Dangote, Ovia, Adesina Top Forbes’ African Person of the Year Shortlist

Nigerians have dominated this year’s Forbes Africa Person of the Year shortlist, the US-based business website has announced Monday.
In its Forbes Africa page, Forbes  announced that it had narrowed down its shortlist, dominated by Nigerians, for the 2013 Person of the Year awards.
The awards will take place in Nairobi, Kenya at the beginning of December this year.
An official voting is also open to the public who can make their selection of the individual they deem most worthy of the Person of the Year title.
The Person of the Year awards celebrate ‘the individual who, for better or worse, has had the most influence on events of the year gone by’ and Forbes Africa has welcomed the participation of the public in what is fast becoming one of the most momentous and anticipated annual events in Africa.
“Every year, we are excited to decide the Forbes Africa Person of the Year. We want to honour the big hitters of the continent who are making a difference in people’s lives and we hope that in doing so, it will inspire others,” commented Chris Bishop, the managing editor of Forbes Africa magazine.
The shortlist, comprising  three Nigerians, one South African and one Zimbabwean, is as follows:
*South African mining magnate, Patrice Motsepe, plans on giving away more than half his fortune over the next five years.
•Akinwunmi Adesina is Nigeria’s Minister of Agriculture and his vision is to make Nigeria a self-sustaining, food-producing nation and register 20 million farmers by 2015.
•Aliko Dangote is Africa’s richest man and his net worth has significantly increased on the back of his continued business success, allowing him to better the lives of millions.
•Strive Masiyiwa is the founder of global telecoms group, Econet Wireless, and through Capernaum Trust he educates tens of thousands of Zimbabwean orphans.
•Jim Ovia established Zenith Bank Group in 1990 – now West Africa’s second largest financial services provider. His focus has turned to helping grow Africa’s budding ‘techpreneurs.

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Brittania-U: Our Bid for Chevron Blocks Reflects Independent Evaluations

A wholly-owned indigenous Exploration and Production (E&P) company, Brittania-U Nigeria Limited, has stated that its submission of the bids for the three Chevron oil blocks offered for sale reflected both its in-house and independent evaluations, as well as commercial capabilities.
Responding to what it called speculative and sensational reports in local and foreign media concerning the ongoing divestment exercise of Chevron’s interest in OMLs 52, 53 and 55, the Managing Director of the company, Mr. Dan C De La Garza, said in a statement that the media publications celebrating the “success of some companies while denigrating the efforts of perceived rivals by seeking to discredit the process would serve no purpose other than undermining the integrity of the oil and gas industry generally.”
“As far as we know, the subject divestment exercise is ongoing and we like other participants, are quite hopeful of our chances of success in the bid.
“Accordingly, we are prepared and are able to progress to the next stages of the transaction. The publications have thrown a lot of figures around as Brittania-U’s bid amount but certainly, it is not for us to confirm or deny such figures for the obvious reason that the bid process is confidential and under a Confidentiality and Non-¬Disclosure Agreement, which Brittania-U as a reputable company is bound by,” he said
La Garza said his company would not be distracted by any of the publications and pranks.
According to him, the company’s attention at this time is focused on the acquisition of Chevron assets, growing the company, creating employment for Nigerians, developing and working in harmony with the company’s host communities, protecting the environment and delivering superior dividends to our stakeholders.
He said the main focus at this particular moment was to work assiduously with the company’s bankers to ensure a seamless process that would also ensure quick closure of the acquisition process.
La Garza noted that the government policies had led to improvements in Nigerian content activities in the industry, especially since the April 2010 promulgation of the Nigerian Content Act.
He said these efforts had resulted in enhanced indigenous industry activities and impact for the overall benefit of Nigerian companies and the Nigerian people.
Brittania-U was said to have offered $1.6 billion for the three oil blocks offered for sale by Chevron Nigerian Limited, fuelling concerns among other bidders on the ability of the company to finance the acquisition.
Seplat, which is the second largest bidder, it was learnt, offered only $630 million for Chevron’s 40 per cent stake in the three acreages.
Other than the Seplat/Amni consortium, the other two bidders that reached the final stage of the three-month bid process are Niger Delta Petroleum/South Atlantic Petroleum (SAPETRO) and Sahara/Septa, which are all Nigerian companies.

