Nigeria Content Online

Aero Contractors Airlines said, on Monday, that the evacuation of passengers from one of its aircraft that caught fire on Sunday at the Murtala Muhammed Airport, Lagos, followed internationally recognised safety procedures.

The News Agency of Nigeria reports that some passengers on the flight, from Port Harcourt to Lagos, sustained injuries when the airline’s Boeing 737 aircraft landed and caught fire.

The airline, in a statement by its Media Consultant, Simon Tumba, said that the evacuation was carried out after the aircraft had landed safely in Lagos. “The evacuation was ordered by the captain following internationally recognised safety procedures after-on-board smoke detectors were activated,” he said. “We now believe that this was due to humidity and warm air mixing in the cabin forming a smoke-like vapour. As the crew could not be 100 per cent certain that the vapour was harmless after landing, all the 84 passengers were evacuated to the tarmac where they were moved to the airport terminal in a bus.”

Mr Tumba also added that Aero was in constant touch with the passengers, the Nigerian Civil Aviation Authority, and other regulatory bodies in line with international operating procedure.

Last week, Apple’s boss, Steve Jobs, ridiculed the seven-inch tablets, which are poised to become the next thing in the computer market. Mr. Jobs said, “seven-inch tablets are tweeners, too big to compete with a smart phone and too small to compete with the iPad. The current crop of seven-inch tablets are going to be dead on arrival.”

When someone who has more or less been single-handedly responsible for revolutionalising the smartphone industry speaks, you must listen. Again, his 10-inch product has sold almost eight million units since its launch less than a year ago. So, he must be on to something.

But before we go on, a disclaimer here. I disagree with Mr. Jobs, and I will explain. First, we must define what a tablet is, and why Mr. Jobs’ comments are very important.

2011 is the year of the tablet. A “tablet” is a computer contained entirely in a flat touch screen that uses the fingers or a stylus as the primary input device in the place of a keyboard or mouse. It is a generally accepted precept in computing that there is a functional wasteland which manufacturers are struggling to fill because it is potentially very lucrative. This functional wasteland is the void between full productivity and pocketability.

Availability and size

For devices that give users full productivity, the main concerns are content creation, productivity, the ability to sit down for long periods at your computer, and the ability to type with both hands. Devices that fall into this category include your desktop computer (some of you have those 42 inch screens, others do six screens at once), your laptop (13 to 17 inch screens), and your netbooks (10 inch screens).

For devices that give users pocketability, the main concern is high availability and size. High availability simply means that the device should be ready to go at all times (hence, a lot of research is going into instant booting).

Devices that fall into this category are also geared for entertainment, and the ability to do some basic productive tasks on the move, with a view to synching when you want to really work. All smart phones and PDAs fall into this category. Most of them have five inch screens or smaller.

A 10-inch tablet is more portable, but less functional than a 10-inch netbook, and that is just an issue. If portability and versatility are not benefits, then you may as well get a netbook. But in that case, you are just handicapping yourself – get a laptop. For computing in your comfort zones (home and office), nothing beats a desktop or laptop.

Again, you cannot use a netbook in your car, when you are driving, to replace your radio. You cannot use your netbook as a GPS device, and before you boot it, that argument over who was the Oba of Benin when the Portuguese came, which you wanted to refer to Wikipedia to settle, may well be over. The 10-inch size pretty much prevents all of this, even if you have an iPad. It is not useful in these places other than perhaps argument – but you cannot use it while driving, even as a GPS device, because it would block your screen.

Virtual keyboards are good for making quick notes, but when you really want to type, nothing beats a mechanical keyboard. Now, if you have to buy an external keyboard for your iPad, you may as well go out and get a netbook because one of its touted features, its weight, would no longer be an advantage.

Unless we can somehow break the laws of physics, one size can never quite do everything. Typing even with the blackberry’s keyboard can be a tiring experience, much less trying to do the same thing with a touch screen.

These gaps are what the new onslaught of seven-inch tablets want to try and fill, and this is probably what Mr. Jobs saw before making that statement. Almost as a rule, you do not attack something that does not bother you, so it is more than likely that the coming tablets do bother Apple.

