Archive for nigeriang

Ondo plans soil improvement for cocoa

Ondo plans soil improvement for cocoa

The Ondo State
government is to carry out soil treatment on 500 hectares of land for
the planting of the Ghana high-yield cocoa at Oda Plantation in Akure.

The state
commissioner for agriculture, Julius Akinnigbagbe, told the News Agency
of Nigeria (NAN) on Tuesday in Akure that the government would also
train farmers on the production of the cocoa type. He said the
treatment would allow the government to establish the suitability of
the soil for the cocoa specie.

“We have already carried out some experimental plantation at Oda
farm but we still want to establish the suitability of our environment
and land for mass production of the cocoa here,” Mr. Akinnigbagbe said.

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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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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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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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Energy disruptions shut Ivorien cocoa facilities

Energy disruptions shut Ivorien cocoa facilities

Disruptions to
energy supplies have forced some cocoa processing facilities in Ivory
Coast to shut temporarily and shipping services have halted, inhibiting
cocoa exports and wheat and rice imports, two trade bodies said.

The Federation of
Cocoa Commerce and the European Cocoa Association said in a joint
statement on Tuesday that they had observed not only a massive
displacement of people, but also an increase in cocoa smuggling across
neighbouring borders.

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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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Lawmaker’s criticise attack on Jonathan’s convoy

Lawmaker’s criticise attack on Jonathan’s convoy

Lawmakers in
Nasarawa State have thrown out a motion by a member, Lagi Innocent
(Labour Party, Wamba) for members to unanimously condemn the use of
live ammunition on citizens of the state during the protest that
trailed the presidential rally of the PDP in Lafia, the state capital,
last week.

Some people were killed when security agents opened fire on demonstrators who pelted the PDP campaign team with stones.

Mr Lagi moved
his motion to counter an earlier one moved by Mohammed Onawo (Doma
North, PDP) who sought a resolution of the House to condemn the attack
on President Goodluck Jonathan when he flagged off his North-Central
zonal campaign rally in Lafia.

Majority of the
members supported Mr Onawo’s motion and the Speaker, Musa Ahmed
Mohammed said the House resolution should be sent to the state
governor, Aliyu Akwe Doma for him to deliver the message to the
presidency.

But Mr Lagi
stood up, insisting that the issue at stake was the use of bullets on
Nigerians by the police and soldiers when some supporters of the CPC
governorship candidate, Umaru Tanko Al-Makura poured onto the streets
last Wednesday to protest the arrest of Al-Makura by security agents.

Waste of life

But the labour
lawmaker, in his submission before the house, said it is condemnable
that armed security men should use life bullets on Nigerian citizens
who came out to protest the fall out of the attack on the president.

But his plea was rejected by members, who rather condemned his motion.

Mr Onawo later said yesterday on phone that he was undeterred by the response of his colleagues.

“Yes, I stood up to condemn the action of armed security men who
shot the kids on Lafia streets. If protesters threw stones and sachet
water, why would they come back with life bullets and kill? It means
they came back in retaliation. It is condemnable,” he said.

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Iran lawmakers urge death for opposition leaders

Iran lawmakers urge death for opposition leaders

Iranian lawmakers
called for the death penalty on Tuesday for opposition leaders they
accused of fomenting unrest after a rally in which a least one person
was killed and dozens were wounded, state media said.

Clashes broke out
between security forces and protesters when thousands rallied in
sympathy for popular uprisings in Egypt and Tunisia on Monday. They
revived mass protests that shook Iran after a presidential vote in 2009.

“(Opposition
leaders) Mehdi Karroubi and Mirhossein Mousavi are corrupts on earth
and should be tried,” the official IRNA news agency quoted members of
parliament as saying in a statement. The statement was signed by 222
lawmakers out of 290. Being “corrupt on earth” is a charge which has
been levelled at political dissidents in the past. It is a capital
offence.

Iranian authorities
have repeatedly accused opposition leaders of being part of a Western
plot to overthrow the Islamic system. The claim has been denied by
Mousavi and Karroubi, who were prevented from attending Monday’s Tehran
demonstration. Parliament speaker Ali Larijani also accused the United
States and its allies of providing support to the opposition following
uprisings in Tunisia and Egypt, both Western allies. “The main aim of
Americans was to simulate the recent events in the Middle East in Iran
to divert attention from those countries,” Larijani said, state radio
reported. However the protests seemed to be over on Tuesday and life in
the main cities was back to normal. But its leaders are wary of a
repeat of the kind of protests which shook Iran after a presidential
election in 2009. That was the biggest unrest since the 1979 Islamic
revolution. At least 20 pro-reform activists were arrested before
Monday’s marches, opposition websites said.

Iran’s top
authority Supreme Leader Ayatollah Ali Khamenei has called the
uprisings in Egypt and Tunisia against secular, Western-allied rulers
an “Islamic awakening,” akin to the revolution that overthrew the
U.S.-backed shah in Iran. But the opposition says they mirror their own
protests after the re-election in June 2009 of President Mahmoud
Ahmadinejad.

Protesters resume in Bahrain

Thousands of
Shi’ite protesters marched into the capital of Bahrain on Tuesday after
a man was killed in clashes between police and mourners at a funeral
for a demonstrator shot dead at an earlier anti-government rally.

