Archive for nigeriang

Equities plunge further

12/08/2010 No comments

Equities plunge further

The value of
equities at the Nigerian Stock Exchange (NSE) which plunged on Monday,
the first day in office of the newly appointed interim administrator of
the NSE, Emmanuel Ikhazobo, further depreciated at the close of
Tuesday’s trading.

The Exchange market
capitalisation closed yesterday at N6.199 trillion after opening the
day at N6.262 trillion, reflecting a one per cent decline or over N63
billion loss. The market also lost over N32 billion on Monday while
about N5 billion was gained last Friday on the announcement of Mr.
Ikhazobo as the new head.

The All-Share
Index, on Tuesday, shed one per cent whic was a loss of 255.11 units
from Monday’s figures of 25,606.09 basis points, to close at 25,350.98.

Mr. Ikhazobo, a
former managing partner of Akintola Williams Deloitte, who rang the
Exchange’s trading bell on Monday, said he’s in the market to foster
restoration of investors’ confidence.

However, Femi
Awoyemi, the chief executive officer of Proshare Nigeria Limited, an
investment advisory firm, said the need for the recent intervention by
the Securities and Exchange Commission should not be confused with the
means by which it was achieved.

“There are a few
missing links which I understand those responsible for the market are
seriously looking at and I understand that those affected have also had
time to reflect on developments and recognise that things needed to
change,” Mr. Awoyemi said.

Gainers and losers

At the close of
Tuesday’s trading, a total of 22 stocks appreciated in value, lower
than the 30 recorded on Monday; while 48 stocks depreciated in value,
higher than the preceding day’s 37.

Julius Berger and
Northern Nigeria Flour Mills topped the price gainers’ table with an
increase of N2.61 and N1.76 on their initial prices of N52.28 and
N35.25 per share. Ashaka Cement and UAC Nigeria followed in the chart
with an increase of 60 kobo each, to close at N20.00 and N44.00 per
share.

On the flip side,
Nigerian Breweries and Benue Cement Company led the price losers’ chart
with a loss of N1.50 and N1.00, from their opening prices of N74.00 and
N65.00 per share. Despite leading among top traded stocks on Tuesday,
Guaranty Trust Bank and Zenith Bank followed in the losers’ chart with
80 kobo and 53 kobo losses, to close at N16 and N13.77 per share.

Financial accounts

At the Exchange’s floor yesterday, Skye Bank and Oando presented their financial accounts to market operators.

Skye Bank Plc’s
unaudited financial result for the second quarter ended 30 June shows a
1.21 per cent increase in gross earning, from N51.334 billion to
N51.953 billion. However, the bank’s profit after tax fell by 32.44 per
cent from N7.531 billion to N5.088 billion and its total net asset for
the period in review appreciated by 8.09 per cent, from N88.086 billion
to N95.210 billion.

In its second
quarter result ended June 30, Oando Plc recorded a turnover of N172.859
billion from N165.036 billion; representing a 4.74 per cent increase.
The profit after tax, however, dipped by 2.43 per cent from N6.737
billion to N6.573 billion, just as net asset for the period went up by
46.24 per cent from N53.520 billion to N78.268 billion.

Click to Read more Financial Stories

Money

‘Billion naira intervention is secured against loss’

12/08/2010 No comments

‘Billion naira intervention is secured against loss’

The
Central Bank of Nigeria (CBN) has said its intervention in some sectors
of the economy is not going to cost the federal government money since
the funds are fully provided for. This clarification comes amidst
concerns about the legality of the CBN disbursing such huge funds
without legislative approval.

Lamido
Sanusi, the CBN governor said recently that the funds which would be
disbursed through commercial banks would be recovered at the end of the
day. “We are lending to BOI (Bank of Industry) and BOI is lending to
banks and the lending is secured by government security,” said Mr.
Sanusi.

“So
for a power project to benefit from this, the bank has to be convinced
that it is commercially viable and that it can repay the loan. If it is
a bad loan the bank makes the provision. All we do is sell the
government bond and recover our money.”

