Nigeria is building a multi-billion dollar free trade zone with Chinese investors on the edge of its commercial capital Lagos to try to d
evelop a local manufacturing base and help reduce its import dependence.
The $5 billion first phase of the Lekki Free Zone, a 3,000 hectare site on the eastern fringe of the city, is 60 percent held by Chinese investors and 40 percent by the Lagos state government, the deputy head of the project told Reuters.
The consortium will provide basic infrastructure including roads, power plants and water plants before manufacturing firms are invited to set up business, Lekki Free Zone Development Co (LFZDC) deputy managing director Adeyemo Thompson said.
“We have a number of Chinese companies which are coming in the manufacturing area,” Thompson said in an interview.
“They are coming to produce furniture, electronics, pharmaceuticals and heavy machinery. We are having a fair in November, that is when we kick off operations.”
The Chinese shareholders in the project include China Railway Construction Corp., the China-Africa Development Fund Ltd and the China Civil Engineering Construction Corporation Ltd.
A total of 16,500 hectares of land bordered by the Atlantic Ocean and the Lagos and Lekki lagoons has been earmarked for the whole free zone, which will include a deepwater sea port and a new international airport in close proximity.
The aim of the free zone is to make it easier for foreign investors, particularly manufacturers, to build a foothold in sub-Saharan Africa’s most populous nation and second-biggest economy while still owning 100 percent of their firms.
It is modelled on free zones around China which have helped the Asian giant to develop its manufacturing base and economy over the past three decades.
“We have a one-stop shop … No investor has to deal with any government agency directly. We license the enterprises. You can register your enterprise within a week, get permits and everything you need to run your business,” Thompson said.
“The free zone allows you to attract foreign direct investment into the country and investors are given some incentives … It helps boost production, manufacturing, create employment and is a basis for sustainable infrastructure.”
The manufacturing and agricultural sectors have been neglected since the 1970s oil boom, when Nigeria began making easy money from crude oil sales. Oil accounts for more than 80 percent of revenues and more than 60 percent of exports.
SHINING EXAMPLE OR WHITE ELEPHANT?
Nigeria imports everything from toothpicks to cement, with a growing proportion of the goods coming from China. The Lekki Free Zone will enable Chinese and other manufacturers to test their products on Africa’s largest potential consumer market.
“There is a huge market in waiting,” Lagos State Governor Babatunde Fashola said at an opening ceremony this month.
“When you look at how much our people spend importing goods from abroad, how much they pay in excess baggage at major airports, bringing this here is like bringing home prosperity.”
The vast majority of Nigeria’s 140 million people live on less than $2 a day but economists say a growing middle class means a consumer market is developing that could help its economy surpass South Africa’s in the coming years.
The West African head of private equity firm Actis estimated earlier this year that some 10 million people had moved from low income towards the middle income bracket in Nigeria in the past five years alone.
Thompson said China was encouraging manufacturers whose Western export markets had suffered in the global downturn to explore frontier destinations such as those in Africa.
The administrative complex housing Thompson’s office, customs and company registration officials, and a few warehouses are so far the only buildings to have been completed.
The architect’s models show glistening glass and steel warehouses around a central lagoon, and the ultimate aim is to build a mini-city which will house more than 180,000 people.
Sceptics point to the lacklustre interest in some other free zones around Nigeria, particularly the $300 million Tinapa resort in the southeastern state of Cross Rivers, envisaged as a tourist resort and duty-free shopping paradise.
Its launch two years ago was marred by armed customs officers trying to impound products bought by its customers.
But Lekki’s investors say the two are incomparable.
The new zone is adjacent to Nigeria’s most populous city, Chinese investors own a majority stake, no commercial loans are involved, and manufacturing — not tourism — is at its heart.
“The choice of China as partner is because in recent times they have had experience of transforming an unrated nation into a world class nation,” Thompson said. (For more Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/ ) (Editing by Nick Tattersall and Elizabeth Fullerton)
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Intercontinental Bank logo
Intercontinental Bank Plc, a Nigerian lender bailed out by the country’s central bank, won a U.K. court order freezing 83 million pounds ($127 million) in assets held by its former chief executive officer.
The bank won the global-freeze order in January in a lawsuit accusing Erastus Akingbola of using the bank’s money to help buy apartments in London and enrich entities he controlled. The bank yesterday won permission from a judge to add new claims to the case, alleging that Akingbola wrongfully directed the lender to buy its own shares, resulting in a loss.
