,” she said. Nigeria and ECOWAS, Filippo Amato, gave the charge to the Lagos Chamber of Commerce and Industry (LCCI), Meanwhile, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines 5 and Agriculture (NACCIMA), Chief Alaba Lawson, has said He revealed that there was considerable interest from as a country in the process of diversifying its economy, investors from all over the world, with the issue attracting protectionism might hamper Nigeria’s quest to achieve a initial orders of about 190 per cent of the offered amount. sustainable economy, stressing that at the same time, without adequate room to grow, certain sectors of the Final subscriptions were about 130 per cent of offer at the economy might be scuttled by global competition before final price for the transaction. they even got a chance to develop. “The diaspora bond has opened a new source of financing She said the European Union Partnership Agreement (EPA) for the Federal Government of Nigeria for funding projects offers a means of achieving Nigeria’s goal of diversification for the development of the country. by shifting Africa, Caribbean and Pacific (ACP) groups of “This new window further enhances funding liquidity and states, which Nigeria could benefit from, but, however, flexibility of the Nigerian economy, which are necessary stated that the challenges facing the real sector such as characteristics as the country gathers momentum towards poor infrastructure, high-interest rates and a devalued the attainment of advanced economy status,” he said. currency, make it difficult for the real sector to take full advantage of the EPA. Nigeria is the first African country to issue a bond targeted at retail investors in the United States, a market highly “The Nigerian economy stands a chance of truly benefiting regulated by the United States Securities and Exchange from the agreement if the right measures are put in place Commission (U.S. SEC). first, as output from many sectors will be able to compete with imports from the EU. Consequently, we advocate that The only previous U.S. SEC registration for an African the EPA be put on hold until the infrastructure deficit country was targeted at institutional investors. challenge is properly addressed,” she said The issuance of a bond registered by the U.S. SEC provides an opportunity to access a wide range of investors, Nigeria’s first diaspora bond Nwankwo explained. With this development, Nigeria can now routinely access successfully raises $300 million funds from private banks and wealth managers in the U.S. and European markets: this opportunity is not available to other developing countries that have only issued Eurobonds. Reacting to the successful debt raising, the Minister of Finance, Mrs. Kemi Adeosun, said: “To have received the June 2017 approval of the U.S. SEC was indicative that the highest level of transparency and accountability in the economic There was cause for celebration Monday, when the federal process has been attained.” government issued its first diaspora bond in the She explained that the bond should positively impact the international capital market, raising the sum of $300 country’s credit rating, transparency rating and financial million at coupon rate of 5.625 per cent for a tenor of five market development index rating. years. “The Diaspora Bond is the first bond issued by an African The Director General of the Debt Management Office sovereign registered with both the U.S. SEC and the United (DMO), Dr. Abraham Nwankwo, explained in a statement Kingdom Listing Authority (UKLA) and targeted at retail Monday that the diaspora bond, which was 130 per cent investors,” she stressed. subscribed, was targeted principally at Nigerians abroad, to provide them with the opportunity to contribute to With the successful issuance of the debut Diaspora Bond, national development. Nigeria will establish a programme for raising funds from Nigerians and Friends of Nigeria in Diaspora, as an avenue According to Nwankwo, the bond was structured as a for continuous participation in the development of the retail instrument to appeal to a wide range of investors economy. and was offered through private banks and wealth managers, rather than institutional investors, which Market experts also hailed the move by the country, normally deal in large volume transactions. pointing out that Nigeria was able to raise the sum under the very restricted U.S. retail market.

This, according to experts, opened new window for programmed sourcing of diaspora funds. “Unlike the Eurobond which restricts you to only institutional investors, to be authorised by U.S. and European regulators to issue a retail product means you can now approach wealth managers and private banks. In short, you have no more real restrictions,” one analyst who preferred not to be named, explained. The international Joint Lead Managers to the issue were Bank of America Merrill Lynch and the Standard Bank of South Africa Limited. But the decision of the JMMC came on the heels of reports The Nigerian Joint Lead Managers were First Bank of that Nigeria’s attempt to grow the volume of crude oil it Nigeria Limited and United Bank for Africa Plc. produces every day has suffered a setback, following the attack by militants on the Trans-Niger crude oil pipeline in Prior to its issuance, the presidential aide for foreign the western Niger Delta early Monday, resulting in the affairs and diaspora, Hon. Abike Dabiri-Erewa, had urged shut in of 150,000bpd. all Nigerians to take advantage of the first ever diaspora offer by buying into the bond. OPEC and non-OPEC producers led by Russia had agreed to cut oil output by a combined 1.8 million barrels per day She said her office and Nigerians in the diaspora were from January 2017 until the end of March 2018. excited about the offer, adding that it was a unique way of lubricating the interest of Nigerians abroad to participate However, Libya and Nigeria were exempt from the in the development projects being carried out by the production cap to help their production to recover from Muhammadu Buhari administration. destructions caused by internal strife. Preparatory to the debt issuance, Nwankwo had led the But in a communiqué issued at the end of Monday’s federal government delegation, comprising officials of the meeting, hosted by the Russian Federation, the JMMC said DMO, Ministry of Finance, Central Bank of Nigeria (CBN), it welcomed the flexibility of Nigeria in this regard, “which and the Budget Office of the Federation on investor despite its commitment to recover its pre-crisis production roadshows that took place in major cities of the world, level, voluntarily agreed to implement similar OPEC including London, New York, Miami and Geneva. production adjustments as soon as its recovery reaches a sustainable production volume of 1.8 million barrels per day”. Nigeria agrees to OPEC oil The JMMC, however, did not back capping Libyan output, output cap of 1.8 million bpd saying its production was unlikely to exceed 1mbpd in the near future, compared to its capacity of 1.4m-1.6mbpd before unrest erupted in 2011 and plunged the nation into chaos.

