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Unending toll road drama

Unending toll road drama

But for the
intervention of the Lagos State government, the third day of January
2011 was going to be historic, at least for residents of Lekki, Ajah
area. The day would have marked the commencement of the much contended
tolling on the Eti-Osa-Lekki Road. Or, put bluntly, the day would have
been chaotic, marred by protests by residents who are vehemently
opposed to the tolling.

With the suspension
of the tolling which was ordered on Wednesday by the state governor,
Babatunde Fashola, the drama continues with no end in sight.

Many residents of
the area say they will not pay any toll on the road which is currently
being reconstructed by the Lekki Concession Company, LCC, while
government insists that the project will go on according to the Public
Private Partnership agreement with LCC collecting toll from three
plazas on the reconstructed road for the 30-year period of the
concession.

According to the
announcement on LCC’s website, the road expansion/reconstruction has
gone beyond the Road Section 1, informing their decision to commence
tolling at the first Toll Plaza, also known as Admiralty Circle Plaza.
The announcement also stated that the decision is in line with the
terms of the Concession Mandate granted to LCC by the Lagos State
government.

However, Opuiyo
Oforiokuma, managing director/CEO of LCC, said the concession agreement
contemplated the present kind of situation.

“We believe that
Lagos State government’s statement about the suspension of tolling is
clear. We also believe that government remains committed to
infrastructure development in the state, leveraging private sector
resources.

“Project
implementation plans sometimes require adjustment. Our Concession
Agreement contemplates situations such as this and contains provisions
for dealing with them. Be assured of our best wishes for the New Year,”
he said.

The people want an end to it

Whereas the suspension has stalled a possible immediate uproar, many residents see it as postponing the evil day.

Sani Adewale, the
president of Eti-Osa Heritage Group and the Convener of the
Stakeholders Forum on Lekki-Epe Road Expansion, said there is no cause
for excitement.

“We are not excited
at all, given that the issue is still hanging there. They have been
postponing the issue. They postponed it in May. They postponed it in
August. They should be courageous enough to face it or cancel it
completely. There is a moral burden on the project. It’s a rip-off on
the people. If not, how can you explain N150 for a car at one toll
point. The concessionaire is not a partner for social development.

“I think government
made a mistake in the choice of concessionaire, because those LCC guys
are just businessmen; they are just after the money.

“You can imagine
for someone who goes to and fro through one toll plaza will be spending
N106,000 per annum. What if the household has up to three cars and they
have to pass all the three toll plazas? That means they will be
spending millions per annum on the road. We know they are just waiting
for the elections to come and go, then they will unleash the economic
terror on us,” he said.

Another resident of
Eti-Osa, Andrew Oretan, said they are not satisfied with a suspension
of the tolling. What they want is cancellation.

“The language is
suspension, not cancellation. What we want is for government to cancel
the whole thing. We cannot pay toll on a road that we have been using
for 29 years; a road the government gave to us as four lanes and
somebody is coming to add two lanes and is asking us to pay toll for 30
years.

“We are tax payers;
we pay a lot of levies in Eti-Osa, land use charge. What we want now is
for them to give final decision on this. We understand their antics.
They are just buying time, maybe after elections they bring the toll
thing back,” Mr. Oretan said.

Protest to continue

According to Mr.
Oretan, members of Eti-Osa communities will continue their protest, in
spite of the suspension, to maintain their “no-toll” stance.

According to a press statement signed by Ayo Gbeleyi, the director
general of the State Public-Private Partnership, the suspension became
expedient after public outcry concerning the toll and to allow for more
consultation on the issue. The statement added that the time will also
allow for the completion of the alternative routes by the government.

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Political realignments grip parties

Political realignments grip parties

Major realignment
of forces and defections have hit the country’s political parties,
especially the big ones, only few weeks to the deadline for the
submission of candidates.

According to the
new timetable for the 2011 general elections released by the
Independent National Electoral Commission (INEC) last month, the
parties have up till January 15 to submit names of their candidates for
the elective positions to the commission. The parties are, therefore,
expected to organise their primaries (or adopt) to pick those that will
fly their flags before that day.

