Nigeria Content Online

The Central Bank
sold a total of $1.61 billion dollars at the official bi-weekly
Wholesale Dutch Auction System (WDAS) during the month of July.

By this figure, the
CBN met 90 percent of the $1.79 billion demanded, which is 37.8 percent
lower than the $2.6 billion sold for the month of June at the auction,
out of $2.75 billion demanded by traders. This is indicative of a
decline in demand for foreign exchange, even as the Central Bank has
promised to meet legitimate demand.

Already, for
August, $1.1 billion have been sold, which represents 80.2 percent of
the $1.37 billion demanded in the auctions held so far, while there are
three more auctions before the end of the month.

The decline in
forex demand and sales comes at a time when the country is making
efforts to shore up its foreign reserves. From a record $62.24 billion
in Nigeria’s foreign reserves in mid-May 2008, it dropped to $36
billion on July 6 this year, its lowest level in over two years. The
figures climbed to $38 billion on Tuesday.

Nigeria’s foreign
reserves is capable of financing 17 months of imports, above the
internationally recommended threshold of three months.

Sale by oil majors

A financial market
analyst, who spoke off record, said the decline in forex demand does
not come as a surprise, even as he hinted that the increased sale by
foreign oil companies could account for the reduced demand at the
official window.

The Central Bank
allows banks to source for foreign exchange from other sources, which
must however, be adequately reported. He said forex demand was directly
linked to import level, which has also reduced during the period.

“The real issue is
that since the end of 2008, foreign portfolio investment and diaspora
investment have reduced in Nigeria. NNPC (Nigeria National Petroleum
Corporation) and oil majors have been selling more than usual and
people have been buying cheaper than from the Central Bank.”

He said the current forex demand was the normal cycle, adding that by the last quarter, the level would improve.

Doyin Salami, a
member of the Monetary Policy Committee of the CBN, said 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 exchange rate? That is the question
for the Central Bank to answer. Whatever happens is going to have
effect on inflation,” he said.

The naira currently
sells at N148.75 at the official window and above N150 at the interbank
market. At the beginning of July, the naira exchanged for N148.5 to the
dollar at the official window.

Reduced instability

Analysts at FSDH
Securities Limited, however, observe that market risk has reduced and
the perceived instability in the local financial system has stabilised.
In its forecast for the second half of the year, it observed that the
ability of the CBN to meet genuine foreign exchange demand in its
weekly auction sales has helped sustain the premium at low level
throughout the period.

“It is expected that the eventual implementation of the budget 2010
will provide enabling macroeconomic environment that will help Nigeria
withstand the challenges posed to it by the global economic and
financial meltdown.”

The media is a very
powerful industry and reports on any organisation go a long way in
shaping and moulding public opinion of the organisation’s corporate
image and services. This is because of the media’s role as purveyor of
information. The media sets agenda for public discourse on any issue
and as a result, media monitoring is critical and important.

The media
monitoring service, to a large extent, goes a long way in determining
the media rating of an organisation. It also helps the organisation to
analyse and evaluate its reach in terms of media projection.

A media monitoring
service provides clients with documentation, analysis, or copies of
media content of interest to the clients. Services tend to specialise
by media type, size, geography, publication, journalist, editions, or
content type. Though media monitoring is more often used for capturing
editorial content, sometimes it may also be used to capture advertising
content. Media monitoring covers all media types including print,
online, TV, and radio.

Most companies do
not attach value to media monitoring, while a handful appreciate the
laudable role of the media in setting agenda for public discourse on
their corporate activities. It has also shown from experience that some
companies do not have strategy plan until negative reports are
published on their operations. It thus become essential to monitor the
media to correct any bias or misrepresentation, as well as inaccuracies.

Beyond gauging the
media perception, the monitoring is also a vantage platform to engage
the media on a consistent basis. It is a veritable tool to maintain a
one-on-one relationship with the media and touch base with them. Media
interface is key to delivering unquantifiable results. Some corporate
affairs managers and public affairs directors do not know the address
of media houses, not to even think of meeting the media partners.

Key tasks in media monitoring

Media monitoring
involves a critical and analytical review of media reports as they
apply to the industry of operation. This helps the organisation’s
spokesperson to have a strong base to meet the individual reporter and
have an engagement session to correct inaccuracies or any form of bias.