The money was “misappropriated by the defendant and is due to the claimant,” the bank said in court papers. Akingbola used the money in “breach of fiduciary duty.”
The Central Bank of Nigeria said the country had asked the U.K. to extradite Akingbola so he can face charges, which include mismanagement of Intercontinental. Companies outside Britain frequently use London courts to secure global freezes, including Glitnir Bank hf’s freeze this year on assets of former Baugur Group hf Chairman Jon Asgeir Johannesson.
Akingbola’s lawyer, Ed Crosse of Osborne Clarke in London, declined to comment. Akingbola’s defense papers filed March 19 say the alleged transactions were either valid or were mischaracterized in the lawsuit.
‘False’ Allegations
“Those claims are false, and have been made by the bank without any sincere belief that they are true,” Akingbola said in the filing.
Akingbola has only been able to pay half of his legal fees of about 1 million pounds. The judge gave Akingbola permission to sell an $850,000 home in Ghana or two apartments in London worth a total of about 1 million pounds to begin paying the remaining costs.
Under the freeze order, Akingbola was supposed to be able to pay for his defense using an HSBC Holdings Plc trustee account on the island of Guernsey in the English Channel. The bank declined to release the funds after it was approached by Nigeria, possibly triggering another legal dispute, Akingbola’s lawyer said in court.
The Nigerian bank’s lawyer, Segun Osuntokun of Berwin Leighton Paisner LLP in London, declined to comment.
Akingbola served as the bank’s managing director from 1989 until August, when he was fired. He was among leaders of Nigeria’s commercial banks that were forced out by the central bank after the lenders gave out non-performing loans totaling 700 billion naira ($4.65 billion).
The U.K. Home Office didn’t immediately have a comment today on Nigeria’s extradition request. Akingbola has been living in the U.K. since last year.
To contact the reporter on this story: Erik Larson in London at elarson4@bloomberg.net.
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Headspeaker Dimeji Bankole
There appears to be a different standard of judging a crime in the playbook of Nigeria’s leading anti-graft agencies when it affects people presumed to be “executive suspects”, an ongoing NEXT investigation of high profile cases involving top brass Nigerians has revealed.
Using the case of the Speaker of the House of Representative, Dimeji Bankole, as an illustration, NEXT investigations found that the current institutional cultures in both the Economic and Financial Crimes commission (EFCC), and the Independent Corruption Practices Commission (ICPC) often lead to very opposite resolutions regarding the same case, even when they are armed with the same complaints and the same evidence.
Soji Apampa, a leading civil society voice in the country and chief executive of the Centre for Business Integrity in Abuja, located the problem in the framework of what he characterised as the power struggles among the statutory agencies charged with leading the anti-corruption battle in the country.
“Clearly, what we are seeing now is a difficulty, on the path of those responsible, to fight corruption” he said, adding that “we are witnessing power struggles, which have all along been in our society. But they are just beginning to manifest.”
Last week a business survey on crime and corruption in Nigeria discovered that people have “little trust in anti-corruption authorities” partly based on the belief that reports on crimes would not necessarily lead to closure or effective investigations and or prosecutions.
The report was jointly sponsored by the National Bureau of Statistics (NBS), the Economic and Financial Crimes Commission (EFCC), the European Union (EU), and the United Nations Office on Drugs and Crime (UNODC).
The 2.3 billion naira car scandal
A clear illustration of the problem was the 2007 car scandal in the lower chamber of the nation’s parliament.
In December 2007 at an executive session presided over by Mr. Bankole, the lower parliament approved the purchase of 380 units of Peugeot 407 cars; 5 for each of the 76 committees of the house.
This transaction was followed by wide allegations that some members made financial gains from the deal because Peugeot Automobile Nigeria (PAN), which supplied the vehicles, allegedly supplied inferior vehicles at significantly less cost than the approved ones. The House was also alleged to have paid Value Added Tax twice to the Federal Inland Revenue Service.
The ethics and privileges committee of the House which investigated the allegations cleared the leadership of any wrongdoing and instead questioned the source of the documents presented by Festus Keyamo, a Lagos lawyer who first raised the allegations.
Recommendation 3 of the committee was that “the clerk of the National Assembly should immediately carry out an internal investigation to unravel why certain classified and important documents such as the letter of offer and acceptance in the National Assembly were procured by unauthorised persons …”
Consequently, the EFCC commenced investigations on the scandal. However, in a recent but dramatic entry into the controversy, the EFCC claimed that it has concluded its investigations, sent a copy to its legal unit for prosecutorial recommendation, and another copy to the Presidency for its attention.
