Archive for nigeriang

CAN wants stringent punishment for kidnappers

CAN wants stringent punishment for kidnappers

Kano State Chapter
of the Christian Association of Nigeria, (CAN) has called on the
National Assembly to enact a stringent law that will impose heavy
punishment on convicted kidnappers in the country.

The state chapter
chairman, Ransom Sunday Bello, made this known while speaking to
newsmen in Kano yesterday on the increase of kidnapping and violent
crimes in the country. Mr. Bello said the association condemns in its
totality the threat and fear of people’s lives across the country. He
called on all Christians in the country, particularly those residents
in Kano to pray and fast for three days, beginning from today
(Wednesday) to Friday, in order to earnestly seek God’s intervention.
He described kidnapping as an evil act, said the Holy Bible totally
condemned it, while quoting from the Holy book…. “He who kidnaps a
man and sells him or if he is found in his arms, shall surely be put to
death.” “We urged lawmakers from the National Assembly to urgently
provide appropriate legislation, so as to nip the evil in the bud,
stressing that Nigerians now live in fear and threat to their peace,”
he said.

Kidnapping spree

The religious
leader lamented the spate of kidnapping in the country, stressing that
life is no longer sacrosanct where men, women, parents, relations and
children are now being kidnapped for ransom and this criminal act
should not be allowed to destabilize the peace in the state. He called
on the federal and state governments, as well as law enforcement
agencies to rise swiftly to this challenge by putting to an end this
evil, and also fish out the perpetrators of the crime, so that justice
can prevail.

The association also called on religious leaders in the country to
preach against this menace, as well as condemn the evil ace, so that
the public and the government can step up efforts to eradicate the
rampant cases of kidnapping. Mr. Bello therefore appealed to members of
the public with useful information on kidnappers and any other criminal
activity to furnish the police and other security agencies, so that the
state of insecurity in the country can be controlled. The association
commended the Kano State governor, Ibrahim Shekarau for his efforts in
sustaining relative peace in the state.

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Bank shareholders are not smiling yet

Bank
shareholders are not smiling
yet

Nearly a year after
the bank reforms initiated by the Central Bank, some banks shareholders
are still lamenting, saying they are yet to reap the benefits of their
investments.

The share prices of
bank stocks at the Nigerian Stock Exchange (NSE) have depreciated in
the past 10 months, leaving most investors broke.

Some investors
believe the journey ahead for the banking sector will not be any rosy,
while others are of the view that the recent progress being made on the
establishment of the Asset Management Company of Nigerian (AMCON) will
soon ease the ‘survival struggle’ in the industry.

Bola Oke, a finance
analyst at Wealth Zone Limited, an investment firm, said the current
banks performance show that they are bouncing back to profitability.
“Havoc has been done in these banks. The present bank managers are just
turnaround managers, though we hear some of them have started spending
unnecessarily.”

However, Ms. Oke
said banks’ inability to declare good dividends and bonuses is not
making investors happy. “We (shareholders) cannot be happy since our
expectations were not met, even after the bank reforms. But we just
have to give the banks some time to get their foot back on the ground,”
she said.

Looking forward

Egbo Amaechi, an
executive member of the Shareholders Association of Nigeria, said all
indicators show that the banking sector is still struggling to recover.

“So far, progress
has been made. Remember that this time last year, financial results of
banks, like Oceanic and Intercontinental, that were overdue could not
be presented at the floor of the Nigerian Stock Exchange. Today, banks
are posting results, even when they are not encouraging,” Mr. Amaechi
said.

He said the success of the Asset Management Company will further boost the future performance of the banking sector.

Insolvency

Last week, Oceanic
Bank International, one of the rescued banks re-presented its financial
results to the NSE. The bank, however, could not meet the bonus of one
for 10 earlier promised its shareholders.