The
Central Bank is releasing N500 billion to companies in power, aviation,
and manufacturing sectors in its bid to encourage economic growth and
infrastructure development to refinance their loans. On Monday, it also
announced plans to intervene in the agricultural sector with the
signing of agreement with the Alliance for a Green Revolution in Africa
(AGRA) to develop a mechanism for unlocking billions of naira of
financing to serve the needs of all farmers, especially smallholder
farmers, agro-processors, agribusinesses and input suppliers in the
agricultural value chain.

CBN needs to do more

Razia
Khan, Regional Head of Research, Africa at Standard Chartered Bank said
the Central Bank would need to do more in order to encourage banks to
lend their money to the real sector of the economy. Ms. Khan said there
is little prospect of a meaningful rise in credit until the non
performing loans constraining new credit growth have been removed from
banks’ balance sheets. “Given the imminent establishment of an Asset
Management Company to do precisely this, Nigeria may not have to wait
too much longer to see this excess liquidity transformed into
private-sector credit,” she said.

A
treasury manager in one of the banks who spoke on condition of
anonymity said the CBN intervention though laudable, was tantamount to
rewarding companies that have not been prudent in managing their
resources.

“What
you are saying is that those whose assets are performing are being
punished since those who have not managed their funds well now have
access to cheap funds,” he added.

Haphazard approach

He
added that the manner the Central Bank was going about it suggests a
haphazard approach to tackling economic issues. “Initially it was power
alone, then aviation, then manufacturing. It does not suggest that it
is part of a coherent economic policy at the macro level. So the
criticism is that it is adhoc instead of situating it as part of a
broader policy,” he said.

He
however explained that the move was in line with the CBN mandate as
lender of last resort and does not require the consent of the National
Assembly to appropriate such funds.

This
tally with the view of Bamidele Aturu, a lawyer, who said the Central
Bank intervention was akin to rewarding government cronies. “If the
government is serious about stimulating the economy all it has to do is
to create jobs, fix the infrastructure, mechanise and support farming
and farmers and of course fight corruption. No country can develop by
giving free money to a lazy and dissolute class,” Mr. Aturu said.

But analysts at Afrinvest West Africa Limited, an investment banking
firm said the banking industry would benefit from the intervention.
“With specific reference to the CBN/BOI N500 billion infrastructure
fund, our understanding is that the CBN seeks to stimulate credit to
real sectors of the economy while immunizing its balance sheet from
credit risks.”

Click to Read more Financial Stories

Money

Rio Tinto Zimbabwe begins diamond exports in days

12/08/2010 No comments

Rio Tinto Zimbabwe begins diamond exports in days

Global miner Rio
Tinto’s Zimbabwe unit expects to resume diamond exports in a few days
after a government ban on sales in May, the company’s managing director
said on Wednesday.

Zimbabwe banned all diamond exports until stones
from the government’s controversial Marange fields, where it operates
two joint venture mines, were certified by industry regulators. “We
have been in communication with the government and we expect to resume
(exports) in a few days,” Neils Kristensen told Reuters.

Click to Read more Financial Stories

Money

Empowering Delta women through creativity

11/08/2010 No comments

Empowering Delta women through creativity

A skills
acquisition programme with the aim of empowering women begins today at
the Didi Museum Delta in Ogbe-Obi, Delta State. Organised in
conjunction with Ijedi Women Association, the programme ends with a
lecture and exhibition at the same venue on August 13. The exhibition
will showcase works produced by participants over the three days of the
training.

In a press briefing
held on August 4, owner and Manager of Didi Museums, Elizabeth Jibunoh,
explained the vision behind the training programme and exhibition.
According to her, it derives from two needs: the need to help provide a
means of living for the indigent women of Delta state; and the need to
revive the Akwa Ocha (white cloth) – a handmade fabric, which in her
words “had begun to be seen as relics of history.”

Reviving Akwa Ocha

Fabric, she said,
is one produce that will always find a market, “To cover what God has
given us is something so primary to every man, woman and child.” And
hand-woven cloth is considered particularly valuable: “Hand woven cloth
is one of the most expensive fabrics you can get. Mechanised fabric is
two a penny.” She also enumerated the uniqueness of the fabric, “No two
people can weave the Akwa Ocha the same way, it bears the signature of
the weaver; and therefore, no two fabrics are the same.”

