Nigeria Content Online

Jasper Uche, the
Transition Committee Chairman of Umunneochi Local Government Area in
Abia state, said that the council will soon open a cashew processing
industry in the area.

He revealed this on
Sunday in Umunneochi, that the industry will be sited in Mbala
community.Mr Uche explained that the industry will utilise the abundant
but neglected cashew nuts at Mbala, as the area has the largest cashew
farm in Abia state.

He said the abundant cashew nuts have continued to waste away
because of the non-availablity of industries to process and preserve
it. The chairman said ‘‘we want to take the bull by the horn to check
the wastages of the resources of the people.’’

South Africa’s
trade account recorded a 10.3 billion rand surplus in December compared
with an 8.4 billion rand surplus in November, the South African Revenue
Service (SARS) said on Monday.

Exports increased
by 10.4 per cent month-on-month in December while imports fell by 15.9
per cent. SARS said the December surplus was “buoyed by higher
commodity exports, specifically iron ore, precious metals, and base
metals.”

Ten economists surveyed by Reuters expected the trade account to register a 2.75 billion rand surplus in December.

Dutch brewer,
Heineken NV, said on Monday it had halted production in Egypt as
tension rises in the country in the face of ongoing street protests
against the rule of President Hosni Mubarak.

A spokesman for the
company revealed that it is not immediately clear when production will
be resumed or what the financial impact will be from the production
halt. Heineken had earlier repatriated 29 Dutch nationals from Egypt.

“Regional volumes
and profitability will suffer from the situation, but the contribution
to the group is limited, also implying a limited impact on Heineken’s
bottom-line earnings,” SNS Securities said in a research note.

Uganda’s inflation
rate rose for a third consecutive month to 5.0 per cent in January from
3.1 per cent in December due to seasonal food shortages, the
government’s statistics agency said on Monday.

Food prices rose
3.6 per cent in the year to January 2011 compared with a decrease of
1.1 per cent recorded for the year to the end of December 2010, the
Uganda Bureau of Statistics (UBOS) said.

“During the month,
the food prices index increased by 3.4 per cent due to increases in
prices of matoke (green bananas), sweet potatoes, oranges, sweet
bananas, cabbage, green pepper, bbugga (leafy vegetable), onion, maize
flour…,” UBOS said.

“The increase in prices of these food items is primarily attributed to low supply to the market,” it added.

NIPCO Plc, the
marketing subsidiary of the Independent Petroleum Marketers Association
of Nigeria (IPMAN), will work with the Nigeria Liquefied Natural Gas
(NLNG) for the development of the local gas market. This laid to rest
the long standing disagreement over others using NIPCO’s Liquefied
Petroleum Gas (LPG) storage terminal for the storage and evacuation of
products.

Lawal Taofeek, the
corporate affairs manager, said last weekend that the company will soon
sign an agreement as one of the off-takers licenced to participate in
the NLNG programme to promote the supply and distribution of natural
gas in the country, having fulfilled all conditions set by the NLNG.

During the
familiarisation visit of the 4,500 metric tons per annum (MTPA)
capacity LPG storage terminal located in Apapa in Lagos, NLNG managing
director, Chima Ibeneche, told his NIPCO counterpart, Venkatapathy
Venkatraman, that the agreement would go a long way in enhancing the
Federal Government’s aspiration to encourage more Nigerians in using
gas for domestic purposes.

Abundant gas resources

“With the abundant
gas resources in this country, Nigeria is not supposed to be among the
committee of nations still using firewood for domestic cooking,
considering the attendant effect of such activity on deforestation as
well as negative impact on the environment. There is no plausible
excuse to support this arrangement,” Mr. Ibeneche said.

Though he explained
that NLNG’s original business model was not along the line of domestic
gas supply, as the company was charged LNG production for export, Mr.
Ibeneche said the company ventured into local supplies in 2007 in a bid
to promote gas as a cheaper alternative domestic fuel for Nigerian
homes.

He foresees an
improving local LPG supply market in the horizon with the involvement
of private entities like NIPCO, that have committed substantial
investments in developing the requisite infrastructure for the
industry, adding that the approval of the company as one of its of
off-takers would enhance the growth of the market.

Mr. Venkatraman
said the company went into the country’s domestic gas supply market in
response to the Federal Government invitation for genuine investors’
involvement in providing necessary infrastructure to facilitate the
development of the domestic gas market.

Apart for the
investment in the fully automated 4,500 MT capacity LPG terminal,
considered to be the second biggest in the country, Mr. Venkatraman
said NIPCO has also invested in transportation with the procurement of
over 20 bulk tankers to facilitate evacuation of gas to consumers
across the country.

He disclosed that
as part of its effort to make gas easily accessible to consumers, the
company is currently deploying LPG skids for the cooking needs of
Nigerian homes, and promoting LPG use as auto fuel. LPG Skid is the
latest technology in mini filling stations for dispensing gas to
households and vehicles.

