Nigeria Content Online

Years ago, when I
first started working on computers, I was asked to repair two computers
that were at one of the tills in the old Gateway Bank. One look inside
those systems, and no one could convince me that they were not a health
hazard. I told my boss that I didn’t think that working on them would
be worth anybody’s while, as the amount of sludge that had accumulated
on the motherboards was just too much. Two things, to be honest; I was
just being lazy. But I was right.

You see, I was
ordered to go ahead and work on the computers, and having locked myself
into a room with them, proceeded to use a hand-jet first to blow the
dust off the insides of those computers. However, it all turned out to
be a waste of time, as the computers died soon afterwards anyway.
Hazarding a guess now, I think it was the extras, such as sludge, that
caused it. Maybe it was the fact that I was just a trainee then, but we
will never know.

What I do know for
a fact now is that dust is a particularly fine killer of computers.
Dust particles vary in size from as small as microns to as large as
micrometers. The larger particles tend to fall and stick to surfaces,
whilst the smaller ones tend to remain in the air. Dust particles
contain anything from skin cells, liquids (water or oils), organic
materials, minerals, metals, all depending on the environment in
question.

In a normal office
environment, the problems associated with dust are usually kept to a
minimum. Nevertheless, over time, there are certain crevices that your
cleaner cannot get to, and one of those crevices is the inside of your
computer.

Dust is dangerous
What effect can dust have on computers and electrical equipment? Dust
can have serious effects on our health, from causing asthma and
allergies, to more severe respiratory problems. Like us, our computers
need to breathe. Dust can block filters and prevent air from flowing
through the computer. This makes it act as an insulator, which can add
to the heat build up, thus causing it to overheat.

Dust can also cause
a short in circuit boards and integrated circuits, leading to the
computer crash and in some cases, even catch fire. It can clog up some
of the computer’s moving parts, such as the disk drives and even block
input devices such as USB ports.

There are a number
of ways of eliminating and reducing dust. Protective covers can be used
as a temporary but cheap method of preventing dust particles from
getting into your computer.

However, a more
permanent approach to protecting your computer is to use a specialist
computer enclosure. These enclosures can house your existing computers,
protecting them from dust, but with the added advantage of allowing you
to replace or upgrade your IT whilst still keeping the same enclosures,
which can also protect your equipment from fire and impact. Nothing,
though, beats a routing clean-up of the entire system. Open it up and
have a hand-jet run over it.

While it may not look like much, dust is actually responsible for
hours upon hours of downtime. Protect your computer equipment and you
can sleep easily!

An increasing
number of African nations and state-owned firms are expected to tap
international bond markets in the next few years, helped by investors’
hunger for emerging market debt and marking an upswing in fees for
Africa-focused banks.

The market may also
eventually see issuance by corporations in some of the larger
sub-Saharan economies outside South Africa, such as Nigeria and Angola.

South African
state-owned power utility, Eskom, and Zambia are just two expected
issuers in 2011. Angola, Tanzania, and Uganda also have dollar-bond
plans in the pipeline, while Kenya is seriously considering an issuance
if domestic yields rise, a senior Treasury official told Reuters on
Monday. Eskom has said it will tap U.S. and European bond markets as
part of a plan to raise up to $6.9 billion over the next three years,
while Zambia, Africa’s largest copper producer, has said it plans to
issue a $500 million overseas bond.

“I am convinced we
will see substantial issuance from Africa over the next two, three
years,” said Florian von Hartig, global head of debt capital markets at
South Africa’s Standard Bank.

“The sovereigns
will take the lead, but financial institutions and corporates, maybe
from Nigeria, maybe from Ghana, maybe from Angola or Kenya, will follow
suit,” he said in an interview on the sidelines of a capital markets
conference in Cape Town.

With interest rates
in the developed world hovering close to zero, investors are ploughing
into emerging market debt for higher returns. The yield on Ghana’s
10-year Eurobond maturing in 2017 is around 6 percent, while a similar
bond from Gabon is offering 5.2 percent.

