HENATES

Once upon a time, one of the most sacred earthly and official relationship between human beings was the one between banks and their customers. It never used to cross any customers mind that banks can be fraudulent. Now, however, only one destined to be set up as the next mugu (wealthy fool) will go to sleep believing that banks can not be deliberately fraudulent. For example, the German big bank, Deutsche Bank, according to reports, is now battling to stay afloat after the US department of Justice recently slammed it with $14m fine for peddling fake mortgage backed services. This amount was twice the figure the bank had set aside for settlement of the matter and some analysts now expect Germany to offer it some bail out because of the implication for her economy should the unexpected happen. While this was being chewed by international finance, yet another big player, Wells Fargo, was fined $185m for illegal practice of opening about 2m accounts for customers without their know...

It will take a while before the audited figures for the year to September to be available but it looks like Vitafoam Nigeria PLC will settle for loss this financial year, courtesy of its subsidiaries. This is because, the figures for the nine months to June, released only this week, reflect N49.1m loss for the group while the company recorded only 51% drop in profit before tax to N283.2m. The main problem really is that the subsidiaries seem to be bearing big burden of finance cost with the group figure jumping by 31.4% to N728.5m compared to only 1.1% increase in that of the company to N467.3m from N462.2m. For good reason. The group working capital eased to N653.9m from N678.2m while that of the company improved to N1831.7m from N1651.5m previously. There is also issue of higher percentage drops in cost in response to revenue decreases for the company when compared to group ones. Hence while the company's operating profit dropped by only 8.57% to N950.5m from N1039.6m, ...

If all goes well with the plans of the Federal Road Safety Corps (FRSC) of Nigeria, all vehicles used for public transport must have speed monitoring device installed in them by today or be off the nation's highways by tomorrow. According to news reports, this is because the FRSC is finally going to monitor compliance with directive for the installation of the device in all vehicles plying Nigerian roads starting the public transport facilities. Not a bad idea because it will ensure drivers stay within recommended speed limits and reduce deaths from accidents caused by excessive speed. It is not a disincentive to transport business in Nigeria either, because if it were, that would have been enough reason to suspend or cancel implementation for now. Yet, there is still a caveat to it all. Is the device too technical to be manufactured, or at least, assembled in Nigeria? If the answer is no, then someone must answer the next question: What are the plans on ground to install ...

A friend sent me below the resignation letter of Obafemi Awolowo from the federal cabinet after the civil war and the Head of state, General Yakubu Gowon's reply. It offers some good lessons on today's trying times. CHIEF OBAFEMI AWOLOWO'S RESIGNATION LETTER FROM THE FEDERAL EXECUTIVE COUNCIL DATED JUNE 13, 1971 TO GENERAL YAKUBU GOWON June 3, 1971. My dear Commander-in-Chief, You will recall that in a statement made by me and published in the SUNDAY TIMES of March 30, 1969, I declared, among other things, as follows: "Even at the federal level, I have no desire whatsoever, and I certainly cannot be tempted or induced to develop one, to head, or participate in an unelected or even an electoral-college elected civil administration in a military or any setting. At the moment, I am participating in the activities of the military government because I have been invited, and I also think it is right, so to do. I am, therefore, obliged, morally and for the purpose...

When a senior colleague who honours Henates by calling him a friend, responded recently to the post on Asset sale option, he asked that the response should be for my eyes only. That was his right and it was conceded readily but what he had to say could not be for these eyes only. The words brought back to focus the old worm called credibility gap between the government and the governed in Nigeria. He said that the real unfortunate issue is that insincerity was the problem. To him, many of those who are advocating national asset sale have money and foreign connections to buy off those assets once put on the block. On the other hand, he added, many of those opposed to the sale have political power or leverage with which they can continue to milk the national assets without caring for what happens to Nigeria in the process. Finally, there was the group in between, for and against, who are sincere and do truly believe in whatever they are saying but of course, none is listening to ...

In an earlier post based on patronage figures for the Nigerian agricultural credit guarantee scheme Henates had established that companies need to be encouraged to access the scheme. They simply do not. But that seems to be a minor part of the problem with agriculture today in Nigeria. Mostly, only local small scale farmers are involved and in particular, only peanuts flow for agriculture through capital importation. According to figures released by the National Bureau of Statistics for the second quarter of this year. Since 2013, only one quarter recorded close to $100m capital importation for agriculture: The third quarter of 2015 when $95m was so imported. In every other quarter, even $40m was worth celebrating (3rd quarter 2013) because most of the quarterly figures ranged below $5m for agriculture. In 2016 second quarter $1m was imported for agriculture. It is sad that even this peanut represented significant increase on first quarter's $0.20m and on 2015 second quart...

Of course, Nigeria has option to sell national assets to get out of the current recession.  The real issue is, should this be done? Then more questions follow in step. Is the time ripe for this to be done? After all it is well acknowledged that there is time for everything. Then, is the present administration the right one to handle it and deploy the proceeds? Finally, are there any alternatives to national assets sale in these times? What opportunity costs are attendant on these other options and the national asset sale? Perhaps, the last question should have come up first. Of course, the immediate objective is to raise investible funds that can be used to kick start the economy on to immediate path of recovery From this premise, the first option really is balance of payments support from the International Monetary Fund (IMF). Much as the IMF was set up primarily for this kind of support and Nigeria will not be the first to reach for it, antecedents and feelings that run dee...