Consequently, some
of the politicians who are dissatisfied with their primaries or were
afraid that they would not be offered the tickets to run for the
elections have, in the last few weeks, defected to other parties to
realise their ambitions. Some of them are:

Timi Alaibe

Until last Friday,
Mr Alaibe was the Special Adviser to the President on Niger Delta
Affairs. Prior to that appointment, he was the managing director of the
Niger Delta Development Commission (NDDC). Twice, he aspired to rule
Bayelsa State on the platform of the People’s Democratic Party (PDP),
but did not succeed. The first was in 2003 when he wanted to challenge
a former governor of the state, Diepreye Alamieyeseigha. In 2007, he
moved to challenge the then governor, Goodluck Jonathan, but backed
out. That was before Mr Jonathan was nominated as the PDP vice
presidential candidate. An efficient mobiliser, Mr Alaibe last Thursday
defected to Labour Party (LP) where he hopes to realise his
governorship ambition. It, however, remains to be seen how he would win
the oil rich state, from which Mr Jonathan hails from for the
opposition Labour Party (LP).

Rasheed Ladoja

He is a former governor of Oyo State under the platform of the PDP. While in office,

he was impeached in
controversial circumstances but was reinstated by the court. Mr
Ladoja’s membership of the party became shaky after his reinstatement
as governor. In fact, the ruling party did not give him the ticket to
run for a second time but instead, gave it to his former deputy and
present governor,

Adebayo Alao-Akala,
thanks to the political force of the late Lamidi Adedibu. Recently, Mr
Ladoja, a billionaire businessman and a former senator, dumped the PDP
for the Accord Party (AP). Some say his defection was informed by the
protracted crisis in the Oyo State chapter of the PDP.

Achike Udenwa

He is a former
governor of Imo State and the immediate past Commerce and Industry
minister. Mr Udenwa came to limelight when, in 1999, he defeated the
more popular Ezekiel Izuogu in the gubernatorial contest in the state.
He ruled the state until 2007. Following the controversy that trailed
the governorship primaries in the state in 2001, Mr Udenwa supported
the emergence of the incumbent governor, Ikedi Ohakim of the
Progressive Peoples Alliance (PPA) against Ifeanyi Araraume of the PDP.
However, Mr Udenwa’s romance with Mr Ohakim was short-lived as both
battled to control the structure of the party in the state.

The governor has
since dumped the PPA for PDP. On his part, Mr Udenwa decamped to the
Action Congress of Nigeria (ACN) few weeks ago and has interestingly
joined forces with the hitherto political opponent, Mr Araraume to
fight the incumbent governor.

Ifeanyi Araraume

Mr Araraume was in
the Senate for eight years. He showed interest in running Imo State as
governor in 2007 and in fact was given the PDP ticket in controversial
circumstances.

But former
president Olusegun Obasanjo did not want him and mobilised the PDP
supporters to vote for Mr Ohakim who was of the PPA. The former
senator, who was about the most popular candidate, quit the PDP few
weeks ago. He has taken up membership of ACN.

Mohammed Abacha

He is the eldest
surviving son of the late military head of state, Sani Abacha. Mr
Abacha’s foray into politics came as a shock to many. He first took up
membership of the PDP where he had hoped to actualise his ambition to
rule Kano State as its governor. When it seemed like he would not
secure the ticket, the young man moved to the Congress for Progressive
Change (CPC). Yet, the CPC appeared hotter for him than the PDP. He was
reportedly thrown out of the CPC last week by a faction of the party
sympathetic to the national chairman, Rufai Hanga. Mr Abacha is said to
be on his way to the All Nigeria Peoples Party (ANPP).

Dora Akunyili

The immediate past
information and communication minister was drafted into the federal
cabinet by the late President Umaru Yar’Adua, whom she had campaigned
for in 2007. Mrs Akunyili dumped the PDP early last month for All
Progressives Grand Alliance (APGA) to contest election to represent
Anambra Central Senatorial District. Not a few describe her exit from
the ruling party as shocking.

However, those who
should know have maintained that there was a deal between her and the
APGA structure in Anambra State led by the national chairman, Victor
Umeh and the governor, Peter Obi. Unconfirmed reports indicated that it
was the major reason Mrs Akunyili did not support former CBN governor,
Chukwuma Soludo (her in-law) who ran the election under the banner of
the PDP.

