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Commodifying nature in an age of climate change

Commodifying nature in an age of climate change

For about two
weeks, starting from next Monday, the world will be locked into another
session of negotiations on how to tackle climate change. The
conference, to be held in Cancun, Mexico, has drawn less excitement
than its predecessor held in Copenhagen, Denmark, a year ago.

The excitement of
Copenhagen was partly driven by the false information that circulated
that the Kyoto Protocol was ending at that meeting. Though there were
serious, but failed efforts, made at that conference to lay the
protocol to rest, its first period actually ends in 2012, while a
second commitment period will be entered into as soon as the first
period elapses.

But why would
anyone want to kill the protocol and why should it be sustained? The
Kyoto Protocol is seen by some as the only legally binding instrument
to which the industrialised and highly polluting nations can be made to
commit to cutting emissions at source. From this perspective, when
countries fight to abolish the protocol, they are simply trying to
avoid making any real commitment to tackling climate change.

One problem with
the workings of the United Nations Framework Convention on Climate
Change (UNFCCC) and the ongoing negotiations is that it bases a chunk
of its reasoning and framings on the market logic. This follows the
path created by the mindset that has built a vicious paradigm of
disaster capitalism, in which tragedy is seen as opportunity for
profit. What do we mean by this?

Rather than take
steps to curtail emissions of greenhouse gases responsible for global
warming, some people are busy devising ways of making every item of
nature a commodity placed at the altar of the market. Through this,
everything is being assigned a value and many others are privatised in
addition.

What makes this
offensive is firstly that you cannot place a price on nature, on life.
Secondly, speculators are hyping the utility of the carbon market as a
means of fighting climate change. Some of the ways this manifests is
through the carbon offsetting projects by which polluters in the
industrialised countries continue to pollute, on the calculation that
their emissions are being compensated for elsewhere.

As Friends of the
Earth International stated in a recent media advisory, “Carbon trading
does not lead to real emissions reductions. It is a dangerous
distraction from real action to address the structural causes of
climate change, such as over-consumption. Developed countries should
radically cut their carbon emissions through real change at home, not
by buying offsets from other countries. Carbon offsetting has no
benefits for the climate or for developing countries – it only benefits
developed countries, private investors, and major polluters who want to
continue business as usual.”

Cancun will
obviously be crawling with carbon speculators and traders, as was the
case in Copenhagen. And they have good reasons to be there. They will
be there because policy makers on both sides of the divide see benefits
in the schemes, even though the so-called benefits are pecuniary and
are actually harmful to Mother Earth. But as far as the money enters
the pockets of some poor countries, the rich countries can go on
polluting, having paid their “penance.”

Not just money alone

The world appears
deaf to the need for real actions to curb climate change, and the focus
remains on money. In fact, while many of the items of the Cancun agenda
have stalled, with regard to reduction of carbon emissions in the
industralised nations, there is no shortage of proposals on how carbon
markets can be brought in to give appearance of action.

Reducing Emissions
from Deforestation and Degradation (REDD) is one of such schemes in the
scheme. Quick progress is being made on REDD and already, talks are
advancing on other variants of the scheme. Indigenous and forest
community people are opposed to REDD and object to its implementation,
as attention is being focused on forests merely as carbon stocks for
mercantile purposes. Significantly, many see REDD as not seeking to
stop deforestation, but merely to reduce it.

It is also argued
that that any reduced deforestation may not be sustained, as
deforesters may just shift to another forest or zone to continue with
their activities. In other words, REDD is a pretty fiction that may
pump money into the pockets of some countries and corporations, but
will marginalise forest peoples and will not help to fight climate
change. The attraction, as critics have said, is that if this mechanism
is linked to the carbon market, it will allow developed countries pay
money to REDD-projects that preserve forests in developing countries,
and in return receive carbon credits – buying the right to pollute.

There will also be
strident rejection of any role at all for the World Bank in the climate
finance architecture that may be devised in Cancun.

The atmosphere is
set for a somber, winding series of negotiations. However, social
movements and other civil society groups are set to push up the voices
of the people, as already broadly articulated in the Peoples Agreement,
reached at the World Peoples Conference on Climate Change and the
Rights of Mother Earth held in April 2010 at Cochabamba, Bolivia.

The environmental
justice movement that took first serious steps in Copenhagen is sure to
take firmer steps on the streets of Cancun and in thousands of Cancuns
being planned for a multitude of locations around the world.

