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Stockbrokers against capital raise

Stockbrokers against capital raise

Plans by the Securities and Exchange Commission (SEC) to raise the minimum capital for capital market operators is causing upset at the Nigerian capital market.

Operators who perceive that the commission is contemplating moves in this direction, said the regulators should instead work at improving investor confidence and efficiency in the system.

Lanre Oloyi, SEC’s spokesperson, said though the commission had muted the idea in the past, he is not aware of the latest development, he said in a telephone response.

No official communication

Joshua Omokehinde, managing director of Marimpex Finance and Investment Limited, a stock broking firm, said there have been plans in the past for an increase, adding that there is no official communication from the commission to operators on the issue.

Mr. Omokehinde said the commission should shelve whatever plans it has on increasing minimum capital, as the market is in a fragile condition at the moment.

“It is the anticipation of increase in minimum capital that brought about the problem we have in the capital market today, as many stock broking firms began to undertake margin loans in order to increase the volume of their business and shore up their capital base,” he said.

He said while an increase in capital for capital market operators may be desireable, it would not be feasible for now, as it would plunge the market into further crisis.

“Stockbrokers act as intermediaries and so may not need too much capital to operate. If the market is efficient, we would not have the kind of problems we are faced with today,” he said.

Integrity, not huge capital

Mr. Omokehinde said the major issue in the capital market is integrity, and not huge capital.

“Some small operators even have more integrity than the big firms. SEC should be able to know those firms that have integrity and label them as such,” he said.

SEC, in April 2007, announced a new capital base of N1 billion for stock broking firms from N70 million; while issuing houses’ capital base was increased to N2 billion from N150 million. The deadline for compliance was December 2008.

Prior to that, the capital was raised in December 2005 from N20 million, and N40 million for stock broking firms and issuing houses. However, with the global financial crisis, which also led to the massive depreciation in the Nigerian capital market, the commission had to put this latest increase on hold.

The report of the February 2009 Dotun Suleiman-led SEC committee on the Nigerian Capital Market recommended that capital requirements for different market operators should not be unilaterally set at a uniform amount for all operators within a category.

The report suggested that start-up capital requirements for new operators should be based on minimum required start-up costs plus risk-adjusted weightings (to be reviewed periodically).

“For dealers, capital requirements should be determined on a risk-adjusted basis, increasing as levels of risk taking grows for each individual dealer, and weighted in line with the risk profile of instruments traded and assets held,” the report said.

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Stock market closes on a negative note

Stock market closes on a negative note

The retreat witnessed at the Nigerian Stock Exchange (NSE) on Tuesday continued yesterday, as the performance of equities closed on a negative note.

The market capitalisation of 199 first-tier securities closed lower, as market net worth dropped by N78.64 billion at the close of Wednesday’s transaction. The NSE All-Share Index retreated by 1.26 percent, to close on a negative note.

Market watchers said equities’ value declined because short term traders focused on reaping part of the attractive profit recorded in recent rally sessions.

Equity research analysts at GTI Capital Limited, a stock brokerage firm, said most investors were scared-off the market due to the slight drop noticed on Tuesday.

“It sounds wise to take the little profit before it goes with pull back. Nevertheless, we advise that all investment decision should be linked with trend on each security; panic selling should be strictly avoided,” the analysts said.

The Exchange sectoral indexes reflected selling activities yesterday as NSE-30, which measures the performance of blue chips in the market, dropped by 1.21 percent. The NSE Food/Beverages dropped the highest points by 2.25 percent, followed by Banking, which dropped by 1.97 percent; the Oil/Gas dropped by 0.67 percent, while the NSE Insurance, the only gainer, appreciated by 0.23 percent.

Most active

The banking subsector on Wednesday led on the most active subsector table with 311.78 million shares valued at N1.65 billion, as against the 217.45 million units valued at N1.92 billion recorded on Tuesday.

The volume in the subsector was driven by shares of Unity Bank, Oceanic Bank, BankPHB, First Bank, and Guaranty Trust Bank. The total volume of 183.51 million units, valued at N899.87 billion, traded in the shares of the five stocks, accounted for 45.36 percent of the entire market volume.