Dele Momodu

This celebrated
journalist and publisher of Ovation Magazine wanted to vie for the
presidency on the ticket of LP. But a few weeks ago, in a statement he
authorised, Mr Momodu announced his withdrawal. He has now declared his
intention to run for president under the National Conscience Party
(NCP).

Mohammed Ali Ndume

Mr Ndume symbolised
opposition politics at the National Assembly where he is the minority
leader and leader of the All Nigeria Peoples Party (ANPP). A two-time
member of the House of Representatives, Mr Ndume impressed many
Nigerians in the manner he confronted the majority PDP in the House on
issues. At the national secretariat of the ANPP, he was revered for his
role in the House. In fact, he was often described as “the face of
opposition in the party.” But Mr Ndume, last Monday, dumped the ANPP
for the PDP, which is in the opposition in his native Borno State. The
gist is that he wanted to go to the Senate to represent Borno South
Senatorial District, but that the governor refused him. Governor Modu
Sheriff is said to be backing his women affairs commissioner, Asabe
Vilita Bashir for the seat.

Garba Lado

Mr Lado, son of a
rich businessman in Katsina State, has been a senator since 2007 on the
ticket of the PDP. Before then, he was a member of the House of
Representatives.

He is reputed to be
a strong supporter of the late president, Umaru Yar’Adua and kicked
against the “Doctrine of Necessity” on which the upper legislative
chamber stood to declare Mr Jonathan acting president early last year.
Mr Lado, has dumped the PDP for the CPC from where he hopes to oust
Governor Ibrahim Shema from office. A few weeks ago, the senator was
reported to have been picked as the consensus candidate of the party.

However, a former
House of Representatives Speaker, Aminu Bello Masari, who is eyeing the
same position, was said to have kicked against it, insisting that the
consensus project was fraudulently executed. The matter is yet to be
resolved even as Mr Masari is combing the nooks and crannies of the
state to canvass for votes.

Aminu Bello Masari

In 2007, he wanted
to succeed Mr Yar’Adua as Katsina State governor and had indeed been
assured that he would pick the ticket. But the unexpected happened and
he was shoved aside for Mr Shema, who was then a deputy national
chairman of the PDP.

He, expectedly,
fell out with the late president and even fought him till the end. He
decided to join the CPC alongside his associates like Sadiq Abubakar
Yar’Adua (not a relation of the late president), but he is not having
it easy in the quest to actualise his ambition as he faces stern
opposition from fellow party men.

Chimaroke Nnamani

He is a sitting
senator and former governor of Enugu State for eight years. Mr Nnamani
installed the incumbent governor, Sullivan Chime as governor, but the
two have parted ways. The 50-year-old former governor has floated a new
political party called People for Democratic Change (PDC).

Rochas Okorocha

He is a popular
philanthropists and businessman from Imo State. He contested the
presidential primaries variously in PDP and ANPP. But recently, he
defected to APGA, where he wants to contest the governorship election
of Imo State. Sadly, that state’s branch of the party has given him
quit notice. Reason: Mr Okorocha’s thugs invaded the APGA secretariat
in the state where they manhandled some party executives.

He may, therefore, be on his way to another party.

Early decampees

Muhammadu Buhari,
who had contested the presidential polls in 2003 and 2007 on the ticket
of ANPP, left the party to float the CPC. Abubakar Atiku, left the ACN
for the PDP. Governors, Mahmud Shinkafi of Zamfara left the ANPP for
PDP; Isa Yuguda of Bauchi State left the ANPP for the PDP; Ikedi Ohakim
of Imo State left the PPA for the PDP; and Theodore Orji of Abia State
dumped the PPA for PDP. All of them are currently jostling for various
positions in the 2011 elections.

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A year of insecurity and violence

A year of insecurity and violence

About three hours before 10.27pm on
Christmas eve, bombs exploded in Jos North local government area of
Jos, Plateau State killing scores.

