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Shekarau sells presidential agenda to Nigerians

Shekarau sells presidential agenda to Nigerians

One single issue,
which revolves around social justice, is most likely going to be the
selling point of the ANPP presidential candidate, Ibrahim Shekarau who
is one of several candidates seeking to upstage President Goodluck
Jonathan in the April polls. Mr. Shekarau, who enacted an upset in Kano
politics by defeating the then PDP incumbent governor, Rabiu Musa
Kwankwaso in the 2003 elections, has claimed to have promoted human
development during his eight years as governor.

Mr. Shekarau, who
was received by thousands of his supporters at the Malam Aminu Kano
International Airport after he emerged the ANPP presidential
flagbearer, said social justice is synonymous with employment
generation, protection of lives and properties, educational
opportunities, access to basic infrastructure like water, roads,
hospitals, housing and poverty alleviation.

It is an
interesting aspect of Kano politics that Mr Shekarau, who is enjoying
his second term in office, still enjoys mass appeal. On his return to
Kano after winning the ANPP presidential ticket, he moved round the
ancient city with his convoy, amidst cheers from residents of the city.

One Uche Moses, who
joined the convoy of Shekarau as it traversed the Kano metropolis, said
he supported the choice of Mr Shekarau by the ANPP. “Yes, I believe in
Shekarau, he is the leader we need because he has made Kano a home for
us.

Nobody is telling
me I am a stranger here because I come from the east. There is less of
crime here, no religious riots anymore. I wish Nigeria is like this.”

Chris Azuka,
special adviser on inter-community relation to the state government,
said Nigerians deserved a large-hearted person like Shekarau at the
helm of affairs.

“I want Nigerians
to use this opportunity in the forthcoming election to vote for a
leader that will liberate this country from the shackles of bad
leadership and that person is Shekarau,” he said. “You can see for
yourself what he has done that has translated into the relative peace
we are enjoying in Kano today. Even the appointment of non-indigenes in
his administration is a testimony to the fact that this man is a true
Nigerian.”

Mr. Shekarau has
said his campaign will revolve around promoting social justice in the
country. A sociologist, Samaila Yusuf, said this is a worthy agenda to
elicit the support of Nigerians.

“Social justice is
an integral part of governance, and if you look at it from the law of
social contract perspective, it is a principle that guarantees balance
of power and participation between the haves and the have not,” he said.

“It also
contributes to sustainable democracy because it allows for freedom of
speech and fundamental human rights. It creates openness and
transparency and includes Malam Aminu Kano’s theory of providing safety
nets for all.” Kabiru Gwangwazo, who is a governorship aspirant of the
opposition Congress for Progressive Change (CPC), however said it is
too early to talk about social justice at a period when corruption has
eaten deep into the fabric of the Nigerian society. Mr. Gwangwazo
thereby admonished Shekarau to drop his candidacy and join former
military ruler who is also the presidential candidate of the CPC,
Muhammadu Buhari in the struggle to wrest power from the PDP.

“He should reach
and work with him if he is serious about social justice, what we
required now in Nigeria is fighting corruption and Buhari remains the
person to do that,” he said. “The most important thing is survival, and
corruption is bane of our development.” Nevertheless, this may have
explained the governor’s resolve to play up the issue of social justice
in his acceptance speech at the Eagle Square in Abuja last weekend.

Royal support

Mr. Shekarau, who
accused the PDP administration of failing to live up to the
expectations of Nigerians, assured that he would usher in an era of
prosperity and progress if elected president of Nigeria this year.

He said: “Today,
our country is looking for a leader who would restore integrity, rule
of law and the confidence of Nigerians in the governance of their
country; who could fulfill promises in power supply, food production;
pay special attention to education, implement and deepen governance
reform to squeeze out corruption and raise high the stake of committing
crime, attract investment and commit a robust transparent financial
services industry, and facilitate steady progress everywhere across
this blessed country. On this day and from this place,

I, Ibrahim Shekarau
pledge to fellow Nigerians, that I shall focus my attention to all the
above if you vote me the President of the Federal Republic of Nigeria.”
The Emir of Kano, Ado Bayero who is championing Shekarau’s societal
reorientation programme in Kano, joined scores of notable personalities
that has so far endorsed the Shekarau presidency project.

The Emir, who spoke
after Mr Shekarau was driven round the metropolis, said his performance
as governor of Kano is enough to sell him to the electorates. He
particularly praised the societal re-orientation programme of the
government as something other states should emulate.