The message in
Cancun, if we must expect motions towards real actions to tackle
climate change, is that governments must pay attention to what the
people are saying, to the real challenges faced by vulnerable peoples
around the world, and not lend their ears to carbon speculators.

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Uganda shilling weakened by dollar demand

Uganda shilling weakened by dollar demand

The Ugandan
shilling weakened on Wednesday, undermined by dollar demand from
telecoms and energy companies and the euro’s slide against the dollar,
traders said.

At 1037 GMT,
commercial banks quoted the shilling at 2,290/2,295 per dollar, weaker
than 2,285/2,290 at Tuesday’s close. Traders forecast it would trade
within the 2,290-2,297 range in the days ahead.

“I think we will
continue to see a weak shilling. We saw some dollar demand from the
energy and telecom sectors, which depleted what was available in a
market that is short on dollars,” said Faisal Bukenya, head of market
making at Barclays Bank, Uganda.

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Senegal plans $500 million Eurobond issue

Senegal plans $500 million Eurobond issue

Senegal plans a
$500 million Eurobond issue for the first half of next year, replacing
the $200 million bond launched last year, the finance ministry said on
Wednesday.

“The borrowing
should be launched in the first half of 2011 and reach the critical
size of $500 million, that will enable it to be listed on the emerging
markets reference indices,” ministry communications adviser, Ousseynou
Gueye, told Reuters in response to inquiries.

The inclusion of an
instrument on the Emerging Markets Bond Index (EMBI) is considered an
advantage, as it improves its liquidity.

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Kenya’s I&M Bank gets $25 million loan

Kenya’s I&M Bank gets $25 million loan

Kenya’s I&M
Bank said on Wednesday it has received a 2 billion shillings loan from
the Netherlands Development Finance Company (FMO) for onward lending,
especially to small and medium sized companies.

“The lending by FMO
provides a positive signal which will help I&M Bank to bridge the
gap arising out of maturity and foreign currency mismatches, whilst
simultaneously presenting a stable and long term source of foreign
currency funding to meet the growing needs of the market,” the bank
said in a statement.

Kenya’s central bank says commercial lending was up 6 percent in the third quarter to $11 billion.

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Federal Government to establish non-interest (Islamic) bank

Federal Government to establish non-interest (Islamic) bank

The Federal
Government plans to establish a non-interest (Islamic) bank in the
country, to assist low income earners in the delivery of financial
services at affordable costs.

Umaru Ibrahim,
acting managing director, Nigeria Deposit Insurance Corporation (NDIC),
made the announcement on Wednesday, in Abuja, at a one-day
sensitisation seminar on Non- Interest (Islamic) Deposit Insurance
Scheme.

“It is on record
that one of the ways of alleviating extreme poverty in developing
countries such as Nigeria is the provision of banking services and
adequate credit facilities to vulnerable groups,” he said, adding that
the decision to establish the bank was in consonance with the principle
of financial inclusion.

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ActionAid urges FG to support agriculture

ActionAid urges FG to support agriculture

ActionAid Nigeria,
an anti-poverty NGO, on Wednesday, in Abuja, urged the government to
provide more support to smallholder farmers, to avoid food scarcity in
the country.

Tunde Aremu, the
organisation’s policy, advocacy, and campaigns coordinator, made the
call while speaking with the News Agency of Nigeria (NAN).

“Announcement of a
surge in global food prices has huge implications for the world’s
poorest who are already struggling to get enough to eat. ActionAid is
calling on governments to take urgent measures to boost harvests and
protect the most vulnerable against the looming possibility of another
global food crisis,” Mr. Aremu said.

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Economist urges FG to establish MSME banks

Economist urges FG to establish MSME banks

An economist, Lizzy
Okereke, has urged the Federal Government to establish Micro, Small,
Medium Entrepreneurs (MSMEs) banks in all the 774 local governments
areas in the country.

Mrs. Okereke made
the call on Tuesday at the 37th Annual General Meeting and Conference
of the Enugu Chamber of Commerce, Industry, Mines, and Agriculture
(ECCIMA) in Enugu.

“For Nigeria to
take its proper place as an emerging economic power come the year 2020,
we must not only provide access to credit and in the right places, but
in a sustainable manner,” she said, adding that this was the only way
to speed up the economic development of the nation.

