Archive for nigeriang

Experts predict mix trading performances this quarter

Experts predict mix trading performances this quarter

The weak trading performances witnessed
at the Nigerian Stock Exchange (NSE) during the third quarter of the
year are expected to continue during the last quarter, some finance
experts have said.

Meanwhile, the NSE market
capitalisation closed on Monday at N6.194 trillion after opening the
day at N6.145 trillion, reflecting 0.79 percent upturn or over N49
billion gains.

Olugbenga Emmanuel, a finance analyst
at WealthZone Company, a portfolio management company, said the poor
financial results posted by “many quoted companies will not boost
investors’ confidence” in the last quarter; thus, “the expectation of a
weakened market sentiments.”

Mr. Emmanuel said, “Assuming we saw
positive results in the third quarter, investors’ patronage in the
market will be high during the fourth quarter.”

This is because more investment managers will want to take advantage of the opportunities, he said.

The equity research team at Investment
Option, a business advisory company, said shares selloffs, which
usually characterise trading activities during the last quarter of the
year because of festive season, are also expected to contribute to the
projected mix trading performances.

Political news

In his own view,
Bismarck Rewane, managing director of Financial Derivatives Company
Limited, a business consultancy firm, said political news will cause
“increased uncertainty in the market” during the last quarter.

Mr. Rewane, in a
‘Monthly Economic’ report for October, said the erosion of the naira in
the foreign exchange market will further make equities cheaper.

He said the recent
sanctioning of some quoted companies has also led to the “continued
lack of investors’ confidence in equity market.” He said investors are
presently in search of alternatives to equities. For example, he said
investors are turning to the fixed income market.

However, he said if
AMCON starts operations during the period in view, the nation’s capital
market should recover, adding that “announcement of the preferred
bidders of rescued banks” could boosts investors’ confidence.

Mr. Rewane sees the
possibility of the NSE market capitalisation, during the quarter,
hitting N7.1trillion from its current N6.1 trillion region.

Third quarter trading

In the third
quarter of the year, spanning July to September, the stock market
recorded transaction volume of 17.74 billion, valued at N153 billion in
394,180 deals.

This was a decline
if compared with the second quarter when the market recorded
transaction volume of 27.95 billion, valued at N245.2 billion in
559,532 deals.

The Exchange’s information department acknowledged that “market performance was unimpressive during the third quarter.”

During the third
quarter, the banking subsector was the most active, measured by
turnover volume, with traded volume of 9.8 billion shares, valued at
N78.1 billion, and exchanged in 210,134 deals.

The insurance
subsector was second with traded volume of 2.2 billion shares, valued
at N2.23 billion, and exchanged in 16,521 deals; while the
conglomerates subsector was third, with transaction volume of 984.33
million, valued at N9.11 billion, and traded in 14,953 deals.

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Demand pressure points to naira devaluation

Demand pressure points to naira devaluation

With the decision
of the Central Bank of Nigeria (CBN) to discontinue defending the
value, the naira may be facing imminent devaluation, some financial
analysts have said.

CBN governor,
Lamido Sanusi, told Reuters on Monday that the value of the naira need
not be maintained “at all costs”, though he predicted the currency
would remain stable. This comes after several months of meeting
increasing demands for foreign exchange, which has taken its toll on
the foreign reserves.

Nigeria’s foreign
reserves, which peaked at $62.24 billion in mid-May 2008, has
depreciated by over 43 percent since then, closing last week at $35.24
billion.

Mr. Sanusi further
said “exchange rates have multiple equilibria, and equilibrium exchange
rates will depend on what we see as the long-term sustainability of the
reserve positions.”

A financial
analyst, who spoke off record, said though the foreign reserves are
still at comfortable levels, the trend of withdrawals in the last few
months is a cause for worry.

“The last time the
naira was devalued was when many portfolio managers left Nigeria at the
thick of the global financial crisis. The situation has not changed
pretty much and even many diaspora Nigerians have reduced the amount of
money sent back home. The CBN is now the major source of foreign
exchange.”