Mr Shekarau, a
retired school principal before he became governor, has always touted
his support for education. Thus, some of his earliest supporters were a
group of retired educationists and school principals from across
Nigeria. He also got support from another group of elder statesmen led
by a retired Supreme Court Justice, Mamman Nasir.

To win the
presidency, Mr Shekarau will have to appeal to voters outside the ANPP.
Even in Kano, he has to cope with a resurgent PDP and a newish CPC
which is growing in strength. Kawu Inuwa Gurjiya, the campaign
coordinator for the Obasanjo/Atiku presidential race in 2003, said he
was underwhelmed with Mr. Shekarau’s presidential ambition. Mr Gurjiya
said the governor had nothing to offer the country because he couldn’t
do anything with the opportunity he had currently to better the lot of
the people of Kano.

“There is nothing this man Shekarau can do because we have been able
to assess him in the last eight years,” he said. “He has failed as a
governor, talk less of overseeing the affair of this country. I urge
Nigerians to disregard this campaign of social justice and vote for
PDP, which is the only party capable of delivering the much needed
services to the people.” Mr Shekarau will have to sell his social
justice agenda if he has any hopes of proving people like Mr Gurjiya
wrong.

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HABIBA’S HABITAT: Playing to our strengths

HABIBA’S HABITAT: Playing to our strengths

We are told that successful people and successful nations play
to their strengths.

They analyse what they are good at, what resources they have,
where they can add value and direct their efforts and energy in that direction.

When they make careers out of what they are good at and what
they enjoy, they are likely to be successful and happy doing that. They are likely
to relocate to the most suitable place to run that business or offer that
service; and by their cumulative or combined efforts, the industry thrives.

I was conversing with an architect friend just last week,
enquiring about how profitable it is to make a living from architecture; and
remarking on how fortunate I believe architects are to make a living from their
passion, very much like artists, musicians and so on. The conversation turned
to ways of starting a second or parallel career to supplement one’s income. I
suggested playing to one’s strengths and building an income stream around it. I
asked him what his strengths were and how they had already assisted him in
making a success of his occupation. To my surprise, even though he was
passionate about design and architecture, he said he did not really know what
his strengths are.

He said that most of his peers don’t know what they are good at,
or what their strengths are. They just find work to earn money and put food on
the table and that is why there is so much job frustration and, basically, no
job satisfaction at all. What a revelation! How many of us know what our
strengths are, as they relate to our work and our occupation? For those of us
who do, how did we discover what our strengths are? Let’s take this to the
national level. I am quite sure that eight out of any 10 people I ask will know
what Indians are good at, or what the strengths of the Chinese are.

Ask what Nigerians are good at; what our strengths are; and what
we are known for. Other than the immediate negative responses such as 419 scams
and corruption, people would have to take a moment to think about it. On
reflection, they would say that Nigerians are enterprising, but how has that
translated into a national strength?

Our traders and markets are largely in the informal economy; and
Dangote alone cannot represent the spirit of enterprise in the nation. They
would say that we are excellent at problem-solving and coping, but has this
talent been directed by our policy makers to solving our national challenges?
They would say that we are known for our creativity. Yes, through individual
effort, writers such as Chinua Achebe and Wole Soyinka, musicians like Fela,
Asa, TuFace and so on have become internationally acclaimed. How are other creative
spirits nurtured and encouraged, other than through private avenues such Terra
Kulture and Nike’s Gallery. Our unappreciated museums full of valuable
artefacts have been left to deteriorate.

Diversity as strength

A wonderful trend is that you can study almost any subject you
can imagine.

Throughout your education, starting in primary school, the
teaching staff are talent-spotting, busy identifying latent or developing
skills, talents, passions, or potential. It is rare for a child to reach age 16
and not know what they are good at, both academically and vocationally and what
kinds of careers they can pursue.

Here, the majority graduate from school having passed their
exams, and that is all. The fortunate minority would have engaged in formal
music, arts, or sports programmes in private schools. Even those who were
award-winners in extra-curricular activities never imagined making a career out
of them and are actively discouraged from playing to their strengths by their
advisers.

We are known for being very intelligent and good at cramming
facts to pass exams. So, for many children, the subjects they get good grades
in are not subjects they have any interest in. What kind of career guidance do
school children get about how the subjects they take for SSCE will affect their
A’levels/JAMB and how their choice will affect their careers?

How can we know what our real strengths are? Without identifying
them, how can we, as a nation, harness our strengths? Natural resources are
just that, resources. Without people and functional systems to exploit and
benefit from them, they will not do us any good. To the contrary, we will be
left to live with all the disadvantages of extractive industries without
enjoying the beneficial effect they can have on a people, as we have seen in
the Middle East.