EFCC Farida Waziri
Farida Waziri, the chairperson of the EFCC triumphantly told journalists at the EFCC headquarters on June 7 that the commission’s report was ready and had been sent to the “commission’s legal unit for advice.”
She also said the commission had sent a report of its investigations to the Presidency and was sure of the Presidency’s cooperation.
Passing blame
Hardly had Mrs. Waziri uttered her comments than it was refused. The Presidency, through its spokesman, Ima Niboro, denied ever receiving any report from the EFCC, and advised the agency to do its job according to its rules because, as he said, the Presidency was not in the business of vetting law enforcement reports.
The Waziri-Niboro tick-tack gave outsiders enough gunpowder to fire shots of doubt at the anti-corruption claims of the administration; to suggest executive tampering with cases.
Embarrassed at the gaff, Mrs. Waziri’s herself quickly struggled to smoothen the rough edges of her claims by. “I don’t think the Presidency will want to use it (the investigation report) to blackmail,” she said. “You know the Presidency believes in the rule of law.”
However succour came by way of a civil society intervention when Mr. Apampa claimed that “it is not that EFCC did not tell the truth”, adding that “I am inclined to believe them” but shifting the blame to the doorsteps of the Presidency. “Perhaps the people in the presidency are not quite comfortable going ahead with it because each side is holding the other to ransom,” he said.
However, Aduche Wokochi, head of business law department at the Rivers State University of Science and Technology, takes a contrary view. “The function of EFCC is not supposed to be approved by the President before they institute prosecution,” he said.
“They are established by the law and the law that set them up does not require them getting Presidential approval before they prosecute anybody, he said challenging the agency to show good conduct by re-submiting the document if it feels serious about making it public that way. They should re-submit.
Perhaps the period of invisible presidency has led to the loss of the report. They must have their own copies of every report. They should resubmit if they feel it is necessary.”
Musa Ebho-imaha, the special assistant on media matters to Mr. Bankole, appeared confident that Mr. Bankole had no case to answer at the weekend, telling NEXT that “He (Bankole) has never been invited (for questioning), because there is no truth in the matter.
The EFCC knows there is no truth in the matter.”
Femi Babafemi, the EFCC spokesman, declined to respond to questions or reply to text messages on the status of the car probe scandal.
However, the ICPC insists on pursuing investigating into the matter. A source involved in the ICPC investigation said PAN, which has always denied any wrong doing, and which was initially trying to protect the House leadership by keeping some necessary documents from ICPC investigators, “are now cooperating; some House members definitely have case to answer.”
The car scandal is not the first investigation over which the anti-corruption agencies are refusing to prosecute or even invite Mr. Bankole, who has no immunity.
The Rural Electrification Scandal
Upon conclusion of its investigations into the 5.2 Billion Naira rural electrification scandal, the EFCC charged Ndidi Elumelu, the chairman of the House committee on power, and his Senate counterpart Nicholas Ugbane, as well as some other legislators and staff of the rural electrification agency, to court on a 156 count charge.
Though Mr. Bankole was widely believed to have been involved in the scandal, his involvement was neither investigated, nor was he invited by the commission for questioning.
“There was no point inviting the speaker, he has no case to answer. If he is not in court, it means he has no case to answer,” stated Mr. Ebho-imaha.
Again the story is different at the Independent Corrupt Practices and other related offences Commission (ICPC) which is also carrying out an investigation over the scandal.
“We have almost concluded investigations, but so far everything shows that the Speaker also has a case to answer. There is no way he would be free, though we will have to invite him to state his case,” the source, who is involved in the investigation, stated.
Companies owned by relatives of Mr. Bankole, investigators believe, benefitted from the scandal.
When contacted, Folu Olamiti, the ICPC spokesman simply said “our investigations are still ongoing, but we are almost through with them.” He declined to comment on Mr. Bankole’s involvement.
Buoyed by what they describe as a “window available for complaints, and possible prosecution resulting from investigations at the ICPC,” legislators who branded themselves as progressives, and who are seeking the prosecution of Mr. Bankole and other members of the House leadership over the scandal are now relying on the ICPC to conduct what they say will be “a thorough investigation on the latest 9 Billion naira scandal.”