Ndi
Okereke-Onyiuke, the director general of the NSE, said the bonus cannot
be paid to the investors because “the bank is technically insolvent,”
adding that “there was no money in the bank’s reserve and there was no
money in the shareholders fund.”

After recording
loss after tax of N234.692 billion for the 15 months ended 31 December,
2008, and loss after tax of N89.007 billion for the year ended 31
December 2009, Oceanic Bank, for the first quarter ended 31 March
posted a profit after tax of N1.676 billion.

More results

In a related
development, Spring Bank and Afribank also posted profits after tax in
their first quarter results, after recording huge losses in their
previous financial results.

Spring Bank audited
result for the eight months ended 31 December 2009 shows a loss after
tax of N24.164 billion, compared with N10.228 billion during the 12
months period ended April 2009. However, the bank unaudited result for
the first quarter ended 31st March 2010 shows profit after tax of
N613.41 million, compared with loss after tax of N1.754 billion in 2008.

Afribank Nigeria audited result for the nine months ended 31
December 2009 shows loss after tax of N230.140 billion, compared with
N158.473 billion during the 12 months period ended March 2009. The bank
unaudited result for the first quarter ended 31 March 2010, shows
profit after tax of N1.919 billion, compared with loss after tax of
N230.140 billion during the nine months ended December 2009.

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Soft landing for Unity, Wema Banks

Soft landing for Unity, Wema Banks

Reprieve
may have come the way of Unity Bank and Wema Bank, following the
decision of the Central Bank to extend the deadline for their
recapitalisation.

The
banking industry regulator in September 2009 gave both banks until June
30 to recapitalise. However, when it became increasingly difficult for
both banks to meet the deadline, the Central Bank extended it.

Mohammed
Abdullahi, the Central Bank head of corporate affairs, confirmed this.
“The truth of the matter is that we are extending the deadline for
them.”

But
a statement posted on the Central Bank website last night, ostensibly
after enquiries by a NEXT reporter, said that 30 September is the new
deadline for the two banks. “We wish to inform the general public that
due to unanticipated three months extension in timeline for setting up
Asset Management Corporation of Nigeria (AMCON), the Central Bank of
Nigeria has granted a three months extension for the two banks to
recapitalise.”

Banks’ strategies

Both
banks decided to adopt different strategies to meet the target date.
Wema Bank opted to raise N49 billion from both local and foreign
investors, as well as rely on the proposed Asset Management Company
(AMCON) to raise additional N10 billion. Unity Bank, on the other hand,
hopes to meet its recapitalisation target from existing shareholders
through a rights issue. The issue, which opened on 4 June was expected
to close by 13 July, well after the deadline set by the Central Bank.
The rights issue was intended to raise about N23.9 billion.

Some
stockbrokers who spoke under anonymity, said the bank may have adopted
direct marketing to execute the sale of the rights offer. According to
the managing director of one of them, “Not many of my clients have
Unity Bank shares, and so far I have not received any request to buy.
Don’t forget that the primary market is still very fragile and people
do not have confidence in banking stocks right now. So, accessing funds
from the primary market may not be easy for the bank at this time.”

He
said the bank may have done its campaign to its high networth
shareholders who may be willing to retain their stake in the bank.

Current realities

Tunde
Olofintila, head of corporate affairs, Wema Bank, said the former
deadline was no longer feasible. Mr. Olofintila said the bank had
mapped out its recapitalisation plans and was in touch with the Central
Bank on the progress made. He said Wema Bank plans to raise equity from
the Bank of Industry (BoI) and the Asset Management Corporation of
Nigeria, expected to take off in the next few weeks.

“We have laid out all these plans and we reached an agreement with the CBN. The 30 June deadline may no longer stand.”

In
addition, he said the bank is applying for a regional licence instead
of its current licence, which allows it to operate across the country.
On the implication of this, he said some of its branches will have to
go. “Yes, just a few of our branches will have to go. Maybe 16 or 17
out of 154 branches,” he said. Efforts to get official comments from
Crispin Uduobuk, head, media relations of Unity Bank, did not yield any
result as he did not pick his calls.