Let’s start at the beginning, with education and with the
children.

Help those around you in the workplace, who are square pegs in
round holes, to find square holes to thrive in. Employers should use
personality profiling to allocate their human capital where they can perform
the best on their own and as part of teams.

Oh yes, one of our strengths is our diversity. We haven’t yet figured out
how to play to it yet. All I have seen is pandering to different groups instead
of pulling the strengths of our diverse ethnicities to propel us into G20
status and achieve our Millenium Development Goals.

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Atiku is a businessman with a mind in politics, says Bisi Akande

Atiku is a businessman with a mind in politics, says Bisi Akande

The national chairman of the Action Congress of Nigeria, Adebisi
Akande, speaks on the party’s controversial consensus method of picking
its candidates, its chances on the national level and the choice of
Nuhu Ribadu as its presidential candidate.

The choice of Nuhu Ribadu as the consensus presidential candidate of the party

In August last
year, our party decided to migrate from using the old hands and
resolved to make use of the youth. That was why we encouraged the youth
to pick our forms for elections. We felt that the youth of this country
have been denied the opportunity to be in the forefront in the
political life. So we wanted them to be able to come forward and
showcase their stuff. So our party is determined to create opportunity
for the youth to partake in elections and governance. As a result of
this, we allocate enough space for the youth in our party. It is our
desire to see the youth operating while we are still alive and we are
trying to accomplice that. Therefore, because Ribadu falls within that
bracket, he was able to get our ticket for the presidential election. I
need to tell you that among the three persons that were presidential
aspirants on the platform of ACN, there was unanimous decision that
Ribadu should be the candidate. We thought there was going to be an
election by the delegates to elect one of the aspirants, but when the
three of them spoke, they came up with a decision that Ribadu should be
the candidate. So, none of the remaining two, Bafarawa and Malami is
aggrieved over Ribadu’s emergence.

The chances of an opposition party defeating the PDP at the national level

Honestly, we are
very optimistic that we can win the presidential election in the
forthcoming April poll. When we felt that our party may not be able to
do it alone, we are trying to form alliance with other parties of like
minds. We are discussing with CPC and ANPP and we hope that with such
people in those parties, can easily strengthen the opposition and
defeat the ruling Peoples’ Democratic Party. The discussion is really
progressing and I want Nigerians to be very assured that we are going
to chase the PDP out of the presidential villa in Abuja this year.

Conduct of the general election

Considering the
leadership of the INEC, I think one can say the election will be free
and fair but we are not sure of the role that the police will play yet.
The inspector general of police needs to come out with his agenda and
convince Nigerians on his own commitment to ensure free and fair
election.

Protests within ACN over imposition of candidates

We are in a
democracy. So, what do you mean by imposition? It is the same democracy
that is being practiced in England and Canada as well as India. The
style they are using there is the style ACN is using here. It is only
in America that they use primary election in choosing candidates. You
cannot tell me that the American democracy is superior to that of the
British. Such style practiced in America has the tendency of splitting
the party into pieces. The British democracy is the oldest in the world
and you cannot see political parties there conducting primary elections
before choosing their candidates. They do it by picking competent hands
that are trustworthy in the judgment of the party. So, we believe that
election under a democratic setting is when we are contesting with
other political party during polls. If election within our party is
what you are trying to describe as internal democracy, then we reject
such ideas. Nobody should accuse ACN of imposition because that is our
style.

Anyone that is not
comfortable with that should go and contest in another political party.
So if you see anyone carrying placard around, he is wasting his time.
We know the efforts we made before the party became what it is today
and where were they when we were making the efforts. It is when they
saw that the party was popular that they were attracted to it and we
don’t expect them to come and hijack the party because of their dirty
money. We don’t allow anyone to hijack our party and that is why we
take the decisions in the interest of the party.

Possible return of Atiku to the ACN camp

Atiku is a
businessman with a mind in politics. He thinks politics could be played
the way business can be managed. If he is not careful, he will soon
become a rolling stone that gathers no moss. The earlier he realizes
this, the better for him. However, if he wants to come back to ACN, he
is welcome. If Atiku comes back to our party, we will remind him, had
you know, you would not have gone back to PDP again. So, anybody can
join our party from their wards in their local governments and no one
can prevent them.