The 9 billion naira allocation scandal
The 9 billion naira allocation scandal in the House of Representatives indicates that, whereas the EFCC makes a strenuous public show of its investigation into the matter, it has nevertheless scrupulously pursued an enforcement strategy that will avoid prosecuting Mr. Bankole.
In this case, some legislators are accusing Mr. Bankole and the House leadership of mismanaging 9 billion of the 11 billion naira meant as allocation to the legislative house in 2009. The legislators petitioned the two anti corruption agencies when a one-week ultimatum they gave the speaker to resign expired.
The EFCC, which claims it has set up a seven-man committee, stormed the National Assembly offices of the legislators recently for more incriminating documents, and interrogated some persons involved in the scandal.
However, knowledgeable sources at the agency told NEXT at the weekend that, “the investigation may well go the way of previous ones involving Mr. Bankole had gone, which is either to exonerate the Speaker or that the report simply not see the light of the day.”
Till date the EFCC has not questioned Mr. Bankole. On Tuesday, July 3, in his office at the commissions headquarters, Emmanuel Ayoola, the chairman of the Independent Corrupt Practices and other related offences commission (ICPC) met with Dino Melaiye and Independence Ogunewe, leaders of the “Progressive Minded Legislators”.
Contrary to media reports, it was the legislators who called for the meeting. Mr. Melaiye and Mr. Ogunewe, according to our source, brought more documents to buttress their allegations against the speaker.
The ICPC boss, according to investigators, personally led the interrogation of the legislators because, “in any case, before they came, we had started our investigations; though they gave us more documents to show the speaker’s culpability,” the source stated.
Same old tale
The allegations, which include price inflation purchase of unnecessary materials by the house at inflated prices, and purchase of exorbitant cars for the speaker and the deputy, have all been refuted by the Speaker and the House leadership who accuse the anti-Bankole legislators of parading fake documents.
“If they say the documents we are presenting – even to the EFCC and ICPC are fake – let them present the original ones to Nigerians,” stated Mr. Melaiye on a radio programme.
“There was definitely inflation of prices in their purchases – how can you purchase a television set which even up till now is less than two hundred thousand naira, for 525,000 naira?” stated an anti-corruption source. “We however have to focus on who among them (the House leadership) benefitted from the inflated prices.”
Mr. Wokochi is however worried at the possibility of multiple investigations. “If one agency has concluded investigations, it should commence prosecution, the other agency should discontinue because a person cannot be prosecuted twice on the same matter,” he said.
Source: 234next
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Good people, Great Nation
The stage is now set for the 2nd edition of the Nigeria Arise wards and celebrations which will take place in London.
Leading government executives drawn from the Presidency, Governors forums, Ministers, Members of the Senate and National Assembly and leading Industrialists have already signalled their intention to fly to
United Kingdom for the Celebration which is actually dedicated to the nation’s Golden Jubilee.
This year’s award is specially to be named ‘Golden Jubilee Nigeria at 50 Merit Award Ceremony’
BEN Television, London (Europe’s first and Ethnic satellite TV channel) in partnership with its Nigeria’s Management partner (RED Carpet) are liaising with Business-In- Africa Events and preparations have reached advance stage to make this year’s event more memorable.
According to Alistair Soyode, one of the powering force behind the awards: “This is the second edition of such business and government oriented event in the Diaspora under the Nigeria Arise Banner”.
“It is our year of 50th anniversary celebration and this is what makes the year’s event more unique and special”
This year’s special event is specially designed for this year in commemoration of Nigeria’s 50th Golden celebration.
The event is aimed at recognising and appreciating Nigerians who have arisen and many more on the top ladder who are climbing to greatness in their chosen careers and endeavours, thereby arising under the words of Nigeria ’s national anthem – ‘Arise O Compatriots’.
The award also specially centres on Nigerians engaging Nigerians in Diaspora and others in a larger international world.
Alistair Soyode
Dr Soyode said:”The Nigerians in Diaspora constituted another major point for national development and are seen as a region, especially with more than 1 millions potential Nigeria citizens in the UK alone making waves in various engagements”..
Their economic power and social contribution to the UK’s development is of great significant to utilise towards Nigeria’s development.
President Goodluck Jonathan is a very youthful President who has declared his intention for more positive and progressive future for the nation. His efforts need to be complimented and acknowledged and this is a very good avenue for all to take a participatory role in the nation’s building and development.
This year’s award will be attended by many important dignitaries from all over the world especially Nigerians making waves in the Diaspora.