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Abrupt Changes in CRR Induces Market Volatility, IMF Warns CBN. •NBS: Nigerian economy added 45,108 jobs in Q1

The International Monetary Fund (IMF) has advised the Central Bank of Nigeria (CBN) to rationalise its frequent adjustment of the Cash Reserve Ratio (CRR) as a monetary policy instrument.
In fact, the multilateral institution pointed out that frequent changes to the CRR force banks to make abrupt adjustments in their portfolios and as such, could induce volatility in financial market prices.
The IMF stated this in its financial sector assessment programme update on Nigeria titled, “Strengthening Monetary and Liquidity Management Technical Note July 2013”, released at the weekend.
The CRR is the minimum cash, as a percentage of customers’ deposits and notes that each commercial bank must set aside in reserve. This cash cannot be used for other purposes or lent out.
The CBN had in July raised the CRR for public sector funds to 50 per cent, while the CRR for private sector customers’ deposit is at 12 per cent.
A recent comparison of the CRR in four African countries showed that Nigeria has the highest CRR for both private and public sector deposits, with Kenya at 5.25 per cent, Rwanda at five per cent and Ghana at nine percent.
Continuing, the IMF in the 25-page document noted the CRR should best be used to create a stable demand for reserves consistent with the level of systemic liquidity.
It added: “Some countries have used high cash reserve ratios mainly to sterilise substantial capital inflows in the context of managed foreign exchange rate regimes (e.g. China and Brazil).
“However, most countries keep this ratio low and stable. An increase in the CRR, particularly when it is unremunerated, imposes additional costs on banks, which then get passed on to the economy in the form of wider interest rate spreads.
“It is estimated that where banks have constant costs per unit of deposit, a two per cent increase in the level of the CRR adds approximately 0.5 per cent to the spread between deposit and lending rates.
“Therefore, changes in the ratio should be infrequent and made only when there is a strong reason not to use market-based instruments (i.e. Government/CBN securities and foreign exchange sales).”
It also urged the central bank to clarify its overall monetary framework to avoid the impression of pursuit of multiple objectives, adding that clear communication of policy objectives and targets to the market could increase transparency and effectiveness.
“However, frequent changes to the operating procedures of monetary policy have tended to undermine the credibility of the framework. Over the past two years, the Monetary Policy Rate (MPR) corridor has varied between 400 basis points and 700 basis points.
“At times, the CBN appears to be guiding short-term interest rates towards the MPR, while at other times these rates are pushed towards the upper range of the corridor.
“Moreover, the frequent and abrupt use of the CRR, which was gradually raised from one per cent in 2010 to 12 per cent in 2012, drives an increasing wedge between banks’ costs and their receipts, makes it harder for them to manage their liquidity effectively.
“Finally, abrupt changes in regulations also affected the credibility. For example, in August 2012, the Open Buy Back (OBB) rate spiked when the CBN prohibited the banks from participating in the wholesale foreign exchange sales throughout the term of their repurchase or standing lending transactions with the CBN,” it declared.
The fund also recommended that the CBN should strike a balance between the use of foreign exchange sales and domestic instruments for liquidity management, just as it called for further strengthening of coordination between the fiscal and monetary authorities.
“The weekly meetings of the Fiscal Liquidity Assessment Committee (FLAC), which is comprised of representatives from the CBN and FGN ministries, departments and agencies, have helped improve liquidity forecast,” it noted.
Meanwhile, the National Bureau of Statistics (NBS) yesterday stated that the Nigerian economy added 45,108 jobs in the first quarter of the year, bringing the total number of jobs created in the period to 431,021.
The figure, according to NBS’ latest Job Creation Survey, which was released by the Statistician General of the Federation (SGF), Mr. Yemi Kale, represented an increase of 11.69 per cent when compared to the 385,913 jobs created in the fourth quarter of 2012.
According to the report, the formal sector of the economy contributed 174,326 jobs in the first quarter of 2013, while the informal and public sectors generated 232,327 and 24,368 employment respectively.
In the fourth quarter of 2012, however, 152,018 jobs were attributed to the formal sector, while the informal and public sectors created 208,920 and 24,975 jobs respectively.
The report further stated that 145,032 full-time jobs were created in the first quarter, representing a 20.96 per cent increase in comparison to 119,905 full-time formal jobs recorded in the last quarter of 2012.
The report said: “The top three sectors that produced the highest number of full-time jobs in Q4 2012 were education, followed by financial intermediation, health and social work.
“In Q1 2013, the same sectors maintained the top three positions for generating full-time jobs. This is indicative of the huge investment in these sectors, particularly in the education and health sectors.”
However, part-time employment declined by 9.62 per cent to 29,293 jobs in the first quarter of the year compared to 32,112 in the last quarter of last year.
The NBS added: “The informal sector generated one-third of more jobs than the formal sector in the same first quarter 2013. However, the formal sectors showed the greatest increase between the two quarters of 14.68 per cent or more jobs created than in the fourth quarter of 2012.
“Job creation in the public sector is the only area to exhibit a decline from the fourth quarter of 2012 to the first of 2013 by 2.43%.”