His long romance with politics

I will die in
politics. It is not possible for me to quit. Even when I become older
that I cannot move around again, my soul will keep playing politics.
Don’t forget that politics is ordained by God and it is through
politics that you will be able to help other people in the society to
be better. When you are in politics, you are an apostle of a kind. Oh!
I love politics very much. I’m not going to quit.

Salary of lawmakers and political office holders

The nation’s
constitution does not allow legislators to regulate their earnings and
emoluments, but it is a lawless act coming from sheer impunity which is
the major characteristic of the PDP government. As far as I’m
concerned, it is looting. My party does not support such a thing.
Instead of benefiting the generality of people of this country, they
are busy enriching themselves with public fund. That is what we call
self aggrandizement and it is naked stealing which is not acceptable to
our own political party. That is the reason why our party is striving
to make sure that those who will serve the public through our platform
must listen to the party leadership. We are trying to make sure that
those elected on our party’s platform don’t misbehave or steal. We are
making them to realize that the party is superior, irrespective of the
power that their offices give that after the elections. So, they must
listen to the party. That is why you see governance in Lagos and Edo,
because we don’t allow the governor to put themselves above the people.

Monitoring ACN lawmakers in the national assembly

It will be a little
bit difficult. We cannot give such instruction because it will provoke
crises within our party. Our representatives in the National Assembly
know our attitude on this matter and they know that we are not
comfortable as far as the issue of jumbo pay is concerned, but our
lawmakers are helpless. They are human beings and it may be difficult
for them not to take the money when their colleagues from other
political parties are collecting theirs. We can stop that aberration
when our party takes over the presidency through the next election. The
emolument for members of the national assembly would be fixed by using
what the labour wage and in consideration of the revenue that is
generated by the country.

PDP unhappiness with ACN of Osun

I don’t think the
judiciary did anything wrong by taking away the stolen mandate from the
election riggers and return it to the rightful owner, Aregbesola. When
the same judiciary gave it to PDP in Ogun and Oyo state, Omisore did
not complain. However, I don’t blame him. The young man is frustrated.
As you can see, he was very ambitious and his ambition just crashed.
So, he is overwhelmed by the development and he was saying rubbish
because he was confused. Choosing between Obasanjo and Tinubu Obasanjo
is confused, while Tinubu is a focused party manager. Tinubu has some
people he listens to while Obasanjo has nobody to fear.

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Bring on the excitement

Bring on the excitement

Last week’s episode
of Nigerian Idol featured the last group of ten of the Top Fifty.
Unlike the week before where there seemed to be a glut of talents, only
one person amongst this group managed to really deliver on the wow
factor.

Singing ‘Bleeding
Love’ by Leona Lewis, Toni gave a performance that could best be
described as stellar. She sang the song not only with a beautiful voice
but with right facial expressions and body movement, making it possible
for the audience to connect with the song and with the artist.
Hopefully, the votes would go in her favour and she would make it into
the Top Ten.

Speaking of stage
delivery, worthy of mention is Yetunde, who sang the up-tempo classic
‘Girls Wanna Have Fun’ by Cyndi Lauper. Backed by only a piano, she
still managed a dance routine that could best be described as
over-the-top. As this is a TV reality show, it might as well serve the
viewers well for her to move to the next stage as she is bound to
deliver on the theatrics and provide so much needed excitement to the
show.

For some obscure
reason, probably owing to production style or the quality of
contestants, the show has not been able to evoke as much excitement as
one is used to with other musical talent shows.

However, as it
moves to its final stage, here is hoping that there would not only be
an increase in the quality of performance from contestants but also
less of the scripting and more of spontaneity production-wise.

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Central Bank, accounting board tangle over provisioning

Central Bank, accounting board tangle over provisioning

The Central Bank of Nigeria (CBN) and Nigerian Accounting
Standards Board (NASB) are at loggerheads over general provisioning by banks
for their December 2010 results.

The crux of the dispute is based on whether the general
provisioning of banks should be observed for the banks’ 2010 results or
suspended due to the huge provisioning the banks have made in the last two
years.

General provisioning was one per cent of performing loans while
a two per cent controversy came up when the Central Bank released the first
revised version of the Prudential Guidelines, which the banks argued against
and was subsequently dropped in the final one.

Following the Central Bank special audit in 2009 and the
resultant spike in provisioning numbers across the banking sector, the Central
Bank made a request to the NASB Governing Council that general provisioning be
suspended for banks’ December 2009 results, which the Council approved.

In mid-2010, the Central Bank published revised Prudential
Guidelines, effective 1 July 2010, in which it outlined its plan to replace
general provisioning with dynamic provisioning, stating that it would issue
guidelines on general provisioning from time to time as a counter-cyclical
measure.