Gainers decrease

The number of stocks that gained at the close of trading session on Wednesday closed lower at 14, as against 30 stocks recorded the previous day, while losers closed higher at 38, compared with the 28 recorded on Tuesday.

Custodian Insurance and Honeywell Flour topped the price gainers’ chart with an increase of 13 kobo and 11 kobo on their opening prices of N2.62 and N5.27 per share respectively. On the flip side, Flour Mills and Cadbury topped the chart with a decrease of N1.54 and N1.48, to close at N71.01 and N28.31 per share respectively.

Meanwhile, the Exchange, in a statement on Wednesday, said that Dangote Cement, which is billed for listing on 26th October, has submitted its unaudited results for nine months ended September 30.

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OIL POLITICS: Resurrection in Chile

OIL POLITICS:
Resurrection in Chile

The live coverage of the rescue of the 33 miners who were entombed in Chile’s copper and gold mine for 69 days captured a global audience. It was one of the few moments when good news eclipsed the bad. It was a celebration of human resilience and a picture of the efforts of humanity to search for resources at extreme locations. Spare a moment to ask how many miners would have emerged alive if such an accident had occurred in your country.

In all the celebrations that followed the rescue, few questions were asked about why the mine collapsed in the first place. Was this a rare occurrence here and elsewhere? It is reported that the San Jose mine was so unsafe in 2007 that it had to be closed down for a while. We note that on 30 July, six days before the mine accident, the Chilean labour department had warned again of “serious safety deficiencies.” Until the 33 miners got sealed up in the mines, the government is not known to have taken any action.

Official data in Chile shows that 373 workers died in mining accidents in the last decade. In 2010 alone, 31 lives have been lost.

The mining sector is Chile’s main economic powerhouse. The largely privatised mines reap huge profits. However, fatal mining accidents in this country is as high as 39 every year. As the miners emerged from the tomb, the government lapped up the limelight – who wouldn’t – and the applause that resounded across the globe. It was also interesting to see President Evo Morales of Bolivia visiting the mine to meet with the lone Bolivian miner who was among the rescued men. This miner had immigrated to Chile for lack of employment in his home country. President Morales offered the man a promise of a job as well as a house. Hopefully, it will not be a job in a Bolivian mine.

With regards to the San Jose mine, in 2007, there was a complaint filed at the Chilean appeals court and the National Geology and Mining Service by workers of the company together with unions of other companies following deaths in the mines. At that time, the workers demanded the closure of the mine due to poor mine ventilation and lack of proper escape routes. The mine was shut on 22 September 2007 and reopened in 2008, without any changes in the safety provisions.

Stories of industrial accidents emerge regularly around the oil industry. The oil spills of the Niger Delta are daily in occurrence. The massive sludge spill from an aluminium company in Hungary raised huge safety issues about industrial practices, but was almost eclipsed by the reports of the Chilean rescue efforts. As this piece is being written, reports are emerging of a collapsed mining tunnel in Ecuador where four miners are said to be trapped.

As pictures of the families of the Chilean miners camping at the site ran on television screens and websites, viewers could not pick out the fact that some key players were missing. We are talking about figures such as Alejandro Bohn and Marcelo Kemen, the businessmen owners of the San Esteban mines. They left the mine two days after information was obtained that the miners were alive. They did not return there for over two months.

Mining deaths

Thousands of deaths are recorded annually in mining accidents around the world. Recorded figures run as high as 12,000 deaths of workers in the sector every year. In China alone, 2,631 miners died in 2009, while 200 perished in Sierra Leone. In the USA, 26 fatal accidents at her mines were recorded in 2007, and 23 in 2008.

Recent deaths from mine accidents in South Africa are 309 in 1999 while 220 died in 2007. In 2008, the deaths added up to 171, while 165 died in 2009. In the first half of this year, 67 deaths were recorded. A rockfall accident in the Marikana mine killed 6 mine workers.

It is shocking that only 24 countries have ratified the Safety and Health in Mines Convention of the International Labour Organisation (ILO) signed in 1995. Chile has not ratified this instrument.