July 2017 The meeting reviewed the June 2017 report as well as the first six months of the Declaration of Cooperation, as The Organisation of Petroleum Exporting Countries (OPEC) submitted by the Joint OPEC and Non-OPEC Technical and non-OPEC producers, led by Russia, have approved Committee (JTC). the decision of the federal government to cap Nigeria’s oil Having reviewed the report of the JTC, including the production at a sustainable volume of 1.8 million barrels presentations made by the representatives of Libya and per day (mbpd). Nigeria on their production recovery plans, prospects, and The Joint OPEC and Non-OPEC Ministerial Monitoring challenges, OPEC and non-OPEC producers said they Committee (JMMC) Monday held its fourth meeting in St. acknowledged the upside limitations of both countries Petersburg, Russia, where it reviewed the June 2017 beyond their current production levels. report, and also listened to the presentations made by the “Once their production levels stabilise, participating representatives of Libya and Nigeria on their production producing countries should further cooperate in a manner recovery plans, prospects and challenges. that contributes to the stabilisation of the market. 7

“The JMMC will continue to monitor and recommend Energy Minister Khalid al-Falih that the Kingdom’s exports further actions including the holding of an extraordinary would fall to 6.6mbpd in August as demand at home was conference of the 24 producing countries if needed,” said rising, effectively representing a cut of 1mbpd year-on- the communiqué. year. The committee noted that the oil market was making Oil Militancy Knocks off 150,000bpd steady and significant progress towards rebalancing. But as news of Nigeria’s acceptance to cap output at a According to the communiqué, this assertion was based on sustainable 1.8mbpd was announced, the country’s target the report of the JTC for the month of June 2017, which to grow daily production to 2.2mbpd as provided in the reviewed market developments and the results of the first 2017 budget, suffered a setback following the attack on six months of progress made according to OPEC’s 171st the Trans-Niger crude oil pipeline in the western Niger Ministerial Conference Decision and the respective Delta in the early hours of Monday, resulting in the shut in voluntary adjustments in line with the Declaration of of 150,000bpd. Cooperation. The Group Managing Director of the Nigerian National The meeting further stated that the continued Petroleum Corporation (NNPC), Dr. Maikanti Baru, strengthening of the global recovery was underway, with disclosed this Monday on the sidelines of the stability in the oil market remaining a key determinant, extraordinary session of the council of ministers of the stressing that market volatility had been lower in recent African Petroleum Producers Organisation (APPO) in weeks and investment flows had visibly started to improve Abuja. in the industry. He said a fresh militant attack on the Trans-Niger crude oil According to the JTC report, there are several positive pipeline in the Niger Delta area was recorded by the indicators going forward. country in the early hours of Monday, adding that up to Oil demand is expected to increase significantly in the 150,000bpd would be shut in from the pipeline breach. second half of 2017 compared to first half of 2017, with According to data from Shell Petroleum Development the growth reaching a level of 2mbpd, which should Company (SPDC), the Trans-Niger Pipeline (TNP) sustain the inventory draws. crisscrosses the Ogala, Alakiri, Cawthorne Channel and Furthermore, the participating OPEC and non-OPEC Bonny areas of the western Niger Delta, transporting producing countries achieved a conformity level of 98 per about 180,000bpd to the Bonny export terminal in Rivers cent in June 2017. State. In addition, the same level of high conformity was The pipeline is operated by SPDC under a joint venture observed for the first six months of January to June 2017. with NNPC, Nigerian Agip Oil Company (NAOC) and Total Between January and June 2017, the participating E&P, and is part of the gas liquids evacuation producing countries adjusted their production downwards infrastructure system critical to the Afam VI power plant by an estimated volume of 351 million barrels, the and liquefied gas exports. communiqué explained. “Unfortunately, we have not been able to sustain it (oil The JMMC added that it would continue to engage with all production) because we got challenges. As I am talking to participating countries individually, in particular, those you this morning, the Trans-Niger pipeline has been that were yet to achieve 100 per cent conformity for the breached in Ogoniland and that is 150,000 barrels of oil remaining period of the Declaration of Cooperation. that have been knocked off. That has been an issue with that area,” said Baru. Also commenting at the opening of the JMMC, OPEC Secretary General Mohammed Barkindo assured other He added that NNPC and its partners would continue to producers that Nigeria had no intention of going beyond dialogue with the community and expressed hope that its oil production target of 1.8mbpd until the end of March production would be restored. 2018. Also speaking at the conference, Acting President Yemi He also said Libya has an output target of 1.25 million bpd Osinbajo warned that the days of crude oil as a coveted by December, but it remains a target given the challenges natural resource were fast coming to an end. the country faces. He advised Nigeria and other African oil producers to sit Brent oil prices rose about 1 per cent to $48.50, helped by up to the reality and make swift efforts to use the oil news of a cap on Nigeria and by comments from Saudi 8 revenues they generate today to plan for a future without technology to track every molecule of crude oil extracted oil or risk being taken unawares. from our territories. The acting president also said recent developments where “This is an important step not only for global security, but countries such as Japan, China, France and the also for fiscal transparency, sustainability and, of course, Scandinavian countries had set dates to produce and use through the required levels of international collaboration,” only electric vehicles should be a source of worry for Osinbajo stated. African countries with oil. The Minister of State for Petroleum Resources, Dr. Ibe “This session holds at a very significant time for our Kachikwu, had earlier in his address reiterated Osinbajo’s continent and countries; at a time when we as a continent warning when he said that “crude oil was on the verge of and indeed the rest of the world are witnessing volatility in being phased out as a result of improvements in the oil market and by implication our local economies. technology”. “Over the last three years or so, oil producing countries Kachikwu said: “Technology is moving at a fast pace. The across the world have experienced the full impact of the oil world is fast disappearing and with current trends in drop in oil prices with significant negative impact on technology and environmental concerns, it is clear that government revenues and budgets and on the value of over the next 20 to 30 years, oil will become a fading if not national currencies. a faded product. “The reality of a future where demand for and revenues “What this means is that most countries that harbour oil from oil drop sharply is already upon us and almost every have only about 30 years to harness, explore, find and major oil importing country today has embarked on an enjoy the full benefits of oil. Because after that, most aggressive non-fossil fuel alternative,” said Osinbajo. consumers of oil would have moved on to a cleaner source of energy.” He added: “China, Japan, France and some Scandinavian states have already set dates within the next 10 to 15 years to produce and use only electric vehicles. The zero Central Bank of Nigeria takes oil days are clearly around the corner. “We know, of course, that the prosperity of Africa further step to crash parallel ultimately lies in its human resources and talents and not market rate in anything that we extract from the earth. “But as the world begins to move in the direction of alternative and clean energy, the reform of APPO should factor in these new realities and aim to reposition the organisation as a clear leader in this regard.”

