Archive for nigeriang

Tanzania inflation rises to 6.4 per cent

Tanzania inflation rises to 6.4 per cent

Tanzania’s
year-on-year inflation rate rose for the third successive month in
January, driven higher by fuel and food prices, the country’s
statistics office said on Tuesday.

The inflation rate
hit 6.4 per cent in January, up from 5.6 per cent in December, and a
low of 4.2 per cent in October – the month the National Bureau of
Statistics (NBS) changed the calculation methodology and reduced the
weighting of food.

“The increase of
the inflation rate was mainly caused by a significant rise in food,
fuel, and house rent costs,” Ephraim Kwesigabo, director of population
census and social statistics at NBS, told a news conference.

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Minister wants more jobs from the Wal-Mart deal

Minister wants more jobs from the Wal-Mart deal

The proposed deal
between Wal-Mart and South Africa’s Massmart Holdings should support
local procurement and job creation in Africa’s biggest economy, South
African economic development minister, Ebrahim Patel, said on Tuesday.

Mr. Patel said his department is in talks with both the U.S. retailer and South African unions who oppose the deal.

“What we would be
seeking to ensure is that there is strong local procurement, that the
South African supply base is supported, and that our capacity to create
jobs locally is highlighted. This is what the conversation with
Wal-Mart is about,” he told reporters.

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Nigeria’s energy sector will be transformed, says Minister

Nigeria’s energy sector will be transformed, says Minister

The minister of
petroleum resources, Diezani Allison-Madueke, says Nigeria’s energy
sector will witness unprecedented transformation in the next four years.

Mrs.
Allison-Madueke said this on Monday in Abuja at the opening of the
Chief Officers’ Management Development Programme Batches 063 to 068 of
the NNPC.

The minister said
the federal government had prepared an enabling environment for the
transformation initiative. She also said that government was holding
talks with investors and making plans to build a 1.3 million tonne
petrochemical plant in the country.

“The success of any
organisation rests on its staff. It is, therefore, imperative that we
ensure the right quality of managers that would lead the sector,” she
said.

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OPINION: Consolidating stockbroking firms can derail market growth

OPINION: Consolidating stockbroking firms can derail market growth

Ordinarily, consolidation makes a position of power or success stronger so that it is more likely to continue.

Several enterprises
have utilised consolidation by way of mergers, acquisitions, and
combinations to avert failure or grow their businesses. However, it is a
risky double-edged sword that could mar the fortunes of enterprises if
improperly conceived.

The case of
Nigeria’s banking industry is a vivid illustration of how forced
consolidation can derail the orderly growth of an entire industry.
Experience has shown that consolidations that work are those driven
internally by enterprise peculiar needs rather than industry wide
imposition by external forces.

In context of free
market economy, consolidations are treated with utmost suspicions as
they could engineer emergence of monopolies or oligopolies which stifle
competition to the detriment of consumers. For economic sectors where
unfettered competitions precede the attainment of perfect market,
anti-trust regulators resist combinations that could breed monopolies.

Soon after
consolidation of Nigeria’s banks and emergence of 25 mega banks out of
the 89 that hitherto existed, monetary regulators were forced to
introduce Microfinance Banks (MFBs) to fill the void that arose from
constriction. Today, there are over 400 MFBs servicing the neglected
needs of Small Scale Enterprises that generally had no access to credits
from the mega banks.

A similar fate
awaits retail clients in the stockbroking industry if consolidated into
fewer numbers of firms. The few emergent large firms will set
prohibitive minimum requirements which retail investors cannot meet,
thus denying a large segment of Nigerian investors’ direct access to
investment opportunities in the nation’s capital market. It is common
knowledge that before global meltdown, several large stockbroking firms
set N5 million as minimum investment entry requirement to open
investors’ stockholding accounts.

The stock market is a
mass market. Its capital formation power is derived from mass
participation driven by investors’ confidence which stockbrokers work
strenuously to cultivate. Large number of stockbroking firms in a
country as populated as ours constitute the vital bridges that connect
an equally large number of diverse investors who are remotely located to
the capital market. With fewer stockbrokers, the bridges will also be
fewer.

Odife reform panel
on the capital market even advocated multiple stock exchanges and
capital trade points to bring capital formation mechanism close to the
grass root in Nigeria. Had his recommendations been implemented, several
more stockbroking firms would have been required to trade on those
platforms. Odife’s expansionary reform, geared towards growth of the
capital market and the economy at large, remain superior as remedy to
challenges that beset the market today, rather than moves to consolidate
into monopolies and elitism.