He said the lack of
transparency on how the foreign reserves is calculated also puts doubt
on how well the economy is being managed.

“If the budget
benchmark is $45 dollars, and we have had higher prices in the last few
months, how come the excess crude account is not replenished? Crude oil
prices have increased, production has gone up, but reserves are
dropping,” he said.

Naira defence versus reserves

An indication of
the direction of the currency market emerged last week as the naira
sold for N150.01 at the official Wholesale Dutch Auction System (WDAS)
window, for the first time in several months. At the interbank market,
the naira sold for 152.25 to the dollar, with dollar demand
outstripping supply at the Central Bank’s bi-weekly forex auction.

Prior to now, the
naira had fluctuated between N148 and N149.50 at the official window, a
band that it had maintained since 2008. A total of $550 million was
offered at the WDAS last week, while $771.65 million was demanded. The
total sale stood at $707.65 million, representing 91.71 percent of what
was demanded.

Doyin Salami, a
member of the Monetary Policy Committee of the CBN, said at the August
Breakfast meeting of Nigeria South Africa Chamber of Commerce, that the
government has to make a choice whether to defend the value of the
naira, in which case, it could commit huge sums from the reserves to
meet demand; or could decide to devalue the naira in order to reduce
pressure on funds.

“Should I defend
the naira or should I defend the foreign reserves? That is the question
for the Central Bank to answer. Whatever happens is going to have
effect on inflation,” Mr. Salami said.

The last time the
currency was devalued was in December 2008, when the rippling effect of
the global financial crisis took its toll on the naira, which had
remained stable for nearly three years before then.

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Bayelsa derivation revenue may trigger crisis

Bayelsa derivation revenue may trigger crisis

A
constitutional crisis looms as concession granted Bayelsa State to
receive extra derivation revenue for nine mega offshore fields may
trigger legal agitations from other oil producing states in the
federation.

The
Bayelsa State government, in a letter dated February 16 to the then
acting president, Goodluck Jonathan, had requested approval for the
attribution of nine oil fields to assuage negative impact of the
delimitation of maritime boundaries of littoral states by the National
Boundary Commission (NBC) in the wake of the promulgation of the
Offshore/Onshore Dichotomy Abrogation Act 2004.

Timipre
Sylva, the governor, who signed the letter, listed the oil fields,
which included some of the country’s biggest deep offshore oil
concessions, like the Agbami, operated by Chevron, with proven oil
reserve of over 770 million barrels; Bonga, operated by Shell, with
proven reserves of over 1.5 billion barrels; and Akpo, operated by
Total, with proven oil reserves of over 630 million barrels.

Others
include Chota oil field, with 60 million barrels reserve by
ConocoPhillips; N’Golo oil field, 100 million barrels reserve by Elf
Petroleum Nigeria; Nnwa Doro oil field, by Statoil; and Aparo by
Chevron.

Mr.
Sylva said the delimitation has put Bayelsa State in a disadvantaged
position in the allocation of revenue since 2004. He drew attention to
the impact of ecological damage to the state’s coastline, pointing out
that the exercise did not attribute the oil fields and wells to the
littoral zone of the state, “despite the huge security challenges,
increasing environmental and health concerns, and the state’s massive
contributions to the amnesty programme.”

The
presidential concession would make Bayelsa State the highest derivation
revenue earner among the oil producing states in the country.

However,
following the approval of President Goodluck Jonathan on August 31, the
other littoral states are poised to equally demand their share of
derivation revenue based on the delimitation of their location beyond
the 200-metre isobath of their seaward boundaries.

Available
data for the Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) on the revised 13 percent derivation indices for July, obtained
at the weekend, based on the concession, put total oil production for
Bayelsa State at 15,995,773 barrels, ahead of Rivers (13,317,840
barrels), Akwa Ibom (12,796,954 barrels), and Delta (11,163,493
barrels).