Given the external
demand, issuing overseas can be a cheaper option for African
governments and corporations than their relatively small domestic debt
markets, provided they can offer a bond big enough to whet foreign
appetite.

Ghana’s Eurobond
was issued with a coupon of 8.5 percent, compared with the 13.95
percent on a three-year note issued locally the same year.

Big inflows

As of last month,
emerging market bond funds had attracted more than $41 billion this
year, according to data from research firm, EPFR Global, and more
investors are now looking beyond flagship emerging market issuers, such
as Mexico or Turkey.

Demand for African
overseas bonds will continue to hinge on the creditworthiness of
issuers, availability of easy money globally, and the level of rates
elsewhere, said Razia Khan, head of Africa research at Standard
Chartered in London.

She reckons the long-term outlook for issuances is strong, even with worries about global risk appetite.

“That window for
African issuance might close rather dramatically depending on what
happens with global risk appetite, of course, but in the longer term,
with African economies making real progress, and emerging in their own
right, expect to see much more issuance regardless,” Ms. Khan said.

In sub-Saharan
Africa, overseas bond issuance remains the domain of governments,
state-owned enterprises, and a handful of corporations in South Africa,
the continent’s largest economy and home to some of its biggest
companies.

Naspers, Africa’s
largest media group and an active acquirer of media and Internet firms
in emerging markets, issued a seven-year, $700 million bond with a
6.375 percent coupon in July. The company said some of the funding
would go toward acquisitions.

More South African
companies are likely to issue overseas debt to fund foreign ventures,
reckons Prasanna Nana, head of debt capital markets for South Africa at
Absa Capital, the investment banking arm of South Africa’s Absa.

“At the moment, the
large corporates can borrow at very good rates in rands in South
Africa, and the rand is what most of them need, so there is no real
push to go offshore. But I think once M&A activity starts picking
up, we might see more offshore activity,” Mr. Nana said.

Standard Bank’s von
Hartig is betting that corporations outside South Africa will begin to
tap overseas markets, although a necessary minimum issuance of
$250-$300 million will deter all but the biggest few firms in the
region. Some of the largest Nigerian and Angolan banks could be likely
candidates, he said.

Any increase in
bond issuance will be welcomed by international banks, which are
pushing to increase their fees and commissions as a weak global economy
continues to squeeze revenues.

Sub-Saharan debt
issuance totalled $5.6 billion in the first nine months of 2010, down
30 percent from the same period a year earlier, but still well above
the $1.6 billion in the first nine months of 2008, according to Thomson
Reuters data.

Deutsche Bank took the top spot for bookrunner of debt capital markets deals in the region, followed closely by Standard Bank.

Barclays Capital,
the investment banking arm of Barclays, which owns a controlling stake
in South Africa’s Absa, took the top spot globally for debt bookrunner.
In Sub-Saharan Africa, it came in at fifth place.

Third place was occupied by Japan’s Daiwa Securities, while Goldman Sachs took fourth.

The National
Insurance Commission (NAICOM), on Sunday, said it has suspended the
operational licence of Spring Life Assurance Plc with effect from
October 19.

Lucky Fiakpa, the
assistant director, corporate affairs, stated this in a statement made
available to the News Agency of Nigeria (NAN) in Lagos.

He said that NAICOM
was acting in accordance with section 9 of the Insurance Act 2003, and
that this became necessary following the inability of the company to
maintain the statutory minimum capital of N2 billion.

According to him, N2 billion is required as minimum capital for underwriting life insurance business in the country.

The Nigerian
National Petroleum Corporation (NNPC) has outlined a grand plan to
refurbish and upgrade existing units of the Port Harcourt Refining
Company.

This is contained
in a statement signed by Levi Ajuonuma, the group general manager,
public affairs division of the corporation, and made available to News
Agency of Nigeria (NAN) in Abuja, on Sunday.

