Stocks gain as CBN says market’ll determine naira rate

After weeks of consultation with stakeholders in the financial services sector, the Central Bank of Nigeria on Wednesday finally released the flexible foreign exchange guidelines.

The CBN Governor, Mr. Godwin Emefiele, who announced the details of the policy while briefing journalists at the apex bank’s headquarters in Abuja, explained that interbank trading under the new guidelines would begin on Monday.

Giving some of the highlights of the new policy, the governor said based on the guidelines, the value of the naira against other currencies would be market-driven.

In reaction to the announcement of the guidelines, the Nigerian Stock Exchange All-Share Index gained 3.17 per cent on Wednesday

The development boosted the NSE market capitalisation by N295bn as the value rose to N9.579tn from Tuesday’s close of N9.284tn, while the NSE ASI hit 27,891.96 basis points from 27,034.05 basis points.

Aggregate of 588.427 million shares worth N3.477bn were traded in 5,088 deals at the close of trading on the floor of the Exchange on Wednesday.

To implement the new forex policy, the CBN governor said the apex bank would on Friday appoint primary and secondary dealers, adding that their dealership level would be categorised based on the volume of transaction that they could handle.

He said based on the assessment of the CBN, the number of primary dealers would be between eight and 10 financial institutions with a minimum transaction volume of $10m.

Emefiele said, “We have decided that the CBN will deal primarily with what we call the foreign exchange primary dealers. We will have non-primary dealers and primary dealers. The guidelines for qualification for being a foreign exchange primary dealer will be on our website.

“There are a number of qualifications, either the size of the bank, or the size of forex transactions it had done before, the level of liquidity, the extent to which those banks have complied with the CBN guidelines and regulations in the past, and their level of preparedness in terms of being able to provide all the soft and hardware that is needed to operate in a very transparent manner.”

The governor also said the market would operate as a single structure through the inter-bank/autonomous window; while the exchange rate would be purely market-driven using the   Thomson-Reuters Order Matching System as well as the Conversational Dealing Book.

The CBN, according to him, will also participate in the foreign exchange market through periodic interventions to either buy or sell foreign exchange as the need arises.

Similarly, the governor said there would be no predetermined spread on foreign exchange spot transactions executed through the CBN intervention with the primary dealers, while all foreign exchange spots purchased by authorised dealers would be transferable in the interbank foreign exchange market.

On the 41 items, which were classified as ‘Not valid for foreign exchange’ as detailed in a previous CBN circular issued last year, Emefiele explained that they would remain inadmissible in the foreign exchange market.

In order to enhance liquidity in the market, he said the CBN would also offer long-tenured foreign exchange forwards of six to 12 months or any tenure to authorised dealers.

The governor said with the new policy, the sale of foreign exchange forwards by authorised dealers to end-users must be trade-backed, with no predetermined spreads.

In a bid to reduce the speculative demand for foreign exchange for future transactions, the CBN boss said the apex bank would introduce what he described as non-deliverable over-the-counter naira-settled futures.

He explained that the naira-settled futures was an entirely new product in the Nigerian foreign exchange market, which would help moderate volatility in the exchange rate by moving non-urgent   foreign exchange demand from the spot to the futures market.

The over-the-counter foreign exchange futures, according to him, will be in non-standardised amounts and different fixed tenors to be sold on any date.

He also said proceeds of foreign investment inflows and international money transfers would be purchased by the authorised dealers at the daily inter-bank rate; and that non-oil exporters would be allowed unfettered access to their foreign exchange proceeds, which would be sold in the interbank market.

In terms of timelines for the policy, the CBN governor said, the management of the central bank had agreed that the selected foreign exchange primary dealers would be notified by Friday, noting that other non-primary dealers would remain valid and eligible to participate in the market.

Explaining what would happen to  those people that had matured letters of credit, the CBN governor said the backlog of the transactions would be taken to the market for clearance.