It gives a factual
account about the perception of the services of an organisation by the
target audience. It is a feedback mechanism to gauge the perception of
the public about an organisation. Media monitoring tracks competitive
analysis and provides intelligence information about the operations of
competitors. It also involves environmental scanning to assess the
impact of the communication of competitors within the same industry,
and regular communication and consistent dialogue with journalists. A
monitoring of some key writers in the industry and a follow-up call to
them or email communication is also a good avenue to follow reporting
patterns and trend of issue analysis.

One good thing about this is that the reporter is always on his toes as he knows that he is being monitored.

Due to the quantum of work and analysis in media monitoring, an
organisation needs the services of independent monitoring firms to
execute professional work. This will enable the organisation obtain an
objective assessment of its corporate image.

South African police fired rubber bullets to disperse crowds blocking roads, and healthcare workers prevented patients from entering hospitals as a strike by more than one million civil servants grew on Thursday.
The strike for higher wages that started a day earlier has slowed the treatment of the sick and shut schools across Africa’s largest economy, worrying investors and adding pressure on the government to reach a deal.
The finance minister said he did not see a protracted strike as having a major economic impact. But analysts have said the labour action that also includes customs workers, police, and clerks, could slow commerce and trade.
Crowds in Soweto blocked a main road near a hospital running through the densely populated area, bringing traffic to a halt and preventing patients from entering.
“When they refused to move, minimum force had to be used. So rubber bullets were fired,” police spokeswoman, Nondumiso Mpantsha, said. Water cannon were also deployed and there were no major injuries, Ms. Mpantsha said.
The unions staged a one-day warning strike last week and said the action that began on Wednesday was the start of an indefinite strike aimed at grinding the government to a halt.
Analysts expect a deal to be reached in the next few days at the earliest or by the start of September at the latest, with any agreement certain to swell state spending as the government tries to bring its deficit down from 6.7 percent of gross domestic product.
“We’re not seeing the impact in day to day figures, but certainly it would have an effect on sentiment,” said Nema Ramkhelawan, a currency analyst at Rand Merchant Bank.
Money Problems
Unions are demanding an 8.6 percent pay rise, more than double the inflation rate, and 1,000 rand a month for housing.
Last week, the government offered to add to the housing allowance 700 rand from a previous offer of 630 rand, but refused to increase its wage rise offer of seven percent.
The housing allowance alone would be equal to about one percent of all budget spending and the government has said it does not have the money to pay more.
“We had to make a choice between increasing the salary bill to unaffordable levels by meeting the union demands, and cutting other urgently needed services,” the cabinet said in a statement.
Adding to the mix was a threat to expand in the coming days a strike of auto factory workers, who are seeking a 15 percent wage hike, to the car components sector. The autoworkers’ strike that began last week has slowed production in one of the country’s most important industries.
The state workers’ strike increases pressure on President Jacob Zuma’s ruling African National Congress to reach a deal with organised labour and appease the party’s longstanding union allies who also have been a reliable source of votes.
But pressure will also mount on unions as rank and file members lose pay from being off the job and some look favourably on the government’s offer.
Public opinion could turn against the unions if a prolonged work stoppage forces parents to find day care for their children, delays treatment at hospitals, and slows paperwork at government agencies.
A mid-range civil servant already makes about 40 percent more than the average worker, who earns 6,383 rand a month in salary and benefits, but bottom grade civil servants make about 40 percent less than the average.
Those feeling the pinch the greatest from the strike are the poor who are most dependent on government services.

In an effort to
fast track the implementation of Cross River State Geographic
Information System (CRGIS), the state executive council at its meeting,
approved $1.7m (about N252 million) for the services of consultants for
the project.

Bassey Oqua, the
lands and housing development commissioner, said an American firm,
International Land System Incorporated, in partnership with Teq Bridge
Nigeria Limited, was chosen as the preferred bidder for the job, after
a technical and financial review of the four companies that applied for
the job.

Mr. Oqua said that
GIS, when fully operational, will address all challenges arising from
land administration and management, pointing out that the ratification
is the component of the phase II of the implementation process, which
started with the inauguration of a steering committee headed by the
state governor, Liyel Imoke.

The committee’s
assignment is to quicken the process and thus meet contractual
agreements on delivery of certificate of occupancy in six months.