Modeling the
fabric, Jibunoh explained that it is expensive ceremonial material that
costs about 40,000 naira. As a result of her interest in the continued
existence of the fabric, she went into its production five years ago;
and found interestingly, that her weavers were able to complete, in
just four days, an attire that had usually taken local weavers a time
span of four months to produce.

With this
realisation, Jibunoh saw an avenue to empower and enrich the female
youth and adult; and provide them with an opportunity to rise above
their status and become self sustaining individuals. “I took this
traditional thing back to the youth as a way of helping them realise
that it is not only oil money or the sales of recharge cards that can
cater for them financially.”

Underscoring her
concern for her people, she illustrated the handicap organisations like
hers have to address. “There are teenage mothers everywhere in Delta,
birthing babies from age 12 and walking aimlessly about; by the time
they are 25 years, they are spent. This dismal situation is what I am
hoping to redress with this initiative,” said Mrs Jibunoh.

For the girl child

With the programme,
Jibunoh hopes to educate the girl child to empower herself. She
advised, “Let us make sure that our girls are educationally empowered
but remain in the rural setting.” She reminisced that “The best part of
my life has been spent in my village. Every Nigerian tells me their
villages are the best villages. If our villages are the best places,
what then are we doing here (Lagos)?”

She revealed that
it was this sentiment that convinced her to relocate Didi Museum
activities from Lagos where it had been for 30 years, to Delta State.
“If anyone is good, they have to start from home.”

She plans to employ
the Delta branch of her museum as a tool for establishing tourism and
improving the situation of its indigenes. And this, she identified as
the reason for the training programme, which she described as “our
first annual outing.”

55 participants
have been registered for introductory courses in fabric making, tie and
dye, bead making, sculpting, painting and computer training, among
other skills.

The first day will
incorporate registration of delegates and participants, and courtesy
visits to traditional rulers in Delta, immediately followed by the
training classes that will run until the third day when activities will
culminate in a lecture to be delivered by Dan Usifo, and an exhibition
and possibly sales of the items exhibited.

The training will
be undertaken on a competitive basis, as there will be awards and
prizes for top placed participants. The revenue from sales, Jibunoh
said, will go into funding other training projects, as the NGO has few
institutional sponsors yet. Despite the financial constraints though,
training is free for participants, “In a place where people are
financially challenged, it will be crazy to ask them to bring even five
naira. But we are soliciting support, and as a non-governmental agency,
that is the only way to go about it.”

Are efforts being
made to popularise the Akwa-Ocha Fabric, like its south-western
counterpart, the Aso-oke? Yes, she said, “I have held exhibitions at
the Didi Museum several times to sell the fabrics, and have often been
commissioned to provide the fabric for occasions such as weddings and
traditional ceremonies. Also, fabric such as the Akwa Ocha, the Akwete
and the Aso-oke are very similar; once you understand the art of
weaving, you can weave any of the fabrics, so weavers are not limited
to producing any one fabric.”

Concluding the press conference, Mrs Jibunoh decried the
government’s lack of support for developmental courses and the need for
private individuals to take up the initiative, “The government has the
responsibility to empower the rural areas and direct people back to
those places; but since we know that the government cannot help us, we
are doing it individually. And I’ll tell you what I am doing: I am
empowering people through creativity.”

Click to read more Entertainment news

entertainment

Film Festival calls for entries

11/08/2010 No comments

Film Festival calls for entries

Submission of
entries for the first Africa International Film Festival (AFRIFF),
themed ‘Africa Unites’ will close on Friday, August 13, 2010.

A statement from
organisers of the festival holding in Port Harcourt, Rivers State, from
December 1 to 5, said filmmakers interested in the available
categories; feature, short, documentary and animation, should follow
the guidelines on its website, www.africafilmfest.com.

Works to be
submitted, however, must have been produced after January 1, 2009 while
preference will be given to works yet to be screened in Africa or
outside the continent.