Prior
to the concession and subsequent revision of the volume of oil
production figures attributable to each state, Akwa Ibom topped, with
13,905,432 barrels, followed by Rivers (12,636,795 barrels), Delta
(11,163,493 barrels), and Bayelsa (10,313,368 barrels).

Legal breach

The
concession to Bayelsa State to enable it earn derivation revenue from
oil wells lying beyond the 200-metre isobath, according to some
lawyers, is in breach of the Offshore/Onshore Dichotomy Abrogation Act
2004 in the application of the 13 percent derivation principle.

Innocent
Ogboru, a Port Harcourt-based legal practitioner, said the decision may
lead to agitations and court actions by other states, like Lagos, which
also has oil wells located beyond the 200-metre isobath in waters
within their boundaries.

“The
new twist in the calculation of oil derivation revenue will reduce the
amount of net revenue available to the Federation Account for
distribution to the three tiers of government, consisting the 36 states
of the federation and the 774 local government councils, as well as the
Federal Capital Territory (FCT), after the deduction of derivation
payable to oil producing states,” Mr. Ogboru said.

The
2003 interpretation of the Supreme Court judgment in the resource
control suit instituted against the Federal Government over the
implementation of the offshore/onshore dichotomy, which ended the
controversy, did not include revenues from oil wells outside the
statutorily allowed 200-metre isobath as part of derivation calculation.

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Ekiti council bosses deny deserting posts

Ekiti council bosses deny deserting posts

Local government chairmen in Ekiti State have faulted reports
that they have abandoned their duty posts since last Friday’s Appeal Court
judgment that sacked the former governor of the state, Segun Oni.

Gbenga Ogunleye, the spokesperson of the council bosses’ union,
the Association of the Local Government of Nigeria (ALGON), said the local
officials have no reason to abandon their duty posts as a result of the
judgment that Kayode Fayemi was the duly elected governor of the state, because
there was no law barring them from performing their statutory roles as council
chairmen.

Mr Ogunleye said at no time did the chairmen run away from their
respective councils. “All the 16 council chairmen have been performing their
roles as recommended by law and there is no law restraining them from
discharging their duties,” he said.

‘Tissue of lies’

He also faulted allegations that ALGON members have been
perpetrating fraud since the judgment was handed down by the court, saying the
allegation was a tissue of lies designed to dent the reputations of members.

“It would be a great disservice to the people of the state if the
council chairmen engage in any form of corruption as a result of change of
government,” he said. “Ekiti speaks the same dialect and this makes us unique
in this country, so we cannot because of a change of government involve
ourselves in any corrupt practices because we are one and we will continue to
be so.”

The ALGON spokesperson, who is the chairman of Ekiti West Local
Government, said his colleagues shall continue to perform their duties in
accordance with the will of the people and the provision of the law, in
peaceful coexistence with the new government.

He also lauded the quick response of Mr Fayemi to the rumour that the state
government has not taken any position in respect of the status of the local
government chairmen. The 16 local government chairmen, who are all members of
the Peoples Democratic Party (PDP), were elected in December 2008 by the State
Independent Electoral Commission (SIEC) in an election that was boycotted by
the Action Congress of Nigeria, which was the opposition party at the time.

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Tenure of Nasarawa council bosses ends in November

Tenure of Nasarawa council bosses ends in November

Lawmakers of the Nasarawa State Assembly have voted to end the tenure of all local government chairmen by November 3rd, 2010.

The decision came after lawmakers extended the
tenure of elected local government chairmen in the state’s 13 local
government and development areas.

The chairman, house committee on local government
and community development, Abdullahi Musa Aliyu, drew the attention of
the house to the issue. He noted that no election had been conducted at
the local government level, though the constitution and the local
government chairman amendment laws of 2008 only provided a tenure
period of two years for the position.

“They should hand over to the most senior civil
servants in their respective local government at the end of their
tenure,” he said.