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Auditors under fire over Exchange accounts

Auditors under fire over Exchange accounts

In what amounts to a vote of no confidence, stockbrokers refused
to authorize council members of the Nigerian Stock Exchange (NSE) to fix the
remuneration of auditors, Akintola Willaims Deloitte.

At the 49th annual general meeting held in Lagos yesterday,
member stockbrokers rejected the report after the accounting firm was unable to
provide satisfactory answers to some of the observation raised.

Trouble started when Okechukwu Unegbu, the Chief Executive
Officer of Maxifund Securities Limited, observed the financial report was not
signed. “My concern is the issue of illegality,” he said. “Mr Chairman, this
account is not signed. It is a legal issue and I want you to consider it
because we may need to get another account.” He added that endorsement by the
firm does not substitute for an individual signature.

Akintunde Odunsi, the Managing Director of Interstate Securities
Limited, said with the investigations into the accounts of the NSE, the
submitted financial report may be altered after the final outcome of the
forensic investigation into the books of the stock exchange. “If the auditors
say investigation is not yet finalised and they are not sure the likely effect
it is going to have on the account, my question is why are we hurrying to have
AGM and not get to the bottom of it so that at the end of the day we know where
we are going,” he said.

Unwilling members

When it was time to receive and adopt the report of council,
financial statement, and report of the auditors, no member was willing to move
the motion. Balama Manu, interim president of the NSE council, while admitting
the unsatisfactory response, however called on members to adopt the motion. “I
will like to say that we seem to have addressed most of the questions not
necessarily to the satisfaction of those who raised them, but I will like to
move ahead by moving formally that the accounts for the year ended December 31,
2009 and report of council, be received and adopted,” he said.

Ebilate Mac-Yoroki, CEO of City Code Trust and Investment Limited, said the
conduct of the auditors was not encouraging. “Most of the answers we have had
are not satisfactory,” he said. “The auditors that have been auditing this
account for a very long time cannot give us the basis for which it is
qualifying just last year’s account. The auditor has no new basis on which it
is qualifying this account.”

It took the intervention of senior stockbrokers to resolve the stalemate
after the interim president compelled a council member, Emmanuel Ocholi, to
second the motion. “In the interest of moving this exchange forward, let’s not
introduce complications. I do not think this is in the interest of the exchange
and by implication, all our stakeholders,” Mr Manu said.

Subsequently, Aigboje Higo, of Capital Bancorp, appealed to his colleagues
to work in harmony in order not to reverse the gains that has been achieved in
the last few months. “The market is sick and tired of us not putting our house
in order,” he said. “I think it will be wicked and callous for investors who
put their money for us to come out again and give stories.” Eventually, the
accounts were adopted.

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Traders watch closely for entry signals

Traders watch closely for entry signals

The stock market recorded a turnover of
1.002 billion shares valued at N9.98 billion in 19,493 transactions.
Recall that the stock market opened for three trading days due to two
days public holidays for the celebration of Eid-el-Kabir. Thus,
Nigerian Stock Exchange All Share Index (NSE ASI) shed 407.88 points or
1.62% from its opening figure of 25,959.95 and closed down at 24,959.95
points. The drop was strictly linked to traders taking short profit
from most of the banking stocks that have returned so much due to
favourable market fundamentals. Meanwhile the market capitalization of
the listed equities closed up at N7.97 trillion.

NSE-30 Index shed 3.21 points or 0.30%
while NSE Banking and NSE-Oil/Gas closed up by 0.01% and 0.80%
respectively and NSE Insurance and NSE Food/Beverages closed in the red
by 1.21% and 0.04% in that order. 50 stocks end the week below their
various opening prices, 35 gained and 118 ends the week on a flat note.
Gaining and Losing equities did 42.86% each of the market volume while
unchanged stock accounted for the remaining 14.28%.

Market outlook

If the market will follow the trend,
then traders should see a recovery during the new week. Ordinarily,
this should come within the first two trading days of the week. Traders
are to watch closely and take strategic positions in adjusting stocks.
Investors are to clearly avoid panic exit, as most equities promise to
hit new highs on recovery.

Juli Plc

Juli Plc was incorporated on September
14, 1972 as a private liability company under the name Juli Pharmacy
Limited to transact the following businesses; Marketing of wholesales
& Retail of Pharmaceuticals, Running of Super-Market &
Laboratory Services.

The company went public through an
offer for subscription on February 10, 1986 and was listed on November
7, 1986 as the first indigenously promoted company in Nigeria to be
quoted on The Nigerian Stock Exchange. Its name was changed from Juli
Pharmacy Plc to Juli Plc on August 22, 1991 to reflect the flexibility
in its marketing strategy.