Housing too

On the expansion of
the Urban Street light project to Federal Housing Estate and State
Housing Estates and Calabar south local government area to enhance the
aesthetics and security of Calabar, the state capital, Bassey Ekefre,
the commissioner for works, disclosed that N2.7 billion has also been
approved by the council in favour of Lileker Nigeria Limited to effect
the installation, with a three and half years moratorium at N64, 000
monthly payment.

Mr. Ekefre added
that the contractor has already been mobilised to site, as work is
expected to commence soon, adding that with a new power plant at New
Secretariat to power the street lights which were hitherto fed from
Tinapa power plant, there is a guarantee of uninterrupted power supply
to the streets.

Rosemary Achonwa,
the special adviser, mortgage finance, said that the state, in its
quest to provide affordable houses to the citizenry, secured N1.5
billion from the Federal Government to boost the development
process,while Cross River State Property and Investment Ltd. (CROSPIL)
is working on a modality to disburse the fund for development.

Ms Achonwa said the
state government, in addition to the Akpabuyo Housing Estate which
physical work commences next month, has acquired 40 hectares of land at
Odukpani to further expand the development, stressing that with the
recent enactment of the Public Private Partnership (PPP) Law 2010 by
the state, government is obliged to define accurately a housing
delivery standard for Cross River citizens.

The value of
equities at the Nigerian Stock Exchange (NSE) appreciated on Thursday
by 0.11 percent, after declining by 0.23 percent the previous day.

The NSE market
capitalisation of the 199 equities closed at N6.162 trillion after
opening the day at N6.155 trillion, reflecting 0.11 percent increase or
N7 billion gains. The market had lost over N14 billion on Wednesday
after recording gains on the first two trading days of the week.

The Exchange
All-Share Index, yesterday, also went up by 0.11 percent or a gain of
27.9 units from Wednesday’s figures of 25,170.02 basis points, to close
at 25,197.92.

Emmanuel Ikazoboh,
the newly appointed interim administrator of the NSE, said the current
trading performance shows that the market is on the recovery edge.

“It appears the
market has bottomed out. It has got to its lowest probably and it has
now started rising,” Mr. Ikazoboh said last Tuesday.

However, he said
the sustainability of the market “is dependent on the economy and the
purchasing power of the market operators.”

Assessing if the
current development in the market is attractive to foreign investors,
Tinu Badmus, a finance analyst at WealthZone Company, a portfolio
management firm, said, “I think it is too early to expect foreign
investors now with the situation of things; though some of them are
still in the market.”

She said what some
foreign investors are waiting for now before taking position in the
market “is the new management coming in to fully head the Stock
Exchange and the credibility of next year’s election.”

Gainers reduce

At the close of
trading session on Thursday, the number of gainers closed lower at 33
stocks, compared with the 34 gainers recorded the previous day; while
loser closed lower at 27 stocks, as against the 30 recorded on
Wednesday.

The banking
subsector led the market transaction volume yesterday with 146.660
million units valued at N1.331 million exchanged in 3,410 deals.
Transactions in the shares of Zenith Bank, Guaranty Trust Bank, Access
Bank, and Fidelity Bank boosted the volume traded in the sector. The
total volume of 84.126 million units valued at N951.953 million traded
in the shares of the four banks accounted for 57.36 percent of the
entire sector volume.

Sectoral review

Analysts said sell
pressures still remain relatively in the banking sector as the number
of decliners stood at eight, at the close of Thursday’s trading,
compared with six recorded on Wednesday.

Transactions in the
Breweries sector ended with all the stocks’ closing at their previous
closed prices, a repeat of the Wednesday’s trend.

Some stocks that
made gainers’ chart in the building materials sector yesterday ended
with unchanged status at the close of trading session, as the sector
recorded one gainer to three unchanged, compared with three gainers to
one unchanged recorded yesterday.

Only PZ made the
gainers’ chart in the conglomerate sector, while other four stocks
traded ended at their previous closed prices compared with one gainer
to two losers recorded the previous day.

A Kaduna
Magistrate’s Court on Thursday remanded four Afribank employees in
prison for allegedly issuing a dud bank draft to Nasiru Umar Sadiq, the
chief registrar of the Kaduna High Court of Justice.

The accused are
Kalawa Sani and Folahan Remilekun, both 47 years old; Ibrahim Adamu,
44, and Fatima Yakubu, 30, all staff of Afribank of Nigeria Plc,
Mogadishu, Kaduna branch.