The killing, a day after a “Day of Rage” of protests on Monday,

raised the prospect
of further clashes between Bahrain’s majority Shi’ite Muslims and the
Sunni security forces backed by the ruling Al Khalifa dynasty.
Bahrain’s main Shi’ite opposition bloc Wefaq, which accuses the ruler
of discriminating and neglecting Shi’ites, responded to the violence by
boycotting parliament.

Enraged mourners
chanted anti-government slogans inspired by protests that toppled the
rulers of Egypt and Tunisia. “The people demand the fall of the
regime!” protesters chanted.

Thousands poured
into Pearl Roundabout in Manama’s city centre, having marched from the
funeral on the outskirts of Manama. Witnesses said the funeral clashes
broke out when around 2,000 people set out from hospital to escort the
body of slain protester Ali Mushaima through the alleys of Shi’ite
villages towards his home, where his body was to be washed before
burial. Diplomats say Bahrain’s protests may gauge whether a larger
Shi’ite base can be drawn to the streets to raise pressure for reforms
that would give them a greater voice and better economic prospects.

REUTERS

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Group condemns global attacks on journalists

Group condemns global attacks on journalists

The Committee to
Protect Journalists (CPJ) has said that global and regional
institutions saddled with the responsibility to guard press freedom are
largely failing to fulfil their mandate as journalists worldwide
continue to face threats, imprisonment, intimidation, and killings.

According to the
annual survey of Attacks on the Press, the New York based organisation
yesterday stated that for 2010, institutions like the United Nations,
the African Union, the Organisation of American States, and the
Organisation for Security and Cooperation in Europe, among others are
inconsistent in their approach to defending press freedom. The report
surveyed the media conditions in more than 100 countries and revealed
that 44 journalists were killed and 145 imprisoned in the year in
review.

“The recent
unprecedented repression and persecution of journalists in Egypt, for
example, provides an important opportunity for global and regional
institutions to speak and act forcefully in defence of a free press”
said the survey.

The group further
noted that while international laws, which these institutions are all
signatory to, guarantees the right to free expression “journalists
cannot count on a robust defence of those rights,” said CPJ executive
director Joel Simon. He explained that “while valiant special
rapporteurs at various institutions battle anti-media violence, their
effort are stymied by a halting political will to guarantee press
freedom.” “ A breakdown of assault on journalists on regional trends as
identified by CPJ revealed that a rise in investigative journalism in
Sub-Sahara Africa has led governments in the region to crack down on
journalists, particularly those reporting on the provision of basic
services and the use of public money. “From Cameroon to South Africa,
authorities are moving aggressively to unmask confidential news
sources, criminalise possession of government documents, and retaliate
against probing journalists despite their pledges of transparency and
accountability due to the pressure from donor countries.”

CPJ also noted that
a rise in censorship is prevalent throughout Latin America, due to
government’s repression, judicial interference, and intimidation from
criminal groups. Adding that in some countries, a climate of impunity
perpetuates a cycle of violence and self-censorship. The group stated
that censorship in Asia takes many forms with a mixture of violence and
official repression. Democratic nations such as Thailand, the
Philippines, and Indonesia are reported to be incapable of reversing
the impunity with which journalists are being killed. The report
declared Pakistan as the world’s “deadliest country for journalists in
2010.” Despite Europe’s development, CPJ alleged that “newer and
subtler forms of censorship are taking hold across the region to
counter the rise of electronic journalism, particularly in Russia and
the former Soviet republics.” These include the targeted use of
technological attacks and the untraceable disabling of independent
media websites.

For the Middle East
and North Africa, CPJ stated that governments are conflating critical
coverage of counterterrorism with terrorism itself, claiming national
security grounds to suppress news and views considered unfavourable.

CPJ also noted that the physical violence employed in these
countries to harass and intimidate journalists working in traditional
media is now being extended to bloggers. It called on the institutions
to stand by their word and ensure the safety of members of the fourth
estate of the realm.

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Court orders electoral body to endorse three senators

Court orders electoral body to endorse three senators

A Federal High
Court sitting in Abuja has ordered the People’s Democratic Party (PDP)
and the Independent National Electoral Commission (INEC) to recognise
Grace Bent (PDP Adamawa State) and two other senators as the senatorial
candidates for their respective senatorial zones.

The court ordered
both PDP and INEC to delist Ahmed Hassan Barata from the list of
candidates and substitute it with that of the incumbent, Mrs Bent,
pending the determination of a suit filed by the incumbent.

Mr Barata, former
member of the House of Representatives was declared winner of the PDP
Adamawa south senatorial zone’s primaries and his name was subsequently
forwarded to INEC as the winner.

Mrs Bent went to
court on February 7, asking the court to order her recognition based on
alleged gross malpractice in the primary elections.

The court, headed
by Abdu Kafarati, ruled in her favour and two other incumbent senators:
Mohammed Mana (PDP Adamawa State) and Abubakar Umar Gada (PDP Sokoto
State).

The court asked
both INEC and PDP to withdraw Bindowo Jibrilla and Ibrahim Abdullahi
Gobir as senatorial candidates in the April polls and substitute them
with Mr Mana (PDP Adamawa State) and Mr Gada (PDP Sokoto State)
respectively.

Ready for appeal

The two other
senators had sued, separately, seeking for an interlocutory injunction
restraining the PDP and INEC from enlisting names other than themselves
as candidates of the party for their respective senatorial zones.

The court granted their injunctions and ruled in the same manner
restraining both INEC and PDP from recognising any candidates other
than the applicants while striking out the first respondents. The court
also granted the appeal for accelerated hearing and fixed February 21
for hearing of originating summons from the three senators.

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