In recent past,
consolidation of Stock Exchanges was a popular reform theme in the
global capital market. This worked against establishment of multiple
stock exchanges in Nigeria. However, to date, all major European stock
exchanges and Asian stock exchanges have failed to consolidate into one
entity.

As a result, global
competition among stock exchanges has continued with undiminished
intensity. China is even establishing more stock exchanges with
fanatical zeal. Major stock exchanges including London, Frankfurt,
Paris, Hong Kong, Tokyo etc have maintained their individual identities
because the cultures and structures of capital markets and economies
they serve differ from place to place.

Between banking and stockbroking

Renewed threat by
government after previous hesitation to consolidate capital market
operators in Nigeria with possible increase of minimum capital base of
stockbroking firms from N70 million to N1.5 billion, has stimulated
public debate about desirability of the move at this time when the
capital market is just recovering from a major catastrophic meltdown.

In spite of the now
evident disaster consolidation wreaked on the banking sector,
stakeholders are surprised that the bandwagon effect continues to haunt
other sectors of the finance industry, fundamental differences between
banking and stockbroking notwithstanding.

For clarity, banking
is a trade in which the relationship between the banker and his
customer are Debtor and Creditor respectively. In contrast, stockbroking
is a profession in which the relationship between the stockbroker and
his client is Agent and Principal respectively.

The capital base of a
bank is security required to mitigate the risk of non performance of
risk assets created from customers deposit liabilities because the risk
assets are owned by the bank. Whereas, in stockbroking, the assets
purchased for investor clients are owned and registered in names of the
investors.

Because stockbrokers
do not create risk assets, their need for capital is only limited to
infrastructure they require to efficiently deliver their professional
services. All over the world, professional service providers including
stockbroking firms, carry unlimited liabilities and mitigate their risks
with fidelity guarantee insurance. It is for this reason that the
highest capital requirement for stockbroking in India prescribed by
Bombay Stock Exchange is equivalent of N2 million. Other 22 stock
exchanges in India prescribe lesser amounts. India is about the fifth
largest economy in the world. The country has a large population and
similar neo-colonial economic heritage as Nigeria, yet its capital
requirement for stockbroking firms is so infinitesimal compared to
Nigeria’s current N70 million.

Although
consolidation could lead to large entities and economies of scale up to
the point of diminishing returns, there is no concrete evidence that
size alone is panacea for cost effectiveness, efficiency of service
delivery, and profitability.

Today, Nigeria’s
finance industry is replete with several distressed large stockbroking
firms, failed rescued big banks, succeeding and strong small banks and
stockbroking firms.

The competitive
future of Nigeria can only materialise if market mechanism determines
free entry and free exit of economic enterprises under effective market
friendly regulatory framework.

Adonri is the CEO, Lambeth Trust & Investment Company Ltd, Lagos

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Ministers miss work to join presidential campaign

Ministers miss work to join presidential campaign

The regional
flagoff of Goodluck Jonathan’s presidential campaign is taking a toll
on the nation’s governance as multiple ministers were absent from the
2011 budget defence at the National Assembly. Budget defence is a
significant annual ritual in the process of preparing the budget and
traditionally, lawmakers do not discuss any ministry or government
agency’s budget without the head of the ministry or agency.

On Monday, a joint
committee of the Senate and House of Representatives on Gas called off
the hearing for the Ministry of Petroleum’s 2011 budget defence due to
the absence of the Minister of Petroleum Diezani Alison Madueke.
According to the ministry’s permanent secretary, Goni Musa Sheikh, who
led the delegation, the petroleum minister had returned from a journey
the previous day and was “not feeling too well” to attend the budget
defence session. Mrs. Madueke had been on the campaign trail of the
president, which commenced in Nasarawa state last week, and has since
been on a tour of the nation’s sub-region. Even though the deadline for
the various committees to submit their input for the 2011 budget to the
Senate and House committees on Appropriation was to elapse on Tuesday,
members of the Gas committee postponed the budget defence to Wednesday.

Similarly, the
Senate Committee on Works had on Thursday last week postponed the
budget defence of the Ministry of Works because the minister, Sanusi
Dagash, was attending the president’s campaign in Bauchi state.

“You cannot shave a
man’s hair in his absence,” Igo Aguma, chairman, House Committee on Gas
said on Monday while dismissing the “low level” delegation from the
petroleum ministry.

With the budget defence sessions of the petroleum ministry, the works ministry and a couple of others stalled,

the committees will
miss the submission deadline. The delay will cascade and impede the
passage of the bill at both chambers of the national assembly and
finally, the implementation of the budget.