Emefiele said the apex bank was strongly determined to make the market as transparent, liquid,   and efficient as possible, adding that it would not tolerate unscrupulous behaviours.

He added, “We will neither tolerate unscrupulous behaviours nor hesitate to bring serious sanctions on offenders. The CBN expects all authorised dealers to display the highest level of professionalism.  We expect them to understand the spirit and letter of this transition to a market-based system.

“The CBN will not allow the system to be undermined by speculators and rent-seekers.”

He emphasised that any attempt to breach any aspect of the new framework would be heavily sanctioned by the CBN and this might result in the suspension or withdrawal of the foreign exchange dealing licence of any offending authorised dealer.

The naira closed at 367 against the dollar at the parallel market on Wednesday, hours after the CBN unveiled its flexible exchange rate policy. The local currency had closed at the same rate against the greenback on Tuesday.

The National President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the policy had yet to have effects on the exchange rate at the parallel market.

Analysts, who spoke to one of our correspondents, commended the CBN for the new policy, saying it would bring down prices and eliminate market distortions

“It is a good policy; it will eliminate market distortions and bring down prices,” the Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, said. He added, “However, it is not a silver bullet; there is still a lot of work to be done.”

The Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chuwku, who backed the policy framework, said it would enhance price stability.

“It was most expected though coming late; it is better than nothing. It will lead to inflow of Foreign Direct Investment and remittances. This shows we are preparing the economy for diversification,” he stated.

A Professor of Economics at the Olabisi Onabanjo University, Sherifdeen Tella, said, “I don’t think there is anything wrong with the policy. However, there is still a need for the CBN to intervene in the market at some point. We cannot leave everything to the market.

“Therefore, we still need more restrictions on importation in order to preserve the reserves. We should not just buy the idea of free market that will allow just anything to come into the country. Even economies like Japan and the rest still do this.”

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Adaptable curriculum reforms will solve problem of unemployable graduates

The absence of a synergy between tertiary institutions in the country and the end users of their products- the labour market, and the obsolete curricula in use in the country have given birth to innumerable unpleasant consequencies, prominent among which is the rising tide of unemployable graduates. This formed one of the strongest points of discussion at the 2nd Annual Blossom Career and Entrepreneurship Summit, where stakeholders strongly canvassed curriculum reform as a panacea, writes ENO-ABASI SUNDAY.

Day-in-day-out, news of the soaring rate of unemployment wafts across the length and breadth of the country. Sadly, solutions to this national malaise have largely come in terms of rhetoric and not in concrete terms.

Evidently, not much has been achieved when it comes to efforts geared towards driving down the figure. That perhaps explains why the recent disclosure by the Central Bank of Nigeria still remains a very sobering news.

The apex bank, in that report said 80 per cent of Nigerian youths were without jobs. And according to the International Labour Organisation (ILO), 60 per cent of the unemployed in Nigeria are between ages 17 to 25.

The above scenario, experts say, implies that given the figures being adduced by both the CBN and the ILO, it is safe to accept the average of the two figures, which will be about 70 per cent.

More worrisome in this picture is the fact that in the midst of this swelling poll of unemployed youths, some graduates that consider themselves ready for employment are actually unemployable. This brings to the fore, the need to establish a nexus between what the labour wants and what contemporary graduates lack.

One of the biggest points that was made at the recently concluded 2nd Annual Blossom Career and Entrepreneurship Summit in Lagos State, at the behest of Best of the World Enterprises Limited (publishers of Blossom Magazine), was the compelling need for an urgent curriculum review/re-examination in the country.

Governor of Lagos State, Akinwunmi Ambode, was chief host and the Bishop of Lagos West Diocese (Anglican Communion), the Rt. Rev. Dr. James Olusola Odedeji, co-hosted the summit.