Mr. Ajuonuma stated
that the upgrading would be done through the execution of a
comprehensive Turn Around Maintenance (TAM) in the months ahead.

The refinery, which has capacity to refine 210,000 barrels per day (bpd), underwent a TAM last in 2000.

A total of 259.24
million shares, valued at N2.28 billion, were traded in 5,233 deals on
the Nigerian Stock Exchange (NSE) on Monday.

This was against the 385.83 million shares, valued at N4.60 billion, exchanged in 6,317 deals on Friday.

The News Agency of
Nigeria (NAN) reports that weekly transactions on the NSE resumed on a
negative note on Monday, with the indicators sliding by 0.31 percent.

The NSE All-share index lost 79.09 points, while the market capitalisation depreciated by N25 billion.

The index, which opened at 24,959.95, closed at 24,880.86; while the
market capitalisation closed lower at N7.945 trillion, from the N7.970
trillion recorded on Friday.

South Africa’s rand
moved in a narrow range against the dollar on Monday, leaning to the
weaker side mostly in line with the euro, while stocks closed virtually
unchanged after a similarly lacklustre session.

The rand dipped to
an intra-day low of 7.0190 against the greenback, before coming back to
7.0050 by 1540 GMT, 0.29 percent off Friday’s close at 6.9850.

“The rand weakened
mostly on the back of a slightly weaker euro. There’s still concerns
around this Irish contagion,” Rand Merchant Bank currency trader,
Brigid Taylor, said.

Private Moroccan
holding, Saham Group, had bought a controlling stake in insurance firm,
Colina, to create synergies with its Moroccan affiliate, CNIA Saada,
and open access to lucrative African markets.

Saham becomes,
therefore, the first Moroccan firm to expand in Africa’s insurance
sector after a push over the past 10 years by Moroccan banks such as
Attijariwafa Bank and BMCE Bank, to tap more growth abroad.

Saham’s chairman,
Hafid Elalamy, told Reuters his group wants to build up partnerships
with Moroccan banks present in Africa to expand Colina’s business.

The European Union
said on Monday it was giving Mauritius 140 million euros in direct
budgetary assistance for 2011-2013, to help the Indian Ocean island’s
reforms towards becoming a high-growth economy.

Alessandro Mariani,
the EU’s ambassador to Mauritius, said the new grant was a substantial
increase over a previous allocation, which reflected the island’s
performance on reforms of its economy and the sugar sector.

Mauritian sugar
producers have been hit hard after the European Union cut its
guaranteed price for African, Caribbean and Pacific (ACP) sugar by 36
percent. The final tranche of price cuts took effect in October 2009.

Was he making
polite conversation, or angling for a share of the voter mind ahead of
next year’s polls? As polite conversation, the comment was hard to
ignore. And as a pitch for votes, difficult to take seriously. Either
way, could the president honestly believe that because of “the
deliberate formulation and deft implementation of policies that ensure
faster return on investment” Nigeria has begun to attract more foreign
investment? Thus, the papers reported the theme of President Goodluck
Jonathan’s speech last week, while receiving the letters of credence of
the new Croatian Ambassador to Nigeria.

Of the three
components of foreign investment, Ivica Tomic (the new ambassador),
would have wondered, of which could the president have been speaking?
Obviously, not investment of the portfolio variety. The recent travails
of equities on the floor of the Nigeria Stock Exchange (NSE); and of
the management of the exchange itself are much too familiar. It would,
therefore, be hard for anyone to think that investment (in an
assortment or range of securities, or other types of investment
vehicles) for the sole-purpose of deriving income (as opposed to
participating in the management of the investee firm under a direct
investment) could be thriving in this country. Besides, most experts on
these matters agree that investment of this type is too flighty to
anchor this economy’s need for funds with which to drive growth on.