Stay off Campaigns

At the villa,
official and informal activities had gone into a lull as all attention
shifted outside to the campaign tours. Meanwhile, last week, the
Federal Executive Council (FEC) meeting which usually lasts at least
two hours when there are just a few memos, lasted for only 20 minutes,
with one memo discussed.

At the FEC meeting, the president warned ministers not to allow the
campaign to get in the way of their jobs. He had advised that they
attend the campaign rallies in their states and two or three other
states rather than scurrying to join the campaign trail to every state.

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Olurin starts Ogun governorship campaign in Ilaro

Olurin starts Ogun governorship campaign in Ilaro

The governorship
candidate for People’s Democratic Party (PDP) in Ogun State, Tunji
Olurin yesterday started his campaign for the race from Ilaro, Mr
Olurin, accompanied by his running mate, Tunde Oladunjoye, said his
coming into the race is to rescue the state from the hands of those he
alleged to be maltreating the citizens.

“I have been a
governor before, I know where I am coming from and I know where I am
going. I have a name to protect. I have no intention to steal
government money, we shall use government money judiciously,” he said.
“I am not going to be a sectional governor. All the zones of the state
have equally agreed to support us. So, let us all be united and cast
your votes for us. We must be brave in this struggle. For me, I am as
constant as the Northern star. There is no shaking, no going back, we
are going to stand firm.”

Protest rally

While the rally was
going on in Ilaro, the Gbenga Daniel faction of the party took to the
streets of Abeokuta, the state capital to protest the exclusion of the
names of their candidates from the list published by the Independent
National Electoral Commission (INEC). The protesters, who carried
various placards rebuking former president, Olusegun Obasanjo, also
threatened to embark on spiritual exercise until their ‘stolen mandate’
was reclaimed and vowed to upstage Mr Olurin and Iyabo Obasanjo-Bello,
daughter of former president Olusegun Obasanjo, at the polls.

Leading the
protesters, factional chairman of the party, Joju Fadairo, dispelled
the rumour that the faction was planning to defect to another party.

“The rally is to
show that we are still in PDP and that our exco is still the authentic
leaders of the party. We are not going anywhere as they had wanted us
to do. We will not succumb to any clandestine move to frustrate us out
of the party,” Mr Fadairo said.

Similarly, Gboyega
Isiaka, the party’s governorship candidate from the Gbenga Daniel group
said, “We will use every legal means to fight to redeem our mandate. I
want to assure you that justice, equity and even God are on our side.
Justice may be delayed, it will surely not be denied,” he said. “The
rally is to show that we are still in PDP and that our executives are
still the authentic leaders of the party.”

It could be recalled that two parallel primaries were conducted in
Ogun State during the PDP primaries in the state. An Abuja High court
had ordered INEC to recognise the list of candidates sent to it by the
Jibrin Martins-Kuye faction of the PDP. Effort by Mr Daniel’s faction
of the party to upturn the ruling was denied by a Federal High court
sitting in Abeokuta. This ruling made INEC to reject the list sent to
it by Mr Daniel’s faction.

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Ribadu still undecided on presidential running mate

Ribadu still undecided on presidential running mate

The Action Congress of Nigeria (ACN)
begins its national electioneering campaign today with a colloquium at
the ThisDay Dome, Abuja. The party’s standard bearer, Nuhu Ribadu,
yesterday said that he is still in consultation over who becomes his
running mate for the April 2011 general elections. He said that since
the party still has up to February 21 to submit names, the nomination
of a presidential running mate is a non-issue for now.

Mr. Ribadu, who spoke yesterday through
Ibrahim Modibbo, his director, media and communications, in a telephone
interview with NEXT, also confirmed that the colloquium was an
indication that the campaign had started in earnest.

“The issue of deputy does not come up
now because that is not a problem. We still have up to 21st of February
to submit the name, so, we are still consulting,” he responded.

Former governor of Anambra State, Chris
Ngige, and former minister of finance under president Olusegun
Obasanjo, Ngozi Okonjo-Iweala, are two possible candidates that Mr.
Ribadu is rumoured to be looking at.

Party manifesto

Mr. Ribadu explained that today’s
colloquium is to bring out the party’s manifesto to Nigerians. “It is
symbolic because we are starting in an academic manner unlike the PDP,”
he said.

The ACN’s national secretary, Lawal
Shuaib, did not answer his phone and did not respond to a text message
sent to him on the issue. Meanwhile, the ACN in a release over the
weekend, by its national publicity secretary, Lai Mohammed, said the
party chose to start its electioneering campaign for April’s poll with
a colloquium to unveil the party’s manifesto and agenda for Nigeria.
The topics to be discussed, according to the statement, include issues
of governance, human rights, youth development, energy, managing a
democratic government, regulatory functions of INEC, the Electoral Act
2010 as well as water and sanitation.

