" ITREALMS: 2017-03-05

Saturday, March 11, 2017

Complaint about ICANN’s new complaints office

Commentary@ITRealms:  

ICANN executives that this new process would be relevant and responsive to those prior URS complaints, we were willing to wait and see who was appointed as the new Complaints Officer and how the process would work. 

We presumed that the hire for this new post would be an ICANN outsider, in order to eliminate any prior relationships or internal culture acclimatization that might create a perception or reality of bias; and that the individual would have a strong background in handling corporate accountability and effectively resolving complaints arising from within and outside an organization.

That announcement was made today –
The Internet Corporation for Assigned Names and Numbers (ICANN) today announced that Krista Papac, Director of Registry Services and Engagement for ICANN’s Global Domains Division, has been named as ICANN’s Complaints Officer.

We have serious concerns about this choice — and they have nothing to do with Ms. Papac, for whom we have the highest personal and professional regard.

But how can any individual who has worked for years within ICANN’s GDD be expected to cast prior experience and relationships aside to thoroughly and dispassionately investigate a complaint brought against GDD actions generally, or those of a specific member of the GDD staff?

More specifically, in regard to ICA’s longstanding complaint about imposition of URS through the RA renewal process, Ms. Papac was the principal GDD staff contact for all five of the RAs which we have objected to. So how can she be expected to objectively deal with a complaint about ICANN actions for which she had primary responsibility? In effect, we’d be asking her to investigate her own official actions.

Again, ICA is awaiting full information about the new complaints process and the available relief it may afford before deciding whether to test it. But given Ms. Papac’s primary responsibility for the very official actions we’d be complaining about, it seems like we would be compelled to ask her to recuse herself from handling the complaint. Whether she would, and who ICANN might then select to handle the complaint, are unanswered questions to be resolved down the road.

Regardless of the answers, today’s development reiterates the need for the Work Stream II Accountability process to recommend modifications that significantly enhance the powers of an independent ICANN Ombudsman reporting directly to the Board.

It seemed clear to us that ICANN should have sought a disinterested person with a strong and demonstrated background in effective corporate responsibility to handle this important new post. That it instead selected an ICANN insider seems like a major unforced error. And 
that’s our complaint of the day.


By Philip Corwin contributed this from ICA.
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US deports Nigerians: I was handcuffed, locked in a cell for four days at US airport – Victim