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Autombile production possible without banning of ‘Tokunbo vehicles’.

The consideration by Federal Government of Nigeria to slam a ban on importation of fairly used cars into the country or increase import duty payable on them has continued to attract reaction of stakeholders. The latest reaction is coming from Anambra Maritime Practitioners Association (AMPA), a group whose members operators in freight and shipping.
The group stated that proposal to ban or hike import duty on fairly used, otherwise called Tokunbo cars would have been good for the country if government had planned better. “We view the proposal as placing the cart before the horse, which definitely will result in a still borne for such a policy. This is because there are no local alternatives,” said AMPA in a   statement issued in Lagos recently.
The association stressed that the plan is ill times because of low purchasing power of the citizenry to acquire brand new imported cars; bad and poor road network, as well as lack of conducive and efficient mass transit system to encourage citizens to leave their cars and use public transport systems; poor multimodal and inter-modality with rails, inland waters, etcetera for seamless and easy transportation of products and people to reduce emphasis on road transportation and use of private cars; inadequacy in power (electricity) and other essentials amenities to encourage local manufacturers, foreign investments and reduction in the huge capital flight associated with importation of finished products; low commitment by government to create a functional private sector driven auto industry that will be seen to meet government’s target to produce vehicles that will be affordable to the average Nigerian.
AMPA is of the view that the policy that we should be talking about now is one that will take cognisance of the inherent problems in the system and design a roadmap that will dovetail into making Nigeria competent as automobile products manufacturer. Government, the body warned, should not be in a haste about the sensitive decision as it averred that ban or hiking of import duty on used cars without recourse to good roadmap will lead to shock and instability in port/Customs operations, as well as industrial rift that will create room for corruption and loss of revenue to the federal government.
of the Nigerian police who ride along them on any trip they make, consequently any condemnation on this proactive gesture lacks  merit.
“We also condemn the call for the sack of the minister, stating that the claim that she will influence the work of the panel headed by Alhaji Isa Sail Bello is unfounded and illogical. “The minister from our cursory investigation from the staff of the ministry is consider by many as a very pragmatic and prudent person when it comes to spending and wondered what happened and most suspect a foul play by some individuals who want to rubbish the achievement of the minister,” the statement said.