You see, Apple’s 10-inch iPad is a little too heavy to use for long periods as a true mobile device. You cannot watch the entire length of Episode 8 of The Wire’s first season holding it in your hand, something you can do with a seven-inch tablet.

From my experience using Archos’s seven-inch tablet for the past one month now, that seven-inch size is where you actually reach that sweet spot, where you can use it not only in home or office (and you have a computer there already – making the 10-inch and larger devices of questionable benefit), but also bring it along with you and have practical applications in more portable settings – including car and the places you go in a car.

Simply put, size is not everything, and in the tablet wars, I am putting my hat in the ring on the side of seven-inches.

President Goodluck Jonathan on Tuesday, in Abuja, said that the
federal government will provide an enabling environment to ensure that more
non-oil products are exported from Nigeria.

“The non-oil sector of the Nigerian economy has traditionally
played a vital role in our national economic development, particularly in the
area of providing foreign exchange earnings and revenue for governments,” he
said, at the opening of the Non-Oil Conference, Exhibition and Awards (NNECA)
2010.

He said Nigeria could remain among the poorest countries of the
world if it continues to rely on development paradigms crafted abroad. In the
same vein, the president expressed determination to address the infrastructural
deficiencies which serve as impediments to the nation’s industrial growth.

His administration, according to him, has taken cognizance of
infrastructural deficiencies and was ready to address the hydra-headed
problems, which he said was vital to rapid transformation of the economy.

Self-developed paradigms

Mr. Jonathan, who was represented at the event by Jubril
Martins-Kuye, the minister of commerce and industry, said the only way the
country can prepare itself for 2020 as one of the most developed twenty
economies in the world is to have a self-developed paradigm.

“The vision must be indigenous, not imported or borrowed, and
must be owned by the people. Only visions that are owned by the people, because
they have been arrived by consensus after extensive dialogue and debate can
become shared national values,” he said.

Stressing that the singular most visible and significant
contribution of the non-oil to the socio-economic well-being was in the area of
providing empowerment and employment for the vast majority of Nigerians, he
regretted the self-actualization of Nigerians had been jeopardized as a result
of the real sector not performing to create jobs.

Mr. Jonathan noted that the non-oil sector of the economy has
traditionally played a vital role in the nation’s economic development,
particularly in the area of providing foreign earnings and revenue for
government.

The president urged the nation to learn a lesson from Malaysian
exports in palm oil, which has its origin in Nigeria, by applying their mastery
of applied science and technology harnessed for industrial domestication of the
palm oil.

Jose Maurel, director of special advisory services at the
Commonwealth Secretariat, in his address at the event, noted that for Nigeria
to improve its non-export figures, it should prioritise development of adequate
infrastructure, especially power and ICTS.

Despite relative stability and gradual return to profit, banks’ third quarter results show that they are still reluctant to expand their asset creation in respect to loan grants, especially to the private sector.

“An analysis of the key parameters on the balance sheet shows that UBA total assets remained relatively flat, declining marginally by 0.4 percent,” Afrinvest, an investment banking and research firm, said.

“We also observed a decline in the bank’s lending activities in quarter three. The bank’s loan portfolio was subsequently down by 4.2 percent to N636.2 billion, from the N664.2 billion reported in quarter two 2010,” the firm added.

“The bank’s inability to grow its loan book during the quarter led to a slow growth in net interest income. The Q3 net interest income of N27.1 billion falls short of an average of N33.9 billion reported in Q1 and Q2. We expect the bank to be more aggressive in its risk generation appetite and also channel more of its assets into higher income earning assets.

“Currently, 24.2 percent (N402.5 billion) of the bank’s total assets are placed in the inter-bank market where yields were an average of 7.9 percent during the quarter,” the firm further said.

Guaranty Trust Bank’s third quarter result, however, reveals that loans and advances to customers increased to N545 billion, from N532 billion at the end of quarter two, 2010.

Central Bank’s policy not reflecting

Samir Gadio, emerging Markets Strategist, Standard Bank, said the Central Bank’s accommodative policy stance between 2009 and September 2010 has not really reflected in lending to the real sector.

“According to the Central Bank, the growth rate in credit to the private sector fell to a record low of 4.5 percent year on year (y/y ) in August, from 9.8 percent y/y in July and 18.1 percent y/y in June. Although aggregate private sector credit extension edged up 2.0 percent in monthly terms to N10.1trillion, from N9.9 trillion in July, it has only increased 0.4 percent year to date (Ytd).