Prof. Olugbemiro Jegede

At the summit, which had as its theme, “Curriculum Re-Examination, Skills Opportunities and the Dilemma of Academic Ambitions,” founding vice chancellor of the National Open University of Nigeria (NOUN), Prof. Olugbemiro Jegede, said, “One of the current weaknesses in our educational system is the obsolete curricula being used in training students at the various levels of education, especially the tertiary education level.”

The renowned scholar in his keynote address titled, “Curriculum Misfits, Reform Perspectives and Strategic Imperatives, stressed that, “Our review of the various curricula being used at our institutions of higher learning has not kept pace with global development, research outcomes and current societal needs,” adding that, “It does appear as if we still use analogue thinking to solve current issues, which have gone digital. The tertiary institutions are still producing graduates for the labour market without constant reviews of what the market requires. Industry therefore thinks that it has nothing to gain from the tertiary institutions. The curriculum review must aim for fit-for-purpose personnel to avoid wastage in resources and industry retraining graduates they hire from the tertiary institutions.

“There needs to be a symbiotic relationship between academia and industry so that teaching, learning and research being done at the institutions match what is required by the action-oriented industry, driven by target and return on investment,” the immediate past Secretary-General and Chief Executive of the Association of African Universities said.

On how to bridge the yawning skills gap in the country, Jegede said, “More often than not, the skills required to function effectively in industry and the society are not taught at the tertiary level. Practical work in laboratories is not done very well, if they ever exist. There must be industry-ready collaborative partnership programmes with tertiary educational institutions to bridge the skills gap. The skills needed by graduates to function in the outside world and industry are not taught to graduates in our institutions that are increasingly becoming too theoretical. A number of things must be done to drive skills development and they consist of the following components: link with the labour market; public-private partnership; creativity and critical thinking; participation to engage stakeholders to develop strong education models; evidence-based programmes with built-in impact evaluation component to ensure that they are results-oriented and focused on quality and learning outcomes and, ICT-based to produce high-quality education and tap into new learning technologies.”

Country Senior Partner, Nigeria, and Regional Senior Partner for PricewaterhouseCoopers West Market Area, Uyi Akpata, identified factors responsible for the high youth unemployment rate in the country to include among others, deficient school curricula and poor teacher training.

He said these contribute immensely to the failure of educational institutions in the country to provide their students with the appropriate skills to make them employable.

In a paper titled; “Why The Private Sector Should be Interested, presented on his behalf by PWC Partner, Mrs. Wunmi Adetokunbo-AJayi, Akpata enumerated some underlying factors for the high rate of youth unemployment in the country to include a deficient school curricula and poor teacher training, which contributes to the failure of educational institutions to provide their students with the appropriate skills to make them employable, as well as flawed and inconsistent public policies on employment in addition to inadequate data for effective planning.

The PWC chief who said past efforts at tackling unemployment have been poorly articulated, and equally poorly executed with little consideration for what young people really want, added that on the demand side, there is a lack of vibrant industries to absorb competent graduates.

Akpata, who is of the view that young people were not satisfied with what they are getting out of their university experiences, in connection to their future goals, added that university advisers would need to improve their engagement with employers and students to boost credibility and their perceived value.

He said to “tackle unemployment effectively therefore, we need to reform our approach to education; universities need to transform themselves into a place where young people can not only study and take exams, but learn from doing. To provide them with real world experiences that are relevant.

“There is need to integrate practical skills with theoretical knowledge, foster an entrepreneurial learning environment; work experience or short term temporary/part time roles can be valuable not only for skill development, but to help young people plan their career, educators and governments need to open up spaces to involve youth opinion, expand the relevance of a degree for young people and better support their learning experiences with more structured learning and development paths. This challenge does not fall only on governments and educators, but students and employers alike will need to be more proactive in engaging with decision makers to influence decisions,” he submitted.

Also in sync with curricula review as a way of focusing on the development needs of the country is the United Nations Industrial Development Organisation (UNIDO).