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Chevron releases N800m for community projects

As part of its Corporate Social Responsibilities (CSR),  Chevron Nigeria Limited (CNL) said about N800 million has been released to the Ilaje Regional Development Council (IRDC) since inception for the implementation of both infrastructure and non infrastructure projects areas of its operation.
The General Manager, Policy, Government and Public Affairs (PGPA) of the company, Mr Deji Haastrup, disclosed this in his remark at the annual general meeting of the IRDC held at Owena Motel, Akure, Ondo State.
Haastrup, who was represented by the PGPA Superintendent, Mr Trust Inimgba,  expressed delight that the council had managed the process successfully through participatory partnership to achieve measured success in most of its cardinal objectives.
According to him, the IRDC had expended the N800 million disbursed to it for implementation of projects most of which he said had been completed and commissioned.
The projects, Haastrup said, include the provision of science laboratory, multipurpose halls, concrete and wooden foot bridges, housing projects, town halls, micro-credit scheme, scholarship awards and provision of public toilets.
Other projects executed by the council are provision of skill acquisition schemes, donation of books to secondary schools and quarterly medical programme for aged persons and pregnant women.
The manager expressed delight that the Reverse Osmosis project of the IRDC is also on-going while the leadership of the IRDC very recently inaugurated  15 wooden foot bridges in various communities in addition to the purchase of two speed boats for transportation.
He said the new leadership had also earmarked other projects and programs for implementation including vocational training for 100 youths including women, furnishing of two town halls at Awoye and Molutehin, among others.
Haastrup said Chevron/NNPC Joint Venture would frowned significantly at a situation that would lead to breach of due process in the implementation of GMoU and would leave no stone unturned to prevent such from happenings.
The manager said Chevron was happy with the partnership with the state government in facilitating other social investment programmes in the state.
The programmes he said include the Roll Back Malaria programmees with the donation of malaria drugs and long lasting insecticides treated nets, deworming of thousands of primary school children from different communities around the state.
He added that the NNPC/Chevron Joint Venturealso continues to deploy its NYSC Science Teachers programme at Molotehin Comprehensive College and Igbokoda Grammar School which has helped in improving the teaching and learning of science subjects.
Haastrup said the corps members participating in  the scheme are paid stipends monthly by the company. Just as the company had handed over to the state government a chest clinic donated to the State Specialist Hospital Akure and a science laboratory donated to Igbokoda Grammar School.

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GLO laff-fest dazzles Lagosians

Globacom last Saturday dazzled Lagosians with entertainment unlimited as it paraded 20 top Nigerian and international artistes in the opening show of the 2013 Glo Laffta Fest aptly tagged Invasion LOL. The comedy show featured four American comedians – Donnivin Jordan, Robert Powell, Deray Davis and Tony Roberts. There were also two South African humour merchants, Ndumiso Lindi and David Kau, Uganda’s best comedian, Salvador, and 13 Nigerian artistes consisting of two musicians and 11 comedians.
Anchored by the hilarious Basketmouth, the Lagos edition of the show had Jimmy Jatt as the Disc Jockey and Nigerian comedy heavyweights, Alli Baba, and Julius the Genius Agwu performed alongside equally talented and resourceful hands like Okey Bakassi, Bovi, Buchi, Gandoki, Akpororo, Funny Bone, Senator and Osama.
The show was spiced with music as Wande Coal and the legendary saxophonist, Lagbaja, thrilled the audience with their songs.
It was an evening of fun, laughter and entertainment as the huge crowd, which filled the main hall and the foyers, danced, rocked and reeled with laughter as the artistes came on stage to perform.
The American foursome were full of praise to Globacom for bringing them to Nigeria and to Africa for the first time in their career, just as their South African and Ugandan counterparts expressed their gratitude to the telecommunications giant for providing a huge platform such as the Glo Laffta Fest for them to perform in Nigeria.
The comedians, both from Nigeria and abroad, gave the audience value for their time as they churned out jokes on contemporary, political, social and economic matters and issues of day-to-day life.
While expressing their willingness to come back to Nigeria to enjoy the hospitality of the Nigerian people, the foreign artistes said that their coming to the country had exposed them to its potentials.
Salvador, the Ugandan was at his best elements, telling the audience that Nigerian cuisines “give me emotional feelings as I shed tears each time I eat any of the delicacies because I don’t eat pepper.”
“I must thank the organisers of this show for making me to hang out with real Americans as all I have been seeing back in Uganda is having my fellow country men travelling to America for a few weeks and coming back home with Indian accent. I wish somebody will simply adopt me in Lagos and make me stay here permanently”, he teased.
Deray Davis said that he had to call up his daughter back in the United States to “tell her that I am having fun and a good time in Africa and that I like it here and will have to come back here again”, while his compatriot, Donnivin Jordan hinted that he might likely “have a baby in Lagos”, sending the audience reeling with laughter.
The Lagos edition of the show was the first in the series of shows in the 2013 Glo Laffta Fest slated for different parts of Nigeria. The next show which will feature the international artistes and their Nigerian counterparts will hold on October 25 in Abuja at the Thisday Dome. Nine other shows parading the best of the Nigerian entertainment industry will hold in Owerri, Enugu, Calabar, Uyo, Port Harcourt, Abakaliki, Benin City, Aba and Ibadan in subsequent weeks.