Both
banks were accused by the Central Bank of not meeting the N25 billion
minimum capital, which deadline ended on 31 December, 2005.

Also,
during the stress test conducted by the Central Bank last year, both
banks were found to have failed the liquidity criteria, capital
adequacy ratio, and corporate governance, and yet did not sack the
management of the two banks as it did for the other seven banks which
did not meet these criteria.

In
addition, both banks were not up to date with publishing their
quarterly and full year result, in clear violation of Central Bank
rules.

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‘Corporate bond market needs reforms’

‘Corporate bond market needs reforms’

The Central Bank said on Monday that reforms were necessary to improve the state of Nigeria’s corporate debt market.

Sanusi Lamido
Sanusi, the Central Bank Governor, said this in Switzerland yesterday,
adding that further reforms, including pensions and insurance, were
needed to enliven the corporate debt market.

“At the moment a
good corporate will be able to price its bonds at 200-300 basis points
above the risk-free (government bond),” a Reuters report quoted Mr.
Sanusi as saying. “The next challenge for us obviously is not so much
the demand side but the supply side, to ensure that the subscription is
not coming from bank liabilities but is coming from actual
institutional investors.”

Mr. Sanusi said
there has to be progress on the insurance reforms, pension reforms, and
progress on other capital market reforms to attract institutional
investors, so that it is actual real, long-term money that is going
into the subscription, and not savings and current accounts.

Reducing taxes

The government has
already agreed to waivers to reduce the taxes on interest income on
bonds, which had required corporates to issue with very high yields and
therefore limited bonds’ attractiveness.

“I think at the
moment most of the corporates are waiting for other macroeconomic
reforms,” Mr Sanusi said, explaining that it did not make sense to
raise money for a power project until the right regulatory framework
was in place. He added that bad loans are an issue, which is why “we
have got a number of distressed banks in Nigeria, while the asset
management company, which is coming into place soon, is likely to take
care of a substantial part of the bad loan problem”. The importance of
a strong and viable domestic bond market as an alternative source of
finance in emerging economies has been critically affirmed by the
global financial crisis playing a crucial role in bridging the funding
gaps that resulted from the near total freeze in global credit flows as
borrowers in less developed economies were forced to look to domestic
markets in order to meet their medium to long term capital needs.

Experts say the
development of the domestic bond market is one key ingredient required
to strengthen Nigeria’s financial system and limit its vulnerability to
external fiscal shocks in the future.

Addressing infrastructure gaps

However, the
Nigerian bond market is yet to develop an electronic trading platform
on the Nigerian Stock Exchange to facilitate bond trading in the
secondary market.

Ike Chioke,
managing director, Afrinvest, a finance research and analysis firm,
said for the Nigerian bond market to fully take its position and
attract more participants, there should be a framework for adopting
international best practice primarily in bond trading platforms and
settlements and a robust banking sector operating on sound market
principles.

“The introduction of corporate bond issuances (and sustained
liquidity) will alert many investors to the strategic advantage of
corporate bonds, and opportunities for diversification presented by the
move away from sovereign debt” he said.

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Do BP’s initials stand for Bad at Politics?

Do BP’s initials stand for Bad at Politics?

This was bound to
be a difficult time for the company long known as British Petroleum. An
explosion at an oil well near the southern U.S. coast has set-off the
worst spill in American history. Even after nearly two months it’s
still not plugged.

President Barack
Obama pumped up the pressure on BP this week. He made his fourth visit
to the disaster zone, spoke about it in the first televised address
he’s ever made from the enormously symbolic setting of the Oval Office
and summoned BP executives to meet face-to-face.

Obama has blamed
the company at every opportunity and used this week’s White House
meeting to convince it to create a 20-billion-dollar fund to cover the
environmental and economic cost.