The company’s affairs are scrutinized
by 7-man board headed by Julius Adelusi-Adeluyi who doubles as the
chairman and chief executive officer. The day-to-day management team is
lead by Oludare Olubamise who holds the office of Managing Director. He
sits upon four other management members.

Juli Plc is listed on the emerging
market section of The Nigerian Stock Exchange. It is one of the few
actively traded stocks in this sub-sector and currently has 178,000,000
ordinary outstanding numbers of shares 100% owned by Nigerians.

Recent corporate performance

The company recently released its Q3
results for the period ended September 30, 2010. A cursory view of the
scorecards revealed that performance was mixed. Sales revenue within
the period dissipated by 12.66% ostensibly high operating expenses.
Sales dipped from N216 million in Q3 2009 to N188.65 million. It had a
tax holiday as such PBT and PAT retained same figure and dipped by
35.45% respectively against Q3 2009 figures. For detail see the table
below.

NOTE: Juli is not a liquid stock and currently sells at N3.05. It is over priced at current position of performance indexes.

Union Bank Nigeria Plc

Directors of Union Bank Nigeria Plc
yesterday reported its unaudited Q3 results for the period ended
September 30, 2010 in the market. Examination on the available figures
showed mixed performance.

It is heartwarming to note that the
stallion bank’s negative bottom line value of N127.89 billion in Q3 ‘09
had returned a profit value of N6.81 billion in Q3 ‘10. It is worth
recalling that the magnitude of the aforementioned loss in Q3 ‘09 was
as a result of colossal provision for bad debt at the instance of CBN.

Interim Q3 revenue dropped by 40% from
N142.62 billion in Q3 ‘09 to N85.57 billion. This was ultimately due to
16.58% slashed in depositors’ fund in the bank. Irrespective of the dip
in revenue, bottom line grew by 105.32% at N6.81 billion to herald
important era in Union Bank. Marginal 0.64% growth in cash and bank
balances showed that UBN was liquid within Q3 ‘10. Major concern on UBN
accounts remains net liability of N244.15 billion in the stakeholders’
equity position. It is expected that the net liability will be wiped
off by the time AMCON picks up UBN’s non-performing loans and existing
margin loans. Loans and advances within the period dropped by 20.96% at
N371.20 billion.

Further analysis revealed that Q3 EPS
stood at 50 kobo against LPS of 947 kobo in Q3 ‘09. At current market
price of N5.00 PE multiple of 10 was computed. The bank recorded a net
loss of 3% in capital employed.

OBSERVATION: The ability of the
management to effectively consolidate on this recovery through
efficient use of human capital and improve service delivery to
customers is a major challenge the bank faces henceforth.

Total Nigeria Plc

The directors of Petroleum Giant, Total
Nigeria Plc had informed the Exchange that it will be paying interim
dividend of N2.00 per share to its shareholders for the period ended
September 30, 2010. Recall that Q3 result was recently reported in the
market. It had an EPS N12.26 and stakeholders’ equity’s return of 50%.
The register of members closes on November 30, 2010 while payment date
is December 13, 2010.

Report on the otc market for FGN bonds

A total turnover of 88.7 million units
valued at N74.68 billion exchanged in 700 deals was recorded last week,
in contrast to a total of 184.43 million units worth N179.78 billion in
1,068 deals during the week ended Thursday, November 11, 2010.

The most active bond (measured by
turnover volume) was the 10.00% FGN July 2030 (7th FGN Bond 2030 Series
3) with a traded volume of 37.6 million units valued at N28.84 billion
in 343 deals. This was followed by 4.00% FGN April 2015 (7th FGN Bond
2015 Series 2) with a traded volume of 19.2 million units valued at
N14.48 billion in 181 deals.

Nine (9) of the available thirty-five (35) FGN Bonds were traded
during the week, compared with twenty-one (21) in the in the preceding
week.</

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Painting for a resurgence in art

Painting for a resurgence in art

After a 14-year exhibition hiatus, the duo of Gbenga Ajiboye and
Ayoola Mudashiru are set to re-ignite the Nigerian art space with new works,
using mainly oil and acrylic on canvas and paper. A wide range of
experimentation with watercolour, sawdust, and linear painting will be on
display in 60 works of art that will be on show at the week-long exhibition,
which opens at Wangbojes Art Gallery in Lagos, next weekend.