He equally explained that there was a connection between August 2017 rising acts of terrorism across the globe and illegal mining and sale of stolen crude oil, and asked the members of As part of efforts to further strengthen the value of the APPO to develop in their reform of the organisation, Naira on the parallel market segment of the foreign systems that track the volume of oil they produce and exchange (forex) market, the Central Bank of Nigeria (CBN) export. has directed that payments for port charges to the “Permit me to mention a matter of immediate concern. Nigerian Ports Authority (NPA) and Nigerian Maritime Around the world today we are increasingly seeing crude Administration and Safety Agency (NIMASA) by oil oil often of untraceable origins, funding the activities of marketing companies should henceforth be terrorist groups and other purveyors of violence and accommodated in the official forex window. conflict. The central bank issued the directive Tuesday in a circular “Many of these groups constitute a threat or are a titled, “Payment of Ports and Nigerian Maritime potential threat to the safety and security in many of our Administration and Safety Agency Charges by Oil member states. Marketing Companies,” signed by its Director, Trade and Exchange Department, Mr. W.D.Gotring, a copy of which “APPO reforms, therefore, need to build capacity to was obtained by THISDAY. maintain a reliable statistical database and to deploy 9

CBN explained that the initiative would help improve forex Meanwhile, the CBN Tuesday intervened in the interbank availability in the market, as well as address the challenges forex market to the tune of $364 million, in a bid to sustain encountered by stakeholders in the maritime sector. liquidity in the market. The two-paragraph circular stated: “In the continued effort to improve forex availability in the Nigerian forex market A breakdown of the intervention indicated that the retail and ameliorate challenges encountered by critical Secondary Market Intervention Sales (SMIS) received the largest allocation of $264,192,252.95. stakeholders, payment for port charges to the NPA, NIMASA, etc, by oil marketing companies can now be The CBN also offered the sum of $100,000,000 to accommodated by the CBN using Form ‘A’. authorised dealers in the wholesale window. “Therefore, authorised dealers are directed to accept the Confirming the figures, CBN sources said the Bank also request for payment of port charges from oil marketing received requests from authorised forex dealers on behalf companies and forward same to the CBN forex window.” of their customers, for which results will be released. Throwing more light on the rationale behind the policy, a reliable central bank source said it was expected to lead to The central bank reiterated its resolve to converge rates in a further appreciation of the naira against the dollar on the market. both the bureaux de change (BDC) and parallel markets. The CBN last week had intervened in the wholesale, SMEs “Before the central bank unveiled the latest circular, when and invisibles windows to the tune of $195 million. oil marketers imported petroleum products, they were expected to clear these products. The NPA and NIMASA charge dollars to clear these products and most times the importers resorted to either the BDC or black market. “But with what the CBN has done, the importers can now Nigeria’s GDP forecast to hit access dollars from the official market through their respective banks. $595 billion by 2020 “So they are expected to fill the Form ‘A’ and submit to their banks. The banks would then submit the forms to the CBN for settlement,” the source explained. He said by taking that huge amount of demand out of the BDC and parallel segments of the market, it was expected to further ease demand pressure and lead to the July 2017 appreciation of the naira. While the naira closed at N365/$ on the parallel market Tuesday, it closed at N363/$ on the BDC segment and N362.38/$1 on the Investors’ and Exporters’ (I&E) forex window. However, the official exchange rate stood at N305.65/$1 Tuesday, while Nigeria’s external reserves was put at $31.222 billion as of August 8. The I& E forex window has traded over $4 billion since it was established, with the naira making gains in the market. Nigeria’s gross domestic product (GDP) is projected to hit The window, where buyers and sellers are free to agree an $595 billion in the next three years (2020), according to exchange rate, was introduced in April to attract foreign the latest Africa Investment Index 2016 released by investors into the country and boost the supply of dollars. Quantum Global Lab. CBN Intervenes with $364 million With a GDP of $415 billion currently, Nigeria is the biggest economy in Africa, and the GDP is projected to grow to about $595 billion by 2020 based on the latest report Africa Investment Index. 10

