Breaking News

Another banking crisis coming up – 1

This would be the third alert I would issue in the last fifteen years about a banking crisis about to occur. Almost invariably, the banking crisis causes collateral damage in the capital market – which heads down as a result. The recent appointment of market makers by the Nigerian Stock Exchange, NSE, might represent taking on fresh fuel before a ship capsizes. It will not help; it might even add to the problems that would result from the carnage.

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End of sure – 3

Allocations for SURE in the 2012 budget has again been slashed to less than N450 billion. Increasingly, it looks as if the clarifications made by Dr Reuben Abati, last week, might be unnecessary after all. With only N450 billion in the kitty to be distributed among the three tiers of government, it would appear that the Christopher Kolade Committee, a high-powered group, will have only about N240 billion to work with.

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NNPC versus auditors and NEITI (2)

“There is a long running dispute between NNPC and PSC operators as to the calculation of the cost of oil, tax oil, and royalty oil under the PSCs. This meant that the parties cannot agree on the entitlements to amounts being lifted by NNPC and the contractors. Amounts reported for reconciliation revealed different interpretations for the same lifting transactions.”

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