At about the same time,500km away in
Maiduguri, Borno state, North east Nigeria, another set of people
launched attacks on two churches, killing seven people. Four days after
the killings, a group (Jama’atu ahlus sunnah lid da’awati wal jihad)
known as Boko Haram claimed responsibility for the bombings in Jos. The
same group was identified by the Borno State police commissioner, and
the Borno State Governor as responsible for the killings in Maiduguri.

These two well coordinated incidents could however have been averted if security agencies had been effective in their duties.

The Borno governor, Ali Sheriff told
the media after the attacks that “prior to these attacks and killings,
I alerted the police and other security agencies in the state to take
no chances of any reprisals from the outlawed sect members. Yesterday’s
attacks and killings could have been prevented if the police had heeded
to my security advice.” A similar report was also before the security
forces before the Jos bombings.

All these were happening two months
after the independence day bombing in Abuja, for which the Movement of
the Emancipation of the Niger Delta (MEND) has claimed responsibility.

After Christmas

Three days after Christmas, suspected
members of the Boko-Haram, eager to further show their strength in
Maiduguri, attacked a hospital; killing three people including a police
officer.

The post Christmas horror moved from
the northern part of Nigeria into the south four days after Christmas.
This time around, the perpetrators chose a different location; Bayelsa,
the home state of President Jonathan, over 600km from Jos. The
explosion occurred during a rally by a governorship aspirant on the
platform of the Peoples Democratic Party (PDP.) While several people
were injured, no lives were lost. This was not the first time that
Bayelsa state would witness bomb explosions in 2010, previous ones
including the explosions at the home of a former deputy governor of the
state had happened. No group claimed responsibility for any of the
Bayelsa bombings and no one has been punished for them.

The ‘Boko Haram’ members however
continued their onslaught against security operatives on Wednesday,
December 29, killing more police officers and innocent residents while
setting police patrol vans ablaze. A day later, exchange of gunfire
between two factions of the PDP in Ibadan, Oyo State killed three
people,including two aides of a serving senator and senate leader,
Teslim Folarin; and a factional chairman of the transport union, Lateef
Salako (Eleweomo).

Political violence

While the crisis in Oyo and Bayelsa
States clearly had political undertones and could easily be likened to
political sponsorship, that of Jos and Maiduguri cannot be so easily
labeled.

Intelligence sources say although the
impact of the Jos attacks might have political implications,they were
not really a product of politics.

“It is really just another aspect of
what has been going on in the past,” a senior military intelligence
officer serving in Jos said at the weekend.

“Unless government is bold enough in
resolving the underlying issues, then things will continue like this
for a while more,” he said.

Another security officer said crises of
this kind will continue, and perhaps only get worse, as long as
security at airports and ports remained lax and borders remained
porous. He also called on government to work with religious leaders to
rid preachers of ignorance and intolerance.

The military officer, who said officers
are mostly professional in their response to the crisis, said there is
often times trouble securing the confidence of the locals because they
often believe that security officers are partial to either of the two
sides in a conflict situation. ‘

Bringing culprits to justice

Following the statement by the Borno
State governor that the perpetrators of the violence in this state will
be brought to book, Oluseyi Petinrin, Air Chief Marshall and Chief of
Defense Staff (CDS) promised that the federal government will make sure
that the perpetrators of the Jos crisis are brought to justice. Mr
Petinrin however called for restraint, saying the violence is being
promoted by rounds of tits-for-tats.

“The way you can help government to
quickly get to the bottom of this thing is to be calm, go about your
normal business and do not try to retaliate. When you retaliate, you
will be retaliating against innocent people. You do not know the people
who did this thing. It is possible they are not even from Jos, so let
us get to the bottom of it first and I know you can help,’’ he said.

Partial Troops

Some residents of Jos believe that the
reason the violence in Jos continues is the partial disposition of the
military task force.

However, the spokesperson for the special task force for Jos, Charles Nweocha defends the impartiality of the troops.

“A lot of sacrifice is involved in
keeping the peace. The security men are doing their utmost best; the
allegation of bias against them is most unfair,” he said.

“I have a wife and kids with whom I
should normally spend the Christmas, but I have been in this cold since
December 24. I should be in a hurry to see that the crisis is over and
not taking sides to worsen an already bad situation.”

He added that it was not possible for the soldiers to take sides in view of their training in the handling of such situations.