“This means the Central Bank’s accommodative policy stance between 2009 and September 2010 has not resulted in a turnaround in lending to the real economy, which we think reflects the intrinsic weakness of the monetary transmission mechanism, amid structural issues in the banking system,” Mr. Gadio said.

Experts have said the tightening in monetary conditions during the last Monetary Policy Committee, held in September, is likely to further impact credit dynamics as the Central Bank hiked the standing deposit facility by 225 basis points (bpts) to 3.25 percent. This, they say, may curtail liquidity and place upward pressure on money market rates.

However, a source at Spring Bank said the bank’s lending is fast improving.

“I can’t speak for other banks, but I know Spring Bank is lending. Even if you want a loan, just come to the bank and get a form. Once you meet with the basic requirements, why won’t you get a loan?” he said.

Sub-Sahara African countries should consider tempering expansionary fiscal policy now that economic recovery is under way across much of the continent, the International Monetary Fund said on Monday.

Earlier this month, the IMF downgraded its 2011 gross domestic product (GDP) growth forecast for the region to 5.5 percent from 5.9 percent previously, but maintained its 5.0 percent prediction for this year.

“The focus of policy needs to shift toward rebuilding the policy buffers that served so well during the crisis,” Antoinette Monsio Sayeh, IMF’s director of the African department, said in a statement.

“In particular, expansionary fiscal policies will need to be tempered to make sure that public finances return to a sustainable path and public debt levels remain manageable.”

The region’s economies proved resilient largely due to sound policies in place before and during the financial crisis, which allowed the countries to use fiscal and monetary policy to dampen adverse effects, Ms Sayeh said.

Many African countries had steady growth, low inflation, sustainable fiscal balances and public debt, and rising foreign exchange reserves.

Some countries cut interest rates, and increased debt and spending levels to mitigate the effects of the crisis.

“Continued fiscal support is likely warranted only in a handful of economies where growth is set to remain below potential and which do not face debt sustainability issues,” the IMF said in its regional economic outlook.

Growth should soon be back close to the high levels seen in the mid-2000s before the crisis, Ms Sayeh said.

CAPITAL FLOWS

The financial crisis left higher unemployment in some countries and fiscal balances deteriorated, particularly in middle-income and oil-exporting countries, she said.

South Africa, for example, lost one million jobs in 2009 when the economy fell into recession.

The IMF warned that because of the fragile nature of the global recovery, risks remain weighted on the downside.

However, rising incomes and investment will keep lifting domestic demand for the remainder of 2010 and the resource-hungry Asian economies are expected to maintain their demand for African exports, the IMF said.

“The risks on the downside are slightly larger than the risks on the upside,” said Roger Nord, a senior adviser for the IMF’s Africa department, referring to the global economy.

“That being said, we see the risk of sliding back into global recession of being very, very small and the reason for that is the strong growth in emerging countries where we expect (2010) growth on average to exceed 7 percent.”

The stock market runs through a mixed performance during the week, leading from sharp disagreement between the bullish and bearish investors over market position. Even when the bargain hunters felt it was profit taking time, market received timely patronage from good numbers of bullish investors that finally turn around the market face.

Week on week NSE ASI followed an uptrend; meanwhile, month on month, the downtrend still holds. If the ongoing trend is maintained, then the latter should change soon.

Despite the short pull back within the week, NSE ASI only closed 99.03 points or 0.40% below the opening point. It opened the week with 25,077.73 points and closed at 24,978.70. Market capitalization of listed equities equally closed in the red at N6.12 trillion.

NSE-30 shed 3.97 points same as 0.33% of its opening figure to close at 1,057.82 points. NSE-Banking and NSE-Oil/Gas appreciated by 1.71 points or 0.6% and 5.10 points or 1.54% respectively. Meanwhile; NSE-Food/Beverages and NSE-Insurance dipped by 20.23 points or 2.50% and 1.24 points and 0.75% respectively.