Meanwhile, a pre- Award conference is to hold prior to the ceremony according to our sources.
More than 200 leading investors and business leaders from some of the world’s leading corporations are to converge for a pre award conference which will take place in a date to be announced by the weekend..
Top business executives will be discussing the current economic trends, future outlook for Nigeria and today’s emerging opportunities in the country under the government of Acting President Goodluck Jonathan.
They will also discuss the prospect of a future industrialised Nigeria as the nation moves towards achieving her 2020 induatrialsed target.
Previous winners of the Arise Award and attended, includes – Gov Peter Obi, Prof Dora Akunyili, Alh Aliko Dangote, Chief Mike Adenuga, Gov Gbenga Daniel, Cross Rivers State, Gov Fashola, Chief Gabriel Igbenidion amongst others.
Dr Alistair Soyode is the Chief Executive of BEN television and
The Categories for 2010:
Award ofExcellence
1 Nigeria Arise – State of the Year
2 Nigeria Arise – Tourist State of the Year
3 Nigeria Arise – Outstanding State First Lady Pet Project
4 Nigeria Arise – Best Governor
5 Nigeria Arise – Most Outstanding Minister
6 Nigeria Arise – Most Outstanding Federal Legislator
7 Nigeria Arise – Corporate Personality
8 Nigeria Arise – Best Airline
9 Nigeria Arise – Best Financial Institution
10 Nigeria Arise – Best Stockbroker
11 Nigeria Arise – Most Influential Person in Nigeria
12 Nigeria Arise – Best Nigerian
13 Nigeria Arise – Best Hospitality Industry
14 Nigeria Arise – Best Nigerian Musical Artiste Male / Female
15 Nigeria Arise – Best Music Producer/Promoter
16 Nigeria Arise – Best Actor / Best Actress
17 Nigeria Arise – Best Movie Producer / Director
18 Nigeria Arise – Best Sports Personality Male / Female
19 Nigeria Arise – Best TV Station
20 Nigeria Arise – Best Beauty Pageant Organiser
21 Nigeria Arise – Governors (Geo) & Diplomats
22. Many more or many less!!!
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Nigeria-USA, Two inseparable allies
While the consumption of petroleum-based products in the United States (U.S.) is flat, Nigeria’s ranking on the international oil supply chart to the U.S. has grown.
A monthly data on the origins of crude oil imports into the U.S., based on February 2010 figures, which is the most recent estimate available to the U.S. government, shows that Nigeria is the fourth top oil supplier of the U.S., now ahead of Saudi Arabia, by the end of February this year.
According to the Energy Information Administration (EIA), Nigeria is among the top five oil suppliers to the U.S. and “the top five exporting countries accounted for 64 per cent of United States crude oil imports in February while the top 10 sources accounted for approximately 85 per cent of all U.S. crude oil imports.”
The EIA listed the top five sources of U.S. crude oil imports for February as Canada with 1.897 million barrels per day (mbpd) to the U.S.; Mexico (0.996 mbpd), Venezuela (0.913 mbpd), Nigeria (0.896 mbpd), and Saudi Arabia (0.881 mbpd).
EIA added that “the rest of the top 10 sources, in order, were Iraq (0.540 mbpd), Colombia (0.371) mbpd), Angola (0.312 mbpd), Algeria (0.282 mbpd), and United Kingdom (0.260 mbpd).
Altogether, the total crude oil imports to the U.S. averaged 8.680 mbpd in February, which is an increase of 0.226 mbpd from January 2010.
According to the EIA, Canada remained the largest exporter of total petroleum in February, exporting 2.490 mbpd to the U.S., which is a decrease from last month’s (2.593 mbpd). The second largest exporter of total petroleum was Mexico with 1.134 mbpd.
Barrack Obama, President, USA.
But in the EIA Annual Energy Outlook, the EIA disclosed that “although U.S. consumption of liquid fuels continues to grow over the next 25 years…reliance on petroleum imports decreases.”
The Outlook added that with U.S. government policies and rising oil prices providing incentives for the continued development and use of alternatives to fossil fuels, “bio fuels account for all the growth in liquid fuel consumption in the United States over the next 25 years, while consumption of petroleum-based liquids is essentially flat.”
EIA outlook stated further that the role played by petroleum-based liquids could be further challenged “if electric or natural-gas-fueled vehicles begin to enter the market in significant numbers.”