On Monday 10 January, the Central Bank sent a circular to banks
confirming that general provisioning would remain suspended for the December
2010 results.

However, the following day, NASB announced in a newspaper that
the suspension it granted was only for the December 2009 results, and that
banks must follow the accounting standards by making the required one per cent
general provisioning on performing loans, or risk administrative, civil or
criminal sanctions.

No war

NASB officials said on Monday that they would not comment
formally on the matter. A senior staff, however, said, “There is no
logger-heads; we are organisations that work together. They are members of our
board. Whatever it is we are doing, it’s not as if we want to fight and say no
to what they say.

“We know how we communicate. It is an accounting standard issue.
If for any reason the banks have an issue with that, they can come here and
consult with us; they usually do,” he said.

Mohammed Abdullahi, the Central Bank’s spokesperson, did not
respond to calls or texts to confirm if the issue has been resolved.

Meanwhile, finance experts say the Central Bank and the National
Accounting Standard Board should address the issue for industry clarity and
investment decisions, adding that the enforcement of the general provisions for
2010 will be negative for the banking sector.

“The successful enforcement by the NASB of general provisions
for 2010 will be negative for the banking sector, as we understand that all but
one international non-listed bank wrote back these provisions in their December
2009 results,” Renaissance Capital, an investment bank, said in a report issued
last Friday.

“This looks to be an impasse, but we feel there are two possible
scenarios that may arise: the stalemate remains for so long that the banks and
auditors will be at liberty to treat the accounts as they please, skewing them
towards compliance with the NASB,” while the second is that “The Central Bank
reaches an agreement with the NASB Governing Council on the issue following
which the NASB, which is the sole authority on accounting standards in Nigeria,
stands down.”

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Stockbrokers’ association appeal to Stock Exchange over suspension of members

Stockbrokers’ association appeal to Stock Exchange over suspension of members

The Association of Stockbroking Houses of Nigeria (ASHON) has
appealed to the management of the Nigerian Stock exchange (NSE) over the
suspension of its members.

The Exchange had on Tuesday suspended 60 stockbroking firms
following their refusal to meet the minimum capital base of N70 million
stipulated by the Securities and Exchange Commission (SEC), capital market
regulator.

Ola Yussuff, chairman of ASHON, said the Association is
appealing to the authority of the NSE to give more time to the suspended
stockbroking firms for them to recapitalise.

Mr. Yussuff, who is also the chief executive officer of Trust
Yield Securities Limited, a stockbroking firm that was not affected, said, “In
the interest of the market, we are asking for more time to begin the process.
Even if you ask people to go and recapitalize, they have to look for investors
within the same market. And we all know that investors right now have not
gained full confidence in the market because of past financial crisis. But now
that the market has started showing signs of rebound, let the Exchange give
more time so that investors’ confidence can be fully regained in the market and
affected stockbrokerage firms can also appeal to their investors to invest in
the companies.”

He said the suspended firms are in such situation today because
of the market crisis which started over two year ago and the provisioning which
some of them have been providing for. “So if investors’ monies have not been
lost in those years and we are just few months away from resolving market
crisis through government’s intervention in the banking sector which will also
help the market, why should recapitalisation for brokerages now be the issue?”
Mr. Yussuff said.

He said many brokerage companies have being managing the
situation even before the Asset Management Corporation of Nigeria (AMCON) was
formed and no investors’ funds were lost. “Now that we have an institution like
AMCON that is doing something; though it might not solve all the problems, but
if we all agree that AMCON is going to have positive effect, why don’t we allow
them to finish what they are doing in the next few months?” he added.

Mr. Yussuff said, “We are not saying what the authority is doing
is wrong because no matter the market, no company should operate on a negative
capital; you need to have a remedial plan.

What the association is saying is thank you to the NSE for been
compassionate up to this time, but it should only consider punishing those
affected brokerages when AMCON finish its process and the firms still cannot
survive the positive effect of AMCON.” ‘Highest in the world’ Another
stockbroker whose company was not affected, David Adonri, chief executive
officer of Lambert Trust and Securities Company Limited, said with the minimum
capital base of N70 million required by SEC, Nigerian stockbrokerages would
probably be the highest in the world.

Mr. Adonri said, “In India, the fourth largest economy, the
maximum capital for stockbroking firm is equivalent to N2 million. Some other
stock Exchanges even require less than that from stockbrokerages. So the
initial N20 million require in Nigeria is even over capitalisation.” He said
stockbrokers are still trying to make the Exchange understand that
stockbrokerages don’t even need such capitalisation to operate.