In a paper titled, “Nations Are Built By Skills,” Officer in Charge (Regional Office), of the organisation, Dr. Chuma Ezedinma, for the country to confront the current unemployment crisis in the country, emphasis must be placed on education that support the development of technical and entrepreneurial skills and competencies. In this respect, there is need to re-align the schools curricula to focus on the development needs of the country. One important area is the re-alignment of the curricula to highlight the importance of skills training and entrepreneurship. In this respect, there is need to involve industries and strengthen public-private partnership in education. Improving employability requires closing the gap between the education and work worlds.

Speaking through Mr. Francis Ukoh, Ezedinma added, “This requires forging closer relationship between industries and educational institutions. More economically advanced countries like Germany, Korea, Singapore and Britain are applying the same concept and in the process upgrading and expanding apprenticeship schemes and technical education through various programs to close the gaps.

Ambode, in a goodwill message delivered on his behalf by his Special Assistant of Education, Mr. Obafela Bank-Olemoh, lauded the summit saying it was in line with the state’s vision of engaging students to focus on acquiring quality education that will enable them conveniently fit into the job market upon graduation.

Akpata

He said a well-articulated curriculum plays a critical role in ensuring the success of students in the 21st Century as it would help strengthen the fabric of education in the state. This, he added, is the reason behind the state-initiated World of Work Project, -an entrepreneurship and employability initiative that targets final year students of the state tertiary institutions.

Bank-Olemoh added that the state’s Ready.Set.Work initiative was in line with objectives set out by the Best of the World, initiators of the summit.

Summit co-host, Dr. Odedeji (a co-proprietor of Anglican Schools), in his opening remarks, delivered by the Dean of the Archbishop Vining Memorial Cathedral, the Ven. Abel Ajibodu, said the church, which was in the vanguard of the quest for the return of missionary schools to their original owners, was set to similarly tackle the unwholesome crave for certificate acquisition without commensurate acquisition of knowledge.

The Bishop of Lagos West, Anglican Communion, bemoaned a situation where students and parents “in a bid to acquire degrees at all cost, go to any length to ‘buy’ or otherwise procure certificates.”

He called on authorities to pan curricula to deliver skills acquisition as a way of creating jobs and encouraging all youths to explore their potentials in all spheres, be it academic or technical.

Chief Executive of Best of the World, Mrs. Joy Chinwokwu, in her opening remarks gave the objectives of the summit to include charting a focused direction towards tackling job crises in the country by advocating curricula reviews in secondary and tertiary institutions; inspiring students in secondary and tertiary institutions and their guardians to focus on careers and skills with prospects for employment, and curtailing fraudulent practices in the education sector, among others that will help to transform the education sector and ultimately reinvent the country’s lost academic glory.

She assured that post summit engagements would aim at closing the wide gap between unemployable graduates yearly churned out by tertiary institutions and the abundant but untapped skill potentials in the country.

While Chairman, Independent Corrupt, Practices and Other Related Offences Commission (ICPC), Ekpo Nta spoke on, “Education Fraud in Nigeria,” PTA Chairman, Atlantic Hall School, Lagos, Mrs. Maureen Akpofure Awobokun, spoke on, “Why The PTA Should Be Interested, and counselling psychologist, Dr. Olugbenga Bodunrin, spoke on “How to Run a Profitable School in the 21st Century.”

Forex crisis may ease as CBN begins flexible policy

• Apex bank promises to clear letters of credit
• 41 banned items remain inadmissible
• Reserve covers five months’ imports

As the Central Bank of Nigeria (CBN) yesterday began the implementation of the flexible foreign exchange (forex) management in the country, it assured stakeholders that the new policy would deepen the market.

The flexible foreign exchange (forex) management basically means the adoption of a market-driven exchange rate policy of the naira against other currencies. The new policy, CBN Governor Godwin Emefiele said, would be a single window market. He reassured holders of all backlog of mature letters of credits ( LCs) that they would be cleared immediately while primary dealers operators expected to be the major link between the apex bank and the market are expected to possess a minimum paid-up capital of $10 million.