Some analysts have argued that there is already no need for certain minerals to be mined anymore, as enough of the substance have already been brought out of the mines; an example is gold.

As for crude oil, there is an urgent need for the world to move away from fossil fuels and embrace renewable energy sources. The direct and indirect deaths resulting from mining and utilization of these products should urge us to pause and think.

The resurrection of the Chilean miners, and their return from the bowels of the earth may receive our applause, but we cannot continue to push our luck with unsafe mines, reckless pursuit of capital, and cheap dispensation of human lives.

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Ogun party leader abducted over registration forms

Ogun party leader abducted over registration forms

Chairman of Action
Congress of Nigeria {ACN} in Abeokuta South Local Government Area of
Ogun State, Bisiriyu Semiu Adebare was at the weekend abducted by
suspected party thugs.

Sources say the
victim was forcefully taken from his private office at Quarry road,
Abeokuta by armed men who allegedly demanded for the party’s
registration forms and register, which they needed to increase the
number of party members in the camp of their suspected sponsor.

After the
abduction, the victim was allegedly driven to the home of one of the
party leaders where he was said to have being beaten blue and black as
part of efforts to collect the register from him.

Relief came his way
later after obeying the wish of his abductors, but that was not before
his dress was torn to shreds during his captivity.

On regaining his
freedom, the victim headed straight to the police station where he
lodged a petition to the police authority narrating his ordeal in the
hand of his alleged captors, who have since disappeared into thin air
as at the time of this report.

The petition,
titled, ‘Abduction and Theft,’ was addressed to the Area Commander of
Nigeria Police Force, Zone 2 located in Oke-Ilewo area of the town.

Mr Adebare, while
narrating the ugly experience said: “I was in my office when these
political thugs stormed my place asking for our party local government
membership registration. They threatened to kill me if I do not provide
it for them.

“I told them the
registration register is in the party secretariat and that where they
came is my private office, but this explanation did not go down with
them. They forced me at gun point into the vehicle they brought and
took me away.

“I was abducted,
molested and stripped naked and taken away with one car. They said they
were looking for membership card in which I told them to go to their
various wards to register. I would have been killed if it was not
because one of the boys in my office recognized three of them.” He said
he had equally informed the state chairman of the party, Tajudeen Bello
about the incident.

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Senate to deliberate on Ogun Assembly crisis

Senate to deliberate on Ogun Assembly crisis

The unresolved
crisis of the Ogun State House of Assembly, which led security
operatives to seal the Assembly complex over a month ago, will be
discussed by the Senate this week.

A Senator in the
National Assembly representing Ogun State, Lekan Mustapha, disclosed
this weekend in an interview with journalists in Ijebu-Ode.

The house had given
the lawmakers a week, which expired at the weekend, to resume
deliberations or have the powers to make laws for the state taken over
by Representatives. The House of Representatives is expected to
announce its decision during the plenary on Tuesday.

Mr Mustapaha said
the Senate has also agreed to intervene in the crisis, which started
after a group of nine lawmakers in the house met to suspend 15 of their
colleagues, including the Speaker of the assembly.

“I can tell you
that within a very short time, a decision will be taken by the Senate,
that decision I don’t know what it will be,” he said. “Definitely, a
decision will be taken. What the House of Representatives has done is a
welcome development. Definitely the reaction of the Senate will also
come.

“We are all members
of the National Assembly, when they do something like that, it comes to
the Senate for our concurrent agreement and if we do it first, it also
go to House of Representatives for concurrent. We have a bond to take a
decision on it.”

Mr Mustapaha, who
is Chairman of the Senate Committe on Interior, said it is the
responsibility of national leaders to take steps to resolve the issue
without minding whose ox is gored.

“A lot of
insinuations is being peddled round that people are not willing to
resolve the matter, because certain individuals are involved and don’t
want to offend those people. I don’t want to believe that, because laws
are not made for specific people, laws are made for the generality of
the people,” he said.

Mr Mustapha, who is also seeking second term in the upper chambers,
added that he was sure something will be done about the matter in the
next few days, “because we can’t continue like this and take people for
granted”.

