Nollywood star Nkem Owoh resurrects in

Lagos
Written by VANGUARD
Saturday, December 6, 2008

The many months of controversy

surrounding the rumoured death of one of
Nollywoods biggest stars, Nkem Owoh
was finally put to rest on Sunday at
celebrity hangout, Ojez, National
Stadium, when it hosted him in its
monthly Ojez Entertainment Forum.

Nkem Owoh (left)

For about three months now, rumours

were rife that the actor, the African Movie
Academy Award (AMAA) winner of Best
Actor 2008, ingested hard drugs that
erupted in his belly in Morocco as the
Spain bound plane made a stop.
Another version of the cruel story spurn yarns of how he was reportedly beheaded in faraway
Russia or how he was buried alive in Saudi Arabia when he was convicted of pushing hard
drugs.
Owoh who did not travel out of the country the period in question did not help matters, as he
remained incommunicado, apparently developing a thick skin to the malicious rumours being
peddled against his person.
He was on location in Abuja. So, Ojez decided to help dispel the rumours by inviting the actor
to its newly formed Ojez Entertainment Forum. It took quite an effort to convince Owoh to
leave his busy location schedule to come to Lagos for the Sunday event.
As at 8pm, Owoh had not shown up for the event billed to begin at 6pm.
The atmosphere was tense, president of the Actors Guild of Nigeria, AGN, Ejike Asiegbu,
notable Nollywood actor and former AGN president Zach Orji and Chairman of Ojez Chief
Joseph Odobeatu were at intervals seen conferring and making frantic calls to Owoh to
ascertain his expected time of arrival.
Meanwhile, the belly of Ojez restaurant was filled to the brim with fans of the actor who had
one mission that eveningto confirm if actually he had been killed in faraway land.
When Owoh made his appearance at about 8.30pm, the whole place erupted. Television
cameras trailed him from his car till he got a seat. Over 40 people with mobile phones were
recording him for posterity and to show people at home that he is actually alive. The Ojez
band was blasting away high life tunes to the admiration of all.
To prove he is alive, Owoh took the floor and declared that whoever started that wicked
rumour about his death miscalculated because God, because of that (rumour), has added
another 20 years to my life.

He said he was at loss as to how the rumour began but displaying his ever present sense of
humour, he declared he was speaking from the dead. I am talking from the dead because
some moths ago, I was dead.
But if Obasanjo (former Nigerian President), said him dey Kampe, me, I dey Ka Kampe
because Obasanjo is older than me.
He later performed his controversial song entitled I Go Chop Your Dollar. This sent the
crowd to the dance floor. Earlier, Zach Orji said the reason why Ojez decided to honour Owoh
is not only to dispel the rumour of his death but to celebrate his worthy achievement in the
field of the arts.
Nkem Owoh is one of Nigerias biggest actors and you know Ojez is home to Nigerian
celebrities so we have to honour a star like Owoh.
And since the rumour about his death, this is the first time, he is appearing in public. So, let it
be known that Nkem Owoh did not die and he did not peddle hard drugs as some wicked
people would want the world to believe.

CBN Moves to Shore Up Naira

By Moses Obajemu and Festus Akanbi, 12.07.2008

Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma

Soludo, has hinted that the apex bank would come up with policies
in the new week to resuscitate and stabilise the naira.
Speaking on the issue Friday night in Lagos at the 2008 Bankers
Night organised by the Chartered Institute of Bankers of Nigeria
(CIBN), Soludo did not state what the policies will look like nor state
if fresh supply sources would be announced in the week.
In the last two weeks, the naira has depreciated against the United
States dollar at the Inter-bank Foreign Exchange Market (IFEX),
losing about N20 to now exchange at N135 per dollar.
Even at the CBN controlled official foreign exchange market, the
naira has lost N10 to now exchange at N126 per dollar from the
N116.66 it was for a long time before the recent free fall.
The CBN Governor reassured the banking public that all the 24
banks in the country are safe, liquid and doing well. He said the
banks would not be affected by the global financial meltdown in any
way and that no bank will fail in Nigeria.
Soludo also dispelled speculations that there would be a bail out
package for the nations capital market that is in a downward turn.
He explained that the capital markets all over the world go up and
come down and that the crisis in the market will soon be over.
Soludo had last Wednesday told THISDAY that the apex bank would
intervene in the foreign exchange market.
He asked forex end users and banks not to panic CBN would meet

all the demand at the market determined rate.

To douse the pent up pressure in the foreign exchange market, he
said effective from last Thursday, the CBN will get back into the
inter-bank market and participate in the two way quote, where a
dealer gives a foreign exchange quote in which he indicates the
price he is willing to by and sell.