But BP executives seem adept at making things worse on their own.

BP Chief Executive
Tony Hayward first described the spill as ‘tiny’ and then ‘very, very
modest.’ He complained that he wanted his life back, apparently
forgetting that 11 rig workers lost their lives in the explosion that
set-off the spill.

His boss hardly
helped. After the meeting with Obama this week, BP Chairman Carl-Henric
Svanberg apologized and said his company wouldn’t ignore the people
affected by the spill’s impact on fishing, tourism or way of life.

“We care about the
small people,” he said. That unfortunate turn of phrase seemed like a
patronizing description of the very people already punished by BP’s
mishap. The chairman later apologized for that too.

The politics have been bad for President Obama as well.

A USA Today/Gallup poll found that 71 percent of Americans say the president hasn’t been tough enough on BP.

His administration is being blamed for what local residents describe as a slow and disorganized response to the catastrophe.

BP and the Obama
administration have been unintentionally paired-up in an awkward
partnership. Both are suffering the effects of the spill. Neither has
been able to end it.

There is just too much oil and a lot of Bad Politics.

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Ways to a meaningful living

Ways to a meaningful living

What are our lives
about? The cycle of life is basically being born, living, then dying.
And throughout that lifelong journey we are learning.

Learning to
survive, learning to thrive, learning from our experiences and the
experiences of others, learning together in families and groups,
suffering from lack of learning, accumulating learning (knowledge),
applying or failing to apply learning, benefiting from learning,
becoming learned, and passing on learning to others with a sense of
having lived a fulfilled and meaningful life. At least that is what
many of us hope for.

The reason I like
the word ‘learning’ is that it implies there is something that we need
to learn, that we need to apply, that we need to benefit from. The
activity of learning, on its own, is insufficient without the content
of the learning; the purpose behind it and the substance of the effort.
In teaching and learning, there has been an ongoing struggle between
the substance of education (the content), and the form of education
(the systems and policies).

The substance of an
education includes learning knowledge and developing skills, and it can
be measured in academic success, the well-being of students, their
values and ethics, their employability, participation in class,
engagement with research and teachers, a sense of belonging and pride
in the alma mater, the ability to sustain relationships, the
applicability of what they have learned in everyday life, and what they
are able to achieve through the application of their minds and bodies.

Very often, this
substance is expressed in institutions of learning via various forms;
such as attendance in class, hours of teaching time, place of learning,
class size, teacher-student ratios, policies and processes,
qualifications of teachers etcetera.

In young adulthood,
sometimes we have good substance in imperfect form – the National Youth
Service Corps is a good example. I don’t think anyone debates the
tremendous value to our graduates and to national identity of the NYSC,
but because the form, the way it is managed and the risks the youth
corps members are exposed to, are unacceptable, people are agitating to
‘throw the baby out with the bath water.’ Thus, we lose all benefits
and impact of NYSC on employers, young lives and our nation – in effect
the substance of the service year – because the organization behind it
is not responding well to changing and deteriorating societal
conditions.

Electing to discard
substance, rather than to improve the form it takes, can only take us
backward; the way our infrastructure, our educational institutions and
our traditional values have gone backwards. Does anyone dispute the
life lessons inherent in many of our native traditions?

Abhorrence of some
of the practices employed to teach those lessons has led to the
traditions themselves being abandoned rather than changed. The result?
A generation growing up without imbibing the necessary values and
without home training.

Our native
intelligence is very wise. A child with good home training but without
formal education can develop the basics with just a year of adult
learning because they have received the substance of a real education
at home. The values that are embedded through our home cultures, of
respect for elders, manners, cleanliness, teamwork, caring, hard work,
and long hours should not have been jettisoned when the opportunity of
sending children to school appeared. That was an opportunity to improve
the substance of our education by adding to it. Instead, we invested in
a new form and lost the core substance that sustains us as a people.