Emefiele gave the assurance yesterday in Abuja while unfolding the framework of the much-anticipated new forex regime announced by the Monetary Policy Committee (MPC) of the apex bank penultimate week in Abuja as part of measures to address on a permanent basis the inadequate supply of foreign exchange occasioned by the declining fortunes from oil minerals proceeds.

An estimated $5 billion has in the past three years gone down the drain from the country’s foreign reserves trying to support the value of the naira against other currencies of the world.

The CBN governor explained that the assurance of enough supply of forex in the market to meet the demand was based on the fact that Nigeria, despite the depletion in the foreign reserves, still has a robust war chest far above the internationally recommended threshold and reassured that the apex bank would continue to intervene in the market.

Emefiele said: “Take it easy, there is no need for everybody to rush to the market because you may even hurt yourself doing so. The steps we have undertaken will equally deepen the market as investors who have been standing on the sidelines too would be coming in. We have also committed ourselves with the level of guarantees that we are offering. Therefore be calm. There is no cause for alarm,” Emefiele reassured.

He gave some highlights of the new forex regime’s operational framework which include: the market shall operate as a single structure through the inter-bank autonomous window; the exchange rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book; and the CBN would participate in the market through periodic interventions to either buy or sell FX as the need arises.

He also said in order to improve the dynamics of the market, “we will introduce Foreign Exchange Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the bank for large trade sizes on a two-way quote basis.

Also, “these primary dealers shall operate with other dealers in the inter-bank market, amongst other obligations that will be stipulated in the FXPD guidelines” which he said would be released after the briefing.

Other aspects of the framework include that “there shall be no predetermined spread on forex spot transactions executed through the CBN intervention with primary dealers, while all forex spot purchased by authorised dealers are transferable in the inter-bank forex market; the 41 items classified as ‘Not Valid for Foreign Exchange’ as detailed in a previous CBN circular  remain inadmissible in the Nigerian forex market.”

Besides, non-oil exporters are now allowed unfettered access to their forex proceeds, which shall be sold in the inter-bank market.

He announced that in terms of timelines, management of the CBN agreed to among other things, release immediately the detailed operational guidelines for the Flexible Foreign Exchange Market as well as the guidelines for the selection and operations of Forex primary dealers who would be notified by tomorrow;  all other non-primary dealers would remain valid and eligible to participate in the market inter-bank trading under the new guidelines to begin on  June 20, 2016; and finally that the  tenors and rates for the over-the-counter naira-settled forex futures will be announced on June 27, 2016.

Warning that the apex bank would view infraction by operators seriously, he reassured that the bank would make adequate provision for forex supply : “ Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. The CBN expects all authorised dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market-based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. Permit me to emphasise that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the Forex dealing licence of an offending authorized dealer.

“  I therefore urge market participants to assist us in ensuring that this new system enables the CBN to pursue its mandate in a more effective and efficient manner, which guarantees preservation of our scarce commonwealth, stability of our financial system, and growth of our economy to the benefit of all Nigerians. Over the intervening period, we are happy to note that these policies have yielded some positive developments.

“In particular, we have managed to stabilise the exchange rate since February 2015, thereby creating certainty for both household and business decisions, and also underpinning the economic growth we recorded in 2015. We have largely eliminated speculators and rent-seekers from the Foreign Exchange Market”.

The Importance of Mindset

Why is it that some people seem to shine in any sphere in which they choose to exert themselves, and others cannot manage even a glimmer despite obvious talent?

Research shows that it’s the way that they think about their ability that really counts.

Most of those who have achieved greatness, to use Shakespeare’s phrase, have worked extremely hard to get there. Many were told that they would never amount to anything. But they believed that they could achieve, and worked hard to do so.

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Fixed or Growth Mindset?