Nigeria is the 19th most attractive economy for Following years of neglect under prolonged and inept investments flowing into the African continent, according miltary rule, freight-rail capacity reduced to 15,000 metric to the The Cable, an online news platform, citing the latest tons a year. According to a Transport Ministry source, Africa Investment Index 2016 by Quantum Global Lab. recent developments indicate that the Federal Government has plans to open up its rail system to private The country attracted a net foreign direct investment of investors, following decades of government control. $3.1 billion in 2015, Quantum Global Lab stated.

Speaking at an investment summit, Head of Quantum Global Research Lab, Mthuli Ncube, said Nigeria still has Nigeria Key Projects prospects despite the current economic challenges. Key projects include building a second railway line “Despite the current economic challenges, we are quite connecting the nation’s two biggest cities, the commercial confident on the medium to long term market prospects.” capital, Lagos, and Kano in the north. The 1,100-km line will carry freight and passengers. However, the “Nigeria has earmarked a significant amount of capital to government intends to construct a coastal railway that develop critical infrastructure in the country and there are connects Lagos to the eastern city of Calabar. various opportunities for public-private collaboration providing investors’ return on their investments. We The two new railways are expected to cost US$20bn, with anticipate that investment in infrastructure will underpin most of the funding coming from the Export–Import Bank the growth of the economy and meet the needs of a large of China, which has so far released US$5.9bn. China’s Civil Nigerian growth population,” he said. Engineering and Construction Co. is executing the project and both railways should be ready by the end of 2019. Ncube advised the government on the steps to take to grow the economy. An investment of US$16bn is directed to additional rail routes. The routes link up all the country’s interstate “The short to medium-term focus of the Nigerian network to state capitals. With extension across the government is to reduce imports and address primary northern border into neighbouring Niger’s southern city of sector blockages, such as roads, bridges, power, railway, Maradi. aviation, water, housing, agriculture, education and health,” he said. During a recent visit to the Nigeria Railway Corporation, Amaechi, Minister of Transportation did inspect the “Despite the current market volatility, Nigeria presents $5.851 billion Lagos-Ibadan rail segment of the Lagos-Kano tremendous investment opportunities in these areas, standard gauge rail (SGR) project. which would not only support the local economy but also deliver significant yields to foreign investors,” he said. Project Plan The plan of the ministry is to go to every nook and corner Nigeria seeks new economic with the project. However, Chinese Civil Engineering and Construction Company (CCECC) needs to deliver the crucial frontiers on $41 billion rail Lagos-Ibadan project by December 2018 as contained in the Memorandum of Understanding (MoU). modernisation Additionally, the government is also trying to complete the US$3bn line. The line runs from Abuja to the southern oil hub of Warri by 2018. In the meantime, the government is talking to investors regarding the public-private project. Once the rail links to the existing and planned deep-sea ports are complete, the country hopes to substantially reduce logistics costs and facilitate exports and imports. August 2017

Nigeria is seeking to explore new areas of revenue generation and diversification of its economy. Being the largest oil producer in Africa, it is seeking new opportunities through massive investment into the rail sector.

Dangote plans to invest up to EU says to help Nigeria attract $50 billion in U.S. and Europe more investment