 At least, two Nigerians with valid visas, who were denied entry into the United States have alleged that they were humiliated and dehumanised by the US immigration and border protection officials at the Los Angeles International Airport and the Abu Dhabi Airport in the United Arab Emirates.
The victims, Femi Olaniyi and Popoola Olayemi, the latter having travelled to the US with his pregnant wife and two children, said their two-year multiple entry visas were revoked without any explanation before they were sent back to Nigeria by the US authorities.
Olaniyi, a real estate businessman, said he obtained his visa from the US Consulate in Lagos on December 23, 2016, adding that he had planned for a holiday in the US with his wife.
He explained that his spouse, a police officer, could not make the trip due to her official schedule.
According to him, he had planned to spend some days in California and visit a family in Indianapolis, stating that he had a hotel reservation, about $300 cash and $3,000 on his visa gold.
He said he left Lagos on a Turkish Airline on February 21, 2017 and on getting to the Los Angeles Airport, an immigration officer demanded his reason for visiting America which he explained.
He added that the officer also took his phone and travel documents, noting that he later captured his biometric data.
Olaniyi stated, “He demanded my phone which I gave to him. He went inside an office with the telephone and documents and later checked my luggage. He asked about my family which I told him.
“He later said he wanted my biometrics. He then asked me to sign some documents, but as I attempted to read them, he got angry and he handcuffed me and locked me in a cold cell, but after some minutes, I banged on the door and told him that the cell was too cold for me, so he moved me to another cell.
“I was in that cell for four days before he released me and sent me back to Nigeria. I arrived on February 21 and was locked in the cell and released on February 25, when I was placed on a plane back to Nigeria. Up till now, I don’t know the offence I committed that warranted my being treated like a criminal.”
The businessman stated that he had visited other countries and had never suffered such humiliation, adding that he was humiliated by the US immigration officer.
“I have travelled to other countries and have never experienced this kind of treatment. I told them to charge me to court but they said no, that I was not entitled to court hearing.
“They revoked my visa and banned me from visiting the US for five years. This was written on my passport, for an offence I know nothing about. My visa was to expire next year,” Olaniyi stated.
The father of three called on the Federal Government to raise the issue with the US government, stressing that the nation could not afford to gloss over the incident.
‘What Abike (Dabiri-Erewa) said is true, I am a living witness. This incident cost me close to a million naira and we are not even talking of the damage done to my reputation through the revocation of my visa and the five-year ban on me,” he said.
Olaniyi added, “If I take my passport to any embassy, they would think l committed a terrible offence. They detained and treated me like a criminal. The Federal Government should address this issue. It is very unfortunate.”
Olayemi, who was visiting Florida with his pregnant wife and two children, also had a sorry tale to narrate as he was sent back by  US officials at the Abu Dhabi airport where he was to board a connecting flight to New York.
The banker stated that the immigration officials initially said the $8,000 he had on him was not sufficient for him and his family.
After convincing them that he had friends who could raise money for him if the need arose, Olayemi explained that the officials asked him to go back home and return to the US after his wife might have had her baby.
He said, “The officer appeared to dial a number on his telephone, though I am not sure he talked to anyone, he said we didn’t make a hotel reservation but I showed him the hotel confirmation code. I showed them the printout, but he said he had called the hotel and they said there was no reservation.
“He then insisted that I should re-book my hotel accommodation but there was no telephone service at the airport. I couldn’t make phone calls. My children were crying. Nobody attended to us. We were kept there for over two hours. He harassed me and then gave my wife a form to fill.
“Later, they showed me a form, containing passengers they cleared, saying some declared $15,000 and others $20,000. He said this was a lesson for me and that next time I’m visiting the US, I should fly directly to New York and not stop over.
“He later gave me a questionnaire to fill, but the form has only one answer to every question, so you can’t tick ‘no’ to any question even if the answer is no. So, I was forced to tick ‘yes’ to all the questions: that I did not go with enough money; that I did not make hotel reservation, and so on.”
Olayemi further said, “My passport was seized and that of my wife. After some hours, they handed us over to Etihad Airline crew and we were asked to sit down somewhere. Nobody attended to us for about an hour or two. The children were shivering and they had to sleep on a blanket on the floor.
“I later met their overall boss, who gave us tickets for lunch and dinner, they didn’t even tell us they were taking us back to Nigeria. It was when I got to Lagos that I saw that my visa had been cancelled.
“The immigration officer was telling my wife to go home and have her baby and that she should come to the US after having her baby.”
Asked how he was able to confirm that the officers were Americans, the banker identified one of them as a US citizen of Nigerian parentage.
“They are US border protection agents. One of them is a black American with an Igbo name, Ogbonnaya,” he stated, adding that another Nigerian was also denied entry to the US “on account of his luggage.”
Reacting to the statement by the Federal Government that no Nigerian was denied entry to the US, Olayemi said angrily, “I’m sorry to say, but the man (foreign affairs minister) didn’t know what he was saying. He ought to investigate first before addressing a press conference. They just wanted to sweep the issue under the carpet, but this is not fair or right.”
He said the failed trip cost him over N1.3m in air ticket alone.
The Minister of Foreign Affairs, Mr. Geoffrey Onyema, had, on Tuesday, refuted the advice of the Senior Special Assistant to the President on Foreign Affairs and Diaspora, Mrs. Abike Dabiri-Erewa, that Nigerians, wishing to visit the US should suspend their trips until the Donald Trump administration clarified its restriction on visits to the US.
Dabiri-Erewa had said the US border officials had denied several Nigerians entry into the US and deported the victims even when the visitors had valid visas.
Onyema, who did not explain his effort to investigate the deportation of the Nigerians, called on Nigerians to travel to the US as they wished, saying no Nigerian had been denied entry to the country.