There are two ways to view intelligence or ability:

·        Ability it is fixed or ingrained – in other words, we are born with a certain level of ability and we cannot change that. This is called a fixed mindset.

·        We can develop our ability through hard work and effort. This is called a growth mindset.

These two different beliefs lead to different behaviour, and also to different results. For example, students with a growth mindset were shown to increase their grades over time. Those who believed that their intelligence was ingrained did not; in fact, their grades got worse.

Having a growth mindset (the belief that you are in control of your own ability, and can learn and improve) is the key to success.

Yes, hard work, effort, and persistence are all important, but not as important as having that underlying belief that you are in control of your own destiny.

This is why you should never praise children by talking about their ability, but instead describe the effort that they put in, and how much they have learned and developed their ability through the activity.

Don’t say: “Well done. You’re really good at maths.”

Do say: “That’s great. You tried really hard, and look how well you’ve done.”

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It is important to praise the process, not the talent or ability.

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Mindset in Practice

People with these two mindsets actually think differently and also react to information differently.

In particular, they respond differently to information about performance.

·        In people with a fixed mindset, the brain is most active when they are being given information about how well they have done, for example, test results or grades.

·        In people with a growth mindset, the brain is most active when they are being told what they could do to improve.

It’s a very different approach: from ‘How did I do?’ to ‘What can I do better next time?’

One is about how they are perceived, and one is about how they can learn. You can see which one is likely to lead to better results in future.

Mindsets in action: The Tortoise and the Hare

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Remember the story of the tortoise and the hare?

The hare was so certain that he would win that he sat down and went to sleep during the race.

The tortoise just plodded on and kept going, always thinking that he had a chance of winning. When the hare woke, he started running as fast as he could, but he was just too late: the tortoise had won.

The hare had a fixed mindset. He believed that his innate ability would always mean that he would win whatever he did.

The tortoise had a growth mindset. He believed that he needed to work hard and keep going if he was to win. He was also not afraid of failure or he would never have agreed to race the hare.

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Dealing with Setbacks

These mindsets also cause people to deal with setbacks differently.

·        People with a fixed mindset are very discouraged by setbacks, because a setback dents their belief in their ability. They tend to become uninterested and give up.

·        People with a growth mindset view a setback as an opportunity to learn. They tend to try harder in an effort to overcome the problem.

“The moment that we believe that success is determined by an ingrained level of ability, we will be brittle in the face of adversity”

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Josh Waitzkin - Chess Grandmaster and Martial Artist

Neuroplasticity:
Did you know your brain can change?

The good news is that you can change your mindset.

Neuroscience shows that our brains continue to develop and change even as adults. Old dogs really can learn new tricks.

The brain is actually quite like plastic, and can be reshaped over time, forming new neural pathways. This has led neuroscientists to call this tendency neuroplasticity.

These neural pathways are developed by doing or thinking particular things. The things that we do or say more often become hard-wired into our brains as habits. These form defined ‘routes’ in our brain, which become easier to use.

But you can still change them. The first step is to realise that you need to, then to train your brain in the new skill. It may help to think about this learning as a cycle, and the competence cycle is described further on our page What is Coaching?

There are three key things that you can do to develop a growth mindset:

1.     You need to recognise that a growth mindset is not just good, but is also supported by science. In other words, you need to be committed to developing a growth mindset.

2.     You can learn and teach others about how to develop and improve their abilities through adopting a growth mindset. This will help you to take control of your life, which is hugely empowering. Research shows that people who feel in control tend to perform better. It’s a virtuous cycle.

3.     Listen out for your fixed mindset voice. When you hear that little critical voice in your head telling you that you can’t do something, reply with a growth mindset approach and tell it that you can learn.

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Mindsets in Life

Mindsets are not just important for learning new skills. They can affect the way that we think about everything.

For example, a growth mindset can help you recover from illness because you believe that you can do something about the illness. They can help you achieve in sport, at work and can also help you grow and develop in relationships.