Apart from film
screenings, AFRIFF will also feature technical training sessions,
business session and networking sessions, and launch of a film and
equipment market.

Local and
international filmmakers, celebrities and others interested in the art
and business of filmmaking will participate in the five-day festival.

The maiden edition
of the festival is already receiving international coverage to draw
global participants. Amongst others, there was a special focus on
AFRIFF in the Cannes Film Festival daily edition of the Hollywood
Reporter in May.

“We want the film
industry in Africa to compete favourably with its global peers and so
we are activating a comprehensive communications strategy with a global
outlook that will achieve sensitisation across the world,” disclosed
Celine Loader, communications consultant for the festival.

The Rivers State Government, host of the ION International Film Festival held last year, is also hosting AFRIFF.

Click to read more Entertainment news

entertainment

President preaches love at Ramadan

11/08/2010 No comments

President preaches love at Ramadan

Goodluck
Jonathan has urged Muslims to use the season of Ramadan for deep
reflection and spiritual rejuvenation towards greater service to God
and the nation.

Mr Jonathan, in a
message to Muslims in the country and around the world to herald the
month-long Ramadan fast, noted that fasting is a profound religious
experience that brings people closer to God. He thus enjoined Muslims
to use the season to re-evaluate their service to God and mankind.

“Let us seize this
period of Ramadan to rededicate ourselves to the service of God and
country. Beyond abstaining from food and drink, we must resolve to make
the greater sacrifice of eschewing vices that slow down the progress of
our beloved country,” he said.

President Jonathan
also asked Muslims to reflect on and strengthen their relationship with
the Almighty Allah and all men and women of goodwill the world over
during the fast.

“The great Prophet
of Islam, Muhammad (PBUH), described Ramadan fasting as a shield
against vices. Thus, we must use this year’s Ramadan as a shield from
worldly allure and sundry temptations,” he said.

Mr Jonathan also
urged all Nigerians to advance the frontiers of love and responsibility
to one another, saying “we must seek avenues to advance the cause of
peace and good neighbourliness no matter where we find ourselves”.

The President extended best wishes to all Muslims and prayed for Allah’s blessings during the month of Ramadan.

Nigerian Muslims today joined their compatriots around the world to
commence the annual month of denial and piety. Fasting is one of the
five pillars of Islam. The others are belief in the Oneness of God and
the finality of the prophethood of Muhammad; the five daily prayers;
Concern for and almsgiving to the needy; and pilgrimage to Makkah for
those who are able.

Click to Read More Latest News from Nigeria

newstoday

260 individuals, firms to be prosecuted over capital market crisis

11/08/2010 No comments

260 individuals, firms to be prosecuted over capital market crisis

he
capital market regulator, the Security and Exchange Commission, said
yesterday that about 260 persons and organizations are to face charges
over the crisis in Nigeria’s capital market, a week after the head of
the Stock Exchange, Ndidi Okereke-Onyuike, was fired.

Director General of
the SEC, Arunma Oteh, announced Tuesday while meeting with the House of
Representatives members, that the commission has names of individuals
and groups who will be brought before the Investment and Securities
Tribunal, for various financial offences.

“We have also been
working very hard on some of the complaints that ordinary investors
have shared with us as to some of the things that happen in our
market,” she told the House committee on Capital Market, headed by Umar
Jibril. “As a result of that, we are going to take about 260
individuals and entities to the Investment and Securities Tribunal for
different types of allegations of share price manipulation and insider
dealings.” The Former Director General of the Nigerian Stock Exchange,
Okereke-Onyuike and the former president of the Exchange, Aliko
Dangote, were removed from office last week by the commission, at the
climax of squabbles between the both parties. They had accused each
other of administrative and financial mismanagement.

In a major move,
the commission ordered independent investigations into the allegations,
and appointed an interim administrator for the Exchange, in a process
that has also helped emphasize its regulatory capacity, which has been
missing in years.

The House committee
summoned Mrs Oteh, Mrs Okereke-Onyuike and Mr Dangote yesterday in the
aftermath of the sackings, holding hours of meetings behind closed
doors with Ms Oteh after the others failed to appear. They are to now
appear today.