Adelani Adepegba, Abuja, Courtesy: PUNCH Contact: editor@punchng.com
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Friday, March 10, 2017

Etisalat-Bank saga: ALTON requests telecom equipment inclusion in CBN 60% forex allocation

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has requested the Nigerian Communications Commission (NCC) to ensure the fast tracking engagement with the Central Bank of Nigeria (CBN) to include Telecommunications Equipment and Invisibles among the list of items to benefit from the 60 per cent foreign exchange (FOREX) by banks in the country, reports ITRealms.

ALTON, the umbrella body of licensed telecommunications operators in the country, through its Chairman, Mr. Gbenga Adebayo gave this charge in reaction to the threat by some three bank consortium to take-over one of its own, Etisalat Nigeria over inability to service loan facility worth N541bn secured in 2015, saying that inclusion of telecommunications equipment and invisible in the sector in the allocation guidelines, would ensure the continued provision of world class telecommunications services to the consumers.

While commending NCC and CBN recent steps, ALTON said that lack of exemption of telecommunications equipment and services from items to be accorded priority in the allocation of forex by the banks has adversely impacted the industry.

ALTON in a four-page plea, noted that current forex regime will have devastating impact on telecommunications sector, specifically will increase operating cost, prevail an unfavourable credit terms, delay implementation of network enhancement and improvement initiatives, and affect the national broadband plan to name a few.

“Telecommunications equipment is plant and machinery,” Adebayo declared, pointing out that telecommunications service providers are similar to manufacturing firms and deserve to be treated in the same manner. 

“The core network equipment and other auxiliary equipment procured for providing Voice and Data Services are equivalent to plant and machinery acquired by the manufacturing firms for the production of goods and services in the country,” he argued.

Currently, he said that some of the plants and machinery often procured and imported into the country by telecom operators include Radio Frequency (RF) Coverage Equipment (BTS, BSC, Node B, RNC); Core Equipment (MSC, Media Gateway, RMC, CCN, EMM, Packet Core, MPLS Nodes, etc); Transmission Equipment (Microwave, Optical Fibre, RF Planning Tools); Customer Contact Equipment (SIM Cards); and Network Tools (Planning tools, Monitoring tools) among others.


ALTON, therefore, maintained that subsequently the aforementioned equipment are integrated to form a network to provide services of voice, data, Short messaging service, Value Added Service (VAS), enterprise solutions and leased lines, which are finished goods in the telecommunications sector. 

Chuks Egbune/GEE 
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Immortalise Omatek founder, late Florence Seriki says NITIG

A Non-Governmental Organisation (NGO), the Nigerian Technology Impact Group (NITIG), has called on the Federal Government (FG) to immortalise late Founder and Group Managing Director of Omatek Venture Plc, Mrs. Florence Omatule Seriki, reports ITRealms.

NITIG in a press statement made available to ITRealms by its chairman and director of communications, Messrs Abimbola Tooki and Olubayo Abiodun, said they received with a rude shock the death of Engineer (Mrs) Florence Seriki, who is the chief executive officer (CEO) Omatek Venture Plc, who passed on at age 53 on Friday, March 3 at the Lagos University Teaching Hospital (LUTH) after a protracted battle with cancer.

Also, NITIG though saddened by the untimely demise of this amazing amazon who bestrode the technology plane in Nigeria, said they are however, celebrating the indelible legacies of this unique technoprenuer who brighten the hope of women in the male dominated industry with her brazen forays into the terrain laced with risky bumps for investors.

Based on her exploits in the Information and Communication Technology (ICT) industry, NITIG called on relevant federal and state government authorities to present posthumous award to Engineer (Mrs) Florence Omatule Seriki in the nation’s hall of fame to immortalise her ground breaking contributions in the fields of innovations, entrepreneurship, research and development, commerce, knowledge development and brand management.

NITIG further said, it will continue to celebrate this woman of distinction and would be unrelenting in ensuring a befitting honour for this ICTs local content legend, who was passionate about ‘Buy made in Nigeria.’