Similarly, the
company, in conjunction with the Nigerian Gas Company (NGC), has opened
three Compressed Natural Gas (CNG) filling stations as well as a
fitment workshop in Benin, Edo State, as part of its vision to
revolutionalise CNG use as a vehicular fuel in the country.

The Nigerian
Content Development and Monitoring Board (NCDMB) yesterday said
European Union’s support to the implementation of the Nigerian Content
Act will encourage investors from their countries to set up oil and gas
facilities in Nigeria.

Ernest Nwapa, the
NCDMB executive secretary, said this at a forum organised by the
European Union (EU) in Abuja. He noted the long-standing economic
partnership between Nigeria and EU countries, urging that the same
spirit of collaboration be extended to Nigerian Content implementation.

“The Act was not
conceived to drive away foreigners from the Nigeria oil and gas
industry, rather to facilitate participation of Nigerians as well as
increase the quantum of industry expenditure retained in-country,” Mr.
Nwapa said.

“One of
government’s strategies for pursuing its job creation agenda is to
bring Nigerian jobs back home by progressively reducing the volume of
Nigerian goods and services being procured from abroad,” he further
said.

By encouraging the
establishment of shipping yards and facilities in Nigeria, Mr. Nwapa
said the implementation of the Act will create employment for
Nigerians, link the industry with the wider Nigerian economy, increase
the nation’s Gross Domestic Product (GDP), as well as provide continued
access to the oil fields, especially when indigenes of the oil
producing areas are integrated into industry mainstream.

‘It is working’

He claimed that the
guidelines have resulted in the development of in-country capacity for
the oil industry and local service industry patronage from a dismal
five per cent in 2004 to 35 last year.

The NCDMB scribe
expressed regrets that the limited capacity of the local service
industry has resulted in over 65 per cent of industry work scope still
being done abroad.

He told the meeting
attended by ambassadors of three EU member states and diplomats of six
others that the Board is currently working towards reversing this
negative trend by collaborating with operators to set up heavy
industries, pipe mills and equipment manufacturing facilities, in
addition to the development of dockyards, to increase the utilisation
of existing shipyards for marine vessels maintainance.

“The Board intends
to leverage on the Nigerian Content Development Fund to support genuine
investors interested in developing capabilities, acquiring equipment,
installing facilities and infrastructure required to bridge critical
capacity gaps in the industry, so as to ensure the domiciliation of
work and spend,” Mr. Nwapa declared.

He said the Board
is monitoring compliance level of international oil companies (IOCs)
and multinational service companies with the provisions of the Act, and
also deploying monitors to ensure compliance.

The secretary,
Petroleum Technology Association of Nigeria (PETAN), Emeka Ene, noted
that the growth of his members’ businesses was tied to the effective
implementation of the Act, though he expressed regrets that exclusivity
was accorded to Nigerian service companies for jobs in land and swamp
fields, noting that most of the firms are constrained by lack of
capacity which can be bridged by partnerships.

After
the one month extension given by the Central Bank for customers to
update their account, queues were still seen at banks yesterday as
people tried to meet the deadline.

Bank
customers hurried to get their accounts updated yesterday at some of
the banks visited. In December, the Central Bank directed banks to
carry out updates on customers profile in furtherance of its
‘Know-your-customer’ requirement. It added that customers who fail to
comply will no longer have access to their bank accounts.

Customers
at First Bank on Olowu Street, Ikeja were on queues at the banking hall
trying to get their accounts updated. Due to the slow movement of the
queues arising from the cumbersomeness of making photocopies of some of
the documents required, some customers could not hide their
frustration. They lamented that the bank’s protocol was too much as
other banks did not require some of the items they requested for.“They
are asking for many things,like utility bill, passport photographs and
other things. I have been to other banks and their protocol is not like
this, maybe that is why this queue is not moving” Kemi Adeyemi, a bank
customer said.

Danjuma,
one of the security officials said the queue has been increasing since
last week. “Today being the last day, the queue is worse” he said.

More hassles

Guaranty
Trust Bank at Opebi, Ikeja was not better as long queues can be seen ,
even distracting other banking activities. Customers who had other bank
transactions to do frowned at the lackadaisical attitude of the people
on the queues. Bank officials had to bring the forms to customers
outside the banking hall to fill in a bid to decongest.

This
was made worse by the breakdown of the bank’s internet server, which
resulted in the banking hall being jammed by customers that wanted to
update the data and those for withdrawal, deposits and other banking
transactions, as even the ATM services broke down. At the bank’s Broad
street branch, an official, Adeyosola Johnson appealed to customers to
exercise patience while the bank works on its systems. “Please, our
server is down. Bear with us while we work to get our systems to
function again in the next 30 minutes,” she pleaded.