Ajiboye and Mudashiru, graduates of the Department of Fine Art
in the old University of Ife (now Obafemi Awolowo University) where they
majored in Painting, last held a joint exhibition in 1996.

Genesis

Following their graduation in 1992 and 1993 respectively, the
two discovered that they had an artistic connection, and their 1996 exhibition
at the National Museum, Lagos, was titled ‘Genesis’. They have maintained their
individual levels of art production over the years, but the success of the
Genesis exhibition has remained a high point. And so, after requests for more
from visitors to that earlier exhibition, the artists decided to do a
long-awaited follow-up with ‘Resurgence’.

Works to be exhibited include paintings inspired by different
cultural influences. Ajiboye’s new works incorporate signs and symbols of the
Yoruba culture from centuries ago. His pieces like ‘Mother’s Love’, ‘Not Our
Will’, and ‘Family Portrait’ take their cue from what he calls ‘Cave Paintings’
from the Yoruba stone age.

Mudashiru, who has been resident in Abuja, describes himself as
an artist who is highly attracted to the “linear way of painting”. His works in
‘Resurgence’ are inspired by motifs used in the Hausa/Fulani styled hats or
caps. The ‘Hula (cap in Hausa) motifs’ inform his various mediums and
expressions in the coming exhibition.

With careers in the civil service for Mudashiru and a stint in
advertising for Ajiboye, the artists acknowledge that the combination of their
day-jobs with art has not been a fulfilling experience. After a thorough
evaluation and self-discovery, they have decided to stage a sustainable
comeback in the art world.

“There are a lot of paintings in me that are crying out for
expression and, listening to this inner voice, I started dolling them out and
now I have a collector’s item,” Ajiboye said of his exit from the advertising
world. “We now plan to be holding this exhibition annually henceforth,” he
confirmed.

Ajiboye and Mudashiru’s works are, to a large extent, inspired
by music; they are great lovers of jazz. “Whenever I listen to jazz, it takes
me to another world entirely and when I am back, I flow with diverse ideas for
my expressions,” said Ajiboye.

While Mudashiru also favours jazz, he admits that some of his
works are inspired by everyday music, such “a painting based on MI’s recent
line in one of his rap songs: ‘I’m a chicken, not a rooster…'”

Challenges

Among difficulties encountered in planning ‘Resurgence’ is the
unsuccessful bid to hold the exhibition where it all began for them as joint
collaborators: the National Museum where ‘Genesis’ held 14 years ago.

To Ajiboye’s dismay, “We were told by officials [that] the
Museum is now to be used for ‘their own thing’ of preserving the nation’s
relics; yet, they have a gallery that now looks like a graveyard.”

“I wonder how they want to attract the crowd to the museum if
the gallery cannot be opened to exhibitors who will be lured to other departments
of the museum after a viewing pleasure.”

The duo agree on what they consider to be the bane of the
Nigerian art community. As Ajiboye observed, “We don’t build young collectors
and new collectors, such as someone who has just gotten a job and needs to
decorate a new home.”

“No matter how expensive a piece of furniture is, it can only be
complemented with an art work on the wall or elsewhere in the room, which will
bring out the true value of the furniture. Therefore, people should imbibe the
habit of purchasing art works, which will always appreciate in value as times
goes on, whereas the expensive furniture depreciates,” Ajiboye said.

The two artists also argued that a curriculum should be
introduced in schools for people to appreciate art, as is done overseas. This,
they believe, will help to develop people who know “the art behind the art”, so
that professional critics will come to the fore.

“It is unfortunate that artists are also the critics in this
part of the world. We need to have professional critics who, with few words,
can add an eternal value to a piece of art,” opined Mudashiru.

“The essence of art needs to be resurged in our country, to
enhance our thinking mentality, as artworks are interactive and engaging with
people continually. This is what we aim to achieve with our exhibition,” he
added.

The exhibition’s opening event will be chaired by Idowu
Falekulo, CEO, Addlo Properties Nigeria Limited; with Babasehinde Ademuleya;
Senior Lecturer, Department of Fine Art, OAU, as special guest of honour.
Speaker at the occasion will be ‘Araism’ artist, Mufu Onifade.

Resurgence opens at 3pm on
Saturday, November 27, at Wangbojes Art Gallery, Foreshore Towers, 2a Osborne
Road, Ikoyi, Lagos. It is open to the public until December 3.

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