There is absolutely no cause for panic. We

have all it takes to meet all the demands in
the market. And for those who are
speculating on the naira, we would make
them incur huge losses, he said.
Soludo had said the apex bank would become very active in the
market by making sure that there is adequate supply of dollars in
the market to meet demands, which has increased significantly
lately as foreign exchange end users take year-end positions to preempt any major government policy shift that may arise early next
year.
The market will stabilise. We (CBN) will intervene heavily in the
market and there would be adequate supply of foreign exchange
because we would be very active in the market, Soludo said.
The CBN, which has lately become the major foreign exchange
supplier to the market because of the dearth of dollars at the interbank market, was a fringe player before the global financial
meltdown, which has seen developed countries injecting several
trillions of dollars to save their financial system from collapse.
The naira, which had lost N9.89 against the United States dollar
within the last 10 days at the official market has been under
tremendous pressure lately because the CBN, which is the major
player in the market, could not meet demand.
The dearth of dollars at the official foreign exchange market had
also triggered depreciation at both the black market (unofficial
market) and inter-bank market (where banks buy foreign exchange
from one another on behalf of their customers to meet their daily
needs).
CBN has been rationalising the sale of dollars since last week
Monday when it sold 30 per cent of the total demand. It also sold 10
per cent last Wednesday before selling 10.3 per cent of the total
demand last Monday. THISDAY also gathered that the CBN sold only
$180 million on Friday out of over one billion dollars, which was
demanded by foreign exchange users.
Commenting on these developments, a top CBN official attributed
the depreciation of the naira to the continuous depletion in the
nations external reserve, which was triggered by the plummeting
price of oil at the international market.
He explained that since the CBN was applying three months
forward rate (about $100 per barrel) and the price of oil has gone
below $50 per barrel, the accretion (that is inflow and outflow) to
reserve will definitely be lower.

Good Afternoon!

Tuesday December 09, 2008

Why Naira is falling

Monday, December 8, 2008
The recent aggravated depreciation of the Naira has been described as
true reflection of the
foreign exchange
market fundamentals.
This was disclosed by
the governor of Central
Bank of Nigeria (CBN),
Prof. Chukwuma
Soludo at the 2008
Annual Bankers
Dinner organised by
the Chartered Institute
of Bankers of Nigeria
(CIBN).
Prof. Chukwuma Soludo
According to Soludo,
with supply shrinking,
we have two options;
Pix: Sun News Publishing
either we draw down
the foreign reserve to
keep the foreign exchange at the current levels or allow the price to
adjust to reflect the reality of our situation. If something doesn't give,
it would eventually wipe off our industrial base. On the fiscal side,
government expenditure is not going down, salaries are now going
down because oil prices are going down.

Soludo said the price of the exchange rate would have to adjust or else,
we will get back to 1982 stage when many state governments and
federal parastatals could not pay workers salaries for months because
of the shock the economy was subjected to because of falling oil prices.
You would start to see abandoned projects littering the Nigerian
landscape. In the final analysis, we either adjust now, which is less
painful or draw down our reserve and adjust later with server pains to
everybody within the economy he said.
It now a question of timing; when do you adjust- now or later?
Before, I know the size of my wallet and I could make a credible threat
but now I cannot make such threats.
Comparing the depreciation of the Naira in 1982 and now, Soludo
said, Then what we did was to ban access to foreign exchange. If you
are seen with foreign exchange, it would be confiscated and you will
either be jailed or shot but that also did not stop the balance of
payment crisis. The markets will only respond by speculating and the
exchange rate will only get worse.
Linking the present scenario, the governor said, What Nigeria is
doing is to simply allow the real fundamental of the foreign exchange
market keep our economy, both externally and internally in balance.
This is to avoid a very painful but necessary adjustment later. The
MPC would meet on Wednesday to deliberate and issue new
guidelines on the foreign exchange market.

than then and the economy is very much liberalised but our banks
have an onerous responsibility. Our banking sector cannot afford to
falter. No single bank can afford to falter, and all of us working
together, will make sure that no single bank in Nigeria falter. The
financial system is as strong as the weakest link, he said.
Meanwhile, it will no longer be business as usual for the nations
banks, as the industry apex self regulatory body, CIBN is set to rid the
industry of quacks, president and chairman of council CIBN, Dr.
Erastus Akingbola has said.
According Dr. Akingbola, CIBN will from 2009 commence the
enforcement of the CIBN Act, which will include the licensing of
practitioners and vowed that any professional who is not registered
with the institute after the exercise, should be ready to pay the
penalty.

Published 12/8/2008 1:46:00 AM

Impact of global crisis on Nigerias economy uncertain L

Everest Amaefule, Abuja

The Deputy Governor, Financial Sector Surveillance, Central Bank of Nige

Tunde Lemo, has said that the impact of the global financial industry on Ni
economy and its banks has not yet been ascertained despite assurances fro
quarters that it has had little or no impact on the country.
Lemo stated this in Abuja on Friday, in a keynote address on, Global Fin
Crisis: Linkages With and How Prepared is Nigerias Financial Services S
presented at the 15th Annual Senior Treasurers Retreat of the Money M
Association of Nigeria.
He said the financial crisis had raised many unanswered questions, which o
and other stakeholders in the industry needed to address in order to mov
financial services sector forward.
He said, The lingering global crisis has left many of us with several unans
questions. For example, to what extent has the crisis affected development
Nigerian economy as well as Nigerian banks?
Why does the crisis seem to persist despite the numerous policy measures
in the United States and other countries to restore confidence in the marke
when will it end? How prepared is the Nigerias financial services sector to
future crisis should it arise?
The CBN boss said the recent restructuring in the banking sector had help
minimise the impact, adding that it was evident that the reforms have had a
impact on the performance of the banking sector as manifested in the dra
growth in total assets, total deposits liabilities, net income and profit before
shareholders funds.
He also warned that investors and the nation against placing undue trust in
rating agencies.
He said, Prior to the crisis, investors tended to have placed excessive trust