Also,
at Intercontinental Bank, Broad Street, the queues were long as
customers made effort to comply. An official who declined to be
identified, said updates cannot be done by proxy as only the account
holders’ signature will suffice.However, at some bank branches, it was
business as usual,Zenith Bank branch at Olowu, Ikeja had its operations
running smoothly without the hustling of people who wanted to update
their accounts.“There is no queue. If you want to update your account,
all you need is your valid Identity card and then you fill the form”
the customer care service official said.

The Central Bank said the customer data update is to enhance the
know-your-customer (KYC) requirement and also to check money laundering
and illicit funds in the system. It also said the deadline will not be
extended.

Ten stockbroking
firms out of the suspended 65 at the Nigerian Stock Exchange (NSE) have
met the N70 million minimum capital base requirements stipulated by the
Securities and Exchange Commission (SEC), the market regulator.

While 61 of the
suspended dealing member firms were suspended for inadequate
shareholders fund in their 2009 audited accounts, five others were
sanctioned for inadequate shareholders fund in their 2010 audited
accounts.

The NSE, in its
updated list of the affected companies, posted on its website on
Monday, two weeks after the sanction, noted that BGL Securities,
Intercontinental Securities, Cowry Asset Management, DBSL Securities,
and De-lords Securities have complied. The other five firms are
Peninsula Asset Management & Investment Company, Valmon Securities,
First Inland Securities & Asset Management, Independent Securities
and Vetiva Securities.

Wale Oluwo,
managing director of BGL Securities, one of the companies that just met
the requirement, said the suspension “almost had negative effective” on
the company while it hurriedly had to raise the new capital base.

Meanwhile, a
stockbroker whose company was not affected, David Adonri, chief
executive officer of Lambert Trust and Securities Company Limited, had
said that with the new capitalisation, “Nigerian stockbrokerages would
probably be the highest in the world.”

“In India, the
fourth largest economy, the maximum capital for stockbroking firm is
equivalent to N2 million. The initial N20 million required in Nigeria
is even over capitalisation,” Mr. Adonri said.

Meanwhile, the NSE had assured investors who are clients of the suspended stockbroking firms of the safety of their investments.

Emmanuel Ikazoboh,
the interim administrator of the Exchange, said, “A circular (was
issued) to remind all suspended dealing members firms of their duty to
instruct and appoint another stockbroker to carry out the mandate they
had gotten from their clients prior to their suspension.”

Mr. Ikazoboh said
the circular was in line with the Article 57 (d) of the ‘Rules and
Regulations Governing Dealing Members’ which provides that “the dealing
member shall be under a duty to instruct and appoint another dealing
member to carry out any instructions already received by it on behalf
of its clients prior to suspension and shall immediately notify the
Exchange in writing of such appointment.”

He, however, said most of the affected firms have complied with the directive.

Mr. Ikazoboh urged
the affected companies to “ensure that its innocent clients do not
suffer any loss or embarrassment as a result of the suspension.”

“The Exchange would not tolerate any complaint received against any
dealing member firm for failing to carry out instruction received by
the firm prior to the suspension,” he said.

Nigeria’s $500 million debut Eurobond
was yesterday admitted to trading at the London Stock Exchange’s (LSE)
Main Market. The bond, which was 2.5 times subscribed, netting $1.25
billion, offers an annual interest rate of 6.75 per cent, and matures
in January 2021.

A statement by the LSE said the
offering creates a benchmark US Dollar bond yield curve that should
lead to lower borrowing rates for Nigerian companies issuing corporate
bonds in the domestic and international markets.

“Cheaper and easy to access debt finance is fundamental to the growth prospects of Nigerian companies,” the statement added.

Ibukun Adebayo, head of Business
Development – Africa, at London Stock Exchange Group, said the choice
of London as the market to issue its first sovereign debt is the
beginning of the next phase in the development of the Nigerian
corporate bond market.

“The fact that London was selected for
such a significant transaction reflects the city’s status as the
world’s most international financial centre, with the knowledge and
expertise to successfully price a brand new sovereign bond,” Mr.
Adebayo said.

Investors from 18 countries spanning
Europe, the United States, Asia, and Africa took up the offer, which
opened and closed on January 21, finance minister, Olusegun Aganga,
said.

“Investors are impressed by Nigeria’s
credit story and were very keen to participate in the offering. More
remarkable is the exceptional quality and diversity of investors from
18 countries spanning Europe, the US, Asia and Africa,” Mr. Aganga
said, after the close of the book.

He added that Nigerian corporate scene
can now more easily access well-priced long term financing from the
international capital markets to fund economic opportunities such as
infrastructural development.

“We now have a transparent and internationally observable benchmark
against which international investors can accurately price risk. My
expectation is for an increase in capital inflows and FDI (foreign
direct investment) into the economy,” he added.