The group further said it is consoled that with her sterling qualities exemplified in the combination of brawn, brain and beauty, Florence devoted her energies to laying the building blocks for what is today reckoned as the foundation for the made in Nigeria Personal Computers (PCs) and hand held ICT devices that her company pioneered in Nigeria.

“The pedigree of her unparalleled and high octane successes in the technology terrain was hinged on her brilliant performances in academic sojourn from the cradle till she graduated as a Chemical Engineer in 1993 at the old University of Ife (now Obafemi Awolowo University),” the group said.  NITIG also said it’s comforted that Florence’s beautiful heart which influenced her nuances endeared her to the ICT community and other stakeholders in the Nigerian project.


“This acknowledgment will not be too much for a woman, mother, innovator, entrepreneur and thinker who harvested over 150 awards in the 30 years journey of building Omatek as a viable brand in the ICT ecosphere,” NITIG asserted.

Chuks Egbune/GEE
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President Buhari to continue medical rest in Nigeria, return to UK in 3 weeks

Despite spending 51 days in the United Kingdom (UK) on medical vacation, President Muhammadu Buhari returned to Nigeria, Friday morning, to continue his rest at home, ITRealms exclusively reports.

Also, President Buhari, ITRealms gathered, will be returning to the United Kingdom in three weeks for further medical checks.

This, Aso Rock analyst said, would enable the vice President, Prof. Yemi Osinbajo to consolidate his acting capacity.

For most Nigerians, this development is an endorsement for Osinbajo’s presidency and capacity to lead the country which has seen some improvement since January 19, 2017.

Yet for another school of thought, Osinbajo’s continuation would blossom from the current state, which many described as mess.

President Muhammadu Buhari returned to the country, Friday March 10, 2017 after his plane landed at the Kaduna Airforce base before he was chauffeured to Aso Rock with an helicopter, after he was received by top government officials.

On arrival at Aso Rock, President Buhari, correspondent report, entered into meeting with service chiefs and chieftains of All Progressive Congress (APC) led by its chairman, Chief John Odigie Oyegun.

Earlier, the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said, the extended holiday was based on doctors' recommendation for further tests and rest.

ITRealms, recalls that President Buhari left Nigeria on January 19, 2017 for a vacation, during which he had routine medical check-ups.

As said by Adesina, President Buhari expressed appreciation to teeming Nigerians from across the country, and beyond, who had prayed fervently for him, and also sent their good wishes.


Uboshe Uboshe/GEE 
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Etisalat-Consortium saga: ATCON blames forex scarcity, Omo-Ettu berates banks

The Association of Telecommunications Companies of Nigeria (ATCON), has blamed the instability in accessing the Foreign Exchange (Forex) due to dependence on the United States Dollar (USD$) which led to the saga between one of the Mobile Network Operator, Etisalat Nigeria and some three Nigerian bank consortium, reports ITRealms.

This is coming as telecom engineer and Broadband evangelist, Mr. Titi Omo-Ettu, has berated Nigerian banks and financiers who at every provocation, seek to take over the company, especially in telecommunication sector.

ITRealms recalls that some three bankers under a consortium had stepped up plans to take over Etisalat Nigeria for alleged failure to repay a loan to the tune of N541 billion, secured in 2015. These banks include Access Bank, Guaranty Trust Bank, and Zenith Bank.

For ATCON President, Mr. Olusola Teniola, the plans to take over EMTS Nigeria (trading as Etisalat) would need regulatory approval, so though a threat, they are waiting in anticipating to see how the banks would have resolved the Forex issue.

The problem, ATCON said, is always an industry issue that depends on USD$ for its Capital Expenditure (CAPEX) spending to build out networks and upgrade capacity to sustain the growth that has been witnessed.

“EMTS management has the confidence of the industry that they will resolve this particular challenge,” he said.

Noting that ATCON has been advocating for over 9 months for government to address this forex problem, stressing that the fact that it now takes an industry player to realise that this is unsustainable is an unfortunate.