Seek substance Is
this where we are going wrong, by confusing form and substance? Making
things look grand instead of making them work? Building a school, even
if it does not deliver an education! Opening a beautiful restaurant
with an attractive menu, when the service is bad and half the dishes
not available. The titles – Chief, Senator, and Manager – come with
responsibilities. Without the burden of accountability and the results
of their work, the titles are meaningless and empty.

Let’s stop treating
form as substance. Don’t respect anyone for having a job or position if
they are not doing the work that comes with it. The reason for the job
is the work. Without it, it is valueless and un-deserving of respect.

Let’s stop focusing
on appearances instead of on worth. Driving a big car when you do not
have money to fuel it, or wearing designer clothes when you cannot pay
school fees is capital and energy diverted from productivity and it is
a big shame. Let’s stop investing in form rather than substance. Look
for the school where your child can get the best all-round education in
academics, behaviour and attitude, rather than the latest ‘in-fashion’
school where all the ‘big’ people’s children go. Of course, if that
school is also the best, then that is a lucky coincidence.

Seek substance, demand substance, fight for substance. Form, and ‘for show’ can come afterwards.

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Boko Haram members threaten another mayhem

Boko Haram members threaten another mayhem

The Borno State
Police Command said on Monday that it had uncovered a plot by the Boko
Haram Islamic sect to cause another round of mayhem in the state.

The state’s
Commissioner of Police, Ibrahim Abdu, who disclosed this to journalists
in Maiduguri, said the attack was to commemorate the one year
anniversary of the death of the sect’s leader, Sheikh Mohammed Yusuf.

Mr. Yusuf died under controversial circumstances after he was arrested and transferred from the military to the police.

Mr. Abdu said the
threat should be of concern to law-abiding citizens of the state, as
the safety of Borno should be of priority to everybody.

He called on
traditional and religious leaders, as well as members of the public, to
assist the police with useful information on the whereabouts of the
proscribed Boko Harm members.

“We have put in
place a surveillance team, ‘Stop and Search patrol’, as well as plain
clothes policemen. Police officers have been deployed to strategic
positions in the state as part of security arrangements,” he said.

The commissioner
advised the people to go about their normal businesses, assuring them
that the police and other security agencies are in position to
guarantee their safety.

In 2009, the group unleashed mayhem in some states in northern
Nigeria that led to the death of over 700 people in clashes between
them and security forces. The group seeks the imposition of sharia law
throughout Nigeria.

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No crisis in communications commission

No crisis in communications commission

The Nigerian
Communications Commission (NCC) has denied that its accounts have been
frozen due to the change in leadership, it said in a statement
yesterday.

“While it is not
the intention of the Commission to join issues with the press, we have
the responsibility to inform the Nigerian public, that no account of
the Commission has been frozen for whatever reason.

“This embarrassing
report is a figment of the imagination of the author and should be
discountenanced by the reading public,” it said.

No crisis in NCC

Barely a week after
Bashir Gwandu was appointed as an acting executive vice-chairman for
the commission, the NCC was also forced to explain that there was no
crisis at the commission.

“We wish to also
inform the public that there is no crisis of succession in the
commission. For the avoidance of any doubt, Bashir Gwandu, the
Executive Commissioner in charge of Engineering and Standards, have
since 21 June been appointed the acting executive vice chairman of the
commission.

“This followed
government’s directive to the former acting executive vice chairman,
Stephen Bello, whose five-year tenure as an Executive Commissioner with
the Commission expires on July 5, 2010, to proceed on his formal
retirement.”

In a telephone interview, Deolu Ogunbanjo, the president of National
Association of Telecoms Subscribers (NATCOMS), said, “There is nothing
wrong with the appointment of Mr. Gwandu. I think he would be able to
perform better and he would definitely perform. I do not think that the
recent change in leadership in the commission would create a negative
reaction in the sector, as the NCC is a regulatory body and this is
only a temporary situation.”