Percentage gainers/losers

40 stocks closed the week above their various opening prices, 43 shed prices and 118 stocks were flats. Price percentage gainers chart were led by Oceanic Bank Plc that gained 25.52% over its opening price, Unity Bank Plc appreciated by 19.39% and Afribank Plc, IHS Nig. Plc, and Ikeja Hotel Plc moved up by 15.33%, 13.73% and 12.88% respectively. Niger Insurance Plc top the price percentage losers’ chart with 12.50% followed by Cadbury Nig. Plc, Skye Bank Plc, Guaranty Trust Bank and Ecobank Plc with 12.12%, 8.04%, 8.02% and 7.94% respectively.

Report on the OTC FGN bonds market

A turnover of 223.6 million units worth N216.47 billion in 1,599 deals was recorded last week, in contrast to a total of 266.9 million units valued at N246.36 billion exchanged in 1,978 deals during the week ended Thursday, October 14, 2010. In terms of turnover/volume, the most active bond was the 10.00% FGN July 2030 with a traded volume of 33.2 million units valued at N27.12 billion in 257 deals. It was immediately followed by 9.92% FGN January 2012 with a traded volume of 30.6 million units valued at N32.01 billion in 297 deals. Fifteen (15) of the available thirty-six (36) FGN Bonds were traded during the week under review compared with sixteen (16) in the preceding week.

Market outlook

Prior to the strong support on the last trading day of the week, the market was already on a short pull back and traders were already setting for sell-off in order to hold cash to position at bottom of the expected pull back. If the market fundamentals remains, then the market may continue on the bullish run from the first trading day of the new week. Nevertheless, traders should once again expect short pull back as bargain hunters may take profit at any prompt signal. Whichever way it is viewed, cautious positioning should be every trader’s watchword.

CORPORATE REPORTS FOR THE WEEK ENDED

Dangote Cement Plc

Dangote Cement Plc emerged from the recent merger between Dangote Cement Plc (DCP), formerly known as Obajana Cement Plc, and Benue Cement Company Plc (BCC). The merger was made possible as result of majority stake held by Dangote Industries Limited (Dangote Group) in the two companies. In a nutshell, DIL interest in DCP and BCC are 99.14% and 74.77% respectively. The post merger Dangote Cement Plc now has an authorized share capital of N10 million, divided into 20 million ordinary shares of 50 kobo each. The merger assumption for BCC’s shareholders states as follow: (1) that every 2 existing shares of BCC prior to the merger becomes 1 share. (2)

That the price of BCC (N67.50) as at the time it was place on technical suspension (prior to the merger) is now multiplied by 2 to give the current price of DCP (N135).

DCP is billed to be listed on Tuesday, October 26, 2010, in simultaneous with its special sales of 100 million ordinary shares of 50 kobo at N135 each.

In readiness for the listing and the special sales offer, the directors of DCP last week reported its unaudited third quarter results for the period ended September 30, 2010. Analysis on the results revealed improved growth over similar period of 2010.

Turnover (TO) grew by 60.53% at N146.56 billion while both PBT and PAT went up by 63.93% at N76.93 billion and 66.82% at N75.30 billion respectively.

Further analysis revealed that Q3 EPS currently stands at 375 kobo resulting to earnings yield of 2.79%. Net profit margin is 51.38%. DCP currently sells at PE multiple of 35.86.

Giving weight to the special sales offer, DCP’s Board of Directors is recommending an interim dividend of N2.00 per share. The closure date is November 17, 2010 while payment date is November 30, 2010.

Wema Bank Plc

The directors of Wema Bank Plc last week reported its unaudited third quarter results for the period ended September 30, 2010. Scorecards showed re-awaking in Wema Bank, with a strong turnaround in the bottom line. Despite improved growth at the bottom line, the report remained mixed, with turnover dipping by 4.75% at N24.09 billion against N25.29 billion in Q3, 2009. Wema Bank’s return from the woods received a boost by PAT growth of 105.5% at N1.64 billion, against loss after tax of N29.73 billion in similar period 2009.

Additional analysis shows that ratios indicators are trickling in positive figures. Q3 EPS stands at 16 kobo, creating an earnings yield of 17%.

At current 93 kobo market price, PE multiple of 5.87 was generated. Stakeholders’ equity (ROE) returned 4% while net profit margin of 6.79% was equally generated. The coast is still gloomy for Wema Bank as it operates with net liability of N43.90 billion.