Members of the state House of Assembly, led by Speaker of the House,
Musa Ahmed Mohammed, debated for two hours before arriving at a
unanimous decision.

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Youth leader speaks out over 2011

Youth leader speaks out over 2011

The Alliance of Kogi State Youth and Students Council, a
pressure group, has urged the Independent National Electoral Commission (INEC),
on Tuesday, to conduct free, fair, and credible elections.

Speaking in Lokoja, the national president of the group, Sani
Ojochenemi Salisu, said that Nigerian youth would not accept anything short of
credible elections from the Attaihiru Jega-led electoral body.

“This time around, the nation needs free, fair, and credible
elections and we hope INEC will not disappoint us in this regard,” said Mr.
Salisu.

Mr. Salisu appealed to all people of voting age to come out and
register during the forthcoming voters’ registration exercise, stressing that
their voters card are their weapon in electing credible leaders of their choice
at all levels.

“The principle of ‘one man one vote’ should be strictly
followed. All the votes of the electorate must count and the electorate must be
allowed to elect their leaders through their vote cast, and not through
imposition of leaders by some so-called godfathers,” he further said.

Shun violence

Mr. Salisu, who is a former president of the National
Association of Kogi State Students (NAKOSS) and the immediate past deputy
senate president of Igala Students Association (ISA), also enjoined youth to
shun any form of violence and thuggery during and after the elections.

“As leaders of tomorrow, the youth, who have been stakeholders in the polity
of the nation, should not allow themselves to be used as thugs by desperate
politicians who are after their pockets and not the collective socio-economic
and physical development of the country,” he said.

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HABIBA HABITAT: A life worth living

HABIBA HABITAT: A life worth living

This month brought the number of Nigerians I know or have heard
of, who have committed suicide, to five. It matches the number of friends and
acquaintances who have been struck down by a stroke. It may seem like a
miniscule number, but I regard it as an alarming trend. Cause of death – killed
self with work/suicide – and it seems to happen to the best people.

People who have lived three or four lifetimes by the time they
are 30 or 40. The account of their achievements and the contributions they made
to the lives of those around them is too long for them to even recall.

Yet, a significant number of people who achieve early success
also suffer from depression, feelings of inadequacy and despair. They die
young, mourned by those they leave behind who marvel at what they were able to
cram into their short lives.

A survey of tramps and homeless people in the US and the UK
unearthed, amongst them, some former CEOs and middle class people who got up
one day and simply walked away from the pressures and responsibilities of being
successful. They opted for ‘the simple life of a tramp’ – their only concern
where to get the next meal and where to rest their head each night. I have
never looked at mentally unstable people whom we occasionally see wandering our
streets and thought that their lives were simple.

I can understand what people who chose to become tramps were
running away from, though. In all the trappings of ‘civilisation’, development
and Westernisation, our free spirit is confronted with the choice of living a
life constrained by our ‘status’ or giving it all up and flying free.

What is life?

The phenomenon of suicide is creeping into our culture. I
believe that a big part of this has to do with how we define what life is. I
don’t mean the life that many believe is ‘breathed into our bodies’ by God, or
the moment when the collection of cells in the womb take on a life of their
own. I mean the life that we live. What would make life unbearable for you?
What makes a decent person give up their life of honest labour, family and
community and turn to a friendless life of crime, cruelty and material gain?
What makes a person put their life on the line as do soldiers, freedom
fighters, terrorists and activists? Is there a sliding scale, a tipping point
beyond which life loses its value and potency and can be acceptably
extinguished?

It seems like people have decided that life and quality of life
are equivalent to each other. Are they? Growing up, life had its own value. For
some of us, life was accompanied by suffering. For others, life brought struggle.

Yet more found prosperity and happiness. Life was characterized
by your condition, but it was not defined by it. That distinction seems to have
blurred.

What is life without
happiness?