August 2017 July 2017 In an interview with Bloomberg Market Magazine this month, Aliko Dangote revealed his intention to invest $20 The European Union (EU) has said that it is willing to help billion to $50 billion in the U.S. and Europe by 2025, in Nigeria attract more investment, according to Michell industries including renewable energy and petrochemicals. Arion (photo, right), EU Ambassador and Head of EU According to him, starting from 2020, 60% of his future delegation to Nigeria. investment will be outside Africa. “We believe that our prosperity is your prosperity, we see The 60-year-old Nigerian cement tycoon aims to move into West Africa as a block of ECOWAS and Nigeria as the these regions for the first time in 2020 after completing economic base. We see West Africa not as export almost $5 billion of agricultural projects and an $11 billion designation for the EU but investment destination for EU. I oil refinery in Nigeria. will say that what we can do is to facilitate the EU investment in Nigeria, not only at the level of bilateral Dangote, has in the last five years diversified both relations but in other areas,” he said at a political dialogue geographically and into new industries. between Foreign Affairs Minister, Geoffrey Onyeama, other ministry officials and 20 representatives of EU In July, he announced that he would invest $4.6 billion in member states in Abuja. the next three years in sugar, rice and dairy production. According to Arion, there are lot of ways the EU and Also, Dangote Cement Plc, which accounts for almost 80% Nigeria can work together, particularly in the area of peace of his wealth was recently expanded into nine African and security. “We really believed that our security in the countries aside from Nigeria. In 2015, he began building a EU is your security; I believe we are fighting the same 650,000 barrel-a-day refinery in Nigeria and he is terrorists. We have common challenges and we can do constructing gas pipelines to Lagos from Nigeria’s oil much more together in fighting terrorists and other region with U.S. private equity firms Carlyle Group LP and criminals such as smugglers.” Blackstone Group LP. For his part, Foreign Affairs Minister, Geoffrey Onyeama, Dangote, however dispelled the insinuations that he plans explained that the political dialogue was a product of to invest in telecom or go into Nigerian politics, stating communiqué signed last year between Nigeria and EU. The that he would stick to the businesses that he understands communiqué focused on security, corruption, prosperity, better. migration and human development. Shares in Dangote Cement fell 4.9 percent to 214 naira in Onyeama urged the EU and other partners to consider Lagos Wednesday, paring the advance this year to 23 increasing investment in other areas beyond the oil sector, percent. like agriculture and mining. “The important thing is value Dangote currently worth $11.6 billion, according to addition in processing, packaging. All is important to Bloomberg’s Billionaires Index. provide employment to Nigerian youths. We are in the process of diversification away from oil, and we are looking to an important trading partner and we naturally looked to the EU to explore trade opportunity to our country.”

Yousafzai met some of the released girls in Abuja earlier EDUCATION on Monday, whom she described as being healthy. She appealed for the release of those who are still being held. Malala urges Nigeria to The Boko Haram insurgency, aimed at creating an Islamic caliphate in northeastern Nigeria, has killed more than prioritize education system 20,000 people and displaced more than 2 million since 2009. Nigeria need of N4.4 trillion to reverse slide in education - July 2017 Minister

ABUJA (Reuters) - Nigeria should focus on improving its education system, Nobel laureate Malala Yousafzai said on Monday during a visit to the West African country where nearly half of primary-aged children are not enrolled in school. August 2017 Africa’s most populous country has some 10 million children of school age who do not attend, government figures state. Primary school enrolment is just 54 percent. Yousafzai, a Pakistani education activist who came to prominence when a Taliban gunman shot her in the head in 2012, was named a U.N. Messenger of Peace in April to promote girls’ education. She has become a regular speaker on the global stage. Addressing journalists in the capital Abuja after a meeting with the acting president, Yousafzai said the government should declare a “state of emergency on education in Nigeria”. “They are happy to work more on education. We are also The Minister of Education, Mallam Adamu Adamu has said happy to hear positive response from the minister as that Nigeria is in dire need of over N4.4trillion to fix the well in ensuring that education is prioritized,” she said, education sector. adding that spending on education at a federal and state level should be made public. The Minister who addressed Progressive Governors Forum Parley on policy synergy held at the Presidential Hall Birnin Nigeria’s presidency did not immediately comment on the Kebbi also revealed that there are 12.4million children out suggestions. of the school, with North East contributing the largest Yousafzai has also campaigned to maintain awareness of chunk as a result of the activities of Boko Haram. the more than 200 schoolgirls who were abducted in 2014 Ministers took turn to brief the All Progressive Congress from their secondary school by Islamist militant group (APC) governors on the activities of their ministries. The Boko Haram, whose name means “Western education is ministers were: Chief Audu Ogbe Minister of Agricultul, forbidden” in the Hausa language spoken widely in Mrs. Kemi Adeosun Minister of Fnance and Alhaji Adamu northern Nigeria. Adamu Minister of Education. Of the 270 girls originally kidnapped by the group, around The huge sum, Adamu said was needed to reverse the 60 have escaped and more than 100 have been released. decaying education sector. He expressed regret that 12.4 But around 100 more are still believed to be in captivity. million children were out of school in the country adding that the country was leading the world in terms of the number of out of school children. Before now we have 13