Cultivating a growth mindset could be the single most important thing you ever do to help you achieve success.

Find more at: http://www.skillsyouneed.com/ps/mindsets.html#ixzz4BfD7y739

HOPE: FG releases N280bn to six ministries, 50 agencies

The Federal Government on Tuesday announced that it had so far released N280bn from the N350bn set aside for capital projects as contained in the 2016 budget.

It stated that the funds had been sent to the Federal Ministry of Finance for onward disbursement to six ministries and over 50 agencies, adding that the funds were for ongoing projects and for new ones.

This is coming as the Bureau of Public Procurement stated that it had projected to save N48bn for the government through the electronic procurement system, while implementing the 2016 budget.

The Minister of State for Budget and Planning, Mrs. Zainab Ahmed, stated that the release of the N350bn was ongoing, but explained that projects to be funded must be thoroughly scrutinised.

Ahmed, who spoke during the budget review and inclusive monitoring workshop organised by BudgIT, a non-governmental organisation in Abuja, said, “The release of the N350bn is ongoing, but of course, we are not releasing the budget just based on giving out funds with respect to allocations. We need to scrutinise the projects; it took some time, but we have sent about N280bn for projects that have been scrutinised and the release will be for special projects.

“And recommendation was on projects that are ongoing, except for a few exceptional circumstances. We are not releasing funds for new projects.”

Asked to name the Ministries, Departments and Agencies to benefit from the fund release, she said, “We have sent to the Ministry of Finance for up to about 50 MDAs or 60, but I can tell you that Power, Works and Housing; Agriculture; Interior; Education; Information and Environment are part of the ministries that we have sent to. We have reviewed their projects, approved them and have sent them to the Ministry of Finance.

“There are about 60 MDAs already in the first batch. We have another batch of about 30 where the screening process has been concluded and we should be able to send that today (Tuesday) or tomorrow (Wednesday).”

On how the country would save N48bn through e-procurement, the Director-General, BPP, Mr. Ahmed Abdul, who also attended the event, stated that the initiative would reduce corruption created by human interface.

He said, “We are looking at implementing the electronic procurement system for the country. The whole idea is that most of the issues or corruption related issues are arising from human interface. Through electronic procurement, you will reduce human interface; and by so doing, you will increase efficiency and as well save a lot of money while implementing your budget.

“We have a projection that if we adopt an electronic procurement system, we are going to save about N48bn. This amount will be saved in 2016 if we can successfully adopt the electronic system of procurement.”

The Lead Partner, BudgIT, Mr. Oluseun Onigbinde, stated that the government should ensure an inclusive budget, as previous budgets had recorded poor capital implementation.

“The expansionist approach of the 2016 budget is very bold but the assumptions on which the document was made straddle the edge of unfeasible expectations, specifically with respect to non-oil revenue and independent revenues,” he stated.

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Unemployment: NABTEB, LAPO collaborate on skill acquisition

The National Business and Technical Examinations Board and the Lift Above Poverty Organisation Microfinance Bank on Tuesday launched a partnership to provide skill acquisition and vocational training for unemployed Nigerians.

The Managing Director and Chief Executive Officer, LAPO MFB, Dr. Godwin Ehigiamusoe, explained that the initiative would create opportunities for beneficiaries from 28 states and the Federal Capital Territory to receive practical training in catering, hairdressing, bead making and Information and Communications Technology.

Ehigiamusoe, who spoke while signing a Memorandum of Understanding with the Registrar and Chief Executive Officer of NABTEB, Dr. Olatunde Aworanti, explained that the financial institution would provide start-up loans ranging from N50,000 to N200,000 to the successful trainees, who would be certified by the examination body.

He also said that the loans were repayable within 24 months, with an interest rate of 2.5 per cent.

The LAPO chief, who was represented by the Head of Sustainability, Brandy Stevens-Igbe, noted that 60 beneficiaries were currently undergoing a six-month training at the National Directorate of Employment and the Women Development Centres in Edo and Lagos states.