The realistic solution, ATCON canvassed is that the industry seeks leadership from government especially the Central Bank of Nigeria (CBN) to enlist telecommunication infrastructure equipment as a category that could access favourable naira to dollar rates.

“Finally, we await NCC intervention with CBN to produce an outcome so that the industry can have a proper framework in place to fund broadband infrastructure with fair terms that includes hedging instruments to protect investments made in the industry to date and in the future,” ATCON president canvassed.

However, former president of ATCON and broadband evangelist, Mr. Titi Omo-Ettu, described as amusing the suggestion of takeover of a telecommunication company for whatever reasons, including what he tagged as special misdemeanours, moreso associated with non-operating loans.

“What, for God's sake, can ever be the objective and the end result, in this clime,” he wondered?

Chuks Egbune/GEE

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CCT Review Team to brief community @ Copenhagen ICANN58 meeting

In furtherance of its obligation to the global internet community, the Competition, Consumer Trust and Consumer Choice (CCT) Review Team of the Internet Corporation for Assigned Names and Numbers (ICANN), would on March 12, 2017 brief stakeholders at the ICANN58 public meeting, reports ITRealms.

The Competition, Consumer Trust and Consumer Choice Review Team, ITRealms recollects was initially convened in 2015 under the Affirmation of Commitments, and under ICANN's new Bylaws, the review is now referred to as a "Specific Review".

The CCT Review Team, ITRealms gathered would meet at ICANN58 and brief the community on its findings and recommendations at their consultation session slated for Sunday, March 12 by 9 AM in Hall A3, Copenhagen, Denmark.

ITRealms notes that Specific Reviews are mandated by ICANN Bylaws and are crucial to the legitimacy and accountability of ICANN, thus serve as ICANN's progress report to the world.

The reviews equally demonstrate how ICANN delivers on its commitments and identify areas where ICANN could improve.

Specific Reviews are conducted by members of the stakeholder community who look at past processes, actions and outcomes in order to make recommendations to improve future performance.

While ICANN's mission is to help ensure a stable, secure and unified global Internet, because to reach another person on the Internet, you have to type an address into your computer - a name or a number.

“That address has to be unique so computers know where to find each other. ICANN helps coordinate and support these unique identifiers across the world,” ICANN source said.


Nenye Dom/GEE
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Thursday, March 09, 2017

Buhari’s Friday return raises anxiety @Presidency

The much anticipated return of President Muhammadu Buhari is creating some anxiety among Nigerians who are eagerly waiting to behold their president, reports ITRealms.

This is approaching as even more anxiety was reportedly heightened at the Presidency, where the Acting President, Prof. Yemi Osinbajo has been acting which some observers who would not like to be named have been working out well.

President Muhammadu Buhari is expected to return to the country tomorrow, Friday March 10, 2017.

Announcing the expected return of Buhari after weeks of extended vacation in the United Kingdom, the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said, the holiday was extended based on doctors' recommendation for further tests and rest.

ITRealms, recalls that President Buhari left Nigeria on January 19, 2017 for a vacation, during which he had routine medical check-ups.

According to Adesina, President Buhari expressed appreciation to teeming Nigerians from across the country, and beyond, who had prayed fervently for him, and also sent their good wishes.

Aside the anxiety at the presidency, socio-economic political observers said the gains made against the United States Dollar ($) may shrink, therefore scaling up to some N500 per dollar, due to some body languages of Mr. President.


Ayo Midele/GEE
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Etisalat denies take over by bank consortium, says no panic


Etisalat Nigeria has denied news making a round that it has been taken over by some consortium over delays in meeting up with servicing of loan facility worth N541bn secured in 2015, reports ITRealms.

Speaking on this development, the Vice President for Regulatory Affairs at Etisalat Nigeria, Mr. Ibrahim Dikko, noted that although Etisalat missed payments due to the economic downturn in Nigeria, currency devaluation and dollar shortages on the country’s interbank market.

The bankers, he insisted have not taken over Etisalat Nigeria as discussion is ongoing for possible renegotiations.