agencies approach to structured credit. Although the rating methodolog

corporate credit risk is fundamentally different from that used for structured
the ratings that results are placed side-by-side each other, as if they were a
using the same methodology and imply the similar potential losses.
The lesson here is that, in the future, in order to avoid such confusion, rati
different types of obligations should be clearly distinguished and investors sh
just rely on ratings to determine their investment decisions.
Lemo said foreign portfolio investment withdrawals and withholding as w
prospects of reduced foreign direct investment, were bound to affect inve
confidence in Nigerias economy, particularly in an era where public-priv
partnership was being encouraged in the execution of big ticket projects like
plants, rail and roads.

Huge capital flight hits Nigerian economy

Written by Gabriel Omoh, Business Editor
Friday, December 5, 2008
*$13.9bn repatriated in 8 weeks
THE global financial crisis has begun to take its toll on the Nigerian economy as corporate
bodies are moving funds massively out of the country and from naira to dollar.
In the last eight weeks alone, a total $13.894 billion went out of the country. While about
$757 million went out in the week ending September 9, the amount of foreign exchange
flowing out of the country rose to $1.359 billion in the week ending September 19.
It, however, dropped to $452 million on October 3 and moved astronomically to $3.290
billion on October 17.
The foreign exchange outflow went further up to $3.356 billion on October 31 and declined a
little to $2.397 billion on November 4 and $2.02 billion and $1.262 billion for the weeks
ending November 21 and 28 respectively.
This has resulted in the crash of the naira exchange rate which had remained stable in the last
two years.
The CBN has attributed the collapse of the naira at the interbank market to currency
speculators who buy and hold currency for them to sell later to make some gain. The
movement of funds out of the country comes by way of Nigeria residents buying up dollars
with their naira and moving it offshore.
The trend became noticeable in October where in a matter of weeks several billions of dollars
were purchased through the banks and bureaux de change. The movement of funds is also in
travels business travel allowance, personal travel allowance, direct remittances and so on.
According to data obtained from CBN over eight weeks, the total amount of foreign exchange
that went out through travels amounted to $72.067 million; Debt service/payment $799.194
million;

Wholesale at the Dutch Auction market $6.276 billion; Direct remittance $851.809 million;
Letters of credit $3.205 billion and cash sales to banks and bureaux de change $3.170 billion
Market operators are also seeing it from the perspective that the reduction of credit line to
Nigeria banks by their foreign counterparts as a result of the global financial meltdown is
partly responsible for the high volume of funds leaving the country as the usual 90 days trade
credit line has dried up in some banks who have had to meet the needs of their customers
through direct sales.
The CBN said, Wednesday, that it would intervene in the matter. Investigation showed that
the CBN sold $180 million at the interbank market.
At the open market yesterday, however, the naira exchanged for N137 to the dollar as against
the N135 the previous day. But Nigerias interbank foreign exchange market remained frozen
yesterday as dealers waited to see the outcome of the sale of $180 million by the Central Bank
if it would stabilise the naira.
Governor Chukwuma Soludo had said on Wednesday that the Central Bank was ready to
intervene from yesterday to ensure stability after dollar supply seemed to have dried up amid
unprecedented demand.
He said the Central Bank would meet all demands at a market determined exchange rate and
that the apex bank was ready to buy and sell as necessary. The market still remains closed,
we are waiting for the Central Bank intervention. The Central Bank has called around asking
for quotes, a banker said yesterday.
The naira, weakened, close to 8 per cent to almost N130 to the dollar on Tuesday, N135 on
Wednesday and N137 yesterday as dealers digested the impact of the 2009 budget proposal
announced by the president and reacted to what appeared to be a managed depreciation of
the local currency.
The Central Bank allowed the naira, broadly stable for months, to depreciate further against
the dollar at its bi-weekly auction on Wednesday, selling at between N127-129 compared to
around N117 a week ago.
It sold only $180 million on Wednesday and $100 million on Monday despite demand of
about $2 billion, leaving banks scrambling for dollars from other sources
Money market operators said dollar demand was being driven by importers before the
Christmas trading season as well as by portfolio investors who have been taking money out of
Nigeria as the global credit crisis dampens appetite for risk.
It has also been fuelled by banks, businesses and individuals worried by the long-term
impact of falling oil prices on Nigerias economy shifting their balance sheets out of naira
into U.S. dollars.
One banking analyst said he thought the Central Bank might have deliberately restricted
dollar supply to the market to flush out speculators and ascertain the true level of underlying
demand.