“At each of the military check points, you will have Christians and
Muslims; you have all Nigerian tribes mixed up. So, you cannot take any
side under such circumstance. Where you have an Igbo man as team
leader, for instance, you will find that the members of the team
comprise Hausa, Yoruba, Ijaw, or Tiv speaking soldiers; so, whose side
will they be taking?”

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Sikiru Ayinde Barrister laid to rest

Sikiru Ayinde Barrister laid to rest

Fuji legend Sikiru Ayinde Barrister was buried in the sitting room of his Lagos home on Thursday, December 30, in line with the late musician’s wishes. The body, which arrived at his Fuji Chambers residence at 9.44pm, was buried shortly after 10pm, in accordance with Muslim rites.

The remains of Barrister, who passed away at a London hospital on December 16, had been delayed in the United Kingdom due to flight disruptions caused by bad weather. Scheduled to return to Nigeria on Wednesday, the arrival was the subject of much confusion, with spokespersons giving conflicting information about the exact whereabouts of Barrister’s remains and the Air France flight conveying it.

Thousands of fans kept a two-day vigil at the Fuji maestro’s home as family members and well-wishers waited. The arrival of Barrister’s remains was finally confirmed around 6pm Thursday, but so many fans had besieged the airport route that a decoy convoy had to be convened, to enable the corpse travel separately in privacy.

All day Thursday, a carnival-like atmosphere prevailed around the deceased’s home, popularly known as Fuji Chambers. Tessy Yembra who danced in Barrister’s famous ‘Fuji Garbage’ video in 1988, entertained waiting crowds with the dance again, 22 years on.

A stream of music stars arrived at Fuji Chambers throughout Thursday to condole with the family and await their fallen colleague. Among these were Salawa Abeni, Ayinla Kollington, Wasiu Ayinde, Segun Adewale and Dele Abiodun.

Many of Barrister’s fellow musicians joined his widows and children to witness the burial, including Ebenezer Obey, Wasiu Alabi Pasuma, Obesere and Saheed Osupa.

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Equity performance rebounds at the Exchange

Equity performance rebounds at the Exchange

Equity
performance rebounded at the Nigerian Stock Exchange (NSE) on Wednesday
as market measuring parametre, the market capitalisation, appreciated
by a 0.26 percent.

At the close of
proceedings yesterday, the market capitalisation recorded over N21
billion gains on last trading figures of N7.887 trillion, to close at
N7.908 trillion.

All the NSE
sectoral indexes maintained previous outlook to close positive as the
NSE-30, which measures the performance of blue chips in the market,
gained by 0.41 percent; the NSE Banking gained the highest point by
0.50 percent; Oil & Gas moved up by 0.13 percent; the Food &
Beverages appreciated by 0.08 percent; while the NSE Insurance closed
flat.

Commenting on
Wednesday’s market performance, analysts at Proshare Nigeria, an
investment advisory firm, said the nation’s capital market witnessed
“low participation and lackluster performance in the early trades, but
later geared up in the noon session with key benchmark indices
recording thin turnover.”

They said banking
stocks and food/beverages stocks with few insurance stocks remained the
“toast of investors” during the session, while majority of the rescued
banks saw profit booking.

Low gainers

At the close of
trading on Wednesday, the number of gainers closed lower at 27 stocks,
as against the 30 gainers recorded the previous session, while losers
closed at 24 stocks; same position with the previous trading day’s
figures.

The NSE’s
transaction volume moved down by 62.62 percent to close at 211.60
million units exchanged in 3,939 deals, as against a growth of 80.57
percent recorded the previous trading to close at 566.04 million units
exchanged in 3,300 deals.

Also, market value
dropped yesterday by 2.97 percent to close at N1.67 billion, as against
a decline by 39.73 percent recorded last Friday to close at N1.73
billion.

Active subsector

The Banking
subsector led the market transaction volume on Wednesday with 138.29
million units valued at N1.22 billion exchanged in 2,547 deals, as
against the 104.93 million units valued at N827.70 million exchanged in
1,939 deals recorded on Friday.

The volume recorded
in the subsector was driven by transaction in the shares of Zenith
Bank, Guaranty Trust Bank, First Bank, Fidelity Bank, and Oceanic Bank.