11.4 million out of school children but now due to the July 2017 book haram insurgency in the north-east part of the country the number has increased to 12.4 million’’ he said. Sen. Aliyu Wamakko (APC-Sokoto North) has said that the Senate has amended the Universal Education Act to ease Adamu also pointed out that about N42 Billion education pressure on states in accessing funds for infrastructure fund is still available for the governors to access.’’ We will development in schools. lower down the counterpart funding requirement to a level that is acceptable to you to access the fund. We will Wamakko who is the Chairman, Senate Committee on also do our best to ensure the promotion of quality Basic and Secondary Education, made the disclosure in a education and enrolment of children in our statement issued by his media aide, Bashir Mani on Friday various school’’. He added. in Sokoto. He therefore urged the Governor’s to support the Ministry He said that the Compulsory, Free, Universal Education Act Strategy Plan initiated by the Federal Government. 2004 was amended on Thursday, and now has provision which made primary and secondary education free and Speaking on the recent region subjects issue, the Minister compulsory in the country. said the whole blame should be placed at the door step of the last administration. “It seeks to increase the block grant contribution of the Federal Government to education, just as it seeks to Adamu told Nigerians to hold the River State reduce the contribution of the state governments. Governor, Nysome Wike responsible as the subject’s issue started under his watch as minister of Education. “This is aimed at reducing the current situation where most states are unable to access the grant owing to their He explained that the CRK and IRK policy was formulated inability to contribute the 50 per cent of the total cost of during Goodluck administration when the River State projects as its commitment in its execution. Governor was the Minister. “The two per cent budgetary allocation to Universal Basic The Minister therefore, said that he become baffled and Education Commission by the Central Government is now troubled when Nigerian started rumouring that he Adamu increased to three per cent. Adamu has Minister of education want to Islamized Nigeria. “The bill provides free and compulsory education for all Nigerian children from primary up to secondary schools,” He said:” Nigerian should rather blame River State he said. Governor Welson Wike for formulating the policy during his tenure as a Minister of Education”. Education minister seeks skills- Minister of Agriculture, Chief Audu Ogbe on his part assured the gathering that by the end of this year 2017, based courses in tertiary Nigeria would stop importing rice. institutions The Minister said further that about 200 rice mills will soon spring up between now December. He also stressed that the country’s diversification policy was on and hopefully, by year 2030 agriculture would have taken over from oil and gas. June 2017

Senate amends Universal The Minister of Education, Adamu Adamu, has called for emphasis on entrepreneurial and skills-based courses in Education Act, raise funding the nation’s tertiary institutions to promote self-reliance for education of graduates. He said that foundation would help reduce hunger and unemployment and their associated challenges in the country.He made the call while commissioning the United Nations Reading Hub and unveiling the Model United

Nations Association of University of Uyo, Akwa Ibom State, “The provision of this reading Hub will eliminate illiteracy imitated by Africa Youth Movement (AYM). and enhance education, which are significant road maps of the UN SDGs,” he said.Earlier, President Africa Youth Movement, Uwem Robert Otu, thanked the management of University of Uyo for opening its doors to the UN, adding that the project was the beginning of good things at the institution. Four new universities to be established in Nigeria

Adamu, who was represented by the Vice Chancellor of UNIUYO, Prof. Enefiok Essien, stressed that the country was vigorously pursuing a functional skill-based and entrepreneurial education, with lesser emphasis on paper July 2017 qualifications. He added that such foundation would lead to the positive • There is a plan to establish four new universities in changes the country needed thereby, bringing about the Nigeria for various military bodies timely actualisation of the 17 Sustainable Development • The minister also announced that the Goals (SDGs) by the year 2030. administration needed N4.2 trillion to fund the “With proper education, individuals will have more country’s education sector entrepreneurial orientation and skills. This will reduce • At least three of the universities were for the poverty, which is SDGs goal number one. This will lead to Army, Navy and Maritime bodies zero hunger, which is goal number two, and will bring about peace, justice and strong institutions which is goal The minister of education, Malam Adamu Adamu, said on number 16. Tuesday, August 1, that three of four new universities to be built by the federal government were for the Army, “Education is the surest vehicle for effective change in any Navy and Maritime. According to Adamu, the projects society, more so in Nigeria, education in this sense means were kicking off soon. functional education that is skills-based and not acquisition of degrees, diplomas and certificates,” he said. Daily Trust reported that the announcement was made at the Progressive Governors Forum on Policy Synergy held in He commended the initiator and UNIUYO for partnering Birnin Kebbi. He also explained that the setting up of the with the ministry and others as the initiative would lead to universities was in line with the policy of the present achieving the SDGs.Vice Chancellor of UNIUYO, Prof. administration to boost education in all spheres. Enefiok Essien, described the partnership as unprecedented, noting that the United Nations Reading However, he said that the administration needed N4.2 Hub in the institution was the first of its kind in the trillion to fund the country’s education sector, and country. appealed to state governments to pay their counterpart funds to access their funds. He said the gesture would not only benefit the university community but all seeking knowledge.“The reading Hub NAIJ.com earlier reported that while speaking on Tuesday, was conceived as one stop resource centre for news, August 1, in Kebbi state at the Federal Government- notices, appointments, opportunities, circulars, Progressives Governors’ Forum, the minister of education, conventions, protocols, treaties, instruments and all up to Mallam Adamu Adamu, said that the former president date materials and information by the UN,” he said. Goodluck Jonathan’s administration formulated a policy in 2012 which combined CRK, IRK and Social studies into one “The information bank will not only avail students and elective and implemented the policy in 2014. staff of UNIUYO, but also the knowledge seeking members of the public who will have the opportunity to use the It was gathered that Mallam Adamu said: “The Jonathan university library. administration had formulated a policy in 2012, combining CRK, IRK and Social studies into one elective and 15 implemented the policy in 2014. Immediately I came in as He further disclosed that: “When the northern part of the education minister, I was briefed about the policy. country was carved into North East, North West and North Central, the North East was 150 years behind,” adding that UNICEF to facilitate education at that time, if the South stopped going to school, it would have taken the North East 150 years to catch up.” of 1 million girls in five He therefore pointed out that with “the situation that northern states Boko Haram has put us now, if those studies are anything to go by, the North East may require about 500 to 1, 000 years to catch up with the other five geo-political zones in the country,” as the state of the educational sector there requires the support of all stakeholders, just as the future

looks very “bleak and gloomy” for the next generation. January 2017 38 Nigerian universities raised tuition - ASUU