Mr Jibril said the
invitation was based on worries over media report on the removal,
saying the lawmakers needed to act to guard against unwarranted effects
of such actions on the nation’s economy.

Fragile capital market

Ms Oteh, however,
said the commission intervened to save the fragile capital market that
has already been hit by allegations of various malpractices, including
insider trading and share prices manipulation.

“Like you know, our
call and mandate is to protect public interest and to protect the
investor, particularly what I will consider the voiceless masses of
people,” she said.

She acknowledged
the widespread allegations of increasing insider dealings, share price
manipulations, of weakness in enforcement of excessive risk taking in
the market environment, saying that informed the plan to possibly bring
charges against those listed.

The irregularities,
she said, have arisen as a result of poor regulation, which also partly
was responsible for the huge crash of stock from N12 trillion to N5.5
trillion in 2008.

“We’ve seen concern as to whether regulators had really been playing
their roles. As a result, since the crash, the SEC has spoken on trying
to enhance its own capacity to regulate the market has tried to focus
on addressing the issues that led to the crash, some of which relates
to the global financial crisis, some which relates to market integrity
issues in our market,” she told the lawmakers before the closed session
meeting.</

Click to Read More Latest News from Nigeria

newstoday

Jonathan cautions lawmakers over money laundering bill

11/08/2010 No comments

Jonathan cautions lawmakers over money laundering bill

Goodluck Jonathan has cautioned the Senate over alterations to the anti-money laundering bill and anti-terror bills currently before it.The president, in a letter dated August 6, 2010, and addressed to the Senate Presi-dent, David Mark, asked the him to note that every provi-sion in “the draft bill present-ed to the National Assembly consistent and in compliance with global instruments which Nigeria has signed and rati-fied.” The Senate had, in pre-vious legislations on the draft bill, amended some sections of the draft bill, saying it was either harsh or complex.“International standards require all member-states to model their domestic legisla-tion in consonance with global best practices,” Mr Jonathan said.

“It is, therefore, impor-tant that the two bills, when passed into law, should meet basic global standards, failing which Nigeria will continue to be adjudged as a non-cooperat-ing jurisdiction.” The president also expressed concern over the failure of the National Assembly to pass both the Anti-Terrorism and Anti-Money Laundering (Amend-ment) bills despite that the deadline for the domestication of the bills has since elapsed, in June.“I wish to draw your kind attention to the fact that the commitment to FATF that the two bills would be passed into law on or before June 30, 2010, was not met.“I understand the two bills are still being worked on by relevant committees in both9Houses, which have raised certain concerns for reduced provisions of the bills, these, perhaps, may have been respon-sible for reduced momentum in the process.Too much work The president, also in his letter, asked the Senate to use the opportunity of their recon-vention on Tuesday to expedite action on the bills. “Kindly consider the quick passage of the Anti-Terrorism and the Anti-Money Launder-ing (Prohibition) Amendment bills, which were presented to the Senate of the Federal Republic in 2009, to enable Nigeria fulfil its commitment to the Financial Action Task Force (FATF) and the inter-national community,” the president said. “You may also wish to be informed that global financial watchdog is sched-uled to meet again with the Presidential inter ministerial/Agency committee in Septem-ber 2010 to review the progress made by Nigeria. It would be a huge plus for the country if the country has a positive report regarding the two pending bills,” he added.

However, the senators could not discuss the bills after endorsing the new minsters and supplementary budget for the Independent National Electoral Commission (INEC) yesterday, Tuesday.Mr Jonathan had, earlier in a letter dated April 29, 2010, to David Mark, called for an immediate consideration and passage of the anti-terrorism and anti-money laundering bills considering threats by FATF to blacklist Nigeria.

Click to Read More Latest News from Nigeria

newstoday

Jonathan to swear in last batch of ministers

11/08/2010 No comments

Jonathan to swear in last batch of ministers

The number of women in the federal cabinet will
increase by two today as Goodluck Jonathan swears in two females and a
man as the final members of the Federal Executive Council (FEC).