As Nigerians, we love life with a capital L! We did not emerge
the happiest people on earth in the University of Michigan’s World Values
Survey, for nothing. Until recent events proved us wrong, we had a multitude of
rib-cracking jokes, and a strongly held belief that no Nigerian could be a
suicide-bomber. We simply love life.

Yet, what is the relationship between life, quality of life and
happiness? In the same survey, when asked how satisfied with our lives we were,
Nigeria dropped from 1st to 19th. As defined by psychologist, Jonathan
Freedman, “happiness… is a positive, enduring state that consists of positive
feelings… and includes both peace of mind and active pleasures or joy.” We
know that we have positive feelings, a lot of it grounded in faith and nature.

That is what makes us feel happy. We mark all occasions, both
sorrowful and joyful, with celebrations of thanksgiving. So what is it that is
destroying our peace of mind? Why do people say things like, “I cannot live
with all these debts” or “I cannot live without him/her.” We won’t actually
stop breathing because of debt, or because a loved one has left our lives. Life
goes on, albeit with struggle and sorrow tagging along for a while.

If we “don’t want to live like this” – then, we don’t. We have
free will. We can change our lives with the snap of our fingers. It is very
simple to change one’s condition of life. It is simply a very difficult
decision to make.

Up to the ears in commercial debt? Declare bankruptcy. Move from
your three-bedroom house in the best part of town to a one-room apartment in
less fancier parts – or squat with friends and family. Take any job you can get
regardless of your educational qualifications and your experience.

Yet, what makes this difficult to do? History abounds with
people who have suffered devastating reversals in their lives and got up,
started anew and reached the heights again. We struggle with our self-worth,
with the fear of failing our expectations of ourselves and, more importantly,
failing the expectations others have of us.

Through it all, remember that life is sacred. That the people
who love you most value having you among the living more than your quality of
life or what you can do for them, no matter what they say about disgrace and
disappointment. If you are in despair, seek peace of mind and happiness.

No need to seek death. It knows where we are and will find us
when our time is up.

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Fayemi warns supporters not to attack opponents

Fayemi warns supporters not to attack opponents

Ekiti State governor, Kayode Fayemi, has appealed to supporters
not to partake in conducts that will endanger the lives and properties of
members of the opposition in the state.

He gave this warning on Wednesday at the take-off of his party
(ACN)’s official membership registration exercise, which held at the party’s
headquarters in Ado Ekiti.

Speaking to the crowd that trooped to the venue of the party
registration exercise, during which the party’s leadership registered him and
his wife and the state’s deputy governor, Mr. Fayemi said he has received
several security reports that certain individuals have been attacking
opposition politicians in Ijesha Isu, Emure, and some other areas in the state.

“These untoward attitude negates the principles of the party
which put premium on justice and peace,” he said, adding that the ACN is about
democracy, and not violence and brigandage.

Father of all

He said his supporters should realise he was no more the
governorship candidate, but now the bona fide governor of the state, a position
which he said makes him the father of all in the state.

“While recognising the excitement of our people over our court
victory, we still need to let people know that we do not believe that our party
members should be involved in any untoward attitude that will bring discomfort
to opposition politicians.

“I have received security reports which claimed that opposition
politicians are being attacked and victimized by certain individuals, and I
have instructed these reports to be investigated. I know there were bottled-up
emotions everywhere, but all these should be put in check. Anybody with
grievances should channel these to the party leaders, who will in turn address
them,” he said.

He advised party members not to focus solely on the jobs that
the government will provide, but rather focus on acts that will move the people
of the state out of the pangs of poverty.

Mr. Fayemi also approved some appointments. An announcement by
the head of service of the state, Olufemi Adewumi, stated that Ganiyu Owolabi
has been appointed Secretary to the State Government (SSG); Yemi Adaramodu, a
former campaign aide, is appointed Chief of Staff; while Mojeed Jamiu, a
journalist with Leadership, has become the media spokesperson.

