Covenant Liftings

The raging debate over fuel subsidy removal or retention will not have a common conclusion because the perspective upon which each argument is based will determine the resultant take of each side. However, for us who propagate productivity then we encourage the perspective of productivity over the long run, i.e sustainable productivity and growth. When fuel subsidy removal is viewed from this angle, then the beauty is unmatched, the initial discomfort pales into insignificance compared to the long term benefits of inflow of foreign direct investments, job creation along value chains, construction of refineries with attendant multiplier economic value, possible options of export of refined crude among others.....The key caveat is will the transition be well managed or will it be consumed by corruption and lack of will power, will it be hijacked by a cabal, will the other enabling laws be passed, will the government create the enabling environment for the sector to blossom. If the subsidy is removed and the transition is handled as B.U.A (Business as usual) then you can be sure Nigerians will "stone" this government will the highest level of opprobrium. Over to you "THE CHANGE AGENTS"

OPPRESSIVE PROVISIONS IN NIGERIAN CONSTITUTION: Nigeria is ranked at the very bottom in the country ranking of "ease of doing business" The background to this are the oppressive laws and policies entrenched in our constitution, policies that make doing business difficult, unproductive with uncompetitive high transaction cost. Whilst we are shouting Private Public partnership, the law forbids anyone to produce more than 1MW of electricity, if you choose to do that you must send it to the national Grid, to be appropriated by the Lord and masters at the centre!!! So how on earth will we attract Billions of dollars of Private funds and Foreign investments into the sector, how one earth will we generate 50,000mw with this kind of law. and there are several others; Until we begin the process of expunging provisions like this, we are headed no where in national development............Its time to fight for abrogation of retrogressive provisions.

The major leaning for companies is that they require Loans and facilities to run their business, either as working capital requirements or long term loans to finance expansion, program , assets acquisition among others. But then there are companies in Nigeria that the reverse is the case, they are awash with liquid cash: A company that has no finance cost yet has cash up to 25% of its turnover, i mean liquid cash in banks!!! and its always like that year in year out.......my concern is that with the volatility of exchange rate of Naira coupled with inflationary trend, will it not make more economic sense to invest such cash in other assets that cant be easily eroded by exchange rate fluctuations and inflation? we are looking for real avenues for investment of such cash that meets these three key criteria 1. Non erosion of value due to exchange rate and inflation 2. Reasonable annual rate of returns (not less than 6%). 3. Reasonable security of assets........ Way Out. Advices. Suggestions are welcome