Which is why one
promptly dismisses the possibility that the president might have had
bank loans in mind during his welcome address to the Croatian diplomat.
If portfolio investment is flighty, then bank loans are decidedly
anathema. Ask transition and emerging economies in east and central
Europe (Croatia, being one of them) about this. The biggest source of
the transmission of the global financial crisis to those economies was
their considerable exposure to lending from parent banks in advanced
European economies to their local subsidiaries. As soon as the crisis
hit, and bank balance sheets the world over came under pressure, the
parent banks called in these loans, and their subsidiaries went under
water. Now, domestic banks in Nigeria are yet to surface from the
morass after their own experience of the Great Recession. The
president, himself, made a lot about this when he assented to the bill
setting up the Asset Management Corporation of Nigeria (AMCON). So,
without doubt, bank loans, as a source of foreign investment cannot be
trending up, at least, not before AMCON repairs the industry’s balance
sheet.

What about foreign
direct investment? That is, investment by non-resident persons and/or
groups in brick and mortar facilities in this country, in the
expectation of profitable returns over the medium – to long-term. With
rates of return in Europe and North America currently at all time lows,
the hurdle rates for such investments here would not be exceptional.
And anecdotal evidence (from the telecommunications sector for example)
indicate that some of the highest rates of return on investment
anywhere in the world are to be met with here. In part, this is because
costs are high. Each such business must generate its own power, source
for its own water supply, install its own security infrastructure, etc.
All of this bid up the domestic cost of doing business – and add a risk
premium to operating in the country.

In the main,
however, the same reason why public infrastructure is not available in
support of domestic businesses, governance failure, is the biggest
reason for the high average revenue per user figures in the country.
How do we establish where the risk premia for doing business in an
economy such as this stops, and where price gouging starts? In the
absence of competent government, this will remain conjectural.

In spite of all these, could this economy genuinely have attracted
new foreign direct investment, especially when we have fallen down all
the league tables that matter: doing business, Transparency
International, the global budget process ranking, etc.? It gets a lot
more counter-intuitive. Same week as the president was offering his
assurances, an Israeli employee with Solel Boneh, a construction
company, was reported to have paid US$170,000 to kidnappers to secure
his release. Moreover, the Movement for the Emancipation of the Niger
Delta (MEND) threatened simultaneous attacks across oil installations
in the Niger Delta!

It’s that time of year again; it comes around so quickly, doesn’t it? For many, the approach to Christmas has become a time of too many expectations, and too much pressure. As the seasonal blitz with its attendant flashing lights, piped carols, and colourful ads, draws near, you find yourself caught up in the whirlwind of activity.

Whether you look forward with excitement to the shopping and preparations, or with some dread at all the disruption, stress and drain on your resources, be careful not to overspend. Here are a few suggestions on how to get through Christmas without throwing your finances into disarray.

Avoid last minute shopping

Are you one of those found in the shopping mall panic buying at 9.30pm on Christmas Eve? Let’s try to change things this year. Shopping under pressure will lead you to overspend, and you are more likely to buy gifts that are not appreciated by the recipients. Shop early; if you begin now, you can shop around for more meaningful, appropriate gifts than you would find in a last minute shopping spree.

Acumulating gifts throughout the year eases the pressure, and you won’t feel the strain of buying several presents all at once. By the time Christmas arrives, hopefully, you will have only a small amount of shopping left to do. After Christmas sales are also a useful way to prepare for next year, as many items are sold at much reduced prices in January.

Stick to a budget

Wouldn’t it be wonderful to be able to buy special gifts for all your loved ones? The reality is that funds are limited. In an ideal world, one should have started to set money aside specifically for Christmas over a period of time, so that when it is time to shop you have the cash in place.

As we get close to Christmas and before the shopping frenzy gets into full gear, put a simple Christmas budget in place. It will help you determine exactly how much you can afford to spend on Christmas and all its trappings: gifts, decorations, Christmas cards, extra food and drink, new clothes, entertainment, phone calls, charitable donations, and travel. Don’t forget to include a little indulgence for yourself.