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‘Nigeria will be investor friendly’

‘Nigeria will be investor friendly’

President Goodluck Jonathan yesterday
pledged that his administration will implement policies and programmes
that will make Nigeria an attractive destination for foreign investors.

Mr. Jonathan made the promise while speaking during separate meeting with the outgoing Ambassadors of China and the Netherlands.

He said that the federal government
will do all to attract greater foreign investment to Nigeria because it
was conscious of the fact that foreign investors will help to create
more employment opportunities for the country’s growing youth
population.

“We having a growing population of
young people and as a government we have an enormous responsibility to
plan and prepare for their future,” Mr. Jonathan said. “Greater foreign
investment will clearly help us in creating more gainful employment for
our youth and we will do all we can to promote it.”

More bilateral trade

Welcoming the increased volume of
bilateral trade between Nigeria, China, and the Netherlands, the
President said that Nigeria is now opening its doors to foreign
investors more than ever before, adding that sectors of the economy
such as aviation, power supply, and the development of infrastructure,
previously run by the government alone, are now open to private
investors from within and outside the country.

He also told the outgoing Ambassadors
that his administration is doing everything possible to deal with all
outstanding domestic issues which can discourage foreign investors,
saying that significant progress was being made in areas such as peace
in the Niger Delta and power supply.

Improving the electoral system

President Jonathan reiterated his
commitment to good governance as well as free and fair elections in
Nigeria next year, adding that steps will be taken to plug gaps in the
electoral system which made it difficult to conduct credible elections
in the past.

He thanked Arie Van Der Wiel of the
Netherlands, and Xu Jiango of China, for their efforts in the past four
years to promote trade and cooperation between Nigeria and their
respective countries, and wished them well at their new posts.

In response, Mr. Van der Wiel told the President that the volume of
annual trade between Nigeria and the Netherlands had risen from about
$2 billion when he arrived in 2006 to $4 billion currently, while Mr.
Jiango reported that the volume of annual trade between Nigeria and
China now stood at about $7 billion per annum, up from $3 billion in
2006.

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Labour chief condemns governor’s comment

Labour chief condemns governor’s comment

Bashiru Apapa, Oyo
state chairman of the Nigeria Labour Congress, has chided Governor
Adebayo Alao-Akala for reportedly saying that he would not break the
bank to pay the new teachers’ enhanced salary scale.

The labour boss
spoke with journalists in Ibadan, the state capital on Monday, in
reaction to the governor’s comment which he described as
“uncomplimentary.” Teachers in public primary and secondary schools in
the state have being at daggers drawn with the government over its
refusal to pay the new salary structure. For the last three weeks, no
effective work went on in the state’s public schools as teachers have
embarked on warning strike every Wednesday and also put on black attire
to register their displeasure over the government’s insensitivity to
their plight.

Blaming the hard
stand of the government on the poor performance of the state’s students
in graduating examinations, the teachers have threatened to embark on a
total strike if the government refuses to reconsider its stand by the
end of this week. The governor did not only deny recognising the NUT in
the state, he also said that the state’s finances would not enable
government pay the money, saying, he would not break the bank to
satisfy the teachers.

Unbecoming statement

Mr. Apapa, said the
statement was unbecoming of a state governor. “That a state governor
could make such a statement is uncalled for, unfortunate and
misguided,” he said. According to him, since the teachers are employees
of the state and are not begging for the money, they needed to be well
compensated for the services rendered to the state. “If the governor is
not breaking banks to construct road and to pay allowances, I think if
he decides to break bank to pay the salary of teachers, it is not too
much,” he said. “If he decides to do that on his own he can go ahead
and break the bank because that statement should not be attributed to a
state governor.”

He said the state government was not playing his role effectively,
adding that Oyo State is among the only four defaulting in the
implementation of the new wage structure in the country. “We are
surprise that the state government is now foot dragging. We are not
happy; we expected the state government to have complied before now,”
he said.

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