Ehigiamusoe stated, “After NABTEB has certified them, we are going to do another rollout. This time, it is going to be 50 in Benin and we will do 60 in Lagos, because we have Lagos One and Lagos Two.

“It is imperative for us in LAPO that were are giving children the stepping stone to move on because the economic development and growth of a country depend on small and medium enterprises.”

Earlier, Aworanti said the initiative was a common aspiration between the two institutions on youth development and empowerment for sustainable national growth through skills training, acquisition, assessment and certification.

“What we are interested in is getting these people out of the streets and getting them employed,” he added.

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CBN to release flexible exchange rate policy today

The new flexible exchange rate policy will be released today (Wednesday), the Acting Director, Corporate Communications of the Central of Bank of Nigeria, Mr. Isaac Okoroafor, has said.

The CBN’ Monetary Policy Committee had on May 24 risen from its bi-monthly meeting and announced plans to adopt greater flexibility in the management of foreign exchange.

Okoroafor, who told our correspondent on Tuesday that the policy would be unveiled on Wednesday, did not elaborate on the modality.

However, our correspondent gathered that the Governor, CBN, Mr. Godwin Emefiele, would release the blueprint during a news conference scheduled to hold at the apex bank’s headquarters in Abuja by noon.

The delay in the release of the details of the policy has led to further depreciation of the naira at the parallel market. It has also made equities to post record losses in the past few weeks.

Experts and stakeholders believe a flexible exchange rate policy is the right way to go for the country.

The Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, had said it would lead to the reduction in the arrears of remittances, which had accumulated for the past 18 months; reduce uncertainty that investors had been grappling with over the last one year; and boost investor confidence as well as attract greater forex inflows to the economy.

The Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, who lauded the proposed exchange rate policy, said the development would eliminate the fears that foreign investors had been nursing about the Nigerian forex policy.

According to him, the decision may make the naira to depreciate initially, but it will find its equilibrum price later.

Addressing journalists at the end of the bi-monthly MPC meeting in Abuja last month, Emefiele had said, “The MPC voted unanimously to adopt greater flexibility in exchange rate policy to restore the automatic adjustment properties of the exchange rate. Consequently, all nine members voted to hold and introduce greater flexibility in managing the foreign exchange rate.”

Meanwhile, the looming economic recession in the country may have forced the CBN to postpone the announcement of a new Capital Adequacy Ratio for Systemically Important Banks scheduled to begin on July 1, it has been learnt.

The CBN had in 2014 ordered the SIBs to boost their minimum CAR to 16 per cent from 15 per cent to increase their resilience to shocks.

The SIBs are First Bank of Nigeria Limited, Guaranty Trust Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Access Bank Plc, Skye Bank Plc, Ecobank Nigeria and Diamond Bank Plc.

The eight financial institutions designated as the SIBs by the central bank were required to hold more liquid assets and a liquidity ratio of 35 per cent.

This meant the affected banks were expected to have a minimum liquidity ratio, which is five per cent above the 30 per cent requirement in the industry.

The new CAR, which was the fallout of the 2009 banking crisis in the country, was scheduled to start on July 1, 2016.

However, the central bank is planning to postpone the rule because the “sensible” thing to do is “reflate the economy and encourage lending,” the Director of Banking Supervision, CBN, Mrs. Tokunbo Martins, toldBloomberg on Tuesday.

She said an announcement on the new date of implementation would be made by the end of the week.

The Federal Government is planning to avoid a recession or mitigate the impact of a looming one by boosting banking lending to stimulate economic growth.

The capital adequacy ratio of nation’s biggest banks declined to 16.6 per cent at the end of April from 17 per cent a year earlier as economic headwinds increased, Martins said.

If the rules had to be implemented at the beginning of next month, it wouldn’t leave “much headroom for proper lending,” she said.

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