Add up the total and compare that with what you have available to spend. If it’s more than you can afford, don’t feel pressured to overspend, just look for areas to trim. Remember, most people are in the same boat. If you are wondering whether you should drop a person or family from your list, you can be sure that they are also considering dropping you.

Food is a major Christmas expense

In the run up to Christmas, we tend to buy far too much food, and so much of it will go to waste. Plan your Christmas food requirements now, and make a list of all that you will need. Prices usually go up significantly in early December so bulk-buying some of the non-perishable items, which can be shared with friends and family can take some pressure off your finances, in the week running up to Christmas.

“Making a list, checking it twice”

Once you have a budget, make a list of friends and family for whom you wish to purchase gifts and how much you think you can afford to spend on each person. Remember those who have been particularly helpful through the year, and don’t forget to include a few extra gifts under the tree just in case someone shows up unexpectedly. Sometimes, you receive a gift from someone not on your list and feel obliged to reciprocate.

Avoid borrowing if possible

Don’t borrow money just to pay for a great Christmas. Be realistic and spend what you can comfortably afford today without going into debt. It is usually better to pay with cash to purchase toys and other gifts, rather than to borrow, as the interest cost will make everything more expensive.

It’s the thought that counts not the amount

Most people appreciate a thoughtful gift, something that lifts them and demonstrates love and care, not wealth. Often, gifts of great sentimental value, such as framed photographs, a potted plant, or a special book or CD, aren’t that expensive.

It is also a way of teaching your children by example that thoughtfulness is more important than price. Encourage them to use their talents and present handmade crafts or delicious edible gifts such as homemade biscuits for their grandparents, aunts, and uncles who will treasure these gifts.

Give away “unwanted” gifts

If you look in your cupboards you are bound to find loads of gifts you never found a use for from birthdays and Christmas’ past. There may be sets of cutlery, juicers, engraved glasses that are still in their original boxes that will make ideal gifts this Christmas.

Open any gifts you receive early and rewrap the ones that you will not use and give them to others who will really appreciate them – make sure you keep a list of what came from whom to avoid the embarrassment of giving Uncle Celestine back the same basket of plastic fruit he gave to you!

Christmas Bonus

It’s always nice to have some extra cash over the holiday season. If you are fortunate enough to receive a Christmas bonus or 13th month salary this year, don’t spend it all; put it to good use. It is tempting to plough it all into Christmas festivity, but by spending your entire bonus on short-term expenses, you could be forfeiting a great opportunity for build your savings. After indulging yourself a little, invest the balance in something that will contribute to your long-term financial security.

Gifts that keep giving

The pressure from children to buy the latest high-tech gadget, smart phones, and toys can be overwhelming. Presents that improve personal finances are an ideal gift at Christmas; not only do they outlast expensive toys and gadgets, but they may continue to give, long after the wrappings have been thrown away.

The gift of stock or a lump sum mutual fund investment is a thoughtful financial gift to a young child and could be the start of a rewarding long-term savings plan.

A mutual fund is a professionally managed fund that pools money from many investors and invests in investment securities such as stocks, bonds, and money market instruments. Choose a fund managed by a reputable company with a sound track record. The fund manager will advise you on the most appropriate fund for your purpose. Decide on how much you want to invest, and complete an application form. The company will issue you with a certificate in respect of the investment; this can be presented to the beneficiary.

It’s not very pleasant to have someone dampening your enthusiasm and telling you to be careful and control your spending, but here is a word of caution; many Nigerian families will still be paying for their Christmas indulgencies well into 2011. There is still time to get your finances in some kind of order before the festivities start. Don’t wait until the last minute.

personalfinance@234next.com with your questions and comments. We would love to hear from you. All letters will be considered for publication, and if selected, may be edited.