The total volume of
69.30 million units valued at N823.93 billion traded in the shares of
the five stocks accounted for 32.75 percent of the entire market volume
and their value represented 49.07 percent of the market’s value.

The banking
subsector closed on Wednesday with 9 gainers to 8 losers, compared with
10 gainers to nine losers that was recorded the previous trading day.

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Council moves against substandard cigarettes merchants

Council moves against substandard cigarettes merchants

Disturbed
by the seeming increase of substandard cigarettes in the country’s
markets despite several raids by it and other relevant regulatory
agencies, the Consumer Protection Council (CPC) says it will soon bare
its fangs.

The Council read
the riot act to cigarettes merchants, threatening that those caught
would henceforth face the full weight of the law.

Abiodun Obimuyiwa,
head of public communications in the Council, said in a statement that
more stringent punishments would be meted out to those behind the
circulation of these “deadly products”.

The statement came
on the heels of its surveillance activities, which revealed the
existence and circulation of spotted Super King Cigarette in the north
west zone of the country.

“Markets within
Kano Metropolis had been raided and we will close in on the major
outlets of the distribution of the product nationwide,” Mr. Obimuyiwa
said.

While drawing the
attention of the marketers of the sub-standard product to the danger of
smoking spotted cigarette, the Council warned the marketers to “halt
the distribution of the spotted product and withdraw all packs that are
in the market place or face prosecution.”

Mr. Obimuyiwa
added, “Efforts to mop up those found in the markets are in top gear,
just as it seized the opportunity to alert Nigerian consumers of the
existence of the spotted cigarette, which has been found to be
deadlier.”

Experts said
consumption of substandard cigarette has grave health implications as
it contains high levels of a cancer-causing toxic metal picked up from
the soil the tobacco is grown in.

“Counterfeit
cigarettes that contain more than three times the usual levels of
arsenic and can cause vomiting and abnormal heart rhythms. There is
hardly a better way of delivering some carcinogens to the lungs than
smoking tobacco grown in contaminated environments. Counterfeit
cigarettes are substantially contaminated with toxic elements such as
arsenic and lead compared with genuine brands,” the statement said.

Fake cigarettes can
cause nausea and vomiting, abnormal heart rhythms, damage to blood
vessels and increase the risk of bladder, liver and prostate cancer,
among others.

Abubakar Mohammed,
a lecturer at the University of Abuja, said the impact is in two folds:
irreversible and reversible mental effects.

“These include
hallucination, delusion, illusion, complete madness, decay of teeth,
shortage of oxygen due to narrowing of lungs, and cancer of the bones.

Mr. Mohammed noted
that many Nigerians consume fake cigarettes ignorantly. There is
therefore, the need for proper consumer education to save consumers
from careless death.

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Market capitalisation records additional gains

Market capitalisation records additional 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 closed yesterday at N 7.912 trillion after opening the
day at N 7.908 trillion, reflecting 0.05 percent upturn or over N4
billion gains. The market had gained about N21 billion at the close of
trading session on Wednesday.

The NSE sectoral
indexes maintained previous positive outlook as NSE-30, which measures
the performance of blue chips in the market, gained by 0.28 percent;
the NSE Food & Beverages gained the highest point by 0.52 percent;
the Banking moved up by 0.39 percent; and the Oil & Gas appreciated
by 0.19 percent, while the NSE Insurance, the only loser, closed with
2.07 percent loss.

Commenting on
Thursday’s market performance, analysts at Proshare Nigeria, an
investment advisory firm, said the early session witnessed stocks of
Building Materials, Food & Beverages, Industrial & Domestic
Products and Agriculture sectors dictating the pace in price
appreciation.

“The moderate
buying activities in Food & Beverages, Maritime, Construction, and
Agriculture sectors with slight bargain towards blue chips despite much
selling across the sectors, took the market higher with modest gain,
closing year-to-date All-Share Index performance higher at 18.94
percent,” they said.

High losers

At the end of
trading, the number of gainers closed at 27 stocks; same position with
the 27 gainers recorded previous session while losers closed higher at
31 stocks when compared with the 24 losers recorded on Wednesday.