Meanwhile, Wole Tokede, spokesperson for the NSE, said though
the Exchange share the pains of the affected members, “as regulator we still
have to do our job by protecting investors’ interest.” Mr. Tokede said, “It is
painful.

It is not a situation to celebrate because it will affect
trading performance.

But the main thing is that investors’ interest should be
protected.” he said that although there is no specific deadline yet given for
the stockbroking firms to meet the capitalisation requirement, but there may be
one very soon.

He said, “Once the affected firms meet the capitalisation
requirement, we clear them immediately. I can confirm that the three companies
that met the requirement yesterday (Tuesday) were cleared today (Wednesday).”
For clients of the affected companies that may not meet the capitalisation
requirement, he said, “It is not a big deal. Clients can always change
brokerage houses.”

He however said investors should not panic because the NSE only
suspended the companies and has not revoked their licenses.

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Investors to be guaranteed by bond

Investors to be guaranteed by bond

Investors in the
transmission grid of the power sector may receive support from a bond
to be issued by the federal government to guarantee their investment.

Bart Nnaji, special adviser to the president on power and chairman of
the presidential task force on power (PTFP) who said this at the power
investors’ conference organised by the Bureau for Public Enterprises
(BPE) in Lagos said the fund would take care of any apprehension by
investors.

“For transmission,
there will be a decline in investment but that decline will not be as
significant as you may think. Federal government still has to continue
to make investment but there will be largely private public sector.
There should be a fund established to deal with this. A kind of PPP
Fund and there will be an investment company to handle it.”

He said government
is leaving no one in doubt about its determination to attract private
sector investment in the power sector. “Government has decided it wants
to solve the problem in one go by looking at the entire value chain
from fuel supply, generation, transmission and distribution.”

He explained that
the idea is to enhance efficiency across all segment of the power
sector. “Our goal is to cut out corruption areas because distribution
is the headquarters of corruption.”

Abimbola Agboluaje,
head media and communications of the task force, said government will
opt for the concessioning of the transmission grid instead of outright
privatisation. This is to ensure that investments in other sectors of
the power chain are complemented.

“If transmission
grid is not strong enough to evacuate all the power that will be
generated, it may just be a waste of money. So the transmission fund is
to ensure enough fund is available for investment in the transmission
aspect of the sector.” He said such an arrangement may be funded
through a bond issuance.

Bolanle Onagoruwa,
director general of the BPE said privatisation and liberalisation of
the power sector is a key component of the power sector reforms. She
said the Nigeria Electricity Liability Management Company has been set
up to manage stranded liabilities, pension liabilities and other
liabilities of the Power Holding Company (PHCN) “The BPE has also
incorporated the Nigerian Bulk electricity Trading Company which is
saddled with the responsibility of bulk procurement and sale of power
in the sector and thus alleviate the fears of prospective power
investors.”

She said government
is seeking investors in 11 distribution companies, four thermal
stations, and two hydro stations. “The privatisation of the power
utilities is unique and different from previous privatisation
programmes in the country in that it is driven by the need for
efficiency and investment rather than optimization of proceeds to
government.”

The 11 distribution
companies are located in Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, and
Port Harcourt, Jos, Kaduna, Kano, and Yola. The thermal power stations
are Ughelli Power Plc and Sapele Power Plc both in Delta State, Afam
Power Plc, in Rivers state and Geregu Power Plc in Kogi State, while
the hydro power companies, for which concessionaires are sought, are
Kainji Power Plc comprising power stations in Niger and Kwara States
and Shiroro Power Plc, also in Niger State.

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"It is about perception"

"It is about perception"

Interview with William Wallace on Nigeria’s $500 million
Eurobond issue: Excerpts:

We understand that the
bond has been over subscribed to the tune of about $1 billion despite the
gloomy picture painted by some of the investors you interviewed. What do you
think is responsible for this level of confidence?

Firstly there is a lot of investor interest in Africa generally,
given that some of the world’s fastest growing economies are on the continent,
which looks set to grow in coming years at double or more what the developed
world is. Then there is a lack of supply of African sovereign debt. Nigeria as
the second largest economy is obviously going to attract interest.

When weighing up the risks involved, some funds will look at the
country’s long term prospects, its huge natural resources, the size of the
market, and the dynamism of parts of the private sector. They might also take a
favourable view of recent banking and stock market reforms. A look at the
current macro-economic fundamentals does not look too worrying either, when
compared to some African peers.