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Group seeks Olubadan’s intervention in union feud

Group seeks Olubadan’s intervention in union feud

An Ibadan-based group, Touch-Bearers,
has called on the Olubadan of Ibadan, Samuel Odulana, Odugade 1, to
intervene in the internal wrangling of the Oyo state council of the
National Union of Road Transport Workers (NURTW) to avoid the
bloodletting associated with the protracted fight.

The group, in a statement made
available to journalists on Sunday and jointly signed by Muse Popoola
and Dupe Adewoye, Chairman and secretary respectively, also called on
other eminent Ibadan indigenes to call the leaders of the two major
factions in the union, Messrs Lateef Akionsola (aka Tokyo) and Lateef
Salako (aka Elewe-Omo) to order for the peace and tranquility of the
state.

“NURTW crisis should be seen as a tiny
spark of fire that can burn a whole house down if care is not taken,”
says the group, while stressing that since the two factional leaders
are from Ibadan, they must consider sheathing their swords and allow
peace and security of lives and property to reign in the land.

The release also urged the state
government to lift the proscription order on the union and allow it to
continue to function like other registered trade union in the state, as
it equally urged the leaders of the union to stop giving the world the
impression that their union is a military arm of the successive state
governments used to intimidate political opponents.

Reiterating the need for the Oba to intervene, the posited that
“only bastards in the society can disagree with the orders and
directives of a Royal father. The two leaders should see each other as
brothers, after all, Eleweomo is like a son to Tokyo”.

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THE POLITICAL MANN: Obama fights his policy

THE POLITICAL MANN: Obama fights his policy

Barack Obama
isn’t just presiding this week over what many of his supporters
consider a civil rights milestone, he’s fighting it.

Last month, a
judge overturned ‘Don’t Ask, Don’t Tell,’ the U.S. military’s policy
forcing gay and lesbian personnel to keep their sexuality secret or
face dismissal.

As a result, the Pentagon told recruiters that for the first time they can accept openly gay and lesbian applicants.

Mr Obama pledged to help end to ‘Don’t Ask, Don’t Tell’ and you might expect him to welcome the judgment.

But the White
House says it’s up to Congress to repeal the law, not the president or
the courts. Congress isn’t rushing to do it.

The judge’s ruling
broke the logjam but the Obama administration is appealing, hoping a
higher court will reverse the ruling and let Congress act.

The battle raged in the courts this week and the administration convinced other judges to temporarily restore the policy.

But it makes for a strange predicament for Obama: fighting a policy
he supports, that was pushed forward by a judge, without the help the
president promised.

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Commissioner’s 81-yr-old mom regains freedom

Commissioner’s 81-yr-old mom regains freedom

The joy of the
families of the Ondo State Commissioner for Culture and Tourism, Tola
Wewe knew no bounds yesterday as the octogenarian mother of the
commissioner, Pege Wewe and her grand-daughter, Rachael Lawrence, were
freed from suspected militants.

The freedom came about nine days after the duo were abducted at Sabomi area of Ese-Odo Local government area of the state.

NEXT gathered that the women, who were ferried out of Ese-Odo Local government, regained their freedom in Sapele, Delta State.

The rescue of the
women was made possible when the people of Sapele community noticed the
movement of strange faces in their community.

The community
raised alarm and reported the case to the police in Sapele division who
responded to the distress call and rescued the woman and her grand
daughter although the kidnappers escaped from the scene. Police in the
Sapele Police division later handed the victims to the men of the Ondo
State Police Command in Akure.

Spokesperson of the Ondo State Police Command, Adeniran Aremu, said the old woman was released in good condition .

Mr Aremu, who noted
that the command had earlier arrested two suspects in connection with
the kidnapping, said “the police was still investigating the case. We
will make sure that we get to the root of the matter, the woman is in
good condition of health when she was freed.”

Hunger strike

Around 2 pm in the
afternoon, the woman and her son moved to the governor’s office where
they were welcomed by the state Governor, Olusegun Mimiko. They also
visited the office of the State Security Service situated at Alagabaka
to official report their release. A source however claimed that an
undisclosed sum was paid to the kidnappers who had earlier demanded for
N50 million. But Mr. Wewe said no ransom was paid to the abductors,
thanking security agencies and the state government for their role in
ensuring his mother was released.