“They have not taken over the business and we are hoping that we can resolve the issue and find a way to renegotiate terms,” Dikko declared.

He explained that the business performed well, last year, and still in profit at the level of  Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), while loan repayments had been up to date “until recently.”

Dikko further said the company was now looking at “all the options”, which could include converting the loan into Naira, but did not want to anticipate the outcome of talks with the lenders.

Earlier the Head, Corporate Affairs, Mrs. Seyi Osunsedo had told newsmen earlier that there is no need for telecom subscribers and investors to panic, as efforts have been on high-gear to resolve the issue largely caused by instability in foreign exchange.

Meanwhile, ITRealms reports that Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have summoned Etisalat and the three-member bank consortium to an emergency meeting tomorrow, Friday at CBN headquarters in Abuja.

Remmy Nweke/GEE
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Breaking News: CBN, NCC intervene on Etisalat loan, summon parties

The management of the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have intervened in the loan burden between Etisalat Nigeria and a consortium of commercial banks, reports ITRealms.

This, ITRealms gathered, followed a management meeting between the two regulators of telecommunications and financial sectors, in order to salvage the matter at the instance of NCC, which paved the way for an urgent meeting for Friday, March 10 between the feuding parties.

Confirming this, the Director, Public Affairs, Nigerian Communications Commission, Tony Ojobo told ITRealms that a meeting was held Thursday afternoon in Abuja between the Executive Vice Chairman (EVC) of NCC, Prof. Umar Danbatta and Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, alongside his team.

According to Ojobo, a decision was reached to intervene in the loan issue between Etisalat Nigeria and a consortium of commercial banks.

He also disclosed that the meeting which held at the Central Bank Headquarters in Abuja was convened by the financial regulator at the instance of NCC, the telecom regulator, to further deliberate on how best to stop the attempt by the banks to take over Etisalat.

“At the end of the meeting, the Central Bank of Nigeria agreed to invite Etisalat management and the banks to a meeting tomorrow, Friday, towards finding an amicable resolution,” he said.

Ojobo further said that NCC as a regulator of the telecom industry had moved quickly to intervene earlier in the week by reaching out to the CBN and was convinced of the negative impact such a bank take over will have on the industry.


NCC, he said, is concerned about the fate of the over 20 million Etisalat subscribers and the wrong signals this may send to potential investors in the telecom industry.

Chuks Egbune/GEE
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FGN Savings Bond: Promoting Savings Culture according to DMO

Commentary@ITRealms: 
It’s very much unlikely that there is an adult person, man or woman, who has never borrowed money at one time or the other. It could be from an individual such as parents, brother or sister, friends or from a lending institution. Institutions, states and nations, just like individuals also borrow to augment revenue and execute projects.

But it is disputable to argue that everyone saves. It is even more so to suggest that everyone engages in long term saving, especially in this clime where there is, for the multitude, a huge disparity between income and expenditure, with the later weighing heavier. 

Yet, some experts have argued that anyone who earns income is capable of saving a part of it, notwithstanding the pay cheque. It is a matter of re-ordering priorities, they argue. Saving is good, especially if it is done on a medium to long term basis with a financial institution that pays interest on savings. It will not only allow one save for the rainy day, as they say, but also allows the money to grow.

But this argument is not persuasive enough in Nigerian where financial institutions pay meagre interest on savings, mostly in single digit. Yet when they want to lend the money they charge double digits interest.

This is why the Federal Government Saving Bond that is billed to go on sale later this month is a game changer for Nigerians, especially for retail investors who have not been prominent players in the country’s capital market. The Debt Management Office, MO, announced last week that the FG will put on sale savings bonds with two to three year maturities.

Although Interest rate for the bond has not been announced yet, but going by the rate of other FG bonds, it is expected to be up to 16.5 percent or more, and will be paid quarterly. The bond offer will open on March 13 and end after five days, the debt office said, adding that new issues will be sold every month.

The FG intended to raise money locally to offset growing budget deficit through the bond. The government depends on local borrowing to fund more than half its budget deficit, which is expected to reach N2.36 trillion this year. It issued a $1 billion Eurobond in February and is now seeking National Assembly’s approval for an additional $500 million Eurobond.