Mr. Fayemi asked the people not to allow aspirants to purchase
registration forms for them, so as not to influence their choices in future
elections.

“People should pay the nominal fees of 50 naira, and not allow aspirants to
buy cards for them and later control their choices. We are a party of law and
order and we cannot be seen to be subverting the process,” he said.

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PPA clears Kalu for 2011 presidential contest

PPA clears Kalu for 2011 presidential contest

The Progressive Peoples Alliance PPA, Abia State chapter, has
cleared former Abia State Governor, Orji Uzor Kalu, to contest as its
presidential candidate for the 2011 presidential elections.

The declaration put to rest the controversy over the legibility
of Mr Kalu to contest on the platform of the PPA, after collapsing the party
into PDP and his failed bid to join the ruling party.

The publicity Secretary of the party in Abia State, Oliver Eze
Obieze, said the PPA has succeeded in convincing Mr Kalu to contest as the
party’s presidential candidate in 2011.

Mr Obieze, who spoke to the press in Umuahia, said after due
consultations, “we have been able to convince Kalu to come back to the party
and run as its Presidential candidate. We have given him the platform to run as
our presidential candidate.”

Right to opinion

Reacting to claims by a leader of the party, Olu Akerele, that
Kalu cannot claim to be a presidential aspirant in a party he said he had fused
into the PDP, Obieze said Mr Akerele had a right to express his opinion as a
party member, but that the party has taken its decision.

He said the successful persuasion of Mr Kalu to fly the party’s
flag was part of their outreach efforts to other members of the party who had
one grouse or the other, and that the party has not foreclosed the aspiration
of others to contest for the presidency.

Commenting on the state of affairs in Abia, he said the party commended the
federal government for deploying soldiers to the state to arrest insecurity
caused by kidnapping in parts of the state. “We support the military
intervention to sanitize the troubled Aba zone in particular,” he said. “We,
however, urge the military personnel so deployed to restrain themselves from
the abuse of the fundamental rights of the innocent residents and indigenous
people of the area.”

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FG approves N10.3b for Enugu airport upgrade

FG approves N10.3b for Enugu airport upgrade

In a bid to revamp the aviation sector, the Federal Executive
Council (FEC) yesterday approved the upgrade of the Akanu Ibiam International
Airport, Enugu.

The revised sum of N10,33,078,000.98 was approved for the
upgrade of the airport, to give it an international standard. It is expected to
begin daylight operations in December.

Other approvals for the ministry of aviation include the
renovation and replacement of Air Traffic Control (ATC) consoles and Very High
Frequency (VHF) Radios in 13 ATC Towers for the Nigerian Airspace Management
Agency (NAMA); and the award of contract for direct procurement of seven
Airport Fire Crash Tenders for the airports.

The contracts were approved during the weekly FEC meeting,
chaired by President Goodluck Jonathan, which lasted for about two hours, with
a total of six memos approved.

The Council had, in September 3, 2009, approved the contract
for the upgrade of infrastructure at the Enugu airport and it has been closed
to flight operations pending the completion of works.

The approval is for the augmentation of project cost for the
completion of the upgrading (extension/expansion and resurfacing of the runway
including CAT II AFL) of the Enugu Airport.

The minister of information and communication, Dora Akunyili,
who briefed alongside the minister of aviation, Fidelia Njezeh, and the
minister of women affairs, Josephine Anenih, said the initial cost of the
contract was reduced due to inadequate budgetary provision and that the
contractor (Messrs PW Nigeria Ltd) accepted to execute the project at the
revised sum of N10 billion.

Water projects

The scope of work, according to the information minister,
involves the installation of modern Communication Control Systems and the
renovation of the Control Towers. The project is expected to be completed in
six months.

Council also approved three contracts for the Ministry of Water Resources.
One of the contracts approved is the augmentation of the Revised Estimated
Total Cost (RETC) for the Gurara Water Transfer Project; the Jada Multi-purpose
dam project; and the Kontagora dam and irrigation project.

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