“I am grateful to
the Almighty God that my mother and the girl have been released. I
thank the state government and the security agencies for their
concern”, he said.

Sources say that 81-year-old Mrs. Wewe was on hunger strike throughout the period she was with her abductors.

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Hoodlums disrupt party registration in Oyo

Hoodlums disrupt party registration in Oyo

The membership
registration exercise of the Action Congress of Nigeria (CAN) in Oyo
State, at the weekend suffered a slight setback as hoodlums believed to
be loyal to a governorship aspirant within the party attempted to
hijack the registration materials.

Although no one died in the ensuing scuffle, many party members suffered injuries.

The police have arrested four men suspected to be behind the act.

The incident
happened at Oyo North and Oyo Central Senatorial Districts where the
hoodlums, wielding machetes and other dangerous weapons, stormed the
venue of the registration and attempted to snatch and make away with
the registration materials being distributed by the officials ahead of
the commencement of the exercise.

The incident led to the suspension of the registration of members in Afijio and other parts of Oke-Ogun area of the state.

One of the
governorship aspirants, Abiola Ajimobi said he and members of his group
boycotted the exercise because of the attempt by some people to hijack
the materials.

Minor skirmishes

The leader of the
party in the state and a former governor, Lam Adesina said the exercise
was successful, and the party will give another opportunity to the
group that boycotted it to participate. He said that only the
electorate will chose all political office holders in the next election.

Similar situation
played out at Ward 9 of the Ibadan South local government of the state,
where about 25 cutlass-wielding hoodlums reportedly swooped on the
registering members to cart away the materials, but the people
confronted their attackers.

Despite the success
of the exercise in many parts of the state, the hitches in some part
have created bad-blood among the contestants, who are, however,
unanimous in the belief that nothing will be allowed to affect the
fortune of the party in 2011.

Femi Lanlehin,
Kazeem Adedeji, Wale Oyemakinde, Soji Akanbi and other aspirants
explained that such “minor skirmishes” can not be ruled out in a place
where nine aspirants are vying for a single seat.

Mr. Adesina assured
members that the culture of internal democracy currently imbibed by the
party will give them victory over the ruling Peoples Democratic Party
in the state in the next election.

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‘I won’t accept consensus candidate’

‘I won’t accept consensus candidate’

A Presidential
candidate of the Peoples Democratic Party, Sarah Jibril, has criticised
the move by some northern elders to present a consensus northern
candidate to contest against President Jonathan in next year’s
elections.

Ms Jibril in an
interview with the News Agency of Nigeria (NAN) on Sunday in Bauchi
said that she will not step down for any consensus candidate
“considering the ugly track records of most of the aspirants”.

“Zoning is real but
I wonder why some PDP top shots are running away from it. I also wonder
why fellow Christians who are aware of the zoning formula are calling
on President Goodluck Jonathan, who was a party to the arrangement, to
contest for the 2011 polls. I still wonder why Obasanjo, Abeh, Nwodo
and a host of them who signed the pact and which Obasanjo was a
beneficiary are trying to abort the tenet of the party,’’ Ms. Jibril
asked.

Speaking at the
17th Annual Convention of the Women Wing of the Christian Association
of Nigeria (CAN) in Bauchi, she urged Nigerians to shun money politics,
saying they should elect only credible candidates.

According to her,
it is time for women to take over the mantle of leadership of the
country as obtained in Liberia. She also alleged that the men had
wasted the 50 years of the country’s independence without anything
tangible to show for it.

“How long will we
continue to bring in people who have continuously ruined Nigeria and
turned our country into bankruptcy? How can we continue to sit behind
and allow other selected few to choose leaders for us,’’ Ms. Jibril
said.

She promised to rescue the country from the “claws’’ of unpatriotic and evil leaders.

“No nonsense will be tolerated this time around, if I am given the mandate to serve as president’.

“The so-called
politicians in the country are characterized by deceits and I urge the
electorate to shun them, especially the money bags who will like to
come to power at all cost.”

NAN

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