Salamatu Hussaini Suleiman, a lawyer from Kebbi
State; Yabawa Lawan Wabi, an accountant from Borno State and Kenneth
Gbagi, a lawyer from Delta State, are the three ministers that will
round up the cabinet. The trio were confirmed by the Senate on Tuesday
after they passed through a minor screening in a plenary at the
National Assembly. Their confirmation brought the number of current
ministers serving in the government to 42, the maximum allowable by the
constitution.

Both Mrs Suleiman and Mrs Wabi are from the All
Nigeria People’s Party. Presidential aides confirmed they will be
administered with their oaths of office during the weekly Federal
Executive Council meeting which holds on Wednesdays.

BRIEF BIOS

Mrs Suleiman

A former minister of women affairs in the Yar’Adua
administration and a law graduate of Ahmadu Bello University, she
attended the London School of Economics and Political Science where she
gained a master’s degree in law. Her first job as a lawyer was with the
Ministry of Justice in the old Sokoto State. She then worked at
Continental Merchant Bank, Lagos, for seven years and worked for a
short time at NAL Merchant Bank before moving to Aluminum Smelter
Company, where she was company secretary/legal adviser. After that, she
worked at the Securities and Exchange Commission before being appointed
minister.

Mr Gbagi

A lawyer and former chairman of the Board of the
Legal Aid Council of Nigeria (LACN), he is a former PDP gubernatorial
candidate in Delta State. He is an outspoken Urhobo leader and
businessman. He is also a founding member of the party, and was
involved in an open feud with James Ibori, the former governor of Delta
State and fugitive from the EFCC.

Mrs Wabi

A graduate of the National Institute of Policy and
Strategic Studies, she was until now a Permanent Secretary at the
Ministry for Local Government and Chieftaincy Affairs, Maiduguri, Borno
State.</

Click to Read More Latest News from Nigeria

newstoday

Government to build new power SuperGrid

11/08/2010 No comments

Government to build new power SuperGrid

Goodluck Jonathan yesterday gave the go-ahead for the
construction of a new National SuperGrid that will address most of the
country’s current power transmission problems.

He took the decision after receiving projections of
an increase of power to 6939 MW by April 2011 and 14019 MW by December
2013, submitted by the Presidential Task Force on Power.

The president’s spokesperson, Ima Niboro, said the
new 700 KV SuperGrid, which will be completed in four years at a
projected cost of $3.5billion, is expected fulfil Nigeria’s need to
transmit increasing amounts of power across vast distances which the
existing 330/132KV grid cannot meet.

“In granting approval for the SuperGrid at the weekly
meeting of the Presidential Action Committee on Power which he chairs,
Mr Jonathan directed that it should be funded as a federal asset, with
additional financing from private investors and international finance
and development agencies,” Mr Niboro said.

The SuperGrid, which will run along the same route as
the existing 330/132KV grid, will also address Nigeria’s future energy
challenges, including transition to more sustainable energy sources,
reduction of power loss per transmitted megawatt and improving power
voltage profiles across the country.

“The huge advantage of the 700 KV SuperGrid over the
existing 330/132 KV grid is that it will significantly reduce the huge
amount of power currently lost in transmission,” Mr Niboro said.

New roadmap

Mr Niboro’s statement further explained that without
the SuperGrid, the quantum of power lost in transmission will continue
to increase, as more power progressively becomes available for
evacuation from new and rehabilitated generating stations. Periodic
systemic failures will also become more frequent.

“According to current projections by the Presidential
Task Force on Power, Nigeria’s available generation capacity will rise
to 6939 MW by April next year and 14019 MW by December 2013,” he said.

In another development, Mr Jonathan will on Thursday,
August 26, 2010, present a new roadmap for the reformation of Nigeria’s
power sector to the private sector, at an event organised by the
Nigerian Economic Study Group in Lagos.

He is also expected to seize the opportunity of the event to
acquaint members of the private sector with fresh investment
opportunities inherent in the power sector reform programme and invite
greater private sector support for the programme.</

Click to Read More Latest News from Nigeria

newstoday
« Older Entries   Recent Entries »