Now in the U.S., the Outlook said that rising oil prices, together with growing concerns about climate change and energy security, were leading to increased interest in alternative-fuel vehicles (AFVs), but both electric and natural gas vehicles face significant challenges with the potential for petroleum displacement.
From Laolu Akande, New York
Source Guardian
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Mohammed al Fayed
Harrods, the world famous department store, has been sold for more than £1.5bn to the Qatari royal family, Times Online can confirm.
Mohamed al-Fayed, the Egyptian owner of the London landmark, has decided to retire and will hand over the reins to Qatar Holding.
The firm was chosen because they would “maintain the traditions of Harrods”, said Ken Costa, chairman of Lazard International – the investment bank advising the family entrusted with the deal.
Fayed received advances from Gulf-based suitors in the last two months, but initially offered them “two fingers” in a vehement refusal.
“People approach us from Kuwait, Saudi Arabia, Qatar. Fair enough, but I put two fingers up to them all,” Fayed said last month.
“It is not for sale. This is not Marks & Spencer or Sainsbury. It is a special place that gives people pleasure. There is only one Mecca.”
But today Costa confirmed that the owner of Fulham football club has changed his mind.
“After 25 years as chairman of Harrods, Mohamed al-Fayed has decided to retire and to spend more time with his children and grandchildren,” Costa said.
Costa said Fayed’s family trust agreed to sell because Qatar Holding had “both the vision and financial capacity” to support the long-term growth of Harrods.
Fayed “wished to ensure that the legacy and traditions that he has built up in Harrods would be continued”, he added.
The Egyptian has invested around £400m in the Knightsbridge icon to restore it to its former glory, including £75m for an Egyptian-themed escalator flanked by sphinxes.
Qatar Holding, which handles investments for the Middle Eastern state’s royals, will become only the fifth owner of Harrods since its creation in 1840.
The store has been owned by the Egyptian tycoon since 1985’, is thought to have changed hands in a secret deal with Gulf-based investment group Qatar Holding, which is owned by the Qatari royal family.
Sources speaking to Sky News said the department store had sold for £1.5 billion.
It comes after it emerged that Mr al Fayed had received an unsolicited approach for Harrods in March.
At the time Mr al Fayed, who also owns Fulham Football Club, tried to reassure staff that the store in London’s Knightsbridge area was not for sale.
Harrods, which is one of the world’s most famous stores and extends over seven floors, sees more than 15 million customers pass through its doors each year.
Harrods was bought by Fayed in 1985 for £615 million. The retailer has been regularly linked to takeover speculation.
In 2002 John Ritblat, then-chairman of British Land, offered to buy Harrods from Mr Fayed and lease it back to him.
However the offer was rejected by Mr Fayed, who told Ritblat – who was knighted in 2006 – that the store was not for sale.
In 2003, it was suggested that Mr Fayed wanted to put the store on the market.
It was linked to Harvey Nichols’ owner Dickson Poon and investment bank Lazards, which was reported to be working on a deal to merge Harrods with Selfridges, the rival department store.
A spokesman for Harrods was not immediately available to comment on the reports that the store had now been sold, but a statement is expected to be made on Saturday confirming the deal.
Ken Costa, the chairman of Lazard International, the investment bank advising the deal, confirmed the sale to Sky News.
In a statement he said: “After 25 years as chairman of Harrods, Mohamed al Fayed has decided to retire and to spend more time with his children and grandchildren.
“He has built Harrods into a unique luxury brand with worldwide recognition.
“In reaching the decision to retire, he wishes to ensure that the legacy and traditions that he has built up in Harrods would be continued, and that the team that he has built up would be encouraged to develop the foundations that he has laid.
“Qatar Holding (QH) will become only the fifth owner of Harrods since its creation, in 1840.
“Qatar Holding was specifically chosen by the Trust as they had both the vision and financial capacity to support the long-term successful growth of Harrods.
“Of paramount importance to Mohamed al Fayed was to ensure that the Harrods staff would find in QH an owner who would be supportive of their efforts to maintain the traditions of Harrods.”
Sources: Telegraph /Times
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Chqye guarrantee cards on way out
One of the biggest banks has sounded the death knell for the cheque guarantee card, with rivals set to follow its lead.
Santander, owner of Abbey and Alliance & Leicester, said yesterday that all of its new debit cards will not carry the popular ‘guarantee’.
Rival banks will do the same in the coming months, leaving small businesses which rely on cheques exposed to fraud and financial loss.
At present, most debit cards include a ‘cheque guarantee’ logo on the back.