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BASA with Israel Opens New Route for Nigerian Airlines

After several years, Nigeria has negotiated to have Bilateral Air Service Agreement (BASA) with Israel because of thousands of Christian pilgrims that travel to the Holy Land every year.
With the deal finally signed, Nigerian airlines are now jostling to be designated to the route by the federal government.
Deputy Managing Director and head of flight operations of Arik Air, Ado Sanusi who welcomed the BASA deal with Israel said that the airline, which is the nation’s biggest carrier has passed Israeli security audit and was the only airline in the country that has done so, adding that if designated to fly to the Holy Land, it would fly directly to the destination.
MedView Airline also indicated interest in operating the route and expressed willingness to start operations if also designated to the route.
The opening of the Nigeria-Israeli route has created opportunity for Nigerian airlines and Christians who would travel to the Holy Land on scheduled flights at cheaper rates, while it would give Nigerian airlines an opportunity to expand their international operations.
Travel expert and former President of Nigerian Cabin Crew Association, Fidel Olu Ohunayo who welcomed the deal said it was overdue, adding that the federal government was able to facilitate it now because the President is a Christian.
He however warned that Nigeria should urgently designate its domestic carriers to the route so that African major operator like Ethiopian Airline would not open its route from the Holy Land to Lome, Togo where it operates its West African hub.
Ohunayo recalled that as Nigeria delayed in designating its carrier to Brazil, Ethiopian Airline started operating Sao Paolo, Brazil, Lome route to undercut the market for Nigerian operator and as federal government designated Medview Airline to operate Singapore, Enugu route, Ethiopian has started operating the route, taking passengers from Singapore to Addis Ababa and connecting them to Enugu.
Aviation consultant and the CEO of Belujane Konsult, Chris Aligbe said with the agreement, it would become easier to travel to Israel because the route would become more open now, unlike in the past where flights from Nigeria would have to make special requests before it would be allowed to land in Israel.
Aligbe said that with open air route between the two countries, Nigerian and perhaps Israeli airlines may be designated to operate the route and this would make the fare to the Holy Land cheaper and less stressful.
He also noted that pilgrims could now travel to Israel anytime unlike now when the Christian community in Nigeria plan to travel at certain period of the year, but henceforth a family may just decide to go on pilgrimage any time in the year.
At the diplomatic level, Aligbe said that the BASA is an indication that there is a marked improvement in the relations between Nigeria and Israel.
“The BASA agreement between Nigeria and Israel shows that Israel is beginning to have more confidence in Nigeria and there are a lot of bridge building between the two countries, which was not so in the past,” Aligbe noted.