Presco Nigeria and
Costain West Africa topped the price gainers’ table with an increase of
4.98 percent each on their opening prices of N6.22 and N6.43 per share
respectively. IHS and Vitafoam followed in the chart with an increase
of 4.84 percent and 4.79 percent, to close at N2.60 and N6.35 per share.

On the losers’
side, Wema Bank and C & I Leasing led the price losers’ chart with
a decline of 5 percent and 4.97 percent, to close at N1.33 and N1.53
per share. Evans Medical and John Holt followed with a decline of 4.96
percent each on their initial prices of N1.21 and N9.28 per share.

Active subsector

The Banking
subsector led the market transaction volume on Thursday with 111.04
million units valued at N1.04 billion, as against the 138.29 million
units valued at N1.22 billion recorded on Wednesday.

The volume recorded
in the subsector was driven by transaction in the shares of Zenith
Bank, First Bank, Skye Bank, Oceanic Bank, and Diamond Bank. The total
volume of 64.54 million units valued at N715.82 million traded in the
shares of the five stocks accounted for 30.62 percent of the entire
market volume.

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Brand matters in retrospect

Brand matters in retrospect

This column came
into existence in August and since this will be the last for the year,
I want to do a summary of the topics focused on during the year. All
that you will find are snippets of what this column focused on in the
year.

A brand that must
retain consumers’ attention in the New Year should be one that feels
their pulse. The quantum of consumers insight generated is central to
the overall success of the brand in the New Year. It is important for
brands to touch base with consumers while also ensuring satisfaction
and superior service delivery.

Brands should also
speak the language of consumers as consumers respond more through
persuasive and emotive communication messages. It is also important to
say that any sales/consumer promotion embarked upon in 2011 should be a
reward scheme for consumers and not exploitative in approach. Consumers
want brands they can identify and relate with as their own.

Despite the
economic meltdown, brands should seek to sustain the tempo of their
messages to retain their established image. Since 2011 is an election
year, it is important to have strategy based political campaigns which
will inspire and move the electorate to action.

Brands should
ensure that negative perception is eliminated to the barest minimum as
this can hinder the brand in the market place. To forestall negative
perception, brands should embark on image building tactics that will
position the brand in the minds of the target audience. The issue of
Corporate Social Responsibility thus become important here. Brands
should be good corporate citizens. Some brands and their companies
should embark on projects that will impact lives meaningfully in the
communities where they operate.

The rebranding
Nigeria project should be given utmost priority in the New Year. The
import of this is that our leaders should make concrete efforts in
leading by example. Now that Dora Akunyili is a politician, one hopes
the fire of tenacity will keep burning.

The recurring name
change by Airtel generated so much discourse. It was one topic that had
the highest number of feedback this year. In the New Year, Airtel
should consolidate on the gains of the name change and connect more
with the subscribers on the network.

The media also has
a critical role to play as the purveyor of information. It is highly
expected of the media to focus on professionalism and ethical standards
in the New Year.

Public speaking is
a skill everyone needs to leverage a positive image. It is not an
activity to engage in to pour venoms on other people. It is one that
comes with panache, style, and delivery. This is one skill that a brand
personality needs in the New Year.

The insurance
industry also needs to raise the bar of its visibility in the New Year.
The industry needs to wake up from its slumber and set an agenda for
public discourse on insurance services.

Evaluation

This column debuted
over twenty weeks ago and I will appreciate feedback of readers on the
column, its contents and approach to issues. This I believe will enrich
the column the more.

Till we meet in 2011, may all your days be colourful and bright. Also, believe you can make it in the New Year.


Ayopo, a Communication Strategist and Public Relations practitioner
is The CEO of Shortlist Ltd, email-shortlistedprspecialists@gmail.com

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Asset Company takes over debts of 21 banks

Asset Company takes over debts of 21 banks

In keeping with its
timeline of absorbing all the non performing loans in banks books by
the end of the year, the Asset Management Corporation of Nigeria
(AMCON) will today sign debt purchase agreements with chief executive
officers of 21 banks in the country. One bank is yet to submit its debt
profile while two foreign owned banks, Citi and Standard Chartered,
withdrew from submitting any bad loan.