June 2017

The Vice Chancellor of University of Maiduguri (UNIMAID), Prof. Abubakar Njodi, has said it may take the North East 500 years to “recover from the destruction” of its education system by Boko Haram, and catch up with the southern part of the country. Njodi, a Professor of Physical and Health Education, who made the disclosure yesterday stated that even before the advent of Boko Haram, studies had indicated that the region was about 150 years behind other parts of the country, particularly the South. No fewer than 38 universities across the country have increased their tuition fees as a result of poor funding by While receiving a delegation of the Presidential Committee the federal and state governments. on North East Initiative (), which came to condole with him and the university community over the January 16, 2017 The Chairman of the Academic Staff Union of Universities bomb attack that claimed the lives of three staff members, (ASUU), University of Ibadan Chapter, Dr. Deji Omole, including a professor, he stressed that “education in the made this known in a statement made available to North is endangered. newsmen in Abuja yesterday. “I have said it at different fora that prior to Boko Haram, The statement, which assessed the two years of President there were some studies, some real, some speculative, Muhammadu Buhari in office, lamented that the current that showed the North, currently comprising 19 states and government had made Nigerians poorer. the Federal Capital Territory, Abuja; was 100 years behind Omole said that the public education was not taken the South. What it means here is that, at that time if the seriously because most children of the rich and those in South should stop going to school, it would take the North high offices do not attend schools in Nigeria. 100 years to catch up,” Njodi added. ASUU also noted that it would be difficult for any Nigeria university to effectively compete globally with the 16 inadequate allocation of budgetary funding as prescribed Polytechnic, from N14, 800 to N28,000 and Ondo State by UNESCO to fund education. University of Science and Technology, Okitipupa, from N70,000 to N80,000. The News Agency of Nigeria (NAN) reports that University of Lagos (UNILAG) which was paying N14, 500 would now Enugu State University of Science and Technology, pay N63, 500 as tuition fees. N104,900 to N124,900; Kwara Polytechnic, Ilorin, from N28,000 to N44,000; Ladoke Akintola University of The management of UNILAG has however denied claims of Technology (LAUTECH), from N65,000 to N72,500 and Tai increase in tuition fees. Solarin University of Education, from N66,500 to N76,500. According to the institution’s Deputy Registrar, Afe Babalola University, from N675, 000 to N1,075,000; Information Unit, Mr. Toyin Adebule, UNILAG as a federal Igbinedion, from N540,000 to N820,000; Crawford university does not charge tuition fees. university, from N400,000 to N600,000 and Redeemers Instead, he clarified that students pay “other charges” University, from N545,000 to N605,000. such as accommodation, health insurance and laboratory services for those studying science-related courses. Also in the list are Covenant University, from N774, 500 to N814, 500 and Benson Idahosa University, from N284, 300 Adebule however said the breakdown of the charges to N1, 150,000. would be available on Wednesday. Other institutions that increased their fees include: Nigeria to get $961 million Ahmadu Bello University (ABU), from N27, 000 to N41, 00; University of Nigeria (UNN), from N60, 450 to N66, 950; loan for education and Obafemi Awolowo University, from N19, 700 to N55,700. economic recovery plan Others are Nnamdi Azikiwe University (UNIZIK), from N20, 100 to N65,920; Bayero University, Kano, from N26,000 to

N40,000; University of Abuja, from N39,300 to N42,300. June 2017 and Usman Danfodiyo University, from N32,000 to N41,000. A total of $961million has been approved by the World National Open University of Nigeria (NOUN), from N36,000 Bank to support the implementation of Nigeria’s Economic to N41,000; and University of Benin (UNIBEN), from N12, Recovery and Growth Plan 2017-2020. 000 to N49,500. In a statement by the Senior Communications Officer at University of Ilorin, from N16, 000 to N75,000 and Federal the World Bank office in Nigeria, Olufunke Olufon, the University of Technology, Akura (FUTA), from N13, 560 to fund has been planned for two programme-for-results N83,940. operations. Also in the list are: Federal University, Minna (FUTMINNA), While one is the Better Education Service Delivery for All, from N20,000 to N37,000; University of Calabar, from which will receive $611m, the other programme will be N30,500 to N42,750 and University of Uyo, from N71, 000 the Kaduna State Economic Transformation Programme to N84, 250. for Results, which will receive $350m credit. Federal College of Education (Technical), Akoka, from On the educational programme, Olufon explained that the N16,000 to N40,000; Osun varsity, from N95,000 to programme aims to bring out-of-school children into the N135,500; Anambra State University, from N76,000 to classroom, improve literacy, and strengthen accountability N139, 000 and Lagos State University, from N96,750 to for results in basic education. N158,250. It was gathered that in 2013, 13.2 million school-age Ibrahim Badamosi Babangiga University, Lapai, from N25, children were out of school, the overwhelming majority of 000 to N52, 000; Imo State University, from N120,000 to who were in the North where out-of-school children rates N150,000; Plateau State University, from N50,000 to were also higher among girls, in rural areas and form poor N100,000 and Moshood Abiola Polytechnic, from N57,000 families, the bank said. to N75,000. For the Kaduna State Economic Transformation Others are: Ibadan Polytechnic, from N30, 000 t0 N50,000; Programme for Results, the World Bank says it will focus Abia Polytechnics, from N56,550 to N61,000; Auchi on enhancing private sector investment in Kaduna State