There is a plan to also put on offer a N20 billion “Green Bond” in April this year. This is in addition to a plan to sell a $300 million Diaspora Bond abroad this year and its first Sovereign Sukuk in the local mark.

While the government looks to raising fund to finance critical infrastructure projects such as power, roads and rail, and projects aimed at diversifying the economy away from oil and gas, the judicious use of the funds generated will no doubt bring positive turn-around to the economy.Experts have agreed that considering the huge infrastructural deficit currently being experienced in the country and the enormous financial resources required to fill the gap in the face of dwindling government revenue and the inability of our annual budget to bridge the infrastructure deficit, it has become necessary to resort to prudent external and domestic borrowing to bridge the gap. 

Spending on critical capital projects as one planned by the Muhammadu Buhari administration is one of the surest and fastest ways of reflating an economy in depression. Not only would businesses that have closed shop open for business again, but Nigerians who had lost their jobs due to recession would get them back. This would have immediate multiplier effect on all sectors of the economy.

But while the savings bond will help government mobilise domestic resources for deployment into important capital projects to reflate the economy, the savings bond also as its benefit for the ordinary Nigerians.

The bond issuance is part of the Federal Government programme targeted at the lower income earners to encourage savings. Up till now, you have to be among the high-net worth Nigerians to be a player in the capital market and earn fantastic returns on your investments. The FG Saving bond will change all that as ordinary Nigerians with as low as N5000 have the opportunity to invest in this bond. Not only would such persons be saving money for important personal projects, but they will also be in a position to earn more income through double digit interest to be paid on the bond.

Thus the bond enables individuals to enjoy those benefits which accrue to high net-worth investors in the capital market at a competitive fixed interest rate. Moreover, the income earned from interest are tax exempt and the FGN SB Certificate can be used as collateral for bank loan.

One of the strongest rationale for the bond, according to Dr Abraham Nwankwo, Director General of the Debt Management Office, MO, is to “democratise” participation in the investment market so that all classes of Nigerians are partakers. In order words, the FGN saving bond will make investment in the capital market more inclusive and less exclusive as it presently is.

“FGN SB is made to cater for the interest of all groups in the country, all classes of people. The existing instruments, including the Eurobond and other government securities are for the big players. Now we want to democratise it with this bond which is a retail bond. We want those who have smaller income to also participate. It is for all classes of investors, but targeted at the low income,” Nwankwo said in an interview with Channels Television.
While the minimum subscription for other FGN bonds is N50 million, the minimum subscription for the FGN Savings bond is N5, 000.

In a country where pension payment has become a thorny issue, and hundreds die waiting for either gratuity or pension, the bonds offer securities for old age. For those still active, the bonds will be good products for savings towards important personal projects such as marriage, school fees, house rent and sundry expenses that salaries or monthly incomes cannot cover.

The bonds also have the potential to bring some positive changes in the banking sector, such as making banks increase the interest they pay their customers. Savings accounts at Nigeria’s commercial banks pay up to 5 percent in interest which is well below the monetary policy rate (MPR) of 14 percent, but the country’s inflation is running at more than 18 percent annually.

Meanwhile banks charge as high as 23 percent to customers on loans, but pay far less on deposits.

The savings bond offer could push deposits out of commercial banks into Government bonds in which retail investors are mostly shut out of currently. That may put pressure on the banks and force a reform.

The DMO has also addressed concern that the FGN savings bond may increase government borrowing. Nwankwo said the bond is not an happenstance but one of the various instruments the government intend to use to raise loans approved by the National Assembly annually from the administration’s borrowing plan. “The bond is merely an instrument for complementing the various borrowing government do every year when there is a deficit in the budget. The bond will be part of the instrument to borrow what is needed for the economy,” he clarified.