Others, seemingly a minority, looked more closely at the
country’s deteriorating fiscal position, and worried about big unanswered
questions about how billions of dollars of windfall oil revenues have been
used. You would not normally, for example, expect foreign reserves to be going
down, and oil savings to be depleted, while debt levels are rising too, all in
a year when oil production has recovered and prices are soaring. These more
skeptical investors concluded, so they say, that the general direction of
economic management looks worrying and the risks are too high.

The finance minister says
big investment names from 18 different countries subscribed. We talked to four
major international funds who were put off but there may have been more.

You seem to be saying that some investors are prepared to
overlook some important indicators like macroeconomic management or in this
case mismanagement? Why would that be the case, surely risk assessment is part
of the whole process?

They may for example decide that any mismanagement is connected
to the election process, in other words is short term and decide that fiscal
prudence again will improve after April. Nigeria’s debt profile is still far
more favourable than it was a few years ago even if both domestic and external
debts have been on the rise again. They may also decide that even with
mismanagement, Nigeria’s oil revenues are such, with the price of oil rising,
that over the 10 year period the country will always be able to pay.

We understand that the
bonds are going at 7 % interest rate; do you think this is about right?

It is within the range of what investors and analysts expected.
Some of them suggested that worries about macro-economic management are
factored into the price.

And yet neighbouring
Ghana with no gas reserves, no oil reserves and a smaller population went to
the international market and got 6 percent, is it all about perception?

It is about perception and Ghana despite some real concerns
about a massive fiscal expansion in 2008 ahead of elections, is generally
perceived to be better run. But Ghana went to the market three years ago. It is
not sure that it would get the same price today.

The main aim of this fund
according to the finance minister is not primarily to raise funds but establish
a benchmark yield curve for the country. Do you think he will be pleased with
the outcome?

He seems pleased. The bond was oversold despite some of the
concerns we drew attention to in our story. It prices Nigerian debt at a level
which should facilitate corporate access to international markets. That was the
intention.

Would you consider this a
grand debut at the international market for Nigeria?

It certainly seems to have gone well from the government’s point
of view. I think it would have gone better still if there were fewer questions
about how government has been spending windfall oil revenues.

Is it just political
risks then that make this country a bit dicey or are there other factors?

Given the history of mismanagement of oil revenues, and
especially windfall revenues above the budgeted price of oil, I think there is
always a danger that Nigeria is going to squander the opportunity provided by
an oil boom, and then regret it later at times when oil prices fall. Questions
about the way the ECA has been used for most of the past four years show that
Nigeria has not yet solved this problem. The sovereign wealth fund that is
planned could maybe be an answer.

What is your honest
assessment of the Nigerian economy?

It could be doing so much better. There are so many dynamic
talented people in the country. But they are held back by infrastructure
constraints, and poor management of the resources the country has. Simply
providing power which so far every government has failed to do, could be
transformative.

William Wallace is the
Africa Editor, Financial Times

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Union Bank proscribes senior staff union

Union Bank proscribes senior staff union

Union Bank has announced the ban of its senior staff
association. This is the aftermath of the December 15, 2010 industrial action
which crippled operations nationwide for about three days.

The bank made this known in a terse press statement release
yesterday in Lagos captioned, ‘Withdrawal of recognition of Union Bank
Association of Senior Staff (UBASS), Association of Senior Staff of Banks,
Insurance and Financial Institutions (NLC Affiliate) (ASSBIFI).’

“Following the unlawful operations of UBASS and ASSBIFI, Union
Bank of Nigeria Plc has withdrawn its recognition of the above named trade
union bodies with immediate effect. All concerned have been duly advised. The
general public should please take note,” the statement read.

The other union, National Union of Banks, Insurance and
Financial Institutions Employees (NUBIFIE), was, however, not affected by the
proscription.

Collective agreement

The 94-year old financial institution, with a workforce of over
8,000, said it will take disciplinary action against any staff that has been
found to breach the terms of their employment.

“Some staff were found to be exposing false and confidential
customer information to the public, including shareholders. In the collective
agreement, it is stated there, the dos and don’ts of members. When there is no
rule, everybody becomes lawless. We will do the proper thing. We will not
victimise anybody,” Mrs. Osibodu said, adding that 315 staff were promoted in
December, 300 staff are facing disciplinary action for various infractions,
while some have received commendation.

However, ASSBIFI, in its response, said the bank has no
constitutional basis for withdrawing recognition of the union. Its response
letter, signed by the national president, Princewill Ojeh, and secretary
general, Obukese Orere, stated that the issue of withdrawal of recognition is
null and void.