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Niger’s Refinery Now Supplies Fuel to Northern States

The 20,000 barrels per day (bpd) Soraz refinery located in Niger Republic is now a major supplier of petroleum products to some states in northern Nigeria.

Nigeria has four refineries in Warri, Kaduna and Port Harcourt with a combined refining capacity of about 445,000bpd. These refineries however operate below their installed capacities as a result of poor maintenance and incessant pipeline vandalism.
Following a recent interview with the Governor of Bauchi State, Isa Yuguda, where he disclosed that the 180 megawatts (MW) independent power plant which the state plans to build would rely on Low Pour Fuel Oil (LPFO) from the Soraz refinery, informed sources in Nigeria’s petroleum industry confirmed that the country had become a major destination for petroleum products produced at the Soraz refinery.
Investigations in Abuja however showed that states such as Katsina, Bauchi, Sokoto, and Jigawa, amongst others, actually consume petroleum products from the refinery located at Zinder, some 900 kilometres east of the capital of Niger, Niamey.
It will be recalled that President Goodluck Jonathan was represented by Governor of Katsina State, Ibrahim Shema, at the recent commissioning of the 20,000bpd capacity refinery which takes crude oil from Niger’s Agadem oilfield.
While Zinder is close to the Nigerian border, a former senior staff of the Nigerian National Petroleum Corporation (NNPC), who provided explanations on the workings of the refinery, said that the refinery would satisfy Niger’s domestic requirement, which is less than 5000bpd, thus leaving a huge surplus of about 13,000bpd for export majorly to Nigeria.
At the commissioning attended by some northern emirs, as well as some Nigerian businessmen, Katsina business mogul, Alhaji Dahiru Barau Mangal, was said to have signified his intention to partake in Niger’s petroleum sector, particularly in the transportation of refined petroleum products from Zinder to Nigeria and other neighbouring African countries.
The former NNPC offficial however confirmed that Mangal had started importation of petroleum products from Niger into parts of northern Nigeria. Noting that though the total amount of products from the refinery per day may not be enough to satisfy all parts of the North, it would complement supplies from other sources.
“I am very sure that Mangal Petroleum Company commenced fuel importation from Niger a couple of months back. Even though, Niger may not need more than 5000bpd or about 7000bpd of products from the refinery, the remaining will mostly find their way into northern Nigeria.
“That is not to say that will be enough for the region but it will go a long way in supplementing whatever that is supplied from other sources,” the former NNPC official, who would not like to be mentioned, said.
When asked if such petroleum importation from Niger would equally enjoy the Federal Government’s subsidy patronage, the source stated: “Why not? If an importer has a permit from the PPPRA, such marketer is free to import from wherever he decides and in the case of Niger, I believe it will be cheaper, especially for those marketers up North that have been granted import permit by the PPPRA.”
Nigeria’s daily fuel consumption as recently indicated by the Petroleum Products Pricing Regulatory Agency (PPPRA) is about 38.298 million litres out of which the refineries do not contribute substantially.
The condition of the refineries had necessitated PPPRA’s almost zero expectation status on them, meaning that whatever they eventually produce would be counted as bonus. The NNPC however puts current production at its Kaduna refineries at about 1.2 million litres. Yet, the state oil company accounts for 33 per cent of petroleum products imported into the country, while other major/independent marketers make up the remaining 67 per cent.
The PPPRA in the first quarter of 2013, issued petrol import permits to 32 companies with NNPC getting the highest allocation. The remaining 31 companies, comprising major marketers and independents, shared 67 per cent.
These companies are Aiteo Energy, Ascon Oil, Avidor Oil and Gas, A-Z Petroleum, Bovas, Conoil Plc, Dee Jones Petroleum and Gas, Dozzy Oil and Gas, Folawiyo Energy, Fresh Synergy Ltd, Forte Oil Plc, First Deepwater Discovery Limited, and Gulf Treasure Limited.
Others are Heyden Petroleum, Ibafon Oil Limited, Integrated Oil and Gas Industries, IPMAN Refining and Marketing Ltd, Mobil Oil Plc, MRS Oil & Gas Ltd, MRS Oil Nig. Plc, NIPCO Plc, Northwest Petroleum & Gas Ltd, Oando Plc, Obat Petroleum Ltd, RainOil Ltd, Rahamaniyya Oil Gas, Sahara Energy Ltd, Shorelink Oil Ltd, Swift Oil Ltd, Techno Oil Ltd and Total Nigeria Plc.
Africa’s richest man and President of Dangote Industries Limited (DIL), Alhaji Aliko Dangote, recently promised to reduce, by 50 per cent, Nigeria’s importation of refined petroleum products for local consumption by 2016.
He hinged this on the takeoff of his refinery, petrochemical and fertilizer complex to be located in Olokola free trade zone in Ondo State, which would be financed with a $3.3 billion credit facility from a consortium of banks.
Dangote and the banks had signed the financing agreement for the project early in September in Abuja, and it is expected to be Africa’s largest refinery, petrochemicals and fertilizer manufacturing complex.
Guaranty Trust Bank Plc (GTBank) and Standard Chartered Bank led nine other banks for the $3.3 billion syndicated facility. GTBank was the local coordinator, while Standard Chartered Bank was the global coordinator for the deal.
The other banks involved in the transaction are Access Bank Plc, Zenith Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria Limited, Standard Bank of South Africa Limited, United Bank for Africa Plc (UBA), FirstRand Bank, First City Monument Bank Plc and Diamond Bank Plc.
The project, which will cost a total of $9 billion, is expected to create about 9,500 direct and 25,000 indirect jobs, in addition to reducing the current volume of refined fuel imports by about 50 per cent and effectively stopping the importation of fertilizer.