The police
prosecutor, David Agei, an inspector, told the court that the accused
persons had been ordered to issue a bank draft of N37,905,821 to their
bank’s leasor and complainant, Sunday Jemedate, through Mr Sadiq in his
capacity as chief registrar.

Uganda’s President
Yoweri Museveni wants the final say on all oil and gas deals as the
country prepares to launch oil production, a letter seen by Reuters
shows.

In the letter,
dated July 19, but given to Reuters on Thursday, Mr Museveni ordered
his energy minister, Hilary Onek, not to sign any oil or gas deals
without his prior written consent.

Mr Museveni said he
was changing the normal practice of a minister signing deals on behalf
of the government after advice from the attorney general, in order to
safeguard against mistakes.

He said the
discovery of oil in Uganda had created a lot of “excitement and
stampede” among some people who were scrambling for easy money from the
commodity.

Commercial
hydrocarbon deposits were discovered in Uganda’s Lake Albert Rift basin
along the border with the Democratic Republic of Congo in 2006 and
reserves are estimated at 2 billion barrels.

Shady operators
smuggled about 10,000 tonnes of cocoa out of Cameroun during the
2009/10 season, accounting for all of the No. 5 grower’s decline in
official exports, a top cocoa official said.

The Central African
state announced on Wednesday that output during the August-July season
dropped to 197,000 tonnes, below a target of exceeding last year’s
205,000 tonnes.

“Our rough estimate
is that these underground operators process about 10,000 tonnes of
cocoa beans and smuggle a similar amount to neighbouring countries,”
Apollinaire Ngwe, president of the Coffee and Cocoa Interprofessional
Board, said.

“For this reason,
the figures published today, we believe, do not reflect the real
situation of the cocoa sub-sector because of the growing number of
these unlicensed and illegal operators,” he said.

A new dimension was added to the saga of 27 months unpaid salaries for the Nigerian Telecommunications Limited (NITEL) workers.

A group of workers,
under the rather nebulous name Combative Association of NITEL/Mtel
Workers, in a letter addressed to embassies and high commissions in
Nigeria, has threatened to disrupt the 50th independence anniversary
celebrations if the federal government failed to settle the salary
arrears before then.

In the letter signed by one Teddy Umoh, the group’s national coordinator, the association said,

“We simply want to
assure you and indeed the Nigerian government that we have volunteers
across the length and breadth of this country with whom we shall
embarrass the government in such a way that no one can contemplate. We
have been pushed to the wall and we have decided to take our destiny in
our hands. We shall remain quiet while we await the approach of October
1, 2010.

“It is
inconceivable that this evil phenomenon by the name of Goodluck
Jonathan is wasting billions of naira to celebrate the country’s
independence anniversary, as well as buying presidential jets, while we
have been left to suffer this cruel fate for no just cause.”

“We are not aware”

However, the union
leaders said that their association was not aware of Mr. Umoh’s plans,
but are also working on solutions on how to handle the issue.

In a telephone
interview, Elias Kazzah, a NITEL union leader said, “I am not aware
about this plan and cannot say anything on that matter.” Also, Emmanuel
Abu, the chairman of Senior Staff Association of Communications,
Transport and Corporations (SSACTAC), NITEL, Abuja, said,

“No, we don’t have
plans towards such attack, and I don’t believe that a militant approach
would help in solving the situation at hand. We believe in solving
issues like this peacefully.

“As I speak to you, we are planning on holding a meeting tomorrow in Abuja to discuss our unpaid arrears.”

The 27 months
salary arrears have become an albatross on the federal government’s
neck, as no concrete decision has been reached on how to settle them.

In June 2009, the
federal government revoked NITEL sale to Transcorp for failure to
fulfil the terms of the sale after three years and then decided to
privatise NITEL for the fifth time.

The workers were
owed 13 months arrears as at June 2009, which cumulatively is now 27
months, with only one month salary paid to the workers last December.

Then, the federal
government promised to pay the workers five months salary in three
tranches before the end of January 2010. A sum of N3 billion was meant
to be borrowed from the accounts of NITEL Pension Fund in liquidation,
but that also failed because the liquidator decided in February to stop
all payment because of alleged harassment by some NITEL workers.

Sule Shehu, NITEL spokesperson, could not say exactly when the arrears will be paid, claiming to be “on leave.”