“Recognition of Trade Unions by various managements is
compulsory and automatic and not a choice or wish. Trade Unions Act No 22
chapter 437, third schedule part B (7) of 1978 as amended refers.”

According to ASSBIFI, membership of unions is guaranteed by
Section 40, 1999 Constitution on freedom of association.

“No organisation has a unilateral power to withdraw recognition
from a trade union registered under the Trade Union Act,” and urged the bank to
withdraw the proscription letter.

Union Bank gets N239b
AMCON funds

Union Bank said it has received N239 billion from the Asset
Management Corporation of Nigeria (AMCON) for the purchase of its non
performing loans in the first phase of bailout.

This is in addition to N120 billion capital injection received
from the Central Bank of Nigeria (CBN) when it intervened in 2009 following the
sack of the former managing director.

Group managing director, Funke Osibodu, at a briefing in Lagos
yesterday, said the funds may not be the final intervention as the bank would
conclude reconciliation of its accounts in the next one week. She said the bank
had a negative capital of N254 billion and would still need about N154 billion
to move up to ground zero, after which a core investor can come in.

“This N154 billion will be covered by they (AMCON) taking equity
in the bank to that level. We place this at the table, on the terms of the
equity with AMCON, they provide the money they become the shareholder
technically and then we are now at ground zero,” Mrs. Osibodu said.

She said at this point, a new core investor can come in. “The
minimum capital that may be required is N100 billion for an institution of our
size.”

She further said the bank was already talking to new core
investors. “We have a preferred core investor and we have a standby core
investor. Out of all that have indicated interest, we have narrowed down to
two. We still have to negotiate the broad terms of engagement.”

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Market capitalisation records more gains

Market capitalisation records more gains

Investors at the Nigerian Stock Exchange (NSE) on Thursday
recorded additional gains on their equities’ value, as market closed trading on
a positive note.

The Exchange market capitalisation of the 201 First-Tier
equities closed yesterday at N8.630 trillion after opening the day at N8.471
trillion, reflecting 1.87 per cent upturn or over N159 billion gains. The
market had gained N120 billion at the close of trading session on Wednesday.

Meanwhile, market watchers said the current political concerns
should not affect investors’ sentiment in the market.

Analysts at Renaissance Capital, an investment bank, said the
stock market will be resilient during the political period.

“In the past, the NSE’s performance has been resilient to
significant political and security events. Notable political events, including
the hand-over from military to civilian rule in 1999 and the first civilian
elections in 2003, did not mar the performance of the NSE.

“We believe that concerns over the political landscape have been
slightly exaggerated and may present buying opportunities,” they said.

Instead, they further said, there are great opportunities “in
all the major sectors of the NSE, including banking, consumer and building
materials and agriculture.”

High gainers

At the close of trading on Thursday, the number of gainers
closed higher at 52 stocks as against the 47 gainers recorded previous session;
while losers also closed higher at 23 stocks when compared with the 21 losers
recorded on Wednesday.

Nigerian Breweries and Dangote Cement topped the price gainers’
table with an increase of N4.14 and N3.52 respectively to close at N87.08 and
N130.02 per share. Oando Oil and Flour Mill followed in the chart with an
increase of N3.22 and N2.00, to close at N76.26 and N74.00 per share.

On the losers’ side, Total Nigeria and Nigerian Aviation
Handling Company led the price losers’ chart with a decline of N2.00 and 21
kobo, to close at N232.00 and N10.79 per share respectively. Vono Products and
Nampak Nigeria followed with a decline of 17 kobo each to close at the N3.32
and N3.85 per share.

Active subsector

The Banking subsector led the market transaction volume on
Thursday with 411.524 million units valued at N3.817 billion, as against the
492.883 million units valued at N4.706 billion recorded on Wednesday. The
volume recorded in the subsector was driven by transaction in the shares of
Zenith Bank, First Bank, Afribank, Finbank, and Oceanic Bank.

The Mortgage Companies subsector followed in the chart with
44.317 million shares worth N23.666 million. Resort Savings & Loans largely
boosted the subsector’s volume, followed by Union Homes Savings & Loans and
Aso Savings & Loans.

Trading activities in the Foreign Listings subsector was third
highest yesterday, with 34.441 million shares valued at N549.619 million.

Volume in the subsector was boosted by deals in shares of
Ecobank Transnational Incorporation, the only traded stock in the subsector
yesterday.

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