It features an image of William Shakespeare’s head and usually states it is guaranteed for about £100 or sometimes for up to £250.
This means that anybody from a milkman to a small hotel knows that the cheque is approved by the bank for this amount.
Latest figures from the Payments Council, an umbrella group for British banks and building societies, said four million people regularly use cards to guarantee their cheques.
But in a further sign of the decline of the payment method, months ago the council said that it is going to axe the cheque guarantee service from the end of June next year.
Yesterday Santander, which has around eight million current account customers, announced new debit cards will not include the cheque guarantee logo.
A spokesman for the Spanish firm said it has decided to start replacing all cards when they come up for renewal.
A card typically lasts for up to three years.
‘In light of the need to replace around five million debit cards which have a cheque guarantee logo, Santander is taking a phased approach to make this task more manageable,’ the spokesman added.
Source : Mailonline
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Old note with Queen's image
The Bank of England is celebrating the 50th anniversary of the Queen’s appearance on the Bank notes. An exhibition had been organised to showcase many landmark notes in which Queen Elizabeth had appeared.
The first bank note to carry her portrait was a one pound note issued on March 17, 1960, but the image of the Queen has since been updated on a number of occasions, in 1963 by Reynolds Stone, in 1970 and 1971 by Harry Ecclestone and most recently in 1990 by Roger Withington.
The original 1960 sketch by Robert Austin, which shows the design at an earlier stage, is also on display.
The exhibition at the Bank of England Museum, A Decoration and a Safeguard, which traces the development of the portrait of the Queen on the notes, features not only the five different portraits done since 1960 but their preliminary sketches and printing plates.
Letters and material relating to the five portraits will also be on display at the exhibition which runs from March 17 to June 4. There will also be previously unseen sketches and artwork from the bank’s collection including rejected designs and early unissued banknotes.
Last week the Bank of England announced that £20 notes featuring Sir Edward Elgar will not be legal tender after June 30. From July 1, only notes with the image of Adam Smith, the Scottish economist, which came into circulation in March 2007, will be legal.
The Bank of England has been issuing banknotes for more than 300 years.
“Kings and queens have been depicted on Britain’s coinage since Anglo-Saxon times but it was not until 1960 that the monarch first appeared on a Bank of England note,” said curator John Keyworth.
“There were two main reasons to introduce the royal portrait.
“Firstly, the Bank had been nationalised in 1946, and by portraying the monarch on its notes the institution recognised that it was now publicly owned.
“Secondly, the highly specialised art of the hand-engraved portrait added a formidable anti-forgery feature.
“Taking into account its appearance on postage stamps and coins since 1952 and on Bank of England notes since 1960, the Queen’s portrait is probably the most reproduced image in the history of the world.
Source: Telegraph.
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Central Bank of Nigeria
Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) on Monday directed all the twenty-four banks to disclose fully all rates and charges associated with their products and services with a view to stemming all forms of sharp practices in the financial sector of the nation’s economy.
Sanusi gave the hint while speaking on ‘Regulating the Banking Industry: Are Consumers in Focus?’ during the consumer interactive forum organised by Consumer Protection Council (CPC) in Abuja.
The apex bank has also commenced the review of the code of corporate governance for Nigerian banks which was issued in 2006 with a view to strengthening consumer protection by emphasising transparency and full disclosure in the banks’ service offerings.
He said “the CBN has commenced the process of reviewing the Code of Governance for Banks in Nigeria. The Code of Corporate Governance was issued in 2006.
The result of the review is expected to strengthen consumer protection by emphasising transparency and full disclosure in the banks’ service offerings. Greater scrutiny will be exercised on how banks push their products and services down to consumers by requiring banks to disclose, fully, all rates and charges associated with their products and services.
“The CBN understands that the nation will no longer tolerate the rampant incidents of hidden charges built into bank products. Consumer complaints concerning banks’ hidden charges represent a sizeable percentage of disputes between banks and their customers receiving the attention of the CBN.”
Sanusi, who expressed displeasure over the increasing rate of Automated Teller Machine’s (ATM) fraud and identity theft in the country, noted that the newly established financial policy and regulation department has started generating and analysing data on ATM and other financial frauds recorded in the country.
He said “the plan is to further sensitise top management to the plight of the consumer in order to articulate industry standard and best practice policies to limit the increase in these financial crimes. A number of meetings and discussions have been held with various stakeholders with a view to stemming the abuses. The CBN will soon unveil a definite directive to guide financial institutions that provide ATM services to consumers.”