With the agreement,
over N2 trillion of nonperforming loans (NPLs) will be taken off the
books of the banks and transferred to the asset company. Today’s
meeting will be attended by finance minister, Olusegun Aganga, Central
Bank of Nigeria (CBN) governor, Lamido Sanusi, and director general of
the Debt Management Office (DMO), Abraham Nwankwo.

AMCON was set up to
take up the bad loans in the books of banks in the wake of the global
financial crisis which took a toll on the Nigerian financial sector.

Thereafter, the CBN
injected N627 billion into Afribank, Bank PHB, Equitorial Trust,
Finbank, Intercontinental, Oceanic, Spring, Wema, and Union, to save
them from imminent collapse.

At a meeting with
bank executives on December 16, Foluke Dosunmu, AMCON executive
director of finance, explained that the rescued banks will enjoy two
sets of funds injection. One is to buy their non performing loans and
two, to cater for their capital adequacy. Mrs. Dosunmu said AMCON will
issue the first set of bonds by the end of today.

She said bonds will be issued for a two year period which will be refinanced by issuing another set of bonds next year.

“The bonds will be
zero coupons, fixed or floating, that will be tradable and liquid and
listed on the Nigerian Stock Exchange,” she said.

She added that the
liquidity of the bonds will be enhanced, as it will not only be held by
banks but also fund managers, pension fund administrators, insurance
companies, trustees, and custodians. The bond will be guaranteed by the
federal government.

This development is
expected to trigger price rally at the stock market as investors cash
in to take advantage of the valuation model already released by the
asset company.

AMCON’s managing
director, Mustafa Chike-Obi, listed assets which are to be taken over
from the banks; they will be priced at 60 percent of market value on a
60-day price average on the NSE trading platform, counting back from
November 15.

Mr. Chike-Obi said AMCON will buy all non performing loans by the end of the first quarter of 2011.

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Copper price keeps investors keen

Copper price keeps investors keen

The
high copper price will bring further hefty investment into the sector
in Zambia next year, keeping it on track to produce an annual 1 million
tonnes by 2012, the head of the body representing foreign miners said.

Chamber of Mines of
Zambia president, Nathan Chishimba, said the trend seen in 2010, when
Zambia attracted $2 billion in new mining investments, would continue
and would further benefit from stable tax policies in the southern
African country.

“I think the prospects for mining in Zambia… are very, very bright,” Chishimba told Reuters in an interview on Wednesday.

“A high copper
price … permits flexibility by investors to plough back into
improvements in production, improvements in efficiency, and overall
improvement in output.

“We believe these
new projects, once they stabilise, will go a very long way towards
achieving the 1 million tonne mark which we have set for ourselves in
the next two years or so,” he said.

London Metal
Exchange copper rose to a record high of $9,447 a tonne on Wednesday
when trade resumed after the Christmas break, during which U.S. futures
rallied to a top fuelled by a weaker dollar and worries about supply
from Chile.

Metals prices are
expected to follow their own fundamentals during 2011, as emerging
market economies drive ahead and demand recovers in developed nations,
pushing copper above $11,000 a tonne, Goldman Sachs forecast this month.

Chishimba said the
investment of $400 million into a Zambian copper project by Brazil’s
Vale, the world’s top iron ore miner, was a vote of confidence in
Zambia’s mining sector, which is the largest copper producer in Africa.

Finance minister,
Situmbeko Musokotwane, said in November the government had agreed to
maintain the existing mining taxes for 10 years to provide stability to
mining investors.

Chishimba said
“shifting of goal posts and knee-jerk reactions” via policy changes
without exhaustive consultation of industry players could pose a risk
to the sector and he welcomed the stability in policies, which he said
reassured investors.

Chishimba said it
had taken $5 billion in investment over the last decade for Zambia to
get back to annual copper output of more than 720,000 tonnes, and the
country should strive to exceed that by attracting further investment.

Zambia should also
bring down the cost of doing business and invest in energy and
infrastructure projects to support the growing mining industry, he said.

Other mining
companies operating in Zambia include Vedanta Resources Plc, Equinox
Minerals, Glencore International AG, and Metorex.

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