“These manifesto and agenda encompass our contract with Nigerians.
Therefore, we intend to use the colloquium not only to present our
programme but also to ensure that Nigerians own the programme,” it read.

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Group gives recipe for credible elections

Group gives recipe for credible elections

The Transition
Monitoring Group (TMG) says only Nigerians and not the Independent
National Electoral Commission (INEC) can make the forthcoming general
elections credible. It said that the only way Nigerians could make the
elections credible is by defending their votes after voting in the
elections, adding that INEC can only provide polling centres and
materials for voting.

The election
monitoring group stated this in a statement jointly signed by its
national coordinator, Mashood Erubami and publicity secretary, Musa
Rasfanjani in Abuja on Tuesday.

“The present INEC
chairperson has used every opportunity to inform Nigerians not to
expect perfect election from its organization, but to see the
achievement of credible election as a collective task of the citizens
and all stakeholders in the electoral process,” the statement said.
“This is not to say that the body is not prepared to conduct credible
election, but it is a call on the electorate to be vigilant, to
register, vote and be ready to defend their votes.” The group notes
that “credible election is beyond mere filling up of the electorate,
but includes the ability to be able to express their trust in the
preferred candidates at the poll.”

Explaining the
constitutional role of the electoral agency, the statement read that
“the function of INEC as stipulated in the electoral act is to conduct
voter and civic education, promote knowledge of sound election
democratic election processes and conduct any referendum required to be
conducted pursuant to the provision of the 1999 constitution or any
other law or Act of the National Assembly. In this regard, INEC is
expected to provide polling centres and materials for voting to be
managed by assigned presiding officers.”

There, TMG opined
that “voting and ensuring that voters exercise their voting rights, to
chose from available alternative candidates and defending the voting
process are beyond what the INEC can do during elections” therefore the
group warned Nigerians that “it is the people and not INEC that would
make election credible.”

It called on the
electorate who have taken the pain to register in the just concluded
registration exercise to troop out en masse to cast their vote during
the coming 2011 election and standby to defend the votes and remain
vigilant throughout the whole process.”

The group argued
that “where election have consistently been conducted to the
satisfaction of the majority, where results have been disagrees or
disputed, where INEC has been distrusted, where politicians have not
played by the rules or where security agencies have been known to be
partisan, citizens vigilance and assumption of their historical duties
to defend their votes, have been the most potent mechanism by which
their genuine electoral aspiration can be voiced.”

TMG noted that in
order for Nigerians to vote and ensure that their votes count and
resist being victims of the consequences of bad and unfair elections,
they must wake up from their slumber, to exhibit better understanding
of their roles in the polls and become a good part of the solution to
unfair election without integrity in the country.

“Only a well conducted election under the watchful eyes of the
voters can guarantee peace and ensure leadership legitimacy that can
remove for all times, the incidence of underdevelopment with its
accompanying vices like unemployment, poverty, insecurity, violence and
political assassination,” it stated.

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Infighting delays Buhari’s campaign tours

Infighting delays Buhari’s campaign tours

The Congress for
Progressive Change (CPC) is yet to begin its nationwide campaign
because of the urgent need to resolve the controversy trailing the
submission of candidates.

The Party’s
spokesman, Rotimi Fashakin who disclosed this to our correspondent in
Abuja yesterday, said there are issues arising from the substitution of
candidates after the submission of the list to the Independent National
Electoral Commission (INEC).

Controversies have
been trailing the substitution of the names of the party’s
gubernatorial candidates in Kano, Katsina, Enugu and other states.

According to him,
“we have issues arising from the list of candidates and substitution of
candidates, that is why we are yet to commence our campaign,” Mr
Fasahakin said in a telephone interview yesterday. “But now that the
deadline for the submission and replacement of names has expired, we
will soon start our campaign in earnest.”

Trusted hands

Mr Fashakin said
the national leadership of the CPC is already in the process of
constituting the presidential campaign committee to handle the
nationwide campaign of its presidential candidate, Muhammadu Buhari.

He also hinted that
Sule Hamma may head the campaign organisation. Mr Hamma served as the
Director General of The Buhari Campaign Organisation in 2007.

A trusted ally of
the former head of state, Mr Hamma is at present the deputy chairman of
the CPC Board of Trustees. He served as the Secretary to the old Kano
State Government under the late Abubakar Rimi between 1979 and 1983 and
later moved to the Presidency during the military administration of the
late Sani Abacha.