For potential investors who may not be able to afford the luxury of waiting for two or three years for the bond to mature, there is no cause for alarm. Nwankwo said the bond will be listed on the Nigeria Stock Exchange, and will be traded everyday. So, if a holder of a two-year bond needs the money after six months, he just goes to his broker who takes it to the secondary market for sale, and he gets his money immediately.

Already not less than 98 stock brokers had been accredited for the sale of the bond.

*Amarachi Eshiogu wrote in from Abuja


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Season 2: Winners @Etisalat-DigitalSENSE Students Essay Competition receive prizes

The Nigerian youth-friendly telecommunications company, Etisalat, has again affirmed its commitment to the development of the education sector and youth empowerment in the country by rewarding winners of the 2016 edition of the Etisalat-DigitalSENSE Students’ Essay Competition, reports ITRealms.

The three Season 2 winners include Odonoekuma Onyebuchi Ekuma, a fourth-year medical student of the University of Nigeria, Nsukka (UNN), Enugu State, Henry Monday Oguns, a 500-level Petrochemical Engineering student of the University of Benin, Edo State and Egwe Tochukwu Christopher, a fourth year Law student of the Nnamdi Azikiwe University, Awka, Anambra State.

Onyebuchi Ekuma who emerged the star-prize winner of the contest was rewarded with a laptop computer and free internet access, courtesy Etisalat Nigeria whilst Henry Oguns and Egwe Christopher who were the first and second runners up respectively went home with a tablet device and a mobile phone also by the sponsors, Etisalat Nigeria with accompanying data access.

The trio came tops in the Etisalat-sponsored essay competition with the theme, ‘Internet Governance for Development: Creating Opportunities for All Nigerians’, organised by DigitalSENSE Africa (DSA).

Speaking at the prize presentation ceremony in Lagos on Friday, Head, Environmental Compliance and Public Relations, Etisalat Nigeria, Oluseyi Osunsedo, said the Etisalat-DigitalSENSE Students’ Essay Competition was one of the various platforms through which Etisalat promotes education and supports youth development in Nigeria.

“This competition is part of the annual Nigeria DigitalSENSE Forum on Internet Governance for Development as well as the Nigeria IPv6 Roundtable. As a youth-friendly company, we at Etisalat are pleased to create and support platforms that contribute to the development of Nigeria’s education sector and the empowerment of the Nigerian youth,” she said.

Osunsedo also said that Etisalat drive is to continue to support the development of education in Nigeria.

“This collaboration with DigitalSENSE Africa is a proof of our commitment to supporting the dreams of Nigerian youths, and helping them to actualize their potentials. Etisalat will continue to provide innovative products and services, a reliable network as well as cutting edge solutions to our subscribers of which the youth are a critical segment,” she said.

Lead Strategist, DigitalSENSE Africa, Remmy Nweke, thanked Etisalat for its continued sponsorship of the competition which Season 2 just concluded. He also said the competition, aims to help the youth to explore opportunities on the internet, is open to students between ages 18 and 30. 

Nweke added that a total of 171 entries received for 2016 edition were assessed based on the understanding of the topic, ability to localize it, the presentation, and strict adherence to 600-word count limit.

As part of steps for further motivate the youth to aim for higher heights, Ekuma’s winning essay will be published in ITRealms and he will participate in the Nigeria Internet Governance Forum as Etisalat-DigitalSENSE Student Ambassador.

“I have a special interest in the use of Internet and Information Technology. When I graduate, I plan to take a postgraduate course in Information Technology that relates to medical science. The essay competition is a good initiative. Etisalat and DigitalSENSE should continue to leverage it to reach more Nigerian students”, Ekuma said.


Chuks Egbune/GEE
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Pix: L-R: Judge, Etisalat-DigitalSENSE Students Essay Competition, Yetunde Johnson; Lead Strategist, DigitalSENSE Africa, Remmy Nweke; Winner, Etisalat-DigitalSENSE Students Essay Competition, Odonoekuma Onyebuchi and Head, Environmental Compliance and Public Relations, Etisalat Nigeria, Oluseyi Osunsedo at the Prize Presentation of the Etisalat-DigitalSENSE Students Essay Competition in Lagos.