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Reps to Investigate Compliance of Airline Operators with International Laws

The House of Representatives committees on Aviation, Treaty and Agreement, and Local Content have been directed to investigate the compliance of airline operators with  the relevant international and domestic laws on aviation.
The House gave the directive to the three committees in Abuja on Thursday during its plenary.
The Representatives said that the investigation would be in relation to insurance and payment of compensation to victims of air disasters.
It urged the Ministry of Aviation to ensure that the families of the victims of the air crash that occurred on Oct. 3 were adequately compensated in line with all relevant domestic laws.
The committees are to report back to the House within six weeks with their recommendations.
The resolution followed a motion by Rep. Ifeoluwa Arowosoge(APC-Ekiti) which was adopted by the House without debate when put to vote by the Speaker, Aminu Tambuwal.
The motion is entitled: “The Need to Frantically Tackle the Human Factor in the Aviation Sector”.
Arowosoge, moving the motion said that  an Embraer 120 airplane on Oct. 3, 2013 conveying the corpse of late former governor of Ondo, Dr Olusegun Agagu,  crashed  killing 13 passengers on board.
He said that the crash which occurred on Oct. 3 could have been avoided in view of the advice of the co-pilot and warning signs in  the airplane itself.
He said the insurance status of the Embraer 120 had been generating controversies in many quarters since the Nigerian insurance firm alleged to have insured the plane denied having any business with the company operating the plane.
The lawmaker said this issue had left Nigerians in confusion as to whether the airline was insured or not insured.
He said that the lack of proper supervision of the airlines’ operation with respect to insurance policy had led to inadequate compensation to the families of victims of air crashes in the country.
He urged the House to support the motion so that the human factor in the aviation industry could be tackled.
Meanwhile, the House passed into second reading the total sum of N315.805 billion for the 2013 budget of the Niger Delta Development Commission (NDDC) (NAN).

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