Working committee

Meanwhile, the
national working committee (NWC) of the All Nigeria People’s Party
(ANPP) will meet today over the constitution of its presidential
campaign committee.

A source in the
party told NEXT yesterday that the nominees into the committee to
handle the campaign of the party’s presidential candidate, Ibrahim
Shekarau may be made known to the public.

As at last week,
the opposition party was said to have been in a dilemma over the
constitution of the presidential campaign organisation following Mr
Shekarau’s inability to send in names of his nominees to the national
secretariat.

When contacted
yesterday, the ANPP spokesman, Emmanuel Eneukwu said the leadership of
the party is still in the process of setting up the campaign committee.
He refused to confirm today’s meeting of the NWC.

“We’re still in the
process of setting it up, that is all I can say. Please, be patient
with us because there are many things to consider in setting up such
committees. We want to get it right,” Mr Eneukwu told NEXT in a
telephone chat in Abuja.

Also speaking with
NEXT, the vice presidential candidate of the ANPP, John Odigie-Oyegun
said the party will constitute the campaign organisation in the next
few days.

Mr Odigie-Oyegun, however, said that he and the presidential candidate have been campaigning on their own for the past one week.

According to him,
they have been to some South Eastern parts of the country where they
met with supporters and also opened campaign offices.

The ANPP vice
presidential candidate said Nigerians should not expect the ANPP to
conduct a similar campaign to that of the PDP because it does not have
the kind of resources available to the ruling party.

The ruling PDP had
on Monday organised committees for its campaign funding, with twelve
top Nigerian businessmen, including billionaires Aliko Dangote, Femi
Otedola and Mike Adenuga, to raise funds to support President Goodluck
Jonathan’s presidential campaign.

Others in this
Committee are: Tony Elumelu, former chairman of the United Bank for
Africa; Jimoh Ibrahim, chairman of NICON Insurance; Emeka Offor, Kashim
Bukar, Sayyu Dantata, Jim Ovia, Dahiru Manga,

Abdulsamad Rabiu and Kola Salako.

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Egyptian delegation confirm participation in Africa movie awards

Egyptian delegation confirm participation in Africa movie awards

Egypt is to send a
20-man delegation to the 2011 Africa Movie Academy Awards, following
the success of Egyptian movie, ‘Hanayns Shoe’ which won the Best
Animation prize at the 2010 awards ceremony.

The 2011 AMAA holds
on March 26 at Gloryland Cultural Centre, Yenagoa, Bayelsa State.
Traditionally held in April, this year’s AMAA is happening in March
because of the forthcoming April polls. A nomination night and concert
in Nairobi, Kenya on February 25 and 26 will however precede the awards
night.

Speaking during an
interactive session, the chief executive officer of AMAA, Peace
Anyiam-Osigwe, disclosed that Egypt’s participation will strengthen the
relationship between Nigerian filmmakers and their counterparts in
North Africa. Amongst others, filmmakers Mahmood Ali-Balogun and Victor
Okhai have at various times served on the jury of the Cairo
International Film Festival.

Anyiam-Osigwe added
that, Egypt’s participation will also stress the importance of the
awards to other North African countries and make them realise it’s for
the whole of Africa and not just parts of the continent.

On the judging of
entries, Anyiam-Osigwe disclosed that organisers “put a lot of effort
into trying to make the AMAA one of the most transparent” out there.
She added that winning an AMAA gong is a lifeline to the international
film circuit.

The filmmaker who
equated the AMAA to the BAFTAS and Oscars in the United Kingdom and
United States however decried the apathy of corporate Nigeria to the
awards. She canvassed both public and private support for the awards
and filmmaking in Nigeria.

Home grown brand

Anyiam-Osigwe who
further described AMAA as a home grown brand that projects Nigeria
positively across the world, noted that once government supports the
awards, corporate Nigeria will follow suit.

Citing the example
of Ghana where winners of AMAA awards are hosted by the country’s
president, Anyiam-Osigwe noted that it is time the Nigerian government
did the same. She added that similar initiatives get heavy corporate
support in South Africa. She however commended the United Bank for
Africa (UBA) which supported AMAA for three years. She disclosed that
the bank will still play a role in the nomination night holding in
Kenya.

The filmmaker who premiered her TV series, ‘GRA Women’ last year
also advised her colleagues to take their art more seriously and
improve on it to get public and private support. She said, “If we take
ourselves seriously, government and corporate Nigeria will take us
seriously.”

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