Also speaking, Achike Udenwa, minister of commerce and industry, noted that the amendment of the Consumer Protection Act No. 66 of 1992 has reached advanced stage, which, he said, is aimed at making comprehensive provisions for consumer protection in Nigeria.
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All efforts to checkmate ATM fruadsters
The rising incidence of frauds perpetrated through Automatic Teller Machines (ATM) will soon abate following the completion of the National Central Switch (NCS) for electronic payment in the country.
The NCS has a special security feature that can block usage of payment (ATM) card in different cities across the country within short time interval. When ATM fraudsters gets information about an ATM card, they create (clone) several versions of the card and distribute it among their co_fraudsters located in different cities of the country.
Thereafter the card is used to access money from the account of the card holders in different cities and within short time frame. For example the card is used in Lagos and twenty minutes later the same card is used in Abuja.
This enables the fraudsters to withdraw huge sums of money from the account of ATM cardholders within 24 hours.
But with the NCS makes such fraudulent practice impossible and thus fulfil one of its core objectives which is to provide a mechanism for proactive detection of Electronic Fund Transfer (EFT)/ card frauds.
“The NCS has security features that ensures that once a card is used in a city say Lagos, that card can’t be used in another city say Abuja within a short time space like thirty minutes,” said Paul Lawal
“Once the NCS detects such card transaction, it will block it and hence frustrate the fraudsters”, he said at a press briefing on the NCS organised by Nigeria Interbank Settlement System (NIBSS).
The NCS is an initiative of the Bankers Committee, the umbrella body of banks’ chief executives and the Central Bank of Nigeria (CBN). The objective of the NCS is to provide the technological infrastructure that will enable members of the banking public to use their payment cards on any payment device (ATM, POS) irrespective of the bank or organisation that issued the card or deployed the payment devise.
Presently there are five organisations that offer the platform for banks to switch (exchange) electronic banking transactions among themselves. These companies, known as switches or switch operators are Interswitch, E_tranzact, Chamms, Card Technologies and Valucard.
For this purpose, these companies operates payment card scheme which are issued to by banks that belong to their scheme like the E_tranzact card, Interswitch card, Masters Card and Visa card. However bank customers holding any of these cards (issued by their cards) can only use the cards on devises deployed by banks belonging to that card scheme. for example Interswitch Cards can only be used on ATM and POS deployed by banks on the Interswitch scheme.
Hence Interswitch cards cannot be used on devises deployed by banks on E_tranzact scheme. The NCS is designed to put an end to this restriction by ensuring that all payment cards are accepted by all payment devise in the country.
This, according to Lawal, who is the Managing Director/Chief Executive of NIBSS is known as Interoperability.
“Simply put, the main objective of the NCS is to ensure INTEROPERABILITY and attain ubiquities Card Acceptance in the industry. When this is achieved, all payment cards issued by banks in Nigeria will be accepted on all Acceptance Device deployed in Nigeria.
This will ensure that card holders will enjoy tremendous freedom to use their cards in a safe and secure manner in any place in Nigeria, while delivering substantial benefits to all stakeholders”, he said.
This, he added will deliver higher transaction volume and revenue for banks, switch operators, device owners; and higher sales and lower POS cost for merchants.
On the benefit of NCS to the economy, he said, “Also, the NCS shall deliver direct and immediate gains to the economy of Nigeria by providing great savings in foreign exchange as banks will not have to provide the technology infrastructures for direct connectivity to every switch initiative any more.
The NCS is a shared resource which players in the payments industry will employ and rely upon so they can concentrate in the provision of their respective core value positions to the banking public. The NCS shall enable new investors in the payments industry to get to the market and deliver value to the banking public faster. The NCS will create a critical mass in card usage in Nigeria, thereby promoting commerce and growing the national economy to the benefit of all.”
Following the completion of the NCS, a pilot NIBSS conducted a pilot scheme to test its effectiveness. This pilot scheme, according to Lawal involved two banks and payment cards belonging to different switch operators. “Card transactions passed through the NCS successfully during the pilot operations, and the installed NCS infrastructures, which operates 24/7 basis, performed as expected”, he said.
He said that all the existing switches have connected to the NCS as well as three banks. Three other banks, he said, are in the process of connecting to the central switch. “With the successful completion of the pilot scheme, the NCS is ready for live operations”, he declared.
By Babajide Komolafe of Nigerian Vanguard