17 through improved business environment, effective budget “It was also a bottom –up approach; it was not that we sit planning and execution, and fiscal accountability. in UBEC, or sit in Abuja and determine that is what the states need; it is the states will have to tell us from their ALSO READ: Nigeria's effort to get international loans hits own their challenges at the local level. deadlock “There are certain foundations we need to push, if we miss According to the bank, Kaduna State has taken a number these foundations we will just keep groping in the dark for of reform actions to improve its economic performance a long period of time. and social outcomes, and sustain the efforts. “The issue of data; go to any agency, please give me up to Rachid Benmessaoud, the World Bank Country Director for date figures about what is going on, up to date figures in Nigeria, said: “Investing in human capital and creating terms of enrolment in universities, in your basic education economic opportunities for all are key areas of focus to schools, tell me about teacher , tell me about all those achieve more inclusive and private-sector led growth. issues, we start making excuses. “These two operations support the government’s “ I think it is in this regard that we feel again that data is economic and growth recovery plan and will help Nigeria crucial to having cogent plans.” achieve sustainable and measurable results.” He said the commission had received support from the The bank added that both operations implemented National Bureau of Statistics, National Population results-based financing, whereby disbursement of funds Commission and other partners in driving the process. was linked to the achievement of tangible and verifiable results. The executive secretary said the Ministry of Education had approved N3 billion for the commission for the UBEC set for national Basic rehabilitation of the basic education sub-sector in the North-East. Education Sector Plan Bobboyi said the money will be used for the rehabilitation of school infrastructure affected by the insurgency as well as building of vocational and skill acquisition centres for women that left school due to the insurgency.

The executive secretary said it would also be used to provide instructional materials and the training of August 2017 teachers.

The Universal Basic Education Commission (UBEC) has said that it would have a National Basic Education Sector Plan Nigeria leads the World in by October to help in educational planning process. uneducated children Dr Hamid Bobboyi, UBEC Executive Secretary, disclosed this at a media chat in Abuja on Monday. July 2017 “For a long time we have had the under role planning process; the issue that we raised from day one is that as a Nigeria leads the world in uneducated children, according nation it is very difficult to make progress on this type of to the country’s government. Adamu Hussaini, Nigeria’s planning. Education Ministry permanent secretary, said in a statement to BBC news on Tuesday that he was “sad to “How do we as UBEC, as SUBEBS put our heads together to note” that some 10.5 million children living in the country ensure that we have those kinds of strategic plans that can were not currently in school. move the basic education sector forward. Hussaini blamed the severe number of uneducated “I am very happy to say that by end of September we are children in Nigeria on cultural factors, including traditions going have a national basic education sector plan that can and religions followed by various nomadic groups that move the basic education sector forward. prevented girls from attending school. The majority of “I think this is important for us as nation to be able to put children who aren't in school in Nigeria are girls. in all those key elements that we need to succeed within Hussaini also said the high number of kids living on the the basic education sector. streets was a factor in poor education rates across the 18 country. Only 5 percent of the primary school–aged kids in and for their country’s future, Nigeria’s leaders must Nigeria are dropouts, while about three-quarters of those immediately prioritize education.” who aren’t receiving education are likely to never even step foot inside of a classroom. Nearly 60 percent of the children who aren’t receiving education live in the northern areas of the country. In the However, the biggest cause of the lack of education across northeast alone, where the country is being ravaged by the country may be limited funding for public schools. the militant Islamist group Boko Haram, some 3 million children do not have access to education. Since the In 2016, only 9 percent of Nigeria’s $12.2 trillion federal group’s insurgency in 2009, more than 2,285 teachers budget was spent on education, according to All Africa. have been killed, while 19,000 others have been displaced, The majority of the funding that went toward schooling according to UNICEF. The group also has destroyed more was spent on education ministries, teacher recruitment than 1,400 schools since the insurgency began. efforts and salaries. Just a week before Hussaini acknowledged the widespread lack of education in Nigeria, marking the first time a senior official ever admitted to the scope of the problem, education activist Malala Yousafzai pleaded for President Yemi Osinbajo to call an “education state of emergency." Yousafzai met with the president and schoolchildren at a displaced family camp on July 18 and advocated for the government to dedicate more funding toward schooling for girls. “Nigeria is the richest country in Africa but has more girls out of school than any country in the world,” Yousafzai said. “Studies are clear—educating girls grows economies, reduces conflict and improves public health. For these girls

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